TECOM GROUP PJSC — Interim / Quarterly Report 2025

Oct 30, 2025

TECOM GROUP PJSC AND ITS SUBSIDIARIES

Condensed interim consolidated financial statements

For the nine-month period ended 30 September 2025

Condensed interim consolidated financial statements For the nine-month period ended 30 September 2025

Contents	Pages
Independent auditor's review report on condensed interim consolidated financial statements	1
Condensed interim consolidated statement of financial position	2 - 3
Condensed interim consolidated statement of income	4
Condensed interim consolidated statement of comprehensive income	5
Condensed interim consolidated statement of changes in equity	6
Condensed interim consolidated statement of cash flows	7
Notes to the condensed interim consolidated financial statements	8 - 32

		30 September	31 December
		2025	2024
	Note	AED'000	AED'000
		(Reviewed)	(Audited)
ASSETS
Non-current assets
Property and equipment	5	87,055	90,893
Intangible assets		16,276	16,688
Investment property	6	14,233,360	13,819,597
Derivative financial instruments	7	80,042	165,440
Other receivables	8	9,407	11,347
Unbilled receivables	9	917,402	821,126
Deferred tax assets	7	12,838	4,922
		15,356,380	14,930,013
Current assets
Other receivables	8	175,055	106,814
Trade and unbilled receivables	9	205,816	181,757
Due from related parties	10	41,371	54,990
Cash and bank balances	11	545,469	1,017,039
		967,711	1,360,600
Total assets		16,324,091	16,290,613

Condensed interim consolidated statement of financial position

	Condensed interim consolidated statement of financial posit
(confinmod)

		30 September	31 December
		2025	2024
	Note	AED'000	AED'000
		(Reviewed)	(Audited)
EQUITY AND LIABILITIES EQUITY
Share capital	12
Statutory reserve	13	500,000 482,696	500,000
Hedge reserve		89,189	482,696 169,231
Retained earnings		5,866,429	5,555,767
Total equity		6,938,314	6,707,694
LIABILITIES
Non-current liabilities
Trade and other payables	18	2,048	2,728
Borrowings	14	5,221,287	5,213,253
Advances from customers	15	568,450	606,757
Project liabilities	16	719,350	786,913
Due to related parties	10	49,778	92,766
Derivative financial instruments	7	3,691	1,131
Employees' end-of-service benefits		47,602	46,733
Provision for other liabilities and charges	17	757,403	902,807
		7,369,609	7,653,088
Current liabilities
Trade and other payables	18	279,056	330,330
Advances from customers	15	1,037,851	969,223
Current tax liabilities	23	33,432	38,222
Project liabilities	16	447,922	473,596
Due to related parties	10	140,014	90,604
Provisions for other liabilities and charges	17	77,893	27,856
		2,016,168	1,929,831
Total liabilities		9,385,777	9,582,919
Total equity and liabilities		16,324,091	16,290,613

		Nine-month period		Three-month period
		ended 30 September		ended 30 September
		2025	2024	2025	2024
	Note	AED'000	AED'000	AED'000	AED'000
		(Reviewed)	(Reviewed)	(Reviewed)	(Reviewed)
Revenue	20	2,113,340	1,758,664	724,177	610,905
Direct costs		(711,791)	(608,565)	(261,361)	(232,185)
Gross profit		1,401,549	1,150,099	462,816	378,720
Other operating income	21	73,689	112,563	34,319	76,295
		1,475,238	1,262,662	497,135	455,015
Expenses
General and administrative	22	(133,337)	(151,505)	(48,612)	(55,666)
Marketing and selling		(32,932)	(28,632)	(8,880)	(8,698)
Other operating		-	(3,685)	-	-
		(166,269)	(183,822)	(57,492)	(64,364)
Operating profit		1,308,969	1,078,840	439,643	390,651
Finance income		27,626	54,554	8,046	16,314
Finance costs		(192,501)	(159,853)	(63,462)	(54,062)
Finance costs - net		(164,875)	(105,299)	(55,416)	(37,748)
Profit before tax for the period		1,144,094	973,541	384,227	352,903
Income tax expense	23	(33,432)	(30,862)	(10,989)	(13,268)
Profit for the period		1,110,662	942,679	373,238	339,635
Earnings per share attributable
to the owners of the company
Basic and diluted (AED)	24	0.22	0.19	0.07	0.07

Condensed interim consolidated statement of income

		Nine-month period		Three-month period
		ended 30 September		ended 30 September
		2025	2024	2025	2024
	Note	AED'000	AED'000	AED'000	AED'000
		(Reviewed)	(Reviewed)	(Reviewed)	(Reviewed)
Profit for the period		1,110,662	942,679	373,238	339,635
Other comprehensive income
Items that may be subsequently
reclassified to profit or loss
Fair value loss on cash
flow hedges, net of tax	7	(80,042)	(80,121)	(17,976)	(82,640)
Other comprehensive income
for the period, net of tax		(80,042)	(80,121)	(17,976)	(82,640)
Total comprehensive income
for the period		1,030,620	862,558	355,262	256,995

Condensed interim consolidated statement of comprehensive income

Condensed interim consolidated statement of changes in equity

				Attributable to owners of the Company
	Note	Share capital	Statutory reserve	Hedge reserve	Retained earnings	Total equity
		AED'000	AED'000	AED'000	AED'000	AED'000
At 1 January 2024 (Audited)		500,000	458,410	218,995	5,151,602	6,329,007
Profit for the period		-	-	-	942,679	942,679
Other comprehensive income for the period		-	-	(80,121)	-	(80,121)
Total comprehensive income for the period		-	-	(80,121)	942,679	862,558
Transactions with owners:
Dividends declared	19	-	-	-	(800,000)	(800,000)
At 30 September 2024 (Reviewed)		500,000	458,410	138,874	5,294,281	6,391,565
At 1 January 2025 (Audited)		500,000	482,696	169,231	5,555,767	6,707,694
Profit for the period		-	-	-	1,110,662	1,110,662
Other comprehensive income for the period		-	-	(80,042)	-	(80,042)
Total comprehensive income for the period		-	-	(80,042)	1,110,662	1,030,620
Transactions with owners:
Dividends declared	19	-	-	-	(800,000)	(800,000)
At 30 September 2025 (Reviewed)		500,000	482,696	89,189	5,866,429	6,938,314

		Nine-month period ended 30 September
		2025	2024
	Note	AED'000	AED'000
		(Reviewed)	(Reviewed)
Cash flows from operating activities
Cash generated from operations	25	1,573,379	1,326,417
Payment of income tax	23	(38,222)	-
Payment of employees' end of service benefits		(2,127)	(968)
Net cash generated from operating activities		1,533,030	1,325,449
Cash flows from investing activities
Purchase of property and equipment	5	(8,125)	(4,778)
Payments for investment property, net of
advances to contractors and project liabilities		(1,058,405)	(1,141,228)
Purchase of intangible assets		(6,752)	(4,784)
Movement in fixed deposits with maturities
greater than three months	11	161,200	312,900
Interest received		29,466	64,464
Net cash used in investing activities		(882,616)	(773,426)
Cash flows from financing activities
Proceeds from borrowings		-	250,000
Interest paid		(160,784)	(127,371)
Payment for dividends	19	(800,000)	(800,000)
Net cash used in financing activities		(960,784)	(677,371)
Net decrease in cash and cash equivalents		(310,370)	(125,348)
Cash and cash equivalents, beginning of the period		638,361	669,882
Cash and cash equivalents, end of the period		327,991	544,534
Significant non-cash transactions:
Additions to investment property arising from
lease terminations		-	65,670

Condensed interim consolidated statement of cash flows

1 Legal status and activities

TECOM Group PJSC (the "Company") is a public joint stock with trade license number 577858 issued by the Department of Economy and Tourism in Dubai.

The Company was initially established as a limited liability company on 14 February 2006. The legal status of the Company was converted to a public joint stock company on 30 June 2022 by virtue of Company's shareholders resolution. On 5 July 2022, the Company listed its 12.5% ordinary shares on the Dubai Financial Market ("DFM" or the "Exchange") through an Initial Public Offering ("IPO").

The Company is domiciled in the United Arab Emirates (UAE) and its registered head office address is Commercial Building No. 1, Dubai Studio City, Dubai, P.O. Box 73000, Dubai, United Arab Emirates.

The principal activities of the Group are property leasing, development, facilities management and services.

The parent company is DHAM LLC (the "Parent Company"), which is a fully owned subsidiary of Dubai Holding Commercial Operations Group LLC (the "Intermediate Parent Company"). The Intermediate Parent Company is a fully owned subsidiary of Dubai Holding LLC (the "Ultimate Parent Company"). The "Ultimate Shareholder" of the Company was His Highness Sheikh Mohammed Bin Rashid Al Maktoum till 8 January 2023. On 8 January 2023, the Ultimate Shareholder and Ruler of Dubai issued Law No. 1 of 2023, transferring his direct ownership in the Ultimate Parent Company to the Government of Dubai. The Company and its subsidiaries are collectively referred to as the Group (the "Group").

		Ownership %
Name of the entity Nature of business		30 September 2025	31 December 2024
TECOM Investments FZ-LLC	Develop and lease properties	100	100
Dubai Industrial City LLC	Develop and lease properties	100	100
Dubai Design District FZ-LLC	Develop and lease properties	100	100
	Project management engineering and
Tamdeen LLC	feasibility studies	100	100
Dubai Design District	Develop and lease properties and real
Hospitality FZ-LLC	estate services	100	100
AXS FZ-LLC	Incorporation and visa related services	100	100
DMC Butterfly Building FZ-LLC Real estate services		100	100
Innovation Hub FZ-LLC	Real estate services	100	100
	Regional headquarters for real estate
IN5 FZ-LLC	services	100	100
DIC 1 FZ-LLC	Develop properties and real estate services	100	100
DIC 2 FZ-LLC	Develop properties and real estate services	100	100
DKV 1 FZ-LLC	Develop properties and real estate services	100	100
Innovation Hub Phase 1 FZ-LLCReal estate services		100	100
	Regional headquarters for real estate
Dquarters FZ-LLC	services	100	100

The Group consolidates investments in the following principal subsidiaries:

1 Legal status and activities (continued)

The Group only operates in the UAE and has no subsidiaries in foreign jurisdictions.

The Group has not purchased or invested in any shares for the nine-month period ended 30 September 2025.

2 Material accounting policy information

2.1 Statement of compliance

The condensed interim consolidated financial statements of the Group have been prepared in accordance with the requirements of International Accounting Standard 34 'Interim Financial Reporting' ("IAS 34") and comply with the applicable requirements of the laws in the UAE.

No income of a seasonal nature was recorded in the condensed interim consolidated financial statements for the nine-month period ended 30 September 2025. In addition, the results for the nine-month period ended 30 September 2025 are not necessarily indicative of the results that may be expected for the financial year ending 31 December 2025.

These condensed interim consolidated financial statements do not include all the information and disclosures required in the annual consolidated financial statements and should be read in conjunction with the Group's consolidated financial statements for the year ended 31 December 2024.

2.2 Basis of preparation

The condensed interim consolidated financial statements are presented in United Arab Emirates Dirham (AED) which is the Company's functional currency and the Group's presentation currency. All amounts have been rounded to the nearest AED thousands ('000s), unless stated otherwise.

The condensed interim consolidated financial statements have been prepared on the historical cost basis, except for the revaluation of financial instruments that are measured at fair values at the end of each reporting period. Historical cost is generally based on the fair value of the consideration given/received in exchange for goods and services.

The preparation of condensed interim consolidated financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the condensed interim consolidated financial statements are disclosed in Note 4.

2 Material accounting policy information (continued)

2.2 Basis of preparation (continued)

As at 30 September 2025, the Group's current liabilities exceeded its current assets. A significant portion of these current liabilities comprises non-financial liabilities, including operating lease advances and contract advances. Excluding these, the Group's current assets exceed current liabilities.

Certain comparative amounts have been reclassified in the notes to the condensed interim consolidated financial statements for the nine-month period ended 30 September 2025 to conform to the presentation used in these condensed interim consolidated financial statements.

The same accounting policies and methods of computation, as well as assumptions, are followed in these condensed interim consolidated financial statements as compared to the most recent annual consolidated financial statements, except for the new policies, standards, and amendments adopted during the current period as outlined in note 2.3 of the condensed interim consolidated financial statements.

2.3 Application of new and revised IFRS Accounting Standards

(a) New and revised IFRS Accounting Standards applied with no material effect on the condensed interim consolidated financial statements

The following revised IFRS Accounting Standards, which became effective for annual periods beginning on or after 1 January 2025, has been adopted in these condensed interim consolidated financial statements. Its adoption has not had any material impact on the disclosures or on the amounts reported in these condensed interim consolidated financial statements.

• Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates relating to Lack of Exchangeability.

Other than the above, there are no other significant IFRS Accounting Standards and amendments that were effective for the first time for the financial year beginning on or after 1 January 2025.

• 2 Material accounting policy information (continued)
• 2.3 Application of new and revised IFRS Accounting Standards (continued)
• (b) New and revised IFRS Accounting Standards in issue but not yet effective

At the date of authorisation of these condensed interim consolidated financial statements, the Group has not applied the following new and revised IFRS Accounting Standards that have been issued but are not yet effective:

	Effective for annual
	periods beginning
New and revised IFRS Accounting Standards	on or after
Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial
Instruments: Disclosures regarding the classification and
measurement of financial instruments	1 January 2026
Annual improvements to IFRS - Volume 11	1 January 2026
IFRS 18 Presentation and Disclosures in Financial Statements	1 January 2027
IFRS 19 Subsidiaries without Public Accountability: Disclosures	1 January 2027

Management anticipates that these new standards, interpretations and amendments will be adopted in the Group's condensed interim consolidated financial statements as and when they are applicable and adoption of these new standards, interpretations and amendments except for IFRS 18 will have no material impact on the condensed interim consolidated financial statements of Group in the period of initial application.

3 Financial risk management

3.1 Financial risk factors

The Group's operations and borrowings potentially expose it to a variety of financial risks: market risk (including fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk.

The Group manages its cash flow interest rate risk by using floating-to-fixed interest rate swaps. Such interest rate swaps have the economic effect of converting borrowings from floating to fixed rates.

The condensed interim consolidated financial statements do not include all financial risk management information and disclosures required in the annual consolidated financial statements.

3 Financial risk management (continued)

3.2 Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the availability of funding through an adequate amount of committed credit facilities. Due to the dynamic nature of the underlying businesses, the Group aims to maintain flexibility in funding by keeping committed credit lines available. Management reviews cash flows at regular intervals.

3.3 Fair value estimation

The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows:

• Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1).
• Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2).
• Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3).

The following table presents the Group's assets and liabilities that are measured at fair value at 30 September 2025:

	Level 2 AED'000
	(Reviewed)
Assets Derivatives designated as cash flow hedges	80,042
Liabilities Derivatives designated as cash flow hedges	3,691

The following table presents the Group's assets and liabilities that are measured at fair value at 31 December 2024:

	Level 2 AED'000 (Audited)
Assets Derivatives designated as cash flow hedges	165,440
Liabilities Derivatives designated as cash flow hedges	1,131

4 Critical accounting estimates and judgements

The preparation of these condensed interim consolidated financial statements, requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected.

The significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty remain consistent with those disclosed in the consolidated financial statements for the year ended 31 December 2024, except for the reassessment of provisions related to infrastructure costs.

Change in accounting estimate

During the nine-month period ended 30 September 2025, the Group performed a reassessment of its infrastructure cost estimates. This reassessment resulted in an increase in the carrying amount of investment property and the related provision for infrastructure costs by AED 68,000 thousand (Note 17).

The revision was primarily driven by updated assumptions regarding the historical cost of construction. An increase in the cost of constructing comparable infrastructure assets in recent periods was a key factor for the revised estimates.

5 Property and equipment

			Building
			interior
			improvements,
			furniture	Computer			Capital work
	Note	Buildings AED'000	and fixtures AED'000	hardware AED'000	Motor vehicles AED'000	Other assets AED'000	in progress AED'000	Total AED'000
Cost
At 1 January 2024 (Audited)		137,840	128,315	46,181	1,364	19,077	154	332,931
Additions		-	4,425	534	-	1,364	-	6,323
Transfers from/(to) investment property	6	-	395	-	-	-	(154)	241
Disposals		-	-	(20)	-	-	-	(20)
Reclassifications		(2,783)	2,783	-	-	-	-	-
Write-off		-	-	-	-	(1,167)	-	(1,167)
At 31 December 2024 (Audited)		135,057	135,918	46,695	1,364	19,274	-	338,308
Additions		-	7,076	570	479	-	-	8,125
Disposals		-	-	-	(948)	(426)	-	(1,374)
Transfers to investment property	6	-	(32,759)	(30)	-	(3,011)	-	(35,800)
At 30 September 2025 (Reviewed)		135,057	110,235	47,235	895	15,837	-	309,259
Accumulated depreciation
At 1 January 2024 (Audited)		55,611	123,195	44,775	986	14,905	-	239,472
Depreciation charge for the year		3,496	2,056	865	378	2,153	-	8,948
Transfers from investment property	6	-	182	-	-	-	-	182
Disposals		-	-	(20)	-	-	-	(20)
Write-off		-	-	-	-	(1,167)	-	(1,167)
At 31 December 2024 (Audited)		59,107	125,433	45,620	1,364	15,891	-	247,415
Depreciation charge for the period		2,025	2,121	551	48	525	-	5,270
Disposals		-	-	-	(948)	(426)	-	(1,374)
Transfers to investment property	6	-	(28,048)	-	-	(1,059)	-	(29,107)
At 30 September 2025 (Reviewed)		61,132	99,506	46,171	464	14,931	-	222,204
Net book value at 30 September 2025 (Reviewed)		73,925	10,729	1,064	431	906	-	87,055
Net book value at 31 December 2024 (Audited)		75,950	10,485	1,075	-	3,383	-	90,893

The depreciation charge for the nine-month period ended 30 September 2025 is recognised under general and administrative expenses amounting to AED 5,270 thousand (for the nine-month period ended 30 September 2024: AED 7,001 thousand).

6 Investment property

			Buildings and		Right of use -	Capital work in
	Notes	Land	improvements	Infrastructure	land	progress	Total
		AED'000	AED'000	AED'000	AED'000	AED'000	AED'000
Cost
At 1 January 2024 (Audited)		3,687,468	10,521,991	3,244,663	-	3,599,897	21,054,019
Additions		414,162	1,353,806	-	-	619,901	2,387,869
Transfers to related parties	10	-	-	-	-	(23,335)	(23,335)
Transfers (to)/from property and equipment	5	-	(395)	-	-	154	(241)
Transfers within other captions of investment property		-	60,188	54,718	-	(114,906)	-
At 31 December 2024 (Audited)		4,101,630	11,935,590	3,299,381	-	4,081,711	23,418,312
Additions		413,416	132,979	-	-	210,018	756,413
Transfers from property and equipment	5	-	32,789	-	3,011	-	35,800
Transfers within other captions of investment property		-	420,589	6,974	-	(427,563)	-
At 30 September 2025 (Reviewed)		4,515,046	12,521,947	3,306,355	3,011	3,864,166	24,210,525
Accumulated depreciation and impairment
At 1 January 2024 (Audited)		1,946,344	4,614,437	1,102,968	-	1,525,728	9,189,477
Depreciation charge for the year		-	357,229	52,191	-	-	409,420
Transfers to property and equipment	5	-	(182)	-	-	-	(182)
At 31 December 2024 (Audited)		1,946,344	4,971,484	1,155,159	-	1,525,728	9,598,715
Depreciation charge for the period		-	310,436	38,656	251	-	349,343
Transfers from property and equipment	5	-	28,048	-	1,059	-	29,107
At 30 September 2025 (Reviewed)		1,946,344	5,309,968	1,193,815	1,310	1,525,728	9,977,165
Net book value at 30 September 2025 (Reviewed)		2,568,702	7,211,979	2,112,540	1,701	2,338,438	14,233,360
Net book value at 31 December 2024 (Audited)		2,155,286	6,964,106	2,144,222	-	2,555,983	13,819,597

The capital work-in-progress includes land, buildings and infrastructure under construction.

During the nine-month period ended 30 September 2025, the Group acquired investment property from fellow subsidiaries for a total consideration of AED 410,920 thousand (for the nine-month period ended 30 September 2024: AED 957,012 thousand), recorded in accordance with the Group's accounting policy (Note 10).

The depreciation charge for the nine-month period ended 30 September 2025 is recognised under direct costs amounting to AED 349,343 thousand (for the nine-month period ended 30 September 2024: AED 300,942 thousand).

As at 30 September 2025, the estimated fair value of the Group's investment property is AED 28,287,780 thousand (31 December 2024: AED 27,874,364 thousand).

No impairment indicators were observed for any classes of investment property during the nine-month period ended 30 September 2025.

6 Investment property (continued)

The following amounts have been recognised in the condensed interim consolidated statement of income in respect of investment property:

	Nine-month period ended 30	September
	2025 AED'000	2024 AED'000
	(Reviewed)	(Reviewed)
Operating lease income (Note 20) Direct costs (including depreciation) arising from investment property that generated operating	1,837,203	1,555,107
lease income	625,430	537,114

7 Derivative financial instruments

	Notional
	amount	Asset	Liabilities
	AED'000	AED'000	AED'000
At 30 September 2025 (Reviewed)
Designated as cash flow hedges
Interest rate swap contracts	3,077,213	80,042	3,691
At 31 December 2024 (Audited)
Designated as cash flow hedges
Interest rate swap contracts	3,531,268	165,440	1,131

At 30 September 2025, the fixed interest rates vary from 1.52% to 4.37% per annum (31 December 2024: 1.52% to 4.37% per annum). The floating rates are linked to Emirates Interbank Offered Rate ("EIBOR").

Changes in the fair market values of interest rate swaps that are considered effective and designated as cash flow hedges are recognised in the hedge reserve in other comprehensive income. Amounts are reclassified to profit or loss when the associated hedged transaction affects profit or loss. There was no significant ineffectiveness arising from cash flow hedges; any amounts were immaterial. The change in fair values of interest rate swaps designated as cash flow hedges for the nine-month period ended 30 September 2025 amounted to a loss of AED 87,958 thousand (for the nine-month period ended 30 September 2024: AED 88,045 thousand). The related tax on the loss for the period is AED 7,916 thousand (for the nine-month period ended 30 September 2024: AED 7,924 thousand), which has been set off against the fair value loss disclosed in the other comprehensive income.

As at 30 September 2025, derivative financial instruments include interest rate swaps entered into with a related party financial institution, with a fair value of AED 29,537 thousand (31 December 2024: AED 64,689 thousand).

8 Other receivables

	30 September	31 December
	2025	2024
	AED'000	AED'000
	(Reviewed)	(Audited)
Advances to contractors and suppliers	133,988	53,035
Prepayments	26,566	36,711
Finance lease receivables	13,529	15,468
Other receivables	10,379	12,947
	184,462	118,161
Less: non-current	(9,407)	(11,347)
Current	175,055	106,814

9 Trade and unbilled receivables

	30 September	31 December
	2025	2024
	AED'000	AED'000
	(Reviewed)	(Audited)
Trade receivables	150,101	172,516
Less: loss allowance	(69,269)	(77,939)
Trade receivables (Current)	80,832	94,577
Unbilled receivables - operating leases	1,094,630	963,331
Less: loss allowance	(52,244)	(55,025)
	1,042,386	908,306
Less: non-current	(917,402)	(821,126)
Current	124,984	87,180
Trade and unbilled receivables
Current	205,816	181,757
Non-current	917,402	821,126
	1,123,218	1,002,883

The fair values of trade and unbilled receivables approximate their carrying amounts.

Unbilled receivables arise on revenue recognition based on straight lining which is mainly driven by rent free periods and rent escalation as per the contracts.

9 Trade and unbilled receivables (continued)

The Group has a broad base of customers with no concentration of credit risk within trade receivables at 30 September 2025 and 31 December 2024. The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivable.

The provision against not past due receivables reflects the expected credit loss for specific customers identified as having increased credit risk, where collection is considered doubtful, based on forward-looking information and in accordance with the Group's expected credit loss policy. The creation and release of the loss allowance on receivables have been included in the condensed interim consolidated statement of income under general and administrative expenses. Amounts charged to the allowance account are generally written off when there is no expectation of recovering additional cash. The majority of the Group's trade and unbilled receivables are denominated in AED.

10 Balances and transactions with related parties

Related parties comprise ultimate parent company, intermediate parent company, parent company and key management personnel and businesses which are controlled directly by the major shareholders or key management personnel. Related parties also include entities over which the ultimate parent company has control or significant influence. The terms of the related party transactions are approved by the management.

	30 September	31 December
	2025	2024
	AED'000	AED'000
	(Reviewed)	(Audited)
Parent Company	1,423	1,413
Other subsidiaries of the Parent Company	24,946	26,370
Other related parties	15,002	27,207
	41,371	54,990

(a) Due from related parties

The fair values of due from related parties approximate their carrying amounts and are fully performing at 30 September 2025 and 31 December 2024.

Due from and due to related party balances are offset and the net amount is reported in the condensed interim consolidated statement of financial position when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or realise the due from and due to balances simultaneously.

10 Balances and transactions with related parties (continued)

(b) Due to related parties

	30 September	31 December
	2025	2024
	AED'000	AED'000
	(Reviewed)	(Audited)
Ultimate Parent Company	12,189	16,042
Other subsidiaries of the Parent Company	125,262	130,381
Other related parties	52,341	36,947
	189,792	183,370
Less: non-current	(49,778)	(92,766)
Current	140,014	90,604

The payables to related parties primarily arise from services rendered by those parties in the normal course of business. These balances are non-interest bearing and are settled under standard commercial terms.

As at 30 September 2025, the amount due to related parties includes AED 97,319 thousand (31 December 2024: AED 113,141 thousand), which pertains to obligations arising from the acquisition of investment property from fellow subsidiaries (Note 6). Of this amount, AED 49,778 thousand (31 December 2024: AED 92,766 thousand) is classified as a non-current liability, representing the net present value of obligations with a repayment term of three years. This classification reflects the long-term nature of the liability, consistent with the terms of the underlying agreements, as repayment extends beyond one year.

(c) The Group enters into transactions with entities related to the government other than those already disclosed in these condensed interim consolidated financial statements. These transactions primarily comprise utility supply, regulatory services, and banking activities, as well as arrangements relating to the Group's share of infrastructure and roadwork costs benefiting its developments.

10 Balances and transactions with related parties (continued)

(d) Related party transactions

Details of other significant transactions with related parties in the normal course of the business are as follows:

	Nine-month period ended
	30 September
	2025	2024
	AED'000	AED'000
	(Reviewed)	(Reviewed)
Transactions between related parties:
Dividends declared to Parent Company	700,000	700,000
Acquisition of investment property from fellow
subsidiaries	410,921	957,012
Transfer of investment property to fellow
subsidiaries (Note 6)	-	23,335
Services provided to related parties included in revenue:
Operating lease income from fellow subsidiaries and
others	36,413	34,081
Services income from fellow subsidiaries and others	3,919	5,383
Services provided by related parties included in expenses:
Direct costs - operation and maintenance costs
- Fellow subsidiaries	11,139	9,694
- Entities under common control	97,535	84,008
- Other related parties	49,201	46,239
General and administrative expenses - cost recharged
- Ultimate Parent Company	753	318
- Fellow subsidiaries	39,143	35,172
- Other related parties	2,189	1,306
Transactions with related party financial institution
Finance income	6,042	18,871
Finance costs and other bank charges	63,540	52,429

10 Balances and transactions with related parties (continued)

(e) Remuneration of key management personnel

The compensation to key management personnel of the Group is shown below:

	Nine-month period ended
	30	September
	2025	2024
	AED'000	AED'000
	(Reviewed)	(Reviewed)
Salaries and other short-term employee benefits	16,820	16,679
End of service, termination and other
post-employment benefits	772	837
Board of Directors' remuneration	4,390	6,240
	21,982	23,756

(f) During the period, the Group entered into a land acquisition agreement with a related party for a total consideration of AED 1,556,799 thousand. The first instalment of AED 410,921 thousand was paid and recorded as additions to investment property (Note 6). The remaining commitment of AED 1,145,878 thousand is disclosed under capital commitments (Note 26.a), and a related bank guarantee of AED 1,167,600 thousand has been issued in connection with this transaction (Note 26.d).

11 Cash and bank balances

	30 September	31 December
	2025	2024
	AED'000	AED'000
	(Reviewed)	(Audited)
Cash on hand	565	594
Cash at banks
- Current account	227,426	437,767
- Fixed deposits	317,478	578,678
	545,469	1,017,039

11 Cash and bank balances (continued)

Cash and cash equivalents include the following for the purposes of the condensed interim consolidated statement of cash flows:

	30 September	31 December
	2025	2024
	AED'000	AED'000
	(Reviewed)	(Audited)
Cash and bank balances	545,469	1,017,039
Fixed deposits with maturities greater
than three months	(217,478)	(378,678)
	327,991	638,361

Bank accounts are held with locally incorporated banks. Fixed deposits carry interest in the range of 3.85% to 4.50% (31 December 2024: 3.85% to 5.05%) per annum.

As at 30 September 2025, cash and bank balances include AED 111,834 thousand (31 December 2024: AED 222,192 thousand) held with a related party financial institution.

12 Share capital

The total authorised and issued share capital of the Company comprises 5,000,000,000 shares (31 December 2024: 5,000,000,000 shares) of AED 0.10 each. All shares were fully paid-up.

13 Statutory reserve

In accordance with UAE Federal Decree Law No. (32) of 2021 and Articles of Association, 10% of the annual profit of the public joint stock company and 5% of the annual profit of each UAE limited liability company are required to be transferred to a statutory reserve, which is not distributable. Transfers to this reserve shall continue until such time as it equals at least 50% of the paid-up share capital of the respective companies. No transfers have been made during the nine-month period ended 30 September 2025, as such transfers are effected at year-end upon determination of the annual profits, in line with the aforementioned requirements.

14 Borrowings

	30 September	31 December
	2025	2024
	AED'000	AED'000
	(Reviewed)	(Audited)
Bank borrowings	5,250,000	5,250,000
Unamortised transaction costs	(28,713)	(36,747)
Carrying amount	5,221,287	5,213,253
Less: non-current	(5,221,287)	(5,213,253)
Current	-	-

The purpose of the loan facility is to repay existing facilities and for general corporate purposes of the Group. The facility is repayable in a single bullet payment in 2028.

As at 30 September 2025, the Group has undrawn floating rate borrowing amounting to AED 2,350,000 thousand from the above facility (31 December 2024: AED 2,350,000 thousand).

The Group has sufficient headroom to enable it to conform to covenants on its existing borrowings and sufficient working capital and undrawn financing facilities to service its operating activities and ongoing investments as at 30 September 2025 and 31 December 2024.

Below are major financial covenants as required by the terms of the facility:

• (i) Leverage for each period not to exceed certain ratios as specified in the facility agreement.
• (ii) Debt Service Cover Ratio not to be less than 1.20:1.
• (iii) Minimum Net Worth in respect of any relevant period not to be less than AED 3,673,000 thousand (or its equivalent in any other currency).

The Group has complied with all covenants in line with the borrowing facility agreements at each reporting period. The Group has not had any defaults of principal, interest or redemption amounts during the periods on its borrowed funds.

The Group's borrowings are denominated in AED and bear interest at a fixed margin of 1% plus the prevailing three-month EIBOR, with the floating component subject to repricing every three months from the reporting date. Interest rates on these borrowings ranged from 4.98% to 5.38% per annum (31 December 2024: ranged from 5.38% to 6.35% per annum).

As at 30 September 2025, borrowings include AED 2,100,000 thousand (31 December 2024: AED 2,100,000 thousand) obtained from a related party financial institution.

15 Advances from customers

	30 September	31 December
	2025	2024
	AED'000	AED'000
	(Reviewed)	(Audited)
Operating lease advances	1,293,740	1,269,066
Refundable deposits	265,909	262,760
Contract advances	46,652	44,154
	1,606,301	1,575,980
Less: non-current	(568,450)	(606,757)
Current	1,037,851	969,223

Operating lease advances and contract advances represents amounts collected from customers in advance which are subsequently released to the condensed interim consolidated statement of income once the revenue recognition criteria are met.

16 Project liabilities

	30 September	31 December
	2025	2024
	AED'000	AED'000
	(Reviewed)	(Audited)
Project payables	1,040,940	1,133,821
Retentions payable	126,332	126,688
	1,167,272	1,260,509
Less: non-current	(719,350)	(786,913)
Current	447,922	473,596

Project payables include amounts contracted with a government authority to cover the Group's share of costs for roadworks serving the Group's developments. The present value of these payables is AED 814,741 thousand (31 December 2024: AED 876,502 thousand). These costs are settled through agreed annual fixed installments of AED 102,723 thousand and are recognised at the present value of the expected cash outflows, discounted at a rate of 6.49% (31 December 2024: 6.49%).

During the period, the Group made payments amounting to AED 78,206 thousand (ninemonth period ended 30 September 2024: AED 23,100 thousand) to a government-related entity towards the construction of substations serving the Group's developments.

17 Provisions for other liabilities and charges

	30 September	31 December
	2025	2024
	AED'000	AED'000
	(Reviewed)	(Audited)
Provision for infrastructure cost	807,440	902,807
Provision for terminations and legal claims	27,856	27,856
	835,296	930,663
Less: non-current	(757,403)	(902,807)
Current	77,893	27,856

During the period, the provision for infrastructure costs decreased due to actual work performed, partially offset by a change in estimate of AED 68,000 thousand related to the substation construction (Note 4).

18 Trade and other payables

	30 September	31 December
	2025	2024
	AED'000	AED'000
	(Reviewed)	(Audited)
Trade payables	90,295	89,494
Accrued expenses	156,745	216,218
Other payables	34,064	27,346
	281,104	333,058
Less: non-current	(2,048)	(2,728)
Current	279,056	330,330

19 Dividends

At the Annual General Meeting held on 4 March 2024, shareholders approved the distribution of final cash dividends of AED 400,000 thousand (AED 0.08 per share).

On 1 August 2024, the Board of Directors approved the distribution of interim cash dividends of AED 400,000 thousand (AED 0.08 per share).

At the Annual General Meeting held on 10 March 2025, shareholders approved the distribution of dividends amounting to AED 400,000 thousand (AED 0.08 per share).

On 31 July 2025, the Board of Directors approved the distribution of interim cash dividends of AED 400,000 thousand (AED 0.08 per share).

20 Revenue

	Nine-month period			Three-month period
	ended 30	September	ended 30 September
	2025	2024	2025	2024
	AED'000	AED'000	AED'000	AED'000
	(Reviewed)	(Reviewed)	(Reviewed)	(Reviewed)
Operating lease income (Note 6)	1,837,203	1,555,107	628,940	537,570
Service income	276,137	203,557	95,237	73,335
	2,113,340	1,758,664	724,177	610,905

The payments for service income are received in advance and have no significant financing component.

The aggregate amount of sale price allocated to performance obligations that are unsatisfied or partially satisfied as at 30 September 2025 amounted to AED 46,652 thousand (31 December 2024: AED 44,154 thousand; 1 January 2024: 42,144 thousand). The Group expects to recognise revenue from these unsatisfied performance obligations over a period of 2 years.

Nine-month period ended 30 September Three-month period ended 30 September 2025 2024 2025 2024 AED'000 AED'000 AED'000 AED'000 (Reviewed) (Reviewed)(Reviewed) (Reviewed) Cost recovery 27,369 21,572 10,474 8,350 Liabilities written back 30,182 12,569 19,416 980 Lease termination and other penalties 13,210 76,850 3,754 65,973 Others 2,928 1,572 675 992 73,689 112,563 34,319 76,295

21 Other operating income

	Nine-month period		Three-month period
	ended 30	September	ended 30 September
	2025	2024	2025	2024
	AED'000	AED'000	AED'000	AED'000
	(Reviewed)	(Reviewed)	(Reviewed)	(Reviewed)
Payroll and related costs	64,248	57,492	21,210	21,771
Management fees and consultancy	32,320	33,595	11,621	11,927
Information technology charges	13,879	12,235	4,603	4,505
Depreciation and amortisation	12,434	15,483	4,237	4,079
Administration fees	6,326	3,945	2,425	1,401
Professional memberships	5,561	8,028	3,045	3,085
Communication	3,323	3,242	1,063	927
(Reversal of)/provisions for loss
allowance on receivables - net	(11,451)	3,602	(2,681)	2,120
Others	6,697	13,883	3,089	5,851
	133,337	151,505	48,612	55,666

22 General and administrative expenses

23 Current income tax

On 9 December 2022, the United Arab Emirates (UAE) Ministry of Finance issued Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses ("Corporate Tax Law"), introducing a federal corporate tax regime effective for accounting periods beginning on or after 1 June 2023.

The Group's first tax period was from 1 January 2024 to 31 December 2024. The taxable income of the entities that are in scope for UAE Corporate Tax Law purposes is subject to corporate tax at the rate of 9% for mainland entities and, where conditions are met, 0% for freezone entities.

During the nine-month period ended 30 September 2025, the Group filed its corporate tax return for the year ended 31 December 2024 and paid corporate tax of AED 38,222 thousand to the Federal Tax Authority.

The tax charge for the nine-month period ended 30 September 2025 is AED 33,432 thousand (nine-month period ended 30 September 2024: AED 30,862 thousand), representing an Effective Tax Rate (ETR) of 2.92% (nine-month period ended 30 September 2024: 3.17%). The deviation from the UAE statutory tax rate of 9% is primarily driven by subsidiaries operating in free zones that are subject to 0% corporate tax.

Deferred tax assets continue to be recognised for temporary differences in accordance with IAS 12.

24 Earnings per share

Basic earnings per share amounts are calculated by dividing profit for the period attributable to ordinary equity holders of the Company by the weighted average number of ordinary shares outstanding during the period.

As there are no dilutive instruments outstanding, basic and diluted earnings per share are identical. The calculation of basic and diluted earnings per share attributable to the owners of the Company is based on the following data:

	Nine-month period ended 30 September			Three-month period
				ended 30 September
	2025	2024	2025	2024
	(Reviewed)	(Reviewed)	(Reviewed)	(Reviewed)
Earnings
Earnings for the purpose of basic and diluted earnings per share (profit for the period attributable to owners of the Company) rounded to the nearest AED'000	1,110,662	942,679	373,238	339,635
Weighted average number of shares
Weighted average number of ordinary shares for the purpose of
basic and diluted earnings per share	5,000,000,000	5,000,000,000 5,000,000,000		5,000,000,000
Basic and diluted earnings per share attributable to Owners of
the Company rounded to the nearest Fil	0.22	0.19	0.07	0.07

25. Cash generated from operations

	Nine-month period ended 30 September
	2025	2024
	AED'000	AED'000
	(Reviewed)	(Reviewed)
Profit for the period	1,110,662	942,679
Adjustments for:
Depreciation and amortisation	361,777	316,425
Reversal of/provisions for loss allowance on
receivables - net	(11,451)	3,602
Provisions for end of service benefits and other
liabilities	2,996	7,007
Lease terminations	-	(65,670)
Liabilities written back	(30,182)	(12,569)
Finance income	(27,626)	(54,554)
Finance costs	192,501	159,853
Income tax expense	33,432	30,862
	1,632,109	1,327,635
Changes in operating assets and liabilities:
Trade, unbilled, and other receivables, before provision and write-offs, and excluding advances
to contractors	(105,154)	(116,900)
Trade and other payables and advances from
customers, excluding project liabilities	10,561	109,498
Due from related parties	13,619	(1,511)
Due to related parties	22,244	7,695
Cash generated from operations	1,573,379	1,326,417

26 Commitments

(a) Capital commitments

	30 September	31 December
	2025	2024
	AED'000	AED'000
	(Reviewed)	(Audited)
Investment properties Property and equipment	2,472,087 4,609	496,655 9,804
Intangible assets	6,586	10,332

26 Commitments (continued)

(b) Operating lease arrangements - the Group as lessor

Operating non-cancellable leases relate to the investment property owned by the Group with lease terms of between 1 to 5 years for building leases and between 20 to 50 years for land leases.

Future minimum rentals receivable under non-cancellable operating leases are as follows:

	30 September	31 December
	2025	2024
	AED'000	AED'000
	(Reviewed)	(Audited)
Later than 5 years	14,140,003	13,953,659
Later than 1 year and not later than 5 years	3,094,394	2,727,581
Not later than 1 year	909,301	762,767
	18,143,698	17,444,007

(c) Operating lease arrangements - the Group as lessee

	30 September	31 December
	2025	2024
	AED'000	AED'000
	(Reviewed)	(Audited)
Later than 1 year and not later than 5 years	2,261	3,043
Not later than 1 year	1,165	1,265
	3,426	4,308

(d) Contingencies

30 September	31 December
2025	2024
AED'000	AED'000
(Reviewed)	(Audited)
	358,222
	43,164
	1,300,448 250

• (i) This represents bank guarantees provided to a related party for investment property acquired on deferred payment plan.
• (ii) This pertains to letters of credit issued for construction of certain infrastructure costs of the Group.

27 Segment reporting

Information regarding the Group's reportable segments is set out below in accordance with IFRS 8 Operating Segments. IFRS 8 requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the Group's Chief Executive Officer, as the chief operating decision maker, in order to allocate resources to the segment and to assess its performance. Information reported to the Group's Chief Executive Officer for the purpose of resource allocation and assessment of segment performance focuses on the financial performance of each business segment only. No information that includes the segments' assets and liabilities is reported to the Group's Chief Executive Officer.

The Group is organised into four reportable segments: (i) commercial leasing, (ii) industrial leasing, (iii) land leasing and (iv) services and others. The following describes the types of properties, products or services that fall within each of our financial segments:

• Commercial leasing consists of built to lease and built to suit properties. Built to lease properties are our commercial properties which are typically developed for multiple tenants and are leased out to customers, and include office, retail space and business centres (built to lease). Built to suit properties typically represent our commercial properties where we were able to identify customers in advance of developing the property in order to build a single-tenant customised property that meet a customer's specifications, which are then leased out to them upon completion or similar properties (built to suit).
• Industrial leasing consists of warehouses and staff accommodation (housing for businesses to accommodate their workers).
• Land leasing consists of land leases. Our land leases represent land available within our business districts that already has or is expected to develop the necessary infrastructure (such as connecting roads, water, electricity and sewage) that allows us to lease the land. We have intentionally retained such land in order to be able to lease it to customers to suit their specific needs, such as manufacturing, commercial, retail, residential or academic purposes.
• Services consist of fees from the services that we provide, including those generated from our AXS platform, venue management services, property management and leasing agreements and our in5 platform.
• Other segments include businesses that individually do not meet the criteria of a reportable segment. These segments include operations and support functions.

The Group operates primarily in United Arab Emirates and accordingly no further geographical analysis of revenue and profit are given. Segment revenue reported represents revenue generated from customers and there were no intersegment sales.

The accounting policies of the reportable segments are the same as the Group's accounting policies. Segment results represent the profit earned by each segment before interest, depreciation and amortisation. This is the measure reported to the Group's Chief Executive Officer for the purpose of resource allocation and assessment of segment performance.

27 Segment reporting (continued)

Information regarding these segments are as follows:

	Commercial leasing AED'000	Land leasing AED'000	Industrial leasing AED'000	Services and others AED'000	Total AED'000
30 September 2025 (Reviewed)
Revenue	1,069,736	446,070	321,397	276,137	2,113,340
Direct costs	(192,346)	(11,723)	(72,018)	(48,347)	(324,434)
Other operating income	31,951	13,609	59	28,070	73,689
Other expenses	(108,014)	(18,287)	(19,435)	(46,113)	(191,849)
Segment results before interest and depreciation
and amortisation	801,327	429,669	230,003	209,747	1,670,746
Depreciation and amortisation	(248,781)	(19,253)	(73,249)	(20,494)	(361,777)
Income tax expense	(16,441)	(12,930)	(3,773)	(288)	(33,432)
	536,105	397,486	152,981	188,965	1,275,537
Unallocated net finance cost					(164,875)
Profit for the period					1,110,662
30 September 2024 (Reviewed)
Revenue	902,229	394,818	258,060	203,557	1,758,664
Direct costs	(165,706)	(10,587)	(59,879)	(34,559)	(270,731)
Other operating income	11,381	76,011	-	25,171	112,563
Other expenses	(121,172)	(25,136)	(21,463)	(37,460)	(205,231)
Segment results before interest and depreciation and amortisation	626,732	435,106	176,718	156,709	1,395,265
Depreciation and amortisation	(221,205)	(18,925)	(72,582)	(3,713)	(316,425)
Income tax expense	(11,711)	(12,314)	(6,389)	(448)	(30,862)
	393,816	403,867	97,747	152,548	1,047,978
Unallocated net finance cost					(105,299)
Profit for the period					942,679

Net finance costs are not allocated to operating segments and are therefore presented as unallocated in the segment disclosures.

No single customer contributed 10% or more to the Group's revenue.