TECOM Group P.J.S.C., a leading developer of sector-focused business districts in Dubai, recently reported a record net profit of AED 1.1 billion for FY 2023, a significant 49% increase from the previous year. This growth was driven by strong performance across all its business sectors, with revenue growing by 10% year-on-year (YoY) to reach AED 2.2 billion. EBITDA increased by 23% YoY to AED 1.7 billion, and the company's real estate investment portfolio saw a 7.7% YoY increase, reaching AED 22.9 billion. Despite these impressive figures, a closer examination of the company's financials and the broader market suggest a less rosy outlook. The company's 3-month yield stands at a meagre 0.05%, and the 1-month yield is even more concerning, showing a negative return of -0.02%. While the company's market cap is substantial at 13.65 billion, these yield figures suggest potential stagnation or even decline in the company's value in the near term. Furthermore, the company's proposal to pay a dividend of AED 400 million in April 2024, while seemingly generous, may strain the company's cash reserves, potentially affecting its ability to invest in growth and weather market volatility. Considering the above, investors should approach TECOM Group with caution. While the company's recent performance is undoubtedly impressive, the low yields and potential strain on cash reserves suggest that the company's future may not be as bright as the recent results suggest.