Kingdom Holding posts 11.6% increase in Q4 profit

Kingdom Holding Company, an investment firm controlled by Saudi Arabia's Prince Alwaleed bin Talal, said fourth quarter profit increased 11.6 percent as it recorded a rise in income from its real estate investments and a decline in finance charges.

Fourth quarter net income increased to SAR209.6m (US$55.8m) compared to SAR187.8m in the same period in 2011, the Riyadh-based company said in a regulatory statement to the Saudi bourse.

The company said full-year 2012 profit increased 10.6 percent to SAR707.1m from SAR639.6m for the same period in 2011, due to an increase in income from real estate investments, including the sale of certain hotels, and a rise in dividends income and decrease in general and administrative expenses.

Earnings per share for the 12-month period amounted to SAR0.19 compared to SR0.17 for the same period in 2011.

Earlier this month, the company sold a 1m sqm plot of land just outside Riyadh for US$80m, recording a US$49m profit.

Kingdom Holding owns stakes in a wide range of global companies including News Corporation, Citigroup, the third largest US bank, blogging site Twitter, Four Seasons Hotels, Disneyland Paris, Apple and fully owns the George V Hotel in Paris and the Savoy Hotel in London.

The company is also backing development of the Kingdom City project in Jeddah, which will include Kingdom Tower, the tallest building in the world when complete.

Kingdom Holding ended 2012 with a share price of SAR20.90, the stock’s highest level since December 2007.