HRH Prince Alwaleed bin Talal bin Abdulaziz Alsaud, Chairman of Kingdom Holding Company (KHC) announced the Company’s financial results of operations for the third quarter and the nine months ended September 30, 2008.
The consolidated net income for nine months totaled SR 1,065 million and resulted in an increase of 11.6% when compared to the same period in 2007. The consolidated net income for the third quarter of 2008 of SR 226.5 million reflect a minor increase of 0.2% with compared to the results for the third quarter of 2007.
The decline in the distribution of foreign dividends was offset by the increase in dividends domestically. The hotel operations, for both the Company’s owned and managed hotel properties, showed a minor decline in operating results due to the slowdown in global tourism and hotel occupancy.
The Company recorded a decline in its portfolio carrying value due to the continuing uncertainty in the world financial markets. During the quarter, the Company continued to pursue the development of its two real estate projects in Jeddah and Riyadh, with the recent inauguration of the two colossal projects of Kingdom City in Jeddah and Kingdom Tower in Jeddah at the “Towards the First World” architectural exhibition that was held in Jeddah, under the auspices of the Custodian of the Two Holy Mosques, King Abdullah on Saturday 11th October 2008.
The Company successfully concluded a financing arrangement and is in the process of negotiating other facilities to take advantage of several opportunities that are available to it.
Shadi Sanbar, KHC’s CFO and a member of its Investment Committee, believes that despite the reduction in the Company’s Net Asset Value, and the shortage of liquidity from the banking sectors both internationally and domestically, the Company’s financing remains adequate to support its activites.
Mr. Talal AlMaiman, Executive Director of Development and Domestic Investment and a member of the investment committee is very encouraged by the prospects of the two huge real estate development projects in Jeddah and Riyadh and others. He pointed out that the Saudi economy is very strong and the growth in population and demand on real estate will remain strong, he also added though Saudi Arabia is not isolated from the rest of world. Yet the real estate market in Saudi Arabia is far away from any subprime issues and expects that with the implementation of the new prudent mortgage law the demand will even be far higher than what it is now.
HRH Prince Alwaleed, the Chairman was pleased with the third quarter results, which showed an increase of almost 12% over last year. The Chairman added, “We are pleased with Kingdom Holding’s results & with our grand real estate projects in Saudi Arabia that reaffirms our place as one of the world’s leading real estate developers. Although the financial world has been undergoing extraordinary and unprecedented times in the past 100 years, the strength of Kingdom Holding and its executive team remains sharply focused on identifying opportunities that will maximize shareholder value, both in terms of current returns and long term value.”
Kingdom Holding Company (KHC) Chaired by HRH Prince Alwaleed bin Talal bin Abdulaziz Alsaud, is a publically traded company which was listed on Tadawul (the Saudi Stock Exchange) in 2007. KHC is one of the world’s most successful and diversified business organizations, highly respected in the field of investments and recognized as an elite player in the Arabian Gulf region and internationally. KHC was founded in 1980 where initially the Company focused on construction activities, housing development and educational projects. Today, KHC’s portfolio has its main interest in landmark hotel properties and hotel management companies, real estate development, financial services, technology and media.
Landmark hotel properties include the George V in Paris, Des Bergues in Geneva, the newly renovated Fairmont Plaza in New York City and the Savoy (under renovation) in London, in addition to the Fairmont in San Francisco, Four Seasons in Toronto and Raffles in Singapore. Other hotels are owned though its majority-owned Dubai listed subsidiary, Kingdom Hotel Investments.
Hotel Management Companies include the following world-renowned brands: Four Seasons Hotels & Resorts, Fairmont Raffles Hotels (which include Fairmont, Raffles and Swissotel) and Mövenpick Hotels & Resorts.
KHC has two significant real estate developments, one in Jeddah aggregating 5 million sqm and the other in North of Riyadh aggregating 15 million sqm.
KHC also has stakes in other Saudi publicly traded companies in the various sectors which include banking through Samba, food via Savola, industrial through Tasnee and media and publishing via Saudi Research and Marketing Group. Other KHC domestic investments include retail, healthcare and aviation through the National Air Services Company Limited (NAS).
Moreover, the company`s international investment portfolio contains many blue-chip companies including Citigroup, News Corporation, Time Warner, Songbird Estates (Canary Wharf, London), Apple Inc, Motorola, Walt Disney Co and Eastman Kodak. In addition to its public company activities, KHC is also extremely active in the area of private equity in Saudi Arabia and developing markets within the Middle East, Africa and Asia.