CDI FY2021 Results Announcement

**DIRECTORS’ REVIEW**

--Financial Performance
The Board of CDL Investments New Zealand Limited (“CDI”) is pleased to report that the company recorded a profit after tax of $31.3 million in 2021 (2020: $30.1 million). The result reflects another very positive year of sales despite the ongoing pandemic and reinforces the continued strong demand for high quality subdivisions.

CDI’s 2021 profit before tax was $43.4 million (2020: $41.8 million). Property sales & other income totaled
$92.1 million (2020: $88.8 million).

At 31 December 2021, CDI’s shareholders’ funds increased to $286.4 million (2020: $257.1 million) and total assets also increased to $297.6 million (2020: $265.0 million). Net tangible assets per share (at book value) also increased to 99.6 cents (2020: 91.7 cents).

As at 31 December 2021, the independent market value of CDI’s property holdings was $359.7 million (2020: $292.8 million) which reflects the acquisitions made in 2021. At cost, the portfolio was valued at $290.1 million (2020:$164.8 million) in line with CDI’s accounting policies.


--Development Portfolio
2021 was a busy and exciting year across CDI’s developments.

In 2021, CDI acquired a total of 69.25 hectares of land in the Hawkes Bay region. Following on from our December 2021 update, the application for stage 1 resource consent will be submitted to Council in March 2022. Obtaining resource consent will allow stage 1 development works to proceed and we are targeting completion of those works by March 2023.

We were pleased to have sold all of our available sections at Dominion Road (Papakura, South Auckland) and are encouraged by the continued demand for sections at our Kewa Road subdivision (North Shore, Auckland) after completion and titling of the final stage. Our residential development in Swanson, West Auckland is nearly complete and ready for sale, and has already attracted much interest from potential buyers. These sections will be sold during the course of 2022.

Also as stated in our December 2021 update, additional stages will be constructed at Prestons Park (Christchurch) to meet increased demand and these will be sold over the course of 2022 and 2023. We look forward to the completion and tenanting of the commercial area in Q1 2022 which will add another income stream for CDI. Prestons Park is and will continue to be a strategically important development for the company and for Christchurch as a whole.

Additional acquisitions are likely in 2022 to ensure that the company has sufficient development stock in areas where we forecast demand to remain high and which can be developed and sold over the short to medium term.

In addition, the company has commenced construction of the first of two warehouses at its commercially- zoned site in Wiri, South Auckland. This is a very positive step for CDI’s diversification strategy with completion of the first warehouse/office scheduled in May 2022, and the second warehouse scheduled to be completed in August 2022. Both warehouses are fully leased.

Post balance date, the sale of land at Jerry Green Street, Wiri which we announced in April 2021, settled in January 2022.

CDI did not apply for assistance from the government Wage Subsidy programme during 2021.


--Dividend Announcement
The Board has resolved to maintain its fully imputed ordinary dividend at 3.5 cents per share payable on 13 May 2022. The Board believes the amount is fair and reasonable given the profit achieved and ensures that CDI has sufficient cash resources to continue its development work and seek additional acquisitions without taking on debt.

The record date will be 29 April 2022. The Dividend Reinvestment Plan will apply to this dividend.




--Summary and Outlook
The Board is pleased with the overall performance and results from 2021. These have also laid the groundwork for additional stages for sale in the coming twelve months and beyond.

While 2021 was not as disruptive as 2020, the lockdowns, especially in Auckland caused some delays as consultants and work teams were not able to effectively complete work on sites. Fortunately, time has either been made up or the effects of the delays did not negatively affect development progress to a material extent.

Over the next two to three years, CDI is in a solid position to balance its returns from its commercial land holdings and its future residential property development sites. Management will be looking to extract maximum gains from each and will look at the best possible options including leveraging or sale, if warranted, so as to ensure it is in a position to acquire new land when the right opportunities emerge.

This year will also see the conclusion of our Managing Director BK Chiu’s time with the company. On behalf of the Board, I would like to take this opportunity to thank BK for his leadership of CDI over the course of sixteen-plus years. CDI has come a very long way since he assumed his role and both the Board and Management are grateful for his stewardship of the company and the results he has helped to achieve.


Colin Sim
Chairman
18 February 2022


**MEDIA RELEASE**

CONSISTENCY THE KEY TO CDL INVESTMENTS NEW ZEALAND’S 2021 PROFIT RESULTS

NZX-listed residential property developer CDL Investments New Zealand Limited (NZX: CDI) today reported its results for the year ended 31 December 2021.

“We are pleased to provide our shareholders with another profitable result which demonstrates consistency of sales and strategy”, said CDI’s Managing Director Mr. BK Chiu.

“While it might not seem that way to many businesses in other sectors, 2021 was actually quite a positive year for us. Most of the areas where we have development land were not badly affected by lockdowns or other such restrictions and as such we were able to get on with developing further sections and literally preparing the ground work for future years. We also acquired over 69 hectares of land last year”, he said.

“Sales in Auckland at Kewa Road (North Shore), Dominion Road (Papakura) and Prestons Park (Canterbury) underpinned our performance last year. Both regions will remain strong for the foreseeable future”, said Mr. Chiu.

“As we said in our December update to the market, we have made good progress on our Auckland warehousing projects and commercial areas in Christchurch. While commercial development is not our core business, we will look to leverage other similar opportunities around our portfolio if these add value to our existing and future developments and do not create financial burdens for us”.

CDI’s Board resolved to maintain its dividend at 3.5 cents per share fully imputed which would be paid to shareholders on 13 May 2022. The Record Date would be 29 April 2022 and the Dividend Reinvestment Plan would apply.

Speaking to the outlook for 2022, Mr. Chiu said that CDI was positioning itself for future growth.

“As a small developer, we need to be absolutely focused on delivering consistent product to our purchasers and results to our shareholders. We have more sections coming on stream in Auckland very soon and we are pushing ahead with our Havelock North developments to meet housing demand which is needed now. From where we stand, we expect 2022 to be another positive year for us and we will be doing what we can to put ourselves in the best position to maximise our sales revenue and our returns”, he said.

Summary of results:

-- Profit after tax $31.3 million (2020: $30.1 million)
--Profit before tax $43.4 million (2020: $41.8 million)
--Property sales & other income $92.1 million (2020: $88.8 million)
--Shareholders’ funds $286.4 million (2020: $257.1 million)
--Total assets $297.6 million (2020: $265.0 million)
--Net tangible asset value (at book value) 99.6 cents per share (2020: 91.7cps)
--Earnings per share 10.96 cents per share (2020: 10.75cps)


About CDL Investments New Zealand Limited:
CDL Investments New Zealand Limited (NZX:CDI) has a proud track record of acquiring and developing residential sections in New Zealand for over two decades. With a focus on creating and developing a range of high-quality residential sections to New Zealanders, CDI has successfully completed numerous subdivision projects in Auckland, Hamilton, Tauranga, Hastings, Havelock North, Taupo, Nelson, Christchurch, Rolleston (Canterbury) and Queenstown. CDI is a majority-owned subsidiary of NZX-listed Millennium & Copthorne Hotels New Zealand Limited.

ENDS

Issued by CDL Investments New Zealand Limited

Enquiries to:
B K Chiu, Managing Director
(09) 353 5058

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Announcement PDF