CDI: 2016 Results Announcement

CDI releases its audited financial statements for the year ended 31 December 2016 together with its Directors' Review and Press Release, the text of which follows below: *** DIRECTORS' REVIEW Financial Performance CDL Investments New Zealand Limited ("CDLI") is pleased to report a profit after tax of $27.0 million for the year ended 31 December 2016, an increase of 54.7% from the previous year (2015: $17.5 million). This result is the seventh consecutive year of profit growth for the company. Profit before tax also increased to $37.5 million (2015: $24.2 million). Property sales & other income totalled $74.5 million (2015: $47.6 million). Shareholders' funds as at 31 December 2016 increased to $161.8 million (2015: $140.3 million) and the Company's total assets stood at $168.3 million (2015: $142.7 million). The net tangible asset per share (at book value) was 58.4 cents (2015: 50.8 cents). Dividend Announcement Reflecting the record result, the Company has resolved to increase its fully imputed ordinary dividend to 3.0 cents per share (2015: 2.2 cents per share) payable on 19 May 2017. The record date will be 5 May 2017. The Dividend Reinvestment Plan will apply to this dividend. Land portfolio At 31 December 2016, the independent market value of CDLI's land holdings was $297.0 million (2015: $265.0 million). CDLI's accounting policies require the company to carry the value of its land portfolio at the lower of cost or net realisable value and at 31 December 2016, the land portfolio at cost was $117.8 million (2015:$126.6 million). Summary and Outlook The Board is conscious that in 2017 the Company needs to maintain its sales activity but also ensure that the Company continues to grow by acquiring additional land for development in the future. That said, land prices, especially in the major metropolitan areas and surrounds remain at historically high levels. When assessing acquisitions, we will remain disciplined in land investment fundamentals. Our strong balance sheet gives us an added advantage when seeking and assessing these opportunities. In the meantime, we will continue to drive sales activity at our existing subdivisions with the aim of delivering another year of growth in 2017. Management and staff The Board and I sincerely thank the Company's management and staff for their hard work during 2016 to deliver this outstanding result. Wong Hong Ren Chairman 17 February 2017 ***MEDIA RELEASE*** 55% PROFIT GROWTH FOR CDL INVESTMENTS NEW ZEALAND Property development company CDL Investments New Zealand Limited (NZX: CDI) today reported its results for the year ended 31 December 2016. CDI increased its profit after tax by 54.7% to $27.0 million with property sales & other income increasing by 56.5% to $74.5 million over 2015. "We are very pleased to report a seventh consecutive year of increased profit performance" said managing director Mr. B K Chiu. "In 2016 our sales activity continued to be strong as was our subdivision development for the 2017 and 2018 pipeline of sections." CDI's Board resolved to increase its dividend to 3.0 cents per share (from 2.2 cents in 2015) fully imputed which would be released to shareholders on 19 May 2017. The Record Date would be 5 May 2017 and the Dividend Reinvestment Plan would apply to this dividend. Mr. Chiu said that in 2017 CDI would be looking to increase its sales activity and ensure that the Company continued to grow by acquiring additional land for development in the future. "Our recent land purchase in Westgate/Whenuapai West Auckland looks promising under the Auckland Unitary Plan. We remain mindful and disciplined with regard to the fundamentals of land investment and its development in an environment of high land price expectations. In the meantime, the land development work established through 2015 and 2016, and moving into 2017 will better enable us to deliver profitable growth in 2017 from our existing subdivisions at Greville Road (Auckland), Magellan Heights (Hamilton), and Prestons Park (Christchurch)", he said. Summary of results: o Profit after tax $27.0 million (2015: $17.5 million) o Profit before tax $37.5 million (2015: $24.2 million) o Total revenue & other income $74.5 million (2015: $47.6 million) o Shareholders' funds $161.8 million (2015: $140.3 million) o Total assets $168.3 million (2015: $142.7 million) o Net tangible asset value (at book value) 58.4 cents per share (2015: 50.8cps) o Earnings per share 9.77 cents per share (2015: 6.33cps) About CDL Investments New Zealand Limited: CDL Investments New Zealand Limited (CDI) has a proud track record of acquiring and developing residential sections in New Zealand for two decades. With a focus on creating and developing a range of high-quality residential sections to New Zealanders, CDI has over the past twenty years 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 End CA:00296963 For:CDI Type:FLLYR Time:2017-02-17 14:06:53