CDI: 2018 Interim Results Announcement

CDL INVESTMENTS REPORTS STRONG HALF YEAR RESULT Property development and investment company CDL Investments New Zealand Limited (NZX:CDI) today released its (unaudited) results for the six months to 30 June 2018 and announced an operating profit of $25.47 million (2017: $20.39 million) on revenue of $60.23 million (2017: $51.04 million). "We are happy to report another half year where we have been able to grow our sales and profitability", said CDI's Managing Director Mr. BK Chiu. CDI had, he said, settled acquisitions for over 100 hectares of land. "This secures our development future for the medium term. We continue to evaluate other opportunities and are optimistic that we will be able to add to our portfolio later in the year" he said. Mr. Chiu also noted that CDI's sales for the period had come from its projects in Auckland, Hamilton, and Christchurch. "CDI's diversified portfolio across growth centres helps manage our business performance in more challenging times" he added. CDI also announced that it was looking at developing commercial premises for lease on its land. "These will be small scale developments that are compatible with the residential areas and local community", said Mr. Chiu. "We have seen demand for child care centres and medical centres around our subdivisions and we are looking at concept drawings now and talking to interested parties about tenancies for 2020". Mr. Chiu was optimistic that CDI would better its 2017 results at this stage. "Although we are seeing some softening in forward demand, sales continue to be steady. We are therefore optimistic that we will better our 2017 results at this stage", he said. ENDS Issued by CDL Investments New Zealand Limited Any inquiries please contact: B K Chiu Managing Director CDL Investments New Zealand Ltd (09) 353 5077 *_*_*_*_*_*_*_*_*_*_*_*_*_* CHAIRMAN'S REVIEW Financial Performance: The Directors of CDL Investments New Zealand Limited ("CDI") advise that the Company has made an unaudited operating profit after tax of $25.47 million for the six month period ending 30 June 2018 (2017: $20.39 million). Operating profit before tax was $35.38 million (2017: $28.32 million). Property sales and other income for the period was $60.23 million (2017: $51.04 million). Net Asset Backing (at cost) for the period under review was 72.8 cents per share (2017: 62.8 cents per share). Portfolio update: As advised at the annual meeting of shareholders, CDI has settled agreements for over 100 hectares of land in Hamilton and Christchurch to further its development projects in the medium term. CDI recorded strong sales from Hamilton, Canterbury and Auckland notably at the Magellan Heights, Prestons Park and Greville Road subdivisions respectively. Further stages will be progressively developed to meet demand. As part of the Prestons Park project, CDI is also looking at developing small scale commercial tenancies for lease on its land to enhance the amenity value of its holdings as well as produce a new income stream for CDI. Management is working with designers and agents to secure potential tenants with a view to commencing leases in 2020. Commentary and Outlook: The Board is pleased with the level of sales activity to date and also pleased to secure land to ensure its development future in the medium term. Diversification into commercial tenancies will also provide the company with new possibilities for development in the future. The Board has noted that forward demand for sections in certain areas is softening but will not affect CDI's 2018 performance or results. With steady demand for high quality residential sections still apparent, we believe that we will better our 2017 year end results at this stage. Colin Sim Chairman 2 August 2018 End CA:00321580 For:CDI Type:HALFYR Time:2018-08-02 08:30:36