CDI: 2018 Full Year Results

--DIRECTORS' REVIEW-- Financial Performance CDL Investments New Zealand Limited ("CDI") recorded a profit after tax of $33.6 million for the year ended 31 December 2018, an increase of 4.6% from the previous year (2017: $32.2 million). This result is the ninth consecutive year of profit growth for the company. Property sales & other income totaled $85.0 million (2017: $78.7 million). Profit before tax also increased to $46.7 million (2017: $44.7 million). Shareholders' funds as at 31 December 2018 increased to $210.6 million (2017: $186.1 million) and the Company's total assets stood at $217.6 million (2017: $191.7 million). The net tangible asset per share (at book value) at balance date was 75.7 cents (2017: 67.1 cents). Dividend Announcement Reflecting the result, CDI has resolved to maintain its fully imputed ordinary dividend at 3.5 cents per share payable on 17 May 2019. The record date will be 3 May 2019. The Dividend Reinvestment Plan will apply to this dividend. Land portfolio At 31 December 2018, the independent market value of CDI's land holdings was $337.8 million (2017: $276.3 million). At cost, the portfolio was valued at $169.7 million (2017:$124.7 million) in line with CDI's accounting policies. This reflects both the sales made during the year as well as acquisitions of 86.4 hectares of land in 2018 in Hamilton and Christchurch. Good progress is being made on the commercial areas which are part of our Prestons Park and Stonebrook subdivisions and we anticipate that these should be ready for occupation in the first half of 2020. Summary and Outlook With our recent land acquisitions, the Board is confident that the future of the company and its core business is secure. The Board is also satisfied that the changes to the Overseas Investment Act introduced in 2018 merely adds additional procedural steps and will not materially affect the Company's acquisitions of land already zoned residential. The Board is therefore confident in CDI's business model of developing residential sections in growth areas. While we are confident that 2019 will be profitable, we are already seeing a slowing property market and this sentiment will impact our sections sales in coming months. 2019 will therefore necessitate some degree of flexibility in our sales approaches in order to maintain our positive sales tempo. Management and staff On behalf of the Board, I thank our management and staff for their work in 2018. I would like to take this opportunity to acknowledge two members of the CDI family who we lost in the course of 2018. Long-standing former Independent Director Rob Challinor passed away after a long illness in October and our highly respected former Executive Director John Lindsay passed away after a short illness in November. The Board sent its condolences to both families and will mark their respective contributions to CDI at an appropriate time in the future. Colin Sim Chairman 13 February 2019 --MEDIA RELEASE-- PROFIT GROWTH FOR CDL INVESTMENTS NEW ZEALAND Property development company CDL Investments New Zealand Limited (NZX: CDI) today reported an increased profit after tax as part of its results for the year ended 31 December 2018. CDI increased its profit after tax by 4.6% to $33.6 million with property sales & other income increasing by 8.1% to $85.0 million over 2017. "It's pleasing to report a ninth consecutive year of profit growth", said managing director Mr. B K Chiu. "Market conditions, especially in the last half of 2018, started changing with the number of sales slowing noticeably and this is something we expect will continue into much of 2019", he added. CDI also reported that it had acquired over 86 hectares of land in the past year in Hamilton and Christchurch for future development. "These acquisitions were made at strategic locations. It was important to have a pipeline to continue our core activity of residential land development for sustainable growth across a geographical spread where the company has built its experience on", said Mr. Chiu. He also noted that the recent changes to the Overseas Investment Act added additional procedural steps for the acquisition of land already zoned residential. The new regulations would not materially affect CDI's business model of residential development. CDI's Board resolved to maintain its dividend at 3.5 cents per share fully imputed which would be paid to shareholders on 17 May 2019. The Record Date would be 3 May 2019 and the Dividend Reinvestment Plan will apply to this dividend. Speaking to the outlook for 2019, Mr. Chiu noted that the company would need to adopt a flexible sales plan as well as timing the development and release of sections appropriately. "The diversification of land into commercial development adjacent to our Prestons Park (Christchurch) and Stonebrook (Rolleston) subdivisions will add a recurring income stream for the company in 2020. At the same time CDI's strong balance sheet allows the company to capitalise on land acquisition opportunities in an environment where housing supply still lags behind demand", he said. Summary of results: o Profit after tax $33.6 million (2017: $32.2 million) o Profit before tax $46.7 million (2017: $44.7 million) o Total revenue & other income $85.0 million (2017: $78.7 million) o Shareholders' funds $210.6 million (2017: $186.1 million) o Total assets $217.6 million (2017: $191.7 million) o Net tangible asset value (at book value) 75.7 cents per share (2017: 67.1cps) o Earnings per share 12.10 cents per share (2017: 11.60cps) 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 End CA:00330512 For:CDI Type:FLLYR Time:2019-02-13 13:00:12