CDI 2019 Results Announcement

--DIRECTORS' REVIEW-- --Financial Performance For the year ended 31 December 2019, CDL Investments New Zealand Limited ("CDI") recorded a profit after tax of $34.1 million (2018: $33.6 million). This result is the tenth consecutive year of profit growth for the company. Property sales & other income totaled $91.8 million (2018: $85.0 million). Profit before tax also increased to $47.4 million (2018: $46.7 million). Given slowing market conditions, the Board believes that this is a very creditable result. At 31 December 2019 shareholders' funds increased to $235.5 million (2018: $210.6 million) and total assets were $240.7 million (2018: $217.6 million). Net tangible asset per share (at book value) was 84.5 cents (2018: 75.7 cents). Land portfolio The independent market value of CDI's land holdings was $315.6 million reflecting sales made in 2019 (2018: $337.8 million) as at 31 December 2019. At cost, the portfolio was valued at $182.7 million (2018:$169.7 million) in line with CDI's accounting policies. During the year, CDI acquired a total of 9.7 hectares of land in Hawkes Bay. Management is targeting further acquisitions but only if pricing and location are competitive in line with the company's investment criteria. We announced in late December that sales of the first stages had commenced at our Dominion Road (Papakura, South Auckland) and Kewa Road (North Shore, Auckland) subdivisions. Both of these developments are well located and well priced and we expect to recognise these sales in the current year with development on further stages to be also undertaken as well. The commercial areas located at Prestons Park (Canterbury) and Stonebrook (Rolleston, Selwyn District) are progressing well. Stonebrook is on track for completion and letting out in the first half of this year with construction of Prestons Park due to be completed by the end of this year with letting in early 2021. --Dividend Announcement The Board has resolved to maintain its fully imputed ordinary dividend at 3.5 cents per share payable on 15 May 2020. The record date will be 1 May 2020. The Dividend Reinvestment Plan will apply to this dividend. --Summary and Outlook In the 2019 interim report, we noted that trading conditions were "challenging" and it is a credit to the work of the CDI team, particularly in the latter part of 2019, that we have been able to a deliver a result better than the last few years in a slowing market. These challenges are set to continue in 2020 but we are confident that the location and quality of our developments are in areas which have high demand and will prove attractive to buyers. The Board has set realistic goals for the year ahead and we are targeting an earnings result for 2020 which reflects current market conditions. Shareholders can be confident that CDI has the land resources, the product expertise and the future pipeline to achieve positive earnings and will be able to withstand the cyclical nature of the property markets. On behalf of my fellow directors, I thank our staff for their contributions to a profitable result in 2019. Colin Sim Chairman 10 February 2020 --MEDIA RELEASE-- CDL INVESTMENTS NEW ZEALAND RECORDS A FULL DECADE OF PROFIT GROWTH Property development company CDL Investments New Zealand Limited (NZX: CDI) today reported its results for the year ended 31 December 2019. CDI increased its profit after tax to $34.1 million with property sales & other income increasing by 7.9% to $91.8 million over the previous year. "CDI has reported a decade of profit growth, which we think is a very creditable achievement, especially given challenging market conditions", said CDI's Managing Director Mr. B K Chiu. "In the latter part of 2019 we had to adjust and refine our sales and development strategies and shareholders can be pleased that those strategies have worked and have translated into profit", he added. CDI also reported that it had acquired over 9 hectares of land in the past year in Hawkes Bay and was targeting further acquisitions. "While our acquisitions over the past few years now give us sufficient land to sustain our core business over the medium term, we are continuing to look for opportunities that meet our investment criteria. As our existing commercial areas in Canterbury and Rolleston are both on track for letting this year, such opportunities could be additional land or commercial developments", said Mr. Chiu. CDI's Board resolved to maintain its dividend at 3.5 cents per share fully imputed which would be paid to shareholders on 15 May 2020. The Record Date would be 1 May 2020 and the Dividend Reinvestment Plan would apply. Speaking to the prospects for the coming year, Mr. Chiu said that CDI had set realistic goals allowing for market conditions. "We will have profitable sales in 2020 and our results will reflect the market. More importantly, our message to our shareholders is that they can be confident that we have land assets which will hold their value, product that is in demand and a pipeline of sections across the country to deliver positive results. Our strategy will ensure that we are able to go beyond the current property cycle", he said. Summary of results: --Profit after tax: $34.1 million (2018: $33.6 million) --Profit before tax: $47.4 million (2018: $46.7 million) --Property sales & other income: $91.8 million (2018: $85.0 million) --Shareholders' funds: $235.5 million (2018: $210.6 million) --Total assets: $240.7 million (2018: $217.6 million) --Net tangible asset value (at book value) 84.5 cents per share (2018: 75.7cps) --Earnings per share 12.26 cents per share (2018: 12.10cps) 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 End CA:00348161 For:CDI Type:FLLYR Time:2020-02-10 14:36:37