CDI: 2020 Results Announcement

DIRECTORS' REVIEW --Financial Performance CDL Investments New Zealand Limited ("CDI") is pleased to report that after an extraordinary year, the company recorded a profit after tax of $30.1 million (2019: $34.1 million) in 2020, which is a very creditable result under challenging circumstances. Reflecting the fact that the company was able to trade during lockdown and also reflecting active demand in all regions during the year, CDI's property sales & other income totaled $88.8 million (2019: $91.8 million). Profit before tax was $41.8 million (2019: $47.4 million). At 31 December 2020, CDI's shareholders' funds increased to $257.1 million (2019: $235.5 million) and total assets also increased to $265.0 million (2019: $240.7 million). Net tangible asset per share (at book value) was 91.7 cents (2019: 84.5 cents). --Property portfolio Our Dominion Road (Papakura, South Auckland) and Kewa Road (North Shore, Auckland) subdivisions both sold well and further stages commenced development in 2020. Demand was high and we expect that the new additional stages will sell quickly in 2021. Sales at Prestons Park (Christchurch) were also very positive and we recorded additional sales at Magellan Heights (Hamilton) and Northwood (Hastings). During 2020, CDI acquired a total of 1.4 hectares of land in the Hawkes Bay region. Additional acquisitions are being considered in 2021 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. The five unit Commercial Centre located at Stonebrook (Rolleston, Selwyn District) is complete and the first lease agreements were signed in Q4 2020 with the tenants commencing their operations during Q1 2021. Construction of the fifteen unit Commercial Centre at Prestons Park, Christchurch has commenced with Block 1 (five units) scheduled to be completed in July 2021 and Block 2 (ten units) due to be completed in December 2021. In addition, the company has entered into an agreement for a Design Build and Lease development at one of its commercially-zoned sites in Wiri, Auckland. This is a very positive step for CDI's diversification strategy and construction of the warehouse/ office is scheduled to commence in February 2021. CDI did not apply for assistance from the government Wage Subsidy programme. As at 31 December 2020, the independent market value of CDI's property holdings was $292.8 million (2019: $315.6 million). At cost, the portfolio was valued at $164.8 million (2019:$182.7 million) in line with CDI's accounting policies. --Dividend Announcement The Board has resolved to maintain its fully imputed ordinary dividend at 3.5 cents per share payable on 14 May 2021. The amount reflects the profit result achieved in 2020 but will also allow the company to retain earnings to acquire additional land during the course of this year. The record date will be 30 April 2021. The Dividend Reinvestment Plan will apply to this dividend. --Summary and Outlook Shareholders should be pleased that CDI was able to achieve a result in 2020 which mirrored 2019 especially in a year which, to put it mildly, was discombobulating. CDI with its geographically diverse portfolio of residential sections in Auckland, Hamilton and Christchurch benefitted from unusually positive market conditions. While these conditions remain evident, the company is optimistic that 2021 will also see a solid level of sales across New Zealand for residential sections. New stages will be developed and brought to market to meet this demand including sections in Kewa Road and Dominion Road in Auckland, and Prestons Park in Christchurch. Over the past seven years, we have selectively acquired 154.5 hectares of land for our core business of residential development. These acquisitions will continue as more identified opportunities become available and announcements made in due course. In the past three years, we have also embarked on strategies to diversify our development programme and revenue stream and we will continue with this where we believe this is suitable and will deliver additional value to shareholders. The Board is confident that the acquisitions made and those to be made in 2021 will ensure that the Company is able to secure a sufficient pipeline of development land to maintain CDI's future profitable operations. On behalf of the Board, I thank our staff for their extraordinary work in an extraordinary year. Colin Sim Chairman 17 February 2021 **MEDIA RELEASE** CDL INVESTMENTS NEW ZEALAND RECORDS SOLID PROFIT AFTER A "DISCOMBOBULATING" 2020 NZX-listed residential property developer CDL Investments New Zealand Limited (NZX: CDI) today reported its results for the year ended 31 December 2020. Reflecting on what he called a "discombobulating" year, Managing Director Mr. BK Chiu said that CDI's 2020 results, which included a profit after tax of $30.1 million, was "very creditable". "Considering that we were able to continue to trade even through the six-week lockdown, the fact that we mirrored our 2019 results reflects well on the quality and desirability of our products, our business and our people", he said. Unusually buoyant market conditions allowed CDI to record property sales and other income of $88.8 million, a slight reduction from 2019. "Overall, we recorded positive sales across our developments. We were very pleased with the level of sales at our Auckland subdivisions at Dominion Road, Papakura and Kewa Road, North Shore. The demand was very high at our Magellan Heights (Hamilton) and Northwood (Hastings) subdivisions, which saw us sell out these developments during the year. Our Prestons Park development in Christchurch continues to sell well with demand presently exceeding supply", said Mr. Chiu. CDI announced that in the past year, an additional 1.4 hectares of land had been acquired and that additional acquisitions would be considered in 2021 to bolster the company's development stock in growth areas. Its commercial development at Stonebrook (Rolleston) was now complete with tenants moving in shortly and construction of the commercial centre at Prestons Park had also commenced. CDI also announced that it had entered into a Design Build & Lease agreement for one of its sites in Wiri (Auckland) with construction of the warehouse / office complex to commence later this month. "Where we can add additional value by building or developing commercial units, we will do so", said Mr. Chiu. "These commercial developments are very positive and important steps in diversifying our activities and supplement our core business 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 14 May 2021. The Record Date would be 30 April 2021 and the Dividend Reinvestment Plan would apply. Speaking to future trading conditions, Mr. Chiu said that CDI was looking to make the most of the current positivity in the market for selling and buying land. "We have clear short-term and long-term goals for CDI. Short term, our aim is to meet demand in 2021 and 2022 at our existing developments. We have land in Auckland and Hamilton which can be developed into new residential sections right now. But, like other land and housing development companies, we need councils and central government to cut through the regulatory red tape and stop the delays and help us help them tackle the current shortage of residential land across New Zealand. There is a lot that local authorities can do immediately and we are optimistic that the reform promised by central government to planning and resource management laws will assist everyone further". "Longer term, we are looking to make acquisitions to secure CDI's future as a profitable property developer. Those acquisitions will position CDI beyond property cycles and after what we experienced in 2020, it is even more important to do that", he said. Summary of results: --Property sales & other income = $88.8 million (2019: $91.8 million) --Profit before tax = $41.8 million (2019: $47.4 million) --Profit after tax = $30.1 million (2019: $34.1 million) --Shareholders' funds = $257.1 million (2019: $235.5 million) --Total assets = $265.0 million (2019: $240.7 million) --Net tangible asset value (at book value) = 91.7 cents per share (2019: 84.5cps) --Earnings per share = 10.75 cents per share (2019: 12.26cps) 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:00367669 For:CDI Type:FLLYR Time:2021-02-17 08:30:24