CDI: 2020 Results Announcement

Results announcement



Results for announcement to the market
Name of issuer CDL Investments New Zealand Limited (CDI)
Reporting Period 12 months to 31 December 2020
Previous Reporting Period 12 months to 31 December 2019
Currency NZD

Amount (000s) Percentage change
Revenue from continuing
operations
$88,778 -3.29%
Total Revenue $88,778 -3.29%
Net profit/(loss) from
continuing operations
$30,099 -11.84%
Total net profit/(loss) $30,099 -11.84%
Interim/Final Dividend
Amount per Quoted Equity
Security
$0.03500000
Imputed amount per Quoted
Equity Security
$0.01361111
Record Date 30 April 2021
Dividend Payment Date 14 May 2021
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.92 $0.85
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Refer Chairman’s Review accompanying this announcement
Authority for this announcement
Name of person

authorised
to make this announcement
Takeshi Ito (Company Secretary)
Contact person for this
announcement
Takeshi Ito (Company Secretary)
Contact phone number 09 353 5077
Contact email address takeshi.ito@cdli.co.nz
Date of release through MAP

17 February 2021

Audited financial statements accompany this 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

---

17 February 2021

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

---

Distribution Notice




Please note: all cash amounts in this form should be provided to 8 decimal places

Section 1: Issuer information
Name of issuer
CDL Investments New Zealand Limited
Financial product name/description
Ordinary Shares
NZX ticker code
CDI
ISIN (If unknown, check on NZX
website)
NZKGLE0001S8

Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year X
Quarterly
Half Year Special
DRP
applies
X

Record date
30/04/2021
Ex-Date (one business day before the
Record Date)
29/04/2021
Payment date (and allotment date for
DRP)
14/05/2021
Total monies associated with the
distribution
1

$9,815,229.72
Source of distribution (for example,
retained earnings)
Retained earnings
Currency
NZD
Section 2: Distribution amounts per financial product
Gross distribution
2

$0.04861111
Gross taxable amount
3

$0.04861111
Total cash distribution
4

$0.03500000
Excluded amount (applicable to listed
PIEs)
n/a
Supplementary distribution amount
$0.00617647
Section 3: Imputation credits and Resident Withholding Tax
5

Is the distribution imputed
Fully imputed
Partial imputation
No imputation

1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.
This should include any excluded amounts, where applicable to listed PIEs.
5
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is
fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute
advice as to whether or not RWT needs to be withheld.

If fully or partially imputed, please
state imputation rate as % applied
6

28%
Imputation tax credits per financial
product
$0.01361111
Resident Withholding Tax per
financial product
$0.00243056
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
Nil
Start date and end date for
determining market price for DRP
03/05/2021 07/05/2021
Date strike price to be announced (if
not available at this time)
10/05/2021
Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)
Ordinary shares (new issue)
DRP strike price per financial product
[to be advised]
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
03/05/2021
Section 5: Authority for this announcement
Name of person

authorised to make
this announcement
Takeshi Ito (Company Secretary)
Contact person for this
announcement
Takeshi Ito (Company Secretary)
Contact phone number
09 353 5077
Contact email address
takeshi.ito@cdli.co.nz
Date of release through MAP

17/02/2021





6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.

---

Page 1
CDL Investments New Zealand Limited
CD
L Investments New Zealand LimitedCDL Investments New Zealand Limited
CDL Investments New Zealand Limited


Consolidated Statement of Comprehensive Income
For
the year ended
For the year ended For the year ended
For the year ended 31 December
31 December 31 December
31 December 2020
20202020
2020


Group
GroupGroup
Group


In
thousands of dollars


Note
NoteNote
Note

2020
20202020
2020



2019
20192019
2019



Revenue 88,633 91,610
Cost of sales (43,290) (40,861)
Gross Profit
Gross ProfitGross Profit
Gross Profit 45,343
45,34345,343
45,343

50,749
50,74950,749
50,749


Other income 145 184
Administrative expenses 3, 4 (256)(240)
Property expenses (417)(384)
Selling expenses (2,541) (2,559)
Other expenses 3, 4 (1,499) (1,349)
Results from operating activities
Results from operating activitiesResults from operating activities
Results from operating activities

40,775
40,77540,775
40,775

46,401
46,40146,401
46,401


Finance income 5 1,038 1,029
Finance costs 5 (2)(4)
Net finance income
Net finance incomeNet finance income
Net finance income

1,0
1,01,0
1,036
3636
36

1,025
1,0251,025
1,025


Profit before income tax
Profit before income taxProfit before income tax
Profit before income tax

4
44
41,811
1,8111,811
1,811

47,426
47,42647,426
47,426


Income tax expense 6 (11,712) (13,286)
Profit for the period
Profit for the periodProfit for the period
Profit for the period

30,099
30,09930,099
30,099

34,140
34,14034,140
34,140


Total comprehensive
Total comprehensive Total comprehensive
Total comprehensive income for the period
income for the periodincome for the period
income for the period

30,099
30,09930,099
30,099

34,140
34,14034,140
34,140


Profit attributable to:
Profit attributable to:Profit attributable to:
Profit attributable to:


Equity holders of the parent 30,099 34,140
Total comprehensive income for the period
Total comprehensive income for the periodTotal comprehensive income for the period
Total comprehensive income for the period

30,099
30,09930,099
30,099

34,140
34,14034,140
34,140


Earnings per share (cents per share) 14 10.75 12.26
Th
e accompanying notes form part of, and should be read in conjunction with these financial statements.

Page 2
CDL Investments New Zealand Limited
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DL Investments New Zealand LimitedCDL Investments New Zealand Limited
CDL Investments New Zealand Limited



Consolidated Statement of Changes in Equity

For the year ended
For the year ended For the year ended
For the year ended 31 December
31 December 31 December
31 December 2020
20202020
2020










Group
GroupGroup
Group





In thousands of dollars

Note
NoteNote
Note


Share
Share Share
Share
Capital
CapitalCapital
Capital



Retained
Retained Retained
Retained
Earnings
EarningsEarnings
Earnings



Total
Total Total
Total
Equity
EquityEquity
Equity



Balance at 1 January 2019

54,864

155,730

210,594


Total comprehensive income for the period
Total comprehensive income for the periodTotal comprehensive income for the period
Total comprehensive income for the period



Profit for the period

-

34,140

34,140

Total comprehensive income for the period
Total comprehensive income for the periodTotal comprehensive income for the period
Total comprehensive income for the period



-
--
-



34,140
34,14034,140
34,140



34,140
34,14034,140
34,140




Transactions with owners of the Company
Transactions with owners of the CompanyTransactions with owners of the Company
Transactions with owners of the Company



Shares issued under dividend reinvestment plan 13 510

-

510

Dividend to shareholders
13

-

(9,734)

(9,734)

Supplementary dividend


-



(309)

(309)

Foreign investment tax credits



-
--
-



309

309

Balance at 31 December
Balance at 31 December Balance at 31 December
Balance at 31 December 2019
20192019
2019



55,374
55,37455,374
55,374



180,136
180,136180,136
180,136



235,510
235,510235,510
235,510




Balance at 1 January 2020

55,374

180,136

235,510


Total comprehensive income for the period
Total comprehensive income for the periodTotal comprehensive income for the period
Total comprehensive income for the period



Profit for the period

-

30,099

30,099

Total comprehensive income for the period
Total comprehensive income for the periodTotal comprehensive income for the period
Total comprehensive income for the period



-
--
-



30,099
30,09930,099
30,099



30,099
30,09930,099
30,099




Transactions with owners
Transactions with ownersTransactions with owners
Transactions with owners

of the Company
of the Companyof the Company
of the Company



Shares issued under dividend reinvestment plan 13 1,280

-

1,280

Dividend to shareholders
13

-

(9,758)

(9,758)

Supplementary dividend


-



(286)

(286)

Foreign investment tax credits



-
--
-



286

286

Balance at 31 December
Balance at 31 December Balance at 31 December
Balance at 31 December 2020
20202020
2020



56,654
56,65456,654
56,654



200,477
200,477200,477
200,477



257,131
257,131257,131
257,131



































The accompanying notes form part of, and should be read in conjunction with these financial statements.

Page 3
CDL Investments New Zealand Limited
C
DL Investments New Zealand LimitedCDL Investments New Zealand Limited
CDL Investments New Zealand Limited



Consolidated Statement of Financial Position

As at
As at As at
As at 31 December
31 December 31 December
31 December 2020
20202020
2020







Group
GroupGroup
Group


In thousands of dollars





Note
NoteNote
Note

2020
20202020
2020



2019
20192019
2019



SHAREHOLDERS’ EQUITY
Issued capital 13 56,654 55,374
Retained earnings 200,477 180,136



Total Equity
Total EquityTotal Equity
Total Equity

257,131
257,131257,131
257,131

235,510
235,510235,510
235,510



Represented by:

NON CURRENT ASSETS
Property, plant and equipment 23 32
Development property 8 119,096 145,138
Investment property 9 3,325 -
Investment in associate 17 2 2

Total Non Current Assets
Total Non Current AssetsTotal Non Current Assets
Total Non Current Assets 122,446
122,446122,446
122,446

145,172
145,172145,172
145,172




CURRENT ASSETS
Cash and cash equivalents 12 10,111 34,435
Short term deposits 15 86,620 19,620
Trade and other receivables 11 3,486 3,932
Development property 8 42,342 37,541

Total Current Assets
Total Current AssetsTotal Current Assets
Total Current Assets

142,5
142,5142,5
142,55
55
59
99
9

95,528
95,52895,528
95,528









Total Assets
Total AssetsTotal Assets
Total Assets



26
2626
265
55
5,
,,
,005
005005
005



240,700
240,700240,700
240,700







NON CURRENT LIABILITIES
Deferred tax liabilities 10 59 63
Lease liability 3 10

Total Non Current liabilities
Total Non Current liabilitiesTotal Non Current liabilities
Total Non Current liabilities 62
6262
62

73
7373
73




CURRENT LIABILITIES
Trade and other payables 3,932 984
Employee entitlements 52 38
Income tax payable 3,821 4,081
Lease liability 7 14

Total Current Liabilities
Total Current LiabilitiesTotal Current Liabilities
Total Current Liabilities

7,812
7,8127,812
7,812

5,117
5,1175,117
5,117









Total Liabilities
Total LiabilitiesTotal Liabilities
Total Liabilities

7,874
7,8747,874
7,874

5,190
5,1905,190
5,190









Net Assets
Net AssetsNet Assets
Net Assets

257,131
257,131257,131
257,131

235,510
235,510235,510
235,510



For and on behalf of the Board

R AUSTIN, DIRECTOR, 17 February 2021 BK CHIU, MANAGING DIRECTOR, 17 February 2021



The accompanying notes form part of, and should be read in conjunction with these financial statements.

Page 4
CDL Investments New Zealand Limited
C
DL Investments New Zealand LimitedCDL Investments New Zealand Limited
CDL Investments New Zealand Limited



Consolidated Statement of Cash Flows

For the year ended
For the year ended For the year ended
For the year ended 31 December
31 December 31 December
31 December 2020
20202020
2020







Group
GroupGroup
Group


In thousands of dollars





Note
NoteNote
Note

2020
20202020
2020



2019
20192019
2019




CASH FLOWS FROM OPERATING ACTIVITIES
Cash was provided from:
Cash was provided from:Cash was provided from:
Cash was provided from:


Receipts from customers 89,391 89,650
Interest received 871 1,225



Cash was applied to:
Cash was applied to:Cash was applied to:
Cash was applied to:
Payment to suppliers (21,979) (49,854)
Payment to employees (546) (527)
Deposits paid on unconditional contracts for development land - (78)
Purchase of development land (1,260) (9,060)
Income tax paid (11,690) (13,646)







Net Cash Inflow from Operating Activities

54,787
54,78754,787
54,787

17,710
17,71017,710
17,710



CASH FLOWS FROM INVESTING ACTIVITIES
Cash was provided from:
Cash was provided from:Cash was provided from:
Cash was provided from:


Short term deposits 19,620 38,620

Cash was applied to:
Cash was applied to: Cash was applied to:
Cash was applied to:


Development of investment property (3,325) -
Purchase of plant and equipment (6) (6)
Short term deposits (86,620) (19,620)

Net Cash Inflow/(Outflow) from Investing Activities

(70,331)
(70,331)(70,331)
(70,331)

18,994
18,99418,994
18,994



CASH FLOWS FROM FINANCING ACTIVITIES
Cash was applied to:
Cash was applied to:Cash was applied to:
Cash was applied to:
Dividend paid (8,478) (9,224)
Principal repayment of lease liability (16) (16)
Supplementary dividend paid (286) (309)

Net Cash Outflow from Financing Activities (
((
(8,780
8,7808,780
8,780)
))
)

(
((
(9,549
9,5499,549
9,549)
))
)



Net Increase/(Decrease) in Cash and Cash Equivalents

(24,324)

27,155

Add Opening Cash and Cash Equivalents 34,435 7,280

Closing Cash and Cash Equivalents
Closing Cash and Cash EquivalentsClosing Cash and Cash Equivalents
Closing Cash and Cash Equivalents

12 10,111
10,11110,111
10,111

34,435
34,43534,435
34,435























































The accompanying notes form part of, and should be read in conjunction with these financial statements.

Page 5
CDL Investments New Zealand Limited
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DL Investments New Zealand LimitedCDL Investments New Zealand Limited
CDL Investments New Zealand Limited



Consolidated Statement of Cash Flows - continued

For the year ended
For the year ended For the year ended
For the year ended 31 December
31 December 31 December
31 December 2020
20202020
2020







Group
GroupGroup
Group






In thousands of dollars






Note
NoteNote
Note

2020
20202020
2020



2019
20192019
2019




RECONCILIATION OF PROFIT FOR THE PERIOD TO CASH
FLOWS FROM OPERATING ACTIVITIES


Net Profit after Taxation

30,099

34,140




Adjusted for non cash items:
Adjusted for non cash items:Adjusted for non cash items:
Adjusted for non cash items:


Depreciation of plant & equipment 1 1
Depreciation of right-of-use assets 14 14
Income tax expense 6 11,712 13,286

Adjustments for movements in working capital:
Adjustments for movements in working capital:Adjustments for movements in working capital:
Adjustments for movements in working capital:
(Increase)/Decrease in receivables 446 (1,948)
(Increase)/Decrease in development property 21,241 (12,955)
Increase/(Decrease) in payables 2,964 (1,182)

Cash
Cash Cash
Cash generated
generatedgenerated
generated

from
from from
from operating
operatingoperating
operating

activities
activitiesactivities
activities

66,477
66,47766,477
66,477

31,356
31,35631,356
31,356



Income tax paid (11,690) (13,646)

Cash Inflow
Cash InflowCash Inflow
Cash Inflow

from Operating Activities
from Operating Activitiesfrom Operating Activities
from Operating Activities

54,787
54,78754,787
54,787

17,710
17,71017,710
17,710





































The accompanying notes form part of, and should be read in conjunction with these financial statements.

Page 6
CDL Investments New Zealand Limited
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DL Investments New Zealand LimitedCDL Investments New Zealand Limited
CDL Investments New Zealand Limited


Notes to the Consolidated Financial Statements
For the year ended 31 December 2020

SIGNIFICANT ACCOUNTING POLICIES
S
IGNIFICANT ACCOUNTING POLICIESSIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES





REPORTING ENTITY
REPORTING ENTITYREPORTING ENTITY
REPORTING ENTITY


CDL Investments New Zealand Limited (the “Company”) is a company domiciled in New Zealand, registered under
the Companies Act 1993 and listed on the New Zealand Stock Exchange. The Company is a FMC Reporting Entity
in terms of the Financial Markets Conduct Act 2013 and the Financial Reporting Act 2013.

The financial statements of the Company for the year ended 31 December 2020 comprises the Company and its
subsidiary (together referred to as the “Group”).

The principal activity of the Group is the development and sale of residential land properties.

(a)
(a)(a)
(a)

Statement of compliance
Statement of complianceStatement of compliance
Statement of compliance


The financial statements have been prepared in accordance with New Zealand Generally Accepted
Accounting Practice (“NZ GAAP”). They comply with New Zealand equivalents to International Financial
Reporting Standards (“NZ IFRS”) and other applicable Financial Reporting Standards, as appropriate for Tier
1 profit-oriented entities. The financial statements also comply with International Financial Reporting
Standards (“IFRS”).

The financial statements were authorised for issuance on 17 February 2021.

(b)
(b)(b)
(b)

Basis of preparation
Basis of preparationBasis of preparation
Basis of preparation


The financial statements are presented in New Zealand Dollars ($), which is the Company’s functional
currency. All financial information presented in New Zealand dollars has been rounded to the nearest
thousand.

The financial statements have been prepared on the historical cost basis.

The preparation of financial statements in conformity with NZ IFRS requires management to make
judgements, estimates and assumptions that affect the application of company policies and reported amounts
of assets and liabilities, income and expenses. Estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is
revised and in any future period affected.

In particular, information about significant areas of estimation uncertainty and critical judgements in applying
accounting policies that have the most significant effect on the amounts recognised in the financial
statements are described in Note 2 – Accounting Estimates and Judgements.

(
((
(c
cc
c)
))
)

Basis of consolidation
Basis of consolidationBasis of consolidation
Basis of consolidation


(i)
(i)(i)
(i)

Subsidiaries
SubsidiariesSubsidiaries
Subsidiaries


Subsidiaries are entities controlled by the Company. The Company controls an entity when it is exposed to,
or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns
through its power over the entity. The financial statements of subsidiaries are included in the consolidated
financial statements from the date on which control commences until the date on which control ceases.

(ii)
(ii)(ii)
(ii)

Subsidiaries
SubsidiariesSubsidiaries
Subsidiaries


Intragroup balances and any unrealised gains and losses or income and expenses arising from intragroup
transactions, are eliminated in preparing these consolidated financial statements.

(
((
(d
dd
d)
) )
)

Property, plant and equipment
Property, plant and equipmentProperty, plant and equipment
Property, plant and equipment


Items of property, plant and equipment are stated at cost less accumulated depreciation. The cost of
purchased property, plant and equipment is the value of the consideration given to acquire the assets and
the value of other directly attributable costs, which have been incurred in bringing the assets to the location
and condition necessary for their intended service. Depreciation on assets is calculated using the straight-
line method to allocate cost to their residual values over their estimated useful lives, as follows:
Plant and equipment 3 - 10 years



(
((
(e
ee
e)
))
)

Trade and other payables
Trade and other payablesTrade and other payables
Trade and other payables


Trade and other payables are stated at cost.

Page 7
CDL Investments New Zealand Limited
C
DL Investments New Zealand LimitedCDL Investments New Zealand Limited
CDL Investments New Zealand Limited


Notes to the Consolidated Financial Statements
For the year ended 31 December 2020

Significant accounting policies
S
ignificant accounting policies Significant accounting policies
Significant accounting policies - continued



(
((
(f
ff
f)
) )
)

Revenue
RevenueRevenue
Revenue


Revenue represents amounts derived from land and property sales, and is recognised when the customer
obtains control of the property and is able to direct and obtain the benefits from the property. The customer
gains control of the property when the Company receives full and final consideration for the property and the
Company transfers over the Certificate of Title.



(
((
(g
gg
g)
) )
)

New standards and interpretations not yet adopted
New standards and interpretations not yet adoptedNew standards and interpretations not yet adopted
New standards and interpretations not yet adopted


The following new standards and amendments to standards are not yet effective for the year ended 31
December 2020, and have not been applied in preparing these consolidated financial statements:

• Onerous Contracts – Cost of Fulfilling a Contract (Amendments to NZ IAS 37)
• Interest Rate Benchmark Reform – Phase 2 (Amendments to NZ IFRS 9, IAS 39, NZ IFRS 7, NZ IFRS
4 and NZ IFRS 16)
• COVID-19 Related Rent concessions (Amendment to NZ IFRS 16)
• Property, Plant and Equipment: Proceeds before Intended Use (Amendments to NZ IAS 16)
• Reference to Conceptual Framework (Amendments to NZ IFRS 3)
• Classification of Liabilities as Current or Non-current (Amendments to NZ IAS 1)
• NZ IFRS 17 Insurance Contracts and Amendments to NZ IFRS 17 Insurance Contracts

The Group has assessed the new standards and the adoption of these standards is not expected to have
a material impact on the Group’s financial statements.

Page 8
CDL Investments New Zealand Limited
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DL Investments New Zealand LimitedCDL Investments New Zealand Limited
CDL Investments New Zealand Limited


Notes to the Consolidated Financial Statements
For the year ended 31 December 2020

1.
1
.1.
1.

S
SS
SEGMENT REPORTING
EGMENT REPORTINGEGMENT REPORTING
EGMENT REPORTING


Operating
Operating Operating
Operating segments
segmentssegments
segments


The single operating segment of the Group consists of property operations, comprising the development
and sale of residential land sections.

The Group has determined that its chief operating decision maker is the Board of Directors on the basis that
it is this group which determines the allocation of resources to segments and assesses their performance.

An operating segment is a distinguishable component of the Group:
• that is engaged in business activities from which it earns revenues and incurs expenses,
• whose operating results are regularly reviewed by the Group’s chief operating decision maker to make
decisions on resource allocation to the segment and assess its performance, and
• for which discrete financial information is available.

Geographical segments
Geographical segmentsGeographical segments
Geographical segments


Segment revenue is based on the geographical location of the segment assets. All segment revenues are
derived in New Zealand.

Segment assets are based on the geographical location of the development property. All segment assets
are located in New Zealand.

The Group has no major customer representing greater than 10% of the Group’s total revenues.

2.
2
.2.
2.

ACCOUNTING ESTIMATES AND JUDGEMENTS
ACCOUNTING ESTIMATES AND JUDGEMENTSACCOUNTING ESTIMATES AND JUDGEMENTS
ACCOUNTING ESTIMATES AND JUDGEMENTS


Management discussed with the Audit Committee the development, selection and disclosure of the Group’s
critical accounting policies and estimates and the application of these policies and estimates.

Key sources of estimation uncertainty
Key sources of estimation uncertaintyKey sources of estimation uncertainty
Key sources of estimation uncertainty


In Note 15, detailed analysis is given of the interest rate and credit risk exposure of the Group and risks in
relation thereto. The Group is also exposed to a risk of impairment to development properties should the
carrying value exceed the market value due to market fluctuations in the value of development properties.
However, there is no indication of impairment as in Note 8 the carrying value of development properties is
$161,438,000 (2019: $182,679,000) while the market value determined by an independent registered valuer
is $286,380,000 (2019: $315,620,000).

3.
3
.3.
3.

ADMINISTRATI
ADMINISTRATIADMINISTRATI
ADMINISTRATIVE
VEVE
VE

AND OTHER EXPENSES
AND OTHER EXPENSESAND OTHER EXPENSES
AND OTHER EXPENSES


The following items of expenditure are included in administrative and other expenses:


In thousands of dollars

Group
GroupGroup
Group


Note
NoteNote
Note 2020
20202020
2020



2019
20192019
2019



Auditors’ remuneration

- Audit fees

55

54

- Tax compliance & tax advisory fees

4

7

Depreciation 15

15

Directors’ fees 17 130

130

Rental payments

66

66

Other

939

790

Total excluding personnel expenses

1,209
1,2091,209
1,209



1,062
1,0621,062
1,062




4.
4
.4.
4.

PERSONNEL EXPENSES
PERSONNEL EXPENSESPERSONNEL EXPENSES
PERSONNEL EXPENSES


In thousands of dollars

Group
GroupGroup
Group



2020
20202020
2020



2019
20192019
2019



Wages and salaries 480

455

Employee related expenses and benefits 64

70

Increase in liability for long-service leave 2

2



546
546546
546



527
527527
527






The Group’s net obligation in respect of long-term service benefits, is the amount of future benefit that
employees have earned in return for their service in the current and prior periods. The obligation is
calculated using their expected remunerations and an assessment of likelihood the liability will arise.

Page 9
CDL Investments New Zealand Limited
C
DL Investments New Zealand LimitedCDL Investments New Zealand Limited
CDL Investments New Zealand Limited


Notes to the Consolidated Financial Statements
For the year ended 31 December 2020



5.
5
.5.
5.

NET FINANCE INCOME
NET FINANCE INCOMENET FINANCE INCOME
NET FINANCE INCOME


In thousands of dollars

Group
GroupGroup
Group





2020
20202020
2020



2019
20192019
2019



Interest income 1,038

1,029

Finance income

1,038

1,029









Interest expense (2)

(4)

Finance costs

(2)

(4)









Net finance income

1,036
1,0361,036
1,036



1,025
1,0251,025
1,025




Finance income comprises interest receivable on funds invested that are recognised in the profit or loss.
Interest income is recognised in profit or loss as it accrues, using the effective interest method.

Finance costs comprises interest costs on lease liabilities that are recognised in the income statement.

6
6
6
6.
..
.

INCOME TAX EXPENSE
INCOME TAX EXPENSEINCOME TAX EXPENSE
INCOME TAX EXPENSE


Recognised in the
Recognised in the Recognised in the
Recognised in the statement of comprehensive income
statement of comprehensive incomestatement of comprehensive income
statement of comprehensive income


In thousands of dollars

Group
GroupGroup
Group


Current tax expense
Current tax expenseCurrent tax expense
Current tax expense

2020
20202020
2020



2019
20192019
2019



Current year 11,711

13,289

Adjustments for prior years 5

5

11,716

13,294

Deferred
Deferred Deferred
Deferred tax expense
tax expensetax expense
tax expense

Origination and reversal of temporary differences (4)

(10)

Adjustments for prior years -

2

(4)

(8)

Total income tax expense in the statement of comprehensive income 11,712
11,71211,712
11,712



13,286
13,28613,286
13,286





Reconciliation of effective tax rate
Reconciliation of effective tax rateReconciliation of effective tax rate
Reconciliation of effective tax rate


In thousands of dollars Group
GroupGroup
Group


2020
20202020
2020



2019
20192019
2019



Profit before income tax 41,811

47,426

Income tax using the company tax rate of 28% (2019: 28%) 11,707

13,279

Adjusted for:

Under/(over) provided in prior years 5

7

11,712
11,71211,712
11,712



13,286
13,28613,286
13,286



Effective tax rate 28%
28%28%
28%



28%
28%28%
28%




Income tax for the year comprises current and deferred tax. Income tax is recognised in profit or loss except
to the extent that it relates to items recognised directly in equity or other comprehensive income, in which
case it is recognised in equity or in other comprehensive income.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or
substantively enacted at the balance date, and any adjustment to tax payable in respect of previous years.

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the amounts used for taxation purposes. The temporary
differences relating to investments in subsidiaries are not provided for to the extent that they will probably
not reverse in the foreseeable future. The amount of deferred tax provided is based on the expected manner
of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or
substantively enacted at the balance date.

A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be
available against which the asset can be utilised. Deferred tax assets are reduced to the extent that it is no
longer probable that the related tax benefit will be realised.

Page 10
CDL Investments New Zealand Limited
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DL Investments New Zealand LimitedCDL Investments New Zealand Limited
CDL Investments New Zealand Limited


Notes to the Consolidated Financial Statements
For the year ended 31 December 2020

7
7
7
7.
..
.

IMPUTATION CREDITS
IMPUTATION CREDITSIMPUTATION CREDITS
IMPUTATION CREDITS






In thousands of dollars Group
GroupGroup
Group


2020
20202020
2020



2019
20192019
2019



Imputation credits available for use in subsequent reporting periods 75,946

67,765




8
88
8.
..
.

DEVELOPMENT PROPERTY
DEVELOPMENT PROPERTYDEVELOPMENT PROPERTY
DEVELOPMENT PROPERTY


In thousands of dollars Group
GroupGroup
Group


2020
20202020
2020



2019
20192019
2019



Expected to settle greater than one year 119,096

145,138

Expected to settle within one year 42,342

37,541

Development property 161,438
161,438161,438
161,438



182,679
182,679182,679
182,679




Development property is carried at the lower of cost and net realisable value. Cost includes the cost of
acquisition, development, and holding costs such as interest. Interest and other holding costs incurred after
completion of development are expensed as incurred. All holding costs are written off through profit or loss
in the year incurred with the exception of interest holding costs which are capitalised during the period when
active development is taking place. No interest (2019: nil) has been capitalised during the year.
Development property includes deposits paid on unconditional contracts for development land.

The Group’s inventory of development property is reviewed at each balance date to ensure its carrying
amount is recorded at the lower of its cost and net realisable value. The net realisable value of the
development property is the estimated selling price in the ordinary course of business less the estimated
costs of completion and costs necessary to make the sale. The determination of net realisable value of
inventory involves estimates taking into consideration prevailing market conditions, current prices and
expected date of commencement and completion of the project, the estimated future selling price, cost to
complete projects and selling costs. An impairment loss is recognised in the income statement to the extent
that the carrying value of development property exceeds its estimated net realisable value.

The value of development property held at 31 December 2020 was determined, on an open market existing
use basis, by an independent registered valuer, DM Koomen SPINZ of Extensor Advisory Limited as $286.4
million (2019: $315.6 million). The fair value is determined to estimate the net realisable value.

The fair value of development property as determined by the independent valuer is categorised as Level 3
based on the inputs to the valuation methodology. The basis of the valuation is the hypothetical subdivision
approach and/or block land sales comparisons to derive the residual block land values. The major
unobservable inputs that are used in the valuation model that require judgement include the individual
section prices, allowances for profit and risk, projected completion and sell down periods and interest rates
during the holding period. The estimated fair value would increase or (decrease) if: the individual section
prices were higher/(lower); the allowances for profit were higher/(lower); the allowances for risk were
lower/(higher); the projected completion and sell down periods were shorter/(longer); and the interest rate
during the holding period was lower/(higher).

9
9
9
9.
..
.

INVESTMENT PROPERTY
INVESTMENT PROPERTYINVESTMENT PROPERTY
INVESTMENT PROPERTY


In thousands of dollars Group
GroupGroup
Group




Freehold
Freehold Freehold
Freehold
Land
LandLand
Land



Buildings
BuildingsBuildings
Buildings



Work in
Work in Work in
Work in
Progress
ProgressProgress
Progress



Total
TotalTotal
Total



Cost
CostCost
Cost


Balance at 1 January 2020 - - - -
Acquisitions 265 2,873 187 3,325
Balance at 31 December 2020 265 2,873 187 3,325









Depreciation and impairment losses
Depreciation and impairment lossesDepreciation and impairment losses
Depreciation and impairment losses


Balance at 1 January 2020 - - - -
Balance at 31 December 2020 -
--
-

-
--
-

-
--
-

-
--
-











Carrying
Carrying Carrying
Carrying amounts
amountsamounts
amounts


Balance at 1 January 2020 - - - -
Balance at 31 December 2020
Balance at 31 December 2020Balance at 31 December 2020
Balance at 31 December 2020 265
265265
265

2,873
2,8732,873
2,873

187
187187
187

3,325
3,3253,325
3,325

Page 11
CDL Investments New Zealand Limited
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DL Investments New Zealand LimitedCDL Investments New Zealand Limited
CDL Investments New Zealand Limited


Notes to the Consolidated Financial Statements
For the year ended 31 December 2020



9
9
9
9.
..
.

INVESTMENT PROPERTY
INVESTMENT PROPERTY INVESTMENT PROPERTY
INVESTMENT PROPERTY – continued


Investment properties consist of retail shops at Stonebrook in Rolleston and retail shops at Prestons Park
in Christchurch. The former were completed during December 2020 while the latter are currently under
construction. The fair value of investment properties held at 31 December 2020 was determined by an
independent registered valuer, DM Koomen SPINZ, of Extensor Advisory Limited as $6.43 million (2019:
nil).

Investment properties are properties held either to earn rental income or capital appreciation or for both, but
not for sale in the ordinary course of business, use in the production or supply of goods and services, or for
administrative purposes.

Investment properties are stated at cost less accumulated depreciation and accumulated impairment losses.
Cost includes expenditure that is directly attributable to the acquisition of the investment properties. Costs
of self-constructed investment properties include costs of materials and direct labour, any other costs
directly attributable to bringing the investment properties to a working condition for their intended use and
capitalised borrowing costs. Gains and losses on disposal of investment properties (calculated as the
difference between the net proceeds from disposal and the carrying amounts of the investment properties)
are recognised in the profit and loss.

The fair value of development property as determined by the independent valuer is categorised as Level 3
based on the inputs to the valuation methodology. The basis of the valuation is the capitalisation of the
assessed market rentals allowing for vacancies and leasing fees to derive the fair values. The major
unobservable inputs that are used in the valuation model that require judgement include the rental rate on
the individual tenancy, allowances for vacancies, estimation of leasing fees, and interest rates during the
holding period. The estimated fair value would increase or (decrease) if: the individual rental rates were
higher/(lower); the allowances for vacancies were (higher)/lower; the allowances of leasing fees were
lower/(higher); and the interest rate during the holding period was lower/(higher).

10
1
010
10.
..
.

DEFERRED TAX ASSETS AND LIABILITIES
DEFERRED TAX ASSETS AND LIABILITIESDEFERRED TAX ASSETS AND LIABILITIES
DEFERRED TAX ASSETS AND LIABILITIES


Recognised deferred tax assets and liabilities
Recognised deferred tax assets and liabilitiesRecognised deferred tax assets and liabilities
Recognised deferred tax assets and liabilities


Deferred tax assets and liabilities are attributable to the following:
In thousands of dollars Group
GroupGroup
Group


Assets
AssetsAssets
Assets

Liabilities
LiabilitiesLiabilities
Liabilities

Net
NetNet
Net


2020
20202020
2020

2019
20192019
2019

2020
20202020
2020

2019
20192019
2019

2020
20202020
2020

2019
20192019
2019


Development property - - (116) (118) (116) (118)
Employee benefits 50 48 - - 50 48
Trade and other payables 7 7 - - 7 7
Net tax assets/(liabilities) 5
55
57
77
7

55
5555
55

(
((
(11
1111
116
66
6)
))
)

(
((
(118
118118
118)
))
)

(
((
(59
5959
59)
))
)

(
((
(63
6363
63)
))
)





Movement
Movement Movement
Movement in deferred tax balances during the year
in deferred tax balances during the yearin deferred tax balances during the year
in deferred tax balances during the year




In thousands of dollars

Group
GroupGroup
Group



Balance 1 Jan
Balance 1 Jan Balance 1 Jan
Balance 1 Jan 2019
20192019
2019


Recognised in profit or
Recognised in profit or Recognised in profit or
Recognised in profit or
loss
lossloss
loss

Balance 31 Dec
Balance 31 Dec Balance 31 Dec
Balance 31 Dec 2019
20192019
2019



Plant and equipment (1) 1 -
Development property (126) 8 (118)
Employee benefits 56 (8) 48
Trade and other payables - 7 7
(
((
(71
7171
71)
))
)

8
88
8

(
((
(63
6363
63)
))
)





Movement in deferred tax balances during the year
Movement in deferred tax balances during the yearMovement in deferred tax balances during the year
Movement in deferred tax balances during the year



In thousands of dollars Group
GroupGroup
Group



Balance 1 Jan
Balance 1 Jan Balance 1 Jan
Balance 1 Jan 2020
20202020
2020


Recognised in profit or
Recognised in profit or Recognised in profit or
Recognised in profit or
loss
lossloss
loss

Balance 31 Dec
Balance 31 Dec Balance 31 Dec
Balance 31 Dec 2020
20202020
2020



Development property (118) 2 (116)
Employee benefits 48 2 50
Trade and other payables 7 - 7
(
((
(63
6363
63)
))
)

4
44
4

(
((
(59
5959
59)
))
)

Page 12
CDL Investments New Zealand Limited
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DL Investments New Zealand LimitedCDL Investments New Zealand Limited
CDL Investments New Zealand Limited


Notes to the Consolidated Financial Statements
For the year ended 31 December 2020

11
1
111
11.
..
.

TRADE AND OTHER RECEIVABLES
TRADE AND OTHER RECEIVABLESTRADE AND OTHER RECEIVABLES
TRADE AND OTHER RECEIVABLES


In thousands of dollars

Group
GroupGroup
Group




2020
20202020
2020

2019
20192019
2019


Trade receivables 86 29
Other receivables and prepayments 3,400 3,903
Trade and other receivables 3,486
3,4863,486
3,486

3,932
3,9323,932
3,932


None of the trade and other receivables are impaired.

Trade and other receivables are stated at their cost less impairment losses. The Group applies the simplified
approach to providing for expected credit losses prescribed by NZ IFRS 9, which permits the use of the
lifetime expected credit loss provision for all trade receivables. The allowance for doubtful debts on trade
receivables are either individually or collective assessed based on number of days overdue. The Group takes
into account the historical loss experience and incorporate forward looking information and relevant
macroeconomic factors.

12
1212
12.
..
.

CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTSCASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS


In thousands of dollars

Group
GroupGroup
Group




2020
20202020
2020

2019
20192019
2019


Bank balances 6,111 3,935
Call deposits 4,000 30,500
Cash and cash equivalents 10,111
10,11110,111
10,111

34,435
34,43534,435
34,435



Cash and cash equivalents comprise cash balances and call deposits with an original maturity of three
months or less.

13
1
313
13.
..
.

CAPI
CAPICAPI
CAPIT
TT
TAL AND RESERVES
AL AND RESERVESAL AND RESERVES
AL AND RESERVES


Share capital
Share capitalShare capital
Share capital




Parent
ParentParent
Parent




2020
20202020
2020

2020
20202020
2020

2019
20192019
2019

2019
20192019
2019


Shares ‘000s
Shares ‘000sShares ‘000s
Shares ‘000s

$000’s
$000’s$000’s
$000’s

Shares ‘000s
Shares ‘000sShares ‘000s
Shares ‘000s

$000’s
$000’s$000’s
$000’s


Shares issued 1 January 278,806 55,374 278,119 54,864
Issued under dividend reinvestment plan 1,629 1,280 687 510
Total shares issued and outstanding 280,43
280,43280,43
280,435
55
5

56,654
56,65456,654
56,654

278,806
278,806278,806
278,806

55,374
55,37455,374
55,374


All shares carry equal rights and rank pari passu with regard to residual assets of the Company and do not
have a par value. At 31 December 2020, the authorised share capital consisted of 280,435,135 fully paid
ordinary shares (2019: 278,805,580).

Dividend Reinvestment Plan
Dividend Reinvestment PlanDividend Reinvestment Plan
Dividend Reinvestment Plan


In 1998, the Company adopted a Dividend Reinvestment Plan pursuant to which shareholders may elect to
receive ordinary dividends in the form of either cash or additional shares in the Company. The additional
shares are issued at the weighted average market price for the shares traded over the first five business days
immediately following the Record Date.

Accordingly, the Company issued 1,629,555 additional shares under the Dividend Reinvestment Plan on 15
May 2020 (2019: 687,093) at a strike price of $0.7854 per share issued (2019: $0.7422).



Dividends
DividendsDividends
Dividends
The following dividends were declared and paid during the year 31 December:
In thousands of dollars

Parent
ParentParent
Parent




2020
20202020
2020

2019
20192019
2019


3.5 cents per qualifying ordinary share (2019: 3.5 cents) 9,758 9,734
9,7
9,79,7
9,758
5858
58

9,734
9,7349,734
9,734


After 31 December 2020 the following dividends were declared by the directors. The dividends have not been
provided for and there are no income tax consequences. It is anticipated that a portion of the dividends
declared will be paid by way of shares through the Dividend Reinvestment Plan.
In thousands of dollars

Parent
ParentParent
Parent


3.5 cents ordinary dividend per qualifying ordinary share 9,815
3.5 cents total dividend per qualifying ordinary share 9,815

Page 13
CDL Investments New Zealand Limited
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DL Investments New Zealand LimitedCDL Investments New Zealand Limited
CDL Investments New Zealand Limited


Notes to the Consolidated Financial Statements
For the year ended 31 December 2020

14
1
414
14.
..
.

EARNINGS PER SHARE
EARNINGS PER SHAREEARNINGS PER SHARE
EARNINGS PER SHARE


Basic and diluted earnings per share
Basic and diluted earnings per shareBasic and diluted earnings per share
Basic and diluted earnings per share


The basic earnings per share and the diluted earnings per share are the same. The calculation of basic and
diluted earnings per share at 31 December 2020 was based on the profit attributable to ordinary shareholders
of $30,099,000 (2019: $34,140,000); and weighted average number of ordinary shares outstanding during
the year ended 31 December 2020 of 279,892,000 (2019: 278,577,000), calculated as follows:
Profit attributable to ordinary shareholders (basic & diluted)
Profit attributable to ordinary shareholders (basic & diluted)Profit attributable to ordinary shareholders (basic & diluted)
Profit attributable to ordinary shareholders (basic & diluted)


In thousands of dollars

Group
GroupGroup
Group




2020
20202020
2020

2019
20192019
2019


Profit for the period 30,099 34,140
Profit attributable to ordinary shareholders 30,099
30,09930,099
30,099

34,140
34,14034,140
34,140


Weighted average number of ordinary shares
Weighted average number of ordinary sharesWeighted average number of ordinary shares
Weighted average number of ordinary shares














Parent
ParentParent
Parent




2020
20202020
2020

2019
20192019
2019


Shares ‘000s
Shares ‘000sShares ‘000s
Shares ‘000s Shares ‘000s
Shares ‘000sShares ‘000s
Shares ‘000s
Issued ordinary shares at 1 January 278,806 278,119
Effect of 1,629,555 shares issued in May 2020 1,086 -
Effect of 687,093 shares issued in May 2019 - 458
Weighted average number of ordinary shares at 31 December 279,892
279,892279,892
279,892

278,577
278,577278,577
278,577





15
1515
15.
. .
.

FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTSFINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS


The Group only holds non-derivative financial instruments which comprise trade and other receivables, cash
and cash equivalents, short term deposits, and trade and other payables.

Non-derivative financial instruments are recognised initially at fair value plus, for instruments not at fair value
through profit or loss, any directly attributable transaction costs. Subsequent to initial recognition non-
derivative financial instruments are measured as described below.

Financial assets are derecognised if the Group’s contractual rights to the cash flows from the financial assets
expire or if the Group transfer the financial asset to another party without retaining control or substantially all
risks and rewards of the asset. Financial liabilities are derecognised if the Group’s obligations specified in
the contract expire or are discharged or cancelled.

Exposure to credit and interest rate risks arises in the normal course of the Group’s business.

Credit risk
Credit riskCredit risk
Credit risk


Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis.
Credit evaluations are performed on all customers requiring credit over a certain amount. The Group does
not require collateral in respect of financial assets.

The key factor in managing risk is that the Certificate of Title is only transferred to the purchaser when all
cash is received in full upon settlement.

The Group’s exposure to credit risk is mainly influenced by its customer base. As such it is concentrated to
the default risk of its industry. However, geographically there is no credit risk concentration.

Cash, cash equivalents, and term deposits are allowed only in liquid securities and only with counterparties
that have a credit rating equal to or better than the Group. Given their high credit ratings, management does
not expect any counterparty to fail to meet its obligations.

At the balance date there were no significant concentrations of credit risk. The maximum exposure to credit
risk is represented by the carrying amount of each financial asset.



In thousands of dollars Group
GroupGroup
Group


Note
NoteNote
Note

2020
20202020
2020

2019
20192019
2019


Financial Assets
Financial AssetsFinancial Assets
Financial Assets


Cash and cash equivalents 12 10,111 34,435
Short term deposits 86,620 19,620
Trade and other receivables 11 3,486 3,932
Financial Liabilities
Financial LiabilitiesFinancial Liabilities
Financial Liabilities


Trade and other payables 3,932 984

Page 14
CDL
C
DL CDL
CDL Investments New Zealand Limited
Investments New Zealand LimitedInvestments New Zealand Limited
Investments New Zealand Limited


Notes to the Consolidated Financial Statements
For the year ended 31 December 2020

15
1
515
15.
. .
.

FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTSFINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS

– continued
Interest rate risk
Interest rate riskInterest rate risk
Interest rate risk


The Group has no exposure to interest rate risk as there are no funding facilities (2019: nil). However, the
Group is exposed to movements in interest rates on short-term investments which is explained in the
Sensitivity analysis. Interest income is earned on the cash and cash equivalent balance and the short term
deposits balance.

Sensitivity analysis
Sensitivity analysisSensitivity analysis
Sensitivity analysis


The Group manages interest rate risk by maximising its interest income through forecasting its cash
requirements and cash inflows. Over the longer-term, however, permanent changes in interest rates will
have an impact on profit.

A decrease of one percentage point in interest rates would have decreased the Group’s profit before income
tax by $579,000 (2019: $299,000) in the current period.

Effective interest and
Effective interest and Effective interest and
Effective interest and repricing analysis
repricing analysisrepricing analysis
repricing analysis


In respect of income earning financial assets, the following tables indicate the effective interest rates at the
balance sheet date and the periods in which they reprice.
Group
GroupGroup
Group

2020
20202020
2020

2019
20192019
2019
In thousands of
dollars

Note
NoteNote
Note

Effective
Effective Effective
Effective
interest
interest interest
interest
rate
raterate
rate
Total
TotalTotal
Total
6
6 6
6
months
months months
months
or less
or lessor less
or less
6
66
6-
--
-12
12 12
12
months
monthsmonths
months
Effective
Effective Effective
Effective
interest
interest interest
interest
rate
raterate
rate
Total
TotalTotal
Total
6
6 6
6
months
months months
months
or less
or lessor less
or less
6
66
6-
--
-12
12 12
12
months
monthsmonths
months

Cash and cash
equivalents 12
0.00%
to
0.62%
10,111

10,111

-

0.00%
to
1.68%
34,435

34,435

-

Short term
deposits
0.50%
to
1.70%
86,620

86,500

120

2.15%
to
3.00%
19,620

19,500

120


96,731
96,73196,731
96,731



96,611
96,61196,611
96,611



120
120120
120




54,055
54,05554,055
54,055



53,935
53,93553,935
53,935



120
120120
120






Liquidity risk
Liquidity riskLiquidity risk
Liquidity risk


Liquidity risk represents the Group’s ability to meet its contractual obligations. The Group evaluates its
liquidity requirements on an ongoing basis. In general, the Group generates sufficient cash flows from its
operating activities to meet its obligations arising from its financial liabilities. It is the Group’s policy to provide
credit and liquidity enhancement only to wholly owned subsidiaries.

The following table sets out the contractual cash flows for all financial liabilities that are settled on a gross
cash flow basis:
Group
GroupGroup
Group

2020
20202020
2020



2019
20192019
2019


In thousands of dollars

Balance
Balance Balance
Balance
Sheet
SheetSheet
Sheet



6 months
6 months 6 months
6 months
or less
or lessor less
or less



6
66
6-
--
-12
12 12
12
months
monthsmonths
months



Balance
Balance Balance
Balance
Sheet
SheetSheet
Sheet



6 months
6 months 6 months
6 months
or less
or lessor less
or less



6
66
6-
--
-12
12 12
12
months
monthsmonths
months



Trade and other payables 3,932 3,932 - 984 984 -
3,932
3,9323,932
3,932

3,932
3,9323,932
3,932

-
--
-

984
984984
984

984
984984
984

-
--
-





Estimation of fair values
Estimation of fair valuesEstimation of fair values
Estimation of fair values


The following summarises the major methods and assumptions used in estimating the fair values of financial
instruments reflected in the above tables.

(a) Cash, accounts receivable, accounts payable and related party receivables. The carrying amount for
these balances approximate their fair value because of the short maturities of these items.

Capital management
Capital managementCapital management
Capital management


The Group’s capital includes share capital and retained earnings.

The Group’s policy is to maintain a strong capital base so as to maintain investor, creditor and market
confidence and to sustain future development of the business. The impact of the level of capital on
shareholders’ return is also recognised and the Group recognises the need to maintain a balance between
the higher returns that might be possible with greater gearing and the advantages and security afforded by a
sound capital position.

The Group is not subject to any external imposed capital requirements.

Page 15
CDL Investments New Zealand Limited
C
DL Investments New Zealand LimitedCDL Investments New Zealand Limited
CDL Investments New Zealand Limited


Notes to the Consolidated Financial Statements
For the year ended 31 December 2020

15
1
515
15.
. .
.

FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTSFINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS

– Capital
Capital Capital
Capital management
managementmanagement
management - continued
The allocation of capital is, to a large extent, driven by optimisation of the return achieved on the capital
allocated.

The Group’s policies in respect of capital management and allocation are reviewed regularly by the Board of
Directors.

There have been no material changes in the Group’s management of capital during the period.

16
1
616
16.
..
.

CAPITAL AND LAND DEVELOPMENT
CAPITAL AND LAND DEVELOPMENT CAPITAL AND LAND DEVELOPMENT
CAPITAL AND LAND DEVELOPMENT COMMITMENTS
COMMITMENTSCOMMITMENTS
COMMITMENTS


As at 31 December 2020, the Group had entered into contractual commitments for development expenditure
and purchases of land. Contractual agreements for the purchase of land are subject to a satisfactory outcome
of the Group's due diligence process, board approval, and OIO approval. Development expenditure
represents amounts contracted and forecast to be incurred in 2021 in accordance with the Group’s
development programme.

In thousands of dollars

Group
GroupGroup
Group






2020
20202020
2020

2019
20192019
2019


Development expenditure 19,696 30,845
Land purchases 56,258 13,631
75,954
75,95475,954
75,954

44,476
44,47644,476
44,476



17.
1
7.17.
17.

RELATED PARTIES
RELATED PARTIESRELATED PARTIES
RELATED PARTIES
Identity of related parties
Identity of related partiesIdentity of related parties
Identity of related parties


The Company has a related party relationship with its subsidiary as well as a fellow subsidiary of its parent
(see Note 18), and with its Directors and executive officers.

Transactions with key management personnel
Transactions with key management personnelTransactions with key management personnel
Transactions with key management personnel


None of the Directors of the Company and their immediate relatives have control of the voting shares of the
Company. Key management personnel include the Board comprising non-executive directors and executive
directors.

The total remuneration and value of other benefits earned by each of the Directors of the Company for the
year ending 31 December 2020 was:

In thousands of dollars

Group
GroupGroup
Group






2020
20202020
2020

2019
20192019
2019


C Sim 35 35
VWE Yeo 30 30
ES Kwek - -
KS Tan - -
R Austin 35 35
J Henderson 30 30
Total for non-executive directors 130 130
BK Chiu - -
Total for executive directors - -
13
1313
130
00
0

13
1313
130
00
0


Non-executive directors receive director’s fees only. The executive directors do not receive remuneration or
any other benefits as a director of the Parent Company or of the Company’s subsidiary.

Total remuneration of non-executive directors is included in “administrative and other expenses” (see Note
3).

Investment in associate
Investment in associateInvestment in associate
Investment in associate
The Company’s subsidiary, CDL Land New Zealand Limited, has a 33.33% investment in Prestons Road
Limited. The principal activities of Prestons Road Limited are as a service provider and in this regard, it is
charged with engaging suitably qualified consultants in fields such as geotechnical engineering, resource
management compliance, subdivision of land, legal and regulatory compliance and related issues.

The associate has no revenue or expenses, therefore the Group’s share of profit in its associate for the year
was nil (2019: nil).

Page 16

CDL Investments New Zealand Limited
C
DL Investments New Zealand LimitedCDL Investments New Zealand Limited
CDL Investments New Zealand Limited


Notes to the Consolidated Financial Statements
For the year ended 31 December 2020

17
1
717
17.
. .
.

RELATED PARTIES
RELATED PARTIESRELATED PARTIES
RELATED PARTIES

–
––
–

Investment in associate
Investment in associateInvestment in associate
Investment in associate

– continued
The net assets of Prestons Road Limited, not adjusted for the percentage ownership held by the Group, is
$6,000 with the Group’s share equal to $2,000. Prestons Road Limited has a 31 March balance date. No
adjustment is made for the difference in balance date of Prestons Road Limited, because it has no profits
to report.

Associates are those entities in which the Group has significant influence, but not control or joint control, over
the financial and operating policies. A joint venture is an arrangement in which the Group has joint control,
whereby the Group has rights to the net assets of the arrangement, rather than rights to its assets and
obligations for its liabilities.

Interests in associates are accounted for using the equity method. They are initially recognised at cost, which
includes transaction costs. Subsequent to initial recognition, the consolidated financial statements include
the Group’s share of the profit or loss and OCI of equity-accounted investees, until the date on which
significant influence or joint control ceases.

When the Group’s share of losses exceeds its interest in an equity accounted investee, the carrying amount
of that interest (including any long-term investments) is reduced to nil and the recognition of further losses is
discontinued except to the extent that the Group has an obligation or has made payments on behalf of the
associate.




18
1818
18.
..
.

GROUP ENTITIES
GROUP ENTITIESGROUP ENTITIES
GROUP ENTITIES
Control of the Group
Control of the GroupControl of the Group
Control of the Group


CDL Investments New Zealand Limited is a subsidiary of Millennium & Copthorne Hotels New Zealand
Limited by virtue of Millennium & Copthorne Hotels New Zealand Limited owning 65.87% (2019: 66.26%) of
the Company and having three out of six of the Directors on the Board. Millennium & Copthorne Hotels New
Zealand Limited is 70.79% (2019: 70.79%) owned by CDL Hotels Holdings New Zealand Limited (computed
on voting shares), which is a wholly owned subsidiary of Millennium & Copthorne Hotels plc in the United
Kingdom. The ultimate holding company is Hong Leong Investment Holdings Pte Ltd in Singapore.

During the year CDL Investments New Zealand Limited has reimbursed its parent, Millennium & Copthorne
Hotels New Zealand Limited, $323,000 (2019: $318,000) for expenses incurred by the parent on behalf of
the Group.

During 2020, CDL Investments New Zealand Limited issued no additional shares (2019: nil) to its parent,
Millennium & Copthorne Hotels New Zealand Limited, under the Dividend Reinvestment Plan (see Note 13).
The total shares on issue to Millennium & Copthorne Hotels New Zealand Limited is 184,724,438 (2019:
184,724,438).

19
1
919
19.
..
.

CONTINGEN
CONTINGENCONTINGEN
CONTINGENT LIABILITIES
T LIABILITIEST LIABILITIES
T LIABILITIES
CDL Investments New Zealand Limited has two bank guarantees in place; the first is a requirement of being
listed on the New Zealand Stock Exchange, and the second as a security to the Auckland Council for
infrastructure development surrounding the Nesdale Pond. The combined maximum value of these
guarantees is $195,000 (2019: $195,000).

© 2021 KPMG, a New Zealand Partnership and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company
limited by guarantee. All rights reserved.

Independent Auditor’s Report
To the shareholders of CDL Investments New Zealand Limited
Report on the audit of the consolidated financial statements
Opinion
In our opinion, the accompanying consolidated
financial statements of CDL Investments New
Zealand Limited (the ’company’) and its subsidiary
(the 'group') on pages 1 to 16:
i. present fairly in all material respects the
Group’s financial position as at 31 December
2020 and its financial performance and cash
flows for the year ended on that date; and
ii. comply with New Zealand Equivalents to
International Financial Reporting Standards and
International Financial Reporting Standards.
We have audited the accompanying consolidated
financial statements which comprise:
— the consolidated statement of financial
position as at 31 December 2020;
— the consolidated statements of
comprehensive income, changes in equity
and cash flows for the year then ended; and
— notes, including a summary of significant
accounting policies and other explanatory
information.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (‘ISAs (NZ)’). We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We are independent of the group in accordance with Professional and Ethical Standard 1 International Code of
Ethics for Assurance Practitioners (Including International Independence Standards) (New Zealand) issued by the
New Zealand Auditing and Assurance Standards Board and the International Ethics Standards Board for
Accountants’ International Code of Ethics for Professional Accountants (including International Independence
Standards) (‘IESBA Code’), and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the IESBA Code.
Our responsibilities under ISAs (NZ) are further described in the auditor’s responsibilities for the audit of the
consolidated financial statements section of our report.
Our firm has also provided other services to the group in relation to taxation compliance and taxation advisory.
Subject to certain restrictions, partners and employees of our firm may also deal with the group on normal terms
within the ordinary course of trading activities of the business of the group. These matters have not impaired our
independence as auditor of the group. The firm has no other relationship with, or interest in, the group.
Materiality
The scope of our audit was influenced by our application of materiality. Materiality helped us to determine the
nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually
and on the consolidated financial statements as a whole. The materiality for the consolidated financial
statements as a whole was set at $2m determined with reference to a benchmark of group profit before tax.
We chose the benchmark because, in our view, this is a key measure of the group’s performance.

18

Key audit matter
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the consolidated financial statements in the current period. We summarise below those matters and our key
audit procedures to address those matters in order that the shareholders as a body may better understand the
process by which we arrived at our audit opinion. Our procedures were undertaken in the context of and solely
for the purpose of our statutory audit opinion on the consolidated financial statements as a whole and we do not
express discrete opinions on separate elements of the consolidated financial statements.
The key audit matter How the matter was addressed in our audit
Capitalisation and Allocation of Development costs
Refer to note 8 of the consolidated financial
statements.
The group’s development property comprises land
and costs incurred to develop land into subdivisions
and individual properties for sale. At 31 December
2020 development properties amounted to $161.4
million representing 62.8% of net assets in the
consolidated statement of financial position.
Determining whether to capitalise or expense costs
relating to development of the land is subjective as it
depends whether the costs enhance the land or
maintain the current value. In addition there is
significant judgement in determining how to allocate
the costs to individual properties.
To assess the capitalisation of development costs we
examined the operating effectiveness of the Group’s
process to capitalise and record development costs.
We then obtained invoices for a sample of capitalised
costs to check whether the nature of the expense met
the capitalisation criteria in the accounting standards.
We found no exceptions.
Our procedures over the allocation of these
development costs involved considering the costs
capitalised to properties sold versus costs capitalised to
the remaining properties in the portfolio, and in
comparison to realised value upon sale. We also
checked for consistency in approach between periods.
The evidence we obtained demonstrated the allocation
of costs was in line with our expectations.
Other information
The Directors, on behalf of the group, are responsible for the other information included in the entity’s Annual
Report. Other information includes the Directors’ review, disclosures relating to corporate governance, the trend
statement and financial summary and the other information included in the Annual Report. Our opinion on the
consolidated financial statements does not cover any other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the consolidated financial statements our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the
consolidated financial statements or our knowledge obtained in the audit or otherwise appears materially
misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have received the Directors’ Review and have nothing
to report in regards to it. The Annual Report is expected to be made available to us after the date of this
Independent Auditor's Report and we will report the matters identified, if any, to those charged with
governance.
Use of this independent auditor’s report
This independent auditor’s report is made solely to the shareholders as a body. Our audit work has been
undertaken so that we might state to the shareholders those matters we are required to state to them in the
independent auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept

19

or assume responsibility to anyone other than the shareholders as a body for our audit work, this independent
auditor’s report, or any of the opinions we have formed.
Responsibilities of the Directors for the consolidated financial
statements
The Directors, on behalf of the company, are responsible for:
— the preparation and fair presentation of the consolidated financial statements in accordance with generally
accepted accounting practice in New Zealand (being New Zealand Equivalents to International Financial
Reporting Standards) and International Financial Reporting Standards;
— implementing necessary internal control to enable the preparation of a consolidated set of financial
statements that is fairly presented and free from material misstatement, whether due to fraud or error; and
— assessing the ability to continue as a going concern. This includes disclosing, as applicable, matters related
to going concern and using the going concern basis of accounting unless they either intend to liquidate or to
cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the consolidated financial
statements
Our objective is:
— to obtain reasonable assurance about whether the consolidated financial statements as a whole are free
from material misstatement, whether due to fraud or error; and
— to issue an independent auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with ISAs NZ will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these
consolidated financial statements.
A further description of our responsibilities for the audit of these consolidated financial statements is located at
the External Reporting Board (XRB) website at:
http://www.xrb.govt.nz/standards-for-assurance-practitioners/auditors-responsibilities/audit-report-1/

This description forms part of our independent auditor’s report.
The engagement partner on the audit resulting in this independent auditor's report is Aaron Woolsey.
For and on behalf of

KPMG
Auckland
17 February 2021