CDI FY2021 Results Announcement

18 February 2022


CONSISTENCY THE KEY TO CDL INVESTMENTS NEW ZEALAND’S
2021 PROFIT RESULTS

NZX-listed residential property developer CDL Investments New Zealand Limited (NZX: CDI) today reported its results
for the year ended 31 December 2021.

“We are pleased to provide our shareholders with another profitable result which demonstrates consistency of sales and
strategy”, said CDI’s Managing Director Mr. BK Chiu.

“While it might not seem that way to many businesses in other sectors, 2021 was actually quite a positive year for us.
Most of the areas where we have development land were not badly affected by lockdowns or other such restrictions and
as such we were able to get on with developing further sections and literally preparing the ground work for future years.
We also acquired over 69 hectares of land last year”, he said.

“Sales in Auckland at Kewa Road (North Shore), Dominion Road (Papakura) and Prestons Park (Canterbury)
underpinned our performance last year. Both regions will remain strong for the foreseeable future”, said Mr. Chiu.

“As we said in our December update to the market, we have made good progress on our Auckland warehousing projects
and commercial areas in Christchurch. While commercial development is not our core business, we will look to leverage
other similar opportunities around our portfolio if these add value to our existing and future developments and do not
create financial burdens for us”.

CDI’s Board resolved to maintain its dividend at 3.5 cents per share fully imputed which would be paid to shareholders
on 13 May 2022. The Record Date would be 29 April 2022 and the Dividend Reinvestment Plan would apply.

Speaking to the outlook for 2022, Mr. Chiu said that CDI was positioning itself for future growth.

“As a small developer, we need to be absolutely focused on delivering consistent product to our purchasers and results
to our shareholders. We have more sections coming on stream in Auckland very soon and we are pushing ahead with
our Havelock North developments to meet housing demand which is needed now. From where we stand, we expect
2022 to be another positive year for us and we will be doing what we can to put ourselves in the best position to maximise
our sales revenue and our returns”, he said.

Summary of results:

• Profit after tax $31.3 million (2020: $30.1 million)
• Profit before tax $43.4 million (2020: $41.8 million)
• Property sales & other income $92.1 million (2020: $88.8 million)
• Shareholders’ funds $286.4
million (2020: $257.1 million)
• Total assets $297.6 million (2020: $265.0 million)
• Net tangible asset value (at book value) 99.6 cents per share (2020: 91.7cps)
• Earnings per share 10.96 cents per share (2020: 10.75cps)


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
29/04/2022
Ex-Date (one business day before the
Record Date)
28/04/2022
Payment date (and allotment date for
DRP)
13/05/2022
Total monies associated with the
distribution
1

$10,062,955.81
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
02/05/2022 06/05/2022
Date strike price to be announced (if
not available at this time)
09/05/2022
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
02/05/2022
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

18/02/2022





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

---

DIRECTORS’ REVIEW

Financial Performance
The Board of CDL Investments New Zealand Limited (“CDI”) is pleased to report that the company recorded
a profit after tax of $31.3 million in 2021 (2020: $30.1 million). The result reflects another very positive year
of sales despite the ongoing pandemic and reinforces the continued strong demand for high quality
subdivisions.

CDI’s 2021 profit before tax was $43.4 million (2020: $41.8 million). Property sales & other income totaled
$92.1 million (2020: $88.8 million).

At 31 December 2021, CDI’s shareholders’ funds increased to $286.4 million (2020: $257.1 million) and
total assets also increased to $297.6 million (2020: $265.0 million). Net tangible assets per share (at book
value) also increased to 99.6 cents (2020: 91.7 cents).

As at 31 December 2021, the independent market value of CDI’s property holdings was $359.7 million
(2020: $292.8 million) which reflects the acquisitions made in 2021. At cost, the portfolio was valued at
$290.1 million (2020:$164.8 million) in line with CDI’s accounting policies.


Development Portfolio
2021 was a busy and exciting year across CDI’s developments.

In 2021, CDI acquired a total of 69.25 hectares of land in the Hawkes Bay region. Following on from our
December 2021 update, the application for stage 1 resource consent will be submitted to Council in March
2022. Obtaining resource consent will allow stage 1 development works to proceed and we are targeting
completion of those works by March 2023.

We were pleased to have sold all of our available sections at Dominion Road (Papakura, South Auckland)
and are encouraged by the continued demand for sections at our Kewa Road subdivision (North Shore,
Auckland) after completion and titling of the final stage. Our residential development in Swanson, West
Auckland is nearly complete and ready for sale, and has already attracted much interest from potential
buyers. These sections will be sold during the course of 2022.

Also as stated in our December 2021 update, additional stages will be constructed at Prestons Park
(Christchurch) to meet increased demand and these will be sold over the course of 2022 and 2023. We
look forward to the completion and tenanting of the commercial area in Q1 2022 which will add another
income stream for CDI. Prestons Park is and will continue to be a strategically important development for
the company and for Christchurch as a whole.

Additional acquisitions are likely in 2022 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.

In addition, the company has commenced construction of the first of two warehouses at its commercially-
zoned site in Wiri, South Auckland. This is a very positive step for CDI’s diversification strategy with
completion of the first warehouse/office scheduled in May 2022, and the second warehouse scheduled to
be completed in August 2022. Both warehouses are fully leased.

Post balance date, the sale of land at Jerry Green Street, Wiri which we announced in April 2021, settled
in January 2022.

CDI did not apply for assistance from the government Wage Subsidy programme during 2021.


Dividend Announcement

The Board has resolved to maintain its fully imputed ordinary dividend at 3.5 cents per share payable on
13 May 2022. The Board believes the amount is fair and reasonable given the profit achieved and ensures
that CDI has sufficient cash resources to continue its development work and seek additional acquisitions
without taking on debt.

The record date will be 29 April 2022. The Dividend Reinvestment Plan will apply to this dividend.

Summary and Outlook
The Board is pleased with the overall performance and results from 2021. These have also laid the
groundwork for additional stages for sale in the coming twelve months and beyond.

While 2021 was not as disruptive as 2020, the lockdowns, especially in Auckland caused some delays as
consultants and work teams were not able to effectively complete work on sites. Fortunately, time has either
been made up or the effects of the delays did not negatively affect development progress to a material extent.

Over the next two to three years, CDI is in a solid position to balance its returns from its commercial land
holdings and its future residential property development sites. Management will be looking to extract
maximum gains from each and will look at the best possible options including leveraging or sale, if
warranted, so as to ensure it is in a position to acquire new land when the right opportunities emerge.

This year will also see the conclusion of our Managing Director BK Chiu’s time with the company. On behalf
of the Board, I would like to take this opportunity to thank BK for his leadership of CDI over the course of
sixteen-plus years. CDI has come a very long way since he assumed his role and both the Board and
Management are grateful for his stewardship of the company and the results he has helped to achieve.


Colin Sim
Chairman
18 February 2022

---

Results announcement



Results for announcement to the market
Name of issuer CDL Investments New Zealand Limited (CDI)
Reporting Period 12 months to 31 December 2021
Previous Reporting Period 12 months to 31 December 2020
Currency NZD

Amount (000s) Percentage change
Revenue from continuing
operations
$92,142 3.79%
Total Revenue $92,142 3.79%
Net profit/(loss) from
continuing operations
$31,264 3.87%
Total net profit/(loss) $31,264 3.87%
Interim/Final Dividend
Amount per Quoted Equity
Security
$0.03500000
Imputed amount per Quoted
Equity Security
$0.01361111
Record Date 29 April 2022
Dividend Payment Date 13 May 2022
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$1.00 $0.92
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Refer Directors’ 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

18 February 2022

Audited financial statements accompany this announcement.

---

Page 1
CDL Investments New Zealand Limited
CDL 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 2021
31 December 202131 December 2021
31 December 2021
Group
GroupGroup
Group


I
n thousands of dollars


Note
NoteNote
Note

2021
20212021
2021



2020
20202020
2020



Revenue 91,893 88,633
Cost of sales (44,902) (43,290)
Gross Profit
Gross ProfitGross Profit
Gross Profit 46,991
46,99146,991
46,991

45,343
45,34345,343
45,343


Other income 249 145
Administrative expenses 3, 4 (345)(256)
Property expenses (367)(417)
Selling expenses (2,264) (2,541)
Other expenses 3, 4 (1,453) (1,499)
Results from operating activities
Results from operating activitiesResults from operating activities
Results from operating activities

4
44
42
22
2,
,,
,811
811811
811

40,775
40,77540,775
40,775


Finance income 5 616 1,038
Finance costs 5 (4)(2)
Net finance income
Net finance incomeNet finance income
Net finance income

612
612612
612

1,036
1,0361,036
1,036


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

4
44
43,423
3,4233,423
3,423

41,811
41,81141,811
41,811


Income tax expense 6 (12,159) (11,712)
Profit for the period
Profit for the periodProfit for the period
Profit for the period

31,264
31,26431,264
31,264

30,099
30,09930,099
30,099


Total comprehensive income
Total comprehensive income Total comprehensive income
Total comprehensive income for the period
for the periodfor the period
for the period

31,264
31,26431,264
31,264

30,099
30,09930,099
30,099


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


Equity holders of the parent 31,264 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

31,264
31,26431,264
31,264

30,099
30,09930,099
30,099


Earnings per share (cents per share) 13 10.96 10.75
T
he accompanying notes form part of, and should be read in conjunction with these financial statements.

Page 2
CDL Investments New Zealand Limited
CDL 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 2021
31 December 202131 December 2021
31 December 2021
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 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 -30,09930,099
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
30,09930,099
30,09930,099
30,099


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 1,280 -1,280
Dividend to shareholders 13

-(9,758)(9,758)
Supplementary dividend -(286)(286)
Foreign investment tax credits -
--
-286286
Balance at 31 December 2020
Balance at 31 December 2020Balance at 31 December 2020
Balance at 31 December 2020 56,654
56,65456,654
56,654

200,477
200,477200,477
200,477

257,131
257,131257,131
257,131


Balance at 1 January 2021 56,654 200,477 257,131
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 -31,26431,264
Total comprehensive income for the period
Total comprehensive income for the periodTotal comprehensive income for the period
Total comprehensive income for the period

-
--
-31,264
31,26431,264
31,26431,264
31,26431,264
31,264


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 7,800 -7,800
Dividend to shareholders 13

-(9,815)(9,815)
Supplementary dividend -(194)(194)
Foreign investment tax credits -
--
-194194
Balance at
Balance at Balance at
Balance at 31 December 2021
31 December 202131 December 2021
31 December 2021 64,454
64,45464,454
64,454

221,926
221,926221,926
221,926

286,380
286,380286,380
286,380


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

Page 3
CDL Investments New Zealand Limited
CD
L 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 2021
31 December 202131 December 2021
31 December 2021


Group
GroupGroup
Group


In thousands of dollars
Note
NoteNote
Note

2021
20212021
2021



2020
20202020
2020



SHAREHOLDERS’ EQUITY
Issued capital 13 64,454 56,654
Retained earnings 221,926 200,477
Total Equity
Total EquityTotal Equity
Total Equity

286,380
286,380286,380
286,380

257,131
257,131257,131
257,131


Represented by:
NON CURRENT ASSETS
Property, plant and equipment 43 23
Development property 8 164,589 119,096
Investment property 9 23,332 3,325
Investment in associate 2 2
Total Non Current Assets
Total Non Current AssetsTotal Non Current Assets
Total Non Current Assets 187,966
187,966187,966
187,966

122,446
122,446122,446
122,446


CURRENT ASSETS
Cash and cash equivalents 12 53,025 10,111
Short term deposits 14 30,000 86,620
Trade and other receivables 11 5,479 3,486
Development property 8 21,152 42,342
Total Current Assets
Total Current AssetsTotal Current Assets
Total Current Assets

109,656
109,656109,656
109,656

142,559
142,559142,559
142,559


Total Assets
Total AssetsTotal Assets
Total Assets

297,622
297,622297,622
297,622



265,005
265,005265,005
265,005



NON CURRENT LIABILITIES
Deferred tax liabilities 10 74 59
Lease liability 18 3
Total Non Current liabilities
Total Non Current liabilitiesTotal Non Current liabilities
Total Non Current liabilities 92
9292
92

62
6262
62


CURRENT LIABILITIES
Trade and other payables 7,297 3,932
Employee entitlements 71 52
Income tax payable 3,771 3,821
Lease liability 11 7
Total Current Liabilities
Total Current LiabilitiesTotal Current Liabilities
Total Current Liabilities

11,150
11,15011,150
11,150

7,812
7,8127,812
7,812


Total Liabilities
Total LiabilitiesTotal Liabilities
Total Liabilities

11,242
11,24211,242
11,242

7,874
7,8747,874
7,874


Net Assets
Net AssetsNet Assets
Net Assets

286,380
286,380286,380
286,380

257,131
257,131257,131
257,131


For and on behalf of the Board
D JAMESON, DIRECTOR, 18 February 2022 BK CHIU, MANAGING DIRECTOR, 18 February 2022
The accompanying notes form part of, and should be read in conjunction with these financial statements.

Page 4
CDL Investments New Zealand Limited
CDL 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 2021
31 December 202131 December 2021
31 December 2021


Group
GroupGroup
Group


In thousands of dollars
Note
NoteNote
Note

2021
20212021
2021



2020
20202020
2020



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


Receipts from customers 90,011 89,391
Interest received 754 871
Cash was applied to:
Cash was applied to:Cash was applied to:
Cash was applied to:
Payment to suppliers (17,800) (21,979)
Payment to employees (590)(546)
Purchase of development land (56,258) (1,260)
Income tax paid (12,000) (11,690)
Net Cash Inflow from Operating Activities 4,117
4,1174,117
4,117

54,787
54,78754,787
54,787


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


Short term deposits 86,620 19,620
Cash was applied to:
Cash was applied to: Cash was applied to:
Cash was applied to:


Development of investment property (15,594) (3,325)
Purchase of plant and equipment (3)(6)
Short term deposits (30,000) (86,620)
Net Cash Inflow/(Outflow) from Investing Activities 41,023
41,02341,023
41,023

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


CASH FLOWS FROM FINANCING ACTIVITIES
Cash was applied to:
Cash was applied to:Cash was applied to:
Cash was applied to:
Dividend paid (2,015) (8,478)
Principal repayment of lease liability (17)(16)
Supplementary dividend paid (194)(286)
Net Cash Outflow from Financing Activities (2,226)
(2,226)(2,226)
(2,226)

(8,780)
(8,780)(8,780)
(8,780)


Net Increase/(Decrease) in Cash and Cash Equivalents 42,914

(24,324)

Add Opening Cash and Cash Equivalents 10,111 34,435
Closing Cash and Cash Equivalents
Closing Cash and Cash EquivalentsClosing Cash and Cash Equivalents
Closing Cash and Cash Equivalents

12 53,025
53,02553,025
53,025

10,111
10,11110,111
10,111


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

Page 5
CDL Investments New Zealand Limited
CDL 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 2021
31 December 202131 December 2021
31 December 2021


Group
GroupGroup
Group


In thousands of dollars Note
NoteNote
Note

2021
20212021
2021



2020
20202020
2020



RECONCILIATION OF PROFIT FOR THE PERIOD TO CASH
FLOWS FROM OPERATING ACTIVITIES
Net Profit after Taxation 31,264

30,099

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


Depreciation of investment property 71 -
Depreciation of plant & equipment 2 1
Depreciation of right-of-use assets 13 14
Income tax expense 6 12,159 11,712
Transfer of development properties to investment properties 9 (4,484) -
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 (1,993) 446
(Increase)/Decrease in development property (24,303) 21,241
Increase in payables 3,388 2,964
Cash generated from operating activities
Cash generated from operating activitiesCash generated from operating activities
Cash generated from operating activities

16,117
16,11716,117
16,117

66,477
66,47766,477
66,477


Income tax paid (12,000) (11,690)
Cash Inflow from Operating Activities
Cash Inflow from Operating ActivitiesCash Inflow from Operating Activities
Cash Inflow from Operating Activities

4,117
4,1174,117
4,117

54,787
54,78754,787
54,787


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

Page 6
CDL Investments New Zealand Limited
CDL 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 2021
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIESSIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES


R
EPORTING 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 2021 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 18 February 2022.
(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
Trade and other Trade and other
Trade and other payables
payablespayables
payables
Trade and other payables are stated at cost.

Page 7
CDL Investments New Zealand Limited
CDL 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 2021
Significant accounting policies
Significant 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 2021, and have not been applied in preparing these consolidated financial statements:
•
Onerous Contracts – Cost of Fulfilling a Contract (Amendments to NZ IAS 37)
•Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to NZ IAS
12)
•COVID-19 Related Rent Concessions beyond 30 June 2021 (Amendment to NZ IFRS 16)
•Annual Improvements to IFRS Standards 2018-2020
•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
•Disclosure of Accounting Policies (Amendments to NZ IAS 1 and NZ IFRS Practice Statement 2)
•Definition of Accounting Estimates (Amendments to NZ IAS 8)
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
CDL 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 2021
1.
1.1.
1.S
SS
SEGMENT REPORTING
EGMENT REPORTINGEGMENT REPORTING
EGMENT REPORTING
Operating
Operating Operating
Operating segments
segmentssegments
segments
The operating segments of the Group consists of property operations, comprising the development and sale
of residential land sections and rental income from investment properties. There is no segmental disclosure
for the rental activity from investment properties as the results are not material for the year.
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 e
Key sources of eKey sources of e
Key sources of estimation uncertainty
stimation uncertaintystimation uncertainty
stimation 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 exceeds the market value due to market fluctuations in the value of development properties.
However, there is no indication of impairment as the market value determined by an independent registered
valuer significantly exceeds the carrying value of development properties.
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 2021
20212021
2021

2020
20202020
2020


Auditors’ remuneration
-Audit fees61 55
-Tax compliance & tax advisory fees4 4
Depreciation86 15
Directors’ fees17 130 130
Rental payments66 66
4.
4.4.
4.PERSONNEL EXPENSES
PERSONNEL EXPENSESPERSONNEL EXPENSES
PERSONNEL EXPENSES
In thousands of dollars Group
GroupGroup
Group


2021
20212021
2021

2020
20202020
2020


Wages and salaries 517 480
Employee related expenses and benefits 70 64
Increase in liability for long-service leave 3 2
590
590590
590

546
546546
546


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
CDL 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 2021
5.
5.5.
5.NET FINANCE INCOME
NET FINANCE INCOMENET FINANCE INCOME
NET FINANCE INCOME
In thousands of dollars Group
GroupGroup
Group


2021
20212021
2021

2020
20202020
2020


Interest income 616 1,038
Finance income 616 1,038
Interest expense (4)(2)
Finance costs (4)(2)
Net finance income 612
612612
612

1,036
1,0361,036
1,036


Finance income comprises interest receivable on funds invested that are recognised in 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
66
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

2021
20212021
2021

2020
20202020
2020


Current year 12,144 11,711
Adjustments for prior years -5
12,144 11,716
Deferred tax expense
Deferred tax expenseDeferred tax expense
Deferred tax expense
Origination and reversal of temporary differences 15 (4)
15 (4)
Total income tax expense in the statement of comprehensive income 12,159
12,15912,159
12,159

11,712
11,71211,712
11,712


R
econciliation 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


2021
20212021
2021

2020
20202020
2020


Profit before income tax 43,423 41,811
Income tax using the company tax rate of 28% (2020: 28%) 12,159 11,707
Adjusted for:
Under provided in prior years -5
12,159
12,15912,159
12,159

11,712
11,71211,712
11,712


Effective tax rate 28%
28%28%
28%

28%
28%28%
28%


I
ncome 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
CDL 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 2021
7.
7.7.
7.IMPUTATION CREDITS
IMPUTATION CREDITSIMPUTATION CREDITS
IMPUTATION CREDITS
In thousands of dollars Group
GroupGroup
Group


2021
20212021
2021

2020
20202020
2020


Imputation credits available for use in subsequent reporting periods 84,322 75,946
8
88
8.
..
.DEVELOPMENT PROPERTY
DEVELOPMENT PROPERTYDEVELOPMENT PROPERTY
DEVELOPMENT PROPERTY
In thousands of dollars
Group
GroupGroup
Group


2021
20212021
2021

2020
20202020
2020


Expected to settle greater than one year 164,589 119,096
Expected to settle within one year 21,152 42,342
Development property 185,74
185,74185,74
185,741
11
1

161,438
161,438161,438
161,438


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 (2020: 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.
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
Balance at 1 January 2021 265 2,873 187 3,325
Acquisitions - 180 15,414 15,594
Transfers from development properties 394 - 4,090 4,484
Balance at 31 December 2021 659 3,053 19,691 23,403
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 -
--
- -
--
- -
--
- -
--
-
Balance at 1 January 2021 - - - -
Depreciation charge for the year - (71) - (71)
Balance at 31 December 2021 -
--
-

(71) -
--
-

(71)
Carrying amounts
Carrying amountsCarrying amounts
Carrying 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


Balance at 1 January 2021 265 2,873 187 3,325
Balance at 31 December 2021
Balance at 31 December 2021Balance at 31 December 2021
Balance at 31 December 2021 659
659659
659

2,892
2,8922,892
2,892

19,691
19,69119,691
19,691

23,332
23,33223,332
23,332

Page 11
CDL Investments
CDL InvestmentsCDL Investments
CDL Investments

New Zealand Limited
New Zealand LimitedNew Zealand Limited
New Zealand Limited


Notes to the Consolidated Financial Statements
For the year ended 31 December 2021
9.
9.9.
9.INVESTMENT PROPERTY
INVESTMENT PROPERTYINVESTMENT PROPERTY
INVESTMENT PROPERTY

- continued
Investment properties consist of commercial warehousing at Roscommon Road in Auckland, retail shops at
Prestons Park in Christchurch, of which both are under construction at balance date, and retail shops at
Stonebrook in Rolleston which are fully operational.
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.
1
1
1
10
00
0.
..
.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


2021
20212021
2021

2020
20202020
2020

2021
20212021
2021

2020
20202020
2020

2021
20212021
2021

2020
20202020
2020


Plant and equipment - - (30)-(30)-
Development property - - (108)(116)(108)(116)
Employee benefits 55 50 --55 50
Trade and other payables 9 7 --9 7
Net tax assets/(liabilities) 64
6464
64

57
5757
57

(1
(1(1
(138
3838
38)
))
)(116)
(116)(116)
(116)(
((
(74
7474
74)
))
)(59)
(59)(59)
(59)
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)
(63)(63)
(63)

4
44
4

(59)
(59)(59)
(59)


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 2021
20212021
2021


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 2021
20212021
2021



Plant and equipment - (30) (30)
Development property (116) 8 (108)
Employee benefits 50 5 55
Trade and other payables 7 2 9
(59)
(59)(59)
(59)

(15)
(15)(15)
(15)

(74)
(74)(74)
(74)


11.
11.11.
11.TRADE AND OTHER RECEIVABLES
TRADE AND OTHER RECEIVABLESTRADE AND OTHER RECEIVABLES
TRADE AND OTHER RECEIVABLES
In thousands of dollars

Group
GroupGroup
Group


2021
20212021
2021

2020
20202020
2020


Trade receivables 94 86
Other receivables and prepayments 5,385 3,400
Trade and other receivables 5,479
5,4795,479
5,479

3,486
3,4863,486
3,486


N
one of the trade and other receivables are impaired.

Page 12
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 2021
11.
11.11.
11.TRADE AND OTHER RECEIVABLES
TRADE AND OTHER RECEIVABLESTRADE AND OTHER RECEIVABLES
TRADE AND OTHER RECEIVABLES

-
--
-

continued
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


2021
20212021
2021

2020
20202020
2020


Bank balances 3,025 6,111
Call deposits 50,000 4,000
Cash and cash equivalents 53,025
53,02553,025
53,025

10,111
10,11110,111
10,111


Ca
sh and cash equivalents comprise cash balances and call deposits with an original maturity of three
months or less.
13
1313
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


2021
20212021
2021

2021
20212021
2021

2020
20202020
2020

2020
20202020
2020


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 280,435 56,654 278,806 55,374
Issued under dividend reinvestment plan 7,078 7,800 1,629 1,280
Total shares issued and outstanding 287,513
287,513287,513
287,513

64,454
64,45464,454
64,454

280,435
280,435280,435
280,435

56,654
56,65456,654
56,654


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 2021, the authorised share capital consisted of 287,513,023 fully paid
ordinary shares (2020: 280,435,135).
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 7,077,888 additional shares under the Dividend Reinvestment Plan on 14
May 2021 (2020: 1,629,555) at a strike price of $1.1020 per share issued (2020: $0.7854).
Dividends
DividendsDividends
Dividends
The following dividends were declared and paid during the year 31 December:
In thousands of dollars

Parent
ParentParent
Parent


2021
20212021
2021

2020
20202020
2020


3.5 cents per qualifying ordinary share (2020: 3.5 cents) 9,815 9,758
9,815
9,8159,815
9,815

9,758
9,7589,758
9,758


Af
ter 31 December 2021 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 10,063
3.5 cents total dividend per qualifying ordinary share 10,063

Page 13
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 2021
13.
13.13.
13.CAPITAL AND RESERVES
CAPITAL AND RESERVESCAPITAL AND RESERVES
CAPITAL AND RESERVES

–
––
–

continued
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 2021 was based on the profit attributable to ordinary shareholders
of $31,264,000 (2020: $30,099,000); and weighted average number of ordinary shares outstanding during the
year ended 31 December 2021 of 285,154,000 (2020: 279,892,000), 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


2021
20212021
2021

2020
20202020
2020


Profit for the period 31,264 30,099
Profit attributable to ordinary shareholders 31,264
31,26431,264
31,264

30,099
30,09930,099
30,099


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


2021
20212021
2021

2020
20202020
2020


Shares ‘000s
Shares ‘000sShares ‘000s
Shares ‘000s Shares ‘000s
Shares ‘000sShares ‘000s
Shares ‘000s
Issued ordinary shares at 1 January 280,435 278,806
Effect of 7,077,888 shares issued in May 2021 4,719 -
Effect of 1,629,555 shares issued in May 2020 -1,086
Weighted average number of ordinary shares at 31 December 285,154
285,154285,154
285,154

279,892
279,892279,892
279,892


14
1414
14.
..
.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 t
he 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.
In thousands of dollars Group
GroupGroup
Group


Note
NoteNote
Note

2021
20212021
2021

2020
20202020
2020


Financial Assets
Financial AssetsFinancial Assets
Financial Assets


Cash and cash equivalents 12 53,025 10,111
Short term deposits 30,000 86,620
Trade and other receivables 11 5,479 3,486
Financial Liabilities
Financial LiabilitiesFinancial Liabilities
Financial Liabilities


Trade and other payables 7,297 3,932

Page 14
CD
C
DCD
CDL Investments New Zealand Limited
L Investments New Zealand LimitedL Investments New Zealand Limited
L Investments New Zealand Limited


Notes to the Consolidated Financial Statements
For the year ended 31 December 2021
14
1414
14.
..
.FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTSFINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS

– Credit risk
Credit riskCredit risk
Credit risk – continued
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.
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 (2020: 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 an
Sensitivity anSensitivity an
Sensitivity analysis
alysisalysis
alysis


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 $794,000 (2020: $579,000) in the current period.
Effective interest and repricing analysis
Effective interest and repricing analysisEffective interest and repricing analysis
Effective interest and 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

2021
20212021
2021

2020
20202020
2020
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
1212
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
1212
12
months
monthsmonths
months

Cash and cash
equivalents 12
0.00%
to
0.79%
53,025

53,025

-

0.00%
to
0.62%
10,111

10,111

-

Short term
deposits
0.56%
to
1.20%
30,000

20,000

10,000

0.50%
to
1.70%
86,620

86,500

120

83,025
83,02583,025
83,025

73,025
73,02573,025
73,025

10,000
10,00010,000
10,000

54,055
54,05554,055
54,055

53,935
53,93553,935
53,935

120
120120
120


Li
quidity 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

2021
20212021
2021

2020
20202020
2020


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
1212
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
1212
12
months
monthsmonths
months



Trade and other payables 7,297 7,297 - 3,932 3,932 -
7,297
7,2977,297
7,297

7,297
7,2977,297
7,297

-
--
-

3,932
3,9323,932
3,932

3,932
3,9323,932
3,932

-
--
-


Estimation
Estimation Estimation
Estimation of fair values
of fair valuesof fair values
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

Page 15
CDL Investments New Zealand Limited
CDL 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 2021
14
1414
14.
..
.FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS – Capital management
Capital managementCapital management
Capital management - continued
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.
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.
15
1515
15.
..
.CAPITAL AND LAND DEVELOPMENT COMMITMENTS
CAPITAL AND LAND DEVELOPMENT COMMITMENTSCAPITAL AND LAND DEVELOPMENT COMMITMENTS
CAPITAL AND LAND DEVELOPMENT COMMITMENTS
As at 31 December 2021, 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


2021
20212021
2021

2020
20202020
2020


Development expenditure 20,858 19,696
Land purchases 20,300 56,258
41,158
41,15841,158
41,158

75,954
75,95475,954
75,954


1
6
1616
16.
..
.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 17), 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 2021 was:
In thousands of dollars Group
GroupGroup
Group


2021
20212021
2021

2020
20202020
2020


C Sim 35 35
VWE Yeo 30 30
ES Kwek - -
KS Tan - -
R Austin (retired: 25 May 2021) 15 35
D Jameson (appointed: 1 May 2021) 20 -
J Henderson 30 30
Total for non-executive directors 130 130
BK Chiu - -
Total for executive directors - -
130
130130
130

130
130130
130


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).

Page 16
CDL Investments New Zealand Limited
CDL 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 2021
17
1717
17.
..
.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 66.29% (2020: 65.87%) of the
Company and having three out of six of the Directors on the Board. Millennium & Copthorne Hotels New
Zealand Limited is 70.79% (2020: 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 (2020: $323,000) for expenses incurred by the parent on behalf of the
Group.
During 2021, CDL Investments New Zealand Limited issued 5,866,859 additional shares (2020: 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 190,591,297
(2020: 184,724,438).
18
1818
18.
..
.CONTINGENT LIABILITIES
CONTINGENT LIABILITIESCONTINGENT LIABILITIES
CONTINGENT LIABILITIES
CDL Investments New Zealand Limited has a bank guarantee in place as a requirement of being listed on the
New Zealand Stock Exchange. The maximum value of this guarantee is $75,000 (2020: $195,000).
The Group has been named as respondents in a High Court judicial review proceeding which has been brought
by the Applicant, Winton Property Investments Limited, in relation to a recent decision relating to the Group’s
acquisition of land in Havelock North which was advised to the market on 21 July 2021 and which has settled.
The Applicant is seeking, inter alia, an order setting aside the decision of the Overseas Investment Office in
respect of the approval and/or a declaration that Ministers erred at law in making their decision to grant
consent. The Group will vigorously defend its position and consider the likelihood of the applicant being
successful as low. It is not possible to determine what the financial effect would be, if any, should the
application be successful.

© 2022 KPMG, a New Zealand Partnership and a member firm of the KPMG global organisation 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 subsidiaries
(the 'group') on pages 1 to 16:
i. present fairly in all material respects the Group’s
financial position as at 31 December 2021 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 2021;
— the consolidated statement 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 $2 million 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 matters
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 2021 development properties
amounted to $185.7 million representing 64.8%
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 Director’s 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.

19
Use of this independent auditor’s r eport
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 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
18 February 2022