CDI FY2022 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 2022
Previous Reporting Period 12 months to 31 December 2021
Currency NZD

Amount (000s) Percentage change
Revenue from continuing
operations
$67,346 (26.91%)
Total Revenue $67,346 (26.91%)
Net profit/(loss) from
continuing operations
$31,189 (0.24%)
Total net profit/(loss) $31,189 (0.24%)
Interim/Final Dividend
Amount per Quoted Equity
Security
$0.03500000
Imputed amount per Quoted
Equity Security
$0.01361111
Record Date 28 April 2023
Dividend Payment Date 12 May 2023
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$1.07 $1.00
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

16 February 2023

Audited financial statements accompany this announcement.

---

DIRECTORS’ REVIEW

Financial Performance

CDL Investments New Zealand Limited (“CDI”) is pleased to report that the company recorded a profit after tax of $31.2
million in 2022 (2021: $31.3 million). The result reflects both the positive demand and trading environment that was
evident for the majority of 2022 but also shows the impact of the rapid changes seen in the last few months of 2022 with
the rapid rise in interest rates and inflation and the consequential impact on the property markets. CDI achieved a profit
before tax for the year of $43.3
million (2021: $43.4 million). Property sales, rental income & other income totalled $67.3
million (2021: $92.1 million).

At 31 December 2022, CDI’s shareholders’ funds increased to $308.9 million (2021: $286.4 million) and total assets also
increased to $313.7 million (2021: $297.6 million). Net tangible assets per share (at book value) also increased to 107.0
cents (2021: 99.6 cents). The independent market value of CDI’s property holdings as at 31 December 2022, was $405.4
million (2021: $359.7 million) which reflects both the acquisitions made and value added in 2022. At cost, the portfolio
was valued at $239.5 million (2021: $209.1 million) in line with CDI’s accounting policies.


Property Portfolio

CDI acquired a total of 15.8 hectares of land during 2022 in both the Hawkes Bay and Waikato regions. Those
acquisitions were adjacent or close to nearby existing land holdings and will allow the company to add additional stages
or units to future development plans.

CDI’s 2022 result was underpinned by the sale of one of its commercial landholdings in Wiri, South Auckland.
Residential sales were strongest at Prestons Park (Christchurch). Our Kewa Road subdivision (North Shore, Auckland)
is nearly sold out and the first sales at our recently completed residential development in Swanson, West Auckland
settled before the end of 2022. Additional stages are being readied for sale at Swanson and Prestons Park and we
expect these to be sold during the course of the year.

Development consents were submitted for CDI’s projects in the Hawkes Bay in 2022 and good progress is being made
on getting approvals. Work on finalising subdivision infrastructure and house designs is being done now and we expect
to commence works during 2023.

Both of CDI’s warehouses in Wiri, South Auckland were completed during the year and are now occupied. The majority
of the units at the commercial centres located at Prestons Park and Stonebrook have also been let.


Dividend Announcement

The Board has resolved to maintain its fully imputed ordinary dividend at 3.5 cents per share payable on 12 May 2023.
The Board believes the amount is consistent with recent years’ profits while allowing the company to retain enough cash
on hand for additional development work and possible future acquisitions.

The record date will be 28 April 2023. The Dividend Reinvestment Plan will apply to this dividend.


Summary and Outlook

Given the rapid deterioration in the New Zealand property market and business confidence in the last few months of
2022, the Board considers the overall result to be positive and in line with the guidance provided earlier in the year.

2023 will be more challenging and the Board and Management are focused on ensuring that CDI is able to maximise its
sales in the areas where there is still strong demand and to minimize our exposure to costs in regions which are slowing
down.

CDI will continue to look for acquisition opportunities over the course of next year and will also look at new areas for
additional diversification using CDI’s existing land portfolio. With the success of its Wiri warehouses and the commercial
areas at Prestons Park and Stonebrook now mature, CDI is using its experience to look at how and what it can add to
existing and future projects to provide additional amenity value and increased development returns.

CDI will be monitoring the proposed changes to resource management legislation carefully. It is too early to say what
impact the changes will mean for the company and its developments. CDI will continue its dialogue with local authorities
on plan changes and infrastructure issues and to apply for consents under the current regime.

We thank our shareholders for their continued support during 2022 and also take this opportunity to thank our
Management team for another profitable year. The Board was pleased to appoint Jason Adams to the Managing Director
role after BK Chiu’s retirement and was also pleased to promote Jackson Bull to the position of General Manager, CDL
Land New Zealand Limited. We have also been joined by Melissa Crowe who is our Christchurch-based Development
Manager. With a strong and experienced team, the Board believes that the company is in good shape to tackle the
challenges ahead.



Colin Sim
Chairman
16 February 2023

---

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
28/04/2023
Ex-Date (one business day before the
Record Date)
27/04/2023
Payment date (and allotment date for
DRP)
12/05/2023
Total monies associated with the
distribution
1

$10,108,269.40
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
01/05/2023 05/05/2023
Date strike price to be announced (if
not available at this time)
08/05/2023
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
01/05/2023
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

16/02/2023





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

---

16 February 2023



SOLID SALES PROVIDE ANOTHER CONSISTENT PROFIT RESULT
FOR CDL INVESTMENTS NEW ZEALAND

NZX-listed residential property developer CDL Investments New Zealand Limited (NZX: CDI) reported its
results for the year ended 31 December 2022 earlier today.

“Despite market conditions changing radically in the last few months of the year, we’ve been able to record
a consistent profit from a solid level of sales during the year”, said CDI’s Managing Director Jason Adams.

Mr. Adams said that CDI had achieved a lot in 2022 and was looking at additional options to develop and
grow its business.

“We completed our two commercial warehouses in Wiri, South Auckland, which are fully tenanted. The
majority of our commercial units at our Prestons Park and Stonebrook developments in Canterbury are
also tenanted and we have continued to develop additional stages at our residential subdivisions where
demand has been strongest”, he said.

“With that knowledge and experience gained, we are now looking to see where else we can add value and
diversity to our developments”, said Mr. Adams.

CDI’s Board resolved to maintain its dividend at 3.5 cents per share fully imputed which would be paid to
shareholders on 12 May 2023. The Record Date would be 28 April 2023 and the Dividend Reinvestment
Plan would apply.

Speaking to the outlook for 2023, Mr. Adams noted that the environment would be very different.

“It will be challenging but we are prepared for it. In 2023, we will look to make sales where we know that
demand is high and at the same time we will look to develop our pipeline in areas that we expect will recover
the quickest. CDI will also seek out opportunities for future growth and we will be on the lookout for
stakeholders and partners who have the same ethos and values as we have to take things up a level”, he
said.

Summary of results:

• Profit after tax $31.2 million (2021: $31.3 million)
• Profit before tax $43.3 million (2021: $43.4 million)
• Property sales, rental income & other income $67.3 million (2021: $92.1 million)
• Shareholders’ funds $308.9 million (2021: $286.4 million)
• Total assets $313.7 million (2021: $297.6 million)
• Net tangible asset value (at book value) 107.0 cents per share (2021: 99.6cps)
• Earnings per share 10.82 cents per share (2021: 10.96cps)


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:
Jason Adams, Managing Director
(09) 353 5058

---

Page 1
CDL Investments New Zealand Limited
C
DL 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 2022
20222022
2022
Group
GroupGroup
Group


In
thousands of dollars


Note
NoteNote
Note

2022
20222022
2022



2021
20212021
2021



Property sales 65,858 91,893
Rental income from investment properties 1,240 48
Revenue
RevenueRevenue
Revenue

67,098
67,09867,098
67,098 91,941
91,94191,941
91,941
Cost of sales (20,527) (44,902)
Gross
Gross Gross
Gross p
pp
profit
rofitrofit
rofit 4
44
46
66
6,
,,
,571
571571
571

47,039
47,03947,039
47,039


Other income 248 201
Administrative expenses 3, 4 (882)(345)
Property expenses (589)(367)
Selling expenses (1,476) (2,264)
Other expenses 3, 4 (2,211) (1,453)
Results from operating activities
Results from operating activitiesResults from operating activities
Results from operating activities

41,661
41,66141,661
41,661

42,811
42,81142,811
42,811


Finance income 5 1,664 616
Finance costs 5 (7)(4)
Net finance income
Net finance incomeNet finance income
Net finance income

1,657
1,6571,657
1,657

612
612612
612


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

43,318
43,31843,318
43,318

43,423
43,42343,423
43,423


Income tax expense 6 (12,129) (12,159)
Profit for the period
Profit for the periodProfit for the period
Profit for the period

31,189
31,18931,189
31,189

31,264
31,26431,264
31,264


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

31,189
31,18931,189
31,189

31,264
31,26431,264
31,264


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


Equity holders of the parent 31,189 31,264
Total comprehensive income for the period
Total comprehensive income for the periodTotal comprehensive income for the period
Total comprehensive income for the period

31,189
31,18931,189
31,189

31,264
31,26431,264
31,264


Basic and Diluted Earnings per share (cents per share) 13 10.82 10.96
Th
e accompanying notes form part of, and should be read in conjunction with these financial statements.

Page 2
CDL Investments New Zealand Limited
C
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 2022
20222022
2022
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 2021 56,654 200,477 257,131
Total comprehensive
Total comprehensive Total comprehensive
Total comprehensive income for the period
income for the periodincome for the period
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 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 7,800 -7,800
Dividend to shareholders 13

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

221,926
221,926221,926
221,926

286,380
286,380286,380
286,380


Balance at 1 January 2022 64,454 221,926 286,380
Total comprehensive
Total comprehensive Total comprehensive
Total comprehensive income for the period
income for the periodincome for the period
income for the period


Profit for the period -31,18931,189
Total comprehensive income for the period
Total comprehensive income for the periodTotal comprehensive income for the period
Total comprehensive income for the period

-
--
-31,189
31,18931,189
31,18931,189
31,18931,189
31,189


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 1,375 -1,375
Dividend to shareholders 13

-(10,063)(10,063)
Supplementary dividend -(204)(204)
Foreign investment tax credits -
--
-204204
Balance at
Balance at Balance at
Balance at 31 December
31 December 31 December
31 December 2022
20222022
2022 65,829
65,82965,829
65,829

243,052
243,052243,052
243,052

308,881
308,881308,881
308,881


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

Page 3
CDL Investments New Zealand Limited
CDL 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 2022
20222022
2022


Group
GroupGroup
Group


In thousands of dollars
Note
NoteNote
Note

2022
20222022
2022



2021
20212021
2021



SHAREHOLDERS’ EQUITY
Issued capital 13 65,829 64,454
Retained earnings 243,052 221,926
Total Equity
Total EquityTotal Equity
Total Equity

308,881
308,881308,881
308,881

286,380
286,380286,380
286,380


Represented by:
NON CURRENT ASSETS
Property, plant and equipment 98 43
Development property 8 186,728 164,589
Investment property 9 36,381 23,332
Investment in associate 2 2
Total Non Current Assets
Total Non Current AssetsTotal Non Current Assets
Total Non Current Assets 223,209
223,209223,209
223,209

187,966
187,966187,966
187,966


CURRENT ASSETS
Cash and cash equivalents 12 31,667 53,025
Short term deposits 14 40,075 30,000
Trade and other receivables 11 2,327 5,479
Development property 8 16,420 21,152
Total Current Assets
Total Current AssetsTotal Current Assets
Total Current Assets

90,489
90,48990,489
90,489

109,656
109,656109,656
109,656


Total Assets
Total AssetsTotal Assets
Total Assets

313,698
313,698313,698
313,698



297,622
297,622297,622
297,622



NON CURRENT LIABILITIES
Deferred tax liabilities 10 153 74
Lease liability 58 18
Total Non Current liabilities
Total Non Current liabilitiesTotal Non Current liabilities
Total Non Current liabilities 211
211211
211

92
9292
92


CURRENT LIABILITIES
Trade and other payables 1,340 7,297
Employee entitlements 118 71
Income tax payable 3,122 3,771
Lease liability 26 11
Total Current Liabilities
Total Current LiabilitiesTotal Current Liabilities
Total Current Liabilities

4,606
4,6064,606
4,606

11,150
11,15011,150
11,150


Total Liabilities
Total LiabilitiesTotal Liabilities
Total Liabilities

4,817
4,8174,817
4,817

11,242
11,24211,242
11,242


Net Assets
Net AssetsNet Assets
Net Assets

308,881
308,881308,881
308,881

286,380
286,380286,380
286,380


For and on behalf of the Board
D JAMESON, DIRECTOR, 16 February 2023 J ADAMS, MANAGING DIRECTOR, 16 February 2023
The accompanying notes form part of, and should be read in conjunction with these financial statements.

Page 4
CDL Investments New
CDL Investments New CDL Investments New
CDL Investments New Zealand Limited
Zealand LimitedZealand Limited
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 2022
20222022
2022


Group
GroupGroup
Group


In thousands of dollars
Note
NoteNote
Note

2022
20222022
2022



2021
20212021
2021



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


Receipts from customers 70,853 90,011
Interest received 1,309 754
Cash was applied to:
Cash was applied to:Cash was applied to:
Cash was applied to:
Payment to suppliers (22,956) (17,800)
Payment to employees (880)(590)
Purchase of development land (24,607) (56,258)
Income tax paid (12,495) (12,000)
Net Cash Inflow from Operating Activities 11,224
11,22411,224
11,224

4,117
4,1174,117
4,117


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


Short term deposits 30,000 86,620
Cash was applied to:
Cash was applied to: Cash was applied to:
Cash was applied to:


Development of investment property (13,587) (15,594)
Purchase of plant and equipment (4)(3)
Short term deposits (40,075) (30,000)
Net Cash Inflow/(Outflow) from Investing Activities (23,666)
(23,666)(23,666)
(23,666)

41,023
41,02341,023
41,023


CASH FLOWS FROM FINANCING ACTIVITIES
Cash was applied to:
Cash was applied to:Cash was applied to:
Cash was applied to:
Dividend paid (8,668) (2,015)
Principal repayment of lease liability (24)(17)
Supplementary dividend paid (204)(194)
Net Cash Outflow from Financing Activities (
((
(8,916
8,9168,916
8,916)
))
)

(2,226)
(2,226)(2,226)
(2,226)


Net Increase/(Decrease) in Cash and Cash Equivalents (21,358)

42,914

Add Opening Cash and Cash Equivalents 53,025 10,111
Closing Cash and Cash Equivalents
Closing Cash and Cash EquivalentsClosing Cash and Cash Equivalents
Closing Cash and Cash Equivalents

12 31,667
31,66731,667
31,667

53,025
53,02553,025
53,025


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
31 December 31 December
31 December 2022
20222022
2022


Group
GroupGroup
Group


In thousands of dollars Note
NoteNote
Note

2022
20222022
2022



2021
20212021
2021



RECONCILIATION OF PROFIT FOR THE PERIOD TO CASH
FLOWS FROM OPERATING ACTIVITIES
Net Profit after Taxation 31,189

31,264

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


Depreciation of investment property 538 71
Depreciation of plant & equipment 2 2
Depreciation of right-of-use assets 19 13
Income tax expense 6 12,129 12,159
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 3,152 (1,993)
(Increase)/Decrease in development property (17,407) (24,303)
Increase/(Decrease) in payables (5,903) 3,388
Cash generated from operating activities
Cash generated from operating activitiesCash generated from operating activities
Cash generated from operating activities

23
2323
23,
,,
,719
719719
719

16,117
16,11716,117
16,117


Income tax paid (12,495) (12,000)
Cash Inflow from Operating Activities
Cash Inflow from Operating ActivitiesCash Inflow from Operating Activities
Cash Inflow from Operating Activities

11,224
11,22411,224
11,224

4,117
4,1174,117
4,117


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 2022
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 2022 comprises the Company and its
subsidiary (together referred to as the “Group”).
The principal activities of the Group are the development and sale of residential land properties and rental income from
the ownership of development properties and investment properties comprising commercial warehousing and retail
shops.
(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 16 February 2023.
(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 and on a going concern 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.
Intragroup balances and any unrealised gains and losses or income and expenses arising from intragroup
transactions, are eliminated in preparing these consolidated financial statements.

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 2022
Significant accounting policies
Significant accounting policies Significant accounting policies
Significant accounting policies - continued
(
d)
(d)(d)
(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:
Buildings 50 years
Building surfaces and finishes 30 years
Building services 20 - 30 years
Plant and equipment 3 - 10 years
No residual values are ascribed to building surfaces and finishes. Residual values of 10% are ascribed to
building core.
(e)
(e)(e)
(e)Trade and other payables
Trade and other payablesTrade and other payables
Trade and other payables
Trade and other payables are stated at amortised cost.
(
((
(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.
Rental income from investment properties under operating leases is recognised on a straight-line basis over
the term of the lease to the extent that future rental increases are known with certainty.

T
he Group grants deferred settlement terms of up to 12 months on certain sections. The total value of these
deferred settlements amounted to $17 million (2021: $14 million). In some instances the acquirers are
permitted access to the residential sections for building activities prior to settlement. However, the acquirer
does not obtain substantially all of the remaining benefits of the asset until final settlement of the land and the
title has passed.
(
((
(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 2022, and have not been applied in preparing these consolidated financial statements:
•
NZ IFRS 17 Insurance Contracts
•Amendments to NZ IFRS 17
•Disclosure of Accounting Policies (Amendments to NZ IAS 1 and NZ IFRS Practice Statement 2)
•Definition of Accounting Estimate (Amendments to NZ IAS 8)
•Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction (Amendments to NZ
IAS 12 Income Taxes)
•Initial Application of NZ IFRS 17 and NZ IFRS 9 - Comparative Information (Amendments to NZ IFRS
17)
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 2022
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 development properties and investment properties.
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.
There is no disclosure for the operating segments given that the Board of Directors do not review residential
sales results separately from rental results from investment properties.
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 except for a
one off transaction for the sale of an industrial property of $29.0 million.
2.
2.2.
2.ACCOUNTING
ACCOUNTING ACCOUNTING
ACCOUNTING ESTIMATES AND JUDGEMENTS
ESTIMATES AND JUDGEMENTSESTIMATES AND JUDGEMENTS
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
Key sources of estimation Key sources of estimation
Key sources of estimation uncertainty
uncertaintyuncertainty
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 the market value determined by an independent registered
valuer significantly exceeds the carrying value of development properties.
The Group is also exposed to a risk of impairment to investment properties should the carrying value exceed
the market value due to market fluctuations in the value of investment properties. However, there is no
indication of impairment as the market value determined by an independent registered valuer significantly
exceeds the carrying value of investment properties (see Note 9).
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 2022
20222022
2022

2021
20212021
2021


Auditors’ remuneration
-Audit fees88 61
-Tax compliance & tax advisory fees4 4
Depreciation560 86
Directors’ fees17 130 130
Rental payments66 66

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 2022
4.
4.4.
4.PERSONNEL EXPENSES
PERSONNEL EXPENSESPERSONNEL EXPENSES
PERSONNEL EXPENSES
In thousands of dollars Group
GroupGroup
Group


2022
20222022
2022

2021
20212021
2021


Wages and salaries 751 517
Employee related expenses and benefits 121 70
Increase in liability for long-service leave 8 3
880
880880
880

590
590590
590


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


2022
20222022
2022

2021
20212021
2021


Interest income 1,664 616
Finance income 1,664 616
Interest expense (7)(4)
Finance costs (7)(4)
Net finance income 1,657
1,6571,657
1,657

612
612612
612


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

2022
20222022
2022

2021
20212021
2021


Current year 12,050 12,144
12,050 12,144
Deferred tax expense
Deferred tax expenseDeferred tax expense
Deferred tax expense
Origination and reversal of temporary differences 79 15
79 15
Total income tax expense in the statement of comprehensive income 12
1212
12,
,,
,129
129129
129

12
1212
12,
,,
,159
159159
159


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


2022
20222022
2022

2021
20212021
2021


Profit before income tax 43,318 43,423
Income tax using the company tax rate of 28% (2021: 28%) 12,129 12,159
12
1212
12,
,,
,129
129129
129

12,159
12,15912,159
12,159


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.

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 2022
6.
6.6.
6.INCOME TAX EXPENSE
INCOME TAX EXPENSE INCOME TAX EXPENSE
INCOME TAX EXPENSE - continued
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.
7.
7.7.
7.IMPUTATION CREDITS
IMPUTATION CREDITSIMPUTATION CREDITS
IMPUTATION CREDITS
In thousands of dollars Group
GroupGroup
Group


2022
20222022
2022

2021
20212021
2021


Imputation credits available for use in subsequent reporting periods 93,113 84,322
8
8
8
8.
..
.DEVELOPMENT PROPERTY
DEVELOPMENT PROPERTYDEVELOPMENT PROPERTY
DEVELOPMENT PROPERTY
In thousands of dollars
Group
GroupGroup
Group


2022
20222022
2022

2021
20212021
2021


Expected to settle greater than one year 186,728 164,589
Expected to settle within one year 16,420 21,152
Development property 203,148
203,148203,148
203,148

185,741
185,741185,741
185,741


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 (2021: 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.

Page 11
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 2022
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 2021 265 2,873 187 3,325
Additions - 180 15,414 15,494
Transfers from development properties 394 - 4,090 4,484
Balance at 31 December 2021 659 3,053 19,691 23,403
Balance at 1 January 2022 659 3,053 19,691 23,403
Additions - - 13,587 13,587
Transfers between categories - 33,278 (33,278) -
Balance at 31 December 2022 659 36,331 - 36,990
Depreciation and impairment losses
Depreciation and impairment lossesDepreciation and impairment losses
Depreciation and impairment losses


Balance at 1 January 2021 - - - -
Depreciation charge for the year - (71) - (71)
Balance at 31 December 2021 -
--
- (71) -
--
- (71)
Balance at 1 January 2022 -
--
- (71) -
--
- (71)
Depreciation charge for the year - (538) - (538)
Balance at 31 December 2022 -
--
-

(609) -
--
-

(609)
Carrying amounts
Carrying amountsCarrying amounts
Carrying amounts


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

2,982
2,9822,982
2,982

19,691
19,69119,691
19,691

23,332
23,33223,332
23,332


Balance at 1 January 2022 659 2,982 19,691 23,332
Balance at 31 December 2022
Balance at 31 December 2022Balance at 31 December 2022
Balance at 31 December 2022 659
659659
659

35,722
35,72235,722
35,722

-
--
-

36,381
36,38136,381
36,381


Investment properties consist of commercial warehousing at Roscommon Road in Auckland, retail shops at
Prestons Park in Christchurch, 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.
Depreciation on the investment properties is computed by asset classes using the policy disclosed in Note
(d). 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 investment properties held at 31 December 2022 was determined, on an open market
existing use basis, by an independent registered valuer, DM Koomen SPINZ of Extensor Advisory Limited as
$62.6 million.

Page 12
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 2022
10.
10.10.
10.DEFERRED TAX ASSETS AND LIABILITIES
DEFERRED TAX ASSETS AND LIABILITIESDEFERRED TAX ASSETS AND LIABILITIES
DEFERRED TAX ASSETS AND LIABILITIES
Recognised deferred tax assets
Recognised deferred tax assets Recognised deferred tax assets
Recognised deferred tax assets and liabilities
and liabilitiesand liabilities
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


2022
20222022
2022

2021
20212021
2021

2022
20222022
2022

2021
20212021
2021

2022
20222022
2022

2021
20212021
2021


Plant and equipment - - (156)(30)(156)(30)
Development property - - (81)(108)(81)(108)
Employee benefits 84 55 --84 55
Trade and other payables -9---9
Net tax assets/(liabilities) 84
8484
84

64
6464
64

(237)
(237)(237)
(237)(138)
(138)(138)
(138)(153)
(153)(153)
(153)(74)
(74)(74)
(74)
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 2021
Balance 1 Jan 2021Balance 1 Jan 2021
Balance 1 Jan 2021


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

Balance 31 Dec 2021
Balance 31 Dec 2021Balance 31 Dec 2021
Balance 31 Dec 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)


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 2022
Balance 1 Jan 2022Balance 1 Jan 2022
Balance 1 Jan 2022


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

Balance 31 Dec 2022
Balance 31 Dec 2022Balance 31 Dec 2022
Balance 31 Dec 2022



Plant and equipment (30) (126) (156)
Development property (108) 27 (81)
Employee benefits 55 29 84
Trade and other payables 9 (9) -
(74)
(74)(74)
(74)

(79)
(79)(79)
(79)

(153)
(153)(153)
(153)


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


2022
20222022
2022

2021
20212021
2021


Trade receivables 222 94
Other receivables and prepayments 2,105 5,385
Trade and other receivables 2,327
2,3272,327
2,327

5,479
5,4795,479
5,479


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


2022
20222022
2022

2021
20212021
2021


Bank balances 1,667 3,025
Call deposits 30,000 50,000
Cash and cash equivalents 31,667
31,66731,667
31,667

53,025
53,02553,025
53,025


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

Page 13
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 2022
13.
13.13.
13.CAPITAL AND
CAPITAL ANDCAPITAL AND
CAPITAL AND

RESERVES
RESERVESRESERVES
RESERVES
Share capital
Share capitalShare capital
Share capital
Company
CompanyCompany
Company


2022
20222022
2022

2022
20222022
2022

2021
20212021
2021

2021
20212021
2021


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 287,513 64,454 280,435 56,654
Issued under dividend reinvestment plan 1,295 1,375 7,078 7,800
Total shares issued and outstanding 288,808
288,808288,808
288,808

65,829
65,82965,829
65,829

287,513
287,513287,513
287,513

64,454
64,45464,454
64,454


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 2022, the authorised share capital consisted of 288,807,697 fully paid
ordinary shares (2021: 287,513,023).
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 1,294,674 additional shares under the Dividend Reinvestment Plan on 13
May 2022 (2021: 7,077,888) at a strike price of $1.0624 per share issued (2021: $1.1020).
Dividends
D
ividendsDividends
Dividends
The following dividends were declared and paid during the year 31 December 2022:
In thousands of dollars

Company
CompanyCompany
Company


2022
20222022
2022

2021
20212021
2021


3.5 cents per qualifying ordinary share (2021: 3.5 cents) 10,063 9,815
10,063
10,06310,063
10,063

9,815
9,8159,815
9,815


The following dividends were declared by the directors on 9 February 2023. 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

Company
CompanyCompany
Company


3.5 cents ordinary dividend per qualifying ordinary share 10,108
3.5 cents total dividend per qualifying ordinary share 10,108
10,10810,108
10,108


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 2022 was based on the profit attributable to ordinary shareholders
of $31,189,000 (2021: $31,264,000); and weighted average number of ordinary shares outstanding during the
year ended 31 December 2022 of 288,376,000 (2021: 285,154,000), 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


2022
20222022
2022

2021
20212021
2021


Profit for the period 31,189 31,264
Profit attributable to ordinary shareholders 31,189
31,18931,189
31,189

31,264
31,26431,264
31,264


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


Company
CompanyCompany
Company


2022
20222022
2022

2021
20212021
2021


Shares ‘000s
Shares ‘000sShares ‘000s
Shares ‘000s Shares ‘000s
Shares ‘000sShares ‘000s
Shares ‘000s
Issued ordinary shares at 1 January 287,513 280,435
Effect of 1,294,674 shares issued in May 2022 863 -
Effect of 7,077,888 shares issued in May 2021 -4,719
Weighted average number of ordinary shares at 31 December 288,376
288,376288,376
288,376

285,154
285,154285,154
285,154

Page 14
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 2022
13.
13.13.
13.CAPITAL AND RESERVES
CAPITAL AND RESERVES CAPITAL AND RESERVES
CAPITAL AND RESERVES – continued
Earnings per share (basic & diluted)
Earnings per share (basic & diluted)Earnings per share (basic & diluted)
Earnings per share (basic & diluted)
Group
GroupGroup
Group


2022
20222022
2022

2021
20212021
2021


Basic and Diluted Earnings per share (cents per share) 10.82 10.96
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
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 as the Company
spreads the risk by operating in three regions in the North Island and one region in the South Island.
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.
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 (2021: 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 $623,000 (2021: $794,000) in the current period.
In thousands of dollars Group
GroupGroup
Group


Note
NoteNote
Note

2022
20222022
2022

2021
20212021
2021


Financial Assets
Financial AssetsFinancial Assets
Financial Assets


Cash and cash equivalents 12 31,667 53,025
Short term deposits 40,075 30,000
Trade and other receivables 11 2,327 5,479
Financial Liabilities
Financial LiabilitiesFinancial Liabilities
Financial Liabilities


Trade and other payables 1,340 7,297

Page 15
CDL Investments New Zealand
CDL Investments New Zealand CDL Investments New Zealand
CDL Investments New Zealand Limited
LimitedLimited
Limited


Notes to the Consolidated Financial Statements
For the year ended 31 December 2022
14.
14.14.
14.FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS – continued
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

2022
20222022
2022

2021
20212021
2021
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
4.78%
31,667

31,667

-

0.00%
to
0.79%
53,025

53,025

-

Short term
deposits
3.30%
to
5.26%
40,075

35,075

5,000

0.56%
to
1.20%
30,000

20,000

10,000

71,742
71,74271,742
71,742

66,742
66,74266,742
66,742

5,000
5,0005,000
5,000

83,025
83,02583,025
83,025

73,025
73,02573,025
73,025

10,000
10,00010,000
10,000


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

2022
20222022
2022

2021
20212021
2021


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 1,340 1,258 82 7,297 7,297 -
1,340
1,3401,340
1,340

1,258
1,2581,258
1,258

82
8282
82

7,297
7,2977,297
7,297

7,297
7,2977,297
7,297

-
--
-


E
stimation
EstimationEstimation
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
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.

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 2022
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 2022, 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 2023 in accordance with the Group’s development
programme.
In thousands of dollars Group
GroupGroup
Group


2022
20222022
2022

2021
20212021
2021


Development expenditure 21,991 20,858
Land purchases 4,010 20,300
26,001
26,00126,001
26,001

41,158
41,15841,158
41,158


16
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 wholly owned subsidiary, CDL Land New Zealand
Limited, 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 2022 was:
In thousands of dollars Group
GroupGroup
Group


2022
20222022
2022

2021
20212021
2021


Non-executive directors 130 130
Executive directors 233 -
363
363363
363

130
130130
130


N
on-executive directors receive director’s fees only. The executive directors receive short-term employee
benefits which include a base salary and an incentive plan. They do not receive remuneration or any other
benefits as a director of the Company or its subsidiary.
Total remuneration of non-executive directors is included in “administrative and other expenses” (see Note 3)
and total remuneration of executive directors is included in “personnel expenses” (see Note 4).
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 65.99% (2021: 66.29%) of the
Company and having two out of six of the Directors on the Board. Millennium & Copthorne Hotels New Zealand
Limited is 70.79% (2021: 70.79%) owned by CDL Hotels Holdings New Zealand Limited (computed on voting
shares), which is a wholly owned subsidiary of Millennium & Copthorne Hotels Limited 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, $351,000 (2021: $323,000) for shared office expenses incurred by the parent on
behalf of the Group and reimbursed its parent for its portion of insurance premiums of $153,000 (2021:nil). In
addition, the parent purchased $3,000 in tax pool credits from the Group.
During 2022, CDL Investments New Zealand Limited issued no additional shares (2021: 5,866,859) 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
(2021: 190,591,297).

Page 17
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 2022
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 (2021: $75,000).
The Group has been named as respondents in a judicial review proceeding which was brought by the
Applicant, Winton Property Investments Limited, in relation to a decision of the Overseas Investment Office
relating to the Group’s acquisition of land in Havelock North. The Applicant was 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 proceedings, which were advised to
the market on 21 July 2021, were heard in February 2022 and a decision in favour of the respondents was
handed down at the end of March 2022. The Applicant has now filed a notice of appeal and a hearing has
been set down for May 2023 at this stage. The Group will continue to vigorously defend its position and still
considers 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.

© 2023 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 17:
i. present fairly in all material respects the
Group’s financial position as at 31 December
2022 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 2022;
— 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 $2.1 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.

2

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. No Key Audit Matters were identified during the
audit. 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
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 regard 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
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.

3
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
16 February 2023