CDI 2024 ASM Slides and Speech Notes

Level 7, 23 Customs Street East
P. O. Box 3248, Auckland 1140, New Zealand
Ph (09) 353 5005 Fax (09) 309 3244 Email: admin@cdli.co,nz
S T O C K E X C H A N G E A N N O U N C E M E N T

Date 28 May 2024

Subject REMARKS BY CDI BOARD CHAIR TO 2024 ANNUAL MEETING OF
SHAREHOLDERS

On behalf of the Directors, I present the Annual Report and the Statement of Financial Accounts to 31
December 2023. I would like to make a few brief comments about the past year.

While our profit after tax for 2023 was not as high as previous years, the company used the period to
build a platform for future growth.

With the purchase of 48.3 hectares of land across various regions in New Zealand, which includes
what we settled earlier this year, CDI has additional potential for short and medium-term development
and sales.

These acquisitions will be new projects, not associated with existing ones, and broadens our reach to
ensure that we have a future development pipeline.

Jason will speak to our projects in more detail in his presentation but I do want to highlight the progress
we have made with our Iona Block development in Havelock North.

I am pleased to confirm that we will be starting off-the-plan sales towards the end of Q2 this year with
those sales continuing into Q3 and Q4 of this year. The Hastings District and Hawkes Bay Regional
Councils are currently processing the Stage 2 resource consent, which is expected to be granted later
in the year allowing us to commence development works in Q4 of this year.

This good news along with our unconditional sales in-hand and a positive shift in sales in the first half
of the year (to date) from Prestons Park will ensure that our 2024 result will be better than our 2023
result, and will allow sales momentum from the Iona Block to be carried in to our 2025 results.

In the annual report, we noted that interesting opportunities continue to come through to us. That
continues to be the case and the Management team has considered a number of opportunities already
this year.

Given that the Board invested a good deal of time reviewing and redefining CDI’s strategy for the
medium term, we will continue to be prudent with our acquisitions and only acquire what we think will
deliver appropriate returns for shareholders.

Again, Jason will provide you with an overview of the future strategic direction we are looking to put in
place. The Board and Management are absolutely united on the way forward and we are excited as to
what CDL Investments can become over the coming years.

I would also like to update shareholders on our wider governance review. While we previously
indicated that we were looking to appoint a new independent director prior to this annual meeting, we
are still in the recruitment phase and speaking to potential candidates. The board has not made any
decision on who to appoint at this stage.

As you will appreciate, we want to appoint someone with suitable skills and expertise and the Board will
make an announcement when we have finalised an appointment.

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1
TRUSTEDINNOVATIVE
RELIABLEDELIVERY
40
th
Annual Meeting of Shareholders
Tuesday 28
th
May 2024
WELCOME
to this Hybrid Meeting
This meeting is being held in person and is being webcast
The Meeting Chair is Desleigh Jameson│Independent Director
Directors attending in person are;
John Henderson
(Audit Committee Chair)
│ Independent Director
Eik Sheng Kwek │ Non-Executive Director
Vincent Yeo │ Non-Executive Director
Executive Team in attendance include;
Jason Adams│ Chief ExecuƟve Officer
Boon Pua│ Vice President Finance
Jackson Bull│ General Manager
Takeshi Ito│ Company Secretary/Legal Counsel
2
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Shareholder & Proxyholder Voting
Quorum
Proxies
Minutes of the 39
th
Annual Meeting of
Shareholders
Notice of Meeting taken as read
5
Annual Report & Financial Statements
While our profit after tax for 2023 was not as high as previous years,
thecompanyusedtheperiodtobuildaplatformforfuturegrowth
Withthelandpurchasesin2023and2024,CDIhasadditionalpotential
forshortandmedium-termdevelopmentandsales
Newprojectsbroadenourreachandourfuturedevelopmentpipeline
IonaBlock:wewillbestartingoff-the-plansalestowardstheendofQ2
thisyear
Councils are currently processing the Iona Stage 2 resource consent.
Whengranted,itwillallowustocommencedevelopmentworksinQ4
ofthisyear
Our2024resultwillbebetterthanour2023result,andwillallowsales
momentumtobecarriedintoour2025results
6
12
34
56

2
Annual Report & Financial Statements
(cont.)
In the annual report, we noted that interesting opportunities
continue to come through to us. Management team has considered
a number of opportunities already this year
We will continue to be prudent with our acquisitions and only
acquire what we think will deliver appropriate returns for
shareholders
Post strategic review, the Board and Management are absolutely
united on the way forward and we are excited as to what CDL
Investments can become in the future
7
Chief Executive Officer
Jason Adams
Property Sales
Residential Sales
Commercial Sales
Total Sales Revenue
Rental Income
Rental Income
Profit Before Tax
Profit After Tax
$24.6m
56.8%

18.7
$17.8m
56.7%

13.5
2023
($m)
$8.8m
23.8%

28.1
NIL
#Sections
27
53
NIL
2022
($m)
36.9
29.0
#Sections
80
1
($m)
$1.3m
107%

2.49
#Properties
4
($m)
1.2
#Properties
4
$37.8m
57.3%

28.1 65.9
2023 Financial Re-cap
43.3
31.2
9
53
Residential Section Sales from:
2023 Financial Re-cap (Cont...)
Tram Valley Road,Swanson
12 Section Sales
KewaRoad,Auckland
10 Section Sales
PrestonsPark, Christchurch
31 Section Sales
Commercial Warehouses
FY(2023):
Lease Revenue: $1.87m
% Total Investment
Property Revenue 77%
NLA:16,402m
2
% Leased: 100%
WALE (Years):5.92
Full Occupied Rental: $2.2m
2023 Financial Re-cap
(Cont...)
Suburban Retail Centres
FY(2023):
Lease Revenue: $0.58m
% Total Investment
Property Revenue 23%
NLA:3,411m
2
% Leased: 66.6%
WALE (Years): 4.92
Estimated Full
Occupied Rental: $1.25m
Prestons Park Local Centre
Stonebrook Park Local Centre
2023 Financial Re-cap
(Cont...)
78
910
1112

3
NZ Property Market Drivers in 2023
High Inflation:
High Mortgage Rates:
Inflation Q1(24) = 4.0%

2.7% Q1(23)
Inflation Q1(23):
6.7%
Pre-COVID Pandemic (Feb-20):
2.5%
Pandemic Low (Sept-21):
1.5%
Post Pandemic Peak (Jun-22)
7.3%
5 Year
(%)
2 Year
(%)
1 Year
(%)
Floating
%
Bank
7.346.797.148.64
6.396.757.148.64
6.556.797.248.69
6.396.757.248.64
6.506.496.688.24
Average
Rates 1 Year
Earlier
Bank Interest Rate (%) as at 13/05/24
Global Financial Crisis Covid-19 Pandemic
Potential Peak
Source: Interest.co.nz as at 13/05/2024
Source: RBNZ
Source: RBNZ
13
Consumer Price Index (CPI) (Annual % Change)
Banks Mortgage rates –Floating and 2 year fixed
NZ Property Market Drivers in 2023
(Cont...)
Highmortgageratesimpactedpurchasers'ability to
securebankmortgagefinancetopurchasesections
Building costs remain high and are impacting
purchasers' decision to build
Increasing existing housing supply is providing
purchasers with more choice and options
Market conditions causing some purchasers to
“sit on their hands” and wait for more favourable
conditions, expected in late 2024, early 2025
14
Market Peak
Nov 2021
$920,000
Global Financial Crisis Covid-19 Pandemic
Apr 2024
$790,000
-14.1% 
Market Peak
+1.3% 
Apr 2023
$780,000
Prestons Park (Stage 5), Christchurch
Tram Valley Road (Stage 3 & 4), Auckland
Sub-stages 5(G & H):

Construction completed. Titles issued Dec 2023
Sub-stage 5(F & J):
Construction completed.
224c Compliance Certificate to be issued Jun 2024
Section sales/settlements during 2024/25
Stage 3 (8 lots) sold Feb 2023
Stage 4 (10 lots) sold Jun 2023
Settlements during 2024
Completed Developments
Completed Developments
(Cont...)
Warehouse #1 (Primepac), Wiri Auckland
Warehouse #2 (Boundaryline), Wiri Auckland
Construction completed 2022
100% Tenanted
Prestons Park Neighbourhood Centre, Christchurch
Construction completed 2023
10 Tenants Trading
1 Unit undergoing fitout. 1 Unit -Pre-lease Agreement
4 Units Available
Stonebrook Neighbourhood Centre, Rolleston
Construction completed 2022/23
3 Tenants Trading
1 Unit Pre-lease Agreement (Café)
1 Unit Available
Construction completed 2022
100% Tenanted
Work in Progress
Iona, Stage 2, Havelock North
Hawkes Bay
Subdivision consent lodged Jun 2023
Limited Notification anticipated
Consent expected Q3(2024)
Earthworks to commence Q4(2024)
Iona, Stage 3, Havelock North
Hawkes Bay
Master Planning Underway
Iona, Stage 1, Havelock North
Hawkes Bay
Subdivision consent issued Jul 2023
Earthworks commenced Oct 2023
Stage 1 Infrastructure Approval issued Feb 2024
Stage 1A & 1B (45 lots) titles expected late Nov 2024
Stage 1C –1F (80 lots) titles due in 2025
Iona Stage 1 Scheme Plan
Work in Progress
(Cont...)
Stage 1 Section Yield
Total #
Lots
# Lots
(Nett)
Section Type
116116Standalone Lots
76*7CRD Lots
22Existing Houses
194125
*Subject to design and consents
1314
1516
1718

4
Work in Progress
(Cont...)
Iona Stage 1: Construction Progress
Worsleys Road (26Ha)
Cashmere, Christchurch
New acquisition, settled Oct 2023
Preliminary scheme plan complete, 65 lots with upside
potential
Subdivision consent to be lodged Jul 2024
Earthworks (limited to road corridor) to commence Q1(2025)
Work in Progress
(Cont...)
Worsleys Road Preliminary Scheme Plan
Work in Progress
(Cont...)
Work in Progress
(Cont...)
Highlands Drive Aerial
Highlands Drive (10.8Ha)
Richmond, Nelson/Tasman
New acquisition, settled Jan 2024
Consented development yielding 65 lots
Upside potential of 12 -16 lots, subject
to new consents
Commence earthworks Oct 2024
Highlands Drive Consented Scheme Plan
Work in Progress
(Cont...)
Lot 98: Additional
8 –10 Lots *
Lot 87: Additional
4 –6 Lots *
* Subject to new Resource Consent
Work in Progress
(Cont...)
Lucas Terrace Aerial
Lucas Terrace (3.2Ha)
Nelson
New acquisition, settled Dec 2023
Consented development yielding 34 lots
Earthworks to commence Oct 2024
1920
2122
2324

5
Lucas Terrace Consented Scheme Plan
Work in Progress
(Cont...)
R2 Growth Cell (132Ha)
Puketaha, Hamilton
4 new properties acquired in 2023 (8.26Ha)
All strategic acquisitions
Entered MOA with Hamilton City Council
New legislation introduced 2020-23 has
impacted progress;
National Policy Statement –Highly
Productive Lands (NPS-HPL)
National Policy Statement –Urban
Development (NPS-UD)
Future Proof (Greater Waikato Plan)
Fast track application submitted
Work in Progress
(Cont...)
R2 Southern Area Concept Master Plan –Fast Track Application
Work in Progress
(Cont...)
Work in Progress
(Cont...)
R2 Growth Cell Aerial
Work in Progress
(Cont...)
Arataki Road (11.2Ha)
Havelock North, Hawke’s Bay
Subdivision consent lodged May 2023
New legislation introduced 2020-23 has impacted progress;
National Policy Statement –Highly Productive Lands (NPS-HPL)
National Policy Statement –Urban Development (NPS-UD)
Fast track application submitted
Arataki Road Fast Track Preliminary Scheme Plan
Work in Progress
(Cont...)
2526
2728
2930

6
April 2024 YTD Sales
2024 Residential Section Settlements YTD =
$4.6m
Unconditional sales yet to settle in 2024=
$30.7m
2024 Sales/Settlements from:
-KewaRoad, Albany, Auckland
-Tram Valley Road, Swanson, Auckland
-PrestonsPark, Christchurch
The residential housing market has bottomed out
Christchurch is recovering with a surge in sales at PrestonsPark (31 YTD)
Christchurch Market Drivers:
Pro’s;
House prices are affordable (relative to incomes)
Inflation and building costs are easing
Cons;
Mortgage rates and bank lending constraints (CCCFA)
Cost of living remains high
Unemployment ticking upwards 4.2% (Mar 2024)
AUCKLAND SALES
• Kewa Road, Albany
• Tram Valley Road, Swanson
CANTERBURY SALES
• Prestons Park, Christchurch
2023/24 Sales Location Map
31
Cash & term deposits: $42.0m
(as at 30 April 2024)
Bank borrowings Nil
CDI Cash Position
(71.0m in 2023)
32
We have a solid Pipeline
Total land holding 294.2Ha ( an increase of 48.3Ha on 2022)
Estimated yield circa 3,500 sections*
Maintained a nationwide geographical spread
Diverse portfolio, offers flexibility for diversification
Continually looking to grow our Portfolio
Our Pipeline
AUCKLAND PROJECTS
• Trig Road, West Harbour
HAMILTON PROJECTS
• Gordonton Road, Puketaha
HAWKE'S BAY PROJECTS
• Arataki Road, Havelock North
• Iona Block, Havelock North
* Estimated section yield, subject to residential zoning/resource consents
NELSON/TASMAN PROJECTS
• Pelorus Sound
• Lucas Terrace
• Highlands Drive
CANTERBURY PROJECTS
• Prestons Park, Christchurch
• Worsleys Road, Cashmere Christchurch
33
Acquisition Opportunities
The current environment continues to produce a number of interesting
acquisition opportunities
Whilst Vendors’ price expectations have come back from Nov 2021 Market
Peak, they remain high in the current market
New legislation introduced during 2020-23 has materially impacted acquisition
feasibility –not seen nor accepted by Vendors
34
Strategic Direction
Boardand Management attended workshop in late 2023 to look at our future
strategy for the next 10 years
We looked at a number of concepts and ideas and shared our respected thoughts
on how to:
Grow our business from our existing core
Expand on our recent project successes
Further diversify our revenue streams
Form strategic partnerships with similar minded stakeholders
Grow shareholder returns and share value
We plan to progress the strategic direction further this year
35
2024 Outlook
High (but easing) inflation, mortgage rates, the general cost of living and
growing employment concerns will continue to impact the NZ Property
Marketfortheremainderof2024
The residential market is expected to bottom out and gradually improve
with momentum building toward the end of the year, flowing over into
2025
PositivestarttotheyearforCDL, withsurgeinsalesfromPrestonsParkand
highinterestshownforIonaStage1sections
CDI expects to deliver another profitable year (FY2024) bettering our 2023
result
Planningtoprogressour
new
Christchurch,NelsonandRichmondprojects
CDIinastrongfinancialpositionforprojectdevelopmentandacquisitions
We are continuing to plan for the future, both operationally and
strategically
36
3132
3334
3536

7
24 November 2024
ELECTION OF DIRECTORS
Resolution #1:
Re-election of Vincent Yeo as a Director
ELECTION OF DIRECTORS
Resolution #2:
Re-election of Desleigh Jameson as a Director
DIRECTORS REMUNERATION
Resolution #3: Directors’ Remuneration
This resolution seeks shareholder approval to increase the total
annual remuneration available to all directors of CDI for their
services as directors (“fee pool”) by $120,000
The total fee pool is currently $180,000. The total fee pool was
approved by resolution in 1996. This current resolution
proposes that the total fee pool increases to $300,000. This
change requires shareholder approval under NZX Listing
Rule 2.11.1(a)
40
AUDITORS APPOINTMENT & REMUNERATION
No other nomination received -KPMG are reappointed as the
Company’s auditors
Resolution #4: that the Directors be empowered to fix the
remuneration of the Auditors for the year ending 31 December
2024
41
GENERAL BUSINESS
3738
3940
4142

8
CLOSE OF MEETING
Thank you for attending
43