CDI H1 2024 announcement

Results announcement



Results for announcement to the market
Name of issuer CDL Investments New Zealand Limited
Reporting Period 6 months to 30 June 2024
Previous Reporting Period 6 months to 30 June 2023
Currency NZD

Amount (000s) Percentage change
Revenue from continuing
operations
$16,614 38.82%
Total Revenue $16,614 38.82%
Net profit/(loss) from
continuing operations
$2,742 (45.42%)
Total net profit/(loss) $2,742 (45.42%)
Interim Dividend
Amount per Quoted Equity
Security
No interim dividend declared
Imputed amount per Quoted
Equity Security
Not applicable
Record Date Not applicable
Dividend Payment Date Not applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$1.05 $1.05
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Refer to Shareholder Update
Authority for this announcement
Name of person

authorised
to make this announcement
Takeshi Ito
Contact person for this
announcement
Takeshi Ito
Contact phone number 09 353 5077
Contact email address takeshi.ito@cdli.co.nz
Date of release through MAP 7 August 2024

Unaudited financial statements accompany this announcement.

---

Page 1
CDL Investments New Zealand Limited and its Subsidiary
CDL Investments New Zealand Limited and its SubsidiaryCDL Investments New Zealand Limited and its Subsidiary
CDL Investments New Zealand Limited and its Subsidiary


Condensed Interim Statement of Comprehensive Income
For the half year ended 30 June 2024 (unaudited)





Group
GroupGroup
Group


In thousands of dollars

Note
NoteNote
Note

Unaudited
Unaudited Unaudited
Unaudited
6 months to
6 months to 6 months to
6 months to
30/06/2
30/06/230/06/2
30/06/24
44
4



Unaudited
UnauditedUnaudited
Unaudited




6 months
6 months6 months
6 months

to
to to
to
30/06/23
30/06/2330/06/23
30/06/23




Property sales 15,202 10,626
Rental income 1,412 1,342
Revenue
RevenueRevenue
Revenue

16,614
16,61416,614
16,614 11,
11,11,
11,968
968968
968

Cost of sales (6,292) (4,372)







Gross profit
Gross profitGross profit
Gross profit 10,322
10,32210,322
10,322

7,
7,7,
7,596
596596
596



Administrative expenses (536) (742)
Property expenses (341) (222)
Selling expenses (392) (294)
Other expenses (1,191) (1,067)

Results from operating activities
Results from operating activitiesResults from operating activities
Results from operating activities

7,862
7,8627,862
7,862

5,271
5,2715,271
5,271



Finance income 1,350 1,713
Finance costs (5) (6)



Net finance income
Net finance incomeNet finance income
Net finance income

1,345
1,3451,345
1,345

1,707
1,7071,707
1,707









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

9,207
9,2079,207
9,207

6,978
6,9786,978
6,978



Income tax expense 5 (6,465) (1,954)







Profit for the period
Profit for the periodProfit for the period
Profit for the period

2,742
2,7422,742
2,742

5,024
5,0245,024
5,024



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

2,742
2,7422,742
2,742

5,024
5,0245,024
5,024



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


Equity holders of the parent 2,742 5,024

Total comprehensive income for the
Total comprehensive income for the Total comprehensive income for the
Total comprehensive income for the period
periodperiod
period

2,742
2,7422,742
2,742

5,024
5,0245,024
5,024



Basic and Diluted Earnings per share (cents per share) 3 0.94 1.73




























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

Page 2
CDL Investments New Zealand
CDL Investments New Zealand CDL Investments New Zealand
CDL Investments New Zealand Limited and its Subsidiary
Limited and its SubsidiaryLimited and its Subsidiary
Limited and its Subsidiary


Condensed Interim Statement of Changes in Equity
For the half year ended 30 June 2024 (unaudited)









Group
GroupGroup
Group





In thousands of dollars Note
NoteNote
Note

Unaudited
UnauditedUnaudited
Unaudited


Share
Share Share
Share
Capital
CapitalCapital
Capital


Unaudited
Unaudited Unaudited
Unaudited
Retained
Retained Retained
Retained
Earnings
EarningsEarnings
Earnings


Unaudited
Unaudited Unaudited
Unaudited
Total
Total Total
Total
Equity
EquityEquity
Equity


Balance at 1 January 2023 65,829 243,052 308,881

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 - 5,024 5,024
Total comprehensive income for the period
Total comprehensive income for the periodTotal comprehensive income for the period
Total comprehensive income for the period

-
--
-

5,024
5,0245,024
5,024

5,024
5,0245,024
5,024



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 2 1,489 - 1,489
Dividend to shareholders 2
22
2

- (10,108) (10,108)
Supplementary dividend

-

(211) (211)
Foreign investment tax credits

-
--
-

211 211
Balance at 3
Balance at 3Balance at 3
Balance at 30
00
0

June 2023
June 2023June 2023
June 2023

6
66
67
77
7,
,,
,318
318318
318

237,968
237,968237,968
237,968

30
3030
305,286
5,2865,286
5,286



Balance at 1 January 2024 67,318 246,407 313,725

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 - 2,742 2,742
Total comprehensive income for the period
Total comprehensive income for the periodTotal comprehensive income for the period
Total comprehensive income for the period

-
--
-

2,742
2,7422,742
2,742

2,742
2,7422,742
2,742



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 2 723 - 723
Dividend to shareholders 2
22
2

- (10,177) (10,177)
Supplementary dividend

-

(221) (221)
Foreign investment tax credits

-
--
-

221 221
Balance at
Balance at Balance at
Balance at 3
33
30
00
0

June 2024
June 2024June 2024
June 2024

6
66
68
88
8,
,,
,041
041041
041

2
22
238
3838
38,
,,
,972
972972
972

307,013
307,013307,013
307,013





































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

Page 3
CDL Investments New Zealand Limited and its Subsidiary
CDL Investments New Zealand Limited and its SubsidiaryCDL Investments New Zealand Limited and its Subsidiary
CDL Investments New Zealand Limited and its Subsidiary


Condensed Interim Statement of Financial Position
For the half year ended 30 June 2024 (unaudited)



Group
GroupGroup
Group




In thousands of dollars Note
NoteNote
Note Unaudited
UnauditedUnaudited
Unaudited


as at
as at as at
as at


30/06/2
30/06/230/06/2
30/06/24
44
4
Audited
AuditedAudited
Audited


as at
as atas at
as at




31/12/23
31/12/2331/12/23
31/12/23

SHAREHOLDERS’ EQUITY
Issued capital 68,041 67,318
Retained earnings 238,972 246,407



Total
Total Total
Total e
ee
equity
quityquity
quity

30
3030
307
77
7,
,,
,013
013013
013

313,725
313,725313,725
313,725



Represented by:

NON CURRENT ASSETS
Property, plant and equipment 90 114
Development property 223,458 203,034
Investment property 35,646 35,834
Investment in associate 7 2 2

Total non current a
Total non current aTotal non current a
Total non current assets
ssetsssets
ssets 2
22
259,196
59,19659,196
59,196

238,984
238,984238,984
238,984




CURRENT ASSETS
Cash and cash equivalents 10,703 2,159
Short term deposits 25,150 50,000
Trade and other receivables 6,945 6,578
Income tax receivable

206 -
Development property

11,261 21,507

Total current a
Total current aTotal current a
Total current assets
ssetsssets
ssets

54,265
54,26554,265
54,265

80,244
80,24480,244
80,244









Total a
Total aTotal a
Total assets
ssetsssets
ssets

313,461
313,461313,461
313,461

319,228
319,228319,228
319,228






NON CURRENT LIABILITIES
Deferred tax liabilities 4,299 284
Lease liability 41 57

Total non c
Total non cTotal non c
Total non current
urrent urrent
urrent l
ll
li
ii
iabilities
abilitiesabilities
abilities 4,340
4,3404,340
4,340

341
341341
341




CURRENT LIABILITIES
Trade and other payables 1,920 3,820
Employee entitlements 153 138
Income tax payable - 1,165
Lease liability 35 39

Total current l
Total current lTotal current l
Total current liabilities
iabilitiesiabilities
iabilities

2,108
2,1082,108
2,108

5,162
5,1625,162
5,162









Total l
Total lTotal l
Total liabilities
iabilitiesiabilities
iabilities

6,448
6,4486,448
6,448

5,503
5,5035,503
5,503









Net a
Net aNet a
Net assets
ssetsssets
ssets

307,013
307,013307,013
307,013

313,725
313,725313,725
313,725


















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

Page 4
CDL Investments New Zealand Limited and its Subsidiary
CDL Investments New Zealand Limited and its SubsidiaryCDL Investments New Zealand Limited and its Subsidiary
CDL Investments New Zealand Limited and its Subsidiary


Condensed Interim Statement of Cash Flows
For the half year ended 30 June 2024 (unaudited)







Group
GroupGroup
Group


In thousands of dollars Note
NoteNote
Note

Unaudited
Unaudited Unaudited
Unaudited
6 months to
6 months to 6 months to
6 months to
30/06/2
30/06/230/06/2
30/06/24
44
4



Unaudited
UnauditedUnaudited
Unaudited




6 months to
6 months to 6 months to
6 months to
30/06/2
30/06/230/06/2
30/06/23
33
3




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


Receipts from customers 16,095 10,408
Interest received 1,502 1,962



Cash was applied to:
Cash was applied to:Cash was applied to:
Cash was applied to:
Payment to suppliers (13,194) (4,250)
Payment to employees (703) (575)
Purchase of development land (6,620) -
Income tax paid (3,600) (5,050)







Net cash (outflow)/inflow from operating activities

(6,520
(6,520(6,520
(6,520)
))
)

2,495
2,4952,495
2,495



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


Short term deposits 50,000 40,075

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


Development of investment property (87) (286)
Purchase of plant and equipment - (6)
Short term deposits (25,150) (20,075)

Net cash outflow from investing activities

24,763
24,76324,763
24,763

19,708
19,70819,708
19,708



CASH FLOWS FROM FINANCING ACTIVITIES
Cash was applied to:
Cash was applied to:Cash was applied to:
Cash was applied to:
Dividend paid 2 (9,454) (8,619)
Principal repayment of lease liability (24) (18)
Supplementary dividend paid (221) (211)

Net cash outflow from financing activities (9,699
(9,699(9,699
(9,699)
))
)

(8,848)
(8,848)(8,848)
(8,848)



Net increase in cash and cash equivalents

8,544 13,355
Add opening cash and cash equivalents 2,159 31,667

Closing cash and cash equivalents
Closing cash and cash equivalentsClosing cash and cash equivalents
Closing cash and cash equivalents

10,703
10,70310,703
10,703

45,022
45,02245,022
45,022
























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

Page 5
CDL Investments New Zealand Limited and its Subsidiary
CDL Investments New Zealand Limited and its SubsidiaryCDL Investments New Zealand Limited and its Subsidiary
CDL Investments New Zealand Limited and its Subsidiary


Condensed Interim Statement of Cash Flows - continued
For the half year ended 30 June 2024 (unaudited)



Group
GroupGroup
Group


In thousands of dollars Note
NoteNote
Note

Unaudited
Unaudited Unaudited
Unaudited
6 months to
6 months to 6 months to
6 months to
30/06/2
30/06/230/06/2
30/06/24
44
4



Unaudited
UnauditedUnaudited
Unaudited




6 months to
6 months to 6 months to
6 months to
30/06/2
30/06/230/06/2
30/06/23
33
3




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


Net Profit after Taxation

2,742 5,024



Adjusted for non cash
Adjusted for non cashAdjusted for non cash
Adjusted for non cash

items:
items:items:
items:


Depreciation of investment property 275 511
Depreciation of plant & equipment 4 3
Depreciation of right-of-use assets 20 14
Income tax expense 6,465 1,954

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 in receivables (367) (1,311)
(Increase)/Decrease in development property (10,178) 1,952
Decrease in payables (1,881) (602)

Cash (consumed)/generated from operating activities
Cash (consumed)/generated from operating activitiesCash (consumed)/generated from operating activities
Cash (consumed)/generated from operating activities

(
((
(2
22
2,9
,9,9
,920
2020
20)
))
)

7,545
7,5457,545
7,545



Income tax paid (3,600) (5,050)

Cash (outflow)/inflow from
Cash (outflow)/inflow from Cash (outflow)/inflow from
Cash (outflow)/inflow from operating activities
operating activitiesoperating activities
operating activities

(6
(6(6
(6,
,,
,520
520520
520)
))
)

2,495
2,4952,495
2,495






































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

Page 6
CDL Investments New Zealand Limited and its Subsidiary
CDL Investments New Zealand Limited and its SubsidiaryCDL Investments New Zealand Limited and its Subsidiary
CDL Investments New Zealand Limited and its Subsidiary


Notes to the Condensed Interim Financial Statements
For the half year ended 30 June 2024 (unaudited)

1
11
1.
..
.

S
SS
Significant
ignificantignificant
ignificant

A
AA
Accounting
ccountingccounting
ccounting

P
PP
Policies
oliciesolicies
olicies





Reporting Entity
Reporting EntityReporting Entity
Reporting Entity


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

The condensed interim financial statements of the Company as at and for the half year ended 30 June 2024
comprises the Company and its subsidiary (together referred to as the “Group”). The registered office is located
at Level 7, 23 Customs Street East, Auckland, New Zealand.

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 NZ IAS 34
Interim Financial Reporting. The condensed
interim financial statements do not include all of the information required for full annual financial statements.

The accounting policies applied by the Group in these condensed financial statements are the same as those
applied by the Group in its consolidated financial statements for the year ended 31 December 2023.

The condensed interim financial statements were authorised for issuance on 7 August 2024.

2.
2.2.
2.

Capital & Reserves
Capital & ReservesCapital & Reserves
Capital & Reserves



Share
Share Share
Share Capital
CapitalCapital
Capital


Under the Company’s Dividend Reinvestment Plan, an additional 1,038,719 shares were issued on 17 May 2024
(2023: 1,977,136) at a strike price of $0.6961 (2023: $0.7530).

At 30 June 2024, the authorised share capital consisted of 291,823,552 fully paid ordinary shares (2023:
290,784,833).



Dividends
DividendsDividends
Dividends
The following dividends were declared and paid during the period ending 30 June:
In thousands of dollars

202
202202
2024
44
4

202
202202
2023
33
3


Cash - 3.5 cents per qualifying ordinary share (2023: 3.5 cents) 9,454 8,619
Dividend reinvestment plan - 3.5 cents per qualifying ordinary share (2023: 3.5 cents) 723 1,489


10,1
10,110,1
10,177
7777
77

10,
10,10,
10,108
108108
108





3.
3.3.
3.

Earnings Per Share
Earnings Per ShareEarnings Per Share
Earnings Per Share



The calculation of basic and diluted earnings per share at 30 June 2024 of 0.94 cents (2023: 1.73 cents) was
based on the profit attributable to ordinary shareholders of $2,742,000 (2023: $5,024,000); and weighted average
number of shares of 291,477,312 (2023: 290,125,788) on issue in the period.

Page 7
CDL Investments New Zealand Limited and its
CDL Investments New Zealand Limited and its CDL Investments New Zealand Limited and its
CDL Investments New Zealand Limited and its Subsidiary
SubsidiarySubsidiary
Subsidiary


Notes to the Condensed Interim Financial Statements
For the half year ended 30 June 2024 (unaudited)

4
44
4.
..
.

Segment Reporting
Segment ReportingSegment Reporting
Segment Reporting





Operating segments
Operating segmentsOperating segments
Operating 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.

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.



Residential land
Residential land Residential land
Residential land
development
developmentdevelopment
development


Investment property
Investment propertyInvestment property
Investment property

Group
GroupGroup
Group


In thousands of dollars
6 months
6 months 6 months
6 months
to
to to
to
30/06/24
30/06/2430/06/24
30/06/24


6 months
6 months 6 months
6 months
to
to to
to
30/06/23
30/06/2330/06/23
30/06/23


6 months
6 months 6 months
6 months
to
to to
to
30/06/24
30/06/2430/06/24
30/06/24


6 months
6 months 6 months
6 months
to
to to
to
30/06/23
30/06/2330/06/23
30/06/23


6 months
6 months 6 months
6 months
to
to to
to
30/06/24
30/06/2430/06/24
30/06/24


6 months
6 months 6 months
6 months
to
to to
to
30/06/23
30/06/2330/06/23
30/06/23


External revenue 15,310 10,749 1,304 1,219 16,614 11,968
Earnings before interest,
depreciation, amortisation & tax 6,866 4,600 1,295 1,199 8,161 5,799
Finance income 1,350 1,713 - - 1,350 1,713
Finance expense (5) (6) - - (5) (6)
Depreciation and amortisation (4) (3) (275) (511) (279) (514)
Depreciation of Right-of-use
assets (20) (14) - - (20) (14)
Profit before income tax 8,187 6,290 1,020 688 9,207 6,978
Income tax expense (2,265) (1,761) (4,200) (193) (6,465) (1,954)
Profit after income tax 5,922 4,529 (3,180) 495 2,742 5,024



Plant and equipment expenditure - 6 - - - 6
Investment property expenditure - - 87 286 87 286
Residential land development
expenditure 11,626 2,420 - - 11,626 2,420
Purchase of land for residential
land development 6,620 - - - 6,620 -

In thousands of dollars
As at
As at As at
As at
30/06/24
30/06/2430/06/24
30/06/24


As at
As at As at
As at
31/12/23
31/12/2331/12/23
31/12/23


As at
As at As at
As at
30/06/24
30/06/2430/06/24
30/06/24


As at
As at As at
As at
31/12/23
31/12/2331/12/23
31/12/23


As at
As at As at
As at
30/06/24
30/06/2430/06/24
30/06/24


As at
As at As at
As at
31/12/23
31/12/2331/12/23
31/12/23


Cash & cash equivalents and
short term bank deposits 35,853 52,159 - - 35,853 52,159
Investment in associates 2 2 - - 2 2
Tax receivable 206 - - - 206 -
Other segment assets 241,754 231,233 35,646 35,834 277,400 267,067
Total assets 277,815 283,394 35,646 35,834 313,461 319,228



Segment liabilities (2,149) (4,054) - - (2,149) (4,054)
Tax liabilities (4,299) (1,449) - - (4,299) (1,449)
Total liabilities (6,448) (5,503) - - (6,448) (5,503)

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.

Page 8
CDL Investments New Zealand Limited and its Subsidiary
CDL Investments New Zealand Limited and its SubsidiaryCDL Investments New Zealand Limited and its Subsidiary
CDL Investments New Zealand Limited and its Subsidiary


Notes to the Condensed Interim Financial Statements
For the half year ended 30 June 2024 (unaudited)

5
55
5.
..
.

Income Tax Expense
Income Tax ExpenseIncome Tax Expense
Income Tax Expense





Recognised in the statement of comprehensive income
Recognised in the statement of comprehensive incomeRecognised in the statement of comprehensive income
Recognised in the statement of comprehensive income





In thousands of dollars

Group
GroupGroup
Group


Current tax expense
Current tax expenseCurrent tax expense
Current tax expense


6 months to
6 months to 6 months to
6 months to
30/06/24
30/06/2430/06/24
30/06/24


6 months
6 months6 months
6 months

to
to to
to
30/06/
30/06/30/06/
30/06/23
2323
23


Current year 2,476 1,768
Under/(over) provided for prior years (26) -
2,450 1,768
Deferred tax expense
Deferred tax expenseDeferred tax expense
Deferred tax expense
Origination and reversal of temporary differences 102 186
Changes in treatment of building depreciation 3,913 -
4,015 186
Total income tax expense in the statement of comprehensive income 6,465
6,4656,465
6,465

1,954
1,9541,954
1,954







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


6 months to
6 months to 6 months to
6 months to
30/06/24
30/06/2430/06/24
30/06/24


6 months to
6 months to 6 months to
6 months to
30/06/23
30/06/2330/06/23
30/06/23


Profit before income tax 9,207 6,978
Income tax using the company tax rate of 28% (2023: 28%) 2,578 1,954
Changes in treatment of building depreciation 3,913 -
Under/(over) provided for prior years (26) -
6,465
6,4656,465
6,465

1
11
1,954
,954,954
,954


Effective tax rate 70
7070
70%
%%
%

28%
28%28%
28%





Impact of change in tax depreciation
Impact of change in tax depreciationImpact of change in tax depreciation
Impact of change in tax depreciation


Before 2010, all components of commercial buildings were depreciable for tax purposes. On 28 March 2024, the
Taxation (Annual Rates for 2023-24, Multinational Tax, and Remedial Matters) legislation was enacted,
encompassing a range of changes to tax legislation including the removal of the tax deduction for depreciation
on building core of commercial buildings.

As a result of the change in legislation, income tax expense and deferred tax liability has increased by $3.9m for
the six months ended 30 June 2024.



6
66
6.
..
.

Commitments
CommitmentsCommitments
Commitments



As at 30 June 2024, the Group had entered into contractual commitments for development expenditure and
unconditional purchases of land. Development expenditure represents amounts contracted and forecast to be
incurred in the remainder of 2024 in accordance with the Group’s development programme.

In thousands of dollars

As at
As at As at
As at
30/06/24
30/06/2430/06/24
30/06/24


As at
As at As at
As at
30/06/23
30/06/2330/06/23
30/06/23


Capital expenditure on investment properties 11 60
Development expenditure 10,542 21,471
Land purchases 17,100 20,407
27,653
27,65327,653
27,653

41,938
41,93841,938
41,938

Page 9
CDL Investments New Zealand Limited and its Subsidiary
CDL Investments New Zealand Limited and its SubsidiaryCDL Investments New Zealand Limited and its Subsidiary
CDL Investments New Zealand Limited and its Subsidiary


Notes to the Condensed Interim Financial Statements
For the half year ended 30 June 2024 (unaudited)

7.
7.7.
7.

Related Party Transactions
Related Party TransactionsRelated Party Transactions
Related Party Transactions



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 65.31% (2023: 65.54%) of the Company
and having one out of four of the Directors on the Board. Millennium & Copthorne Hotels New Zealand Limited is
70.79% (2023: 70.79%) owned by CDL Hotels Holdings New Zealand Limited (computed on voting shares), which
is a wholly owned subsidiary of Millennium & Copthorne Hotels Ltd in the United Kingdom. The ultimate holding
company is Hong Leong Investment Holdings Pte Ltd in Singapore.

During the six month period ending 30 June 2024 CDL Investments New Zealand Limited has reimbursed its
parent, Millennium & Copthorne Hotels New Zealand Limited, $214,000 (2023: $205,000) for shared office
expenses incurred by the parent on behalf of the Group and reimbursed its parent for its portion of insurance
premiums of $20,000 (2023:$28,000).

Subsidiary
SubsidiarySubsidiary
Subsidiary

Principal
Principal Principal
Principal Activity
ActivityActivity
Activity

% Holding by
% Holding by% Holding by
% Holding by


CDL Investments New Zealand Limited
CDL Investments New Zealand LimitedCDL Investments New Zealand Limited
CDL Investments New Zealand Limited


Balance Date
Balance DateBalance Date
Balance Date


CDL Land New Zealand
Limited
Property Investment
and Development
100.00 31 December

Associate
AssociateAssociate
Associate

Principal Activity
Principal ActivityPrincipal Activity
Principal Activity

% Holding by
% Holding by% Holding by
% Holding by


CDL Land New Zealand Limited
CDL Land New Zealand LimitedCDL Land New Zealand Limited
CDL Land New Zealand Limited


Balance Date
Balance DateBalance Date
Balance Date


Prestons Road Limited Service Provider 33.33 31 March

---

DIRECTORS’ REVIEW

Financial Performance:

On behalf of the Board, I am pleased to advise that CDL Investments New Zealand Limited (“CDI”) made an unaudited operating
profit after tax of $2.74 million (2023: $5.02 million) for the six month period ending 30 June 2024. Our operating profit before
tax improved to $ 9.21 million (2023: $6.98 million) which came from an increase in our property sales and other income for the
period of $16.61 million (2023: $11.97 million). These positive results translated into an increase in our Net Asset Backing (at
cost) for the period of 105.20 cents per share (2023: 104.99 cents per share).

As we announced last week, our profit after tax was affected by a one-off non-cash adjustment of $3.91 million due to the change
of government policy on the depreciation of commercial buildings. This taxation adjustment has no impact on our trading
performance or cash flow.

Operationally, we are satisfied with our performance over the last six months. Our key metrics reflect the start of recovery in
the residential property markets. Our target remains improving our 2023 results despite the impact of the non-cash taxation
adjustment and based on what we are seeing across our developments, we are currently on track to do so through additional
sales which we expect to settle before the end of the year.

Portfolio update:

We believe that the markets in the residential sectors have passed peak trough and are likely to start recovering from 2025
onwards. With that in mind, we have been looking to accelerate both our development work and acquisitions during the past
few months in line with our updated strategy.

As we advised at our annual meeting, scheme plans have been developed for our recent land acquisitions in Christchurch and
Nelson. We anticipate development work beginning on these sites in Q4 2024 and Q1 2025 respectively. We are targeting sales
from both developments in the course of 2025 and will provide further updates as these developments take shape.

In addition, the Board was pleased to announce in July that we had entered into an agreement for the acquisition of the 10.07
hectares of industrial zone land in Wairakei Road, Harewood. When settled in Q3 of this year, this land will provide us with
additional diversification opportunities within our land development portfolio and will also expand our investment property
portfolio.

We have also made two applications in anticipation of the new proposed fast track consenting process for land in Hamilton and
Havelock North. We want to clearly state that neither of these applications involve or are proximate to conservation or other
sensitive land. We have been careful to ensure that the applications are for projects which are aligned to existing policies and
goals of the areas where the land is situated. We fully understand the concerns that many people have about the process. We
maintain that the projects we have applied for are beneficial to the respective regions and in line with our core business of
creating residential subdivisions and commercial development opportunities.

Board composition:

Regarding the composition of the Board, we are still in the process of assessing suitable candidates to be appointed as our new
independent director. While the process has taken a bit longer than anticipated, the Board need to ensure that the successful
candidate is able to bring additional skills and knowledge to the company. We will make an announcement once the process has
been completed which we anticipate will be towards the end of Q3 2024.

Commentary and Outlook:

Putting aside the impact of the taxation adjustment, we remain absolutely focused on our development work, particularly on our
Iona (Havelock North) site which is still in the initial stages and on our Prestons Park development which is in its final stages.
Sales from both developments will determine our final results for the year.

Adding to our development portfolio is also a priority for this year. Management is exploring a number of interesting
opportunities across the country and we are optimistic that some of these can be brought to completion within this year. These
will provide a diversity of projects and increase our geographical spread which we strongly believe will secure the company’s
medium to long term future.

The Board and I are excited about CDI’s future. I believe that we will have some good stories to tell not only for this year but for
coming years as we expand our land and development portfolios and create new opportunities to benefit all shareholders.



Desleigh Jameson
Board Chair
7 August 2024

---

7 August 2024

TAXATION ADJUSTMENT MASKS REVENUE AND PROFIT GROWTH AT
CDL INVESTMENTS

NZX-listed property development and investment company CDL Investments New Zealand Limited (NZX:CDI) today
released its (unaudited) results for the six months to 30 June 2024 and reported an operating profit after tax of $2.74
million (2023: $5.02 million) on revenue of $16.61 million (2023: $11.97 million). The company improved its operating
profit before tax to $9.21 million (2023 $6.98 million) on the back of increased property sales.

CDI Board Chair Desleigh Jameson said that the results masked a busy six-month period for the company.

“Operationally, the first half of this year has been good for CDI. That has been reflected in our increased revenue and
profit before tax but at the same time we have managed to complete a lot of work across our development sites to ensure
that we secure the medium to long term future of the company”, she said.

The company announced last week that its results would be affected by a one-off, non-cash taxation adjustment. The
adjustment, amounting to $3.91 million, resulted from a change in tax legislation that came into effect this year and
relates to the depreciation of commercial buildings owned by CDI. It would not affect CDI’s trading profitability or cash
flows.

Ms. Jameson also noted CDI’s continued investment and commitment to the Christchurch region.

“We have seen that certain regions are showing more interest and demand and our focus is prioritising those growth
areas where we have land. Canterbury is one such region that is out performing the rest of the country and we have been
able to capitalise on this at our Prestons Park subdivision in Christchurch. We settled a number of sales for half year and
more will come before the end of the year. So, I think we can say that the property markets are past peak trough and
showing signs of recovery.”, she said.

“We are therefore delighted that we have entered into an agreement for 10.07 hectares of industrial zone land in
Wairakei Road, Harewood which we announced in July. This will give us some more diversification opportunities and will
allow us to add to our land development and our investment property portfolios”, she said.

CDI’s CEO Jason Adams also advised that the company was looking to make two applications under the proposed fast
track consenting process for land in Hamilton and in Havelock North.

“These are two particular projects for the development of residential and commercial land which align with the existing
policies and goals of the respective local areas. It’s absolutely critical to emphasise that neither application has anything
to do with conservation or other sensitive land. We fully understand the concern of various parties which are opposed
to the process but we believe that the process was intended to look at projects such as ours. These projects are consistent
with what we do which is create residential subdivisions and commercial development opportunities for New Zealanders.
We strongly believe that both applications will be beneficial to the respective regions”, he said.

Regarding the composition of the Board, Ms. Jameson said that the company was still searching for a new independent
director and that an announcement would be made when the process had been completed.

“It’s taken a bit longer than anticipated but the Board feel that we have to get the right person who can add additional
skills, knowledge and experience to the company. I believe that we should be able to make an appointment towards the
end of Q3 this year”.

ENDS

Issued by CDL Investments New Zealand Limited

Any inquiries please contact:
Jason Adams
CEO
CDL Investments New Zealand Ltd
(09) 353 5077