CDL Investments New Zealand Limited logo

CDI FY2024 Results Announcement

Full Year Results23 February 2025CDIReal Estate

Results announcement



Results for announcement to the market

Name of issuer CDL Investments New Zealand Limited (CDI)

Reporting Period 12 months to 31 December 2024

Previous Reporting Period 12 months to 31 December 2023

Currency NZD


Amount (000s) Percentage change

Revenue from continuing

operations

$49,087 57.45%

Total Revenue $49,087 57.45%

Net profit/(loss) from

continuing operations

$15,381 14.25%

Total net profit/(loss) $15,381 14.25%

Interim/Final Dividend

Amount per Quoted Equity

Security

$0.035

Imputed amount per Quoted

Equity Security

$0.01361111

Record Date 2 May 2025

Dividend Payment Date 16 May 2025

Current period Prior comparable period

Net tangible assets per

Quoted Equity Security

$1.10 $1.08

A brief explanation of any of

the figures above necessary

to enable the figures to be

understood

Refer Directors’ Review accompanying this announcement

Authority for this announcement

Name of person


authorised

to make this announcement

Takeshi Ito (Company Secretary)

Contact person for this

announcement

Takeshi Ito (Company Secretary)

Contact phone number 09 353 5077

Contact email address takeshi.ito@cdli.co.nz

Date of release through MAP


24 February 2025


Audited financial statements accompany this announcement.

---

DIRECTORS’ REVIEW


Financial Performance


For the period ended 31 December 2024 CDL Investments New Zealand Limited (“CDI”) recorded a profit after tax of $15.4 million for 2024 (2023:

$13.5 million). Our overall net profit before tax reflected significant improvements in our operational performance for the year, however, these gains

were impacted by the a one-off non-cash deferred tax adjustment of $3.9 million due to the change of government policy on the depreciation of

commercial buildings.


Taking advantage of these more favourable market conditions, CDI saw its profit before tax increase to $26.8 million (2023: $18.7 million). The

increase came as a result of higher property sales & other income which totalled $49.1 million (2023: $31.2 million). These results confirm that

property markets in New Zealand are showing signs of improvement and there is now a positive momentum shift with lower interest rates, improved

access to bank lending and easing inflation.


At 31 December 2024, CDI’s shareholders’ funds increased to $319.6 million (2023: $313.7 million) and total assets also increased to $328.6 million

(2023: $319.2 million). Net tangible assets per share (at book value) also increased to 109.5 cents (2023: 107.9 cents).


The market value of CDI’s property holdings at year end as independently valued was $422.8 million (2023: $412.6 million), comprising $357.7 million

(2023: $349.9 million) for its development property and $65.1 million (2023: $62.7 million) for its investment property portfolios. At cost, the portfolio

was valued at $287.7 million (2023: $260.4 million) in line with CDI’s accounting policies.



Property Portfolio


We recorded a total of 92 residential section sales during 2024, notably from Prestons Park (Christchurch) which performed above expectations along

with contributions from our Kewa and Tram Valley Road subdivisions in Auckland, which are now sold out. Pre-titled sales have begun at our Iona

development in Havelock North and we expect both Prestons Park and Iona to continue to be strong sellers in 2025.


In addition to the 10.8 hectares of land in Nelson that was settled during January 2024, we acquired a further 10.08 hectares of industrial-zoned land

located in Wairakei Road in Harewood, Christchurch. These acquisitions are in line with our long term strategic objectives to ensure that we have a

sufficient pipeline of land to maintain residential sales over the medium to long term. Our commercially zoned land will also help ensure that we are

able to continue growing an investment property portfolio with additional design, build and lease warehousing projects to add value to our portfolio.


As announced in October 2024, we were pleased to have our R2 Growth Cell (Hamilton) and Arataki Road (Havelock North) projects be included in

the Fast-track Approvals legislation, which was enacted on 23 December 2024. The CDL Land team are presently progressing both projects and we

look forward to providing further updates during the course of the year as we progress these exciting two developments.


Post balance date, the purchase of 6.5 hectares of land in Hamilton was settled during January 2025.


Dividend Announcement


The Board has resolved to maintain its fully imputed ordinary dividend at 3.5 cents per share payable on 16 May 2025. Once again, the Board has

balanced the call from shareholders to be rewarded for improved performance against the company’s need to retain cash to fund development works and

acquisitions. The effect of the deferred tax adjustment, while a non-cash item, was also taken into consideration.


The record date will be 2 May 2025. The Dividend Reinvestment Plan will apply to this dividend.



Summary and Outlook

Economic indicators are expected to remain stable within the property markets both for residential and industrial development and we are looking to

advance our development works across our key sites, particularly our two fast track projects in Hamilton and the Hawkes Bay.

From a residential perspective, with a number of pre-titled section sales from our Iona and Prestons Park developments in-hand and work already

underway developing additional stages, these developments will be critical to our results and successes in 2025. Planning works at our two Nelson/

Tasman sites and Worsley Road site in Cashmere, Christchurch, will also be advanced to ensure that initial earthworks can start as quickly as possible

after consents are received. We will also be looking to progress our fast-track applications as soon as feasibly possible.

From a commercial point of view, we are keen to advance development of our industrial-zoned land at Wairakei Road, Christchurch which we acquired

this year. Planning works for this land have commenced and we are looking to prioritise development of this land to meet current demand.

Having strengthened the Board once more with the appointment of Janie Elrick, a highly experienced and knowledgeable independent director, the

Board is confident that good progress will continue across our developments, current sales and development pipeline, as we look to again improve

on last year’s performance during 2025.

On behalf of the Board, I would like to thank Jason and the Management team for their efforts in 2024 and our shareholders for their continued loyalty

to CDI once again.



Desleigh Jameson

Board Chair

24 February 2025

---

24 February 2025


CDL INVESTMENTS RECORDS PROFIT GROWTH IN 2024

AFTER SOLID TURNAROUND


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

December 2024 earlier today.


Board Chair Desleigh Jameson said that the results reflected a solid turnaround from 2023 with increased profitability from sales of 92

residential sections from CDL’s Kewa and Tram Valley Road subdivisions in Auckland, and Prestons Park subdivision in Christchurch.


“I’m pleased that we have been able to get CDI back on track in 2024. Property markets have stabilized over the last year reflecting the

impact of lower inflation and interest rates and our shareholders can see that reflected in a 50.0% increase in our gross profit”, she said.


“While our overall net profit result was affected by the one-off non-cash deferred tax adjustment of $3.9 million due to the change of

government policy on the depreciation of commercial buildings, we increased our total revenue by 59.4%. That confirms there is a healthy

demand for our residential sections across the country.


CDI’s CEO Jason Adams echoed Ms. Jameson’s comments, noting that as well as making sales, CDI added to its portfolio for future

development.


“We are still actively acquiring land and in 2024 we settled 20.9 hectares of land in the Nelson/ Tasman and Canterbury regions, the latter

being a strategically important industrial zoned piece of land for our future commercial developments”, he said. .


“We want to ensure that our development pipeline across our residential and commercial portfolios will be secure over the next few years.

While our residential development will definitely continue to be our core business, we have seen how our warehouse projects have added

value to the company and we are keen to capitalize on such opportunities”.


CDI maintained its dividend at 3.5 cents per share which would be payable on 16 May 2025 with a record date of 2 May 2025. The

Dividend Reinvestment Plan would apply to this dividend.


“The Board has balanced the aim of rewarding shareholders for the improvement in performance but at the same time is conscious to

leave enough cash reserves available for the Company to utilise to fund development works and secure additional land if opportunities

arise. 2024 saw Management look at a wide range of potential acquisitions and we believe that 2025 will be more or less the same”, said

Ms. Jameson.


Ms. Jameson also said that while economic indicators are improving we don’t expect the full effect of these to be realised until later in the

year with momentum building into 2026.


“Having further strengthened the Board with the appointment of Janie Elrick, a highly experienced and knowledgeable independent

director, the Board is confident that good progress will continue across our developments, current sales and development pipeline, as we

look to again improve on last year’s performance during 2025”, she said.



Summary of results:


• Profit after tax $15.4

million (2023: $13.5 million)

• Profit before tax $26.8 million (2023: $18.7 million)

• Property sales & other income $49.1 million (2023: $31.2 million)

• Shareholders’ funds $319.7 million (2023: $313.7 million)

• Total assets $328.6 million (2023: $319.2 million)

• Net tangible asset value (at book value) 109.5 cents per share (2023: 107.9cps)

• Earnings per share 5.28

cents per share (2023: 4.64cps)



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, Chief Executive Officer

027 683 7220

---

Page 1
CDL Investments New Zealand Limited

CDL Investments New Zealand LimitedCDL Investments New Zealand Limited

CDL Investments New Zealand Limited



Consolidated Statement of Comprehensive Income

For the year ended

For the year ended For the year ended

For the year ended 31 December

31 December 31 December

31 December 2024

20242024

2024



T

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

Group

GroupGroup

Group

In thousands of dollarsNote

NoteNote

Note2024

20242024

20242023

20232023

2023

Property sales46,049 28,063

Rental income3,010 2,716

Revenue

RevenueRevenue

Revenue49,059

49,05949,059

49,059




30,779

30,77930,779

30,779





Cost of sales(19,274) (10,926)

Gross profit

Gross profitGross profit

Gross profit29,785

29,78529,785

29,785




19,853

19,85319,853

19,853





Other income28 397

Administrative expenses3, 4(1,070) (1,433)

Property expenses(712) (527)

Selling expenses(1,291) (720)

Other expenses3, 4(2,351) (2,373)

Results from operating activities

Results from operating activitiesResults from operating activities

Results from operating activities24,389

24,38924,389

24,389




15,197

15,19715,197

15,197





Finance income52,381 3,514

Finance costs5(9) (12)

Net finance income

Net finance incomeNet finance income

Net finance income2,372

2,3722,372

2,372




3,502

3,5023,502

3,502





Profit before income tax

Profit before income taxProfit before income tax

Profit before income tax26,761

26,76126,761

26,761




18,699

18,69918,699

18,699





Income tax expense6(11,380) (5,236)

Profit for the period

Profit for the periodProfit for the period

Profit for the period15,381

15,38115,381

15,381




13,463

13,46313,463

13,463





Total comprehensive income for the period

Total comprehensive income for the periodTotal comprehensive income for the period

Total comprehensive income for the period15,381

15,38115,381

15,381




13,463

13,46313,463

13,463





Profit Attributable to:

Profit Attributable to:Profit Attributable to:

Profit Attributable to:

Equity holders15,381 13,463

15,381

15,38115,381

15,381




13,463

13,46313,463

13,463





Basic and diluted earnings per share (cents per share)135.28 4.64

Total comprehensive income attributable to:

Total comprehensive income attributable to: Total comprehensive income attributable to:

Total comprehensive income attributable to:

Equity holders

Equity holdersEquity holders

Equity holders

Page 2
CDL Investments New Zealand Limited

CDL Investments New Zealand LimitedCDL Investments New Zealand Limited

CDL Investments New Zealand Limited



Consolidated Statement of Changes in Equity

For the year ended

For the year ended For the year ended

For the year ended 31 December

31 December 31 December

31 December 2024

20242024

2024

T

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

Group

GroupGroup

Group

In thousands of dollarsNote

NoteNote

Note

Share

Share Share

Share

Capital

Capital Capital

Capital

Retained

Retained Retained

Retained

Earnings

Earnings Earnings

Earnings

Total

Total Total

Total

Equity

Equity Equity

Equity

Balance at 1 January 202365,829 243,052 308,881

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- 13,463 13,463

Total comprehensive income for the period

Total comprehensive income for the periodTotal comprehensive income for the period

Total comprehensive income for the period-

--

-13,463

13,46313,463

13,463


13,463

13,46313,463

13,463





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 plan131,489 - 1,489

Dividend to shareholders13- (10,108) (10,108)

Supplementary dividend13- (211) (211)

Foreign investment tax credits13- 211 211

Balance at 31 December 2023

Balance at 31 December 2023Balance at 31 December 2023

Balance at 31 December 202367,318

67,31867,318

67,318




246,407

246,407246,407

246,407




313,725

313,725313,725

313,725





Balance at 1 January 202467,318 246,407 313,725

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- 15,381 15,381

Total comprehensive income for the period

Total comprehensive income for the periodTotal comprehensive income for the period

Total comprehensive income for the period-

--

-15,381

15,38115,381

15,381


15,381

15,38115,381

15,381





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 plan13723 - 723

Dividend to shareholders13- (10,177) (10,177)

Supplementary dividend13- (221) (221)

Foreign investment tax credits13- 221 221

Balance at 31 December 2024

Balance at 31 December 2024Balance at 31 December 2024

Balance at 31 December 202468,041

68,04168,041

68,041




251,611

251,611251,611

251,611




319,652

319,652319,652

319,652




Page 3
CDL Investments New Zealand Limited

C

DL Investments New Zealand LimitedCDL Investments New Zealand Limited

CDL Investments New Zealand Limited



Consolidated Statement of Financial Position

As at

As at As at

As at 31 December

31 December 31 December

31 December 2024

20242024

2024



For and on behalf of the Board

D

JAMESON, DIRECTOR, 24 February 2025 J ELRICK, DIRECTOR, 24 February 2025

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

Group

GroupGroup

Group

In thousands of dollarsNote

NoteNote

Note2024

20242024

20242023

20232023

2023

SHAREHOLDERS' EQUITY

Issued capital1368,041 67,318

Retained earnings251,611 246,407

Total equity

Total equityTotal equity

Total equity319,652

319,652319,652

319,652




313,725

313,725313,725

313,725





Represented by:

NON CURRENT ASSETS

Property, plant and equipment70 114

Development property8222,077 203,034

Investment property936,301 35,834

Investment in associate2 2

Total non current assets

Total non current assetsTotal non current assets

Total non current assets258,450

258,450258,450

258,450




238,984

238,984238,984

238,984





CURRENT ASSETS

Cash and cash equivalents1232,803 2,159

Short term deposits484 50,000

Trade and other receivables117,517 6,578

Development property829,368 21,507

Total current assets

Total current assetsTotal current assets

Total current assets70,172

70,17270,172

70,172




80,244

80,24480,244

80,244





Total assets

Total assetsTotal assets

Total assets328,622

328,622328,622

328,622




319,228

319,228319,228

319,228





NON CURRENT LIABILITIES

Deferred tax liabilities104,354 284

Lease Liability23 57

Total non current liabilities

Total non current liabilitiesTotal non current liabilities

Total non current liabilities4,377

4,3774,377

4,377




341

341341

341





CURRENT LIABILITIES

Trade and other payables2,154 3,820

Employee entitlements151 138

Income tax payable2,254 1,165

Lease Liability34 39

Total current liabilities

Total current liabilitiesTotal current liabilities

Total current liabilities4,593

4,5934,593

4,593




5,162

5,1625,162

5,162





Total liabilities

Total liabilitiesTotal liabilities

Total liabilities8,970

8,9708,970

8,970




5,503

5,5035,503

5,503





Net assets

Net assetsNet assets

Net assets319,652

319,652319,652

319,652




313,725

313,725313,725

313,725




Page 4
CDL Investments New Zealand Limited

CDL Investments New Zealand LimitedCDL Investments New Zealand Limited

CDL Investments New Zealand Limited



Consolidated Statement of Cash Flows

For the year ended

For the year ended For the year ended

For the year ended 31 December

31 December 31 December

31 December 2024

20242024

2024

T

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

Group

GroupGroup

Group

In thousands of dollarsNote

NoteNote

Note2024

20242024

20242023

20232023

2023

CASH FLOWS FROM OPERATING ACTIVITIES

Cash was provided from:

Cash was provided from:Cash was provided from:

Cash was provided from:

Receipts from Customers48,007 29,469

Interest Received2,850 3,509

Cash was applied to:

Cash was applied to:Cash was applied to:

Cash was applied to:

Payments to suppliers(27,317) (14,088)

Payments to employees(1,286) (1,280)

Deposits paid on unconditional contracts for development land19(663) (662)

Purchase of development land(23,720) (20,407)

Income tax paid(6,000) (6,850)

Net cash outflow from operating activities

Net cash outflow from operating activitiesNet cash outflow from operating activities

Net cash outflow from operating activities(8,129)

(8,129)(8,129)

(8,129)


(10,309)

(10,309)(10,309)

(10,309)



CASH FLOWS FROM INVESTING ACTIVITIES

Cash was provided from:

Cash was provided from:Cash was provided from:

Cash was provided from:

Short term deposits50,000 40,075

Cash was applied to:

Cash was applied to:Cash was applied to:

Cash was applied to:

Development of investment property(1,017) (386)

Purchase of plant and equipment(2) (14)

Short term deposits(484) (50,000)

Net cash inflow/(outflow) from investing activities

Net cash inflow/(outflow) from investing activitiesNet cash inflow/(outflow) from investing activities

Net cash inflow/(outflow) from investing activities48,497

48,49748,497

48,497




(10,325)

(10,325)(10,325)

(10,325)



CASH FLOWS FROM FINANCING ACTIVITIES

Cash was applied to:

Cash was applied to:Cash was applied to:

Cash was applied to:

Dividend paid(9,454) (8,619)

Principal repayment of lease liability(49) (44)

Supplementary dividend paid(221) (211)

Net cash outflow from financing activities

Net cash outflow from financing activitiesNet cash outflow from financing activities

Net cash outflow from financing activities(9,724)

(9,724)(9,724)

(9,724)


(8,874)

(8,874)(8,874)

(8,874)



Net increase/(decrease) in cash and cash equivalents30,644 (29,508)

Add opening cash and cash equivalents2,159 31,667

Closing cash and cash equivalents

Closing cash and cash equivalentsClosing cash and cash equivalents

Closing cash and cash equivalents1232,803

32,80332,803

32,803




2,159

2,1592,159

2,159




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 2024

20242024

2024

T

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

Group

GroupGroup

Group

In thousands of dollarsNote

NoteNote

Note2024

20242024

20242023

20232023

2023

Net profit after taxation15,381 13,463

Adjusted for non cash items:

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

Adjusted for non cash items:

Depreciation of investment property550 933

Depreciation of plant and equipment8 7

Depreciation of right-of-use assets39 34

Income tax expense611,380 5,236

Interest Expense9 12

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(939) (4,251)

Increase in development property(26,904) (21,393)

Increase/(decrease) in payables(1,653) 2,500

Cash consumed from operating activities

Cash consumed from operating activitiesCash consumed from operating activities

Cash consumed from operating activities(2,129)

(2,129)(2,129)

(2,129)


(3,459)

(3,459)(3,459)

(3,459)



Income tax paid(6,000) (6,850)

Cash outflow from operating activities

Cash outflow from operating activitiesCash outflow from operating activities

Cash outflow from operating activities(8,129)

(8,129)(8,129)

(8,129)


(10,309)

(10,309)(10,309)

(10,309)



RECONCILIATION OF PROFIT FOR THE PERIOD

TO CASH FLOWS FROM OPERATING ACTIVITIES

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 2024

P

age 6

MATERIAL ACCOUNTING POLICIES

MATERIAL ACCOUNTING POLICIESMATERIAL ACCOUNTING POLICIES

MATERIAL ACCOUNTING POLICIES



REPORTING ENTITY

REPORTING ENTITYREPORTING ENTITY

REPORTING ENTITY



CDL Investments New Zealand Limited (the “Company”) is a company domiciled in New Zealand, registered under the

Companies Act 1993 and listed on the New Zealand Stock Exchange. The Company is a FMC Reporting Entity in terms

of the Financial Markets Conduct Act 2013 and the Financial Reporting Act 2013.

The financial statements of the Company for the year ended 31 December 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 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 24 February 2025.

(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, unless

otherwise indicated.

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.

(

((

(d

dd

d)

))

)Trade and other payables

Trade and other payablesTrade and other payables

Trade and other payables

Trade and other payables are stated at amortised cost.

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 2024

P

age 7

Material accounting policies

Material accounting policiesMaterial accounting policies

Material accounting policies


- continued

(

((

(e

ee

e)

))

)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 ascribed to building core depend

on the nature, location and tenure of each property. Depreciable values of 10% are ascribed to building core.

(

((

(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. Lease incentives granted are

recognised as an integral part of the total rental income.

The Group grants settlement terms of up to 12 months on certain sections as part of the agreement for sale and

purchase for unconditional sales. 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

New standardsNew standards

New standards


and interpretations not yet adopted

and interpretations not yet adoptedand interpretations not yet adopted

and interpretations not yet adopted

A number of amendments to standards are effective for annual periods beginning after 1 January 2025 and earlier

application is permitted. The Group has not early adopted the amended standards in preparing the consolidated

financial statements. The Group will be adopting the amended standards from 1 January 2025.

The Group is in the process of finalising the evaluation of impact from the following new and amended standards,

including changes in the Presentation and Disclosure in Financial Statements in line with NZ IFRS 18. The Group

does not expect material financial impact from these new and amended standards but note this may change the

presentation and disclosures of the consolidated financial statements.

1. Amendments to NZ IAS21 Lack of Exchangeability

2.

Amendments to NZ IFRS 9 and NZ IFRS 7 Classification and Measurement of Financial Instruments

3.

Annual Improvements to NZ IFRS Accounting Standards – Volume 11

4.

NZ IFRS 18 Presentation and Disclosure in Financial Statements

5.

IAFRS 19 Subsidiaries without Public Accountability: Disclosures

6.

Amendments to NZ IFRS 10 and NZ IAS 28 Sale or Contribution of Assets between an Investor and its

Associate or Joint Venture

(h)

(h)(h)

(h)New currently effective standards

New currently effective standardsNew currently effective standards

New currently effective standards

The Group adopted all amended standards that became effective during the reporting period, specifically FRS-

44 New Zealand Additional Disclosures of Fees for Audit Firms’ Services. However, these new standards did

not have any impact on the financial position, performance and cash flows of the Group.

The Group has adopted the International Tax Reform – Pillar Two Model Rules – Amendments to NZ IAS 12

approved by the New Zealand External Reporting Board from the issuance date of 10 August 2023. The

amendments provide a temporary mandatory exception from deferred tax accounting and require new

disclosures in the annual financial statements in relation to the implementation of the Pillar Two Model Rules

published by the Organisation for Economic Co-operation and Development. The Group has applied the

exception with immediate effect. The mandatory exception applies retrospectively. The group has a presence in

jurisdictions that have enacted or substantively enacted legislation in relation to the Pillar Two model rules. The

ultimate parent of the group also being captured under the said rule in their country of operation. Refer to income

tax note 6 for detail discussion.

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 2024

P

age 8

1.

1.1.

1. S

SS

SEGMENT REPORTING

EGMENT REPORTINGEGMENT REPORTING

EGMENT REPORTING

Operating

Operating Operating

Operating segments

segmentssegments

segments

The operating segments of the Group consists of property operations, comprising the development and sale of

residential land sections and rental income from investment properties.

The Group has determined that its chief operating decision maker is the Board of Directors on the basis that it is this

group which determines the allocation of resources to segments and assesses their performance.

An operating segment is a distinguishable component of the Group:

•that is engaged in business activities from which it earns revenues and incurs expenses,

•whose operating results are regularly reviewed by the Group’s chief operating decision maker to make decisions

on resource allocation to the segment and assess its performance, and

•for which discrete financial information is available.

Geographical segments

Geographical segmentsGeographical segments

Geographical segments



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

in New Zealand.

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

in New Zealand.

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

In thousands of dollars2024

20242024

2024




2023

20232023

2023




2024

20242024

2024




2023

20232023

2023




2024

20242024

2024




2023

20232023

2023





External revenue46,313 28,285 2,746 2,494 49,059 30,779

Earnings before interest,

depreciation, amortisation & tax22,255 13,698 2,731 2,473 24,986 16,171

Finance income2,381 3,514 - - 2,381 3,514

Finance costs(9) (12) - - (9) (12)

Depreciation and amortisation(8) (7) (550) (933) (558) (940)

Depreciation of right-of-use assets(39) (34) - -(39) (34)

Profit before income tax24,580 17,159 2,181 1,540 26,761 18,699

Income tax expense(6,852) (4,805) (4,528) (431) (11,380) (5,236)

Profit after income tax

17,728 12,354 (2,347) 1,109 15,381 13,463

Cash & cash equivalents and short

term bank deposits33,287 52,159 - - 33,287 52,159

Investment in associates2 2 - - 2 2

Other segment assets259,032 229,456 36,301 35,834 295,333 265,290

Total assets292,321 281,617 36,301 35,834 328,622 317,451

Segment liabilities(2,362) (2,277) - - (2,362) (2,277)

Tax liabilities(2,229) (1,449) (4,379) - (6,608) (1,449)

Total liabilities(4,591) (3,726) (4,379) - (8,970) (3,726)

Plant and equipment expenditure2 57 - - 2 57

Investment property expenditure- - 1,017 386 1,017 386

Residential land development

expenditure22,458 10,135 - - 22,458 10,135

Purchase of land for residential land

development 23,720 20,407 - - 23,720 20,407

Residential land

Residential land Residential land

Residential land

development

developmentdevelopment

development

Investment property

Investment propertyInvestment property

Investment propertyGroup

GroupGroup

Group

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 2024

P

age 9

2.

2.2.

2. ACCOUNTING

ACCOUNTING ACCOUNTING

ACCOUNTING ESTIMATES AND JUDGEMENTS

ESTIMATES AND JUDGEMENTSESTIMATES AND JUDGEMENTS

ESTIMATES AND JUDGEMENTS

Estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of

assets and liabilities within the next financial year are outlined below:

•Determining the net realisable value of development property to identify any impairment.

•The impairment test for investment properties (refer to note 9 for key assumptions and estimates used).

Management discussed with the Audit Committee the development, selection and disclosure of the Group’s critical

accounting policies and estimates and the application of these policies and estimates.

Key sources of estimation uncertainty

Key sources of estimation uncertaintyKey sources of estimation uncertainty

Key sources of estimation uncertainty



The Group is exposed to a risk of impairment to development properties should the carrying value exceed the net

realisable value due to market fluctuations in the value of development properties. However, there is no indication of

impairment as the net realisable value determined by an independent registered valuer exceeds the carrying value of

development properties (see Note 8).

The valuer adopts the Sales Comparison Approach to determine rates per hectare/per square metre for block land

holdings in addition to recent section sales to derive the gross realisation values. The net realisable values are

determined from gross realisation values after deducting appropriate selling costs.

For residential land under development or is due to commence development in the short term, the valuer adopts the

Residual Subdivision Approach. This approach considers the gross realisation values of the sections less costs

associated with development including GST, sales commissions, legal fees, civil and development costs including

Council contributions, professional fees, and contingency allowances. In addition, holding costs are deducted for the

estimated timing of development and sell down periods.

In both valuation approaches, the valuer makes assumptions relating to section prices, sell down periods, consumer

confidence, unemployment rates, interest rates, and external economic factors. These assumptions are sensitive to

economic factors such as net migration, Official Cash Rate set by the Reserve Bank, inflation, residential market

activity, and business confidence.

The Group is also exposed to a risk of impairment to investment properties should the carrying value exceed the

recoverable amount due to market fluctuations in the value of investment properties. However, there is no indication

of impairment as the recoverable amount determined by an independent registered valuer exceeds the carrying value

of investment properties (see Note 9). In determining the recoverable amount, the valuer adopted primarily the income

capitalisation approach with discounted cash flow and depreciated replacement cost approaches used to corroborate.

The income capitalisation approach assessed market rent for each asset is capitalised in perpetuity from the valuation

date at an appropriate capitalisation rate. The adopted capitalisation rate reflects the nature, location, and tenancy

profile of the property together with current market investment criteria as evidenced by recent sales. The recoverable

amount is sensitive to movements in the adopted capitalisation rate and the market rent.

Climate

ClimateClimate

Climate-

--

-related disclosure

related disclosurerelated disclosure

related disclosure



The Group continues to assess the impact of climate change on its business and its tangible assets. Climate change

poses significant risks and challenges for the land development industry (residential and commercial), as it affects

the physical, operational, and financial aspects of land development. Extreme weather events, such as floods, storms,

heatwaves, and droughts, can damage existing infrastructure, disrupt the supply chain, reduce the ability to conduct

and complete works, and increase the insurance and development and acquisition costs. While property developers

and landowners are increasingly cognisant of the climate-related impacts on their properties, the investment

community have yet to price in the climate-related impacts on asset values. This means that the current market value

of residential and commercial land may not reflect the potential losses or gains associated with their exposure to

climate risks or their adoption of sustainability measures, decarbonisation initiatives, and sound environmental

stewardship. While valuers have made no explicit adjustments to the recoverable amount of the selected properties

in respect of climate change matters, it is anticipated that climate change may have a greater influence on valuations

in the future as investment markets place a greater emphasis on climate change and a property's environmental

resilience and credentials. Known climate risks are reflected in the adopted capitalisation and discount rates.

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 2024

Page 10

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:

4.

4.4.

4. PERSONNEL EXPENSES

PERSONNEL EXPENSESPERSONNEL EXPENSES

PERSONNEL EXPENSES

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

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 dollarsGroup

GroupGroup

Group

Note

NoteNote

Note2024

20242024

20242023

20232023

2023

Fees incurred for services received from audit firm

- Audit fees current year

104

91

- Out of scope audit fees relating to prior year6 -

- Tax compliance4 4

- Greenhouse gas reporting assurance

26

-

- Strategy support advisory services- 74

Depreciation597 974

Directors' fees16126 130

Rental payments90 90

In thousands of dollarsGroup

GroupGroup

Group

2024

20242024

20242023

20232023

2023

Wages and Salaries1,045 1,129

Employee related expenses and benefits236 145

Increase in liability for long-service leave5 6

1,286

1,2861,286

1,286




1,280

1,2801,280

1,280





In thousands of dollarsGroup

GroupGroup

Group

2024

20242024

20242023

20232023

2023

Finance income2,381 3,514

Finance costs(9) (12)

Net finance income2,372

2,3722,372

2,372




3,502

3,5023,502

3,502





In thousands of dollarsGroup

GroupGroup

Group

2024

20242024

20242023

20232023

2023

Current tax expense

Current tax expenseCurrent tax expense

Current tax expense

Current year7,336 5,105

Adjustments for prior years(26) -

7,310 5,105

Deferred tax expense

Deferred tax expenseDeferred tax expense

Deferred tax expense

Origination and reversal of temporary differences4,070 131

4,070 131

Total income expense in the statement of comprehensive income11,380 5,236

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 2024

P

age 11

6.

6.6.

6. INCOME TAX EXPENSE

INCOME TAX EXPENSE INCOME TAX EXPENSE

INCOME TAX EXPENSE -

--

-


continued

Reconciliation of effective tax rate

Reconciliation of effective tax rateReconciliation of effective tax rate

Reconciliation of effective tax rate

Income tax for the year comprises current and deferred tax. Income tax is recognised in profit or loss except to the

extent that it relates to items recognised directly in equity or other comprehensive income, in which case it is

recognised in equity or in other comprehensive income.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively

enacted at the balance date, and any adjustment to tax payable in respect of previous years.

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities

for financial reporting purposes and the amounts used for taxation purposes. The temporary differences relating to

investments in subsidiaries are not provided for to the extent that they will probably not reverse in the foreseeable

future. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the

carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the balance date.

A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available

against which the asset can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable

that the related tax benefit will be realised.

Removal of tax depreciation on commercial and industrial buildings

Removal of tax depreciation on commercial and industrial buildingsRemoval of tax depreciation on commercial and industrial buildings

Removal of tax depreciation on commercial and industrial buildings



From the 2020/21 tax year, the Group has been depreciating its commercial and industrial buildings on a 2%

diminishing value basis, following the reinstatement of tax depreciation for buildings with a useful life of 50 years or

more as part of the government's COVID-19: Economic Response Package.

Effective from 1 April 2024, the tax depreciation rate reverted to 0%, impacting the tax value of buildings held from

the 2024/25 tax year onwards. The Group recognises deferred tax on temporary differences at the tax rates expected

to apply when these differences reverse, using the tax rates enacted or substantively enacted at the balance sheet

date. The change in tax legislation effective from 1 April 2024 eliminates the tax base of commercial and industrial

buildings, thereby creating a temporary difference that leads to a deferred tax liability. This liability is recognised

unless the initial recognition exemption (IRE) under NZ IAS 12 applies, which precludes the recognition of deferred

tax on initial recognition of an asset or liability in a transaction that is not a business combination and at the time of

the transaction affects neither accounting nor taxable profit and is a non-cash item.

Deferred Tax on Buildings

Deferred Tax on BuildingsDeferred Tax on Buildings

Deferred Tax on Buildings



The impact of the removal of tax depreciation on commercial and industrial buildings, which reduced the tax base

to nil creating a significant taxable temporary difference for all the Group’s hotel assets and commercial buildings,

classified as either Property, Plant and Equipment or investment properties, irrespective of their date of

acquisition. The recognition of this temporary difference as a deferred tax liability depends on whether the

buildings were acquired through business combination and whether the initial recognition exception (IRE) in NZ

IAS 12 was previously applied.

The change in tax legislation effective from 1 April 2024 eliminates the tax base for these assets, thereby creating a

temporary difference that leads to a deferred tax liability (DTL). As part of recognising the DTL, a one-off tax expense

of $3.9m has been recognised within the year ended 31 December 2024.

In thousands of dollarsGroup

GroupGroup

Group

2024

20242024

20242023

20232023

2023

Profit before income tax26,761 18,699

Income tax using the company tax rate of 28% (2023: 28%)7,493 5,236

Removal of deductibility of tax depreciation for industrial and commercial buildings3,913 -

Over provided in prior years(26) -

11,380 5,236

Effective tax rate (excluding off-one changes on tax depreciation impact)28%28%

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 2024

P

age 12

6.

6.6.

6. INCOME TAX EXPENSE

INCOME TAX EXPENSE INCOME TAX EXPENSE

INCOME TAX EXPENSE -

--

-


continued

Pillar 2

Pillar 2Pillar 2

Pillar 2

The ultimate parent of the Group operates in multiple jurisdictions, some of which have enacted or substantively

enacted tax legislation to implement the Pillar Two Model Rules from a date commencing on or after 1 January 2024.

As the Pillar Two Model Rules are not effective in New Zealand, for the current financial year, there is no current tax

impact in the Group’s financial statements for the year ended 31 December 2024. The Group has applied a

temporary mandatory exception from deferred tax accounting in respect of the Pillar Two Model Rules and will

account for any top-up tax liabilities arising from the application of the rules as a current tax when it is incurred.

Under the Pillar Two Model Rules, the Group will be required to pay a top-up tax if the effective tax rate per

jurisdiction (calculated using the prescribed approach) is below the 15% minimum rate.

The group continues to monitor and evaluate the domestic implementation of the Pillar Two rules in the jurisdictions

in which it operates. The group's potential exposure to Pillar Two taxes, based on legislation that is enacted or

substantively enacted, is not expected to be material.

7.

7.7.

7. IMPUTATION CREDITS

IMPUTATION CREDITSIMPUTATION CREDITS

IMPUTATION CREDITS

8

88

8.

..

. DEVELOPMENT PROPERTY

DEVELOPMENT PROPERTYDEVELOPMENT PROPERTY

DEVELOPMENT PROPERTY

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 (2023: nil) has been capitalised during the year.

The Group’s inventory of development property is reviewed at each balance date to ensure its carrying amount is

recorded at the lower of its cost and net realisable value. The net realisable value of the development property is

the estimated selling price in the ordinary course of business less the estimated costs of completion and costs

necessary to make the sale. The determination of net realisable value of inventory involves estimates taking into

consideration prevailing market conditions, current prices and expected date of commencement and completion of

the project, the estimated future selling price, cost to complete projects and selling costs. An impairment loss is

recognised in the income statement to the extent that the carrying value of development property exceeds its

estimated net realisable value.

The fair value of development property held at 31 December 2024 was determined by an independent registered

valuer, DM Koomen SPINZ of Extensor Advisory Limited. The fair value is determined to estimate the net realisable

value. The net realisable value as determined by the independent registered valuer, exceeds the carrying value of

development property.

In thousands of dollarsGroup

GroupGroup

Group

2024

20242024

20242023

20232023

2023

Imputation credits available for use in subsequent periods98,506 96,243

In thousands of dollarsGroup

GroupGroup

Group

2024

20242024

20242023

20232023

2023

Expected to settle greater than one year222,077 203,034

Expected to settle within one year29,368 21,507

Development property251,445 224,541

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 2024

P

age 13

9.

9.9.

9. INVESTMENT PROPERTY

INVESTMENT PROPERTYINVESTMENT PROPERTY

INVESTMENT PROPERTY

Investment properties consist of commercial warehousing at Wiri in Auckland, retail shops at Prestons Park in

Christchurch, and retail shops at Stonebrook in Rolleston which are fully operational. The fair value of investment

properties held at 31 December 2024 was determined by an independent registered valuer, DM Koomen SPINZ of

Extensor Advisory Limited as $65.1 million (2023: $62.7 million). The fair value measurement was categorised as

Level 3 (highest of the fair value hierarchy) based on the inputs to the valuation methodology used i.e. primarily the

income capitalisation approach with discounted cash flow and depreciated replacement cost approaches used to

corroborate.

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 (e). 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.

Impairment

ImpairmentImpairment

Impairment



Annual reviews of the carrying amounts of investment properties are undertaken for indicators of impairment. Where

indicators of impairment were identified, the recoverable amounts were estimated based on internal or external

valuations undertaken. The cash generating units (CGU) are individual properties. The recoverable amounts of the

investment properties, being the higher of the fair value less costs to sell and value-in-use, were predominantly

determined using the fair value less costs to sell basis and were estimated using primarily the income capitalisation

approach with discounted cash flow and depreciated replacement cost approaches used to corroborate.

In thousands of dollarsGroup

GroupGroup

Group

Freehold

Freehold Freehold

Freehold

Land

Land Land

Land Buildings

Buildings Buildings

Buildings

Work in

Work in Work in

Work in

Progress

Progress Progress

Progress Total

Total Total

Total

Cost

CostCost

Cost

Balance at 1 January 2023659 36,331 - 36,990

Additions- - 386 386

Transfers between categories- 386 (386) -

Balance at 31 December 2023659 36,717 - 37,376

Balance at 1 January 2024659 36,717 - 37,376

Additions- - 1,017 1,017

Balance at 31 December 2024659 36,717 1,017 38,393

Depreciation and impairment losses

Depreciation and impairment lossesDepreciation and impairment losses

Depreciation and impairment losses

Balance at 1 January 2023- (609) - (609)

Depreciation charge for the year- (933) - (933)

Balance at 31 December 2023- (1,542) - (1,542)

Balance at 1 January 2024- (1,542) - (1,542)

Depreciation charge for the year- (550) - (550)

Balance at 31 December 2024- (2,092) - (2,092)

Carrying amounts

Carrying amountsCarrying amounts

Carrying amounts

Balance at 1 January 2023659 35,722 - 36,381

Balance at 31 December 2023

Balance at 31 December 2023Balance at 31 December 2023

Balance at 31 December 2023659

659659

659




35,175

35,17535,175

35,175




-

--

-




35,834

35,83435,834

35,834





Balance at 1 January 2024659 35,175 - 35,834

Balance at 31 December 2024

Balance at 31 December 2024Balance at 31 December 2024

Balance at 31 December 2024659

659659

659




34,625

34,62534,625

34,625




1,017

1,0171,017

1,017




36,301

36,30136,301

36,301




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 2024

P

age 14

9.

9.9.

9. INVESTMENT PROPERTY

INVESTMENT PROPERTY INVESTMENT PROPERTY

INVESTMENT PROPERTY –

––



Impairment

Impairment Impairment

Impairment –

––



continued

continuedcontinued

continued

During the year, management identified two (2023: two) properties with a carrying value of $14.5 million (2023: $13.7

million) that had indicators of impairment. Average market capitalisation rates appropriate to the properties range

from 6.25% to 7.25% (2023: 6.50% to 7.00%). Average market rent per square metre rates appropriate to the

properties range from $318 to $396 (2023: $341 to $358). There is no impairment expense recognised in the period

(2023: no impairment).

Operating leases

Operating leasesOperating leases

Operating leases

The Group leases out its investment property. The Group has classified these leases as operating leases, because

they do not transfer substantially all of the risks and rewards incidental to the ownership of the assets.

Rental income recognised by the Group during 2024 was $2.7 million (2023: $2.5 million).

The following table sets out a maturity analysis of lease payments, showing the undiscounted lease payments to be

received after the reporting date:

1

11

10

00

0.

..

. DEFERRED TAX ASSETS AND LIABILITIES

DEFERRED TAX ASSETS AND LIABILITIESDEFERRED TAX ASSETS AND LIABILITIES

DEFERRED TAX ASSETS AND LIABILITIES

Recognised deferred tax assets and liabilities

Recognised deferred tax assets and liabilitiesRecognised deferred tax assets and liabilities

Recognised deferred tax assets and liabilities

Deferred tax assets and liabilities are attributable to the following:

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



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



Refer note 6 for the deferred tax impact of the removal of tax depreciation on commercial and industrial buildings.

In thousands of dollarsGroup

GroupGroup

Group

2024

20242024

20242023

20232023

2023

Within 1 Year2,745 2,665

More than 1 year but within 2 years2,793 2,675

More than 2 years but within 3 years2,835 2,722

More than 3 years but within 4 years2,784 2,760

More than 4 years but within 5 years1,947 2,668

After 5 years708 2,553

13,812

13,81213,812

13,812




16,043

16,04316,043

16,043





In thousands of dollarsGroup

GroupGroup

Group

Assets

AssetsAssets

AssetsLiabilities

LiabilitiesLiabilities

LiabilitiesNet

NetNet

Net

2024

20242024

20242023

20232023

20232024

20242024

20242023

20232023

20232024

20242024

20242023

20232023

2023

Investment Property- - (4,379) (345) (4,379) (345)

Development Property- - (81) (81) (81) (81)

Employee Benefits106 142 - - 106 142

Net tax assets/(liabilities)106

106106

106




142

142142

142




(4,460)

(4,460)(4,460)

(4,460)




(426)

(426)(426)

(426)




(4,354)

(4,354)(4,354)

(4,354)




(284)

(284)(284)

(284)





In thousands of dollarsGroup

GroupGroup

Group

Investment Property(156) (189) (345)

Development Property(81) - (81)

Employee Benefits84 58 142

(153)

(153)(153)

(153)




(131)

(131)(131)

(131)




(284)

(284)(284)

(284)





Balance at 1 Jan

Balance at 1 Jan Balance at 1 Jan

Balance at 1 Jan

2023

2023 2023

2023

Recognised in

Recognised in Recognised in

Recognised in

profit or loss

profit or loss profit or loss

profit or loss

Balance at 31 Dec

Balance at 31 Dec Balance at 31 Dec

Balance at 31 Dec

2023

2023 2023

2023

In thousands of dollarsGroup

GroupGroup

Group

Investment Property(345) (4,034) (4,379)

Development Property(81) - (81)

Employee Benefits142 (36) 106

(284)

(284)(284)

(284)




(4,070)

(4,070)(4,070)

(4,070)




(4,354)

(4,354)(4,354)

(4,354)





Balance at 1 Jan

Balance at 1 Jan Balance at 1 Jan

Balance at 1 Jan

2024

2024 2024

2024

Recognised in

Recognised in Recognised in

Recognised in

profit or loss

profit or loss profit or loss

profit or loss

Balance at 31 Dec

Balance at 31 Dec Balance at 31 Dec

Balance at 31 Dec

2024

2024 2024

2024

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 2024

P

age 15

11.

11.11.

11. TRADE AND OTHER RECEIVABLES

TRADE AND OTHER RECEIVABLESTRADE AND OTHER RECEIVABLES

TRADE AND OTHER RECEIVABLES

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

CASH AND CASH CASH AND CASH

CASH AND CASH EQUIVALENTS

EQUIVALENTSEQUIVALENTS

EQUIVALENTS

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

less.

13.

13.13.

13. CAPITAL AND RESERVES

CAPITAL AND RESERVESCAPITAL AND RESERVES

CAPITAL AND RESERVES

Share capital

Share capitalShare capital

Share capital

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 2024, the authorised share capital consisted of 291,823,552 fully paid ordinary shares

(2023: 290,784,833).

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 1,038,719 additional shares under the Dividend Reinvestment Plan on 16 May

2024 (2023: 1,977,136) at a strike price of $0.6961 per share issued (2023: $0.7530).

In thousands of dollarsGroup

GroupGroup

Group

2024

20242024

20242023

20232023

2023

Trade receivables672 325

Other receivables and prepayments6,845 6,253

Trade and other receivables7,517

7,5177,517

7,517




6,578

6,5786,578

6,578





In thousands of dollarsGroup

GroupGroup

Group

2024

20242024

20242023

20232023

2023

Bank balances32,803 2,084

Call deposits- 75

Cash and cash equivalents32,803

32,80332,803

32,803




2,159

2,1592,159

2,159





Company

CompanyCompany

Company

2024

20242024

20242024

20242024

20242023

20232023

20232023

20232023

2023

Shares

Shares Shares

Shares

'000s

'000s '000s

'000s

$000's

$000's $000's

$000's

Shares

Shares Shares

Shares

'000s

'000s '000s

'000s $000's

$000's $000's

$000's

Shares Issued 1 January290,785 67,318 288,808 65,829

Issued under dividend reinvestment plan1,039 723 1,977 1,489

Total shares issued and outstanding291,824

291,824291,824

291,824




68,041

68,04168,041

68,041




290,785

290,785290,785

290,785




67,318

67,31867,318

67,318




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 2024

P

age 16

13.

13.13.

13. CAPITAL AND RESERVES

CAPITAL AND RESERVESCAPITAL AND RESERVES

CAPITAL AND RESERVES


-

--

-


continued

continuedcontinued

continued

Dividends

DividendsDividends

Dividends

The following dividends were declared and paid during the year 31 December 2024:

The following dividends were declared by the directors on 20 February 2025. 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.

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 2024 was based on the profit attributable to ordinary shareholders of $15,381,000

(2023: $13,463,000); and weighted average number of ordinary shares outstanding during the year ended 31

December 2024 of 291,477,000 (2023: 290,126,000), 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)



Weighted average number of

Weighted average number of Weighted average number of

Weighted average number of ordinary shares

ordinary sharesordinary shares

ordinary shares



Earnings per share (basic & diluted)

Earnings per share (basic & diluted)Earnings per share (basic & diluted)

Earnings per share (basic & diluted)



Supplementary dividend and foreign investment tax credit

Supplementary dividend and foreign investment tax creditSupplementary dividend and foreign investment tax credit

Supplementary dividend and foreign investment tax credit



The Company pays a supplementary dividend to portfolio non-resident investors to offset non-resident withholding

tax payable on imputed dividends from the Company. Under the foreign investor tax credit (FITC) rules, the Company

receives a tax credit equal to the supplementary dividend paid. The supplementary dividend is based on the amount

of imputation credit attached to the dividend.



In thousands of dollarsCompany

CompanyCompany

Company

2024

20242024

20242023

20232023

2023

3.5 cents per qualifying oridnary share (2023: 3.5 cents)10,177 10,108

10,177

10,17710,177

10,177




10,108

10,10810,108

10,108





In thousands of dollarsCompany

CompanyCompany

Company

2024

20242024

2024

3.5 cents ordinary dividend per qualitying oridnary share10,214

3.5 cents total dividend per qualitying oridnary share10,214

10,21410,214

10,214





In thousands of dollarsGroup

GroupGroup

Group

2024

20242024

20242023

20232023

2023

Profit for the period15,381 13,463

Profit attributable to ordinary shareholders15,381

15,38115,381

15,381




13,463

13,46313,463

13,463





Company

CompanyCompany

Company

2024

20242024

20242023

20232023

2023

Shares

Shares Shares

Shares

'000s

'000s '000s

'000s

Shares

Shares Shares

Shares

'000s

'000s '000s

'000s

Issued ordinary shares at 1 January290,785 288,808

Effect of 1,038,719 shares issued in May 2024692 -

Effect of 1,977,136 shares issued in May 2023- 1,318

Weighted average number of ordinary shares at 31 December291,477

291,477291,477

291,477




290,126

290,126290,126

290,126





Group

GroupGroup

Group

2024

20242024

20242023

20232023

2023

Basic and Diluted Earnings per share (cents per share)5.28 4.64

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 2024

P

age 17

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.

On initial recognition, a financial asset is classified as subsequently measured at: Amortised cost; FVOCI- debt

investment; FVOCI- equity investment; or FVTPL. Financial liabilities are classified as measured at amortised cost or

FVTPL.

Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business

model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the

first reporting period following the change in the business model.

A financial asset is measured at amortised cost if it meets both of the following conditions and not designated at

FVTPL:

•It is held within a business model whose objective is to hold assets to collect contractual cash flows: and

•Its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest

on the principal amount outstanding.

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 (minimum

rating of Moody’s Aa3) that have a credit rating equal to or better than the Group. Given their high credit ratings,

management does not expect any counterparty to fail to meet its obligations.

At the balance date there were no significant concentrations of credit risk. The maximum exposure to credit risk is

represented by the carrying amount of each financial asset.

In thousands of dollarsGroup

GroupGroup

Group

Note

NoteNote

Note2024

20242024

20242023

20232023

2023

Financial Assets

Financial AssetsFinancial Assets

Financial Assets

Cash and cash equivalents1232,803 2,159

Short term deposits484 50,000

Trade and other receivables117,517 6,578

Financial Liabilities

Financial LiabilitiesFinancial Liabilities

Financial Liabilities

Trade and other payables2,154 3,820

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 2024

P

age 18

14.

14.14.

14. FINANCIAL

FINANCIAL FINANCIAL

FINANCIAL INSTRUMENTS

INSTRUMENTSINSTRUMENTS

INSTRUMENTS


-

--

-


continued

continuedcontinued

continued

Interest rate risk

Interest rate riskInterest rate risk

Interest rate risk

The Group has no debt (2023: nil) and is only 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.

An increase of one percentage point in interest rates would have increased the Group’s profit before income tax by

$473,000 (2023: $641,000) in the current period. Conversely, a decrease of one percentage point in interest rates

would have decreased the Group’s profit before income tax by $473,000 (2023: $641,000) in the current period.

Effective interest and repricing analysis

Effective interest and repricing analysisEffective interest and repricing analysis

Effective interest and repricing analysis



In respect of income earning financial assets, the following tables indicate the effective interest rates at the balance

sheet date and the periods in which they reprice.

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:

Estimation of fair values

Estimation of fair valuesEstimation of fair values

Estimation of fair values



The following summarises the major methods and assumptions used in estimating the fair values of financial

instruments reflected in the above tables.

(a) Cash, accounts receivable, accounts payable and related party receivables. The carrying amount for these

balances approximate their fair value because of the short maturities of these items.

Ca

CaCa

Capital management

pital managementpital management

pital 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.

Group

GroupGroup

Group

2024

20242024

20242023

20232023

2023

Note

NoteNote

Note

Effective

Effective Effective

Effective

interest

interest interest

interest

rate

raterate

rate

Total

TotalTotal

Total6

6 6

6

months

months months

months

or less

or lessor less

or less

6-12

6-126-12

6-12

months

monthsmonths

months

Effective

Effective Effective

Effective

interest

interest interest

interest

rate

raterate

rate

Total

TotalTotal

Total6

6 6

6

months

months months

months

or less

or lessor less

or less

6-12

6-126-12

6-12

months

monthsmonths

months

Cash and cash

equivalents

12

0.00% to

4.25%

32,803 32,803 -

0.00% to

5.77%

2,159 2,159 -

Short term

deposits

5.24% to

5.46%

484 75 409

5.79% to

6.05%

50,000 45,000 5,000

33,287 32,878 409 52,159 47,159 5,000

In thousands of

dollars

In thousands of dollarsGroup

GroupGroup

Group

2024

2024 2024

2024 2023

2023 2023

2023

Balance

Balance Balance

Balance

Sheet

SheetSheet

Sheet

6 months

6 months 6 months

6 months

or less

or lessor less

or less

6-12

6-126-12

6-12

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

6-12

6-126-12

6-12

months

monthsmonths

months

Trade and other payables2,154 2,154 - 3,820 1,625 2,195

2,154

2,1542,154

2,154




2,154

2,1542,154

2,154




-

--

-




3,820

3,8203,820

3,820




1,625

1,6251,625

1,625




2,195

2,1952,195

2,195




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 2024

P

age 19

14.

14.14.

14. FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTSFINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS



––



Capital management

Capital management Capital management

Capital management -

--

-


continued

continuedcontinued

continued

The Group is not subject to any external imposed capital requirements. The allocation of capital is, to a large extent,

driven by optimisation of the return achieved on the capital allocated. The Group’s policies in respect of capital

management and allocation are reviewed regularly by the Board of Directors. There have been no material changes

in the Group’s management of capital during the period.

15

1515

15.

..

. CAPITAL AND LAND DEVE

CAPITAL AND LAND DEVECAPITAL AND LAND DEVE

CAPITAL AND LAND DEVELOPMENT COMMITMENTS

LOPMENT COMMITMENTSLOPMENT COMMITMENTS

LOPMENT COMMITMENTS

As at 31 December 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 2025 in accordance with the Group’s development programme.

16

1

616

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 officer.

Transactions with key management personnel

T

ransactions 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, executive director and executive

officer.

The total remuneration and value of other benefits earned by each of the Directors of the Company for the year ending

31 December 2024 was:

Non-executive directors receive director’s fees only

. The executive director and executive officer 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 inc

luded in “administrative and other expenses” (see Note 3) and

total remuneration of executive director and executive officer is included in “personnel expenses” (see Note 4).

17.

17.17.

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 65.31% (2023: 65.54%) of the Company and

having one out of five of the Directors on the Board. Millennium & Copthorne Hotels New Zealand Limited is 75.86%

(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 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, $431,000 (2023: $427,000) for shared office expenses incurred by the parent on behalf of the

Group and reimbursed its parent for its portion of insurance premiums of $254,000 (2023: $199,000).

During 2024, CDL Investments New Zealand Limited iss

ued no additional shares (2023: Nil) to its parent, Millennium

& Copthorne Hotels New Zealand Limited, under the Dividend Reinvestment Plan (see Note 13). The total shares on

issue to Millennium & Copthorne Hotels New Zealand Limited is 190,591,297 (2023: 190,591,297).

In thousands of dollarsGroup

GroupGroup

Group

2024

20242024

20242023

20232023

2023

Development expenditure24,269 19,743

Land purchases13,261 6,620

37,530

37,53037,530

37,530




26,363

26,36326,363

26,363





In thousands of dollarsGroup

GroupGroup

Group

2024

20242024

20242023

20232023

2023

Non-executive directors126 130

Executive director86 413

Executive officer482 -

694

694694

694




543

543543

543




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 2024

P

age 20

18.

18.18.

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 (2023: $75,000).

19.

19.19.

19. SUBSEQUENT EVENTS

SUBSEQUENT EVENTSSUBSEQUENT EVENTS

SUBSEQUENT EVENTS

Post balance date, the purchase of 6.5 hectares of land for $13.3 million in Hamilton was settled during January 2025.

The settlement will be recognised as an increase in land classified as development property in 2025.

On 20 February 2025, an ordinary dividend of 3.5 cents per qualifying share was declared by the Directors (see Note

13).




© 2025 KPMG, a New Zealand Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,

a private English company limited by guarantee. All rights reserved.


Document classification: KPMG Public


Independent Auditor’s Report

To the shareholders of CDL Investments New Zealand Limited (Group)

Report on the audit of the consolidated financial statements

Opinion

We have audited the accompanying consolidated

financial statements which comprise:

­ the consolidated statement of financial position as

at 31 December 2024;

­ the consolidated statements of comprehensive

income, changes in equity and cash flows for the

year then ended; and

­ notes, including material accounting policy

information and other explanatory information.


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 20 present fairly in all

material respects:

­ the Group’s financial position as at 31

December 2024 and its financial

performance and cash flows for the year

ended on that date;

­ In accordance with New Zealand

Equivalents to International Financial

Reporting Standards (NZ IFRS) issued by

the New Zealand Accounting Standards

Board and the International Financial

Reporting Standards issued by the

International Accounting Standards Board.



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 CDL Investments New Zealand Limited 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), as applicable to audits of financial statements of

public interest entities. We have also fulfilled our other ethical responsibilities in accordance with Professional and

Ethical Standards 1 and the IESBA Code.

Our responsibilities under ISAs (NZ)(Revised) are further described in the Auditor’s responsibilities for the audit of

the consolidated financial statements section of our report.

Our firm has provided other services to the Group in relation to tax compliance, taxation advisory and limited

assurance services in respect of Green House Gas Emissions reporting. 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.









2


Materiality

The scope of our audit was influenced by our application of materiality. Materiality helped us to determine the

nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually

and on the consolidated financial statements as a whole. The materiality for the consolidated financial statements

as a whole was set at $2m determined with reference to a benchmark of the Group’s total assets. We chose the

benchmark because, in our view, this is a key measure of the Group’s performance.


Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of

the consolidated financial statements in the current period. We summarise below those matters and our key audit

procedures to address those matters in order that the shareholders as a body may better understand the process

by which we arrived at our audit opinion.

Our procedures were undertaken in the context of and solely for the purpose of our audit opinion on the

consolidated financial statements as a whole and we do not express discrete opinions on separate elements of the

consolidated financial statements.

The key audit matter How the matter was addressed in our

audit

Capitalisation and allocation of development costs

Refer to Note 8 to the financial

statements.

The group’s development property

comprises land and development costs

incurred to develop land into

subdivisions and individual properties

for sale. The development property

portfolio represents 77% of total assets

on the consolidated statement of

financial position.

The capitalisation and allocation of

development costs is a key audit matter

as determining whether to capitalise or

expense costs relating to development

of the land is subjective, as it depends

on whether the costs enhance the land

or maintain the current value. In

addition, there is significant judgement

in determining whether obligations exist

for future costs and how to allocate

capitalised development costs to

individual properties or stages.

The key judgements used in this

determination are:

Our audit procedures included:

• Evaluating the group’s accounting policy for capitalisation

of development costs using the criteria in the accounting

standard.

• Developing an understanding of the key controls over the

cost capitalisation and allocation process.

• Agreeing a sample of capitalised development costs to

supporting documentation. For each selected transaction

we:

- considered the nature of the costs capitalised and

evaluated whether they are eligible for capitalisation

under the relevant accounting standard.

- assessed the appropriateness of allocation to the

individual project stages and land lots.

• Agreeing a sample of land acquisitions to sales and

purchase agreements, settlement document and cash

payment.

• Performing analytical procedures in relation development

property costs of sales to assess that margins recognised

between periods were appropriate, including considering

alternative methods of allocation.

• Performing a retrospective review of the forecast costs

and cost of sales to ensure the reasonableness of forecast

cost estimation.






3


The key audit matter How the matter was addressed in our

audit

• Whether costs are eligible for

capitalisation under the relevant

accounting standards

• the allocation of capitalised costs to

the individual projects, stages and

land lots and the associated

recognition of cost of sales

• Whether a capitalised cost and the

associated liability for future

obligations should be recorded

under the relevant accounting

standard.

• Evaluating the reasonableness of the group’s judgement

to record liabilities for future obligations and that these

have been appropriately measured and recorded in

accordance with the applicable accounting standard.

• Assessing disclosures included in the consolidated

financial statements in respect of the development

properties using our understanding obtained from our

testing and against the requirements of the accounting

standards.

Our testing did not identify any material exceptions related to

capitalised development costs, the allocation of those costs to

individual project stages and the recognition of future development

cost obligations.



Other information

The Directors, on behalf of the group, are responsible for the other information included in the entity’s Annual

Report and Annual Climate Statement (prepared in accordance with the Aotearoa New Zealand Climate

Standards). Other information in the Annual Report may include the Directors’ Review, disclosures relating to

Corporate Governance, Portfolio information, Financial Summary, and the other information included in the Annual

Report. The Annual Climate Statement discloses information about the effects of climate change on the entity’s

business. 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 Annual Report

and Annual Climate Statement when they become available and consider whether the other information it contains

is materially inconsistent with the consolidated financial statements, or our knowledge obtained in the audit, or

otherwise appear 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 and Annual Climate Statement are 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. 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, none of KPMG, any entities

directly or indirectly controlled by KPMG, or any of their respective members or employees, accept or assume

any responsibility and deny all liability to anyone other than the shareholders for our audit work, this independent

auditor’s report, or any of the opinions we have formed.

Responsibilities of directors for the consolidated financial
statements

The directors, on behalf of the Group, are responsible for:

— the preparation and fair presentation of the consolidated financial statements in accordance with NZ

IFRS issued by the New Zealand Accounting Standards Board and the International Financial Reporting

Standards issued by the International Accounting Standards Board;

— implementing the necessary internal control to enable the preparation of a consolidated set of financial

statements that is free from material misstatement, whether due to fraud or error; and

— assessing the ability of the Group to continue as a going concern. This includes disclosing, as

applicable, matters related to going concern and using the going concern basis of accounting unless

they either intend to liquidate or to cease operations or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the consolidated

financial statements

Our objective is:

— to obtain reasonable assurance about whether the 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 it is not a guarantee that an audit conducted in

accordance with ISAs NZ w ill 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 the

consolidated financial statements.

A further description of our responsibilities for the audit of the consolidated financial statements is located at the

External Reporting Board (XRB) website at:

https://www.xrb.govt.nz/standards/assurance-standards/auditors-responsibilities/audit-report-1-1/


This description forms part of our independent auditor’s report.

The engagement partner on the audit resulting in this independent auditor’s report is Geoff Lewis.

For and on behalf of:

KPMG

Auckland

24 February 2025

---

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

02/05/2025

Ex-Date (one business day before the

Record Date)

01/05/2025

Payment date (and allotment date for

DRP)

16/05/2025

Total monies associated with the

distribution

1


$10,213,824.32

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

05/05/2025 09/05/2025

Date strike price to be announced (if

not available at this time)

12/05/2025

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

05/05/2025

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


24/02/2025






6

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

Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.

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