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CDI FY2025 Results Announcement

Full Year Results23 February 2026CDIReal Estate

Page 1
CDL Investments New Zealand Limited

Consolidated Statement of Comprehensive Income

For the year ended 31 December 2025

The a

ccompanying notes form part of and should be read in conjunction with these financial statements.

Statement of Comprehensive Income

Continuing Ope ra tions

Group

In thousands of dollarsNote20252024

Property sales34,549 46,049

Rental income3,568 3,010

Re ve nue38,117 49,059

Co st o f sa le s(17,205) (19,274)

Gross profit20,912 29,785

Other income19 28

Ad ministra tive e xp e nse s3, 4(1,270) (1,070)

Property expenses(864)(712)

Selling expenses(1,025) (1,291)

Other e xp e nse s3, 4(2,737) (2,351)

Results from operating activities15,035 24,389

Finance income5407 2,381

Finance costs5(8) (9)


N

e t fina nce inco me399 2,372

Profit before income tax15,434 26,761

Inco me ta x e xp e nse6(4,368) (11,380)

Pro fit fo r the p e rio d11,066 15,381

T otal co mprehe nsive inco me fo r the pe rio d11,066 15,381

Profit Attributable to:

Equity holders11,066 15,381

11,066 15,381

Basic and diluted earnings per share (cents per share)133.78 5.28

T o ta l co mp re he nsive inco me a ttrib uta b le to :

Equity hold ers

Page 2
CDL Investments New Zealand Limited

Consolidated Statement of Changes in Equity

For the year ended 31 December 2025

The a

ccompanying notes form part of and should be read in conjunction with these financial statements.

Statement of Changes in Equity

Group

In thousands of dollarsNote

Share

Ca p ita l

Retained

Earnings

Total

Equity

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

Total comprehensive income for the period

Profit for the period- 15,381


15,381

Total comprehensive income for the period-15,381


15,381

Transactions with owners of the Company

Shares issued under dividend reinvestment plan13723 - 723

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

Supplementary dividend13- (221)(221)

Fo reig n inve stme nt ta x cre d its13- 221


221

Balance at 31 Dece mbe r 202468,041 251,611 319,652

Balance at 1 January 202568,041 251,611 319,652

Total comprehensive income for the period

Profit for the period- 11,066


11,066

Total comprehensive income for the period-11,066


11,066

Transactions with owners of the Company

Shares issued under dividend reinvestment plan13674 - 674

Dividend to shareholders13- (10,214) (10,214)

Supplementary dividend13- (229)(229)

Fo reig n inve stme nt ta x cre d its13- 229


229

Balance at 31 Dece mbe r 202568,715 252,463 321,178

Page 3
CDL Investments New Zealand Limited

Consolidated Statement of Financial Position

As at 31 December 2025

For an

d on behalf of the Board

D JAMESO

N, DIRECTOR, 24 February 2026 J ELRICK, DIRECTOR, 24 February 2026

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

Statement of Financial Position

Group

In thousands of dollarsNo te20252024

SHAREHOLDERS' EQUITY

Issued capital1368,715 68,041

Retained earnings252,463 251,611

T o ta l e q uity321,178 319,652

Represented by:

NON CURRENT ASSETS

Property, plant and equipment87 70

Development property8257,854 222,077

Inve stme nt p ro p e rty935,525 36,301

Investment in associate2 2

T ota l non current a ssets293,468 258,450

CURRENT ASSETS

Cash and cash equivalents1213,440 32,803

Short term deposits12484 484

Trade and other receivables116,613 7,517

Development property817,620 29,368

Total current assets38,157 70,172

T o ta l a s s e ts331,625 328,622

NON CURRENT LIABILITIES

Deferred tax liabilities104,432 4,354

Lease Liability26 23

Total non current liabilities4,458 4,377

CURRENT LIABILITIES

Trade and other payables14, 164,860 2,154

Employee entitlements152 151

Income tax payable947 2,254

Lease Liability30 34

Total current liabilities5,989 4,593

Total liabilities10,447 8,970

N e t a s s e ts321,178 319,652


Page 4

CDL Investments New Zealand Limited

Consolidated Statement of Cash Flows

For the year ended 31 December 2025



















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


Statement of Cash Flows

Group

In thousands of dollarsNo te20252024

CASH FLOWS FROM OPERAT ING ACT IVIT IES

Ca sh wa s p ro vid e d fro m:

Receipts from Customers40,490 48,007

Inte re s t R e c e iv e d409 2,850

Ca sh wa s a p p lie d to :

Payments to suppliers(28,051) (27,317)

Payments to employees4(1,657) (1,286)

Deposits paid on unconditional contracts for development land- (663)

Purchase of development land(14,811) (23,720)

Income tax paid(5,370) (6,000)

Ne t cash o utflo w fro m op e ra ting a ctivitie s(8,990) (8,129)

CASH FLOWS FROM INVESTING ACTIVITIES

Ca sh wa s p ro vid e d fro m:

Short term deposits- 50,000

Ca sh wa s a p p lie d to :

Development of investment property9(535) (1,017)

Purchase of plant and equipment(25) (2)

Short term deposits- (484)

Ne t cash (outflow)/inflo w from inve sting activitie s(560) 48,497

CASH FLOWS FROM FINANCING ACTIVITIES

Ca sh wa s a p p lie d to :

Dividend paid(9,540) (9,454)

Principal repayment of lease liability(36) (40)

Lease liability interest component(8) (9)

Supplementary dividend paid(229) (221)

Ne t cash o utflo w fro m financing a ctivitie s(9,813) (9,724)

Net increase/(decrease) in cash and cash equivalents(19,363) 30,644

Add opening cash and cash equivalents32,803 2,159

Closing cash and cash equivalents1213,440 32,803


Page 5



CDL Investments New Zealand Limited

Consolidated Statement of Cash Flows - continued

For the year ended 31 December 2025



































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

Group

In thousands of dollarsNo te20252024

Net profit after taxation11,066 15,381

Adjusted for non cash items:

Depreciation of investment property554 550

Depreciation of plant and equipment7 8

Depreciation of right-of-use assets37 39

Inco me ta x e xp e nse64,368 11,380

Inte re s t Exp e ns e8 9

Adjustments for movements in working capital:

Decrease / (Increase) in receivables1,661 (939)

Increase in development property(24,027) (26,904)

Increase/(decrease) in payables2,706 (1,653)

Cash co nsume d from o pe rating activitie s(3,620) (2,129)

Income tax paid(5,370) (6,000)

Cash o utflow fro m op erating a ctivities(8,990) (8,129)

RECONCILIAT ION OF PROFIT FOR T HE PERIOD

TO CASH FLOWS FROM OPERATING ACTIVITIES

CDL Investments New Zealand Limited
Notes to the Consolidated Financial Statements

For the year ended 31 December 2025


Page 6

MATERIAL ACCOUNTING POLICIES


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 2025 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) 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 2026.


(b) 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 except

where IFRS requires fair value to be used.


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) Basis of consolidation


(i) 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) 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


CDL Investments New Zealand Limited
Notes to the Consolidated Financial Statements

For the year ended 31 December 2025


Page 7


Material accounting policies - continued


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 2% are ascribed to building core.


(e) 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 at a point in time. 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.


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.


Rental income from investment properties under operating leases is recognised over time 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.


(f) New standards and interpretations not yet adopted

A number of amendments to standards are effective for annual periods beginning after 1 January 2026 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 2027.


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.


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

2.

Annual Improvements to NZ IFRS Accounting Standards – Volume 11

3.

NZ IFRS 18 Presentation and Disclosure in Financial Statements


(g) New currently effective standards

The Group adopted all amended standards that became effective during the prior 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 further information.

CDL Investments New Zealand Limited
Notes to the Consolidated Financial Statements

For the year ended 31 December 2025


Page 8



1. SEGMENT REPORTING


Operating segments

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

residential land sections and rental income from 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

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 dollars2025 2024 2025 2024 2025 2024

Exte rna l re ve nue34,970 46,313 3,147 2,746 38,117 49,059

Earnings before interest,

depreciation, amortisation & tax12,493 22,255 3,140 2,731 15,633 24,986

Fina nce inco me407 2,381 - - 407 2,381

Fina nce co sts(8) (9) - - (8) (9)

Depreciation and amortisation(7) (8) (554) (550) (561) (558)

Depreciation of right-of-use assets(37) (39) - - (37) (39)

Profit before income tax12,848 24,580 2,586 2,181 15,434 26,761

Inc o me ta x e xp e ns e(3,644) (6,852) (724) (4,528) (4,368) (11,380)

Profit

after income ta x

9,204

17,728 1,862 (2,347) 11,066 15,381

Cash & cash equivalents and short

term bank deposits13,924 33,287 - - 13,924 33,287

Investment in associates2 2 - - 2 2

Other segment assets282,174 259,032 35,525 36,301 317,699 295,333

T o ta l a sse ts296,100 292,321 35,525 36,301 331,625 328,622

Segment liabilities(5,068) (2,362) - - (5,068) (2,362)

Tax liabilities(884) (2,229) (4,495) (4,379) (5,379) (6,608)

T o ta l lia b ilitie s(5,952) (4,591) (4,495) (4,379) (10,447) (8,970)

Plant and equipment expenditure25 2 - - 25 2

Investment property expenditure- - 535 1,017 535 1,017

Residential land development

expenditure26,424 22,458 - - 26,424 22,458

Purcha se o f la nd fo r re sid e ntial la nd

development 14,811 23,720 - - 14,811 23,720

Residential land

development

Investment propertyGroup

CDL Investments New Zealand Limited
Notes to the Consolidated Financial Statements

For the year ended 31 December 2025


Page 9

2. ACCOUNTING 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:

 The assessment of impairment indicators for investment properties (refer to note 9 for key assumptions and

estimates used).

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


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

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. There are no indicators of

impairment as assessed by management. In addition, the Group has engaged an independent valuer to corroborate

the net realisable value base exceeding the carrying value of development properties and confirm the absence of

impairment (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 are no indicators

of impairment. 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.


Climate-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
Notes to the Consolidated Financial Statements

For the year ended 31 December 2025


Page 10


3. ADMINISTRATIVE AND OTHER EXPENSES


The following items of expenditure are included in administrative and other expenses:





4. 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. 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. INCOME TAX EXPENSE


Recognised in the statement of comprehensive income





In thousands of dollarsGroup

No te20252024

Fees incurred for services received from audit firm

- Audit fees current year100 104

- Out of scope audit fees relating to prior year- 6

- Tax preparation services & GST advice21 4

- Greenhouse gas reporting assurance4 26

Non audit firm sustainability advisory 139 -

Depreciation598 597

Directors' fees16145 126

Rental payments90 90

In thousands of dollarsGroup

20252024

Wages and Salaries1,371 1,045

Employee related expenses and benefits281 236

Increase in liability for long-service leave7 5

1,659 1,286

In thousands of dollarsGroup

20252024

Finance income407 2,381

Finance costs(8) (9)

N e t fina nc e inc o me399 2,372

In thousands of dollarsGroup

20252024

Current tax expense

Curre nt ye ar4,245 7,336

Adjustments for prior years46 (26)

4,291 7,310

D e fe rre d ta x e xp e ns e

Origination and reversal of temporary differences77 4,070

77 4,070

Total income expense in the statement of comprehensive income4,368 11,380

CDL Investments New Zealand Limited
Notes to the Consolidated Financial Statements

For the year ended 31 December 2025


Page 11

6. INCOME TAX EXPENSE - continued


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

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

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 the 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 was recognised within the year ended 31 December 2024.










In thousands of dollarsGroup

20252024

Profit before income tax15,434 26,762

Inco me ta x using the co mp a ny ta x ra te o f 28% (2024: 28%)4,322 7,493

Removal of deductibility of tax depreciation for industrial and commercial buildings- 3,913

Adjustment in respect of prior years46 (26)

4,368 11,380

Effective tax rate (excluding one-off changes on tax depreciation impact related to 2024)28%28%

CDL Investments New Zealand Limited
Notes to the Consolidated Financial Statements

For the year ended 31 December 2025


Page 12

6. INCOME TAX EXPENSE - continued


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 2025. 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. IMPUTATION CREDITS




8. 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 (2024: 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. Across the development portfolio there were no indicators of impairment. The annual

process of independent valuations being carried out by Extensor Advisory Limited corroborates the Group’s

development property balances carried. The management team evaluate the assessment of impairment indicators

and confirm the recorded development property balance is lower than the net realisable value.














In thousands of dollarsGroup

20252024

Imputation credits available for use in subsequent periods100,133 98,506

In thousands of dollarsGroup

20252024

Expected to settle greater than one year257,854 222,077

Expected to settle within one year17,620 29,368

Development property275,474 251,445

CDL Investments New Zealand Limited
Notes to the Consolidated Financial Statements

For the year ended 31 December 2025


Page 13


9. INVESTMENT PROPERTY




Investment properties are stated at cost less accumulated depreciation and accumulated impairment losses.

Depreciation on the investment properties is computed by asset classes using the policy disclosed in Note (d). Cost

includes expenditure that is directly attributable to the acquisition of the investment properties. Costs of self-

constructed investment properties include costs of materials and direct labour, any other costs directly attributable

to bringing the investment properties to a working condition for their intended use and capitalised borrowing costs.

Gains and losses on disposal of investment properties (calculated as the difference between the net proceeds from

disposal and the carrying amounts of the investment properties) are recognised in the profit and loss.


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. 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.


Impairment

During the year, management performed an assessment of indicators of impairment which includes annual reviews

of the carrying amounts of investment properties. No indicators of impairment were identified.


The fair value of investment properties held at 31 December 2025 was determined by an independent registered

valuer, DM Koomen SPINZ of Extensor Advisory Limited as $69.9 million (2024: $65.1 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.


In thousands of dollarsGroup

Freehold

La nd


Buildin

gs

Work in

Progress Total

Co st

Ba la nce a t 1 Ja nua ry 2024659 36,717 - 37,376

Additions- - 1,017 1,017

Transfers between categories- - - -

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

Ba la nce a t 1 Ja nua ry 2025659 36,717 1,017 38,393

Additions- - 535 535

Reclassify to other assets- - (757) (757)

Transfers between categories- 118 (118) -

Balance at 31 December 2025659 36,835 677 38,171

Depreciation and impairment losses

Ba la nce a t 1 Ja nua ry 2024- (1,542) - (1,542)

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

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

Ba la nce a t 1 Ja nua ry 2025- (2,092) - (2,092)

Depreciation charge for the year- (554) - (554)

Balance at 31 December 2025- (2,646) - (2,646)

Ca rrying a mounts

Ba la nce a t 1 Ja nua ry 2024659 35,175 - 35,834

Ba lance at 31 De cemb er 2024659 34,625 1,017 36,301

Ba la nce a t 1 Ja nua ry 2025659 34,625 1,017 36,301

Ba lance at 31 De cemb er 2025659 34,189 677 35,525

CDL Investments New Zealand Limited
Notes to the Consolidated Financial Statements

For the year ended 31 December 2025


Page 14


9. INVESTMENT PROPERTY – Impairment – continued


Average market capitalisation rates appropriate to the properties range from 5.00% to 6.88% (2024: 4.50% to

7.25%). Average market rent per square metre rates appropriate to the properties range from $275 to $476 (2024:

$263 to $450). There is no impairment expense recognised in the period (2024: no impairment).


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 2025 was $3.1 million (2024: $2.7 million).


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

received after the reporting date:



10. 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 year






In thousands of dollarsGroup

20252024

Within 1 Year3,336 2,745

More than 1 year but within 2 years3,377 2,793

More than 2 years but within 3 years3,339 2,835

More than 3 years but within 4 years2,359 2,784

More than 4 years but within 5 years814 1,947

After 5 years787 708

14,012 13,812

In thousands of dollarsGroup

AssetsLiabilitiesNet

202520242025202420252024

Investment Property- - (4,495) (4,379) (4,495) (4,379)

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

Employee Benefits144 106 - - 144 106

N e t ta x a s se ts/(lia b ilitie s )144 106 (4,576) (4,460) (4,432) (4,354)

In thousands of dollarsGroup

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

Development Property(81) - (81)

Employee Benefits142 (36) 106

(284) (4,070) (4,354)

Balance at 1 Jan

2024

Recognised in

profit or loss

Balance at 31 Dec

2024

In thousands of dollarsGroup

Investment Property(4,379) (116) (4,495)

Development Property(81) - (81)

Employee Benefits106 38 144

(4,354) (78) (4,432)

Balance at 1 Jan

2025

Recognised in

profit or loss

Balance at 31 Dec

2025

CDL Investments New Zealand Limited
Notes to the Consolidated Financial Statements

For the year ended 31 December 2025


Page 15

11. TRADE AND OTHER RECEIVABLES




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 incorporates forward looking information and relevant macroeconomic factors. Based on this view, none of the

trade and other receivables are impaired.


12. CASH AND CASH EQUIVALENTS




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

less.


13. CAPITAL AND RESERVES


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 2025, the authorised share capital consisted of 292,672,296 fully paid ordinary shares

(2024: 291,823,552).


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 848,744 additional shares under the Dividend Reinvestment Plan on 16 May 2025

(2024: 1,038,719) at a strike price of $0.7947 per share issued (2024: $0.6961).




In thousands of dollarsGroup

20252024

Trade receivables403 672

Sundry receivables4,017 4,506

Prepayments, bonding & others2,193 2,339

Trade and other receivables6,613 7,517

In thousands of dollarsGroup

20252024

Bank balances13,440 32,803

Call deposits484 -

Cash and cash equivalents13,924 32,803

Co mp a ny

2025202520242024

Shares

'000s $000's

Shares

'000s $000's

Shares Issued 1 January291,824 68,041 290,785 67,318

Issued under dividend reinvestment plan849 674 1,039 723

Total shares issued and outstanding292,673 68,715 291,824 68,041

CDL Investments New Zealand Limited
Notes to the Consolidated Financial Statements

For the year ended 31 December 2025


Page 16

13. CAPITAL AND RESERVES - continued


Dividends

The following dividends were declared and paid during the year 31 December 2025:




The following dividends were declared by the directors on 24 February 2026. 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

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 2025 was based on the profit attributable to ordinary shareholders of $11,066,000

(2024: $15,381,000); and weighted average number of ordinary shares outstanding during the year ended 31

December 2025 of 292,389,381 (2024: 291,477,312), calculated as follows:


Profit attributable to ordinary shareholders (basic & diluted)




Weighted average number of ordinary shares



Earnings per share (basic & diluted)




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 dollarsCo mp a ny

20252024

3.5 ce nts p e r q ua lifying o rid na ry sha re (2024: 3.5 ce nts)10,214 10,177

10,214 10,177

In thousands of dollarsCo mp a ny

2025

1.0 cents ordinary dividend per qualifying ordinary share2,927

1.0 cents total dividend per qualifying ordinary share2,927

In thousands of dollarsGroup

20252024

Profit for the period11,066 15,381

Profit attributable to ordinary shareholders11,066 15,381

Company

20252024

Shares

'000s

Shares

'000s

Issued ordinary shares at 1 January291,824 290,785

Effect of 1,038,719 shares issued in May 2024- 692

Effe ct o f 848,744 sha re s issue d in Ma y 2025530 -

Weighted average number of ordinary shares at 31 December292,354 291,477

Group

20252024

Basic and Diluted Earnings per share (cents per share)3.78 5.28

CDL Investments New Zealand Limited
Notes to the Consolidated Financial Statements

For the year ended 31 December 2025


Page 17

14. 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 typically recognised at fair value. After an initial recognition, non-derivative

financial instruments deemed financial assets are characterised at amortised cost; FVOCI- debt investment; FVOCI-

equity investment; or FVTPL. Non-derivative financial instruments deemed financial liabilities are characterised

amortised cost or FVTPL.


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.




* These prior period comparative amounts have been restated to exclude non-financial assets and liabilities such as

prepayments, deposits paid for asset purchases and revenue in advance.


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. Exposure to credit and interest rate risks arises in the normal course of the

Group’s business.


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.


Interest rate risk

The Group has no debt (2024: 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.


In thousands of dollarsGroup

No te2025

2024*

Financia l Assets

Cash and cash equivalents1213,440 32,803

Short term deposits12484 484

Trade and other receivables111,137 1,653

Financial Liabilities

Trade payables2,622 936

Related party payables16116 -

Other accruals & provisions1,122 811

CDL Investments New Zealand Limited
Notes to the Consolidated Financial Statements

For the year ended 31 December 2025


Page 18

14. FINANCIAL INSTRUMENTS - continued


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

$118,640 (2024: $473,000) 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 $118,640 (2024: $473,000) in the current period.


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 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

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

instruments reflected in the above tables.


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

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


Capital management

The Group’s capital includes share capital and retained earnings.


The Group’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and

to sustain future development of the business. The impact of the level of capital on shareholders’ return is also

recognised and the Group recognises the need to maintain a balance between the higher returns that might be

possible with greater gearing and the advantages and security afforded by a sound capital position.


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

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

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

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



Group

20252024

N o te Effe c tiv e


interest

rate

Total6

mo nths

or less

6-12

months

Effe c tiv e


interest

ra te

Total6

months

or less

6-12

mo nths

Cash and cash

equivalents

12

0.00% to

4.25%

13,440 13,440 -

0.00% to

4.25%

32,803 32,803 -

Sho rt te rm

deposits

3.51% to

3.74%

484 - 484

5.24% to

5.46%

484 75 409

13,924

13,440 484 33,287 32,878 409

In thousands of

dollars

In thousands of dollarsGroup

2025 2024

Balance


Sheet

6

months

or less

6-12


months

Balance


Sheet

6

months

or less

6-12


mo nths

Trade and other payables3,860 3,860 - 2,154 2,154 -

3,860 3,860 - 2,154 2,154 -

CDL Investments New Zealand Limited
Notes to the Consolidated Financial Statements

For the year ended 31 December 2025


Page 19

15. CAPITAL AND LAND DEVELOPMENT COMMITMENTS


As at 31 December 2025, the Group had entered into contractual commitments for development expenditure and

unconditional purchases of land. Within the Groups land development commitments, two properties remain

unconditional with extended settlement terms. CDI are yet to assume any control of these properties which govern

their treatment as an asset and any financial liability. Development expenditure represents amounts contracted and

forecast to be incurred in 2026 and future years in accordance with the Group’s development programme.




16. 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.


During the year, CDL Investments New Zealand Limited and its subsidiary has incurred costs from its parent,

Millennium & Copthorne Hotels New Zealand Limited of $596,787 (2024: $685,000) for shared office expenses,

insurance premiums and recoverable recharges passed through at cost. As of 31 December 2025, $480,870 of these

related party transactions had been settled and $115,917 remained outstanding and are included in trade payables

(2024: $ Nil).


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 2025 was:




Non-executive directors receive director’s fees only. The executive officer received short-term employee benefits

which include a base salary and an incentive plan. They do not receive remuneration or any other benefits as a

director of the Company or its subsidiary.


Total remuneration of non-executive directors is included in “administrative and other expenses” (see Note 3) and

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


17. GROUP ENTITIES


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 65.12% (2024: 65.31%) of the Company and

having one out of five of the Directors on the Board. Millennium & Copthorne Hotels New Zealand Limited is 83.84%

(2024: 75.86%) 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 2025, CDL Investments New Zealand Limited issued no additional shares (2024: 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 (2024: 190,591,297).




In thousands of dollarsGroup

20252024

Development expenditure29,949 24,269

La nd p urcha se s4,913 13,261

34,862 37,530

In thousands of dollarsGroup

20252024

Non-executive directors145 126

Executive director- 86

Executive officer485 482

630 694

CDL Investments New Zealand Limited
Notes to the Consolidated Financial Statements

For the year ended 31 December 2025


Page 20

18. 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 (2024: $75,000).



19. SUBSEQUENT EVENTS


On 24 February 2026, an ordinary dividend of $0.01 per qualifying share was declared by the Directors (see Note 13).




© 2026 KPMG, a New Zealand Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,

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


Document classification: KPMG Confidential


Independent Auditor’s Report

To the shareholders of CDL Investments New Zealand Limited

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 2025;

- 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

2025 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) 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 and tax advisory services, as well

as limited assurance work on climate related disclosure. Subject to certain restrictions, partners and employees

of our firm may also deal with the Group on normal terms within the ordinary course of trading activities of the

business of the Group. These matters have not impaired our independence as auditor of the Group. The firm has

no other relationship with, or interest in, the Group.


Materiality

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

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

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

as a whole was set at $1.3m determined with reference to a benchmark of the Group’s profit before tax. We

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






2


Key audit matters

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

the consolidated financial statements in the current period. 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 consolidated

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 83% 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

the development of the land is

subjective and depends on whether

the costs are recoverable as costs of

conversion. 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:

- 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.

Our audit procedures included:

- Evaluating the Group’s accounting policy for capitalisation of

development costs against NZ IAS 2;

- Testing the design and implementation, as well as operating

effectiveness of internal review of allocation of costs to

projects or stages;

- Testing samples of capitalised development costs and

vouched to supporting documents. For each selected sample,

we:

— Considered the nature of the costs capitalised and

evaluated whether they are eligible for capitalisation

under NZ IAS 2;

— Assessed the appropriateness of the allocation of cost to

the individual project and stages;

— Compared the amount capitalised against amounts per

supporting documents;

- Inspecting Sales and Purchase Agreements, settlement

statements and cash payments for land acquisitions during

the reporting period. We further assessed the accounting

treatment for unsettled land acquisitions for which the Group

has paid a deposit prior to the year-end;

- Performing analytical procedures to assess appropriateness

of the margins across periods of sale;

- Performing a retrospective review of the forecast costs and

cost of sales to assess management’s ability to forecast

future costs accurately based on readily available information;

- 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 standards;

- Assessing the accuracy and completeness of disclosures

made in the Consolidated Financial Statements of the Group

against results of our testing and against the requirements of

the accounting standards.

Our testing did not identify any material exceptions related to the

capitalisation of development costs, the allocation of those costs to

individual project stages and the recognition of future development

cost obligations.






3




Other information

The directors, on behalf of the Group, are responsible for the other information. The other information comprises

the Directors’ Review, NZX Results Announcement, and Media Release (but does not include the consolidated

financial statements and our auditor’s report thereon), which we obtained prior to the date of this auditor’s report,

and the Group’s Annual Report, which is expected to be made available to us after that date.

Our opinion on the consolidated financial statements does not cover any other information and we do not

express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements our responsibility is to read the other

information and in doing so, consider whether the other information is materially inconsistent with the

consolidated financial statements or our knowledge obtained in the audit or otherwise appears materially

misstated.

If, based on the work we have performed on the other information that we obtained prior to the date of this

auditor’s report, we conclude there is a material misstatement of this other information, we are required to report

that fact. We have nothing to report in this regard.

When we read the Annual Report, if we conclude that there is a material misstatement therein, we are required to

communicate the matter to directors and use our professional judgement to determine the appropriate action to

take.


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.








4


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 will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate, they

could reasonably be expected to influence the economic decisions of users taken on the basis of 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 Matthew Wilcox.


For and on behalf of:




KPMG

Auckland

24 February 2026

---

Results announcement



.


Results for announcement to the market

Name of issuer CDL Investments New Zealand Limited

Reporting Period 12 months to 31 December 2025

Previous Reporting Period 12 months to 31 December 2024

Currency NZD

Amount (000s) Percentage change

Revenue from continuing

operations

$38,136 (22.31%)

Total Revenue $38,136 (22.31%)

Net profit/(loss) from

continuing operations

$11,066 (28.05%)

Total net profit/(loss) $11,066 (28.05%)

Interim/Final Dividend

Amount per Quoted Equity

Security

$0.01000000

Imputed amount per Quoted

Equity Security

$0.00388889

Record Date 01 May 2026

Dividend Payment Date 15 May 2026

Current period Prior comparable period

Net tangible assets per

Quoted Equity Security (in

dollars and cents per

security)

$1.097 $1.095

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

Abigail Wong

Contact person for this

announcement

Abigail Wong

Contact phone number 09 353 5074

Contact email address Abbi.Wong@cdli.co.nz

Date of release through MAP


24 February 2026


Audited financial statements accompany this announcement.

---

DIRECTORS’ REVIEW
Overview

T

he Board of CDL Investments New Zealand Limited (“CDI”) reflects on a year in which the Company

continued to progress its development programme and position the business for the future, against a

backdrop of softer residential market conditions.

T

hroughout 2025, easing inflation and mortgage interest rates were not sufficient to materially lift

purchaser confidence. Broader economic pressures continued to influence buying decisions, resulting

in lower levels of transactional activity across the sector. In this environment, the Board’s focus

remained on disciplined capital management, progressing active developments, preserving balance

sheet strength and flexibility, and capitalising on softer market conditions to pursue strategic portfolio

acquisitions.

Financial performance

F

or the year ended 31 December 2025, CDI recorded a profit after tax of $11.1 million (2024: $15.4

million). Property sales and other income totalled $38.1 million (2024: $49.1 million), reflecting the

subdued residential sales environment experienced throughout the year.

S

hareholders’ funds remained strong at $321.2 million (2024: $319.7 million), with total assets of

$331.6 million (2024: $328.6 million). Net tangible assets per share at book value were 109.7 cents

(2024: 109.5 cents), underlining the strength of the Company’s asset base.

Development activity

D

espite softer market conditions, CDI continued to advance its consented and active developments

during the year.

D

evelopment progressed at Iona in Havelock North through Stages 1 and 2, while construction was

completed at Prestons Park in Christchurch, with Stages 4 and 6 finalised. The Canterbury region

continued to perform well for the Company, reflecting the benefits of CDI’s regional diversification.

C

onstruction of the land development phase also commenced at the Company’s Wairakei Road

industrial development in Christchurch, supporting the continued focus on diversification by expansion

of the commercial and industrial portfolio.

The Company also entered into agreements to purchase strategic land holdings in Havelock North

(0.36 ha) and Hamilton (1.63 ha), further strengthening CDI’s position in relation to its Fast-t rack

applications.

Development pipeline and planning environment

The timing of commencement of some future developments continues to be influenced by evolving

planning and land-use settings at national and regional levels. This period of transition has required

councils to reassess growth sequencing and land classifications, adding complexity and extending

timeframes across the sector.

T

hese factors have contributed to constraints within CDI’s development pipeline which has resulted

in CDI considering ways it can expedite inventory constraint issues. In response, CDI has maintained

flexibility across its landholdings, carefully staged investment, and progressed consent pathways

where possible to improve certainty of delivery.

During the year, the Company lodged a Fast-track application for its Arataki Road development in
Havelock North and expects a decision in the first quarter of 2026. Progress also continued on

preparations for Fast-track applications of the Company’s large-scale residential and industrial

development in Hamilton and its future urban land at Iona, Havelock North.

P

ortfolio diversification

C

DI’s industrial and commercial assets continued to provide earnings resilience during the year,

reflecting a deliberate diversification strategy commenced in 2019 to moderate exposure to residential

market cycles.

O

ur industrial assets at Wiri, Auckland remained fully tenanted, and retail leasing activity progressed

our Prestons Park retail centre in Christchurch despite challenging retail sector conditions. The retail

centre at our Stonebrook subdivision in Rolleston is fully leased. The Board considers this

diversification an important contributor to the Company’s ability to manage earnings volatility through

the cycle.

People, governance and capability

D

uring the year, CDI continued to invest in organisational capability to support its long-term strategy.

At governance level, the Board was strengthened with the addition of independent non-executive

director Julian Smith, who brings 15 years of governance, strategic and transformational experience.

At an operational level, the appointment of a General Counsel and Company Secretary, and a

Financial Controller were welcomed new members to the team.

T

hese appointments build on CDI’s existing governance and management capability and reflect the

Board’s focus on ensuring the Company remains well-equipped to manage regulatory, financial and

operational requirements as the development pipeline progresses.

O

utlook

Look

ing ahead, the Board remains cautiously optimistic while expecting any recovery in residential

demand to be gradual over a period of time and influenced by broader economic conditions.

C

DI enters the next financial year with a strong balance sheet, a refreshed and experienced Board

and management team, and a development pipeline that supports long-term value creation. The

Board remains focused on disciplined capital allocation, leveraging prevailing market conditions to

make strategic acquisitions, progressing consented and Fast-track projects, and ensuring the

Company is well-positioned for the future.

Desleigh Jameson

Board Chair

24 February 2026

---

24 February 2026
CDL INVESTMENTS REPORTS 2025 RESULT, PROGRESSES

DEVELOPMENT PIPELINE

CDL Investments New Zealand Limited (NZX: CDI) today reported its financial results for the

year ended 31 December 2025, reflecting subdued residential market conditions

alongside

continued progress across its active development portfolio and pipeline.

Chair Desleigh Jameson said 2025 had been a challenging year for the residential property

sector, with market confidence remaining constrained despite easing inflation and mortgage

interest rates.

“Cost-of-living pressures and broader economic uncertainty continued to influence purchasing

decisions, wit h many buyers

adopting a cautious, wait -and-see approach”, s he said.

Against this backdrop, CDI reported profit after tax of $11.1 million (2024: $15.4 million) on

property sales and other income of $38.1 million (2024: $49.1 million).

Dividend Announcement

The Board has taken a balanced approach to reward shareholders for another profitable year against

the company’s need to retain cash to fund its forward development works, Fast-track projects and

potential future acquisitions. The Board has resolved to provide shareholders a fully imputed ordinary

dividend of 1 cent per share payable 15 May 2026.

The record date will be 1 May

2026. The Dividend Reinvestment Plan will apply to this dividend.

Active development delivery continues

Despite softer market conditions, CDI continued to advance its consented and active

developments during the year.

At Iona in Havelock North, development progressed through Stages 1 and 2, while construction

was completed at Stage 4 and 6 at Prestons Park in Christchurch. Christchurch has continued

to perform well for the Company, reflecting the benefits of CDI’s regional diversification.

Earthworks also commenced at the Company’s Wairakei Road industrial development in

Christchurch, continuing momentum across CDI’s commercial and industrial portfolio.

Chief Executive Officer Jason Adams

said the focus during the year had been on progressing

developments that were construction-ready and aligned with long-term demand.

“While residential sales activity has been subdued, we have continued to advance our active

developments and invest in the infrastructure that supports future growth”, he said.

Pipeline timing influenced by planning transition

Future developments continue to be influenced by evolving land-use and planning settings at

national and regional levels. This period of transition has required councils to reassess growth

and land classifications, adding complexity and extending timeframes across the sector. In

response, CDI has focused on maintaining flexibility across its landholdings, carefully staging

investment, and progressing consents where possible to improve delivery certainty.

24 February 2026
The Company’s future urban land at Iona was considered through the Napier-Hastings Future

Development Strategy process. An Independent Hearing Panel recommended the land be

included, although councillors subsequently made the decision not to include it. In response,

CDI commenced the urban zoning of this land through the Fast-track process.

T

he Company also lodged a Fast-track application for its Arataki Road development in Havelock

North and expects a decision in the first quarter of 2026. Progress continued on preparations for

Fast-track applications of the Company’s large 130 hectare Hamilton residential and industrial

development. The Company has also entered into agreements to purchase strategic land

holdings in Havelock North (0.36 ha) and Hamilton (1.63 ha), further strengthening CDI’s position

in relation to the Fast-t rack applications.

Diversified portfolio supporting resilience

C

DI’s industrial and commercial assets continued to provide earnings resilience during the year.

This reflects a deliberate diversification strategy commenced in 2019 to reduce reliance on

residential market cycles.

The Company’s industrial warehouses remained fully tenanted, and construction of the land

development phase commenced at Wairakei Road. While retail leasing conditions remained

challenging across the sector, CDI completed leasing activity at its Stonebrook retail centre in

Rolleston and secured two new leases at Prestons Park retail centre in Christchurch, during the

year.

R

esidential demand signals and outlook

R

esidential enquiry levels improved toward the end of the year, particularly in the period leading

up to Christmas. While this has yet to flow through to contracted sales at scale, management

considers these signals encouraging.

Mr

Adams said any recovery is expected to be gradual.


Based on current conditions, we are cautiously optimistic and anticipate any recovery in

residential demand to be gradual over a period of time and influenced by the broader economic

environment. Our focus remains on disciplined capital management and ensuring we are well

positioned as confidence returns.”

D

uring the year, CDI also strengthened its internal management team capability with key

appointments including a dedicated In-house General Counsel/ Company Secretary, Ms Abigail

Wong and Financial Controller/ Accountant, Mr Geoff Donley, strengthening the Company’s

position for the future.

Ms

Jameson said the Board remained cautiously optimistic about the long-term outlook.

“While economic headwinds and election-year dynamics may continue to influence the pace of

recovery, CDI enters 2026 with cautious optimism, a refreshed and experienced Board and

management team, and a development pipeline that supports long-term value creation.”

C

DI will continue to prioritise disciplined capital allocation while progressing consented and Fast-

track projects, and leveraging prevailing market conditions to pursue strategic acquisitions,

ensuring the Company remains well positioned for the next phase of the market cycle.

24 February 2026
Summary of results


Profit after tax


Profit before tax


Property sales & other income


Shareholders’ funds


Total assets


Net tangible asset value (at book value)

•Earnings per share

$11.1 million (2024: $15.4 million)

$15.4 million (2024: $26.7 million)

$38.1 million (2024: $49.1 million)

$321.2 million (2024: $319.7 million)

$331.6 million (2024: $328.6 million)

109.7 cents per share (2024: 109.5cps)

3.78 cents per share (2024: 5.28cps)

A

bout 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.

EN

DS

I

ssued by CDL Investments New Zealand Limited

E

nquiries to:

Jason Adams, Chief Executive Officer

j

ason.adams@cdli.co.nz

027 683 7220

---

Distribution Notice
Please note: all cash amounts in this form should be provided to 8 decimal places, including zeros (ie 0.01001000)

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 01/05/2026

Ex-Date (one business day before the

Record Date)

30/04/2026

Payment date (and allotment date for

DRP)

15/05/2026

Total monies associated with the

distribution

1


$ 2,926,722.96

Source of distribution (for example,

retained earnings)

Retained earnings

Currency NZD

Section 2: Distribution amounts per financial product

Gross distribution

2


$ 0.01388889

Gross taxable amount

3


$ 0.01388889

Total cash distribution

4


$ 0.01000000

Excluded amount (applicable to listed

PIEs)

n/a

Supplementary distribution amount

$ 0.00176471

Section 3: Imputation credits and Resident Withholding Tax

5


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.

Is the distribution imputed Fully imputed
Partial imputation

No imputation

If fully or partially imputed, please

state imputation rate as % applied

6


28%

Imputation tax credits per financial

product

$0.00388889

Resident Withholding Tax per

financial product

$0.00069444

Section 4: Distribution re-investment plan (if applicable)

DRP % discount (if any)

Nil

Start date and end date for

determining market price for DRP

04/05/2026 08/05/2026

Date strike price to be announced (if

not available at this time)

11/05/2026

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

04/05/2026

Section 5: Authority for this announcement

Name of person


authorised to make

this announcement

Abigail Wong (Company Secretary)

Contact person for this

announcement

Abigail Wong (Company Secretary)

Contact phone number

09 353 5074

Contact email address

abbi.wong@cdli.co.nz

Date of release through MAP


24/02/2026

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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