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CDL lifts dividend on 19% profit rise

on Friday 9 February 2018 in CDL Investments, Gainz, Sectors, Securities – NZ

CDL Investments NZ Ltd lifted after-tax profit by 19% in the year ended 31 December, from $27 million to $32.2 million – the 8th consecutive year of profit growth for the company. And, like its majority shareholder, Millennium & Copthorne Hotels NZ Ltd, it’s also lifted its dividend.

Profit before tax increased to $44.7 million ($37.5 million). Property sales & other income rose 5.6% to $78.7 million ($74.5 million).

Shareholders’ funds as at 31 December increased to $186.1 million ($161.8 million) and the company’s total assets stood at $191.7 million ($168.3 million). The net tangible asset/share (at book value) was 67.1c (58.4c). Earnings/share were 11.6c (9.77c).

Reflecting the record result, CDL has increased its fully imputed ordinary dividend to 3.5c/share (3.0c/share). The dividend reinvestment plan will apply.

Land portfolio

At 31 December, the independent market value of CDL’s landholdings was $276.3 million ($297.0 million). The company’s accounting policies require it to carry the value of its land portfolio at the lower of cost or net realisable value and, at year end, the land portfolio at cost was $124.7 million ($117.8 million).

Outlook

New chair Colin Sim said the New Zealand housing stock & new housing supply remained short of demand: “This can explain why, while housing sales have eased, pricing has only evened out. The Reserve Bank’s loan:value ratio (LVR) restrictions & the availability of finance have both had an effect on the New Zealand housing market. That said, although not as strong as in 2016, demand for CDL housing sections remained steady in 2017.

Mr Sim expected the Overseas Investment Amendment Bill, which the Government proposed in December, to have minimal impact on CDL’s business model of acquiring land for residential development.

“The proposed new Government measures classifying residential housing land as ‘sensitive land’ is a demand-side measure and aimed ‘not to impede the broader objective of increasing the supply of residential housing’. As a development company in housing sections, CDL has consistently demonstrated its ‘financial commitment, business experience & acumen & good character’ with its commitment to increasing the supply of sections for housing.

“The Overseas Investment Amendment Bill in its current form may, however, have unintended consequences. These include the number of consent applications & time required to process them. Both measures are expected to increase, with significant delays & costs to the housing industry.”

Attribution: Company release.

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CDL more than doubles land investment warchest

on Monday 7 August 2017 in CDL Investments, Gainz, Sectors, Securities – NZ

NZX-listed residential subdivider CDL Investments NZ Ltd has increased its investment warchest by $40 million in the last 12 months while depleting its landholdings by $20 million (at cost) over the last 18 months.

All up, the debt-free company has over $71 million ready to invest in new subdivision land when prices turn downward.

Managing director BK Chiu said that, while the housing market had shown the characteristic lower winter activity, CDL had seen continued demand in Auckland, Hamilton & Christchurch, where the company has its major subdivision projects.

“However, buyers & builders are more selective for well-constructed & located housing sections. This underlying demand remains steady in Auckland & Hamilton, where further sales are expected in the second half of 2017.”

Mr Chiu said sales were strongest in the Greville Rd subdivision in Auckland, Magellan Heights in Hamilton and Prestons Park outside Christchurch. The company has completed stage 1 of Prestons Park and is progressing with stage 2, and is preparing land in the 2 northern subdivisions for sale this year and in 2018.

CDL said on Friday it made an unaudited after-tax operating profit of $20.39 million in the June half, up 27.8% on the $15.95 million in the first half of 2016.

Pretax operating profit rose 27.8% to $28.32 million ($22.16 million) on revenue up 19.3% to $51.04 million ($42.78 million).

Property sales & other income rose 19.3% to $51.04 million ($42.78 million).

Net asset backing/share (at cost) was up 15.4% to 62.8c (54.4c).

Basic & diluted earnings/share rose 27.4% to 7.35c (5.77c).

The company has total equity of $174.3 million, comprising $54.3 million of share capital & $120 million of retained earnings, up from total equity of $161.8 million in December and $150.7 million in June last year.

Its non-current land development portfolio has been reduced from $88.7 million last June to $84.6 million in December and $79.9 million this June, while its current development portfolio increased from $32.9 million to $33.1 million in December, falling to $26.7 million this June.

CDL has increased its holdings of cash, cash equivalents & short-term deposits from $31.5 million a year ago to $71.6 million.

In December, the independent market value of CDL’s landholdings was $297 million, up $32 million in a year, but the company’s accounting policies require it to carry the value of its land portfolio at the lower of cost or net realisable value. On its last 2 year-end balance dates, the land portfolio at cost was valued at $126.6 million in 2015 and $117.8 million in 2016. In this half-year report, it was valued at $106.5 million.

CDL is 66.6%-owned by Millennium & Copthorne Hotels NZ Ltd, which in turn is 70.2%-owned, ultimately, by the Hong Leong Group of Singapore.

Attribution: Company release.

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Section sales boost CDL return

on Friday 5 August 2016 in CDL Investments, Gainz, Sectors, Securities – NZ

A 33.6% jump in residential section sales lifted returns right through CDL Investments NZ Ltd in the June half, and flowed through to the returns for Millennium & Copthorne Hotels NZ Ltd (see separate story).

CDL Investments lifted its pretax operating profit by 89% to $22.16 million ($11.7 million), and after-tax by 87% to $15.95 million ($8.51 million).

Property sales & other income rose by 79% to $42.78 million ($23.89 million). Net asset backing (at cost) rose 14.3% to 54.4c/share (47.6c/share).

The company increased section sales by 33.6% to 171 (128). Company chair Wong Hong Ren said demand was strongest in Auckland & Canterbury. The company has completed the last stage of its Rolleston subdivision in Christchurch, Stonebrook, and expects to complete final sales by the end of 2016.

Mr Wong said the current level of sales activity should continue in the second half of the year.

Attribution: Company release.

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CDL launches Prestons Park

on Friday 27 November 2015 in Canterbury, CDL Investments, Gainz, Neighbourhoods, Sectors, Securities – NZ, South Island

NZX-listed residential property developer CDL Investments NZ Ltd launched the sales programme for its Prestons Park development in Christchurch yesterday.

The development sits on 75ha between Prestons & Mairehau Rds, 6.5km north-east of the Christchurch cbd, and is part of the 203ha Prestons subdivision, which is designed to be a sustainable urban village containing 2500 houses for 8000 residents. It’s a joint-venture development between Ngai Tahu Property Ltd, CDL Land & Foodstuffs South Island Ltd.

CDL Investments managing director BK Chiu said CDL’s launch was the culmination of nearly a decade’s work of acquisition, planning & development. The first 52 sections went on the market yesterday, out of a total first stage of 260 sections and a total 730 over the 75ha.

Attribution: Company release.

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Corrected: Propbd on Q Th30July15 – 4 units sell at Ray White auction, CDL slips, Heartland on track

on Friday 31 July 2015 in Apartments, CBD and fringe, CDL Investments, Gainz, Heartland, Market, propbd on Q, Sectors, Securities – NZ

4 apartments sell at Ray White’s
CDL Investments makes modest gain
Heartland expects profit at top of guidance range

Corrected 31 July:
CDL Investments NZ Ltd’s after-tax result fell 3.6%. I wrote yesterday that it rose by 3.6%. The actual profit figures are unchanged.

2.07pm:
4 apartments sell at Ray White’s

4 of the 5 cbd apartments taken to auction at Ray White City Apartments today were sold under the hammer. Auction results:

The Crescent, 36 Eden Crescent, unit 101, sold for $370,000, sales agents Mitch Agnew & Krister Samuel
Aura, 53 Cook St, unit 1102, passed in at $351,000, Daniel Horrobin & Damian Piggin
Altitude, 34 Kingston St, unit 8H, sold for $316,000, Leo Zhu
Fiore, 152 Hobson St, unit 602, sold for $409,000, Aileen Wu
The Quadrant, 10 Waterloo Quadrant, unit 1318, sold for $280,000, May Ma & Mark Li

Corrected: CDL Investments slips

Correction: I wrote yesterday that CDL made a modest gain of 3.6%, when its after-tax result was down 3.6%.

CDL Investments NZ Ltd’s after-tax operating profit fell by 3.6% in the first half to $8.2 million ($8.5 million last year), on pretax profit up 2.6% to $11.7 million ($11.4 million) and revenue down 4.1% to $23.9 million ($24.9 million).

The company sold 128 sections in the latest period, down from 133 this time last year.

Net asset backing increased by 7.4% to 47.6c/share (44.3c).

Chairman Wong Hong Ren said the listed land developer expected to start sales at its Prestons Rd subdivision outside Christchurch by the end of the year. The company has started earthworks on its 100-lot Kewa Rd subdivision, off Lonely Track Rd beside the Northern Motorway at Albany Heights.

Heartland expects profit at top of guidance range

Heartland NZ Ltd said today it expects net profit after tax for the June year to be about $48 million, at the upper end of the guidance range of $46-48 million.

The company intends to announce its annual result on Tuesday 18 August.

Chief executive Jeff Greenslade also said today that, given heightened market interest in the dairy sector, the banking company’s exposure to dairy was 7.6% of its total lending book: “The average loan:value ratio (LVR) for Heartland’s dairy exposures is 61%. However, it is important to note that LVRs are only one of the indicators of loan quality.

“Where Heartland’s dairy clients are experiencing financial stress as a result of lower dairy payout forecasts, we are actively working with them to fund working capital shortfalls where appropriate and ensuring they have access to appropriate support, including emotional support through the Rural Support Trust & Farmstrong.”

Heartland’s preliminary forecast range for net profit after tax in 2015-16 is $51-55 million, including an allowance for estimated impairments.

Attribution: Auction, company releases.

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CDL lifts return

on Wednesday 11 February 2015 in CDL Investments, Gainz, Sectors, Securities – NZ

CDL Investments NZ Ltd increased net profit after tax by 9.7% last year to $14.7 million ($13.4 million in 2013), on the sale of 248 sections (202).

The NZX-listed land subdivider increased pretax profit by 10.7% to $20.5 million ($18.6 million) on revenue up 15.2% to $44.2 million ($38.4 millio).

Shareholders’ funds rose $9.6 million to $128.5 million, total assets $10.2 million to $130.5 million, net tangible asset value (at book value) 3.3c to 46.6c/share and earnings/share to 5.35c (4.92c).

The company will pay an increased fully imputed ordinary dividend of 2.2c/share (2c/share) on 15 May and the dividend reinvestment plan will apply.

At 31 December, the independent value of CDL Investments’ landholdings was $206.0 million ($177.5 million). The company acquired 4.1ha in Auckland during the year.

Attribution: Company release.

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CDL lifts sales & profit, warns of market softening, buys more land in Auckland

on Friday 1 August 2014 in CDL Investments, Gainz, Sectors, Securities – NZ

CDL Investments NZ Ltd has lifted its half-year operating profit before & after tax by 43.3%.

Before tax, the increase was from just under $8 million to $11.4 million. After tax, the increase was from $5.7 million to $8.2 million.

CDL increased property sales & other income by 62.3%, from $15.4 million to $24.9 million, and lifted net asset backing at cost from 40.5c to 44.3c/share.

Chairman Wong Hong Ren said yesterday CDL lifted section sales from 68 in the first half last year to 133 this year, at its developments at Harrowglen in Auckland, Magellan in Hamilton and Stonebrook in Rolleston, Christchurch. The company also acquired a further 4.1ha in Auckland.

Mr Wong said the company had completed additional stages at its Hamilton & Rolleston subdivisions, and earthworks were well advanced at the Prestons Rd subdivision in Christchurch, with civil works starting.

Despite the strong performance, Mr Wong said the market showed signs of softening. However, the company was targeting a comparable profit level to last year, given the level of unconditional sales it has on hand.

Attribution: Company release.

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CDL says it needs big cash holding to replenish stocks

on Wednesday 28 May 2014 in CDL Investments, Gainz, Sectors, Securities – NZ

CDL Investments NZ Ltd rejected a shareholder claim at the annual meeting yesterday that it had capital lying idle which could be distributed or put to other use.

CDL, one of 2 NZX-listed companies controlled by the Hong Leong Group of Singapore, had total assets of $120 million at its 31 December balance date, including $33 million in cash, and $119 million of shareholders’ equity. Its liabilities totalled just $1.47 million.

But managing director BK Chiu said buying development land wasn’t cheap: “We had a look at a piece of land – $40 million. So a chest of $25 million, even $40 million, is not big, and we need to replenish our land base.”

The chairman, Wong Hong Ren, said it was important for the company to seize opportunities when they arose, but also to be able to ride out low points in the cycle, as it had done during the global financial crisis.

CDL lifted section sales from 123 in 2012 to 202 last year. First-quarter settlements rose from 22 last year to 54 this year, and first-quarter unconditional agreements rose from 153 to 205.

Longtime director Rob Challinor retired at yesterday’s annual meeting. Mr Challinor, 72, a chartered accountant, corporate advisor & investment banker, was a director of CDL for 9 years. He was a partner at Deloitte for 17 years before moving into a number of business fields, including directorships of numerous prominent entities.

Picture: CDL’s latest Auckland subdivision, on Greville Rd, Albany.

Attribution: Annual meeting.

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Propbd on Q T27May14 – M&C investors may get stake in Chinese developer, CDL lifts section sales, supermarket site sells, alcohol policy panel named

on Tuesday 27 May 2014 in Agency, Auckland Council, Browns Bay, CDL Investments, Colliers International, Councils, Cut fresh, Gainz, Land use, Market, Millennium and Copthorne, Neighbourhoods, North-east, propbd on Q, Sectors, Securities – NZ

Millennium & Copthorne shareholders likely to get individual stakes in Chinese developer
CDL lifts section sales
Old Browns Bay New World site sells
Alcohol policy hearings panel named

4.20pm:
Millennium & Copthorne shareholders likely to get individual stakes in Chinese developer

Shareholders in Millennium & Copthorne Hotels NZ Ltd will be offered a return of capital in the form of shares if the Singapore listing of a Chinese associate, First Sponsor Group Ltd, proceeds.

Millennium & Copthorne chairman Wong Hong Ren outlined the complicated structure for the annual meeting in Auckland today. First Sponsor lodged its preliminary prospectus with the Monetary Authority of Singapore on Friday.

Millennium & Copthorne NZ shareholders will get a scheme document on the proposal as it affects them, early in June, and a special meeting has been scheduled for Thursday 19 June. Under the scheme they would get a proportion of shares in the New Zealand company and the balance in First Sponsor Group shares. Although the First Sponsor shares would be listed in Singapore, Mr Wong said a facility would be available for these New Zealand shareholders to sell here.

Among other annual meeting points, managing director BK Chiu said the company hoped to start the conversion of the Copthorne Auckland Harbourcity Hotel on Quay St into a Millennium hotel in mid-2015.

He wants a quick redevelopment, effectively ruling out more complicated consents for extending towards the street or adding floors on top.

CDL lifts section sales

CDL Investments (NZ) Ltd lifted section sales from 123 in 2012 to 202 last year. First-quarter settlements rose from 22 last year to 54, and first-quarter unconditional agreements rose from 153 last year to 205.

The latest figures were released at the company’s annual meeting in Auckland this morning.

Old Browns Bay New World site sells (pictured above)

The 1747m² old New World site at 2 Bute Rd, Browns Bay, sold for $2.625 million at Colliers International’s auction today.

The first of 3 smaller retail properties along Clyde Rd, all in the New World sale package, sold while the other 2 were passed in.

The unit to sell, at Nos 52-56 Clyde Rd, went for $2.4 million at a 7.29% yield.

Alcohol policy hearings panel named

Cllr Bill Cashmore will chair the hearings panel on Auckland Council’s local alcohol policy. The council’s hearings committee also appointed Cllrs Denise Krum, Penny Webster & George Wood and a member of the Independent Maori Statutory Board to the panel.

The submissions period is expected to run from mid-June to mid-July, followed by hearings in late August & September.

Attribution: Company meetings, auction, council committee meeting.

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Section sales lift CDL profit 44%

on Sunday 16 February 2014 in CDL Investments, Gainz, Sectors, Securities – NZ

CDL Investments NZ Ltd increased profit after tax by 44.1% to $13.4 million in 2013 ($9.3 million in 2012) as land sales & development increased. Pretax profit rose by $5.7 million to $18.6 million on sales up 64% to $18.6 million from 202 section sales (123 the previous year).

Shareholders’ funds stood at $118.9 million ($106.5 million in 2012) at 31 December, just short of total assets at $120.3 million ($108 million). CDL had net tangible assets/share (at book value) of 43.3c (39.6c) and earnings/share of 4.92c (3.5c). Chairman Wong Hong Ren said on Friday the independent value of CDL’s landholdings at 31 December was $177.5 million ($157.9 million). The company acquired 5.5ha in Auckland during the year.

Mr Wong said the Reserve Bank’s decision to lift the loan:value ratio restrictions for new-build homes would have a positive impact on CDL’s section sales: “Our focus for 2014 will be ensuring that the company has sufficient stock to continue to sell & develop at a positive rate. Our sales activity will again be focused in Auckland, Hamilton & Canterbury and we are excited by the prospect of our first sales at Prestons Rd, Christchurch by the end of the year.”

The company will pay an increased fully imputed ordinary dividend of 2c/share and its dividend reinvestment plan will apply.

Attribution: Company release.

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