CDL & CDI ... Another Great Result

**LaserEyeKiwi** · 21-02-2022, 11:14 AM

CDL updated their earnings report this morning with an addition:

https://www.nzx.com/announcements/387528

With regard to the Directors’ Review released as part of CDI’s FY2021 results announcement last Friday, the last paragraph of the Financial Performance section should have read as follows:

As at 31 December 2021, the independent market value of CDI’s property holdings was $359.7 million (2020: $292.8 million) which reflects the acquisitions made in 2021. At cost, the portfolio was valued at $209.1 million (2020:$164.8 million) in line with CDI’s accounting policies.

They had a typo in Fridays earnings version that listed the “At cost” value of $290.1 million (vs 209.1 million as the correct figure).

The correction now shows the true gap between the “at cost” value they give as their NTA, and the true market value of the company. Note that the independent market value of CDLs property holdings at $359.7million excludes the net cash on hand which exceed $70 million, meaning the true market value of CDL assets is north of $430 million / above $1.50c per share.

(So I agree with you Waiken in a ballpark NTA over $1.50 and approaching your $1.60 figure)

**WAIKEN** · 21-02-2022, 04:39 PM

Thanks Laser
Their retention of commercial property is a sound move adding more diversity to earnings.
Maybe they may look at a residential build to rent model like KPG are going to undertake.

**beetills** · 21-02-2022, 04:56 PM

Have share shares in a Yank co that does that.APTS now the subject of a takeover by Blackrock.Divies have been good as well as the SP increasing.Would love to see CDL do it.

**hyinvest** · 21-02-2022, 05:48 PM

As a beignner investor, I wonder why certain companies like to show the fair value gain on properties (e.g.PFI) as part of their income whereas others don't do that (e.g. CDI)?

**BlackPeter** · 21-02-2022, 06:32 PM

Originally Posted by hyinvest

As a beignner investor, I wonder why certain companies like to show the fair value gain on properties (e.g.PFI) as part of their income whereas others don't do that (e.g. CDI)?

You might need to look into the interests of the majority (of) shareholders ... CDI is majority owned by a company group which has neither interest in nor any need to to brag with its wealth. It might well exist as a vehicle to hide wealth.

That's different for other companies who either need to compete for share holders (and management might be rewarded for high share prices) or who might have share holders who want to raise their "personal value" in order to boost their ego (imagine the infamous and unloved ex-US president).

**hyinvest** · 21-02-2022, 06:46 PM

Originally Posted by BlackPeter

You might need to look into the interests of the majority (of) shareholders ... CDI is majority owned by a company group which has neither interest in nor any need to to brag with its wealth. It might well exist as a vehicle to hide wealth.

That's different for other companies who either need to compete for share holders (and management might be rewarded for high share prices) or who might have share holders who want to raise their "personal value" in order to boost their ego (imagine the infamous and unloved ex-US president).

Very well explained. Many thanks BP.

**DarkHorse** · 21-02-2022, 08:27 PM

Originally Posted by LaserEyeKiwi

CDL updated their earnings report this morning with an addition:

https://www.nzx.com/announcements/387528

They had a typo in Fridays earnings version that listed the “At cost” value of $290.1 million (vs 209.1 million as the correct figure).

The correction now shows the true gap between the “at cost” value they give as their NTA, and the true market value of the company. Note that the independent market value of CDLs property holdings at $359.7million excludes the net cash on hand which exceed $70 million, meaning the true market value of CDL assets is north of $430 million / above $1.50c per share.

(So I agree with you Waiken in a ballpark NTA over $1.50 and approaching your $1.60 figure)

Thank you for pointing that out LEK - I'd used the incorrect figure divided into market value to calculate adjusted NTA - no wonder the total came out much lower than I expected!

**Sideshow Bob** · 01-04-2022, 08:14 AM

Winton came out with an announcement on the Havelock North land purchase, but CDL didn't.....

367877.pdf (nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com)