CDL & CDI ... Another Great Result

[BlackPeter]

FYI these are the same results that were released last month.

Of course they are ... why should the mid year results change after the event?

[LaserEyeKiwi]

Of course they are ... why should the mid year results change after the event?

Yes - but seeing reaction as if this was a new announcement when everything in this report was already disclosed.

[beetills]

Another year another 3.5c but a lot better than nothing

[Sideshow Bob]

Another year another 3.5c but a lot better than nothing

EPS of $0.108, so at todays price of 75c, that's a PE of a shade under 7. 4.66% divvy yield.

Dividend costs them $10m, rest on to the balance sheet. NTA $1.07, and at that probably conservatively valued.

Market loves it.....

[Sideshow Bob]

CDI.jpg
...........

[clearasmud]

Another year another 3.5c but a lot better than nothing

Yes this business is capital hungry with a drp and a payout ratio of 33%.
Nta is $1.07, 40% about the current share price of 76.5c
Not much excitement here, no shareprice growth in over 5 years.

[traineeinvestor]

The $1.07 NTA is based on book value.

The actual NTA is actually higher because (rather unusually) CDL values it's development properties at the lower of cost and net realisable value (note 8) and values it's investment properties at cost less accumulated depreciation and accumulated impairment losses (note 9).

The investment properties have a book value of $36.4 million and a market value of $62.6 million (note 9). As these are intended to be held long term, the difference of $26.2 million needs to be added to book value of the assets to get the real NAV. This adds about 9 cents per share to the NAV.

For the development properties, I didn't see a number in note 8 to the financial statements for the current market value but given the policy of having it in the accounts at the lower of cost and realisable value, I would assume market value is likely higher than the carrying value of $203.1 million but how much higher is a complete guess (and any guess needs to reflect the likely taxes payable on realisation).

Based on the above I would be highly surprised if the actual tax adjusted NAV was less than $1.20 per share.

[Bob50]

Profit is the same/less than 2017. Yet NTA has increased 50% in that time. If my business was 50% bigger yet making no extra profit- I would be concerned.

[Fortunecookie]

The $1.07 NTA is based on book value.

The actual NTA is actually higher because (rather unusually) CDL values it's development properties at the lower of cost and net realisable value (note 8) and values it's investment properties at cost less accumulated depreciation and accumulated impairment losses (note 9).

The investment properties have a book value of $36.4 million and a market value of $62.6 million (note 9). As these are intended to be held long term, the difference of $26.2 million needs to be added to book value of the assets to get the real NAV. This adds about 9 cents per share to the NAV.

For the development properties, I didn't see a number in note 8 to the financial statements for the current market value but given the policy of having it in the accounts at the lower of cost and realisable value, I would assume market value is likely higher than the carrying value of $203.1 million but how much higher is a complete guess (and any guess needs to reflect the likely taxes payable on realisation).

Based on the above I would be highly surprised if the actual tax adjusted NAV was less than $1.20 per share.

I admire the management team of CDI and MCK. They have done an excellent job and I think they will continue to do so. I agree NAV is great, more or less came to the same estimate. But I cannot stop thinking it is a value trap. Sure you are unlikely to lose your money. MCK might move on travel sentiment, but I am quite exposed to a travel stock that it has yet to be played out in full. CDI may find it difficult in the next financial year given the relationship to interest rates/ housing market. Just my thoughts

[BlackPeter]

Profit is the same/less than 2017. Yet NTA has increased 50% in that time. If my business was 50% bigger yet making no extra profit- I would be concerned.

You might need to rethink this statement.

2017 was the middle of the (not just property-) boom with everybody making money and 2022 a tough second COVID year and property prices dropping.

Any property company delivering in 2022 time the same profit as 2017 (even with larger capital outlay) did an amazing job.

Context does matter ....