CDL & CDI ... Another Great Result

[nztx]

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 ....

Yep agree .. and those dividends also have mysterious Imputation Credits attached too

[traineeinvestor]

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 ....

To add to this, there is partial business transformation going on as CDI builds commercial properties to be retained for rental income. There is a lag between the money being deployed to buy the land, obtain planning etc approvals, build and then lease out.

[Southern Lad]

Noting that CDL is planning a large subdivision in Havelock North, given I assume that no construction has commenced it is unlikely the cyclone has had any direct impact.

Thinking of the ability to sell this land once developed, does anyone know how this land lies relative to flood plains, etc.? If these photo's are of the development site (Property developer seeks judicial review over Havelock North land purchase | Stuff.co.nz), it looks to like rolling country which I assume is an advantage.

The events of this week may have changed demand for new subdivisions in the Hawke's Bay, but if the land is well located, maybe demand has been enhanced?

[Fortunecookie]

Noting that CDL is planning a large subdivision in Havelock North, given I assume that no construction has commenced it is unlikely the cyclone has had any direct impact.

Thinking of the ability to sell this land once developed, does anyone know how this land lies relative to flood plains, etc.? If these photo's are of the development site (Property developer seeks judicial review over Havelock North land purchase | Stuff.co.nz), it looks to like rolling country which I assume is an advantage.

The events of this week may have changed demand for new subdivisions in the Hawke's Bay, but if the land is well located, maybe demand has been enhanced?

My guess for new projects, the building/development companies will go into a holding pattern until they hear more about the adaptation plan.

https://www.interest.co.nz/public-po...-he-wants-long

[Sideshow Bob]

AGM Presos/Commentary

http://nzx-prod-s7fsd7f98s.s3-websit...869/394859.pdf

http://nzx-prod-s7fsd7f98s.s3-websit...869/394860.pdf

[BlackPeter]

AGM Presos/Commentary

http://nzx-prod-s7fsd7f98s.s3-websit...869/394859.pdf

http://nzx-prod-s7fsd7f98s.s3-websit...869/394860.pdf

cheers - here are some "snippets" I noted:

While this years sales are roughly half of last years sales (YTD), margins are holding up compared to expectations.

It will be hard to match the 2021 / 2022 earnings (11cps each), but company expects to stay profitable.

No material impact of recent weather events on any of there developments or buildings

Current landbank equals (at average sales rate) 16.5 years.

Company is well cashed up ($71m as per end of April) and well positioned to use the depressed market to look for buying opportunities.

Well positioned of the future ... and quite optimistic.

[BlackPeter]

It was a good week for my NZ portfolio. 2 stocks passed the Golden Cross, and CDI was one of them.

So - Technical indicators looking good ...

Fundamentals looking good as well (remember the value of the landbank per share as well as a 10 year backwards PE of 8)?

Macroeconomic picture with more and more analysts talking about the real estate bottom reached looks good as well.

I like it when the indicators are aligned and pointing upwards ...

[Sideshow Bob]

https://www.nzx.com/announcements/415968

CDL INVESTMENTS TARGETS GROWTHDESPITE LOWER FIRST HALF SALES

NZX-listed property development and investment company CDL Investments New Zealand Limited (NZX:CDI) todayreleased its (unaudited) results for the six months to 30 June 2023 and reported an operating profit after tax of$5.02 million (2022: $22.90 million) on revenue of $11.97 million (2022: $47.81 million).

“The downturn we saw starting last year has continued into 2023 and this has impacted on our sales and revenueto date. We also did not have any one-off high value land sales like we did in 2022 which boosted our half yearresults by $29 million”, said CDI’s Chairman Colin Sim.“That said, we do expect market sentiment to moderate and improve over the remainder of 2023 and into 2024but we also recognise that current economic pressures will not result in any dramatic market upswing, at least thisyear”, he said.

CDI’s Managing Director Jason Adams echoed Mr Sim’s comments but also noted that the current climate createdsome potential new opportunities for CDI.“We are fortunate to have a very solid financial position with no external debt and good cash reserves, which isproving to be very beneficial for us as we look to secure land for future development and sales” he said.“In the past six months we’ve entered into agreements for 48 hectares of new land and we are actively looking atother opportunities that augment our existing development land portfolio, he said.

Mr. Adams also noted that CDI was looking to progress with consents for development at key sites.“At our Iona Block in Havelock North, the Stage 1 resource consents have now been granted and the developmentteam is busy obtaining infrastructure design approvals and preparing infrastructure provision agreements so thatwe can commence site works later this year to begin sales in the second half of next year. The resource consentapplications for Iona Stage 2 have also been lodged with Hastings District and Hawkes Bay Regional Councils”.

“We are also looking to add stages where demand warrants it at Prestons Park in Canterbury and we will pace thework accordingly. Both are critical to our future success”, he said.Mr. Sim said that CDI would remain absolutely focused on its core business during the remainder of the year inorder to maximise its revenue and profit.

“Land development and section sales are what we do and do best. We will be doing whatever we can to maximiseour sales for this year while also preparing the groundwork for next year and beyond. At the same time, we aimto enhance and expand our portfolio so that we can continue to provide our shareholders with consistent returnsover the years ahead”, he said.ENDS

[winner69]

BlackPeter usually first of the mark to tell us the good news

Where is BlackPeter these days?

Probably gone back home to enjoy a bit of warmer weather.

[Bob50]

CDI reported an operating profit after tax of$5.02 million (2022: $22.90 million) on revenue of $11.97 million (2022: $47.81 million).

The last few years they have allocated about $10 millions in dividends, about a third of the after tax profit.
it will be interesting to see if they keep that dividend this year.

In some ways it doesn’t matter in regards to cash flow as the majority shareholder whom holds about 70% of the company usually uses the dividend reinvestment option.