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26-02-2024, 09:24 AM
#631
https://www.nzx.com/announcements/426800
Financial Performance
CDL Investments New Zealand Limited (“CDI”) recorded a profit after tax of $13.5 million for 2023 (2022: $31.2 million) which reflects the challenging trading environment seen over the past twelve months. While the Board is disappointed that the level of profit is significantly less than previous years, it is appreciative of the work put in by Management to achieve the results in 2023. The Board believes that CDI has established a platform for future revenue growth, particularly from the company’s newer residential developments.
Profit before tax for 2023 was commensurate with the company’s performance and was $18.7 million (2022: $43.3 million). Property sales, rental income & other income totalled $31.2 million (2022: $67.3 million). There were no one-off gains from land sales in 2023 as compared to $29 million recognised in the previous year.
At year end, CDI’s shareholders’ funds increased to $313.7 million (2022: $308.9 million) and total assets also increased to $319.2 million (2022: $313.7 million). Net tangible assets per share (at book value) also increased to 107.9 cents (2022: 107.0 cents).
CDI’s property holdings as at 31 December 2023 as independently valued was $412.6 million (2022: $405.4 million). This takes into account new acquisitions made in 2023 as well as the sales recorded. At cost, the portfolio was valued at $260.4 million (2022: $239.5 million) in line with CDI’s accounting policies.
Property Portfolio
In 2023, we purchased and settled a total of 37.5 hectares of land. Our acquisitions were in the Waikato, Nelson / Marlborough and Canterbury regions with the majority being new projects, not adjacent to existing land holdings. Management is working on development schemes and resource consent applications for these new acquisitions to allow development work to commence in the near term.
Post balance date, the purchase of 10.8 hectares of land in Nelson was settled during January 2024.
Residential sales in 2023 were strongest at Prestons Park (Christchurch) with a small number of sales coming from the Auckland subdivisions (Kewa Road & Christian / Tram Valley Road), which are now sold out.
Solid progress has been made at our Iona Block development in Havelock North where we have secured resource consents for Stage 1 and commenced construction. We are confident that works will progress to a stage where off-the-plan sales can start in Q2 2024. The Stage 2 resource consent has been lodged and is currently being processed by Hastings District and Hawkes Bay Regional Councils.
CDI’s commercial projects including the warehouses in Wiri, South Auckland and the neighbourhood centres located at Prestons Park and Stonebrook are performing as expected and contributed $2.5 million, representing approximately 8% of total revenue in 2023. The high inflationary environment during 2023 impacted lease conversion rates with a number of tenants unable to secure sufficient finance to proceed.
Dividend Announcement
The Board resolved to maintain its fully imputed ordinary dividend at 3.5cents per share payable on 17 May 2024. The Board carefully considered the dividend amount and decided to provide a consistent return to shareholders. This is a sign of the confidence the Board has in the company’s future prospects. The level of dividend will allow the company to retain enough cash resources to allow completion of its development work during this year.
The record date will be 3 May 2024. The Dividend Reinvestment Plan will apply to this dividend.
Summary and Outlook
The dramatic downward market shifts we encountered from the end of 2022 (which carried into 2023) should not continue into 2024. With a new government promising reform of convoluted consent processes and the prospect of some additional fast-tracking, we feel that residential property development as a whole should stabilise during 2024 and start to tick upward through 2025, if not earlier.
Market conditions are presenting some interesting opportunities which the Board has asked Management to assess and consider carefully. We are encouraging Management to broaden their horizons and look at property types and potential acquisitions in the residential and commercial spheres which they may not have considered previously.
For those reasons, the Board and Management currently expect CDI’s revenues and profits in 2024 to be better than those in 2023. Further updates will be provided as the year progresses. The Board and Management share an optimistic outlook for 2024, particularly if sales from Havelock North commence before the end of the year. We will be doing everything practicable to keep to our development timelines so our sales targets can be met.
I would like to offer my thanks to our loyal shareholders on behalf of the Board for your invaluable support during 2023.
Colin Sim
Chairman
26 February 2024
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27-05-2024, 07:35 PM
#632
Annual Meeting tomorrow morning. Unfortunately, I won't be able to watch as I've made an appointment with the dentist at the same time - hopefully the meeting will be more enjoyable.
The share price has dropped a bit the last few days, so hopefully that doesn't foreshadow bad news. The announcement above in February was positive, so hoping nothing has changed in the past 3 months.
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28-05-2024, 09:45 AM
#633
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28-05-2024, 12:50 PM
#634
Member
Plenty to look forward to methinks.I predict that they will purchase much more land.
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28-05-2024, 02:53 PM
#635
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28-05-2024, 05:50 PM
#636
Originally Posted by beetills
Plenty to look forward to methinks.I predict that they will purchase much more land.
It certainly seems so. I doubt this company will ever set the world on fire, but it's looking a little more exciting. I'm a happy holder - although I would like the dividend to be paid twice a year rather than just the once.
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12-07-2024, 09:46 AM
#637
https://www.nzx.com/announcements/434381
CDI has today entered into unconditional agreements via its wholly owned subsidiary CDL Land New Zealand Limited for the purchase of 10.08 hectares of land located in Burnside, Christchurch for a total cost of $17.1 million. The land will become part of the wider Industrial Park Precinct and will be developed into multiple industrial lots.
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05-08-2024, 07:50 AM
#638
Member
Interestingly a $4m deferred tax adjustment on commercial Buildings that are only $35m
Seems a lot .....
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05-08-2024, 08:34 AM
#639
Originally Posted by Not too Flash
Interestingly a $4m deferred tax adjustment on commercial Buildings that are only $35m
Seems a lot .....
You are referring to the 1st August press release on tax changes relating to the removal of the structural tax deductability of commercial buildings?
"CDI notes that the adjustment will be a one-off, non-cash deferred tax expense which will be recognised in the current financial year and will have no impact on CDI’s trading profitability or cash flows. CDI has been assessing the impact of the change and sought external accounting and taxation advice since the passing of the law change."
That is, on the surface, a very peculiar announcement to make, because the tax changes announced are not a 'one off'. They apply to every year the company remains in business in the future from here on. So what is going on here?
SNOOPY
Watch out for the most persistent and dangerous version of Covid-19: B.S.24/7
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05-08-2024, 08:50 AM
#640
Originally Posted by Snoopy
You are referring to the 1st August press release on tax changes relating to the removal of the structural tax deductability of commercial buildings?
"CDI notes that the adjustment will be a one-off, non-cash deferred tax expense which will be recognised in the current financial year and will have no impact on CDI’s trading profitability or cash flows. CDI has been assessing the impact of the change and sought external accounting and taxation advice since the passing of the law change."
That is, on the surface, a very peculiar announcement to make, because the tax changes announced are not a 'one off'. They apply to every year the company remains in business in the future from here on. So what is going on here?
SNOOPY
No impact on trading profit Snoops …..ie profit before tax and one-offs
Of course real NPAT will be impacted
Also nobody affected by these changes seem to make any mention of what prior year NPaT would have been so an apples to apples comparison could be seen
”When investors are euphoric, they are incapable of recognising euphoria itself “
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