CDL Investments New Zealand Limited Analysis

Overview

CDL Investments New Zealand Limited is an Auckland-headquartered land development company which undertakes development of land into residential subdivisions.

It currently has active development sites in Auckland, Hamilton, Hawkes Bay and Canterbury.

Over the past thirty years, it has made significant land purchases and successfully completed numerous subdivision projects in Auckland, Hamilton, Tauranga, Havelock North, Nelson, Christchurch, Rolleston (Canterbury) and Queenstown.

It is majority owned by NZX-Listed Millennium & Copthorne Hotels New Zealand Limited (NZX:MCK) and is part of the Hong Leong group of companies which is headquartered in Singapore.

Performance

The following information was extracted from CDL Investments NZ Limited's Full year results, released 24 February 2025

Financial Performance

For the period ended 31 December 2024 CDL Investments New Zealand Limited (CDI) recorded a profit after tax of $15.4 million for 2024 (2023: $13.5 million). Our overall net profit before tax reflected significant improvements in our operational performance for the year, however, these gains were impacted by the a one-off non-cash deferred tax adjustment of $3.9 million due to the change of government policy on the depreciation of commercial buildings.

Taking advantage of these more favourable market conditions, CDI saw its profit before tax increase to $26.8 million (2023: $18.7 million). The increase came as a result of higher property sales & other income which totalled $49.1 million (2023: $31.2 million). These results confirm that property markets in New Zealand are showing signs of improvement and there is now a positive momentum shift with lower interest rates, improved access to bank lending and easing inflation.

At 31 December 2024, CDI’s shareholders’ funds increased to $319.6 million (2023: $313.7 million) and total assets also increased to $328.6 million (2023: $319.2 million). Net tangible assets per share (at book value) also increased to 109.5 cents (2023: 107.9 cents).

The market value of CDI’s property holdings at year end as independently valued was $422.8 million (2023: $412.6 million), comprising $357.7 million (2023: $349.9 million) for its development property and $65.1 million (2023: $62.7 million) for its investment property portfolios. At cost, the portfolio was valued at $287.7 million (2023: $260.4 million) in line with CDI’s accounting policies.