KEY POINTS:
Property development company CDL Investments has reported an annual net profit after tax up 38.9 per cent to $15.1 million.
Chairman Wong Hong Ren said the result reflected the high quality and spread of CDL's product, the strength of the New Zealand property market during the year, and the fact the company had been able to trade strongly from all its markets.
Revenue for the year to the end of December was up 25 per cent to $39.5m, while the current market value of CDL's land portfolio, as determined by property adviser DTZ, had increased by 29 per cent from $157m in the previous year to $202.7m.
Mr Wong said that during the year the company had acquired 63.8ha of land in Canterbury, Nelson and Hawke's Bay to replenish its land banks.
The positive property cycle which had resulted in record earnings between 2004 and 2007 had eased, he said.
"As with others in the industry, we have noticed a lessening in demand in many of our markets."
Adverse factors which had affected the property sector as a whole would be reflected in CDL's 2008 trading patterns and its financial performance, Mr Wong said.
But CDL was, arguably, better placed than most given its wider geographical spread, meaning it was not reliant on any one area within New Zealand for its sales.
"We have diligently built up land banks in areas which we are confident will grow over the medium to longer term," he said.
"While it is already clear that 2008 will not be as buoyant as previous years, we are forecasting a satisfactory level of demand in our key markets this year and in the medium term."
CDL was not leveraged and therefore in an excellent position to capitalise on appropriate opportunities in what may become a difficult market.
A fully imputed dividend of 2.3 cents per share is to be paid.
CDL shares last traded on Thursday at 37c, having ranged in the past year between 35c and 47c.
- NZPA
