KEY POINTS:
Property company CDL Investments' half year net operating profit fell 80 per cent to $1.48 million as depressed market conditions hit the result.
Chairman Wong Hong Ren said that as was the case with other other property development companies, CDL had not been able to generate the same level of sales during the six months to the end of June as was seen in previous years.
"While management is developing initiatives to generate sales in the latter half of 2008, the company has slowed its development programme down both in response to current demand and to save costs where practicable," he said today.
From a profit perspective, 2008 would be difficult, given the dramatic slowdown in the property market.
"Assuming no adverse unforeseen events, the board does not expect that the 2008 results will run at a loss."
CDL was in the enviable position of being able to make acquisitions in the current marketplace and would secure strategic opportunities if they arose.
No properties were bought during the half year.
The fall in net operating profit from $7.57m in the corresponding period a year earlier, came as revenue from property sales and other income was down 80 per cent to $4.07m.
Shares in CDL, 65 per cent owned by Millennium & Copthorne Hotels New Zealand, closed at 29c yesterday, down from a year high of 46c a year ago.
- NZPA
