Developer sees softer property market
Residential land developer CDL Investments New Zealand says its first half-year sales and profit were "satisfactory", but believes the property market is showing signs of softening.
CDL reported an unaudited interim operating profit of $8.21 million after tax, well up on $5.73m for the six months to June last year.
Revenue was also considerably higher at $24.9m, up from $15.3m.
Operating profit before tax was $11.41m, compared with $7.96m, a 43 per cent increase.
Despite a softening outlook, the company said it was aiming for an annual profit on the same level as its 2013 results, given the level of unconditional sales on hand.
"We do expect sales to be slightly softer in the second half of the year than in the first. Forecast increases in mortgage interest rates and property availability generally will impact the property markets," managing director BK Chiu said.
CDL owns CDL Land Holdings, a subsidiary which is developing several housing areas on Auckland's North Shore, in Hamilton, Napier, Nelson, Queenstown's Arthurs Pt and Rolleston, Christchurch.
During the year the company sold 133 sections, almost double the number sold during the first half a year ago.
It added stages to its Magellan Heights subdivision in Hamilton and Stonebrook in Rolleston and acquired a further 4.1 hectares of land in Auckland.
Property sales and other income for the period increased by 62.3 per cent to $24.9m compared to $15.4m last year.
CDL Investments is a 67 per cent-owned by Millennium & Copthorne Hotels New Zealand, which is 70 per cent owned by CDL Hotels Holdings New Zealand, a wholly owned subsidiary of Britain's Millennium & Copthorne Hotels.
Its ultimate parent is Malaysian-owned Hong Leong Investment Holdings, based in Singapore.