CDL Investments profit rises
New Zealand's "buoyant" property market has helped listed property developer CDL Investments achieve an annual net profit of $13.4 million to December 31, up 44.1 per cent compared to 2012.
CDL's revenue increased 45 per cent to $38.4m last year, its best result in the past 10 years, CDL said.
Operating expenses increased 48.3 per cent last year, to $20.9m.
The company said its improved profitability meant it would pay a fully imputed dividend of 2 cents a share, up from 1.7c a share in 2012, to be paid on May 16.
Managing director BK Chiu said the improved result reflected the demand, location and availability of the company's residential sections in the buoyant property market.
However, the company noted the caution exercised by the Reserve Bank in relation to its loan-to-value ratios (LVR) for bank lending and the trend towards increasing interest rates.
"We welcome the fact that the Reserve Bank has lifted the LVR restrictions for new build homes and we believe that this will have a positive impact on our section sales," CDL said.
CDL's land portfolio was independently valued at $177.5m on December 31.
The company bought 5.5 hectares in Auckland late last year and sold 202 sections during 2013, seven more than in 2012.
Chiu said the company's focus would be on ensuring it had sufficient sections for sale now and a solid development pipeline to meet future demand.
CDL would continue to focus its sales activity in Auckland, Hamilton and Canterbury, he said.
The company's shares were unchanged at 56c this afternoon.