CDL says property market would hit earnings

01:43, Jan 31 2009

CDL Investments New Zealand said today that a soft property market and challenging trading conditions would adversely impact its profitability for the year.

"While we believe we are well positioned, CDL Investments will not deliver the level of profits it has achieved in previous years," the company told shareholders at the annual meeting.

"That reflects what is happening in our markets currently", managing director BK Chiu said.

He said the company would pace its land development for the next market upturn and in the meantime would take the opportunity to make acquisitions.

"The company's strong balance sheet with no debt or borrowings and its quality, diversified portfolio of land are its great strengths.

"Should the right opportunity arise to add to our portfolio, we would certainly have a good look at it," Mr Chiu said.

CDL shares were today down 1 cent at 35 cents, a low for over a year.