CDL Investments Capitalises on Strong Market

CDL Investments Capitalises on Continiued Strong Market Demand For Quality Residential Sections

Property development company CDL Investments New Zealand Limited (NZX: CDI) today reported its preliminary results for the year ended 31 December 2006.

Chairman Mr. Wong Hong Ren said that the company had achieved an operating profit after tax of $10.9 million on revenue of $31.6 million and had sold a total of 182 sections in 2006. The company’s total assets had also increased to $76.2 million.

Acknowledging the healthy 19.1% increase in profit and 28.9% increase in revenue over the same period in 2005, Mr. Wong noted that the New Zealand property market had continued to be buoyant in 2006 despite predictions to the contrary.

“We are pleased that CDL Investments has been able to take advantage of these better than expected market conditions and deliver yet another set of strong results”, Mr. Wong said.

The Company also announced that its Board had increased the ordinary dividend to 2.3 cents per share, a 15% increase from last year. The dividend would be fully imputed and payable to shareholders on 30 March 2006. The Company announced that the Dividend Reinvestment Plan would apply to this dividend and the record date for participation would be 16 March 2007.

Managing Director B K Chiu said that while it was too early in the year to make definitive comments about the prospects for this year, he believed that CDL Investments could continue to capitalize on positive market conditions into the first quarter of 2007.

“Trading conditions remain positive in the residential property markets generally and this has been reflected in the good start made to date. However, we are conscious of the increasing compliance and development costs such as local government levies. These have increased over the past eighteen months and are starting to impact on our business”.

Mr. Chiu remained upbeat about CDL Investments’ prospects for 2007.

“CDL Investments has an excellent and long-held reputation for producing high quality sections in key growth areas. Our focus in 2007 will therefore be on maintaining our profitability, market share and section quality in order to maximize our returns across the board”, he said. Summary of results:

ENDS

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