Summer Listed Property
Summary of investment objective and strategy
To achieve long-term returns (before fees, taxes and other expenses) greater than the S&P/NZX All Real Estate Gross with Imputation Index.
These investments typically have high levels of movement up and down in value.
Strategic investment mix
| Category | % |
|---|---|
| Cash and cash equivalents | 5.00% |
| New Zealand fixed interest | 0.00% |
| International fixed interest | 0.00% |
| Total income assets | 5% |
| Australasian equities | 20.00% |
| Listed property | 70.00% |
| International equities | 5.00% |
Risk indicator
The risk indicator is rated from 1 (low) to 7 (high). The rating reflects how much the value of the fund’s assets goes up and down (volatility). A higher risk generally means higher potential returns over time, but more ups and downs along the way.
* The composite benchmark for each multi-asset class fund is made up of the single asset class benchmarks weighted by the target asset allocation for the asset class.
Minimum suggested investment timeframe
At least five years
Fund at a glance
Unit price (as at 31 December 2025): $1.4061
Fund returns
| PIR | Total since inception (annualised) | 1 Month | 3 Month | 1 Year | 3 Years^ |
|---|---|---|---|---|---|
| 10.5% | 4.21% | -0.71% | -2.56% | 12.14% | 4.75% |
| 17.5% | 4.07% | -0.73% | -2.58% | 12.01% | 4.62% |
| 28% | 3.86% | -0.76% | -2.62% | 11.82% | 4.42% |
^ Annualised
Fund returns are calculated net of fund charges, trading expenses and accrued tax for a New Zealand resident individual paying tax at the Prescribed Investor Rate identified above.
Top 10 investments
| # | Asset name | % of fund net assets |
|---|---|---|
| 1 | Precinct Properties New Zealand Limited | 18.46% |
| 2 | Goodman Property Trust | 16.71% |
| 3 | Kiwi Property Group Limited | 14.51% |
| 4 | Property For Industry Limited | 8.68% |
| 5 | Vital Healthcare Property Trust | 8.19% |
| 6 | Argosy Property Limited | 8.19% |
| 7 | Stride Property Group | 7.17% |
| 8 | ANZ transactional bank account | 3.28% |
| 9 | Investore Property Limited | 2.24% |
| 10 | New Zealand Rural Land Company | 1.81% |
| Top 10 investments total | 89.24% | |
Manager's Commentary
How did your portfolio perform?
The Listed Property Fund (the fund) delivered a return after fees and before tax of –0.69% for December. For the 12 months to the end of December, the fund delivered a return after fees and before tax of 12.33%.
The top contributors to relative performance were our out of index positions in Oceania Healthcare (OCA) and Goodman Group (GMG) along with an underweight position in Property for Industry (PFI). We think there is some positivity around what management are doing at OCA post the November result, with a clear focus on efficiency and debt reduction. This positive sentiment carried through into December. GMG has signed a A$14bn European data centre partnership with the CPP Investment Board. This was the announcement the market has been looking for. This will provide GMG with a significant land sale profit on the four sites which currently sit on GMG’s balance sheet and should provide market confidence around GMG’s data centre business model on capital and commencements.
The biggest detractors from performance were our underweight position in Winton Land (WIN), and a modest out of index position in Infratil. There was limited stock specific news on WIN, with the share price bouncing off depressed levels as housing market conditions showed some modest improvement.
We actively manage the fund’s foreign currency exposure from Australian equities. The NZ dollar declined -1.49% against the Australian dollar during the month.
What happened in the markets you invest in?
December was light for company-specific news. Following a hawkish Reserve Bank of New Zealand (RBNZ) 0.25% rate cut to 2.25%, the NZ 10yr Govt. bond increased to ~4.35% during November, up from the lows seen in October where it was under 4%. Despite soothing comments from the new Reserve Bank governor, 10yr rates increased slightly to finish December ~4.50%. The modest decline in the NZ REIT index reflected this negative rate sentiment, continuing the slide from the very strong first nine months of the year.
What are we thinking about the future?
A combination of capital raises and a sharp rise in the 10yr bond rate saw performance trail off in the final quarter of 2025. The sector is now trading on a -14% discount to net tangible assets (NTA), and a gross yield of 7.5% or +300bp spread to long bond rates. While the likelihood of further interest rate cuts has diminished, the current relatively low-rate environment should continue to support the sector. This support comes through improved earnings as companies benefit from lower debt costs once hedges roll off; a probable uplift in NTA, driven by tighter cap rate assumptions which should ease gearing concerns; and, lastly, the comparatively attractive yields offered by property companies relative to alternatives such as term deposits.