Summer Listed Property
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 risk indicator is based on the returns data for the five years to 30 June 2026.
* 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.
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% |
| Total growth assets | 95% |
| Total portfolio | 100% |
Minimum suggested investment timeframe
Fund at a glance
Unit price (as at 31 May 2026): $1.3002
Date the fund started: 19 September 2016
Fund returns
| PIR | 1 Month | 3 Month | 1 Year | 3 Years^ | Total since inception^ |
|---|---|---|---|---|---|
| 28% | 2.67% | -2.41% | 5.25% | 1.51% | 2.87% |
^ 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 | 18.73% |
| 2 | Goodman NZ Ltd & Goodman Property Services Ltd | 18.29% |
| 3 | Kiwi Property Group Limited | 15.16% |
| 4 | Property For Industry Limited | 9.95% |
| 5 | Vital Healthcare Property Trust | 8.41% |
| 6 | Argosy Property Limited | 7.46% |
| 7 | Stride Property Group | 6.55% |
| 8 | BNZ Transactional Account NZD | 2.34% |
| 9 | Investore Property Limited | 1.97% |
| 10 | New Zealand Rural Land Company | 1.95% |
| Top 10 investments total | 90.81% | |
Portfolio Holdings
Summer Listed Property Portfolio Holdings
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Manager's Commentary
How did your portfolio perform?
The Listed Property Fund (the fund) delivered a return after fees and before tax of 2.70% for May. For the 12 months to the end of May, the fund delivered a return after fees and before tax of 5.37%.
The top contributors to relative performance were Infratil, Goodman Group and Ryman. In early May Infratil’s largest investment (CDC) announced a 555-megawatt data centre contract win with a large US investment-grade customer. The deal was described as the largest data centre contract in Australian history and pushed CDC's contracted capacity above 1 gigawatt for the first time
The biggest detractors from performance were our underweight position in Goodman NZ (GNZ), and out of index position in Summerset. GNZ reported an inline result with cash earnings up 6% and continue to point to ~5% earnings growth which is above the NZ sector average and helped lift the share price off recent lows.
We actively manage the fund’s foreign currency exposure from Australian equities. The NZ dollar dropped -1.68% against the Australian dollar during the month.
What happened in the markets you invest in?
The NZ 10yr Govt. remained volatile during May, however it ended the month at ~4.60% down 10bps from April month end. The NZ REIT index reflected this sentiment during the month, up 2.49%. The REIT index is down year to date compared to the wider NZX50 index. New Zealand Rural Landco, GNZ and Stride Property (SPG) outperformed the sector in May while Argosy (ARG), Vital Healthcare and Asset Plus underperformed.
Six listed property companies reported annual results in May. Reported annual results and forward guidance were largely in line with expectations with the exception of maintenance capex, where spend was lifted to take account of tax deductions. Operating fundamentals remain solid, though vacancy is starting to creep into portfolios. Leasing conditions are becoming more challenging (particularly for Auckland industrial and Wellington office), reflected in higher incentives and longer lease-up times. Some landlords have deferred developments (Argosy), while others continue to invest through the cycle through brownfield/greenfield development (GNZ, Kiwi Property, SPG).
What are we thinking about the future?
Despite recent volatility, we continue to view property as attractive given its predictable earnings and undemanding valuation metrics, specifically: (1) a -21% discount to NTA; (2) a gross yield of 8.3% (33% taxpayer), which is 370bp above the 10year bond rate (five-year average c.320bp); and (3) a PE of c.16x, more than nine turns below the broader NZ market.