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.
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.
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 July 2026): $1.3065
Date the fund started: 19 September 2016
Fund returns
| PIR | 1 Month | 3 Month | 1 Year | 3 Years^ | Total since inception^ |
|---|---|---|---|---|---|
| 28% | -0.99% | 3.22% | -1.99% | -0.63% | 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 | 18.85% |
| 2 | Goodman NZ Ltd & Goodman Property Services Ltd | 18.51% |
| 3 | Kiwi Property Group Limited | 14.97% |
| 4 | Property For Industry Limited | 10.16% |
| 5 | Vital Healthcare Property Trust | 8.25% |
| 6 | Argosy Property Limited | 7.28% |
| 7 | Stride Property Group | 5.90% |
| 8 | BNZ Transactional Account NZD | 3.34% |
| 9 | Investore Property Limited | 1.86% |
| 10 | New Zealand Rural Land Company | 1.77% |
| Top 10 investments total | 90.89% | |
Portfolio Holdings
Summer Listed Property Portfolio Holdings
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Manager's Commentary
How did your portfolio perform?
The Summer Listed Property Fund (the fund) delivered a return after fees and before tax of -1.00% for the month of July, fractionally outperforming its benchmark* return by 0.09%. For the 12 months to the end of July, the fund delivered a return after fees and before tax of -2.02% marginally underperforming its benchmark* return by -0.28%.
The top contributors to relative performance were our out-of-index positions in Winton Land (a property developer), ASX-listed Charter Hall Group (CHC) and hospitality operator Sky City Entertainment (SKC). Winton Land continued to de-rate on the back of subdued market conditions in the residential and aged care sectors, against a backdrop of significant management team changes. Meanwhile, Charter Hall continued its positive momentum from last month, whilst SKC continued to sell assets close to book value, whilst trading at a greater than forty percent discount to asset backing.
The biggest detractors from performance were our out of index positions in Ryman Healthcare and Goodman Group (Australia). Resale conditions in the aged care sector remain weak, along with the New Zealand residential market. Goodman’s fragility persists whilst investors await material customer announcements backing its data centre programme.
We actively manage the fund’s foreign currency exposure from Australian equities. The NZ dollar rose 1.89% against the Australian dollar during the month.
What happened in the markets you invest in?
The NZ 10-year Government yield was 4.70% at July end, up ~30bps from the 4.39% level we saw towards the end of June. Whilst the property sector yield premium compared to the local fixed income is above medium-term averages, higher interest rates are negative for that spread, and increase the cost of debt as well as hindering growth. Ina stronger market, these costs would translate into rental growth, but the economy remains subdued. The market struggled against this backdrop in July.
Property companies IPL, Stride and Precinct (PCT) outperformed the sector in July while Winton Land, NZ Rural Land (NZL) and Kiwi Property underperformed.
Industry news focused on market trends, where Auckland prime office space saw some tentative occupancy gains, whilst industrial property saw vacancies rise from very low levels. The retirement sector continued to suffer from both low confidence in the residential housing market and falling prices.
Company news focused on the default of one of NZL apple orchard tenants. Whilst the management team is confident of being able to lease the land to another operator, the short-term drag on rental income saw the company remove its earnings and dividend guidance with the share price negatively affected.
What are we thinking about the future?
We will get profit results from Property for Industry (PFI), Vital Healthcare (VHP) and PCT in August. Each has its own nuanced story. For PFI we will look at demand for its new developments. VHP is fully geared and needs to make progress on non-core asset sales to fund development projects. Meanwhile, PCT has recently slowed development of the large Downtown carpark site as it looks to derisk the project.
Sector fundamentals remain robust with interest cost stabilisation and rental growth, the most likely drivers of fundamental improvement in returns. The sector, on average, trades at a substantial discount to book value and offers attractive dividend yields but lacks earnings and dividend growth currently.
The Australian interest rate cycle appears closer to the peak than NZ, with some better-than-expected inflation numbers indicating there may only be one more rate hike. We are actively scanning that market for attractive opportunities, noting that the NZ dollar appears cheap and could be a constraint on recognising value in NZ dollar terms.
*The benchmark for the fund is the S&P/NZX All Real Estate Gross with Imputation Index.