Summer Listed Property
Summer Listed Property fund performance summary as at 31 March 2025.
Fund at a glance
Unit price (as at 31 March 2025): $1.1951
Date the fund started: 19 September 2016
For information on fees, see our Fees page.
For more information on the Summer Listed Property fund, read the latest quarterly fund update and the product disclosure statement.
Fund objective and strategy
See the Listed Property page for the Summary of investment objective and strategy.
Fund returns
| PIR | Total since inception (annualised) | 1 Month | 3 Month | 1 Year | 3 Years^ |
| 28% | 2.19% | -3.97% | -5.30% | -7.87% | -6.87% |
| 17.50% | 2.41% | -3.86% | -5.17% | -7.62% | -6.66% |
| 10.50% | 2.56% | -3.79% | -5.09% | -7.45% | -6.51% |
^ 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
The top 10 investments make up 88.34% of the fund.
Manager's Commentary
How did your portfolio perform?
Summer Listed Property delivered a return after fees and before tax of -3.68% for the month of March and for the 12 months to the end of March the fund delivered a return after fees and before tax of -7.19%.
The top contributors to relative performance were an overweight position in New Zealand Rural Land Co. (NZL), and underweight positions in Vital Healthcare and Kiwi Property. Relative underperformers were dominated by a significant underweight position in Property for Industry, along with out of market index positions in Ryman Healthcare and Goodman Group in Australia.
We actively manage the fund’s foreign currency exposures associated with listed property and Australian equities. The New Zealand dollar rose 0.87% against the Australian dollar during the month.
What happened to the markets you invest in?
The fund’s benchmark continued its downwards trajectory, falling a further -3.37% over the month, underperforming New Zealand’s broader equity market which was down -2.43%. There was a widespread sell-off across the sector, led by Stride Property, Vital Healthcare and Asset Plus. Only NZL (up 5.0%) and residential developer Winton Land which rose 3.2%, closed the month in positive territory.
None of the five large-cap companies that reported in May announced preliminary revaluations, suggesting valuations are likely to remain broadly stable and in our view the end of the cap rate softening cycle. March did see some transaction activity, with Precinct Properties announcing it would offload its hotel asset and IPL divesting an Auckland supermarket at ~11% above book value, an encouraging sign.
What are we thinking about the future?
The listed property sector has had a torrid 12 months to the end of March, underperforming the broader New Zealand equity market by close to 9.0%. We are somewhat surprised by this given interest rates have generally trended down over the same period.
Operationally, although showing some early signs of weakness, aggregated portfolio occupancy remains solid. While market rental growth has slowed, fixed annual lease increases and under-renting within portfolios should support the top line, while operational costs are being managed down. Below the operating profit line, debt costs have largely peaked, and tax headwinds are now behind us.
From a valuation standpoint high single digit gross yields look attractive versus other fixed income-like alternatives. The sector continues to continue to trade at large discounts to underlying asset value, despite recent transactional evidence, and the sector P/E multiple is at a record discount to the broader NZ market.
After President Trump’s ‘Liberation Day’ tariff announcements we expect the property sector’s appeal as a defensive asset class to increase. If the tariff action leads to a global recession central banks are likely to respond with looser monetary policy that typically favours the listed property sector.
We continue with a preference to those listed property vehicles with fund manager capability and maintain an exposure to property-like companies such as Infratil (Datacentres) and Fletcher Building (Aged Care and Residential) that have been beaten- up and should benefit in our view, from a lower interest rate environment and improving consumer sentiment.
This is not a recommendation to buy or sell any financial product and does not take your personal circumstances into account. All opinions reflect our judgement on the date of communication and may change without notice. Past performance is not a reliable guide to future performance. We recommend you take financial advice before making investment decisions. We have prepared this web page in good faith based on information obtained from other sources, but we do not guarantee the accuracy of that information. We do not make any representation or warranty (express or implied) that this web page is accurate, complete, or current and to the maximum extent permitted by law disclaim any liability for loss which may be incurred by any person relying on this web page.
