Summer Listed Property

Summer Listed Property fund performance summary as at 30 April 2024.

Fund at a glance

Unit price (as at 30 April 2024): $1.2554

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% 3.16% -3.01% -2.90% 0.58% -4.98%
17.50% 3.37% -3.02% -2.86% 0.77% -4.80%
10.50% 3.51% -3.02% -2.82% 0.89% -4.68%

   ^ 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 Goodman Property Trust 19.33%
2 Precinct Properties New Zealand Limited 14.41%
3 Kiwi Property Group Limited 12.73%
4 Vital Healthcare Property Trust 11.30%
5 Argosy Property Limited 8.61%
6 Stride Property Group  7.43%
7 Property For Industry Limited 6.30%
8 Investore Property Limited 3.91%
9 New Zealand Rural Land Company 2.93%
10 ANZ transactional bank account 2.47%

The top 10 investments make up 89.42% of the fund. 

Manager's Commentary

What happened to the markets you invest in?

The NZ 10yr government bond yield pushed ahead to just under ~5.0% in April, up from ~4.6% at the end of March. The NZ REIT index reflected this sentiment over the month, ending the period down 2.72% and underperforming the S&P/NZ50G index. The S&P/ASX 200 Property Accumulation index returned negative 7.8% in AprilArgosy Property (ARG), Goodman Property Trust (GMT) and Asset Plus outperformed, whilst Stride Property, Property for Industry (PFI) and New Zealand Rural Landco underperformed.

April was a quiet month in the property sector with ARG and Kiwi Property announcing modest moves in their property portfolios due to asset revaluationsIn early April ARG announced the unconditional sale of an industrial property at a 1.1% premium to Sep-23 book valueThis is ARG’s fourth non-core asset sale in the last 12 months, all of which were in line or above book.

While these observations may indicate we are nearing the end of the cap rate hiking cycle, there are some large property assets currently being marketed for sale that may reset direct market prices further. The equity market is pricing a further 55bp of cap rate expansion which equates to a ~9% reduction in asset values. 

How did your portfolio perform?

Summer Listed Property delivered a return net of fees and before tax of -3.03% for April. For the 12 months to the end of April the fund delivered a return net of fees and before tax of 1.08%.

For April positive performance came from our overweight positions in Arvida and Mirvac, and an underweight position in Goodman Property Trust. Detractors to performance were our overweight positions in APL and NZ Rural Landco and our underweight position in Property for Industry.

We actively manage the fund’s foreign currency exposures. As of 31 April 2024, these exposures represented 4.67% of the value of the fund. After allowing for foreign currency hedges in place, 2.90% of the value of the fund was unhedged and exposed to foreign currency risk.  

What are we thinking about the future?

Six companies are reporting their full year results in May. The key theme of the reporting season will be the rebased FY25 dividend guidance, after considering the tax changes for building depreciation, increasing interest costs as hedging rolls off and finally, slowing market rent growth rates. We expect operational results to remain solid, with top-line growth supported by portfolio under-renting, but will look for any signs of softening tenant demand given the macro environment. Draft revaluations released so far have resulted in modest portfolio devaluations, which feels light given the softening economic backdrop and interest rate pressure. Therefore, we expect balance sheet management to remain a focus for the sector and asset sales to continue.

There is some valuation support on the basis that the sector still trades at a material discount (~20%) to NTA. Key risks to the downside include weakening economic activity leading to slower rental growth and/or rising vacancies. Interest rate movements in either direction is likely to drive much of the sector’s short-term performance.

Those trading at the largest discount to NTA tend to be the smaller, more highly levered names. If these entities can continue to sell assets at or around book without a further material asset devaluation meaning they can avoid raising capital, we could see a significant re-rate in their share prices. 


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.