Summer Listed Property
Summer Listed Property fund performance summary as at 28 February 2025.
Fund at a glance
Unit price (as at 28 February 2025): $1.2421
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% | 2.71% | -3.05% | -3.94% | -0.53% | -5.17% |
| 17.50% | 2.92% | -3.03% | -3.89% | -0.33% | -4.97% |
| 10.50% | 3.06% | -3.02% | -3.86% | -0.19% | -4.85% |
^ 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 88.94% of the fund.
Manager's Commentary
How did your portfolio perform?
Summer Listed Property (the fund) delivered a return net of fees and before tax of -3.00% for the month of February. For the 12 months to the end of February the fund delivered a return net of fees and before tax of 0.01%.
The top contributors to relative performance were out of index positions in Fletcher Building (FBU), Charter Hall Group, and Marsden Maritime Holdings (MMH) and an underweight position in Goodman Property Trust (GMT). Relative underperformers were dominated by the aged care sector including Ryman Healthcare (RYM) and Oceania Healthcare (OCA), along with an exposure to Goodman Group (GMG) in Australia.
We actively manage the fund’s foreign currency exposures. As at 28 February 2025, these exposures represented about 5% of the value of the fund. After allowing for foreign currency hedges in place, around 3% of the value of the fund was unhedged and exposed to foreign currency risk. The NZ dollar fell -0.58% against the Australian dollar during the month.
What happened to the markets you invest in?
February was a challenging month for the NZ listed property sector, down -2.8%, in line with the broader market. Kiwi Property Group and Investore were the only two listed property companies to end the month in positive territory, whilst on the other side of the ledger, industrial landlord GMT and prime office landlord Precinct Properties were the weakest performers. The NZ 10yr Government bond yield held steady in February, ending the month at ~4.6%, in line with January.
FBU reported an in-line first half result with no new negative surprises. Forward indicators are improving, enough for FBU shares to continue their recovery, up 17% this year. A small position in MMH delivered positive performance as a consortium offered to acquire the remaining shares at a 73% premium to its last close price.
RYM announced an unexpected, and very large, NZ$1Bn underwritten equity raising to provide more resilience to current market conditions. With the shares now trading below the capital raise price it seems investors are yet to be convinced on the recovery plan. With its own balance sheet concerns, sector-peer OCA shares also declined.
Four property companies reported first-half results in February. Earnings faced pressure from higher interest and tax costs, partly offset by rental growth and increased fee income. Vacancy rates are rising slightly, and gearing has inched up. However, with interest costs peaking and asset values stabilizing, some positive trends are emerging.
What are we thinking about the future?
We believe the sector continues to look attractive given: (1) solid earnings outlook with tax and interest rate headwinds behind us, (2) stable portfolio metrics, (3) high replacement cost limiting new supply, and (4) a stabilisation in asset values. Falling interest rates should support asset valuations and sentiment towards the sector.
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.
