Summer Listed Property
Summer Listed Property fund performance summary as at 30 June 2024.
Fund at a glance
Unit price (as at 30 June 2024): $1.1803
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% | 2.27% | -2.95% | -8.79% | -8.05% | -7.37% |
| 17.50% | 2.48% | -2.94% | -8.77% | -7.89% | -7.20% |
| 10.50% | 2.62% | -2.93% | -8.76% | -7.78% | -7.09% |
^ 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 89.01% of the fund.
Manager's Commentary
What happened to the markets you invest in?
The NZ 10yr government bond yield was down to ~4.6% in June from ~4.9% in May. Notwithstanding this, the NZ REIT index ended June down 3.20% underperforming the wider market.
After the busy May reporting season, June was a quieter month. Precinct Properties (PCT) announced a couple of small land acquisitions to support its living strategy (build-to-sell apartment and student accommodation). The living strategy was the focus of its Investor Day held in June, with PCT presenting its plans, and setting expectations for its strategy in this market niche.
Kiwi Property (KPG) opened New Zealand’s first build-to-rent project at Sylvia Park with leasing slow so far. Vital Healthcare (VHP) announced pleasing progress on its capital recycling programme with NZ$87m of non-core asset sales being contracted for sale since April 2024 at a 2% discount to book.
How did your portfolio perform?
Summer Listed Property delivered a return net of fees and before tax of -2.91% for June. For the 12 months to the end of June the fund delivered a return net of fees and before tax of -7.62%. Positive performance came from an underweight position in Goodman Property Trust (GMT) and an overweight position in Asset Plus (APL). The key detractor to performance was an underweight position in Property for Industry (PFI). There are some signs that the economic backdrop is starting to weigh on industrial demand with CBRE (a commercial real estate company) highlighting softening Auckland rents in the June quarter, significant new supply being built, and anecdotal evidence tenants are beginning to push back on material rental increases.
We actively manage the fund’s foreign currency exposures. As at 30 June 2024, 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.
What are we thinking about the future?
The listed sector continues to dispose of assets at or around book value, although transaction numbers are low, suggesting they are only selling if they are getting the “right” price. Share prices imply further cap rate expansion is expected.
Interest rate relief will likely provide a boost for the sector however this will be partially offset by a weakening rental growth outlook. Excluding GMT and PFI, the rest of the sector is trading on a gross yield spread above its long-run average. We continue to see more attractive opportunities outside of the Industrial property space.
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.
