The Property & Infrastructure Fund returned +0.5% in June, compared to its benchmark of +1.2%.

Meridian Energy (+7%) announced a reduction in its demand response agreement with NZ Aluminium Smelters. Under this agreement Meridian pays its customer to reduce their manufacturing output and electricity usage, given Meridian faces shortage of fuel (water in lakes) to generate electricity in its hydro dams. This follows strong increases in rain inflows to key hydro lake catchments over May and June, improving levels from concerning “dry year levels” towards historical averages. Higher lake levels allow Meridian to generate more electricity and boost earnings, which have been depressed from successive “dry years”.

Equinix (-11%) held an investor day in June. The company unveiled plans to double capacity by 2029, which is a significantly faster pace of development than it has undertaken for almost a decade. The "build bolder" initiative will involve larger buildings, fewer development phases, and more data centres for hyperscale clients under its xScale [MB1] brand. The increased development will be funded by debt. While revenue growth targets met market expectations, profit growth targets fell short due to higher interest costs and lower utilisation of new developments, which will impact earnings. Sceptics also highlighted the increased execution risk associated with the significant level of change under new CEO Adair Martin, which also includes executive and sales team restructures.