The Property & Infrastructure Fund finished the month up +0.2%, outperforming the benchmark which fell -1.3%.

American Tower (+11%) reported fourth quarter 2024 results, with its revenue and earnings ahead of expectations. Whilst management’s 2025 earnings guidance missed expectations slightly, the market welcomed a turning point in several key metrics for American Tower. US tower leasing is returning to growth, supported by the end of Sprint churn in the third quarter 2025. Management indicated overall leasing activity may accelerate in the second half of 2025. Emerging markets, which have been problematic in recent years, are showing overall strong growth and customer consolidation headwinds in Latin America are expected to abate. American Tower showed discipline on capital deployment, reducing operating costs and re-focusing Capex towards developed markets (80% of the 2025 total).

Infratil (-3%) announced an investment of AUD$216 million into existing investment CDC Data Centres. The deal was conducted between existing shareholders, with CSC selling part of their stake to Infratil and the Future Fund. The transaction implies an equity value for CDC of AUD $13.7 billion, a 34% uplift on the most recent independent valuation. We estimate the deal implies $1.15 per share of value creation for Infratil shareholders. Despite this, Infratil’s share price declined after the deal. We attribute this to market concerns on CDC’s recent delayed contract wins (noting Microsoft is a major customer) and concerns regarding datacentres generally. Microsoft has reportedly been cancelling datacentre leases and speculated publicly on future lease price declines. Some investors also dislike the fact the transaction occurred among existing shareholders therefore may not be a ‘true’ marker of value.