The Property & Infrastructure fund returned +0.3% in November, lagging the benchmark index which returned +0.7%. Within our blended benchmark, Global Infrastructure (+3.0%) outperformed New Zealand Property (-3.1%) and Australian Property (-3.8%).

Grupo Aeroportuario del Pacifico (+14%) was added to the portfolio during November. The company operates and maintains 15 airports in the Pacific and central regions of Mexico as well as in Jamaica. Its facilities serve major cities such as Guadalajara and Tijuana, along with tourist destinations such as La Paz, Los Cabos, Manzanillo, and Puerto Vallarta. The company had been sold off sharply in October (-12%) after announcing a US$2.2 billion deal with some of its minority shareholders. The deal will internalise a technical support arrangement with these shareholders (removing cost for the company) and also sees the company acquire 100% of Cross Border Xpress (CBX), a foot bridge at the Tijuana - San Diego border. It might sound trivial but provides real benefits for travellers: faster border crossing (20 minutes versus several hours via land), improved access to car parking, and much cheaper airport charges in Tijuana compared to U.S. alternatives San Diego and LAX. The business remains unregulated and highly cash generative. Although the market was initially concerned with the transaction, we consider it to be accretive and the land bank acquired could provide future upside.

Infratil (-5%) reported its half-year 2026 result. The results were broadly inline, albeit Infratil-level debt increased, and earnings may have fallen short of market expectations. Company-level updates were largely inline with expectations and Infratil maintained full-year 2026 earnings guidance. Longroad Energy reached financial close (i.e. deciding to proceed) on 925MW of projects in the half, exceeding the pace implied by its 1,500 MW annual target. This momentum is encouraging, given Longroad development volumes have not met this target in the recent past. Telco One New Zealand saw earnings decline modestly period on period, in part due to a weak New Zealand economy. Management retain their full-year earnings and medium-term earnings growth expectations. Infratil's New Zealand radiology business lowered earnings targets given a soft operating environment. CDC Data Centres lifted their capital expenditure targets to support new contracts announced in October. Infratil plans to divest assets that won't scale into platforms worth at least $1 billion. During the half, it sold small property and telecom tower assets, realising modest returns below the high standards we have come to expect from Infratil. Distributions from portfolio companies increased, helping fund Infratil's dividends and fees paid to manager Morrison. Overall, the result was a mild disappointment given rising debt levels and small asset sales at values below expectations, yet the portfolio’s overall earnings trajectory remains intact.