The Property and Infrastructure fund returned +3.8% in February, compared with the benchmark index which rose +4.4%.

Equinix (+19%) reported fourth quarter results and 2026 guidance that exceeded expectations. Annualised gross bookings hit a record of $474 million in Q4, a 42% year-on-year increase that demonstrated accelerating demand. Approximately 60% of the largest deals were driven by AI workloads, up from 50% in the prior quarter. The full-year 2026 revenue guidance of 9–10% growth was meaningfully ahead of targets outlined at the June investor day, and adjusted EBITDA margins are expected to expand by roughly 2% to 51%. The result was encouraging given our concerns after last year’s investor day around execution risk and elevated development costs. With bookings now accelerating and the "build bolder" capacity expansion beginning to translate into visible revenue and earnings growth, we increased our position during the month.

Arena REIT (-4%) reported first half 2026 earnings which were in line with expectations. Net operating profit rose 9% and operating earnings per security grew 5.4%, supported by a 12% uplift in property income driven by rent reviews and capital deployment. Like-for-like rental growth of 3.6% was backed by market rent reviews averaging 7.6%, with a further 28 market reviews expected in the second half. Full year distribution guidance was reaffirmed. However, Arena underperformed in February, largely reflecting broader market sentiment. The S&P/ASX 200 A-REIT Index declined by a similar amount, in part because of the increasing prospect for further RBA interest rate hikes. Some of Arena’s tenant are also experiencing occupancy issues, due to controversy around safety in some childcare centres. Although Arena benefits from long-term contracts with high-quality tenants and structural lease protections that largely insulate it from issues at the centres impacted, concerns about tenant health have weighed on market sentiment.