The Property & Infrastructure fund rose +1.1%, lagging the benchmark index which rose +2.1%.  

Australian property stocks were the standouts for the month, supported by a strong reporting season. The property sector had one of the best earnings upgrades of any sector in the ASX-200. Asset values and occupancy levels are stabilising, while interest rates are starting to become a tailwind for some operators. 

Arena REIT (+12%) reported second half 2025 earnings and announced the departure of long-standing CEO Rob de Vos. His replacement is internal hire Justin Bailey, who joined the business 18 months ago as Chief Investment Officer. We think Justin's appointment provides continuity for the business and there is no change to Arena's strategy. Arena's result highlighted the stable, defensive nature of the business. The outlook for rental income growth remains sound, with customer occupancy costs at cycle-lows and 40% of the rental book coming up for review over the next four years.  

American Tower (-2%) underperformed after key customer AT&T signed a deal to buy and lease spectrum from DISH, a rival telco. The implications of this deal for American Tower are mixed. It avoids the possible risk of customer bankruptcy (DISH has high debt levels), yet it means that DISH's sites will be turned off in a few years time. AT&T, who had recently delayed lease commencements with American Tower, will be able to use some of the spectrum without more tower leasing near-term. Longer term, American Tower should benefit from AT&Ts plans to push harder into fixed wireless broadband, a strategy which the new spectrum helps deliver. Fixed wireless broadband uses 10 times the data of traditional mobile devices, implying more business for tower companies in the medium and long term. We reduced our position during the month as we consider the development overall unfavourable for American Tower.