The Property & Infrastructure Fund returned -3.7.% in March, compared to its benchmark of -3.8%, reflective of weak equity markets globally due to US strikes on Iran and closure of the Strait of Hormuz.

Infratil (+4%) hosted an investor event in Sydney for CDC Data Centres, in which it holds a 49.7% shareholding worth around A$7 billion, making it the most significant asset for Infratil. The day highlighted how well CDC has positioned itself in the Australian market by getting ahead of evolving technical requirements (such as closed-loop water cooling and high-power density) and using advanced planning and engagement to circumvent industry bottlenecks (such as planning approvals and power grid connections). CDC has several significant data centre campuses in its pipeline that are well placed to meet demand for increasing use of AI, in a market where capacity is scarce. It had the confidence to increase its core earnings (‘EBITDA’) guidance for its upcoming 2027 fiscal year from around $660 million to $680-720 million.

American Tower (-10%) experienced weaker investor sentiment in March. The primary culprit was a sharp rise in long-term interest rates, with 10-year US government bond yields increasing 38 basis points during the month. The outbreak of conflict in Iran led to fears of higher-for-longer inflation, which is negative for the long-duration nature of tower cash flows with fixed rent increases. Industry disruption in Europe also weighed on sentiment. Telecom carriers are negotiating aggressively with tower companies, including threatening lease non-renewal, shifting to alternative tower operators, or even funding the build of new towers. Moving towers is typically considered uneconomic and hence much of the disruption in Europe is seen as posturing to drive down rents rather than a genuine threat. American Tower's European operations have not been subject to any such threats from customers.