SUMMARY
The A-REIT sector delivered a solid start to the new financial year, up +3.8% in July as economic data released during the month showed the effectiveness of the interest rate tightening cycle with 1) a softer inflation print (6.0% vs. consensus 6.1%); and 2) weaker June retail sales.
In comparison, the Fund returned +3.38% which was a solid result notwithstanding our bias toward non-index stocks. Key contributors to returns over the month include Lifestyle Communities (LIC +10.86%), HealthCo Wellness REIT (HCW +8.37%), and RAM Essential Services (REP +7.97%). The top detractors of performance were Qualitas (QAL -5.20%) and Arena REIT (ARF +1.06%).