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Keppel Infrastructure Trust declares flat DPU of 0.93 Singapore cent

KEPPEL Infrastructure Trust (KIT) on Monday reported a flat total distribution per unit (DPU) of 0.93 Singapore cent for the second quarter of 2019 - despite marked improvements year-on-year in its distributable cash flow (DCF), revenue and net profits.

The trust with businesses in the three sectors of energy, distribution & network, and waste & water reported a 26.3 per cent increase in DCF at S$45.8 million for the three months ended June 30. This came mainly from the contributions by Ixom HoldCo that was acquired in February.

Despite a higher DCF, KIT's manager Keppel Infrastructure Fund Management declared a flat DPU of 0.93 Singapore cent for the quarter, unchanged from a year ago and the preceding quarter. The DPU will be paid on Aug 16.

KIT swung from a loss of S$4 million in the second quarter 2018 to a profit of S$15.96 million in the same quarter this year while revenue almost tripled from S$142.9 million to S$418 million in the same period.

Net assets as at June 30 of S$2.24 billion increased compared to S$1.48 billion as at Dec 31, 2018 as a result of an equity fund raising exercise and perpetual securities issued.

It issued in June S$300 million worth of 4.75 per cent subordinated perpetual securities under a newly established S$1 billion multicurrency debt programme. Part of the proceeds were used to retire the remaining equity bridge loan and other loans, thereby lowering the trust's gearing to 34.2 per cent from 44.3 per cent.

KIT's weighted average term to maturity for its loans stood at 2.1 years as at June 30.

Units of KIT closed flat at 50.5 Singapore cents on Monday.