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Keppel Infrastructure Trust declares Q3 DPU of 0.93 S cent

KEPPEL Infrastructure Trust (KIT) on Monday reported a distribution per unit (DPU) of 0.93 Singapore cent for the third quarter of 2019 on 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 61 per cent year-on-year increase in DCF from S$34.7 million to S$55.7 million for the three months ended Sept 30. 

This was driven mainly by the positive contribution from Ixom HoldCo (Ixom) as well as higher contribution from City Gas as a result of over-recovery due to time lag in adjustments of gas tariffs to reflect actual fuel costs. 

Despite a higher DCF, KIT's manager Keppel Infrastructure Fund Management (KIFM) declared a DPU of 0.93 Singapore cent for the quarter, unchanged from the preceding quarter. This brings the DPU for the nine months in 2019 to 2.79 cents, translating to an annual distribution yield of 7 per cent based on the market closing price of 53 Singapore cents on Sept 30.

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The Q3 DPU will be paid on Nov 15. 

KIT saw a 14.7 per cent increase in net profit in the third quarter from S$8.2 million to S$9.4 million compared to a year ago while revenue increased over 100 per cent from S$162 million to S$407.5 million. 

Earnings per unit (EPU) stood at 0.19 Singapore cent for Q3FY2019, a 9.5 per cent fall from 0.21 Singapore cent in the year-ago period. For the nine months ended Sept 30, EPU fell by 33.3 per cent from 0.30 to 0.20 Singapore cent compared to a year ago due to transaction costs incurred in the Ixom acquisition. 

Net asset value per unit fell by 1.8 per cent from 27.3 Singapore cents as at Dec 31, 2018 to 26.8 Singapore cents as at Sept 30. 

In September, KIFM announced the proposed divestment of KIT's 51 per cent stake in DataCentre One to Keppel DC Reit for a consideration of S$102.9 million, allowing KIT to realise the remaining lease value of the asset upfront. 

Proceeds from the divestment are expected to be redeployed in acquisitions as well as for refinancing purposes and working capital needs.

The estimated net proceeds to be received by KIT, excluding the repayment of the portion of the shareholder loans owed to it, are S$51.3 million. The transaction is subjected to approval from shareholders via an extraordinary general meeting, which will take place on Oct 23. 

KIT units closed at 54.5 Singapore cents on Monday before the results were announced.