Keppel Infrastructure Trust H2 DPU slips 0.5% to S$0.0191
THE manager of Keppel Infrastructure Trust (KIT) reported on Monday (Jan 30) a distribution per unit (DPU) of S$0.0191 for the second half ended December 2022, down 0.5 per cent from the DPU of S$0.0192 in the year-ago period.
The lower DPU came even as KIT’s distributable income rose 47.4 per cent in the second half to S$134.9 million, from S$91.6 million previously.
The latest distribution will be paid on Feb 14.
For the full year, distributable income was up 15.8 per cent to S$222.5 million, with new acquisitions and “steady portfolio performance” contributing to the increase, the manager said.
Meanwhile, full-year DPU rose 1 per cent to S$0.0382. The manager noted that this translated to a distribution yield of 7.1 per cent, based on KIT’s closing price of S$0.54 on Dec 31, 2022.
The trust’s energy transition segment contributed to the biggest increase in distributable income for the full year. Distributable income from the segment rose from S$74.4 million to S$115.7 million.
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Distributable income from KIT’s distribution and storage segment rose 9.5 per cent to S$102.6 million.
However, distributable income from the environmental services segment slipped 1.5 per cent to S$70.3 million.
Revenue for the full-year rose to S$2 billion from S$1.6 billion in FY21.
The manager said the trust is “well-positioned against inflation and higher energy prices with over 90 per cent of KIT’s businesses and assets with cost pass through a mechanism and availability-based revenue model”.
The manager also added that the trust has conducted its inaugural portfolio revaluation exercise, with total assets under management as at Dec 31, 2022 amounting to S$7.3 billion
KIT had net gearing of 39.8 per cent as at Dec 31, 2022, and the manager noted it had “comfortable debt headroom for growth”. Around 72 per cent of KIT’s floating interest rates were hedged, and the trust had a weighted average interest rate of 3.7 per cent.
KIT units rose 0.9 per cent on Monday to close at S$0.57 before the earnings announcement.
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