I REFER to the article “Keppel Infrastructure Trust reverses into the red with a loss of S$23.9 million in H1 2024” (BT, Jul 26), which highlights profit after tax (PAT), a metric that is not as relevant to a business trust such as Keppel Infrastructure Trust (KIT).
As investors in a business trust, KIT’s unitholders are more focused on steady, predictable and recurring cash distributions, which are paid out of the trust’s operating cash flows. This is unlike companies, which may only make dividend payments out of accounting profit.
Therefore, the ability to pay distributions from cash flows is important for business trusts, such as KIT, which is focused on generating stable and resilient operating cash flows that support distributions to unitholders.
