[SINGAPORE] Keppel Infrastructure Trust (KIT) on Tuesday (Apr 22) reported a jump in distributable income of 27.7 per cent to S$65 million, from S$50.9 million in the previous corresponding period.
This is due to contributions from new acquisitions and capital recycling with the sale of Philippine Coastal, according to the company’s Q1 business update. The gain from the divestment of the 50 per cent stake in Philippine Coastal – completed on Mar 20 – was S$21.7 million.
The manager of KIT also announced on Apr 1 that it will be acquiring an approximate 46.7 per cent stake in subsea cable solutions provider Global Marine Group (GMG) from Keppel Infrastructure Fund (KIF), which is Keppel’s private infrastructure fund. KIF and its co-investor previously held 100 per cent interest in GMG since acquiring it in early March. KIT’s pro forma assets under management, including the share of the enterprise value of GMG, would be S$9 billion, assuming the completion of the acquisition.
Post-acquisition, the remaining 53.3 per cent interest will be held by KIF and its co-investor.
However, the trustee-manager did note that its Q1 distributable income will decrease by 31.9 per cent on the year to S$45.5 million after adjusting for one-offs.
Distributable income from the trust’s distribution and storage segment increased to S$23.6 million in Q1, up 49.8 per cent from S$15.8 million in Q1 2024. Contribution from Ixom, KIT’s infrastructure business in Australia and New Zealand, however, was down 2.2 per cent at S$14.7 million on higher capex and interest expenses.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
That said, a loss of S$678,000 was noted for the distribution income under the Philippine Coastal segment due to higher debt repayment of S$5.2 million. It was partly offset by better performance, mainly due to higher contract prices and lower capex.
The trustee-manager said that upon the completed sale of Philippine Coastal, proceeds are expected to be redeployed to fund yield-accretive acquisitions.
Corporate expenses, comprising trust expenses and distributions payable to perpetual securities holders, management fees, as well as financing costs, were reduced by 27.7 per cent to S$25.7 million.
Additionally, the company’s Q1 business update noted that it obtained S$100 million bank facilities to refinance S$50 million of corporate loan facilities due in 2025. Undrawn committed facilities was S$498 million as at Q1.
As at Mar 31, KIT’s net gearing stood at 40.8 per cent, with interest coverage ratio at 6.8 times. About 75 per cent of its debt was hedged or pegged to fixed rates. The trust has successfully refinanced all debts due in this year as at Mar 31, the trustee-manager said.
Units of KIT closed flat on Monday at S$0.415.
