Keppel Infrastructure Trust (A7RU) H1 2024 earnings summary

Executive summary

• 1H 2024 distributable income (DI) was SGD 91 million, with adjusted DI at SGD 117.8 million, up 2.1% year-on-year due to timing differences and one-offs.

• Distribution per unit (DPU) declared at 1.95 cents, a 1% increase year-on-year, supported by new acquisitions and steady operations.

• Portfolio AUM grew 8% to SGD 8.8 billion as of June 2024, driven by Ventura and German Solar Portfolio acquisitions.

• Ventura acquisition provides stable, inflation-indexed revenue with minimal patronage risk.

• Defensive cash flows underpinned by critical infrastructure assets and long-term contracts.

Financial highlights

• Adjusted DI for 1H 2024 was SGD 117.8 million, up 2.1% year-on-year, supported by new asset contributions and KMC resumption.

• DPU increased to 1.95 cents, up 1% year-on-year.

• AUM rose by 8% to SGD 8.8 billion following acquisitions.

• Asset subtotal DI fell 15.1% year-on-year to SGD 151.2 million, with group DI down 31.5% to SGD 91 million due to one-offs.

• Net gearing increased to 44.7% from 41.1% due to Ventura acquisition funding.

Outlook and guidance

• Expectation of continued organic and inorganic growth, especially in renewables and sustainable infrastructure.

• DI and DPU sustainability supported by stable, contract-backed cash flows.

• Interest rates expected to gradually decrease as market conditions ease, with hedging strategies in place.

• Fourth closing of German Solar Portfolio expected in 3Q 2024.

• Ongoing expansion plans in storage, renewables, and environmental services.