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 growth driven by acquisitions, notably Ventura and a 45% stake in the German Solar Portfolio, raising AUM to SGD 8.8 billion as of June 2024.

• 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 $151.2m, with group DI down 31.5% to $91.0m due to one-offs.

• Revenue for 1H 2024 was S$1,002.4 million, down 5.8% year-on-year, mainly due to lower revenue from Ixom and AGPC, partially offset by Ventura's contribution.

Outlook and guidance

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

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

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

• Wind and solar investments in Europe expected to provide stable, predictable cash flows due to long-term contracts and hedges.

• Ixom and Ventura are expected to deliver stable, inflation-protected revenues; Philippine Coastal is expanding capacity to meet growing demand.