Keppel Infrastructure Trust (A7RU) H1 2025 earnings summary

Executive summary

• Distributable income (DI) rose 31.2% year-on-year to SGD 119.4 million for 1H 2025, driven by higher contributions from City Energy, Ixom, Ventura, and divestment gains, including the Philippine Coastal exit.

• Declared distribution per unit (DPU) of SGD 0.0197, up 1% year-on-year.

• Strategic capital recycling included divestments of Philippine Coastal and a 24.62% stake in Ventura, generating SGD 301 million in proceeds for redeployment.

• Proposed SGD 122.3 million investment in Global Marine Group (GMG) to enter digital infrastructure, expected to be DPU accretive, pending regulatory and unitholder approval.

• Revenue rose 11.5% year-on-year to S$1,118.1 million, with profit attributable to unitholders at S$60.0 million, reversing a prior loss.

Financial highlights

• DI for 1H 2025 reached SGD 119.4 million, a 31.2% increase year-on-year, including divestment gains.

• DPU declared at SGD 0.0197, 1% higher year-on-year, payable on 13 August 2025.

• Portfolio AUM reached $8.7b as of 30 June 2025, reflecting growth from acquisitions and value creation.

• Group EBITDA increased 5.9% to S$236.6 million year-on-year; FFO fell 10.9% to S$123.5 million.

• Net gearing at 39.3% and net debt to EBITDA at 4.6x as of 1H 2025.

Outlook and guidance

• Strong investor appetite for infrastructure assets expected to continue, supported by trends in decarbonization, digitalization, and demographic change.

• Energy transition sector poised for robust growth, with global investments in renewables and electrified transport rising.

• Digital infrastructure, especially submarine cables, identified as a key growth area, with the global market projected to grow at a 6.3% CAGR through 2035.

• Portfolio remains resilient due to domestic focus and essential nature of assets; limited direct impact from US tariffs.

• Ventura's sale of a 24.62% stake for A$130 million is expected to complete in 3Q 2025, reducing the stake to 73.06%.