Keppel Infrastructure Trust (A7RU) H1 2026 earnings summary

Executive summary

• Portfolio valued at SGD 9.4 billion as of June 30, 2026, with total returns of 13% year-to-date and 136% over the past decade, driven by resilient earnings and strategic growth initiatives.

• Revenue rose 13.8% year-over-year to S$1,272.3 million, led by Distribution & Storage and Energy Transition segments, despite lower Environmental Services revenue.

• Distributable income before divestment gains rose 1.2% year-on-year to SGD 101.1 million, with 1H 2026 DPU declared at SGD 0.0199.

• 80% of divestment proceeds redeployed into accretive acquisitions, notably increasing KMC stake to 90% and acquiring 46.7% of GMG.

• Portfolio demonstrated strong cash flow resilience amid geopolitical tensions, with limited direct exposure and effective cost pass-through mechanisms.

Financial highlights

• Total asset funds from operations (FFO) up 14% year-on-year to SGD 200.5 million, mainly from Energy Transition, Distribution & Storage, and new contributions from GMG.

• EBITDA increased 7.8% to S$255.1 million; FFO up 24.4% to S$154.1 million year-over-year.

• Net profit dropped 58.6% to S$23.8 million, mainly due to fair value loss on AGPC and absence of divestment gains.

• Consolidated debt rose to SGD 3.28 billion; net gearing increased to 44.2% due to acquisitions and reduced cash post-distribution.

• Weighted average cost of debt stable at 4.4–4.5%; interest coverage ratio improved to 8.3x.

Outlook and guidance

• Focus on disciplined investment, capital recycling, and operational excellence to drive sustainable DPU growth and total returns.

• Management expects higher KMC contributions in 2H 2026 after increasing its stake to 90%.

• Wind Farms portfolio to benefit from wind resource recovery; German Solar Portfolio supported by stable household credit.

• BKR2 feed-in tariff to step down in October 2026, with an estimated SGD 4 million annual DI impact, partially offset by lower loan amortization.

• FY 2026 refinancing fully secured; undrawn committed revolving credit facilities of S$304 million and new S$125 million facility obtained in July 2026.