Macquarie Korea Infrastructure (A088980) Q1 2025 earnings summary

Executive summary

• Established in 2002 and listed in 2006, the fund invests in Korean infrastructure, with a market cap of KRW ~5.2 trillion and a 7.2% distribution yield in 2024.

• Portfolio includes 19 assets: toll roads, port, rail, city gas, and digital infrastructure, with KRW 3.1 trillion invested as of March 2025.

• 1Q 2025 revenue rose 8.2% YoY to KRW 199.2 billion and net income increased 10.0% to KRW 182.7 billion, driven by higher dividend income and lower expenses.

• Traffic volume across toll road assets decreased by 1.4% YoY due to adverse weather, economic uncertainty, and new competing roads.

• Baekyang Tunnel concession expired January 2025; asset returned to Busan city, with dissolution of project company expected by November 2025.

Financial highlights

• 1Q 2025 revenue: KRW 199.2 billion (+8.2% YoY); net income: KRW 182.7 billion (+10.0% YoY).

• Dividend income rose to KRW 129.5 billion from KRW 111.0 billion YoY; operating expenses declined.

• Cash and cash equivalents at KRW 421.3 billion as of March 31, 2025; total assets KRW 3.88 trillion.

• Debt outstanding at KRW 448 billion, with a weighted average interest rate of 3.8% and average maturity of 2.2 years.

• Gearing ratio was 27.2%, and domestic credit rating remained AA0.

Outlook and guidance

• Hanam Data Center signed rent agreements for 99% of target IT load, targeting full contracted rent revenue by mid-2027.

• Management expects continued stable distributions and ongoing investment in diversified infrastructure.