Macquarie Korea Infrastructure (A088980) Q2 2025 earnings summary

Executive summary

• Revenue for 1H 2025 reached KRW 276.9 billion, up 7.5% year-over-year, with net income at KRW 243.5 billion, up 10.0% year-over-year, driven by higher dividend income and lower operating expenses.

• Interim cash distribution of KRW 182.0 billion (KRW 380 per share) approved, to be paid on 29 August 2025.

• Traffic volume across toll road assets decreased by 1.0% year-over-year due to economic uncertainty and new competing roads.

• The fund manages KRW 5.5 trillion in market capitalization and invests in 19 infrastructure assets across Korea, including toll roads, ports, rail, city gas, and digital infrastructure.

• Delivered a 7.2% distribution yield in 2024 and maintains a credit rating of AAO (Stable).

Financial highlights

• 2Q 2025 revenue: KRW 77.7 billion (+6.0% YoY); net income: KRW 60.9 billion (+10.0% YoY).

• Dividend income rose to KRW 136.6 billion (up from KRW 111.0 billion), while interest income declined to KRW 140.3 billion (from KRW 146.5 billion).

• Expenses decreased by 7.3% to KRW 33.4 billion, supporting net income growth.

• EPS for 1H 2025 was KRW 509, up from KRW 508, reflecting increased shares after a follow-on offering.

• Proportionately consolidated cash and cash equivalents: KRW 408.2 billion; gearing ratio: 25.8%.

Outlook and guidance

• Hanam Data Center has signed rent agreements for 99% of its target IT load, with full contracted rent revenue expected after operational ramp-up completes in mid-2027.

• Interim distribution aligns with prior guidance.