Macquarie Korea Infrastructure (A088980) Q4 2024 earnings summary

Executive summary

• Established in 2002 and listed in 2006, the fund manages KRW 5.1 trillion in market capitalization and invests in 20 infrastructure assets across Korea, including toll roads, ports, rail, city gas, and digital infrastructure.

• Reported revenue of KRW 422.1 billion and net income of KRW 348.1 billion for 2024, up 6.6% and 6.7% year-over-year, mainly due to higher dividend income.

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

• 2024 saw significant capital activity, including a follow-on offering and the acquisition of a major data center asset.

• Board approved a total distribution of KRW 182.0 billion (KRW 380 per share) for 2H 2024, to be paid on 28 February 2025.

Financial highlights

• 2024 revenue was KRW 422.1 billion, up 6.6% year-over-year; net income was KRW 348.1 billion, up 6.7% year-over-year, driven by higher dividend income.

• 4Q 2024 revenue and net income rose 22.5% and 28.8% year-over-year, respectively.

• Dividend income grew to KRW 137.4 billion, while interest income decreased slightly due to changes in BNCT's subordinated loan agreement.

• Total assets reached KRW 3,829.6 billion as of 31 December 2024, up from KRW 3,339.1 billion a year earlier.

• Proportionately consolidated cash balance was KRW 450.8 billion; gearing ratio stood at 26.4%.

Outlook and guidance

• Hanam Data Center is expected to ramp up operations through 2025, with full contracted rent revenue anticipated by mid-2027.

• Distribution guidance for the second half of 2024 was maintained, with payment scheduled for February 2025.

• Ongoing focus on capital flexibility and investment in new infrastructure assets.