Keppel Infrastructure Trust (KIT)

This morning, we announced the proposed acquisition of a 50% equity interest in Marina East Water Pte. Ltd. (MEW), which owns the Keppel Marina East Desalination Plant (KMEDP), at an enterprise value of $323 million. Upon the expected completion of the proposed transaction, KIT and seller Keppel Ltd will each hold a 50% joint-controlling stake in MEW. KIT will receive 100% of the economic benefit from KMEDP, while the operations and maintenance (O&M) of KMEDP will continue to be performed by Keppel Ltd’s Infrastructure Division until 2045. KMEDP was named 'Desalination Plant of the Year' at the Global Water Awards 2021. For its outstanding design features and exceptional Active, Beautiful, Clean (ABC) standards, KMEDP became the first industrial plant in Singapore to be awarded the ABC Waters Certification (Gold) by PUB in October 2019. Mr @Kevin Neo, CEO of KIFM, said, “The strategic acquisition of the Keppel Marina East Desalination Plant, which is a high quality and energy efficient asset, will further enhance the strength and resilience of KIT’s portfolio, as well as support KIT’s environmental, social and governance goals. The facility is one of the key assets that contribute to Singapore’s water security and has a long-term contract with a strong counterparty, which will bolster KIT’s distributable income as well as support our goal of generating sustainable returns that will enhance total returns for Unitholders.” The transaction is expected to be completed by 1Q 2025, subject to the conditions precedent, including the receipt of regulatory approvals as well as approvals by Unitholders at an extraordinary general meeting, details of which will be provided in due course. KIFM intends to fund the investment with internal sources of funds and existing debt facilities of KIT. Upon completion of the transaction, KIT’s assets under management will grow from S$8.7 billion as at 30 Sep 2024 to approximately S$9.0 billion. Read more on https://lnkd.in/gUc2iBSr #KeppelInfrastructureTrust #KIT #KMEDP #Desalination 

9M 2024 DI was underpinned by contribution from new acquisitions and the resumption of contributions from the Keppel Merlimau Cogen Plant post capital restructuring. As an active manager of its portfolio, KIT further announced the sale of its entire equity interest of 50% in Philippine Coastal Storage & Pipeline Corporation for an enterprise value of USD460m (S$598m) to align with its long term strategy to focus on lower carbon energy transition segments. Upon completion of the transaction in early 2025, KIT is expected to realise a gain of USD21.1m (S$27.5m). KIT’s 9M 2024 Distributable Income (DI) was S$106.1m, versus 9M 2023 DI of S$266.1m which included a special distribution of S$131.2m.  Adjusting for one-offs and timing differences, 9M 2024 DI would be S$124.0m, 11.2% lower year-on-year. Positive contribution from new acquisitions of S$20.8m was offset by lower contribution from Senoko WTE (S$6.4m) and lower fuel cost over-recovery at City Energy (S$9.3m); the remaining variance was due to higher growth capex of S$20.2m mainly for tank builds at Ixom on the back of stronger demand. On the capital management front, KIT issued S$200m 4.90% perpetual securities and raised S$200m via placement during the quarter, fully repaying the term loan for the financing of the Ventura acquisition. With an optimised capital structure, healthy net gearing of 40.1% as at 30 Sep 2024 provides comfortable debt headroom to support KIT’s growth. Read more on https://lnkd.in/gYCNsk3d #KeppelInfrastructureTrust #KIT #infrastructure 

Keppel Fund Management & Investment, together with its listed REITs and Trust, Keppel REIT, Keppel DC REIT , Keppel Pacific Oak US REIT (KORE) and Keppel Infrastructure Trust (KIT) recently held an Investor Day in Tokyo, hosted by the Bank of America. During the panel discussion, the respective CEOs shared insights on the strategic direction for their entities as well as perspectives on market developments and growth prospects. Management also engaged in in-depth discussions with investors over 1:1 meetings. #SREITs  #REITs #Trust #USofficeREIT #infrastructure #datacentre #office #connectivity #realestate #assetmanager

Focusing on growth along the theme of sustainable infrastructure, KIT continued its portfolio expansion with the completion of the Ventura acquisition and first three phases of the German solar portfolio in 1H 2024, driving growth in assets under management (AUM) to $8.8 billion as at 30 June 2024. KIT delivered a steady set of results with higher underlying 1H 2024 Distributable Income (DI). 1H 2024 DI of $91.0 million was largely due to timing differences as well as one-offs. Factoring in these one-offs and timing differences, 1H 2024 DI after adjustments was $117.8 million, 2.1% higher year-on-year. 1H 2024 DI was underpinned by steady operational performance, the resumption of contributions from the Keppel Merlimau Cogen Plant (KMC) post capital restructuring as well as contributions from new acquisitions completed in 1H 2024, which contributed $26.9 million or 17.8% of Asset Distributable Income for 1H 2024. Accordingly, the Trustee-Manager declared Distribution per Unit (DPU) of 1.95 cents, an increase of 1% year-on-year.  The 1H 2024 DPU translates to an annualised distribution yield of 8.3%, based on KIT’s closing price of $0.470 as at 28 June 2024. Read more on https://lnkd.in/g7kaWfiA #KeppelInfrastructureTrust #KIT #infrastructure 

Keppel’s four listed REITs and Trust participated in the annual REITs Symposium 2024, Singapore’s largest REIT event organised by REITAS (REIT Association of Singapore) , ShareInvestor Pte Ltd and InvestingNote. The in-person event provided attendees with opportunities to learn more about Singapore REITs. During the panel discussion on “Navigating Through Challenges And Unlocking Opportunities”, Ms Sock Cheng Ang, Chief Operating Officer, Keppel Fund Management and Investment, shared how Keppel REIT, Keppel DC REIT , Keppel Pacific Oak US REIT (KORE) and Keppel Infrastructure Trust (KIT) have remained resilient. She emphasised the entities’ strategies to deliver long-term value to unitholders, notwithstanding the current landscape marked by global headwinds and uncertainties. #Keppel #REITsSymposium #KeppelREIT #KeppelDCREIT #KeppelPacificOakUSREIT #KeppelInfrastructureTrust

KIT’s Adjusted EBITDA increased by 3.8% year-on-year to $130.7 million in 1Q 2024, supported by contributions from the Keppel Merlimau Cogen Plant (KMC) and the addition of the German Solar Portfolio to the KIT portfolio. The KIT portfolio continues to deliver strong operational performance across its businesses and assets and is largely insulated from inflation and higher costs due to cost pass-through mechanisms and availability-based models. The Trustee-Manager remains focus on growth and value creation. In 1Q 2024 alone, the Trustee-Manager has announced/completed transactions that will potentially add 0.62 cents to KIT’s FY 2023 ordinary Distributions per Unit (DPU), coming from KMC, Ventura and the German Solar Portfolio, translating to a significant accretion of over 16% based on FY 2023’s pro forma DPU. Read more on https://lnkd.in/gD7JPbC9 #KeppelInfrastructureTrust #KIT #infrastructure

Once again, we appreciate the support from Unitholders at KIT’s Annual and Extraordinary General Meetings. Leveraging the sustainable infrastructure theme, the continued transformation of the KIT portfolio through growth and value creation yielded record financial performance for FY 2023.   We are excited and encouraged by KIT’s growth prospects. We will continue to actively manage the Trust’s portfolio and create value to achieve sustainable growth for Unitholders. #AGM #EGM #KIT #KeppelInfrastructureTrust #infrastructure

We are pleased to present Keppel Infrastructure Trust (KIT)’s Annual Report and Sustainability Report for 2023: Investing in the Future of Infrastructure Leveraging the sustainable infrastructure theme, the continued transformation of the KIT portfolio through growth and value creation yielded record financial performance, with the Trust’s FY 2023 EBITDA, Distributable Income and Distributions per Unit achieving its highest level since KIT was formed in 2015. The Trustee-Manager will continue to scale up and build a portfolio of essential businesses and assets, providing investors with exposure to the resilient and growing global infrastructure sector. Read more on https://lnkd.in/gf_bQ6xx #KeppelInfrastructureTrust #KIT #AnnualReport #SustainabilityReport #Infrastructure #Recordperformance #Sustainability

We are pleased to announce that Keppel Infrastructure Trust together with Keppel Corporation, has proposed to amend and extend the Capacity Tolling Agreement (CTA) for the Keppel Merlimau Cogen Plant (KMC Plant) by ten years from 2030 to 2040. The CTA, if amended and extended, is expected to generate up to $1,080 million in long term capacity payments for KMC. This will provide a stable base of contracted cash flows to underpin a refinancing of KMC’s existing loan facility, which will unlock value for both shareholders with the resumption of the asset’s contributions to Keppel and KIT. In addition, the operations and maintenance (O&M) contract between KMC and Keppel’s Infrastructure Division is also proposed to be amended and extended by another 10 years to 2044. Mr Kevin Neo, CFA, CEO of Keppel Infrastructure Fund Management (KIFM), said, “With the proposed CTA extension, we will be able to prolong cash flows from the KMC Plant by another 10 years, which puts us in a strong position to restructure KMC’s loan facility towards resuming contributions sooner. Through the proposed extension of the O&M contract with Keppel, KIT can further tap Keppel’s deep operating capabilities to undertake strategic asset enhancements to the KMC Plant that will improve its emissions intensity and allow it to contribute to the decarbonisation of Singapore’s power sector”. The KMC Plant was the first independent power project to enter the Singapore electricity market since the implementation of the National Electricity Market of Singapore in January 2003. KMC Plant has been operational since 2007 with a strong track record of efficiency and reliability. Subject to the approval of Keppel shareholders and KIT unitholders at their respective extraordinary general meetings, and assuming that the capital restructuring of KMC was effected on 1 January 2023, KIT’s pro forma Distributable Income for FY2023 will increase by 10.9% from $217.8 million to $241.6 million, excluding effects of the capital optimisation at Ixom. Read more on https://lnkd.in/gEaVcApk #KeppelInfrastructureTrust #KIT #Keppel #Infrastructure #KeppelMerlimauCogenPlant #Energy #Electricity

Keppel Infrastructure Trust's new CEO Kevin Neo maintains the trust's investment strategy focused on sustainable urbanisation, with recent acquisitions in solar energy and transportation aligning with essential services.