Keppel Infrastructure Trust Unveils Ambitious Growth Plans, Focuses on Sustainability and Value Creation

Keppel Infrastructure Trust (KIT) has delivered a solid performance in FY 2024, with an 8.6% year-on-year increase in Funds From Operations (FFO) to $277.8 million. The trust’s Distribution Per Unit (DPU) also grew by 1.0% to 3.90 cents, supported by new acquisitions, the resumption of contribution from Keppel Merlimau Cogen (KMC), and steady portfolio performance.

Key Highlights:

Expansion across KIT’s business segments, including the acquisition of a German solar portfolio, the Keppel Marina East Desalination Plant in Singapore, and a bus operator in Victoria, Australia.
Continued focus on value creation, with initiatives driving significant EBITDA growth across the portfolio, including Ixom (+54%), City Energy (+80%), and Philippine Coastal (+85%).
Diversified portfolio with $9.0 billion in Assets Under Management (AUM), up 22% year-on-year, spanning energy transition, environmental services, and distribution and storage segments.
Solid balance sheet with a net debt-to-EBITDA ratio of 5.1x and a weighted average debt maturity of 3.75 years.
Commitment to sustainability, with a target to achieve net-zero greenhouse gas emissions by 2050 and a renewables target of 2 GW by 2030.

Shareholder-Friendly Proposals:

The report also outlines several shareholder-friendly proposals, including:
Authorizing the Trustee-Manager to issue new units and make or grant convertible instruments.
Renewing the Unitholders’ Mandate for Interested Person Transactions.
Authorizing a Unit Repurchase Program.
Approving the Proposed KIHPL Placement Mandate, which would allow the Trust’s sponsor, Keppel Infrastructure Holdings Pte. Ltd. (KIHPL), to participate in future placements to maintain its 18.21% stake in KIT.
These proposals, if approved, could have a significant impact on the Trust’s ability to fund future growth and maintain sponsor alignment, potentially affecting the share price.

Conclusion:

Keppel Infrastructure Trust has delivered a strong performance in FY 2024 and is well-positioned for future growth, with a focus on value creation, sustainability, and shareholder-friendly initiatives. Investors should closely monitor the upcoming AGM resolutions, as they could have a meaningful impact on the Trust’s strategic direction and share price.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with a financial advisor before making any investment decisions.

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