Broker: OCBC Group Research
Date of Report: 14 May 2026

Excerpt from OCBC Group Research report.

Report Summary

• Stock: Keppel Infrastructure Trust (KIT SP EQUITY)
• Action: BUY
• Target Price (Fair Value): SGD 0.580 (raised from SGD 0.545)
• Last Close: SGD 0.530
• Key Idea: KIT is recommended as a defensive play with exposure to diversified, inflation-protected infrastructure assets focused on sustainability, energy transition, and stable cash flows. Over 90% of its portfolio is shielded from inflation with cost pass-throughs or strong price-setting power. Acquisitions are a key growth driver.
• Highlights:
  • 1Q26 distributable income (DI) rose 18.2% year-on-year to SGD 53.7m (excluding prior divestment gains).
  • Proposed acquisition to increase stake in Keppel Merlimau Cogen (KMC) to 90%, potentially raising FFO and DPU by 8% and 6% respectively, if completed.
  • Portfolio resilience is reinforced by long-term contracts and minimal impact expected from the Middle East conflict.
  • Strong distribution yield: 7.5% (FY26E), with DPU projected to rise modestly over FY26-27.
  • Key risks: refinancing challenges, regulatory issues, or lower-than-expected asset availability.

Call to Action: BUY with a target price of SGD 0.580. Keppel Infrastructure Trust offers defensive, inflation-hedged exposure to infrastructure with potential for DPU growth, supported by asset acquisitions and stable cash flows.

above is an excerpt from a report by OCBC Group Research. Clients of OCBC Group Research can be the first to access the full report from the OCBC Group Research website : https://www.ocbc.com/group/research