The Singapore-based infrastructure fund’s long-term constructed assets account for 60% of its distributable income in 1QFY2025. Its funds from operations, a key measure of cash flow for infrastructure and REIT-style businesses, has been growing steadily at 6.3% per year from FY2019 to FY2024, the analysts note.
CGS International’s analysts Li Jialin and Lim Siew Khee have initiated an “add” call on Keppel Infrastructure Trust (KIT) with a target price of 45 cents, backed by the company’s “stable” 10% dividend yield for FY2025 to FY2027. KIT’s financial year ends on Dec 31.
“We like KIT for its diversified income streams and attractive returns, amidst favourable interest rate outlook,” write Li and Lim in their June 27 report. Per its 1QFY2025 business update, KIT is in the business of energy transition, distribution and storage, as well as environmental services across several geographies in Asia, the Middle East, Europe and Oceania.
