SINGAPORE (Apr 20): The trustee-manager of Keppel Infrastructure Trust (KIT) has announced a total distribution per unit (DPU) of 0.93 cents for the 1QFY2020 ended March, unchanged from a year ago.
This translates to an annualised yield of 8.8%, based on KIT’s closing price of 42.5 cents on Mar 31, 2020.
KIT saw a 5.6% y-o-y increase in distributable cash flow to $51.5 million, led by a 22.3% increase in DCF from its Distribution & Network segment on the back of resilient performance from chemicals group Ixom.
1QFY2020 group revenue rose 27.6% to $406.2 million, largely due to full-quarter revenue contribution from Ixom.
KIT reported earnings of $18.9 million for 1QFY2020, swinging out of the red from a loss of $16.2 million a year ago.
This was mainly attributable to the absence of transaction costs incurred in relation to the acquisition of Ixom in 1QFY2019.
Trustee-manager’s fees and other operating expenses were also lower during the quarter, due to the acquisition fee paid to trustee-manager and transaction cost incurred in relation to the acquisition of Ixom.
On a fully diluted basis, earnings per unit climbed to 0.38 cents for 1QFY2020, compared to loss per unit of 0.41 cents in 1QFY2019.
After distribution payable to unitholders, adjusted net asset value per unit for the group dipped to 24.6 cents, down 3.9% from 25.6 cents a year ago.
As at end March, cash and cash equivalents stood at $416.3 million.
As part of its proactive capital management strategy, KIT’s trustee-manager has initiated its unit buyback programme after it was agreed by its shareholders at its Annual General Meeting (AGM) in April 2019.
The unit buyback aims to improve the sustainability of KIT’s distributions, while maintaining the KIT’s financial capability for strategic opportunities that will support total returns for Unitholders over the long term.
Since the start of the unit buyback on 30 March 2020, a total of 4,750,000 KIT units have been repurchased and cancelled as at 3 April 2020.
Meanwhile, the trustee-manager is in advanced discussions with lenders for the refinancing of the $700 million KMC loan, which will mature in June 2020.
Looking ahead, KIT’s trustee-manager is confident that KIT’s well-diversified portfolio of businesses and assets that provide essential products and services, is well positioned to weather this unprecedented period of uncertainty. KIT will also continue to deliver long-term sustainable distributions and returns to their unitholders.
Units in KIT closed 0.5 cents up, or 1.1% higher, at 47.5 cents on Monday.
