Keppel Infrastructure Trust distributable income drops by 13%

The firm blames the drag to higher trust expenses.

Keppel Infrastructure Trust (KIT) reported a drop in its distributable income by 13% for the first half of 2022 despite an increase of 2.7% in distribution per unit (DPU).

This was due mainly to higher trust expenses as well as the under recovery of fuel costs at City Energy as a result of timing differences, which KIT said will be recovered through higher tariffs in the future. 

The group’s increase in DPU was attributed to higher earnings before interest, taxes, depreciation, and amortization (EBITDA) of $172.6m, 10.2% higher than last year due to the strong performance of Ixom, KIT’s industrial infrastructure business in Australia and New Zealand.

KIT said that the H1 2022 DPU translates to a distribution yield of 6.7%, based on KIT’s closing price of $0.570 as of 30 June 2022.