Keppel Infrastructure Trust's distributable income (DI) in 1QFY2025 ended March 31 rose by 27.7% to $65 million. However, adjusting for one-offs, 1QFY2025 DI would be $45.5 million.
This includes the gain on divestment of Philippine Coastal (-$19.5 million). 1QFY2024 DI would be $66.8 million after adjusting for growth capex and upfront financing fee at Philippine Coastal (+$2.9 million) and performance fees (+$13.0 million). These one-off adjustments are net of its corresponding base fee, where applicable.
Assets under management (AUM) as at March 31 is $8.7 billion, representing KIT’s economic interest in the enterprise value of its investments plus cash held at the Trust.
Pro forma AUM, including share of enterprise value of Global Marine Group assuming acquisition completion, is $9.0 billion.
On April 1, KIT announced the proposed acquisition of a 46.7% stake in GMG from Keppel Infrastructure Fund (KIF). GMG was acquired on March 4 by KIF and a co-investor from the affiliates of JF Lehman & Company.
KIT’s initial investment for the 46.7% stake is US$90.3 million ($122.2 million), comprising a “subscription consideration” and a ticking fee.
See also: Nanofilm Technologies reports $44 mil revenue in 1QFY2025; direct exposure to US tariffs limited
Based on a shareholders’ agreement, KIT, KIF and the co-investor will provide further equity commitment based on their pro rata stakes. This equity will be deployed within three years. KIT’s share of the equity commitment is US$52.5 million. Hence, KIT’s total outlay for GMG is US$143.1 million.
The acquisition’s fund from operations (FFO) is 3.6% of KIT’s FFO in FY2024 and its value is 7.5% of KIT’s market capitalisation. GMG is considered an interested party transaction and unitholders' approval in an EGM is required.
KIT's net gearing inched up by 4 basis points q-o-q to 40.8% while is interest coverage ratio dipped to 6.8x from 7x q-o-q. Weighted average cost of debt as of March 31 was 4.69% compared with 4.51% a quarter ago.
As at March 31, KIT has successfully refinanced all debts due in 2025. KIT's Trustee-Manager will commence refinancing discussions with lenders for loans maturing in 2026 in advance.
