Keppel Infrastructure Trust (KIT) has posted a 31.2% y-o-y increase in distributable income (DI) to $119.4 million for 1HFY2025 ended June 30, driven by City Energy, IXOM, new acquisitions and the strategic divestment of Philippine Coastal Storage and Pipeline Corporation (Philippine Coastal).
Distributions per unit (DPU) for 1HFY2025 rose 1% y-o-y to 1.97 cents.
On April 1, KIT announced the acquisition of a 46.7% stake in Global Marine Group (GMG) for $122.3 million, one of the world’s largest independent subsea cable solutions providers. The acquisition will allow KIT to participate in the secular growth trend of rising global digitalisation and provide KIT’s unitholders with exposure to the growing subsea cable market, through an established platform specialising in critical support services for such infrastructure.
KIT says the asset will also generate stable and recurring cash flows as a substantial proportion of GMG’s business are secured by long-term contracts.
The announcement on the proposed acquisition of GMG followed closely the completion of the divestment of Philippine Coastal on March 20.
In June, KIT announced that it will be divesting a 24.62% stake in Ventura Motors Pty. Ltd. (Ventura), to private investment funds managed by Samsung Asset Management. The sale consideration of the transaction is A$130 million ($109 million). The transaction is expected to be completed in 3Q2025.
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Kevin Neo, CEO of Keppel Infrastructure Fund Management, Trustee-Manager of KIT, said, “Through the divestment of Philippine Coastal and the pending partial sale of Ventura Motors, we are crystallising value in excess of $300 million, and redeploying into growth sectors with strong tailwinds like digital infrastructure."
Neo adds: "Our proposed investment in Global Marine Group, a leading subsea cable solutions business backed by long-term contracts, adds a new engine of stable cash flows to enhance KIT’s financial resilience. We remain focused on disciplined capital recycling and delivering sustainable, steady distributions to our unitholders supported by our diversified portfolio of infrastructure assets and evergreen businesses."
KIT’s assets under management (AUM) as at June 30 is at $8.7 billion.
