KIT income jumps 24% to $249.5m in FY2025 on portfolio growth

Digital infrastructure acquisition expands the trust’s portfolio.

Keppel Infrastructure Trust (KIT) reported a 24% year-on-year increase in distributable income to $249.5m for financial year (FY) 2025, supported by growth across its energy and distribution portfolios, as well as gains from disciplined capital recycling.

The trust declared a second-half distribution per unit (DPU) of 1.97 cents, bringing total DPU for FY 2025 to 3.94 cents, unchanged from the previous year. The record date is 11 February, with payment expected on 20 February.

Gross revenue rose 2.8% to approximately $2.28b, while earnings before interest, taxes, depreciation and amortisation remained stable at $493m.

Assets under management stood at $9.1b, spanning 15 essential businesses across more than 10 mature economies.

Net proceeds of $301m were generated from the divestment of its entire stake in Philippine Coastal and a partial sale of Ventura, an Australian bus operator.

Of this, $120m was redeployed in November 2025 to acquire a 46.7% stake in Global Marine Group, marking KIT’s entry into the digital infrastructure segment.

The energy transition segment remained the trust’s largest contributor, with distributable income rising 27.8% to $187.3m, supported by City Energy’s core operations and surplus cash from capital management at Aramco Gas Pipelines Company.

Distributable income from the distribution and storage segment increased 17.3% to $116.4m, driven largely by Ixom.

Ixom’s funds from operations surged 42% following expansion in the mining and dairy sectors and the acquisition of the Hilditch base oils business.

In contrast, the environmental services segment faced headwinds, with distributable income falling 36.7% to $44.3m due to lower contributions from the Senoko Waste-to-Energy plant and pricing pressures at South Korean waste management unit EMK.

KIT maintained a healthy balance sheet, with net gearing at 38.7% and an interest coverage ratio of 7.6 times as at year-end. The weighted average cost of debt improved slightly to 4.4%, from 4.5% in 2024.

Looking ahead, management said the trust will continue to prioritise “evergreen” businesses that generate stable cash flows. Focus areas include expanding incineration capacity in South Korea to meet tightening environmental regulations and pursuing accretive acquisitions in the digital and renewable energy sectors to offset declining income from maturing concession assets.