Keppel Infrastructure Trust’s nine-month distributable income drops 17%

Keppel Infrastructure Trust (KIT) reported on Oct 27 that distributable income for the first nine months of 2026 fell to S$140.1 million, a decline of 17 per cent from S$168.9 million a year earlier.

The trust said the decline reflected the absence of divestment gains booked in the previous year. Excluding those gains of S$44.1 million, distributable income grew 12.3 per cent from S$124.8 million.

Total assets funds from operations reached S$293.7 million, up 14.8 per cent from S$255.8 million. KIT attributed the increase to stronger contributions from energy transition, distribution and storage, alongside a contribution from digital infrastructure. Lower environmental services earnings partly offset those gains.

Energy transition generated S$176.6 million in funds from operations, rising 15.1 per cent from S$153.5 million. KIT linked the improvement to recent acquisitions involving Keppel Merlimau Cogen (KMC) and German Solar Portfolio II.

Distribution and storage contributed S$76.5 million, an increase of 15.3 per cent from S$66.4 million. Digital infrastructure added S$11.9 million, having made no contribution in the corresponding period a year earlier. Environmental services fell 20.1 per cent to S$28.7 million from S$36 million.

At Sep 30, net debt was S$2.9 billion, compared with S$2.5 billion at end-2025. Cash declined to S$535 million from S$719 million over the same period, while net gearing rose to 46 per cent from 38.7 per cent.

KIT said the higher gearing reflected cash used for distributions and capital deployed to acquire an additional stake in KMC and German Solar Portfolio II.