Keppel Infrastructure Trust - DBS Research 2025-04-23: Resetting Expectations; Downgrade To HOLD.

• Overall, we have a more cautious stance on Keppel Infrastructure Trust (SGX:A7RU) and lower our recommendation to HOLD. Clearer visibility on distribution sustainability is needed before a re-rating can be expected.
• - Read this at SGinvestors.io -

1Q25 distributable income lower y-o-y.

• According to our estimates, Keppel Infra Trust's core distributable income (DI) for 1Q25 came in at S$43.3mil, down 15% from 1Q24 levels (unadjusted). Including S$21.7mil gain on divestment of 50% stake in Philippine Coastal asset, DI would have been S$65.0mil, but we reckon disposal proceeds or disposal gains should count towards financing new acquisitions or reducing debt or special distributions and not towards comparing the Trust’s ability to maintain consistent distributions from operating assets.
• - Read this at SGinvestors.io -

KIT has underperformed S-REIT Index.

• Read more at SGinvestors.io.

Above is an excerpt from a report by DBS Group Research.
Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.

Previous report by DBS:
2023-11-06 Keppel Infrastructure Trust - Special Dividend Bonanza For Unitholders.

Price targets by other brokers at Keppel Infra Trust Target Prices.

Listing of research reports at Keppel Infra Trust Analyst Reports.

Relevant links:
Keppel Infra Trust Share Price History,
Keppel Infra Trust Announcements,
Keppel Infra Trust Dividend Payout Dates & Corporate Actions,
Keppel Infra Trust News