Netlink NBN Trust FY26 - Maybank Research 2026-05-18: Stable Yield; Resilient Cash Flows

• NetLink Trust delivered another stable year, with FY26 NetLink Trust's DPU rising 1% y-o-y to 5.42 cents, implying an attractive ~5% yield. While earnings were down 13% y-o-y, impacted by higher depreciation and interest costs linked to elevated capex and the Seletar Central Office, operating cash flows remained broadly stable y-o-y.

Anchor of stability

• - Read this at SGinvestors.io -
• - Read this at SGinvestors.io -

Firm residential demand & ancillary projects outlook

• Residential broadband connections remained stable q-o-q, however they fell y-o-y due to a one-off dormant line cleanup last year. Longer term, growth remains supported by Singapore’s pipeline of ~20–25k new housing units annually. Ancillary project revenues should also stay healthy into FY27, backed by ongoing construction and diversion activity.

• While margins may face pressure from lower labour capitalisation, management stressed this is largely an accounting shift rather than a deterioration in cash flows or dividend capacity, as operating cash flows remained largely stable.

Elevated capex; returns covered by RAB framework

• Read more at SGinvestors.io.

Hussaini Saifee Maybank Research | https://www.maybanktrade.com.sg/ 2026-05-18

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