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Kep Infra Tr
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KIT
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MrBear12
Supreme |
28-Aug-2024 10:00
Yells: "Cast all our anxieties on Jesus for He cares for us" |
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Increase in AUM across the board.
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prophetjul
Master |
28-Aug-2024 09:22
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BTW do you know why the management fees have increased so much in the last half year? Is it solely because of Ventura?
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prophetjul
Master |
28-Aug-2024 09:20
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The issue price.
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MrBear12
Supreme |
28-Aug-2024 09:16
Yells: "Cast all our anxieties on Jesus for He cares for us" |
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I guess many can pick up @ 43-44 cents.
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prophetjul
Master |
28-Aug-2024 09:01
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Selling pressure cometh....... | ||||
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MrBear12
Supreme |
28-Aug-2024 07:57
Yells: "Cast all our anxieties on Jesus for He cares for us" |
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Provided you can re-finance the loan at a more favorable rate. But re-financing is itself a risk, and one may not get back a 400 million loan at favorable rates at the time of re-financing. Reducing gearing is a sure way to reduce interest costs and minimises the company' s exposure to interest rate risks. Who knows, what if the Fed does a U-turn?
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investshare
Supreme |
27-Aug-2024 23:24
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Another perspective, knowing interest rate is going down, is it a better option to keep the loan, which pays lesser in interest compared to the new share which pays higher dividend? | ||||
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MrBear12
Supreme |
27-Aug-2024 23:21
Yells: "Cast all our anxieties on Jesus for He cares for us" |
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You see Alignment, I see things more in the light of fair or not, less so as to correct or not, or right or wrong, or even good or bad. I recognise impurity (mixtures) in all material things and just go for what works fairly. What surprised me was the equity fund raising took place not in May but now. We worried that the issue price for new equity would be less than 40 cents in May. But as markets have recovered somewhat, KIT can raise equity at above 40 cents, which is good enough for me, even as some may argue, could not KIT have raised funds earlier when the price of KIT was closer to 50 cents? We could go on arguing. Maybe the business update for 3Q may provide some further progress on how KIT is performing. As for me, I take a more optimistic view in line with broader economic outlooks, and temper my nit-picking at company decisions.
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MrBear12
Supreme |
27-Aug-2024 22:37
Yells: "Cast all our anxieties on Jesus for He cares for us" |
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No, investorshare, I was merely calculating below the estimated dividends for 2024 had there been no dilution.
To estimate the effect of dilution, I'll have to project the dividend payment for 5 Sept 2024 onwards, for which I have no data at all. So I cannot estimate the FY 2024 after dilution. A lot depends on how well KIT performs henceforth till the end of the year. I'd expect KIT to have a greater distributable income henceforth due to increased revenues and lower costs. BY how much i do not know. BUT as long as it is significantly increased, that should cover the enlarged share base. Currently, I will just wait for FY 2024 report next Jan for clearer indications. I expect a small 1 percent increase in DPU.
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investshare
Supreme |
27-Aug-2024 22:23
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You forget to add the effect of dilution. DPS should be even lower post dilution.
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Alignment
Elite |
27-Aug-2024 21:25
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I stand corrected. I think your maths is right. Perhaps some of the assets calculate revenue on a per month basis rather than by day, but directionally it is as you say. That is a bit disappointing. A plausible explanation might be this is to do with short term debt costs that impacted this period. There is an one off upfront cost for the perp which was issued in August, while the debt initially taken out for the Ventura deal was probably of a short term nature and would typically have aggressive margin step-ups to encourage a quick refinance. The failure of KIT to get a quick equity raise away in 2Q24 probably meant that KIT began to start paying eye wateringly expensive debt costs in 3Q24, which is why KIT ultimately could not afford to wait any longer and had to issue new equity at a much lower price than the $0.47 it initially assumed when the Venture deal was first announced. One of the reasons why I thought they should have done the equity raise much earlier.
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lictenau
Member |
27-Aug-2024 12:53
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Keppel Infrastructure Trust (KIT) (https://growbeansprout.com/quote/A7RU.SI) will be launching a private placement of between 456.6 million and 469.5 million new units to raise gross proceeds of at least $200 million. The units will be issued to eligible institutional and other investors at an issue price range of between 42.6 cents and 43.8 cents per placement unit. | ||||
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MrBear12
Supreme |
27-Aug-2024 11:29
Yells: "Cast all our anxieties on Jesus for He cares for us" |
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Thanks alignment.
I was a little disappointed with the stub dividend of .7 cents. That is dividend for 66 days in 2 H 2024 -- 01july to 4 Sept 2024. If I take 365/66×0.7cents I get only just under 3.9 cents full year. Not exciting, unless I have made some error.
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Alignment
Elite |
27-Aug-2024 11:22
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Speaking for myself, I have been openly critical about various aspects of the Ventura deal (I am not going to repeat myself, anyone interested can scroll down on this chat). At the time of the acquisition KIT stated its intent to fund the acquisition via a placement (part of which potentially may have been a rights issue) at around $0.47, whereas it now seems the funding will come from a smaller placement at a lower price combined with a perp yielding 4.9%. On balance this is a better outcome than initially promised, although I will not go so far to say my previous concerns have been satisfied. Personally I would have wished the EGM vote to approve the equity raise to have failed in order to teach management a lesson to show shareholders more respect but sadly that was not to be, and I have to recognise shareholders themselves voted for it. On the bigger picture (and in my mind the most important thing) of DPU progression, the proposed stub dividend of $0.007 for two months implies a FY DPU of $0.042 which is about 8% higher than the implied annualised 1H24 DPU. That is clearly good news. Life is not black and white. Similarly, not everything management does is good and not everything is bad. You just have to decide whether there is more good than bad and whether to take the rough with the smooth. I would argue here it is (much) more smooth than rough and overall things look very positive. |
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MrBear12
Supreme |
27-Aug-2024 11:09
Yells: "Cast all our anxieties on Jesus for He cares for us" |
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That is significant dilution. Yet the capital raised will be for paring down debt which is good for long term.
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prophetjul
Master |
27-Aug-2024 10:59
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Dilution = 460/5626 = 8.2%
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MrBear12
Supreme |
27-Aug-2024 09:33
Yells: "Cast all our anxieties on Jesus for He cares for us" |
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Very small dilution.
Price offered is OK. Improved capital structure Dividends will increase
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investshare
Supreme |
27-Aug-2024 09:28
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Dilution again.
Haha still got people think can get higher dividend? |
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MrBear12
Supreme |
13-Aug-2024 19:37
Yells: "Cast all our anxieties on Jesus for He cares for us" |
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Keppel Infrastructure Trust distributed dividend today. Happy collection! |
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Joelton
Supreme |
01-Aug-2024 10:59
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Distributable income is better metric for assessing Keppel Infrastructure Trust&rsquo s performance
Profit after tax not as relevant a metric for business trusts such as KIT
I REFER to the article &ldquo Keppel Infrastructure Trust reverses into the red with a loss of S$23.9 million in H1 2024&rdquo (BT, Jul 26), which highlights profit after tax (PAT), a metric that is not as relevant to a business trust such as Keppel Infrastructure Trust (KIT).
As investors in a business trust, KIT&rsquo s unitholders are more focused on steady, predictable and recurring cash distributions, which are paid out of the trust&rsquo s operating cash flows. This is unlike companies, which may only make dividend payments out of accounting profit.
Therefore, the ability to pay distributions from cash flows is important for business trusts, such as KIT, which is focused on generating stable and resilient operating cash flows that support distributions to unitholders.
Due to depreciation, which is non-cash in nature, some of KIT&rsquo s infrastructure assets may record lower accounting PAT or even a loss, while their cash flows remain positive and contribute to the pool of distributable income (DI) from which KIT pays out distributions.
The more relevant indicator of KIT&rsquo s performance to unitholders is therefore DI, which is derived from the cash flows generated by the trust&rsquo s underlying assets and businesses.
To help our stakeholders better understand KIT&rsquo s performance from a DI perspective, the trustee-manager regularly discloses the reconciliation of PAT to DI by segments in KIT&rsquo s financial results presentations.
For the first half of 2024, the trust reported very good operational performance as well as contributions from new acquisitions, such as Ventura and the German solar portfolio, which were completed earlier this year.
The trust&rsquo s H1 2024 DI, after adjusting for timing differences as well as one-offs, was S$117.8 million, 2.1 per cent higher year on year compared to H1 2023&rsquo s DI of S$115.4 million on the same basis, reflecting the better underlying operational performance.
Accordingly, KIT declared a higher distribution per unit (DPU) of 1.95 Singapore cents for H1 2024, an increase of 1 per cent year on year.
Keppel Infrastructure Trust reverses into the red with a loss of S$23.9 million in H1 2024
It would thus have been preferable for the article to highlight KIT&rsquo s DI and DPU, which are more meaningful indicators of KIT&rsquo s performance as a business trust.
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