Kep Infra Tr    Last:0.52    +0.01

KIT

You' ll have to buy, take the dividend and after that, run,... then when the next dividend payout date comes again, do the same. Take eg now, if you manage to buy today at 0.455, you will receive the dividend of 1.25c in 11 days' time. Then you queue to sell tomorrow at 0.455 or 0.460,... Based on the movement in the last few days or weeks, you shld be able to sell at this price from Monday onwards.
But takes some work in the above,... unlike dividend investing,... whereby not so much work is needed.

investshare      ( Date: 07-Feb-2025 06:54) Posted: Dividend yield is always good because share price keep coming down.

 

Dividend yield is always good because share price keep coming down.

 

Thanks for sharing

MrBear12      ( Date: 05-Feb-2025 13:31) Posted: take 4 cents DPU divide by 45 cents price, we have close to 9 percent Lightyear      ( Date: 05-Feb-2025 12:34) Posted: So what's the yield now ?

 

take 4 cents DPU divide by 45 cents price,
we have close to 9 percent

Lightyear      ( Date: 05-Feb-2025 12:34) Posted: So what's the yield now ?

 

So what's the yield now ?

 

That is a good point. Depreciating NAV of infrastructure trusts.
Most assets are equipment and they depreciate very fast!

MrBear12      ( Date: 04-Feb-2025 18:37) Posted: Thats the script for many Reits too. Except that the yield for this trust is on average higher than many reits. The difference between this trust and reits in general is that this trust?s NAV is heading towards zero more quickly while reits generally hold steady their NAV (unless they issue significantly more shares) investshare      ( Date: 04-Feb-2025 14:45) Posted: Take more debt, expand AUM, collect more fees proportional to AUM, while dpu increase less than 5% over 4 YEARS

 

KIT / Citysprings has delivered very constant DPU since IPO. Although its DPU increase has been very modest since 2020 (and perfectly constant DPU 2016-2020), its consistency over a decade is praiseworthy.

Stability and predictability are its characteristics due to constant cashflows.

I would recommend holding this fellow.

MrBear12      ( Date: 04-Feb-2025 18:37) Posted: Thats the script for many Reits too. Except that the yield for this trust is on average higher than many reits. The difference between this trust and reits in general is that this trust?s NAV is heading towards zero more quickly while reits generally hold steady their NAV (unless they issue significantly more shares) investshare      ( Date: 04-Feb-2025 14:45) Posted: Take more debt, expand AUM, collect more fees proportional to AUM, while dpu increase less than 5% over 4 YEARS

 

Thats the script for many Reits too.
Except that the yield for this trust is on average higher than many reits.

The difference between this trust and reits in general is that this trust?s NAV is heading towards zero more quickly while reits generally hold steady their NAV (unless they issue significantly more shares)

investshare      ( Date: 04-Feb-2025 14:45) Posted: Take more debt, expand AUM, collect more fees proportional to AUM, while dpu increase less than 5% over 4 YEARS! MrBear12      ( Date: 04-Feb-2025 09:31) Posted: No, not those expense which you mentioned. These are proportional to the AUM. The expenses I can think of that affect this trust's dpu most significantly are interest expenses which are proportional to the ave cost of debt. The cost of debt has risen to just over 4.5 percent from 4.25 previous year. This affected the distributable income somewhat, which in turn affects the dpu. Along with the enlarged capital base (8 % more units in issue), the dpu increase was thus much smaller than the ffo increas

 

Take more debt, expand AUM, collect more fees proportional to AUM, while dpu increase less than 5% over 4 YEARS!

MrBear12      ( Date: 04-Feb-2025 09:31) Posted: No, not those expense which you mentioned. These are proportional to the AUM. The expenses I can think of that affect this trust's dpu most significantly are interest expenses which are proportional to the ave cost of debt. The cost of debt has risen to just over 4.5 percent from 4.25 previous year. This affected the distributable income somewhat, which in turn affects the dpu. Along with the enlarged capital base (8 % more units in issue), the dpu increase was thus much smaller than the ffo increase prophetjul      ( Date: 04-Feb-2025 09:14) Posted: Obvious expense are " Means it is only good for the manager' s pockets. More aquisition/dispoal fees. More management fees due to higher AUM. 0 for shareholders. "

 

https://www.google.com/amp/s/www.theedgesingapore.com/amp/capital/results/excluding-ixoms-capital-optimisation-kits-dpu-rose-1-y-o-y-fy2024-total-dpu-shows

 

No, not those expense which you mentioned. These are proportional to the AUM.

The expenses I can think of that affect this trust's dpu most significantly are interest expenses which are proportional to the ave cost of debt.

The cost of debt has risen to just over 4.5 percent from 4.25 previous year. This affected the distributable income somewhat, which in turn affects the dpu.

Along with the enlarged capital base (8 % more units in issue), the dpu increase was thus much smaller than the ffo increase

prophetjul      ( Date: 04-Feb-2025 09:14) Posted: Obvious expense are " Means it is only good for the manager' s pockets. More aquisition/dispoal fees. More management fees due to higher AUM. 0 for shareholders. " MrBear12      ( Date: 04-Feb-2025 09:09) Posted: It's like that one. Dpu does not grow in tandem (or in the same proportion) with ffo for most companies simply because there are other variables that affect the dpu, such as expenses and capital structure.

 

I see kit units in issue increase from 5.626 to 6.083 billion from start to end 2024.

This 8 percent increase in kit units is the main cause of the dpu increasing only 1 percent when the ffo increase about 10 percent. The amounts available for distribution is divided up by 8 percent more units.

MrBear12      ( Date: 04-Feb-2025 09:09) Posted: It's like that one. Dpu does not grow in tandem (or in the same proportion) with ffo for most companies simply because there are other variables that affect the dpu, such as expenses and capital structure. prophetjul      ( Date: 04-Feb-2025 09:04) Posted: No one is saying that it is accretive. BUT the amount of DPU is not in TANDEM with the growth in FFO. HOW

 

Obvious expense are

" Means it is only good for the manager' s pockets. More aquisition/dispoal fees. More management fees due to higher AUM.
0 for shareholders. "

MrBear12      ( Date: 04-Feb-2025 09:09) Posted: It's like that one. Dpu does not grow in tandem (or in the same proportion) with ffo for most companies simply because there are other variables that affect the dpu, such as expenses and capital structure. prophetjul      ( Date: 04-Feb-2025 09:04) Posted: No one is saying that it is accretive. BUT the amount of DPU is not in TANDEM with the growth in FFO. HOW

 

It's like that one.
Dpu does not grow in tandem (or in the same proportion) with ffo for most companies simply because there are other variables that affect the dpu, such as expenses and capital structure.

prophetjul      ( Date: 04-Feb-2025 09:04) Posted: No one is saying that it is accretive. BUT the amount of DPU is not in TANDEM with the growth in FFO. HOW? MrBear12      ( Date: 04-Feb-2025 09:00) Posted: Dpu growth 2020 dpu 3.72 2021 dpu 3.78 2022 dpu 3.82 2023 dpu 3.86 plus 2.33 special distribution 2024 dpu 3.90 Who says no dpu growth? Who says acquisitions not yield accretive?

 

My concerns are the high level of gearing at 40.9 and low interest cover 7× cf previous year 15×

Ave weighted Cost of debt had risen to 4.51%.

How much longer can this sustain increasing debt burden?

MrBear12      ( Date: 04-Feb-2025 09:00) Posted: Dpu growth 2020 dpu 3.72 2021 dpu 3.78 2022 dpu 3.82 2023 dpu 3.86 plus 2.33 special distribution 2024 dpu 3.90 Who says no dpu growth? Who says acquisitions not yield accretive?

 

No one is saying that it is accretive.
BUT the amount of DPU is not in TANDEM with the growth in FFO. HOW?

MrBear12      ( Date: 04-Feb-2025 09:00) Posted: Dpu growth 2020 dpu 3.72 2021 dpu 3.78 2022 dpu 3.82 2023 dpu 3.86 plus 2.33 special distribution 2024 dpu 3.90 Who says no dpu growth? Who says acquisitions not yield accretive?

 

Dpu growth
2020 dpu 3.72
2021 dpu 3.78
2022 dpu 3.82
2023 dpu 3.86 plus 2.33 special distribution
2024 dpu 3.90

Who says no dpu growth?
Who says acquisitions not yield accretive?

 

Means it is only good for the manager' s pockets. More aquisition/dispoal fees. More management fees due to higher AUM.
0 for shareholders.   

investshare      ( Date: 04-Feb-2025 08:46) Posted: After all the yield accretive stories, AUM increase management increase, but dpu no increase, haha. prophetjul      ( Date: 04-Feb-2025 08:41) Posted: All these growth figures are only nice when the DPU grows in step. 1% increase in DPU when the FFO achieved 10% does not give good vibes

 

After all the yield accretive stories, AUM increase management increase, but dpu no increase, haha.

prophetjul      ( Date: 04-Feb-2025 08:41) Posted: All these growth figures are only nice when the DPU grows in step. 1% increase in DPU when the FFO achieved 10% does not give good vibes! SDEXXXXD      ( Date: 04-Feb-2025 08:22) Posted: KIT achieves strong FFO growth of 10.3% YoY to $282.0m, delivers FY 2024 DPU of 3.90 cents Results Highlights KIT achieves strong FFO growth of 10.3% YoY to $282.0 million, driven by new acquisitions and steady portfolio performance DPU for FY 2024 of 3.90 cents represents 1% YoY growth over FY 2023 DPU of 3.86 cents (excluding the special distribution) Expansion of KIT&rsquo s portfolio across its core business segments with three acquisitions in FY 2024, growing AUM to $9.0 billion as at 31 December 2024 Record EBITDA achieved at Ixom1 , City Energy and Philippine Coastal, backed by the Trustee-Manager&rsquo s portfolio management capabilities to drive value creation Financial Performance Keppel Infrastructure Trust (KIT) delivered a strong set of results for the year, with Funds from Operations (FFO) for FY 2024 recording solid growth of 10.3% YoY to $282.0 million. Distributable Income (DI) for FY 2024 was $203.7 million, supported by steady portfolio performance, the resumption of contribution from Keppel Merlimau Cogen Plant (KMC), as well as contributions from newly acquired German Solar Portfolio and Ventura completed during the year. Factoring timing differences as well as one-offs to better reflect underlying performance, FY 2024 adjusted DI would be $218.7 million2 , 4.3% higher against FY 2023 adjusted DI of $209.7 million3 . Distribution per Unit (DPU) for FY 2024 is 3.90 cents, representing 1.0% YoY growth over FY 2023 DPU of 3.86 cents, excluding the special distribution of 2.33 cents paid in FY 2023.

 

All these growth figures are only nice when the DPU grows in step.
1% increase in DPU when the FFO achieved 10% does not give good vibes!

SDEXXXXD      ( Date: 04-Feb-2025 08:22) Posted: KIT achieves strong FFO growth of 10.3% YoY to $282.0m, delivers FY 2024 DPU of 3.90 cents Results Highlights KIT achieves strong FFO growth of 10.3% YoY to $282.0 million, driven by new acquisitions and steady portfolio performance DPU for FY 2024 of 3.90 cents represents 1% YoY growth over FY 2023 DPU of 3.86 cents (excluding the special distribution) Expansion of KIT&rsquo s portfolio across its core business segments with three acquisitions in FY 2024, growing AUM to $9.0 billion as at 31 December 2024 Record EBITDA achieved at Ixom1 , City Energy and Philippine Coastal, backed by the Trustee-Manager&rsquo s portfolio management capabilities to drive value creation Financial Performance Keppel Infrastructure Trust (KIT) delivered a strong set of results for the year, with Funds from Operations (FFO) for FY 2024 recording solid growth of 10.3% YoY to $282.0 million. Distributable Income (DI) for FY 2024 was $203.7 million, supported by steady portfolio performance, the resumption of contribution from Keppel Merlimau Cogen Plant (KMC), as well as contributions from newly acquired German Solar Portfolio and Ventura completed during the year. Factoring timing differences as well as one-offs to better reflect underlying performance, FY 2024 adjusted DI would be $218.7 million2 , 4.3% higher against FY 2023 adjusted DI of $209.7 million3 . Distribution per Unit (DPU) for FY 2024 is 3.90 cents, representing 1.0% YoY growth over FY 2023 DPU of 3.86 cents, excluding the special distribution of 2.33 cents paid in FY 2023.