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There is a lagging effect of the rate hikes, usually 6 to 9 mths. So Fed started aggressively hiking rate 3 mths ago, so the impact will only be felt beginning next year, thats why everyone saying next year we would have recession. So prices aka inflation will start dropping early next year. BUT if FED continues to hike rate massively without waiting for the previously rate hikes to take effect, then they will overdo it and cause depression.
FED always overdo or not doing enough. They overdo the QE during Covid and when inflation started they say is transitionary and did not increase rate fast enough, Lousy FED
FED always overdo or not doing enough. They overdo the QE during Covid and when inflation started they say is transitionary and did not increase rate fast enough, Lousy FED
tth1311 ( Date: 23-Oct-2022 11:53) Posted:
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Yes, there were mixed signals in the past 2/3 days. Some voting officials are hawk and some turned dovish. Notably San Fransico' s Mary Daly mentioned on Friday that Fed should start to think taking smaller incremental step, i.e., 50 basis point vs 75 basis point. However, overall I think Fed is still hawkish.
tth1311 ( Date: 23-Oct-2022 11:53) Posted:
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FED is hinting for lower interest rate for the coming increase
I have some reits including KIT. For now, I will not be eyeing any individual reits as I reckon the bashing is far from over yet. The Fed is slated to raise rate till about 5% or even 5.5% by early 2023 and I foresee another 10% drop in reit market even though the DPUs for the various reits won' t drop so much. However, I will be keeping my eyes on reits ETFs. Already, I have zero in on one candidate and once it hit my target price, I am going to buy in. Based on my calculation, it will return at least 6.25% if I get in at my target price and the DPUs maintain/back to current level.
Some pts that I noted, besides the 3QFY2022 increase in Distributable Income on a y-o-y basis and EBITDA increase on a 9-mth basis,......
1) there is no more mention of an EFR coming soon.
2) loans hedged at 90% of floating debts.
3) with 90% hedged, a 100 bps change in interest rate would have an approx. 1% impact to 9M 2022&rsquo s Distributable Income
4) effects of higher interest rates will start kicking-in this year, with the usage of Medium term Notes (MTNs) to finance an Ixom facility (106mil SGD).
5) next year, another effect will kick-in with another usage of MTNs to finance KMC (88mil SGD). Dpu payouts might start to drop ?
Don' t know abt others,... but above pts are crucial for me to know,...
1) there is no more mention of an EFR coming soon.
2) loans hedged at 90% of floating debts.
3) with 90% hedged, a 100 bps change in interest rate would have an approx. 1% impact to 9M 2022&rsquo s Distributable Income
4) effects of higher interest rates will start kicking-in this year, with the usage of Medium term Notes (MTNs) to finance an Ixom facility (106mil SGD).
5) next year, another effect will kick-in with another usage of MTNs to finance KMC (88mil SGD). Dpu payouts might start to drop ?
Don' t know abt others,... but above pts are crucial for me to know,...
Keppel Infrastructure Trust reports higher Q3 2022 distributable income
KEPPEL Infrastructure Trust (KIT : A7RU 0%) reported a 12.1 per cent increase in Q3 2022 distributable income to S$50.1 million from S$44.7 million in Q3 2021.
The increase was in tandem with a 15.4 per cent growth in operational cash flows from S$56.8 million in Q3 2021 to S$65.5 million in Q3 2022. Expenses also rose 27.5 per cent from S$12.1 million in Q3 2021 to S$15.4 million in Q3 2022.
The growth in operational cash flows was driven by all three business segments. The energy transition segment&rsquo s contribution of S$28.5 million was driven mainly by the first distribution from Aramco Gas Pipeline Company, but offset by a 7.8 per cent dip in Keppel Merlimau Cogen&rsquo s contribution.
Environmental services saw a 3.8 per cent increase to S$18.5 million due to the contractual economic benefits from the acquisition of the remaining 30 per cent of SingSpring Desalination Plant. Distribution and storage also saw a 3.9 per cent jump to S$18.5 million mainly driven by Ixom&rsquo s contributions, which was partially offset by losses incurred at Philippine Coastal.
KIT expects assets under management to increase to S$6.1 billion after completion of new acquisitions in Q4 2022. The trust is jointly investing with other Keppel companies to acquire Eco Management Korea, a waste management player in South Korea. KIT will hold a 52 per cent interest post acquisition for a consideration of about S$346.4 million.
Another acquisition on the horizon is to acquire a 50 per cent stake in Keppel Marina East Desalination Plant with an enterprise value of S$355 million. Definitive agreements are expected to be signed in Q4 2022, subject to approvals from authorities.
Keppel Infrastructure Trust targets trebling of portfolio to S$18b over next decade
With Basslink burden offloaded, the infra-focussed business trust looks to Keppel ecosystem for opportunities in renewable energy, logistics
KEPPEL Infrastructure Trust (KIT) has expanded its portfolio under the watch of Jopy Chiang, who assumed the role of chief executive at KIT&rsquo s trustee-manager just over a year ago.
The trust has secured interests in a pipeline of wind assets in Europe, on top of venturing into Saudi Arabia and South Korea &ndash broadening its reach outside its existing markets of Singapore, Australia, New Zealand, and the Philippines.
It is also reshaping its strategy to ensure it can take advantage of new opportunities. In April, the trust reorganised its portfolio into three key business segments: energy transition, environmental services, and distribution and storage.
&ldquo KIT is transforming as a portfolio,&rdquo said Chiang, who came to KIT from Keppel Capital. &ldquo We see a lot of strong momentum and opportunity in the decarbonisation megatrend globally&hellip There was a repositioning of the trust to capitalise on a lot of the opportunities, and also to continue to grow on a new foundational footing.&rdquo
In July, KIT marked its first move into the renewable energy sector and maiden acquisition in Europe with a proposal to invest in wind farms alongside Keppel Corporation. The two companies have formed a joint venture to invest 160 million euros (S$226 million) in Wind Fund I. The latter will, in turn, co-invest in a diversified portfolio of wind projects across Norway, Sweden and the United Kingdom. KIT&rsquo s investment will come to 131.2 million euros.
This was followed, in August, by another joint investment to take a stake in a German offshore wind farm. KIT will pay 250.1 million euros for an effective stake of 20.5 per cent in the project.
Also in August, KIT announced its participation in a Keppel consortium to buy South Korean waste management company Eco Management Korea Holdings. The consideration for the deal is estimated at 626.1 billion won (S$666.1 million), of which KIT&rsquo s share is 325.6 billion won.
With these three deals, Chiang said KIT&rsquo s assets under management (AUM) would rise 36 per cent to S$6.1 billion. He aims to grow the trust&rsquo s portfolio to S$18 billion within the next decade. Renewable energy investments are expected to make up 25 per cent of its &ldquo equity-adjusted AUM&rdquo , up from the current 10 per cent.
Keeping house
Chiang&rsquo s appointment has coincided with KIT&rsquo s first increase in its full year distribution per unit (DPU) since FY2016. For FY2021, KIT paid out S$0.0378 per unit &ndash up from S$0.0372 in FY2020.
The trust also reported a 2.7 per cent year-on-year increase in its DPU for the first half of FY2022, despite a lower distributable income. This was due to &ldquo higher finance costs related to the issuance of new capital in the form of debt securities&rdquo , Chiang said.
He added that KIT is &ldquo quite comfortable&rdquo maintaining its growth in distributions, pointing to a US$250 million investment in Aramco Gas Pipelines Company this February that will contribute to income over the course of this year.
It has taken Chiang a &ldquo fair bit&rdquo of housekeeping to get here. In particular, KIT put its embattled Australian subsea cable subsidiary Basslink under voluntary administration in November 2021.
What lessons have been learned? &ldquo With infrastructure, you cannot ignore the regulatory and political risks for investee companies,&rdquo he said. &ldquo It behoves us as a manager to have boots on the ground, to have really strong oversight of our portfolio companies.&rdquo
The move has also freed up management bandwidth to focus on growing KIT&rsquo s portfolio by leveraging the Keppel ecosystem, which Chiang said gives the trust an ability to secure investments in &ldquo very attractive areas&rdquo and invest alongside players that are &ldquo multiple times larger&rdquo .
As an example, Chiang points to the commercial ties that led to KIT&rsquo s investment in Wind Fund I. The fund will invest in projects sponsored by Norwegian power producer Fred. Olsen Renewables - a customer of Keppel&rsquo s offshore and marine arm.
KIT also intends to acquire from its sponsor Keppel Infrastructure Holdings a 50 per cent stake in the Keppel Marina East Desalination Plant.
&ldquo With all these recent acquisitions, we&rsquo ve demonstrated that we&rsquo re working with different pockets of capital that is, we&rsquo re working either with the parent company Keppel Corp, or we&rsquo re working with another pool of capital within Keppel Capital.&rdquo
Rising yield
In spite of Chiang&rsquo s efforts, however, units of KIT have fallen 1.8 per cent over the past year. They closed at S$0.54 on Friday (Sep 30), giving the trust a historical yield (based on the FY22 DPU) of 7 per cent.
KIT&rsquo s high yield makes it challenging to acquire new assets that are both DPU- and yield-accretive.
Chiang, however, said KIT has shown &ldquo rigour and discipline in really sieving out and identifying the best returning investments that fit within the portfolio&rdquo , and added that the trust has &ldquo raised about a billion of dry powder in a low interest rate environment, at a cost of about 3 to 4.75 per cent&rdquo .
KIT issued S$300 million in perpetual securities in June 2021, and S$250 million in notes due 2027 this May. As at Jun 30, the trust had a gearing ratio of 31.1 per cent.
Chiang is optimistic of growing KIT&rsquo s asset base in new sectors amid the challenging macro environment.
The digital infrastructure space, for one, is an &ldquo exciting sector that will benefit from the theme of decentralised energy management&rdquo , he said. The trust is currently looking at a smart metering opportunity in Australia and New Zealand.
&ldquo We will very carefully navigate and tread in the many months to come,&rdquo Chiang added. &ldquo But we see very compelling buying opportunities in this mix of uncertainty, and that&rsquo s where we would like to focus our investment activities.&rdquo
Always amazed by confident ignorant ppl.
The issue price at which the New Units will be offered and issued pursuant to the Equity Fund Raising will be determined closer to the date of the launch of the Equity Fund Raising, and will comply with Rules 811(1)7 and 811(5)8 and, as the case may be, Rule 816(2)9 of the Listing Manual. In the event the Equity Fund Raising comprises the Placement and the Preferential Offering, New Units may be offered at different issue prices under the Placement and the Preferential Offering
The issue price at which the New Units will be offered and issued pursuant to the Equity Fund Raising will be determined closer to the date of the launch of the Equity Fund Raising, and will comply with Rules 811(1)7 and 811(5)8 and, as the case may be, Rule 816(2)9 of the Listing Manual. In the event the Equity Fund Raising comprises the Placement and the Preferential Offering, New Units may be offered at different issue prices under the Placement and the Preferential Offering
Recently they entered in alot of JVs, or enter in new biz,
Like waste maangement in korea, and europe some projects, so earlier the comment thinks it will rights issue and dilute ?
Think some better call the Investors Relations team ask lol
Like waste maangement in korea, and europe some projects, so earlier the comment thinks it will rights issue and dilute ?
Think some better call the Investors Relations team ask lol
investshare ( Date: 29-Sep-2022 12:09) Posted:
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To buy wind farm?
actan99 ( Date: 29-Sep-2022 11:49) Posted:
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Run.....if like SATs fate.....another 20% off the current price.....
actan99 ( Date: 29-Sep-2022 11:49) Posted:
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why got rights issue meh ?
investshare ( Date: 14-Sep-2022 19:55) Posted:
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Got rights issue?
investshare ( Date: 14-Sep-2022 19:55) Posted:
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When is the right issue?
Keppel consortium acquires 80% stake in 800 Super Holdings for S$304m
KEPPEL Asia Infrastructure Fund (KAIF) and Keppel Infrastructure Holdings (KI) are jointly acquiring an 80 per cent interest in Singaporean environmental services company 800 Super Holdings (800 Super) for S$304 million.
The deal values 800 Super at S$380 million, with KAIF and KI holding a 48 and 32 per cent interest respectively post-purchase, said Keppel Corporation : BN4 -0.28%, the parent company of Keppel Capital, under which KAIF comes, and KI, in a bourse filing on Wednesday (Aug 24) evening. The co-founder of 800 Super, William Lee, will hold the remaining 20 per cent stake and continue to be the company&rsquo s chief executive officer.
Founded in 1986, 800 Super is an environmental solutions provider and has 4 main operating segments &ndash waste management, waste treatment, integrated public cleaning and other environmental services. It is 1 of 3 licensed public-waste collectors in Singapore, providing municipal waste collection services, as well as waste removal and recycling services for commercial and industrial customers.
800 Super owns and operates an integrated waste-treatment plant in Tuas, a biomass co-generation plant and Singapore&rsquo s largest biomass fuel-preparation facility. It was delisted from the Singapore Exchange&rsquo s Catalist board in August 2019.
Keppel&rsquo s statement said the consortium believes 800 Super is well-positioned to realise its market potential by unlocking the latent capacity in its waste-treatment segment to meet increasing demand in the sector. The transaction is also in line with Keppel&rsquo s Vision 2030, which places sustainability at its heart. The transaction is not expected to have a material impact on the net tangible assets per share or earnings per share of Keppel for the current financial year.
&lsquo Stronger growth pipeline&rsquo for KIT, Basslink troubles behind it: DBS
DBS Group Research&rsquo s Suvro Sakar has maintained his &ldquo buy&rdquo call and raised his target price on Keppel Infrastructure Trust (KIT) from 60 cents to 63 cents.
Sarkar notes that KIT has completed or announced a significant line-up of deals so far in 2022, which, in his view &ldquo should be DPU accretive unlike in the past.&rdquo
He points at projects that include entry into the renewable energy space as well, which should boost KIT&rsquo s environmental, social and governance (ESG) credentials.
Source:
https://www.theedgesingapore.com/capital/brokers-calls/stronger-growth-pipeline-kit-basslink-troubles-behind-it-dbs
Overall market is facing downward pressure these few days. Usually reits that worth their salt dare not take on any deal that is dilutive in nature for DPU [NAV maybe], plus they made such a gong about how much they have done that justified their increase in management fee, so I am cautiously optimistic.
moonsun ( Date: 23-Aug-2022 15:21) Posted:
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Likely Share dilution ? drifting down? dyodd
HVRRVH ( Date: 12-Aug-2022 14:57) Posted:
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DPU on track and payment in today. Based on this morning SGX announcement, it seems there is a preferential offer coming up! So far it is indicated as DPU accretive but issue price will only be known nearer to the launch of private placement and PO. This is to fund acquistion of a German windfarm asset. Nice.
HVRRVH ( Date: 19-Apr-2022 16:10) Posted:
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Keppel Infrastructure Trust recorded 2.7% YoY growth in DPU to 1.91 cents for 1H 2022
Results Highlights
▪ DPU growth supported by higher Group EBITDA, which increased by 10.2% year-on-year (YoY) to $172.6 million 1 in 1H 2022
▪ Making headway into the renewable energy market with the proposed investment in an onshore wind energy portfolio across the Nordics and the United Kingdom, marking KIT&rsquo s first investments in Europe
▪ Completed the acquisition of the remaining 30% stake in the SingSpring Desalination Plant and signed non-binding term sheet to acquire 50% interest in the Keppel Marina East Desalination Plant
▪ Diversified funding with the issuance of $250 million notes in May 2022 as part of the $2 billion Multicurrency Debt Issuance Programme
▪ Portfolio well-positioned against inflation and higher energy prices due to cost pass through mechanism and availability-based revenue model .....
https://links.sgx.com/1.0.0/corporate-announcements/HRYTYRJOV9K0Y8W0/724850_1.%20KIT%201H%20FY2022%20-%20Financial%20Highlights%20and%20Unaudited%20Results_MREL.pdf
Results Highlights
▪ DPU growth supported by higher Group EBITDA, which increased by 10.2% year-on-year (YoY) to $172.6 million 1 in 1H 2022
▪ Making headway into the renewable energy market with the proposed investment in an onshore wind energy portfolio across the Nordics and the United Kingdom, marking KIT&rsquo s first investments in Europe
▪ Completed the acquisition of the remaining 30% stake in the SingSpring Desalination Plant and signed non-binding term sheet to acquire 50% interest in the Keppel Marina East Desalination Plant
▪ Diversified funding with the issuance of $250 million notes in May 2022 as part of the $2 billion Multicurrency Debt Issuance Programme
▪ Portfolio well-positioned against inflation and higher energy prices due to cost pass through mechanism and availability-based revenue model .....
https://links.sgx.com/1.0.0/corporate-announcements/HRYTYRJOV9K0Y8W0/724850_1.%20KIT%201H%20FY2022%20-%20Financial%20Highlights%20and%20Unaudited%20Results_MREL.pdf