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701-720 of 741
At 58 cents, the sustainable yield is a nice 6.6%. If this trust is not mismanaged it is an excellent cornerstone in an investment portfolio.
Disclaimer : Vested. Pls DYODD. Not a recommendation for action
Disclaimer : Vested. Pls DYODD. Not a recommendation for action
Good
Keppel unit obtains grant to pilot membrane-based solar system at Jurong Island
THE Energy Market Authority (EMA) and JTC have awarded Keppel Infrastructure&rsquo s wholly-owned subsidiary a grant to pilot a new membrane-based nearshore floating solar photovoltaic (PV) system on Jurong Island.
The membrane-based system is able to withstand stronger waves and rougher sea conditions than conventional floating PV systems &ndash which are typically placed in calmer water bodies like reservoirs, Keppel Corp said in a press statement on Friday (Jul 15).
The pilot PV system comprises 3 circular platforms which will have an installed capacity of 1.5 megawatt-peak when deployed in seawater surrounding Jurong Island.
The circular-reinforced membranes for the solar panels also mean the material usage of any floating PV system is low, resulting in a lower levelised cost of energy and resource conservation.
The award is part of EMA and JTC&rsquo s request for proposals to accelerate the development of clean energy innovations for implementation on the island. The projects will be funded by a S$6 million joint commitment from both EMA and JTC, with support from Enterprise Singapore.
Keppel expects the PV system to be ready in the fourth quarter of 2023. The group does not expect the transaction to have any material impact on its earnings per share and net tangible asset per share for the current financial year.
Keppel Infrastructure Trust consortium in last lap to buy South Korean waste management firm
A KEPPEL consortium comprising Singapore-listed Keppel Infrastructure Trust : A7RU +1.77%, Keppel Infrastructure Holdings and Keppel Asia Infrastructure Fund has been selected as the preferred bidder to acquire a major integrated waste management player in South Korea.
Keppel Infrastructure Fund Management, the trustee-manager of Keppel Infrastructure Trust, said in a regulatory filing on Wednesday (Jul 13) that the group, as the preferred bidder, will enter into negotiations to finalise the sale-and-purchase agreement for the entire stake in Eco Management Korea Holdings.
Eco Management Korea Holdings provides nation-wide waste management services in the North Asian nation.
There is no certainty or assurance that the transaction will materialise or be concluded, Keppel Infrastructure Fund Management said, without elaborating on the acquisition price.
Keppel Infrastructure Trust units at market close were trading 1.77 per cent higher at S$0.575 on Wednesday, before this announcement was made.
No news on how KIT is going to pay for this purchase...
Joelton ( Date: 01-Jul-2022 09:15) Posted:
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KIT inks term sheet with sponsor for 50% stake in owner of Marina East desalination plant
KEPPEL Infrastructure Trust : A7RU 0% (KIT) has entered a non-binding term sheet to purchase from its sponsor a 50-per-cent stake in Marina East Water (MEW), which owns the Keppel Marina East Desalination Plant (KMEDP), for an enterprise value of about S$355 million.
Post-transaction, KIT and its sponsor, Keppel Infrastructure Holdings, will each hold a 50 per cent joint-controlling stake in MEW, the trust said in a Thursday (Jun 30) bourse filing after trading hours. KIT will receive all of the economic interest from MEW.
KMEDP is Singapore&rsquo s fourth desalination plant, and the first and only large-scale, dual-mode plant, which can treat seawater or rainwater drawn from the Marina Reservoir. It can produce 137,000 cubic metres of fresh drinking water per day.
The plant began commercial operations on Jun 29, 2020 and has a 25-year concession, from 2020 to 2045, under a Design, Build, Own and Operate arrangement with the Public Utilities Board (PUB).
Jopy Chiang, chief executive of KIT&rsquo s trustee-manager, said that the strategic addition of KMEDP to the portfolio is expected to support the unitholders&rsquo overall distributable income per unit.
He said: &ldquo KMEDP is a stellar asset from our sponsor that will add to KIT&rsquo s green credentials, reinforcing our commitment to invest in high-quality and energy-efficient assets. Besides being one of the key assets contributing to Singapore&rsquo s water resilience, KMEDP has a long-term contract with a strong counterparty, which will improve KIT&rsquo s cash flow visibility.&rdquo
KMEDP will continue to be operated and maintained by Marina East Water O& M, a wholly-owned subsidiary of Keppel Infrastructure, until 2045. This will enable MEW to benefit from Keppel Infrastructure&rsquo s operating capabilities, while contributing to Keppel Infrastructure&rsquo s long-term recurring income from the operating and maintenance fees, the filing said.
Cindy Lim, chief executive of Keppel Infrastructure, said that the proposed deal is part of Keppel : BN4 -0.46%&rsquo s asset monetisation strategy and asset-light business model under its &ldquo Vision 2030&rdquo plan.
&ldquo Through unlocking value from KMEDP, the group will be able to redeploy capital towards other growth initiatives, such as renewables and environmental infrastructure, as well as low carbon and decarbonisation solutions in line with Vision 2030,&rdquo she said.
Keppel Infra Trust, Jinko Power tie up to explore solar farm, energy storage investments
KEPPEL Infrastructure Trust : A7RU +0.88%&rsquo s (KIT) trustee-manager on Monday (Jun 13) said that it has tied up with Jinko Power (HK) Company to explore investment opportunities in energy storage and solar farms.
Jinko Power (HK) Company is the international investment platform of Shanghai-listed Jinko Power Technology, a renewable energy supplier and service provider.
Both parties have inked a non-binding memorandum of understanding (MOU). Under its terms, Jinko will identify up to 1,000 megawatt of solar farm and energy storage projects from its pipeline of assets which KIT can potentially invest in.
Each of these assets will be in jurisdictions that meet KIT&rsquo s investment criteria, in key developed markets of Asia-Pacific, Europe and the Middle East, the trustee-manager said in a press statement.
KIT and Jinko will potentially enter into separate investment agreements to acquire and hold the respective assets through special purpose vehicles.
Jopy Chiang, chief executive of the trustee-manager, said KIT intends to increase its exposure to renewable energy by up to 25 per cent of KIT&rsquo s equity-adjusted assets under management by 2030.
The trustee-manager does not expect the MOU to have any material financial impact on KIT&rsquo s distribution per unit for the financial year ending Dec 31, 2022.
Keppel Infrastructure Trust signs MOU with Shanghai-listed Jinko Power
https://www.theedgesingapore.com/news/contracts/keppel-infrastructure-trust-signs-mou-shanghai-listed-jinko-power
Still resilent among the sea of reds nowadays,
Hope it continues this way.
Hope it continues this way.
Thanks for sharing. DPU estimated to increase to 3.81 cents this FY and 3.84 and 3.86 in FY2023 and FY2024 respectively. I am not sure whether this is achievable given the vast increase in the management fee. It seems that the increase in the latest dpu is also a pre-empteive move to justify the increase in the planned management fee. I am evaluating my position in the Trust now. If the price didn' t drop too much I may sit and observe.
actan99 ( Date: 19-Apr-2022 13:29) Posted:
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Recently just randomly read some news, found this article,
https://secure.fundsupermart.com/fsm/article/view/rcms252980/keppel-infrastructure-trust-more-dividend-growth-ahead-for-this-7-yielding-stock
https://secure.fundsupermart.com/fsm/article/view/rcms252980/keppel-infrastructure-trust-more-dividend-growth-ahead-for-this-7-yielding-stock
hi, sorry if i have created panic. that is not my intention. i just point out in my opinion that energy being a major input to their operation it will be uphill task to grow profit for the moment.
the share price well supported by some invisible hand one.
the share price well supported by some invisible hand one.
nott1965 ( Date: 18-Apr-2022 19:40) Posted:
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Keppel Infrastructure Trust posts 21% decline in Q1 distributable income
THE trustee-manager of Keppel Infrastructure Trust (KIT) : A7RU 0% on Monday (Apr 18) reported a 21.1 per cent decline in distributable income for the first quarter ended Mar 31, 2022 at S$44.7 million, from S$56.6 million a year earlier.
This was due to a decline in distributable income contributed by Ixom within its distribution and storage segment by 20.7 per cent to S$19.4 million. The company provides specialised source water, water and waste water treatment solutions to supply clean water. It also supplies key water treatment chemicals, industrial and specialty chemicals.
The trustee-manager noted that Ixom expanded its product offerings with the acquisition of Bituminous Products and divested its Fiji business to focus on its core capabilities.
Expenses and distribution paid or payable to perpetual securities holders, management fees and financing costs also increased 54.6 per cent to S$15.3 million.
This was despite a 5.5 per cent increase in earnings before interest, taxes, depreciation and amortisation (Ebitda) to S$89.6 million, from S$84.9 million a year ago.
As at Mar 31, 2022, the trust&rsquo s net gearing rose to 32.6 per cent from 20.3 per cent as at Dec 31, 2021, while net debt rose to 4.1 times that of Ebitda from 2.9 times.
KIT&rsquo s units closed flat at S$0.57 on Monday before the business update was made.
KIT unitholders will also vote on a proposal to revise its fee structure at an extraordinary general meeting (EGM) scheduled for Tuesday. The trustee-manager had proposed on Mar 28 the adoption of new base fee and performance fee structures pegged to distributable income and distribution per unit (DPU) growth respectively.
don t anyhow create panic la. those who didnt read properly will fall into your trap. fall ' due mainly to timing differences in Ixom&rsquo s actual tax paid'
pasttime ( Date: 18-Apr-2022 19:13) Posted:
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dpu increased? dream on. the quarterly distributable income just drop from q1 2021 $56.614m to q1 2022 $44.675m. a drop of 21.1%. think it will continue as energy prices has been high and is likely to continue up trajectory.
think the same type of story is going to hit business that has significant energy cost.
think the same type of story is going to hit business that has significant energy cost.
Pirce hit 4 years high with the news that management is going to charger higher fee. Ridiculous as all else being equal, the dpu is going to drop. In the publicly released information so far, there was a mention on strategic review and how the headcount has been increasing since the trust was listed. To me this don' t justify the increae in the managment fee, the only way to justfy the increase is the increase in dpu. To be fair, the new proposed fee structure will aligne any increase in future fee to the increase of dpu. Nevertheless, personal i feel that there is an invisible hand trying to make the case for the fee hike by supporting the unit price.
So after management fee adjustment, share price likely to go up or down ?
Also collecting fat dividends still part of the strategy ?
There must be other ' softer' ways to incentivise management besides what has been tabled.
Create a win-win situation.
After all, shareholders have supported KIT' s management in the past 2 years.
Many shareholders invest in KIT precisely because of its current conservative, and yet shareholder-friendly fee structure.
Shareholders would be less inclined to invest in those S-Reits which have the proposed fee structure cited by its IFA , isn' t it?
Adopting the new fee structure changes the investment thesis entirely despite what its IFA opined.
Create a win-win situation.
After all, shareholders have supported KIT' s management in the past 2 years.
Many shareholders invest in KIT precisely because of its current conservative, and yet shareholder-friendly fee structure.
Shareholders would be less inclined to invest in those S-Reits which have the proposed fee structure cited by its IFA , isn' t it?
Adopting the new fee structure changes the investment thesis entirely despite what its IFA opined.
Hi all,
So are you guys voting in favor or against the management fee adjustment?
So are you guys voting in favor or against the management fee adjustment?
Keppel Infrastructure Trust should get its DPU on strong upward trajectory before revising fees
Based on calculations provided in the circular, the new fee structure may be viewed as less about aligning interests than about the trustee-manager lining its pockets
UNITHOLDERS of Keppel Infrastructure Trust (KIT) will vote on a proposal to revise its fee structure at an extraordinary general meeting (EGM) scheduled for Apr 19.
During the coming fortnight, they are likely to hear a lot about why this fee structure revision is not only justified but in their own interests. Indeed, an " information session" facilitated by the Securities Investors Association (Singapore) is to be held this week - on Wednesday (Apr 6).
Unitholders of KIT should ask some hard questions about why the proposed fee structure revision is warranted at this particular moment.
KIT' s distribution per unit (DPU) has barely budged over the last 5 years. Moreover, the trustee-manager' s recently unveiled " refreshed" growth strategy may not deliver immediate results.
KIT' s trustee-manager should lean on the resources of Keppel Corp to reposition the trust' s portfolio and ensure it delivers higher returns before demanding higher fees.
Under the proposed fee structure, KIT will pay its trustee-manager a base fee of 10 per cent of its yearly distributable income and a performance fee of 25 per cent of any increase in its DPU multiplied by the weighted number of units in issue.
This is quite different from its existing fee structure. KIT currently pays its trustee-manager a yearly base fee of S$2 million (adjusted for inflation since 2010) and a performance fee of 4.5 per cent of the trust' s total cash inflows.
KIT' s trustee-manager said in a circular dated Mar 28 that the existing fee structure has been in place since the trust was listed in 2010. Known as K-Green Trust at the time, it had just 7 employees and only S$760 million in assets under management (AUM).
KIT - which merged with City-Spring Infrastructure Trust in 2015 - is now a much larger entity. As at Dec 31, the trust had some S$4.5 billion in AUM and 22 employees.
Following a strategic review last year, KIT' s trustee-manager is also now pursuing a strategy that will see it focus on " evergreen" assets that provide utility-like contracted cash flows assets that benefit from the decarbonising economy assets that support the digital economy and socio-economic infrastructure that supports economic growth and enhances social well-being.
KIT' s trustee-manager said in the circular that the new fee structure - being tagged to distributable income and increases in DPU - is more aligned with its objective of long-term value creation and serving the interests of unitholders.
The trustee-manager added that the new fee structure will enable it to deepen and expand its talent pool, and hunt for suitable assets to optimise and expand KIT' s portfolio.
Significantly higher fees
The new fee structure, however, will result in KIT paying significantly higher fees in absolute terms to its trustee-manager.
Excluding acquisition and disposal fees (which are to remain unchanged under the proposed fee structure), KIT paid its trustee-manager fees totalling S$11.9 million for FY2020 and S$11.8 million for FY2021.
If the proposed fee structure had been applied, KIT would have paid its trustee-manager fees totalling S$23.7 million for FY2020 and S$21.2 million for FY2021 - that is, 99.2 per cent and 79.7 per cent more than it actually paid.
This would have reduced KIT' s FY2020 free cash flow to equity (which is its definition of distributable income) by 5.2 per cent, from S$225.7 million to S$213.9 million. The trust' s FY2020 DPU would have been 6.5 per cent lower, at S$0.0348 instead of S$0.0372.
KIT' s free cash flow to equity for FY2021 would have been similarly reduced by 4.9 per cent, from S$192.2 million to S$182.8 million. Its FY2021 DPU would have been 4.8 per cent lower, at S$0.036 instead of S$0.0378.
These calculations, which can be found in the circular, might have some investors feeling that the new fee structure is less about the trustee-manager aligning its interests with those of unitholders than it is about the trustee-manager simply lining its own pockets.
It is worth pointing out that even though KIT' s funds from operations and free cash flow to equity have increased 37.8 per cent and 28.6 per cent respectively over the last 5 years, its DPU has been relatively stagnant.
KIT reported an annual DPU of S$0.0372 for FY2016 to FY2020. For FY2021, its DPU rose 1.6 per cent to S$0.0378.
Integral part of Keppel
To be fair, the independent financial adviser (IFA) tasked with evaluating the proposed revision in the fee structure found that the revised fees KIT might soon have to pay its trustee-manager - compared to its revenue, market capitalisation and AUM - are not all that different from other locally-listed business trusts and real estate investment trusts (Reits).
The IFA also found that the proposed structure of KIT' s base fee and performance fee is identical to several local Reits.
Yet, for business trusts and Reits that are affiliated to large corporate groups, fee structures are probably of secondary importance in regulating the behaviour of managers.
Property developers like CapitaLand and Mapletree are widely seen to have an overarching interest in ensuring their Reits garner strong investor interest and function as effective asset securitisation vehicles - regardless of the Reits' fee structures.
KIT is clearly an integral part of the Keppel group - which bills itself as an ecosystem of companies working together to meet the growing need for energy, infrastructure, clean environments and connectivity.
For instance, the trust' s 1,300MW combined cycle Keppel Merlimau Cogen Plant (KMC) located on Jurong Island earns steady " capacity payments" from the Keppel group.
Separately, back in 2019, KIT divested a 51 per cent stake in the 1-Net North Data Centre to Keppel DC Reit for S$102.9 million.
It seems unlikely that KIT' s trustee-manager - which is owned by the Keppel group - would be any less motivated to continue enhancing the value of KIT' s portfolio in the absence of a fee structure revision.
KIT' s trustee-manager certainly hasn' t been idle recently. KIT in February invested in Aramco Gas Pipelines Company, which holds a 20-year lease and leaseback agreement over the usage rights of Aramco' s gas pipelines network.
KIT' s trustee-manager also announced plans last month to unlock value from the trust' s 100 per cent stake in water treatment chemicals supplier Ixom Holdings, which was acquired in 2019.
Delaying the fee structure revision until after these and other initiatives set KIT' s DPU on a stronger upward trajectory might help win over more investors.