On 20 October 2022, Keppel Infrastructure Trust (“KIT”) recently announced their 2022Q3 business updates. Not unexpectedly, the revision of management fee structure has continued to decrease the distributable income, although operational cash flows continue to increase. I am expecting dividend to be cut in 2023, and I have detailed my thoughts below.

Website: General Announcement::Keppel Infrastructure Trust Key Business And Operational Updates For The Third Quarter 2022

Background

KIT is the largest diversified business trust listed in Singapore with approximately SGD5 billion in assets under management.

The Trust was constituted on 5 January 2007 under the laws of the Republic of Singapore and registered with the Monetary Authority of Singapore (registration number 2007001).

KIT’s portfolio comprises strategic businesses and assets in the three core segments of Energy Transition, Environmental Services, and Distribution & Storage. These businesses and assets provide essential products and services across a broad range of industries;