On 31 January 2024, Keppel Infrastructure Trust (“KIT”) announced their 2023 full year result. Based on the results, their distributable income can sustain the dividend payout over the last few years excluding the one-off distribution relating to the Ixom Capital Optimisation. This translates to a healthy yield.

However, with the large distribution paid out in relation to the Ixom Capital Optimisation as well as management continuing to pay out dividends based on EBITDA, there is a significant decrease in net asset value per share this quarter to SGD0.155 as at 31 December 2023. This naturally also pushed up their gearing and P/B ratio making it look expensive at the current share price. This trend is likely to continue, and investors should keep in mind the possible risks as highlight in the “Key things to note” section.

Take note as well that on 5 February 2024, KIT have announced their proposed