SINGAPORE – Keppel Infrastructure Trust’s (KIT) distributable income for the first quarter ended March 31 fell 29.1 per cent to $50.9 million, from $71.8 million a year ago.

This is due to lower contribution from its distribution and storage sector as well as higher corporate expenses, based on KIT’s first-quarter business update on May 3.

Distributable income from the distribution and storage sector was down 32.8 per cent to $15.8 million. Corporate expenses, comprising trust expenses and distributions payable to perpetual securities holders, management fees and financing costs, rose 72.8 per cent to $35.6 million.

The trust manager noted that first-quarter distributable income will increase by 29 per cent on the year to $66.8 million, after adjusting for one-off costs.

Earnings before interest, taxes, depreciation and amortisation (Ebitda) for the quarter dropped 5.6 per cent to $118.8 million, compared with $125.9 million in the corresponding year-ago period.

Adjusted Ebitda, excluding one-off acquisition-related costs, unrealised exchange gains and performance fees related to FY2023’s increase in distribution per unit (DPU), stood at $130.7 million, up 3.8 per cent year on year.

First-quarter transactions delivered more than 16 per cent DPU accretion on a pro forma basis, assuming that all distributable income generated will be distributed to KIT and minority shareholders, said the trust manager.

The manager also highlighted new contributions from the German solar portfolio, which generated $12.4 million in distributable income, and resumed contributions from the Keppel Merlimau Cogen Plant, which stood at $10.2 million.

These helped to push the energy transition sector’s distributable income up 2.1 per cent to $49.7 million, despite a 92.3 per cent lower contribution from its renewables portfolio.

Units of KIT were down 1.06 per cent at 46.5 cents at the close of trading on May 3. THE BUSINESS TIMES