Keppel Infrastructure Trust (KIT) posted distributable income of 249.5 million Singapore dollars for the year ended Dec 31, 2025, a 24.4% year-on-year jump, lifted by stronger earnings from its Energy Transition as well as Distribution & Storage businesses.
KIT declared a distribution per unit of 1.97 Singapore cents for the second half, bringing the full-year payout to 3.94 cents—unchanged from the previous year and implying a total unitholder return of 17.2% for 2025.
Performance by segment showed Energy Transition contributing S$187.3 million to pre-tax income, up 27.8% YoY on higher gas demand, improved plant availability at Keppel Merlimau Cogen and incremental renewables earnings. Distribution & Storage delivered S$116.4 million, a 17.3% YoY increase as Ixom benefited from mining, oil-and-gas and dairy end-markets, while Ventura met 100% service reliability targets. Environmental Services fell 36.7% to S$44.3 million amid softer landfill pricing in Korea and refinancing costs. Digital Infrastructure added S$1.1 million following KIT’s late-November acquisition of 46.7% of Global Marine Group. The trust also booked S$49.0 million of divestment gains from the sale of Philippine Coastal Storage and a partial stake in Ventura.
On the balance-sheet front, net gearing stood at 38.7%, with interest-coverage at 7.6 times; more than 70% of debt and foreign-currency exposure is hedged. Weighted average cost of debt was 4.4% at the portfolio level and 3.4% at the trust level. Proceeds not yet redeployed have been used to reduce borrowings, and the manager has secured commitments to refinance S$663 million of Ixom’s debt while evaluating options for S$330 million maturing at the trust level later this year.
Strategically, the manager said it recycled about S$300 million of capital in 2025, ploughing roughly S$120 million into its first digital-infrastructure asset and signalling continued interest in renewables, waste-to-energy and other essential-service businesses. KIT’s sustainability targets for environmental stewardship, responsible business practices and community engagement were met or exceeded, the trust added.
Chief executive officer Kevin Neo said the 2025 performance underscored KIT’s “disciplined investment growth and value creation.” He noted that the invest-divest-reinvest model, coupled with strict capital management, positions the portfolio to deliver stable distributions and long-term value even as the manager pursues concession extensions for existing water assets and prepares for stronger demand in South Korea’s private incineration market following a landfill ban that took effect on Jan 1, 2026.
Looking ahead, KIT will focus on expanding its pipeline of energy-transition and digital-infrastructure assets, maintain gearing within prudent limits and continue to hedge interest-rate and currency exposures, the manager indicated.