K-Green Trust – Annual Report 2010

K-Green Trust is a business trust listed on the Singapore Exchange on 29 June 2010. The financial results are based on six months ended 31 December 2010.

Background information

K-Green Trust (KGT) was set up by the sponsor, Keppel Integrated Engineering Limited (KIE) which is a wholly-owned subsidiary of Keppel Corporation Limited (KCL). Its investment objective is to invest in “green” infrastructure assets (such as waste management, water and wastewater treatment, renewal energy, energy efficiency and other “green” initiatives) in Singapore and globally with a focus on Asia, Europe and the Middle East. KGT’s initial portfolio consists of Senoko Waste- to-Energy Plant, Keppel Seghers Tuas Waste-to-Energy Plant and Keppel Seghers Ulu Pandan NEWater Plant, all located in Singapore. (see my earlier post dated 11 June 2010)

Financial Results

Net profit after tax $8.7 million (22.1% higher than forecast)
Distribution per unit 4.31 cents (10.2% higher than forecast)
Annualised distribution yield 7.9% (based on closing price at 31/12/2010)

Net Asset value per unit $1.16 as at 31 December 2010
Unit price $1.07 as at 31 December 2010
Price to book ratio 0.92 times

Unit price last traded 25 March 2011 $1.03

KGT has no debt currently. Cash, bank and deposits $85 million

Positive financial results

Financial results for six months ended 31 December 2010 were good. Net profit was 22.1 per cent higher than forecast at time of listing on the Singapore Exchange.

Distribution per unit was also higher than forecast at 4.31 cents resulting in annualised yield of 7.9 per cent. This kind of yield was generally higher than most real estate investment trusts listed (REITs) on the Singapore Exchange.

The net asset value per unit was $1.16 as at year-end but KGT was traded lower at $1.07 giving a price-to-book ratio of 0.92 times. As end of today, KGT ended even lower at $1.03.

KGT had $85 million in cash and cash equivalent (11% of total net assets) with no debt as at year-end.

Copyright © 2011, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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