Macquarie Korea Infrastructure (088980) Q2 2024 earnings summary

Executive summary

• Established in 2002 and listed in 2006, the fund focuses exclusively on Korean infrastructure under the PPP Act, with a market capitalization of KRW ~5.4 trillion and a moderate risk profile.

• Portfolio includes 20 assets: 14 roads, 1 port, 1 rail, 3 city gas, and 1 digital asset, with KRW 3.0 trillion invested as of June 2024.

• As of Q2 2024, committed KRW 2,685.9 billion across core infrastructure sectors.

• Delivered a 6.2% distribution yield in 2023 and maintains a credit rating of AAO (Stable).

Financial highlights

• 1H 2024 revenue was KRW 257.5 billion (+4.5% YoY), and net income was KRW 221.5 billion (+4.6% YoY), driven by higher dividend and interest income.

• Q2 2024 net income was KRW 55,365 million, down from KRW 166,119 million in Q1 2024.

• NAV per share increased 1.9% quarter-over-quarter to KRW 6,800.25.

• Distribution for 1H 2024 is KRW 380 per share, totaling KRW 165.6 billion, to be paid on 30 August 2024.

• Total assets at quarter-end were KRW 3,393,858 million, with liabilities of KRW 430,438 million.

Outlook and guidance

• Management expects continued stable performance, supported by government support payments and long-term concession agreements.

• Anticipates ramp-up in data center utilization as mechanical and electrical works complete by June 2025.

• Distribution guidance for the six months ending June 30, 2024, was disclosed on June 14, 2024.

• Aims to grow revenue and provide stable distributions by investing in and actively managing infrastructure project companies.