NetLink NBN Trust has announced its financial results for the fiscal year 2025, revealing a stable EBITDA of S$288.1m, consistent with the previous year. The trust’s performance was in line with expectations, despite facing challenges from a lower interconnect rate throughout the year. The distribution per unit (DPU) increased by 1.1% year-on-year to 5.36 Singapore cents, meeting market expectations.
The trust’s yield remains largely insulated from broader economic uncertainties, maintaining a 6% yield. DBS Group Research recommended a “BUY” with an unchanged target price of S$0.98, citing the current yield spread of 330 basis points, which is higher than its four-year average of 319 basis points. This spread is expected to support an increase in the share price.
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