DBI Announces 6.75 Cents Distribution Including 5.55 Cents Loan Note Repayment

Dalrymple Bay Infrastructure’s Latest Distribution

Dalrymple Bay Infrastructure Limited (ASX: DBI) has announced its ordinary dividend and distribution for the quarter ending 31 December 2025. The company will pay a total distribution of 6.75 cents per stapled security, comprising an unfranked dividend of 1.2 cents and a partial repayment of the loan note component amounting to 5.55 cents.

Dividend Structure and Payment Details

This distribution is notable for its split between a cash dividend and a capital repayment element. The unfranked dividend means investors will not receive franking credits, which can affect the after-tax return depending on their tax situation. The partial repayment of the loan note face value reduces the principal amount of the loan note embedded within each stapled security, effectively returning capital to investors.

The ex-dividend date is set for 27 February 2026, with the record date following on 2 March 2026. Payments will be made on 19 March 2026, allowing investors to plan accordingly for income recognition and cash flow.

Implications for Investors and Capital Structure

By combining a dividend with a loan note repayment, Dalrymple Bay Infrastructure is managing its capital structure while providing a steady income stream. The absence of any required approvals or securities plans for this distribution suggests a straightforward process, reflecting the company’s stable financial position.

Investors should note the unfranked nature of the dividend and consider the impact on their tax liabilities. Additionally, the partial repayment of the loan note may signal a strategic move to reduce debt or adjust the balance sheet, which could influence future distributions and company valuation.

Looking Ahead

While the announcement provides clarity on the current quarter’s distribution, it leaves open questions about the rationale behind the loan note repayment and its longer-term effects. Market participants will be watching for further updates on Dalrymple Bay Infrastructure’s capital management strategy and any subsequent impacts on investor returns.