Fund Manager Summary
The fund managers believe that the outlook for Dalrymple Bay Infrastructure Ltd presents a compelling opportunity for investors. In their opinion, the company offers inflation-adjusted cash flows that resemble fixed income investments, making it an attractive option in the current market. With the share price rising over 30% since their entry point, the fund managers note that while the underlying business has remained stable, there has been a growing appreciation among investors. They highlight that improved liquidity following an investor sell-down, coupled with consistent growth in distributions and a lack of surprises, has brought the company more into focus for generalist equity investors.
Source: Trading View
Commentary From The Managers
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Contact Asset Management
30 Sept 2025
$4.37
Summary
- Dalrymple Bay Infrastructure Limited (ASX:DBI) is the owner and operator of a high-margin coal terminal.
- Recent results showcase solid performance, driven by resilient coal export volumes and contractual stability.
- The company has demonstrated effective cost controls and achieved a 95% utilization rate at the terminal.
- DBI supports a quarterly distribution of 6.125 cents per stapled security.
- Over the past year, DBI has increased by 44%, indicating strong market performance.
- Contact Asset Management continues to hold DBI due to its defensive appeal.
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Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Contact Asset Management
30 Sept 2025
$4.37
- Dalrymple Bay Infrastructure Limited (ASX:DBI) is the owner and operator of a high-margin coal terminal.
- Recent results showcase solid performance, driven by resilient coal export volumes and contractual stability.
- The company has demonstrated effective cost controls and achieved a 95% utilization rate at the terminal.
- DBI supports a quarterly distribution of 6.125 cents per stapled security.
- Over the past year, DBI has increased by 44%, indicating strong market performance.
- Contact Asset Management continues to hold DBI due to its defensive appeal.
Summary
Atlas Funds Management
30 Sept 2025
$4.37
- Atlas Funds Management initiated a position in Dalrymple Bay Infrastructure, a coal export terminal in Queensland.
- The investment is supported by take-or-pay contracts, ensuring stable revenue streams.
- Dalrymple Bay Infrastructure offers an attractive 6% dividend yield.
- The fund manager has monitored this opportunity for several months.
- The exit of Brookfield created a favorable entry point for this investment.
- Atlas is satisfied with this portfolio move, especially as Bapcor declined by a further 10% post-exit.
- Dalrymple Bay gained 7% after being included in the ASX 200.
Summary
Blackwattle Investment Partners
30 Sept 2025
$4.37
- Blackwattle Investment Partners initiated a position in Dalrymple Bay Infrastructure Ltd (DBI) as it gains notoriety following the exit of Brookfield and QIC.
- DBI is a coal terminal in Queensland, established since the mid-80s, servicing the Bowen Basin.
- The facility, originally a 15 million tonne capacity, is expanding towards or above 100 million tonnes.
- DBI is recognized for servicing high-quality metallurgical coal mines, positioning it uniquely in the market.
- The fund manager appreciates the established framework of contracts that support a fully contracted profile, ensuring investors are backed in terms of returns.
- DBI features a cost pass-through structure within its contracts, providing additional security for investors.
- Blackwattle acknowledges the relatively light-handed regulatory structure, allowing for a favorable balance between returns and capital deployment.
- The attractive starting yield of approximately 6% presents a compelling investment opportunity.
- The fund manager believes there is a clear pathway for growth and return potential in DBI.
Summary
Plato Investment Management
25 July 2025
$4.49
- Plato Investment Management continues to hold Dalrymple Bay Infrastructure Ltd due to its performance, having increased from $2 to $4.50 over the past couple of years.
- Initially, the market anticipated a decline in coal assets, particularly during heightened climate change concerns.
- Currently, there is still no alternative to metallurgical coal for steel production, suggesting that the structural demand for these assets will persist longer than previously expected.
- The stock has rallied, reflecting this ongoing demand, yet it remains attractive with a solid yield.
- Future dividend growth is supported by take-or-pay contracts that are set to increase.
- Overall, Plato Investment Management maintains a positive outlook on Dalrymple Bay Infrastructure Ltd.
Summary
Atlas Funds Management
25 July 2025
$4.49
- Atlas Funds Management views Dalrymple Bay Infrastructure Ltd as a compelling investment opportunity due to its ownership of a coal loading port in Queensland.
- The company operates as a lightly regulated utility, benefiting from take or pay contracts that are generally long-term.
- Dalrymple Bay does not have operational responsibilities, eliminating concerns related to stevedores and union issues.
- The asset is considered attractive and long-dated, making it a favorable buy at current prices.
- Recent developments include Brookfield's 23% sell-down, improving the free float of the stock.
- There is a reasonable possibility of Dalrymple Bay being included in the ASX 200, unlike other companies in the sector.
- While the company may face higher interest costs in the coming years, these will likely be offset by increased charges on infrastructure.
- Overall, Atlas Funds Management finds Dalrymple Bay to be a very interesting company with solid investment potential.
Summary
Contract Asset Management
30 June 2025
$4.25
- Dalrymple Bay Infrastructure (DBI) made headlines with Brookfield Infrastructure’s A$428 million sell-down of a 23.2% stake.
- DBI released an investor presentation highlighting its strategic importance as the lowest-cost export pathway for Bowen Basin metallurgical coal.
- The terminal has a capacity to handle over 80 million tonnes of coal annually and exports to over 25 countries.
- DBI’s low-risk business model features stable cash flows and strong customer relationships.
- Revenue is secured through a “take-or-pay” contract structure, ensuring income regardless of actual coal throughput.
- The stock closed the month up 5.3%, capping off a very strong year.
- Contract Asset Management continues to hold because of DBI's solid fundamentals and growth potential.
Summary
LHC Capital
30 June 2025
$4.25
- LHC Capital purchased shares in Dalrymple Bay Infrastructure (DBI) from Brookfield, contributing positively to quarterly returns.
- Compelling fundamental investment case for DBI identified, along with a near-term trading catalyst.
- Anticipated inclusion in the ASX200 index next quarter expected to drive passive buying and attract larger institutional investors.
- DBI operates the long-term lease for Dalrymple Bay Terminal, a key multi-user coal export facility servicing 21 mines in the Bowen Basin.
- Location and connectivity advantages provide DBI with a cost-effective operational edge over competitors.
- DBI generates predictable cash flows through long-term take or pay contracts with operational cost protection.
- Achieved 95% EBITDA margins in the last fiscal year, indicating strong profitability.
- Transitioned to a light handed regulatory regime in 2021, allowing direct customer negotiations.
- Revenue primarily from a Terminal Infrastructure Charge (TIC) that adjusts with inflation, ensuring revenue visibility.
- Non-Expansionary Capital Expenditure (NECAP) program expected to drive material uplift in shareholder returns.
- Potential for additional growth through the 8x Expansion Project, adding 15mtpa capacity at an estimated cost of A$1.5 billion.
- Customer group shows strong interest in expansion, having funded initial studies, signaling positive demand.
- DBI expected to provide solid risk-adjusted returns, uncorrelated to general equity markets.
- Current yield around 6.5% with quarterly distributions and a target growth of 3-7% per annum for distributions.
Summary
BKI Investment Company
30 June 2025
$4.25
- BKI Investment Company invested an additional $53 million in Dalrymple Bay Infrastructure (DBI-ASX).
- Participation in the June block trade followed a 23.2% sell down by Brookfield Infrastructure.
- This investment increased DBI's allocation to 3.1% of the BKI portfolio.
Summary
DS Capital
30 June 2025
$4.25
- DS Capital notes that the share price of Dalrymple Bay Infrastructure increased by almost 44% over the year.
- Attractive distributions have been paid to shareholders, enhancing overall returns.
- Dalrymple provides terminal infrastructure and services to the global steelmaking supply chain.
- Capacity is fully contracted on a ‘take or pay’ basis, ensuring stable revenue streams.
- Favourable customer arrangements include CPI inflation adjustments, offering a hedge against current economic conditions.
- Distribution guidance from the AGM in May was better than expected, implying nearly a 6% grossed-up yield at the current share price.
- As a single asset entity operating at 100% capacity, there are potential growth options through capacity expansion or new acquisitions.
- DS Capital added to their position during the year and continues to view this holding as attractive on a risk/reward basis.
Summary
Forager Funds
31 Mar 2025
$3.85
- Forager Funds sold their investment in Dalrymple Bay as the price increased over 30% from their entry.
- The investment was viewed as an inflation-adjusted stream of cashflows, similar to a fixed income investment.
- Despite minimal changes in the underlying business, investor appreciation for the business increased.
- Improved liquidity followed an investor sell down, enhancing the investment's profile.
- Consistent growth in distributions and lack of negative surprises kept the business relevant among investors.
Summary
BKI Investment Company
30 June 2024
$2.98
- BKI Investment Company has initiated a new position in Dalrymple Bay Infrastructure (DBI-ASX).
- DBI is an Australian infrastructure company with a 99-year lease on the Dalrymple Bay Terminal.
- The terminal is recognized as the world’s largest export metallurgical coal facility, catering to leading global customers.
- Valuation is compelling with a forward PE multiple of 15.1X.
- DBI offers a healthy future earnings stream.
- The investment provides a 10.6% grossed up dividend yield, with 70% of it franked.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
"With a staggering 30% price surge, it appears Dalrymple Bay Infrastructure Ltd has transformed from a hidden gem into a must-watch asset, as savvy investors recognize its steady cash flow and distribution growth amid a shifting market landscape."
Last Updated: 30 Sept 2025
Query The Data
Frequently Asked Questions
Who is investing in Dalrymple Bay Infrastructure Ltd (ASX:DBI)?
Fund managers including Forager Funds, Contract Asset Management, LHC Capital, Atlas Funds Management, Plato Investment Management, BKI Investment Company, DS Capital, Blackwattle Investment Partners and Contact Asset Management have invested in Dalrymple Bay Infrastructure Ltd (ASX:DBI).
Why do fund managers invest in Dalrymple Bay Infrastructure Ltd?
Fund managers invest in Dalrymple Bay Infrastructure Ltd due to its reliable, inflation-adjusted cash flows that resemble fixed income investments. The company has experienced a significant price increase, driven by improved investor perception, enhanced liquidity following a sell-down, and consistent growth in distributions. These factors have positioned Dalrymple Bay as an attractive option for generalist equity investors.
What happened to Dalrymple Bay Infrastructure Ltd (ASX:DBI)?
Fund managers are investing in Dalrymple Bay Infrastructure Ltd (DBI) due to its strong financial profile, characterized by take-or-pay contracts that ensure revenue stability and a robust 6% dividend yield. The coal terminal, servicing high-quality met coal mines in Queensland, is expanding its capacity significantly, enhancing its long-term growth potential. With a solid utilization rate of 95% and effective cost controls, DBI has demonstrated resilience in coal export volumes. Additionally, the exit of Brookfield has created an attractive entry point for investors, positioning DBI favorably within the ASX 200 and appealing for its defensive investment characteristics.