Broker: OCBC Group Research
Date of Report: 30 April 2026

Excerpt from OCBC Group Research report.

Report Summary

• Stock Focus: CapitaLand Investment Ltd (CLI SP EQUITY)
• Action: BUY
• Target Price: SGD 3.58
• Last Close: SGD 2.80
• Key Idea: CLI is standing firm against adversity by shifting towards an asset-light business model with a focus on recurring fee income. The company targets to grow funds under management (FUM) from SGD 125b (end-2025) to SGD 200b by 2028, leveraging M&A supported by a strong balance sheet (net gearing 0.41x).
• Highlights:
  • 1Q26 fee related revenue grew 10% year-on-year, offsetting a 14% dip in real estate investment business (REIB) revenue.
  • CLI’s lodging management business aims to increase fee revenue from SGD 350m (FY25) to over SGD 500m by 2028, despite near-term EBITDA margin pressure.
  • Active capital recycling: CLI raised SGD 2.5b equity and divested SGD 3.4b YTD, with ongoing plans for a second China onshore REIT and a new SGD 2.4b mandate with Income Insurance for Singapore real estate management.
  • Balance sheet improvement provides debt headroom of SGD 4.1b (to 0.7x gearing), supporting future M&A and opportunistic growth.
  • Risks include macroeconomic slowdown, interest rate spikes, and geopolitical uncertainties; however, quality platforms and recurring income streams position CLI well for selective investor capital.

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