Report Summary

• Stock: CapitaLand Investment (CLI SP)
• Action: BUY (Maintained)
• Target Price: S\$3.93 (Lowered from S\$4.05)
• Highlights:
  • Fee-related revenue rose 10% year-on-year to S\$310m, driven by private (+58% yoy) and listed funds (+14% yoy).
  • Management is targeting double-digit fee revenue growth in 2026, but single-digit operating earnings growth due to fundraising risks and China exposure.
  • Singapore is the bright spot, while China and weaker ADR rates remain key headwinds.
  • Lodging business shows steady momentum but faces near-term risks from flat-to-soft ADR rates and China’s competitive leasing environment.
  • CLI remains a laggard in share price performance compared to sector peers, mainly due to its significant exposure to China (S\$22.9b of S\$50b private funds).
  • Dividend per share for 2026 expected to be at least S\$0.12, implying a 4.3% yield.
• Key Actionable Insight: BUY maintained with a S\$3.93 target price; main risks are fundraising and China market headwinds.
• Ticker: CLI SP