• 1Q26 revenue of S$487mn (-2% YoY) was slightly below our estimates, forming 21% of our FY26e forecast. Fee-related revenue was the standout performer, rising 10% YoY, driven by strong growth in listed (+14%) and private funds (+58%) management, while REIB revenue declined 14% following the divestment of the Synergy platform.
• Capital raising activity remained resilient despite a weaker macro backdrop amid the Middle East conflict, with S$2.5bn in equity raised across listed and private funds YTD, alongside S$7.2bn in deployment YTD.
• Maintain BUY with an unchanged SOTP-TP of S$3.69 and no changes to forecasts. The listing of a second C-REIT in the next couple of months should support continued capital recycling. We continue to favour CLI for its robust and growing recurring fee income and asset-light strategy, which underpins resilience amid macro uncertainty. However, we expect fundraising momentum and deployment to moderate from the strong 1Q26 levels in the coming months amid a more uncertain macroeconomic backdrop. While Singapore deals remain relatively more resilient given market stability, other markets are more cautious amid concerns around cost pressures and the potential impact of inflation on interest rates.

The Positive
+ Fee income remains key growth driver (+10% YoY). Listed funds management rose 14% YoY
in 1Q26 and should accelerate through the rest of the year as event-driven fees are recognised
upon transaction completion, particularly from CapitaLand Integrated Commercial Trust’s Asia
Square Tower 2 divestment and Paragon acquisition, subject to EGM approval. Private funds
management surged 58% YoY, driven by the Wingate acquisition. In addition, a S$2.4bn
mandate was secured with Income Insurance to manage its Singapore real estate portfolio,
with contributions set to commence next month and provide a meaningful uplift to recurring
private fund management fees going forward. The lodging segment, which saw a 3% increase
in RevPAU in 1Q26, is expected to see low-single-digit recurring fee income growth, with over
25 property openings in the next 12 months.

The Negative

- China’s operating conditions remain challenging. Negative reversions are seen across the
board, although retail shows some improvement as the extent of negative reversions narrows.
The focus remains on maintaining occupancy and cash flow at the expense of rents amid a
difficult operating environment.

• FY25 PATMI of S$145mn (-70% YoY) was below our expectations, forming only 22% of our FY25e forecast due to significant S$439mn revaluation losses, mainly from China. Excluding these losses, FY25 operating PATMI of S$539mn was in line at 98% of our estimates. Operating PATMI rose 6% YoY on higher contributions from listed funds, lower finance costs, and reduced operating expenses.
• Funds Under Management (FUM) grew 7% YoY to S$125bn. CLI believes it can grow FUM to c.S$160bn organically but acknowledges that acquisitions will be necessary to reach its S$200bn target by 2028. Gross divestments fell from S$5.5bn in FY24 to S$3.1bn in FY25, due to a larger proportion of remaining assets being in China. About S$1bn was divested from China at a 10–20% discount to book value, leaving c.S$3bn of Chinese assets still on the books.
• Maintain BUY with a higher SOTP-TP of S$3.69 (prev. S$3.65) as we roll forward our forecasts. We lower FY26e PATMI by 12% on weaker operating performance in China and narrower margins under the FRB. Balance sheet divestments are expected to accelerate in FY26e, with the potential listing of a second C-REIT. We favour CLI for its robust, growing recurring fee income and asset-light strategy, which supports resilience amid macro uncertainty. The board has proposed a final dividend of 12 cents, implying a yield of 3.8%.

The Positives
+ Resilient fee income delivered steady growth (+6% YoY). All fee-related business (FRB)
segments recorded YoY revenue growth, with listed funds management up 8% and private
funds management up 24%, including CLI’s 40% share of SCCP revenue. Under lodging
management, CLI signed a record 19k units across 102 properties, which will support long-term
growth as these units become operational. CLI now has 176k keys, of which over 100k are
operational.

The Negative

- Sharp decline in valuations. In total, S$436mn in aggregate fair value losses were recorded,
mainly due to a S$545mn decline in China (particularly office and business parks), as operating
conditions remain challenging with negative rental reversions across the board. The UK &
Europe also saw losses of S$62mn, partly offset by gains in Southeast Asia (+S$59mn) and India
(+S$98mn).

• 9M25 revenue came in at S$1.57bn (-25% YoY), slightly below expectations (70% of FY25e forecast). The decline was mainly due to CLAS deconsolidation. Excluding this, total revenue rose 2% YoY. Real Estate Investment Business (REIB) revenue fell 12% YoY (ex-CLAS) due to asset divestments, while the Fee Income-related Business (FRB) revenue grew 7% YoY, supported by higher event-driven fees from listed funds management and contributions from SC Capital Partners (SCCP).
• Fundraising momentum picked up with S$3.7bn in equity raised YTD (FY24: S$3.3bn), comprising S$2.1bn for private funds with continued interest in regional thematic and country-focused funds, and S$1.6bn for listed funds, including the successful listing of CapitaLand Commercial C-REIT (CLCR), which opened trading 20% above its IPO price.
• Maintain BUY with an unchanged SOTP-TP of S$3.65. Our FY25e estimates are unchanged. We continue to favour CLI for its robust, growing recurring fee income streams (54% of revenue) and asset-light strategy, which support resilience amid macro uncertainty. A lower interest rate environment is expected to improve fundraising momentum and transaction activity, driving FRB growth.

• 1H25 PATMI was S$287mn (-13.3% YoY), forming 37% of our FY25e forecast and below expectations. The shortfall was mainly from the absence of contributions from divested assets and lower fund performance and transaction fees. Revenue fell 24% YoY, largely due to the deconsolidation of CLAS following CLI’s 4.9% stake sale in Dec 24. Excluding CLAS and divestments, revenue rose 7% YoY on stronger leasing income from Synergy in the USA and improved lodging performance. PATMI is expected to improve in 2H25 with the full contributions from the acquisitions of SC Capital (SCCP) and Wingate.
• Recurring fee income rose 5% YoY in 1H25, driven by a 6% increase in REIT management fees and a 4.4% increase in lodging management fees. The Fee Income-related Business (FRB) contributed 60% of operating PATMI, with management striving to lift this to 70%.
• Maintain BUY with an unchanged SOTP TP of S$3.65. We cut our FY25e PATMI by 16% to reflect slightly lower FRB margins, softer REIB estimates, and weaker-than-expected event-driven fees. The market value of its listed stakes has also been updated. Nonetheless, we continue to favour CLI for its robust and expanding recurring fee income stream and asset-light strategy, which underpins resilience amid macro uncertainty. In addition, the C-REIT listing remains on track, providing a platform for asset recycling.

• 1Q25 revenue of S$496mn (-24% YoY) was slightly below our estimates, forming 22% of our FY25e forecast. The YoY decline was due to the deconsolidation of CLAS. Excluding this, revenue was stable YoY. Due to the challenging transactions market, the 1Q25 fee income-related business (FRB) revenue grew by only 3%. Excluding the deconsolidation of CLAS, the real estate investment business (REIB) revenue fell 6% due to the absence of contributions from divested properties.
• CLI has raised S$1.1bn YTD, including a RMB5bn mandate with a Chinese domestic institution to invest in core strategies in China. It has also applied to list CapitaLand Commercial C-REIT (CLCR), providing CLI with an additional platform for capital recycling and FUM growth. Investments totalling S$1.5bn were made in 1Q25, including the S$944mn Osaka DC development, bringing deployed FUM to c.S$109bn.
• Maintain BUY with an unchanged SOTP TP of S$3.65. Our estimates remain unchanged. We continue to favour CLI for its robust and growing recurring fee income stream and asset-light strategy, which enhances resilience amid macroeconomic uncertainty. With a low debt/equity ratio of 0.39x, CLI can capitalise on future acquisitions and expansion.

• FY24 PATMI of S$479mn (+165% YoY) was below our expectations, forming 64% of our FY24e forecast. The YoY gain was mainly due to lower revaluation losses of S$261mn (-57% YoY). Excluding revaluation losses, FY24 PATMI was in line with our estimates. FY24 revenue rose 1% to S$2.8bn, led by a 9.3% YoY increase in Fee Income-related Business (FRB) revenue, which offset the 3.4% decline in Real Estate Investment Business (REIB) revenue. Operating PATMI fell 10.2% YoY to S$510mn from the absence of contribution from divested properties and one-off income.
• CLI declared a final DPS of 12 cents and a special dividend-in-specie of 0.031 CICT units per share, valued at 6 cents per CLI share, taking total DPS to 18 cents. In addition, CLI also revised its dividend payout policy to a minimum 50% of cash PATMI, up from 30% previously to enhance shareholder returns.
• Maintain BUY with a higher SOTP TP of S$3.65 (previously S$3.38). We lower our FY25e PATMI by 6% to reflect recent corporate activities, including the divestment of ION Orchard and the dividend-in-specie of CICT units. We like CLI for its robust recurring fee income stream and asset-light model. Growth drivers include increased REIT transactions, a faster pace of balance sheet reduction which should improve ROE, and the launch of new funds. CLI remains on track to achieve its S$200bn (FY24: S$117bn, FY23: S$99bn) FUM target by 2028 through organic and inorganic growth. With a low debt/equity ratio of 0.39x, CLI is well positioned for future acquisitions and expansion.

• CLI aims to double its funds under management (FUM) to S$200bn by 2028 and double its operating earnings to over S$1bn by 2028-2030. By focusing on growth-oriented capital deployment, it targets 60-70% of these earnings to come from its four Fee Income-related Businesses (FRB).
• FRB growth will be fuelled by expanding the REIT platform, accelerating private funds growth, and scaling lodging and commercial management through organic expansion, new listings, fund launches, and M&A activities.
• Maintain BUY with an unchanged SOTP TP of S$3.38. Our estimates remain unchanged. CLI remains focused on driving total shareholder return through growth, earnings quality and return on equity.

• 9M24 revenue of S$2.1bn (+1% YoY) was slightly below our estimates, forming 70% of our FY24e forecast. Fee Income-related Business (FRB) revenue grew 6% YoY from stronger private funds management (+14% YoY) and commercial management (+14% YoY). In contrast, Real Estate Investment Business (REIB) revenue fell 2% from divestments in India, Australia and France.
• With S$4.6bn of divestments YTD, CLI has exceeded its annual S$3bn divestment target. Total Funds Under Management (FUM) rose by c.S$2bn to S$102bn following the divestment of ION Orchard to CICT and capital raised from new partner Mitsui O.S.K. Lines. YTD deployment of private funds rose 43% YoY to S$2.1bn, with three new fund launches in 3Q24.
• Maintain BUY with an unchanged SOTP TP of S$3.38. Our estimates remain unchanged. Our SOTP-derived TP of S$3.38 represents an upside of 20% and a forward P/E of 23x. We like CLI for its robust recurring fee income stream and asset-light model. Growth drivers include more REIT transactions, further interest rate declines, and the launch of new funds.

• CLI will be divesting its 50% stake in ION Orchard to its sponsored REIT, CapitaLand Integrated Commercial Trust (CICT SP, non-rated), for a sales consideration of c.S$1.08bn. ION Orchard is currently held in a JV with Sun Hung Kai Properties (SHKP), which holds the remaining 50% stake.
• With this transaction, CLI will increase its funds under management (FUM) by S$1.85bn and will have recycled S$3.6bn in assets year-to-date, surpassing its annual capital recycling target of S$3bn. The divestment proceeds will be used to diversify the portfolio across various geographies and asset classes while also establishing new fund products to enhance fee-related income.
• Maintain BUY with an unchanged SOTP TP of S$3.38. No change in our estimates. This transaction is a positive step in advancing CLI’s asset-light strategy, recycling quality assets from its balance sheet, and growing FUM. We estimate that the absence of contribution from ION Orchard will decrease pro-forma FY24e EBITDA by c.S$106mn, or c.5%, assuming this transaction happened in Jan 2024.

Details of the transaction
The sales consideration of c.S$1.08bn was based on the adjusted net asset values of the companies holding ION Orchard, taking into account 50% of the agreed property valuation of c.S$3.7bn (100% basis). This proposed transaction is subject to the approval of CICT’s noninterested unitholders and is targeted to be completed in 4Q24. The sales consideration of c.S$1.08bn will be paid in cash. CLI has undertaken to fully subscribe to its pro-rata entitlement or the preferential offering as part of the funding for CICT to acquire ION Orchard. As of June 24, CLI’s stake in CICT was 24%.

• 1H24 revenue of S$1.365bn (+1.5% YoY) and PATMI of S$331mn (-5.7% YoY) were slightly below our estimates, achieving 44% and 41% of our FY24e forecast, respectively. The YoY improvement in revenue was driven by an 8% increase in its Fee-income Related Businesses (FRB), partially offset by a 2.3% decline in the Real Estate Investment Business (REIB),which was mainly due to the absence of contributions from divested assets.
• CLI’s FRB contributed 63% of 1H24 operating PATMI, up from 49% in 1H23. This trend is expected to continue as the group shifts towards an asset-light, recurring fee income model. The group aims to double Funds Under Management (FUM) to S$200bn (1H24: S$100bn) by FY28. In 1H24, c.S$1bn of FUM was deployed, increasing the total deployed FUM to S$91bn from S$90bn in FY23, leaving S$9bn of committed equity yet to be deployed.
• Maintain BUY with an unchanged SOTP TP of S$3.38. We cut our FY24e PATMI by 7% after factoring in weaker contributions from the REIB. Our SOTP-derived TP of S$3.38 represents an upside of 36% and a forward P/E of 17.5x. We like CLI for its robust recurring fee income stream and asset-light model. We expect the FRB to continue improving, supported by the gradual increase in FUM, higher lodging management fees as more units open, and the return of event-driven fees.

The Positives
+ 1H24 FRB revenue continues to improve, rising 8% YoY. This was due to improvements in commercial management fees (+22%), lodging management fees (+4%), and private funds management fees (+12%). Funds Under Management, or FUM, now stands at S$100bn,
including S$9bn of committed equity yet to be deployed. CLI remains committed to doubling its FUM to S$200bn by FY28 and strives for double-digit FRB growth annually.
+ On track to hit S$3bn divestment target. Year-to-date, CLI has achieved S$1.7bn in gross divestments, including S$710m divested to funds, S$831m in multifamily assets in the USA, and S$148m reconstitution by funds. Notably, CLI recapitalised Ascendas iHub Suzhou by
divesting it as a seed asset into its new China Business Park RMB Fund III (CBPF III) at S$249mn or RMB1.4bn, securing an onshore major institutional investor as the fund’s anchor investor. Since its listing, CLI has reduced its balance sheet exposure in China by divesting S$1.5bn in assets, with over 70% transferred to CLI’s RMB funds.

The Negative
- Net debt-to-equity rose to 0.59x (1Q24: 0.53x) and the cost of debt rose 10bps QoQ to 4.1%. 61% of debt is on a fixed rate, and the interest coverage ratio remained healthy at 3.5 times. We expect the cost of debt to remain at this level for FY24e.