🦎 ANALYST WATCH | 14 AUGUST 2026

C38U CAPITALAND INTEGRATED COMMERCIAL TRUST

WHAT THE ANALYST SAYS

RHB maintains BUY, target price S$2.75, implying about 9 percent upside and roughly 5 percent yield. The thesis rests on operational momentum, falling utilities and financing costs, and asset enhancement returns supporting continued distribution growth. First half DPU rose 7.1 percent year on year, helped by the Gallileo and CapitaSpring acquisitions. Occupancy improved to 95.6 percent, with retail rental reversions up 4.0 percent and office up 6.5 percent.

Net property income margin rose to 74.5 percent, and RHB expects further improvement as utility hedges roll through at lower prices. On growth, RHB flags asset enhancement work as more attractive than new acquisitions right now, roughly 7 percent return versus about 4 percent on acquisitions, with active projects at Tampines Mall, Lot One and Raffles City Tower, and Capital Tower and Plaza Singapura starting this quarter. Paragon is flagged as a possible future redevelopment candidate.

On the other side, CICT is exploring an exit from its German assets, about 3 percent of AUM, with Main Airport Centre a possible near term sale, though weak German conditions could slow that. RHB's main downside risks are weaker Singapore GDP growth and a resurgence in inflation.

NOTE

This is a broker research excerpt, RHB's own note advises checking the operational figures against CICT's primary results release. For the full report, check RHB's published research or your broker platform.

Not financial advice. Iggy's Forensic Compliance Standards apply.