Risk Reward Update

Research evidence excerpt

Risk Reward Update

UpdateM

RiskRisk RewardReward– Capitaland- CapitalandAscendas REIT Ascendas(CAPD.SI) REIT (CAPD.SI)

Undemanding valuation with reasonable growth potential

PRICE TARGET S$3.05 OVERWEIGHT THESIS

Base case, 50/50 weights for dividend yield and price to book. ▪As just one of two MSCI SG Standard S-

Our target 2026e dividend yield of 5.00% is 125bp lower than our industry-wide forecast, REITs, we see CLAR as a beneficiary of

reflecting liquidity premium for the stock (one of just two MSCI SG Standard S-REITs), risk- rotational fund flows from potential flight

adjusted DPU growth and DC growth potential. to safety and prospects of interest rate cuts.

Our target P/B on 2024 trailing NAV is 1.3x, 1 s.d. above the five-year historical average, ▪It also offers better DPU growth prospects

reflecting consistent asset recycling and potential redevelopments. (+3% CAGR over 2025-27 vs. flat growth

expectations for the same peers, on S$3.11

average).

Consensus Price Target Distribution S$2.77 S$3.78 is anchored by CLAR’s New Economy MS PT ▪This

Source: Refinitiv, Morgan Stanley Research Mean Morgan Stanley Estimates portfolio (life sciences, logistics and data

centres, which accounts for >40% of AUM),

where we see resilient rent growth potential

(+3% p.a. across 2025-27).

RISK REWARD CHART

S$3.80S$3.80(+52.61%)S$3.80(+52.61%)(+52.61%) Consensus Rating Distribution

SGD

94% Overweight

6% Equal-weight

3.2

S$3.05S$3.05(+22.49%)S$3.05(+22.49%)(+22.49%) 0% Underweight

MS Rating

S$2.49S$2.49S$2.49 Source: Refinitiv, Morgan Stanley Research 2.4

S$2.55S$2.55(+2.41%)S$2.55(+2.41%)(+2.41%)

1.6 Risk Reward Themes

Secular Growth: Positive

Self-help: Positive

0.8

View descriptions of Risk Rewards Themes here

JUL '25 JAN '26 JUL '26 JUL '27