Highlights

• The acquisition of Paragon was completed on 1 Jul 26 and will provide full six-month contribution in 2H26.
   
• The AEI for Tampines Mall was completed in 3Q26, and new brands Chanel, Dior, Paris Baguette, Sephora and Yves Saint Laurent will progressively commence their leases in 2H26. The AEIs for Capital Tower (3Q26-4Q27) and Plaza Singapura (3Q26-4Q28) are running concurrently with a phased approach to minimise disruptions.
   
• CICT backfilled pockets of vacant space in 6 Battery Road and Capital Tower. It is also working on larger spaces vacated by Allianz at CapitaSky (88,000sf) and Adidas at Funan (28,000sf). It is expected to maintain positive rental reversions as upcoming office expiries remain below prevailing market rents at S$11.42psf/month in 2H26 and S$11.87psf/month in 2027.
   
• Maintain BUY. Target price: S$3.06.
   

Analysis

• Full six-month contributions from Paragon in 2H26. CapitaLand Integrated Commercial Trust (CICT) has completed the acquisition of Paragon, a premier integrated development known for upscale luxury shopping next to Mount Elizabeth Hospital and near Orchard and Somerset MRT stations, at an agreed property value of S$3.9b on 1 Jul 26. The freehold asset comprises a six-storey retail podium with two basement levels (NLA: 491,817sf), and medical suites/office tower (NLA: 223,098sf). Paragon provides an NPI yield of 3.9% and full six-month contribution in 2H26.
   
• CICT is executing multiple AEIs across Tampines Mall, Capital Tower, Plaza Singapura and The Atrium@Orchard. The AEIs are undertaken with a phased approach to minimise operational and income disruptions. a) CICT has rejuvenated the main entrance at Tampines Mall to align with URA’s plan for pedestrianisation of the area between Tampines Town Central and Tampines MRT Station, including adding new escalators to improve flow of shoppers to L2. Departmental store space of 38,000sf vacated by Isetan in Nov 25 was reconfigured into smaller specialty units, which generated rental uplift. The AEI has completed in 3Q26. 96% of the AEI space committed or under advanced negotiations as of Jun 26. New brands Chanel, Dior, Paris Baguette, Sephora and Yves Saint Laurent will progressively commence their leases in 2H26. b) CICT plans to build a two-storey multi-tenanted pavilion with 7,750sf of higher-yielding F&B space at Level 1. Level 9 would be reconfigured into a workplace mental wellness centre focused on working adults and their families. Capex is estimated at S$25m. Construction has commenced in 3Q26 and is scheduled to complete in 4Q27.