We forecast distributable income to post a 13.8% CAGR over FY25-27E, supported by assumed rent reversion of 3% pa, a series of AEI initiatives to boost bed count and onboarding of in 2026. We initiate coverage on CAREIT with a BUY and a DDM-based TP of SGD1.27, which implies FY26E DPU yield of c.5.7%. Risks to our call include macroeconomic uncertainties that may weigh on demand/rental rates from PBWA/PBSA. Resilient portfolio with organic growth potential To comply with the IDS by 2030 and NDS by 2040, management indicated that three PBWA properties (Toh Juniper) will face a reduction of 917 beds.