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Steady Performance, Steady Payouts from Paradigm REIT
In an era where volatility dominates headlines, Paradigm Real Estate Investment Trust (“Paradigm REIT”) is quickly earning a reputation for reliability. Backed by three prime suburban malls: Bukit Tinggi Shopping Centre, Paradigm Mall Petaling Jaya, and Paradigm Mall Johor Bahru, the REIT’s maiden results demonstrate its ability to deliver consistent earnings and distributions, supported by near-full occupancy and prudent financial management.
Half-Yearly Distributions: Predictable as a Fixed Deposit
What sets Paradigm REIT apart for retail investors is its clear half-yearly payout schedule, mirroring the rhythm of a fixed deposit. The Manager has committed to distributing at least 90% of the REIT’s distributable income for each six-month period ending 30 June and 31 December every financial year.
That means the first distribution, covering the period 10 June – 31 December 2025, will be paid by end-February 2026, following Chinese New Year 2026[WY1] . It’s a festive “ang pow” investors can plan for. The second distribution will follow about six months later, reinforcing the REIT’s image as a predictable, income-paying vehicle that complements traditional fixed-income instruments.
Solid Debut with Figures to Match Forecasts
Although Paradigm REIT’s first reporting period covered just 21 days (from 10 June to 30 June 2025), the results already mirrored expectations. The REIT recorded revenue of RM13.17 million, net property income (NPI) of RM9.26 million, and profit after tax (PAT) of RM6.51 million, translating to distributable income (DI) of RM6.63 million, or 0.41 sen per unit. These were closely aligned with the prospectus forecasts, with marginal variance of less than 1%, underscoring resilience and operational discipline.
On an IPO fund size of 1.6 billion units, the prospectus implies a forecast DPU of 5.77 sen for FY2025 (covering 294 days forecast period). Annualising this suggests potential DPU of around 7.16 sen[WY2] . At a current unit price of about RM0.980, the forward distribution yield implied by the ~7.16 sen annualised DPU is about 7.3%–7.4%. The current price therefore enhances the effective yield while investors wait for the scheduled distributions.
Anchored by High Occupancy and Diversified Strengths
Paradigm REIT’s stability is underpinned by a robust occupancy profile averaging 99% across its portfolio. In this short period alone, PM JB contributed approximately 52% of total revenue (RM6.8 million), followed by PM PJ (RM3.7 million) and BTSC (RM2.7 million). This healthy diversification ensures that no single property dominates earnings, a hallmark of sustainable income stability.
Steady Performance, Steady Payouts
For retail investors seeking reliability, Paradigm REIT delivers on both performance and predictability. The consistency between actual and forecasted results builds confidence, while the twice-yearly payout cycle — with the first distribution by end-February 2026 and the next six months later, offers the reassurance of a “yield clock” that ticks with precision.
In short, Paradigm REIT is built for those who value stability over speculation, a portfolio that pays on time, performs as expected, and turns every festive season into an income-earning occasion.
Sabah has been expanding rapidly recently. Earlier this year, NCT acquired a stake in a Sabah-based property developer , a move that suggests something big could be on the horizon in the coming year.
Investment Note: Paradigm REIT (5338)
Paradigm REIT: A Solid 7%+ Yield Backed by Retail Strength
Paradigm REIT (KLSE: PARADIGM), listed in June 2025, has anchored its portfolio with three prominent retail assets: Paradigm Mall Johor Bahru, Paradigm Mall Petaling Jaya, and Bukit Tinggi Shopping Centre. Together, these malls were valued at a combined RM2.44 billion and continue to enjoy high occupancy, providing a stable base of recurring income. With borrowings of RM842.6 million, the REIT’s gearing ratio stands at about 33.5%, leaving ample headroom under the regulatory cap of 50%.
For the short stub period from 10 to 30 June 2025, Paradigm REIT delivered revenue of RM13.2 million and net property income of RM9.3 million. Distributable income came in at RM6.63 million, above forecast, translating into earnings of 0.41 sen per unit.
More crucially, the full-year forecast disclosed in the prospectus projects revenue of RM187.8 million, net property income of RM129.9 million, and distributable income of RM92.4 million for the period from 13 March to 31 December 2025. Based on the IPO fund size of 1.6 billion units, this equates to a forecast distribution per unit (DPU) of 5.78 sen for FY2025 (covering the nine-and-a-half-month forecast period). Annualising the figures to a full year suggests potential DPU closer to 7.2 sen, which, when compared against the IPO issue price of RM1.00, implies a forward yield of about 7.2% per annum. With the units now trading at around RM0.985, the effective yield is even more attractive, rising towards approximately 7.3%–7.4% on a forward basis.
The yield profile is competitive when benchmarked against other Malaysian retail REITs, which often distribute in the 5%–6% range. Paradigm Mall Johor Bahru stands out as the top contributor, generating nearly RM98.2 million in forecast revenue and RM66.4 million in net property income, with occupancy close to full levels. Petaling Jaya and Bukit Tinggi contribute a combined RM89.6 million in forecast revenue and RM63.6 million in net property income, both maintaining high stability.
In conclusion, Paradigm REIT offers investors a compelling entry into Malaysia’s retail REIT sector. Its forecast distributions point towards an initial yield comfortably above 7% per annum, and with units currently trading just below IPO levels, the effective yield stretches higher still. For investors seeking steady income visibility and exposure to resilient retail assets, Paradigm REIT stands out as a promising option with potential to sustain and even improve its yield profile as the portfolio matures.
