KUALA LUMPUR, 18 November 2025 — Paradigm Real Estate Investment Trust (Paradigm REIT), one of Malaysia’s newest retail-focused REITs, delivered a robust inaugural financial performance for the period from 10 June 2025 to 30 September 2025, posting profit before tax (PBT) of RM35.48 million and net property income (NPI) of RM50.24 million, supported by steady rental contributions from its portfolio of three established shopping malls in Peninsular Malaysia.
This marks the REIT’s first quarterly announcement since its listing on Bursa Malaysia on 10 June 2025 following the acquisition of Paradigm Mall Petaling Jaya, Paradigm Mall Johor Bahru, and Bukit Tinggi Shopping Centre.
Revenue of RM71.44 Million Driven by Strong Tenant Mix
Over the reporting period, Paradigm REIT recorded RM71.44 million in total revenue, comprising RM58.73 million in rental income and RM12.71 million in other income, including promotional and advertising fees.
Paradigm Mall Johor Bahru contributed the lion’s share of revenue at RM37.26 million, followed by Paradigm Mall Petaling Jaya (RM19.48 million) and Bukit Tinggi Shopping Centre (RM14.70 million).
With Malaysia’s retail market gradually stabilising and footfall improving across key commercial clusters, Paradigm REIT benefitted from sustained demand across its tenancy portfolio, including F&B, fashion, essential services, and entertainment categories.
RM50.24 Million Net Property Income Despite Cost Pressures
Paradigm REIT posted a healthy NPI of RM50.24 million, slightly above its interim forecast of RM50.05 million. The outperformance was attributed to savings in property operating costs, including utilities, maintenance and other overheads.
Total property operating expenses for the period stood at RM21.20 million, while utilities accounted for RM6.18 million. The REIT’s ability to maintain NPI strength despite rising cost pressures underscores disciplined cost management and stabilised operations across the three malls.
Strong Profitability and 2.22 Sen Distributable Income per Unit
For the period under review, Paradigm REIT generated PBT of RM35.48 million and distributable income of RM36.49 million, translating into earnings per unit (EPU) of 2.22 sen.
This figure exceeded the REIT’s projected distributable income by RM0.96 million, supported by higher realised profit and lower operating expenses than forecast.
Notably, no taxation was incurred as Paradigm REIT intends to distribute at least 90% of total income for the financial year ending 31 December 2025, thus qualifying for tax exemption under Section 61A of the Income Tax Act.
Balance Sheet Strengthened by Robust Cash Position
As at 30 September 2025, Paradigm REIT recorded total assets of RM2.55 billion, driven primarily by investment properties valued at RM2.44 billion, consisting of its three flagship malls.
The REIT ended the period with a strong cash and bank balance of RM93.62 million, reflecting healthy cash flows generated from its operations totalling RM90.40 million.
The issuance of 1.6 billion new units at RM1.00 per unit and the RM845 million medium-term notes (MTNs) raised under its RM5 billion MTN programme further contributed to a stable liquidity position. Borrowings constituted 33% of total asset value, within the REIT Guidelines’ permissible gearing limit.
Net asset value (NAV) stood at RM1.0176 per unit, up from RM0.9995 at listing.
Portfolio Overview: Three High-Performing Retail Centres
Paradigm REIT’s portfolio remains focused on three prominent retail centres positioned within established catchment areas:
• Paradigm Mall Johor Bahru
• Paradigm Mall Petaling Jaya
• Bukit Tinggi Shopping Centre, Klang
Each mall continues to benefit from steady tenant demand, high occupancy rates, and consistent shopper traffic, positioning the REIT for sustained income generation.
Outlook: Cautious but Supported by Stable Retail Market Fundamentals
The REIT Manager remains cautiously optimistic given Bank Negara Malaysia’s revised 2025 GDP growth projection of 4.0%–4.8%. Rising cost pressures from service tax on commercial rentals, electricity tariff adjustments, and potential subsidy rationalisation may weigh on the retail sector.
Nonetheless, Paradigm REIT aims to mitigate these challenges through:
• Proactive asset management
Maintaining high occupancy rates, enhancing rental yields and optimising lettable space.
• Acquisition growth pipeline
Exploring mature and emerging retail assets capable of delivering stable cash flows and long-term appreciation.
• Capital and risk management
Optimising capital structure with a mix of equity and fixed-rate debt to ensure sustainable financial flexibility.
No Material Events or Litigation
Paradigm REIT confirmed that there were no material events, corporate proposals, pending litigations, or off-balance sheet financial instruments during the period under review.
