PETALING JAYA, 20 August 2025 — Paradigm Real Estate Investment Trust (Paradigm REIT), which made its debut on the Main Market of Bursa Malaysia Securities on 10 June 2025, has unveiled its first interim financial results, showcasing resilience and operational strength in the face of a challenging retail environment.
For the financial period ended 30 June 2025 (FP 30 June 2025), Paradigm REIT posted revenue of RM13.2 million, net property income (NPI) of RM9.3 million, and profit after taxation (PAT) of RM6.5 million. Distributable income stood at RM6.6 million, or 0.41 sen per unit, reflecting the REIT’s income stability in its first reporting cycle as a listed trust.
Expanding Margins Reflect Asset Strength
The Manager, Paradigm REIT Management Sdn Bhd, attributed the results to disciplined asset management and the strength of its prime retail properties. Notably, NPI margin rose to 70.3% from 67.3% in FY2024, while PAT margin expanded to 49.4% from 44.7%. These improvements underscore enhanced cost control and strong tenant performance.
Chief Executive Officer and Executive Director Ms. Chua Kah Noi Selena remarked, “Our strong margins reflect the fundamental resilience and income-generating strength of our assets. The stability in our financial performance, despite market volatility, is a testament to our proactive and focused management approach in delivering sustainable value to unitholders.”
Portfolio Performance: High Occupancy, Strong Yields
Paradigm REIT’s portfolio of three shopping centres — Bukit Tinggi Shopping Centre (BTSC), Paradigm Mall Petaling Jaya (PMPJ), and Paradigm Mall Johor Bahru (PMJB) — continued to generate high occupancy and stable rental income.
- BTSC achieved a 5.8% NPI yield with full occupancy, cementing its reputation as a fully-leased, income-stable asset.
- PMPJ delivered a 6.7% NPI yield with 98.3% occupancy, buoyed by consistent tenant demand.
- PMJB led the portfolio with a 7.0% NPI yield and 99.4% occupancy, benefiting from a well-balanced tenant mix of anchor retailers and diverse offerings.
These robust performances underline the portfolio’s resilience, with consistently high occupancy rates ensuring income visibility and positioning Paradigm REIT as a defensive retail REIT.
Solid Balance Sheet and Growth Headroom
As of 30 June 2025, Paradigm REIT reported total assets of RM2.52 billion with a debt-to-total asset ratio of 33.5%. This prudent leverage level highlights a solid capital structure, limited refinancing risk, and the flexibility to pursue future acquisitions or asset enhancement initiatives.
The Manager reaffirmed Paradigm REIT’s commitment to distributing at least 90% of distributable income on a half-yearly basis, aligning with its promise of providing stable and sustainable returns while retaining sufficient capital for growth.
Outlook: A Resilient Player in Retail REITs
The REIT’s early results demonstrate strong tenant retention, rental resilience, and operational efficiency. With high occupancy levels across its portfolio and a conservative financial structure, Paradigm REIT is well-positioned to weather market volatility and deliver consistent income to unitholders.
For investors seeking defensive exposure to Malaysia’s retail real estate, Paradigm REIT’s combination of stable yields, disciplined capital management, and strategic growth capacity makes it a compelling choice.
