KUALA LUMPUR (Jan 27): Paradigm Real Estate Investment Trust (Paradigm REIT) recorded a modest improvement in net property income (NPI) for the fourth quarter, supported by lower electricity expenses and stronger rental collections.
For the quarter ended Dec 31, 2025 (4QFY2025), NPI rose to RM41.72 million, up from RM40.98 million in the previous quarter. The improvement was largely attributed to savings from bulk electricity tariff incentives granted during the period.
Quarterly revenue increased 4.4% to RM60.85 million from RM58.27 million in 3QFY2025, driven mainly by higher rental income across the REIT’s retail portfolio. As Paradigm REIT was only listed in June 2025, year-on-year comparisons are not yet available, with this being its third quarterly results announcement.
In line with its income-focused strategy, Paradigm REIT proposed a distribution of 4.10 sen per unit, totalling RM65.6 million, to be paid on Feb 27. This represents 99.3% of its distributable income and implies a distribution yield of approximately 4.1%, based on the REIT’s closing price of 99.5 sen on Jan 26.
For the full financial year, the REIT posted an NPI of RM91.97 million on total revenue of RM132.29 million.
Despite a challenging retail environment, the REIT remains cautiously optimistic about sector prospects. Its manager, Paradigm REIT Management Sdn Bhd, said it will continue to focus on proactive asset management initiatives to sustain rental income and maintain stable distributions to unitholders.
“Our approach is very hands-on, and the benefits of our operational improvements flow directly into distributable income,” said chief executive officer Chua Kah Noi Selena.
She added that across the portfolio, the manager is enhancing food-and-beverage zones, refining tenant layouts and adjacencies, and converting underutilised areas into more productive retail and convenience-driven spaces. These efforts are aimed at maintaining high occupancy levels and delivering consistent cash distributions.
As at end-December 2025, Paradigm REIT’s total assets stood at RM2.6 billion, with investment properties valued at RM2.5 billion. Net asset value amounted to RM1.7 billion, or RM1.05 per unit.
Total borrowings were RM842.8 million, resulting in a gearing ratio of 32.4%. The REIT noted that this provides sufficient balance sheet flexibility to support future asset enhancement initiatives or potential acquisitions.
From a broader property market perspective, steady retail and commercial performance continues to support overall confidence in commercial property in KL, alongside sustained interest in office space in Bukit Jalil. These trends complement longer-term demand drivers in the Klang Valley, including industrial land in Selangor, factory developments in Puchong, and established industrial property in the Subang area, where business activity remains resilient.
Malaysia