KUALA LUMPUR (May 11): Paradigm Real Estate Investment Trust (KL:PARADIGM) reported a net property income (NPI) of RM39.23 million for the first quarter ended March 31, 2026 (1QFY2026), slightly lower than the RM41.72 million recorded in the preceding quarter, mainly due to higher property management fees.
Revenue slipped marginally to RM60.46 million from RM60.85 million in 4QFY2025, weighed by lower advertising and promotional income.
No year-on-year comparison was available, as this marks the REIT’s fourth quarterly results announcement since its listing in June 2025.
Paradigm REIT declared a distribution per unit (DPU) of 1.8 sen, amounting to RM28.83 million, payable on June 10. The payout represents 99.8% of distributable income and translates into an indicative annualised yield of about 4.21%, based on its closing price of 97.5 sen on Monday.
On prospects, the REIT said it remains cautiously optimistic on the retail property outlook while maintaining a disciplined operational and capital management approach.
It expects the Visit Malaysia 2026 (VM2026) campaign to boost tourist arrivals, supporting higher footfall and retail spending at its malls.
The REIT also expects a more stable domestic interest rate environment to provide greater certainty for financial planning and potential asset acquisitions.
“Our immediate priority is to actively manage our leasing pipeline to enhance rental income, backfill the remaining vacancies and execute ongoing asset enhancement initiatives,” it said. “In addition, we will pursue yield-accretive acquisition opportunities to build a more resilient, income-generating portfolio benefitting our unitholders.”
As at end-March, Paradigm REIT had total assets of RM2.57 billion, with investment properties valued at RM2.47 billion. Net asset value stood at RM1.65 billion, or RM1.028 per unit.
Total borrowings stood at RM842.9 million, translating into a debt-to-asset ratio of 32.8%.
Units in Paradigm REIT closed unchanged at 97.5 sen on Monday, giving the trust a market capitalisation of RM1.56 billion. The REIT was listed on June 10, 2025 at an initial public offering price of RM1 per unit.