What is Paradigm REIT?
Paradigm Real Estate Investment Trust (Paradigm REIT) is a listed REIT on the Main Market of Bursa Malaysia since June 2025. It owns a portfolio of three shopping malls: Bukit Tinggi Shopping Centre in Klang, Paradigm Mall Petaling Jaya, and Paradigm Mall Johor Bahru.
The REIT was created to provide investors with stable, regular distributions and long-term growth in net asset value. It is managed by Paradigm REIT Management Sdn Bhd, with WCT Holdings as the sponsor. At listing, the gearing ratio stood at about 34 percent, which is comfortably below the maximum allowed for Malaysian REITs.
Things to Check Before Investing
Before putting money into Paradigm REIT, beginners should review the following factors.
Distribution Yield (DPU): This shows how much income or dividend you are likely to receive compared to the price. At IPO, Paradigm forecasted a yield of about 7.16 percent.
Asset Quality and Location: The value of malls depends on location and customer traffic. Paradigm’s malls are located in strategic urban areas with strong footfall.
Occupancy and Tenant Mix: A high occupancy rate with a wide variety of tenants ensures steady income. Paradigm has a diversified tenant base across its malls.
Debt Levels: Gearing of around 34 percent is reasonable, but investors should watch for changes if borrowing rises.
Management and Sponsor Strength: The performance of a REIT is tied to the capability of its manager and the backing of its sponsor. Paradigm’s manager and sponsor have experience in managing large retail spaces.
Future Growth Potential: Paradigm has rights of first refusal on certain properties from its sponsor, giving it potential to expand its portfolio.
How to Buy Paradigm REIT Units Step by Step
- Open a CDS Account
To trade on Bursa Malaysia, you need a Central Depository System account. This is opened through an approved broker. - Open a Trading Account
Choose a stockbroker or bank brokerage that allows you to trade Bursa Malaysia shares and REITs. - Deposit Funds
Transfer money into your account to be ready for buying units. - Check the Market Price
Look at the current trading price of Paradigm REIT and study recent financial updates or announcements. - Place a Buy Order
Through your broker’s platform, place an order for the number of units you want. You may use a market order or set a limit price. - Receive Distributions
REITs distribute at least 90 percent of their income. Paradigm pays dividends periodically, so you will receive income once distributions are declared. - Monitor Performance
Keep track of occupancy, rental growth, and financial reports to make sure the REIT is performing well. - Decide to Hold or Sell
Based on your investment goals, you may continue holding for stable income or sell if you want to realize capital gains.
Example of Paradigm REIT IPO
Paradigm REIT offered units to the public in May 2025 at an IPO price of RM1.00 per unit. The forecast annualized yield was about 7.16 sen per unit. On its listing day in June 2025, it opened at RM1.00 with strong trading volume.
Risks to Consider
Like all investments, REITs carry risks.
- Retail performance depends on consumer spending trends.
- Rising interest rates can increase borrowing costs.
- High maintenance costs may reduce distributable income.
- Reliance on key tenants can affect stability if leases are not renewed.
- Unit prices can fluctuate even if income remains steady.
Final Thoughts
Paradigm REIT offers beginners an accessible way to invest in property through the stock market. Its portfolio of established malls, decent gearing level, and attractive yield make it a solid starting point for income-seeking investors. However, it is important to track economic conditions, interest rates, and property performance before committing for the long term.
