Chong Kim Huat's comment on PARADIGM. All Comments

Chong Kim Huat
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Paradigm Reit offers an attractive ~7% dividend yield, supported by a high-quality retail asset portfolio. Key points include:
1. High-Quality Retail Asset Portfolio - Features prime assets like Paradigm Mall PJ, Paradigm Mall JB, and Bukit Tinggi Shopping Centre, all in top locations with strong foot traffic and near-full occupancy (97.9%–99.2%).

2. Stable Income with Growth Potential - Long-term lease with AEON (BTSC) ensures steady cash flow until 2029 and a diverse tenant mix across malls reduces dependence on any single tenant.

3. Strong Sponsor & Financial Backing - Backed by WCT Group, holding 65% ownership post-IPO and strong financial support with a RM5.0 billion MTN programme and RM845 million secured against key assets.

4. Balanced Lease Expiry Profile - Top 10 tenants contribute less than 20% of rental income per mall, minimizing concentration risk and lease expiries spread across 2027 to reduce vacancy risk.

5. Strategic Growth Outlook - Potential for rental reversion, asset enhancements, and future acquisitions, providing further growth opportunities.
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