KUALA LUMPUR: Paramount Corporation Bhd is rolling out RM1.1 billion worth of property launches in 2026 while stepping up efforts to monetise underperforming assets, as the group positions itself for stronger capital efficiency amid a structurally tightening supply environment.

Backed by RM1.5 billion in unbilled sales as at Dec 31 2025, the property developer said earnings visibility remains intact despite a softer market in 2025, which saw industry transaction volumes ease slightly.

Group CEO Jeffrey Chew said the residential market remains fundamentally supported by demand-supply dynamics, noting that post-Covid-19 pandemic housing completions have struggled to keep pace with transaction growth over the past decade.

“Demand has expanded over the last 10 years, while supply completion has not kept up. In that sense, the property market remains promising,” he said at Paramount’s media briefing today.

For FY25, Paramount’s revenue slipped 9% to RM946.9 million from RM1.04 billion previously, reflecting a moderated launch pipeline.

The group posted stable profit before tax of RM157.0 million, up from RM156.9 million a year earlier, while net profit rose 16% to RM118.8 million. Earnings per share stood at 19 sen.

Paramount declared a second interim dividend of 4.5 sen per share, bringing total FY25 dividend to 7.5 sen per share, equivalent to a dividend yield of 7.4%.

The property segment recorded revenue of RM897.7 million, down from RM965.3 million in FY24, with segment PBT easing to RM126.4 million from RM144.0 million.

Nevertheless, Paramount achieved RM1.03 billion in property sales in FY25, marking the fourth consecutive year sales exceeded the RM1 billion mark.

Chew said this consistency reflects disciplined execution and product positioning in its core markets of Selangor, Penang and Kedah.

In 2026, the group plans seven launches across these states, including new phases of The Atera in Petaling Jaya and Paramount Embun Hills in Penang, as well as new developments in Shah Alam and near Kulim Hi-Tech Park.

It expects first-half sales momentum to track broadly in line with last year, noting festive overlaps and fewer active launches in early 2026.

Beyond sales, Paramount is sharpening operational efficiency. The group said value engineering initiatives have generated savings of about RM13 million to RM14 million on selected projects, allowing it to either enhance product offerings or maintain pricing competitiveness.

It is also targeting shorter development cycles, aiming for about two to two-and-a-half years from land acquisition to first launch, and around five to six years for full project completion in selected cases.

A quicker turnaround is expected to reduce interest and mobilisation costs while improving capital recycling.

In parallel with its development push, Paramount is reviewing about RM900 million in non-core assets that currently generate yields of roughly 1%.

Chew said the group is pursuing a dual strategy of disposal or yield enhancement to lift returns closer to 6% over time.

The remaining campus assets, valued at about RM400 million, are undergoing a rental restructuring, which could raise yields to 3%-4% in the near term and potentially to 6% within four years if not divested earlier.

The earlier disposal of the Anson Campus generated RM75 million, with proceeds largely used to pare down borrowings.

On top of that, the group is exploring monetisation of selected hotel and retail assets to improve capital efficiency.

Chew acknowledged that demographic shifts over the longer term could alter residential demand dynamics, prompting the group to prepare for diversification beyond pure residential development over the next two decades.

However, he reiterated that property development remains a localised business where Paramount retains competitive strengths. “Property development is a very local business. We understand the authorities, the bankers and the market here.”

Meanwhile, its coworking arm Co-labs Coworking expanded into Johor Bahru with a new outlet at Mid Valley Southkey, marking its first presence outside the Klang Valley.

An upcoming flagship at Sunway Square, Sunway City in Petaling Jaya, will bring Co-labs’ footprint to 220,000 sq ft across 10 locations in the Klang Valley and Johor, strengthening its recurring income base.

With a RM1.1 billion launch pipeline, RM1.5 billion in unbilled sales and a sharper focus on asset yields, Paramount enters 2026 aiming to balance growth with capital discipline in an evolving property cycle.

 The Sun Malaysia