We initiate coverage on Paragon REIT with a Neutral rating and target price of S$0.85. Initiate Coverage of Paragon REIT with NEUTRAL Paragon REIT's asset under management comprises 4 retail malls in Singapore and Australia. Paragon, the largest asset in the portfolio, contributed 62% of net property income in FY23 and accounts for 68% of total portfolio value. The sponsor is Cuscaden Peak Investments Pte Ltd, a consortium that includes Hotel Properties Ltd, Mapletree Investments Pte Ltd, and CLA Real Estate Holdings Pte Ltd, a member of Capitaland Group. Total portfolio value of Paragon REIT grew 2.0% in 1H24 The Singapore assets saw a 3.5% uplift in value, driven by positive rental reversions and full occupancy. On the other hand, value of the Australian assets fell 3.8%, impacted by higher cap rate. The sale of the Rail Mall for S$78.5m was completed in August 2024. The REIT has declared a special distribution of 1.85 cents/share from the sales proceeds....