VRE reported resilient Q2 2022 results with net revenue of VND1.85tn (USD80.4mn; +35% QoQ and +22% YoY) — which was mostly thanks to retail leasing revenue increasing 46% QoQ and 33% YoY — and NPAT-MI of VND773bn (USD33.6mn; +105% QoQ and +99% YoY).

For H1 2022, VRE’s net revenue (of which the retail leasing segment accounted for 95%) was VND3.2tn (USD140mn; -14% YoY) with NPAT-MI of VND1.15tn (USD50mn; -2% YoY). VRE spent VND464bn (USD20.2mn) for a tenant support package in Q1 2022 and minimal amount in Q2 2022 vs VND424bn (USD18.4mn) in H1 2021. 

As H1 2022 NPAT-MI completed 48% of our full-year forecast, we anticipate insignificant change to our 2022F NPAT-MI forecast of VND2.4tn (USD105mn; +84% YoY). We continue to expect a significantly lower support package YoY from VRE and an ongoing recovery of tenant businesses to support H2 2022 profit growth outlook.