VRE - Stable retail leasing growth, stronger financial/other income drive 9M profit growth - Analyst Meeting Note & Earnings Flash
  • 2025-10-30T00:00:00
  • Company Research
  • VRE announced its Q3 2025 results with revenue of VND2.25tn (USD87mn; +5% QoQ and +8% YoY) and NPAT-MI of VND1.4tn (USD53mn; +12% QoQ and +52% YoY). 
  • For 9M 2025, VRE’s revenue was VND6.5tn (USD251mn; -4% YoY) (with 95% from retail leasing and 2% from property sales), while its NPAT-MI increased 26% YoY to VND3.8tn (USD146mn). The main drivers for YoY growth in 9M 2025 profit were a stable YoY increase in retail leasing gross profit and YoY higher financial & other income, offsetting lower property sales handovers.
  • We foresee upside potential to our 2025F NPAT-MI forecast for VRE (VND4.5tn/USD173mn; +10% YoY) as we have not factored in the potential divestment gain from the transfer of Vincom Nguyen Chi Thanh, pending a fuller review. 
  • Transfer of Vincom Center Nguyen Chi Thanh (Hanoi): As outlined in a Board of Director’s resolution dated October 28, 2025, VRE has completed transferring its shares in Vincom NCT Real Estate Company Ltd. (the entity owning Vincom Center Nguyen Chi Thanh) with total transfer value of VND3.63tn (USD140mn). According to management, the estimated pre-tax gain from this transfer is worth approximately VND1.9tn (USD73mn) and is expected to be recognized in Q4 2025 (see page 2 in our October 28, 2025, Daily News for more details).
  • Retail leasing segment: The sustained average occupany rate improvement since Q2 2024 and contribution of new malls opened in 2024 supported the YoY growth in retail leasing revenue and gross profit in Q3 and 9M 2025. Meanwhile, the lower QoQ of gross profit margin and leasing NOI margin were due to an increase in seasonal energy costs and payrolls.

+ In Q3 2025, the segment’s revenue reached VND2.1tn (USD82mn; +3% QoQ and +7% YoY) and gross profit was VND1.1tn (USD43mn; -3% QoQ and +4% YoY), while leasing NOI margin stood at 68.3% (-1.2 ppts QoQ and +0.8 ppts YoY). The average occupancy rate in Q3 2025 was 87.0%, up 0.7 ppts QoQ and 2.2 ppts YoY, while footfall at VRE’s malls increased 18% YoY in Q3 2025. 

+ In 9M 2025, the segment’s revenue totaled VND6.2tn (USD239mn; +6% YoY) and gross profit was VND3.4tn (USD132mn; +5% YoY), both completing 71% of our respective 2025F forecasts.

  • VRE added ~100,800 sqm of retail GFA in 9M 2025. In Q3 2025, VRE launched VMM Royal Island (Hai Phong; retail GFA of 47,600 sqm; secured occupancy rate of 100% in September), and VMM Ocean City (Hung Yen, retail GFA of 53,200 sqm, secured occupancy rate of 98.33% in September). Management maintains its plan to open a VCP mall – Vinh (Nghe An, retail GFA of 19,000 sqm) in Q4 2025G with secured occupancy of ~98% at end-October.
  • Currently, VRE has a total of 89 shopping malls under operation with a total retail leasing GFA of 1.89 million sqm, excluding VCC Nguyen Chi Thanh (vs 88 malls and 1.84 million sqm at end-2024). 
  • New mall opening plan for 2026G: For 2026G, management targets to open one VCP mall in Vinhomes Wonder City (Hanoi; retail GFA of 27,000sqm). 
  • Meanwhile, the construction for three new malls is planned to commence in 2026G, including: 

+ One VMM in Vinhomes Ha Long Xanh (Quang Ninh; retail GFA of 110,000 sqm).

+ One VMM in Long An (retail GFA of 70,000 sqm).

+ One VCP in Vinhomes Lang Van (Da Nang; retail GFA of 40,000 sqm). 

  • Property sales segment: The segment’s 9M 2025 revenue was VND115bn (USD8mn; -85% YoY) and gross profit was VND66bn (USD3mn; -75% YoY). 

+ Management has rescheduled the presales of commercial shophouse components at Vinhomes Royal Island and Golden Avenue projects to Q2 2026G (from end-2025 previously), while maintaining the expected handover schedule starting from 2026G.

+ In Q3 2025, VRE disbursed VND6.2tn (USD238mn) to VHM for acquiring a portion of commercial land in Vinhomes Green Paradise project (Can Gio, HCMC) for shophouse sales development, as outlined in the June 2025 Board of Director’s resolution. This comprises ~1,300 shophouse units, with presales expected to commence in 2027G.

+ Management’s guidance for new property sales for 2026-27G is broadly in line with our current forecast. 

VRE’s Q3 and 9M 2025 results

VND bn

Q1
 2024

Q2
 2024

Q3
 2024

Q4
 2024

Q1
 2025

Q2
 2025

Q3
 2025

9M
 2024

9M
 2025

9M
 2025
 YoY

2025F

9M 2025 as % of 2025F

Net revenue

2,255

2,479

2,078

2,128

2,131

2,143

2,251

6,811

6,525

-4%

8,943

73%

  • Retail leasing

1,928

1,940

1,983

2,027

2,026

2,068

2,124

5,851

6,218

6%

8,740

71%

  • Property sales 

277

467

36

60

48

12

55

779

115

-85%

203

57%

  • Others

50

72

59

41

57

62

73

181

192

6%

0

N.M.

Gross profit

1,255

1,209

1,089

1,201

1,202

1,182

1,137

3,554

3,522

-1%

4,936

71%

  • Retail leasing

1,155

1,045

1,066

1,131

1,174

1,147

1,112

3,266

3,434

5%

4,865

71%

  • Property sales 

98

156

16

70

23

21

23

270

66

-75%

72

93%


 

 

 

 

 

 

 

 

 

 

 

 

SG&A expenses

-207

-216

-248

-312

-173

-162

-141

-670

-476

-29%

-727

65%

EBIT

1,048

994

842

889

1,030

1,020

996

2,884

3,046

6%

4,209

72%

Financial income

435

420

383

547

625

677

802

1,239

2,104

70%

2,118

99%

Financial expenses

-140

-179

-244

-275

-243

-269

-350

-563

-862

53%

-916

94%

Other income

25

42

138

209

64

117

273

204

454

123%

280

162%

PBT

1,367

1,277

1,119

1,370

1,476

1,545

1,721

3,763

4,742

26%

5,691

83%

NPAT-MI

1,083

1,021

906

1,085

1,177

1,233

1,377

3,010

3,787

26%

4,496

84%

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin

55.7%

48.8%

52.4%

56.5%

56.4%

55.2%

50.5%

52.2%

54.0%

 

55.2%

 

  • Retail leasing

59.9%

53.9%

53.7%

55.8%

58.0%

55.5%

52.4%

55.8%

55.2%

 

55.7%

 

  • Property sales 

35.3%

33.5%

44.2%

116.1%

47.1%

171.5%

41.9%

34.6%

57.8%

 

35.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBIT margin

46.5%

40.1%

40.5%

41.8%

48.3%

47.6%

44.2%

42.3%

46.7%

 

47.1%

 

NPAT-MI margin

48.0%

41.2%

43.6%

51.0%

55.2%

57.6%

61.2%

44.2%

58.0%

 

50.3%

 

Source: VRE’s financial statements, Vietcap forecasts (last updated August 29, 2025)

Powered by Froala Editor