VRE Update – BUY

The 2Q2026 business results were positive and in line with our projections. Growth mainly came from improved revenue and gross profit margin in the property leasing segment, increased interest from savings, and financial gains from additional deposits on new projects at the end of 2025. We maintain our full-year 2026 projections. However, we adjust our year-end 2026 target price down by 11% to VND 32,200/share due to adjustments in the absorption rate of new shophouse projects from 85% to 50% and in ASP growth rate of shophouses from 12% to 0%. Reiterate our BUY recommendation.

VRE recorded positive 2Q2026 business results with revenue of VND2,374 bn (+11% YoY) and NPAT of VND1,609 bn (+30% YoY). Growth mainly came from:
(1) Shopping mall occupancy rate increased by 2.3 percentage points YoY to 88.6% by the end of 2Q2026;
(2) Three new shopping malls opened in 2025 with a total additional GFA of 120,000 m2;
(3) Gross profit margin of property leasing increased from 56% to 61%, mainly thanks to downward adjustment of depreciation of VMM Ocean Park 1; and
(4) Financial revenue (mainly interest from deposits) rose by 25% YoY, to VND845 bn.

For 1H2026, the company also recorded positive results with revenue of VND4,667 bn (+9% YoY) and NPAT of VND 3,215 bn (+33% YoY), completing 58% of the profit target and 55% of our forecast. Growth during the period mainly came from:
(1) Property leasing segment with revenue growth of 9.3% YoY thanks to increased occupancy rate, slightly higher rental rates and the contribution of newly opened shopping malls in 2025. If we exclude the VCC Nguyen Chi Thanh for comparison of actual growth, the growth would be 11.6%;
(2) An extraordinary profit of VND185 bn from the transfer of an investment real estate (i.e. a hospital in Tan Son Nhat ward, HCMC; and
(3) Financial revenue (mainly interest from deposits) rose by 29% YoY, to VND1,680 bn.