After a difficult year like 2023, it seemed that real estate businesses were struggling due to market fluctuations, but a very positive indicator appeared: most of the loans of leading real estate businesses tended to decrease compared to the beginning of the year, showing that in the most difficult period, real estate businesses were still very active in paying off loans.
Right in the first days of the new year, HNX data statistics show that dozens of real estate companies have paid off their debt from bonds, mostly because businesses proactively bought back bonds before maturity and paid off bonds for bondholders.
According to the financial report for the fourth quarter of 2023, as of December 31, 2023, No Va Real Estate Investment Group Joint Stock Company (Novaland, HoSE: NVL) recorded liabilities of VND 195,874 billion, accounting for 81% of the total assets of the enterprise and down 8% compared to the beginning of 2023. Of which, financial loans accounted for VND 57,704 billion, down approximately VND 7,000 billion compared to the beginning of the period.
Novaland's debt structure is mainly in bond loans with more than VND 38,626 billion, only more than VND 9,400 billion is bank debt. However, reducing thousands of billions of dong in debt at Novaland is like "a drop in the ocean" because the company is using too much financial leverage with a "huge" amount of debt, while the financial situation of the enterprise is going backwards.
In the early days of 2024, Novaland's Board of Directors also announced that it would issue 1.37 billion shares, expected to raise about VND 13,700 billion to restructure debt and pay off payables.
Many businesses are aggressively buying back bonds before maturity.
Among the real estate enterprises with the most active debt repayment activities, we must mention Phat Dat Real Estate Development Corporation (HoSE: PDR) . At the end of 2023, this real estate enterprise will also end the series of days of having to repay its bonds.
In 2023, Phat Dat aims to handle all outstanding bonds by the end of this year, leaving only bank debt and loans from other parties. By the end of 2023, by buying back all 2 bond lots with a total issued face value of VND 800 billion, Phat Dat has officially brought the outstanding bonds of this enterprise to 0.
Accordingly, by December 31, 2023, the company's debt had decreased by 15% to VND 11,490 billion, of which other short-term debt was more than VND 3,182 billion and other long-term debt was VND 4,578 billion. The debt structure accounted for more than VND 3,104 billion of the total debt, down 30% compared to the beginning of the year.
Also active in debt repayment, total debt payable by the end of 2023 of Kinh Bac Urban Development Corporation - JSC (HoSE: KBC) decreased by 22% compared to the beginning of the year to VND 13,226 billion.
Total financial debt is over VND3,659 billion, down 52% compared to the beginning of the year, accounting for 11% of the company's capital. Of which, long-term bank loans account for over VND3,322 billion.
In 2023, Kinh Bac also actively bought back bonds before maturity. Previously, in March - April 2023, the enterprise bought back all 2,000 billion VND of 2 bond lots with codes KBCH2124002 and KBCH2124003. By the end of May 2023, the enterprise continued to buy back bonds code KBC121020 before maturity.
After the above series of transactions, Kinh Bac's outstanding bond volume has decreased to VND 1,157 billion. Regarding the KBC121020 bond lot, in early 2024, KBC said it had prepared capital to "get out of debt" on the bonds.
In addition, Kinh Bac also said that it has implemented a strategy of prioritizing the use of all financial resources to make timely payments. On the other hand, the strong increase in cash flow from industrial park business activities also contributes to creating motivation for businesses to have money to pay debts.
At Dat Xanh Group Joint Stock Company (HoSE: DXG) , total liabilities at the end of 2023 were VND 14,600 billion, down 10% compared to the end of the previous year. Of which, VND 11,600 billion was short-term debt, nearly VND 3,000 billion was long-term debt.
Dat Xanh's debt structure at the end of the fourth quarter of 2023 decreased by 8% to VND 5,289 billion. Meanwhile, taxes and other payables to the state increased by 7% to VND 798 billion.
2023 is an extremely difficult year for the company, clearly demonstrated by the need to cut 1,305 employees in 2023, from 3,773 at the end of 2022 to 2,468 at the end of 2023. The number of Dat Xanh subsidiaries has also decreased to only 84 companies, of which 8 subsidiaries operating in the real estate sector are undergoing dissolution procedures.
Vinhomes' debt-to-equity ratio is 0.31 times, with outstanding debt accounting for 12% of total capital.
In contrast to the above enterprises, Vinhomes JSC (HoSE: VHM) recorded positive debt growth after 1 year and total outstanding loans exceeded 10,000 billion VND.
Vinhomes's liabilities as of the end of 2023 were recorded at VND261,991 billion, an increase of 24% compared to the beginning of the year. Of which, growth was recorded in both short-term and long-term debts, but the company's debt was mainly short-term debt.
The company's financial debt reached VND 56,682 billion, the debt structure includes VND 14,813 billion in short-term loans and more than VND 35,689 billion in long-term loans. The company's debt is mainly loans from banks, in addition, from the bond channel, Vinhomes recorded an outstanding debt of more than VND 9,808 billion at the end of December 2023.
As of the end of 2023, Vinhomes' debt-to-equity ratio was 0.31 times. The outstanding debt accounted for 12% of the company's total capital.
The fact that real estate businesses quickly paid off their debts in the context of market interest rates showing signs of cooling down has helped the businesses themselves reduce the burden of high interest costs at the time of issuance.
In the February 2024 investment outlook report, VNDirect Securities Company said that the bottlenecks are expected to gradually loosen, thereby helping the real estate market recover starting from the second half of 2024.
"We believe that the residential real estate market has passed the most difficult period, and will show a clearer recovery from the second half of 2024," VNDirect's analysis team assessed .
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