How much money do real estate tycoons have in their "safes"?

Although the amount of money and bank deposits of real estate businesses as of September 30 has decreased compared to the beginning of the year, the interest on short-term deposits of 1-3 months or 3-12 months with interest rates of about 3-6%/year or 6-9%/year respectively is not small.

Vinhomes Joint Stock Company (stock code: VHM) recorded that as of September 30, the amount of idle money (including cash, cash equivalents, deposits and short-term investments) was VND7,549 billion, down 56% compared to the beginning of the year. Of which, bank deposits alone were VND4,154 billion.

In the third quarter alone, Vinhomes earned nearly VND1,777 billion from interest on deposits, deposits and loans, double the same period last year. This figure contributed to the after-tax profit of VND10,723 billion this quarter.

Novaland Group (stock code: NVL) has VND3,484 billion in idle cash, down 61% compared to the beginning of the year. Most of this is bank deposits, earning interest. Therefore, interest from bank deposits in the first 9 months of the year was VND158 billion, down 40% compared to the same period last year.

Dat Xanh Group Joint Stock Company (stock code: DXG) had 788 billion VND in idle cash as of September 30, down 28% compared to the beginning of the year. Dat Xanh also deposited money in banks, with income from interest and deposits in the first 9 months of this year being 52 billion VND, contributing to after-tax profit of nearly 150 billion VND.

Nam Long Investment Joint Stock Company (stock code: NLG) has VND3,506 billion in idle cash, down 26% compared to the beginning of the year. Income from interest on bank deposits and loans in the first 9 months reached VND118 billion.

Khang Dien House Investment and Trading Joint Stock Company (stock code: KDH) has VND2,334 billion in cash and cash equivalents, down 15% compared to the beginning of the year, accounting for 10% of short-term assets. Short-term deposits of 1-3 months have interest rates from 3.8% to 5.5%/year, however, interest on 9-month deposits is about VND31 billion.

Các đại gia bất động sản có bao nhiêu tiền trong két sắt? - 1 — Many real estate businesses have thousands of billions of dong deposited in banks (Illustration: Tien Tuan).

Quoc Cuong Gia Lai Joint Stock Company (stock code: QCG) as of September 30 had about VND30 billion in cash and cash equivalents, down about 60% compared to the beginning of the year. Or Phat Dat Real Estate Development Joint Stock Company (stock code: PDR) had about VND68 billion in idle cash, down 75% compared to the beginning of the year. Both Phat Dat and Quoc Cuong Gia Lai had cash accounting for less than 0.4% of short-term assets.

Meanwhile, Construction Development Investment Joint Stock Corporation (DIC Corp - stock code: DIG) has 403 billion VND in idle money, accounting for nearly 4% of short-term assets.

According to accounting principles, cash and cash equivalents include cash in hand, bank deposits and short-term investments with original maturities of no more than 3 months, high liquidity, easily convertible into known amounts of cash and with little risk of conversion into cash.

Money plays a role in payment, capital management, cash flow management, salary and employee benefits expenses or responding to emergency situations... However, these amounts are accounted for at a time-based basis so they can change over time and can be adjusted according to the business situation of the enterprise.

Idle money is even used as collateral for loans and guarantees at banks. As of September 30, cash and cash equivalents used by Novaland as collateral for loans and guarantees were VND132 billion; money being managed by lending banks for each project's intended use was VND958 billion. These figures are much lower than at the beginning of the year.

Source