Vietnam's major developer Novaland targets record revenue of $862 mln, skips dividends amid cash strain

Vietnam’s major property developer Novaland Group (NVL) is targeting a sharp increase in revenue to a record VND22.72 trillion ($862.43 million) this year, while keeping profit broadly flat at over VND1.85 trillion ($70.32 million), as it accelerates project deliveries despite ongoing cash flow challenges.

According to documents for its AGM scheduled on April 23, the revenue target is more than triple last year’s actual level, while the net profit target is roughly unchanged from 2025's actual tally.

The targets come amid a still-challenging property market and mark a significant improvement from earlier 2025 scenarios that had projected losses.

Last year, Novaland posted losses of around VND1.8 trillion ($68.34 million) in the first nine months, before a surge in fourth-quarter profit of nearly VND3.64 trillion ($138.13 million) lifted the company into the black for the full year.

The turnaround was largely driven by a reversal of provisions related to land-use fees at the Lakeview City project in Ho Chi Minh City, rather than core operations.

Project handovers to drive revenue

Novaland said revenue growth this year will be supported by accelerated construction and handovers at key projects including Aqua City, NovaWorld Phan Thiet, NovaWorld Ho Tram, The Grand Manhattan, Victoria Village, and Palm City.

The company also expects to issue ownership certificates at projects such as Sunrise Riverside, Kingston Residence, The Sun Avenue, Lucky Palace, Sunrise City, Orchard Garden, Palm City, Tresor, Golden Mansion, and Garden Gate.

Despite returning to profit in 2025, Novaland said cash flow remains under pressure, with several debts yet to be repaid. As a result, the board has proposed no dividend payments for both 2025 and 2026.

The company said its comprehensive restructuring has largely completed the first phase, with improvements in financial position, governance, and project progress. It aims to finalize restructuring in 2026 and gradually return to a growth trajectory.

Up to 800 million shares in private placement

Novaland is also seeking to raise capital through multiple channels.

The company plans to continue pursuing a previously announced private placement, increasing the maximum offering size to 800 million shares, equivalent to VND8 trillion ($303.76 million) at par value.

The issue price will be set at no lower than the average closing price of NVL shares over 30 trading sessions after approval, subject to adjustment.

A separate plan to issue shares in exchange for bond debt has yet to gain sufficient bondholder approval and is expected to be revisited in 2026.

In 2025, Novaland also raised VND2.5 trillion ($94.91 million) through convertible loans with a three-year tenor and is continuing to explore similar funding options this year.

Earlier plans to issue 350 million shares privately were delayed as the company continues to seek long-term strategic investors.

Regarding its international bonds worth over $300 million, carrying a 5.25% coupon, the company plans to seek shareholder approval for further restructuring, including extending interest payments and pushing out maturities by one year.

Some foreign bondholders have already converted debt into equity. Most recently, Novaland approved issuing nearly 2.48 million shares to a foreign investor to convert 15 bonds worth VND84.2 billion ($3.2 million) on March 31, 2026. Earlier, in December 2025, four foreign investors received 20.75 million shares in exchange for 133 bonds worth VND747 billion ($28.36 million).

Novaland also plans to restructure its board of directors, proposing a five-member board including one independent director, with elections to replace three members whose terms expire this year.