Business review, 6 November 2024 at 8:00
FINANCIAL PERIOD 1 JANUARY-30 SEPTEMBER 2024 KEY EVENTS
- Revenue EUR 32.6 (33.6) million.
- Contracts for building a total of 220 (50) apartments were signed during the period under review.
- 196 (76) apartment start-ups during the period under review.
- 165 (330) apartments were completed during the period under review.
PROSPECTS FOR 2024
- The company expects the operating profit without changes in values of investment properties for the financial year of 1 January-31 December 2024 to be EUR 4-7 million.
- The company expects the operating profit for the financial year of
1 January-31 December 2024 to be EUR 4-10 million.
CONSOLIDATED KEY FINANCIALS*
EUR thousand *Unaudited | 1 January- 30 September 2024 | 1 January- 30 September 2023 | Change, % |
| Revenue | 32,587 | 33,619 | -3% |
| Operating profit | 3,405 | 7,753 | -56% |
| Operating profit without changes in values of investment properties | 3,405 | 7,753 | -56% |
| Profit or loss for the financial year | 332 | 4,112 | -92% |
| Earnings per share (EUR) | 0.01 | 0.07 | -91% |
| Fair value of investment properties | 138,554 | 171,914 | -19% |
| Economic occupancy rate | 91.4% | 97.8% | -7% |
| Total equity | 68,500 | 74,121 | -8% |
| Total assets | 162,228 | 196,313 | -17% |
EUR thousand *Unaudited | 1 July- 30 September 2024 | 1 July- 30 September 2023 | Change, % |
| Revenue | 4,184 | 13,892 | -70% |
| Operating profit | 1,059 | 2,101 | -50% |
| Operating profit without changes in values of investment properties | 1,059 | 2,101 | -50% |
| Profit or loss for the financial year | -106 | 862 | -112% |
| Earnings per share (EUR) | 0.00 | 0.02 | -112% |
| Fair value of investment properties | 138,554 | 171,914 | -19% |
| Economic occupancy rate | 91.2% | 98.0% | -7% |
| Total equity | 68,500 | 74,121 | -8% |
| Total assets | 162,228 | 196,313 | -17% |
CEO MARKUS MYLLYMÄKI
The year 2024 has been a challenging period for property developers and property investors. At the same time, it has created new opportunities for those who dare to be bold and see the market turning.
It is possible that a housing shortage will begin in the Helsinki metropolitan area as early as 2025, which will create strong demand for new apartments and rental housing. This is an excellent time to invest, as construction costs have stabilised and the availability of resources is good.
There are clear indications of a pick-up in the rental market, and the investor market is also showing signs of recovery. This provides us with the opportunity to make long-term investments that will bear fruit in the years to come. At this time, it is important to stay sharp and swim against the tide, even though the market may feel challenging. This is precisely the time to take action and increase market share.
We have focused our investments where we see the greatest growth potential. The key to long-term success now lies in having the courage and ability to make decisions whose impact extends beyond the current horizon of uncertainty. We have an opportunity to strengthen our position in the market and simultaneously respond to the growing need for housing in the Helsinki metropolitan area.
Our company is ready to take advantage of these opportunities, and I am confident that we have the necessary resources and expertise to conduct sensible business even in the current market environment.
Development: Toivo has a strong project development portfolio, which is why the company takes a highly selective approach to new contracts. During the third quarter, the company signed contracts for two new projects in Espoo and Helsinki. The projects comprise a total of 47 apartments, and they are terraced and semi-detached house projects.
Construction: During the third quarter, Toivo began construction on 111 apartments and two properties. The company is preparing to start several construction sites by the end of 2024.
Ownership: Toivo handles lease activities and management in-house by using the company's own Asuntomestarit®. The company's economic occupancy rate fell to historic lows during the summer and autumn, but the occupancy rate has begun to improve after the period under review.
Selling: In the third quarter, the company signed two contracts on developed-for-sale projects. One is a project management contract in Helsinki's Oulunkylä district, comprising 26 apartments. The other is a new owner-occupied housing project in Helsinki's Torpparinmäki district, comprising 13 apartments.
Toivo's business is very capital-intensive, and an optimal financial structure is important for the company. The company has been successful in financing new projects in 2024. The company's debt financing consists primarily of long-term bank financing. The company's equity ratio was 42.8% and the financial loan to value (LTV) rate of its properties was 51.7%.
I would like to thank our customers, partners and employees for the past quarter.
ANALYST AND MEDIA EVENT
A public media and analyst conference in Finnish will be held on Wednesday, 6 November 2024 at 11:00 as a webcast. Use the following link to join the webcast:
https://toivo.videosync.fi/2024-q3-liiketoimintakatsaus
The review will be presented by CEO Markus Myllymäki and CFO Samuli Niemelä.
The presentation materials will be published later at: sijoittajille.toivo.fi and
sijoittajille.toivo.fi/en.
Toivo Group Plc
Board of Directors
Further information:
Markus Myllymäki
CEO
Toivo Group Plc
Tel. +358 (0)40 847 6206
markus.myllymaki@toivo.fi
Certified Adviser: Nordic certified adviser
About Toivo
Toivo is a Finnish real estate company that was founded in 2015. Its business consists of developing apartment lots, constructing housing and ownership of apartments. The Company's business model is unique as Toivo's business combines the value chain of real estate business from development and construction to ownership, management and rental of a completed property. Toivo manages the entire life cycle of residential real estate with its own team, from raw land development to renting apartments. This way Toivo is able to generate additional value to its customers, shareholders and stakeholders.
Toivo's strategy is to develop apartments in accordance with the Toivo concept. The apartments aim for a strong development margin and a stable and attractive return, and this way enable long-term ownership and the generation of higher additional value to Toivo's customers. Toivo has a knowledgeable and experienced team of experts with strong merits in the real estate business. The members of Toivo's team have been involved in the development and construction of over
17,000 apartments, and they have an average of ten years of experience.
Toivo's revenue in 2023 was EUR 43.7 million and its operating profit
was EUR -0.3 million.
