Toivo Group Plc’s business review 1 January–30 September 2023: Toivo’s responsiveness is visible in the figures.

Business Review, 8th November 2023 at 8:30

 

FINANCIAL PERIOD 1 JANUARY–30 SEPTEMBER 2023 KEY EVENTS

 

•        Revenue EUR 33.6 (13.3) million.

•        Operating Profit EUR 7.8 million (EUR 18.0 million). 

•        Contracts for building a total of 50 (302) apartments were signed during the period under review.

•        76 (464) apartment start-ups during the period under review.

•        330 (309) apartments were completed during the period under review

 

PROSPECTS FOR 2023

 

The company expects the operating profit for the financial year of 1 January–31 December 2023 to be EUR 10–17 million.

 

 

CONSOLIDATED KEY FINANCIALS*

 

 

EUR thousand *unaudited	1 January–30 September 2023	1 January–30 September 2022	change %
Revenue	33,619	13,283	153%
Operating profit	7,753	18,015	-57%
Profit or loss for the financial year	4,112	13,400	-69%
Earnings per share (EUR)	0,07	0,25	-70%
Fair value of investment properties	171,914	160,681	7%
Economic occupancy rate	97,8%	98,7%	-1%
Total equity	74,121	70,962	4%
Total assets	196,313	183,317	7%

 

 

EUR thousand *unaudited	1 July–30 September 2023	1 July–30 September 2022	change %
Revenue	13,892	6,707	107%
Operating profit	2,101	4,697	-55%
Profit or loss for the financial year	862	3,363	-74%
Earnings per share (EUR)	0,02	0,06	-74%
Fair value of investment properties	171,914	160,681	7%
Economic occupancy rate	98,0	98,7%	-1%
Total equity	74,121	70,962	4%
Total assets	196,313	183,317	7%

 

 

CEO MARKUS MYLLYMÄKI

The company’s revenue for the first nine months of 2023 was EUR 33.6 million and its operating profit was EUR 7.8 million. This is a great achievement in the current market environment. Every Toivo employee makes me proud and grateful.

 

Approximately one year ago, the company began to react to the potential market change and its prolongation. Rent increases, ensuring financing, shifting to cash flow business and postponing investments are now bearing fruit. The company’s overall situation is good.

 

We have commenced work on the strategy and will publish the results of the updated strategy work in connection with the financial statements at the latest.

 

DEVELOPMENT: The company is prepared for the future and the opening up of the market with a project development portfolio of some 3,200 apartments, of which approximately 91% are located in the Helsinki metropolitan area. The company will implement these projects primarily as Energy Class A buildings with geothermal heating. The company will start these projects when the market conditions are more favourable.

 

CONSTRUCTION: The company did not start any new sites during July–September.

 

OWNERSHIP: With regard to lease activities and management, Asuntomestarit® have succeeded well. The company has commenced rent increases of 4–5% in autumn 2023. Toivo’s competitive, high-quality apartment product combined with the services of Asuntomestarit has proved its price-quality ratio in the challenging market.

 

Toivo’s business is very capital-intensive, and an optimal financial structure is vital for the company. The company’s financing is exclusively comprised of long-term bank financing. The company’s equity ratio was 38.9% and the financial loan to value (LTV) rate of its properties was 57.8%.

 

I would like to thank all customers, partners and Toivo employees for the past quarter.

ANALYST AND MEDIA EVENT

Toivo Group Plc is organising an analyst and media event in Finnish on Wednesday, 8 November 2023 at 1o:00 a.m. Guests can join the event at the website https://toivo.videosync.fi/liiketoimintakatsaus-q3-2023

 

The results will be presented by Toivo Group’s CEO Markus Myllymäki and VP, Finance Lauri Rekola. Presented material will be available at company website sijoittajille.toivo.fi/en after the event.

 

Toivo Group Plc

Board of Directors

 

Further information
Markus Myllymäki
CEO
Toivo Group Plc
Tel. +358 (0)40 847 6206
[email protected]

Certified Adviser: Danske Bank A/S, Finland branch.

 

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 2022 was EUR 20.3 million and its operating profit was EUR 15.6 million.