Business Review, 15 May 2024 at 8:30

FINANCIAL PERIOD 1 JANUARY–31 MARCH 2024 KEY EVENTS

• Revenue EUR 10.3 (13.6) million.
• Contracts for building a total of 0 (0) apartments were signed during

the period under review.

• 0 (0) apartment start-ups during the period under review.
• 72 (91) 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 6–12 million.

• The company expects the operating profit for the financial year of 1 January–31 December 2024 to be EUR 8–14 million.

CONSOLIDATED KEY FINANCIALS*

CEO MARKUS MYLLYMÄKI

Our view is that the business environment for property developers and construction companies is becoming favourable. We expect housing construction to resume on a large scale in spring 2025. We want to start investing before the rest of the market to ensure that we can take advantage of the lowest investment costs while we are still in 2024.

Toivo operates in a cyclical industry. We want to capture market share in the current market situation by moving earlier than other companies in our industry. We curbed our investment activity while the market was in a downturn. We will start investing in the rising market before the rest of the industry. The right timing, creativity and new business models enable us to achieve the highest development margins in all stages of the cycle.

During the first quarter, we made preparations to launch projects against the tide during 2024. We started portfoliosales, financing negotiations, procurement and production preparations related to the new projects.

The first quarter of 2024 was typical for our company in a challenging market. We focused on sharpening and clarifying our business model of development, construction, ownership and selling.

DEVELOPMENT: The company has a strong project development portfolio, which is why we did not sign new contracts on new properties. 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.

CONSTRUCTION: The company did not start any new construction sites during the period under review.

OWNERSHIP: Toivo handles lease activities and management in-house using the company’s own Asuntomestarit®. The company carried out rent increases of 4–5% in autumn 2023. The rent increases and the large number of completed apartments are currently reflected in a declining occupancy rate, but a significant improvement in the occupancy rate has already been seen in April, which indicates that the economic occupancy rate in Q2 will be 94–96%. The company hopes that the reforms to the housing allowance system will have a neutral impact on Toivo’s housing portfolio.

SELLING: On 8 May 2024, the company issued a release on the sale of its family partment portfolio. The company also has other negotiations under way regarding the sale of properties that have already been completed or are currently under construction. We expect to see progress in these negotiations in 2024.

Toivo’s business is very capital-intensive, and an optimal financial structure is important for the company. The company’s debt financing consists primarily of long-term bank financing. The company’s equity ratio was 36.48% and the financial loan to value (LTV) rate of its properties was 63.2%.

I would like to thank all customers, partners and Toivo employees for a good start to 2024.

ANALYST AND MEDIA EVENT

Toivo Group Plc is organising an analyst and media event in Finnish on Wednesday, 15 May 2025 at 11:00 a.m. Guests can join the event at the website https://toivo.videosync.fi/2024-q1-liiketoimintakatsaus

The results will be presented by Toivo Group’s CEO Markus Myllymäki and CFO Samuli Niemelä. 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
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.