Business review, 7 May 2025 at 8:00

FINANCIAL PERIOD 1 JANUARY-31 MARCH 2025 KEY EVENTS

• Revenue EUR 11.5 (10.3) million.
• Contracts for building a total of 81 (0) apartments and one parking facility were signed during the period under review.
• 124 (0) apartment and one parking facility start-ups during the period under review.
• 39 (72) apartments were completed during the period under review.

PROSPECTS FOR 2025

• The company expects the operating profit for the financial year of 1 January-31 December 2025 to be EUR 6-11 million.
• The company expects the operating profit without changes in values of investment properties for the financial year of 1 January-31 December 2025 to be EUR 6-11 million.

CONSOLIDATED KEY FINANCIALS*

* The portfolio includes those projects for which the company has the right to purchase the related land areas under pre-agreed conditions, such as the fulfilment of certain criteria like zoning. The value is based on management’s view of the market value of these projects when completed, assuming that all projects in the portfolio are realized. There is a risk associated with the projects that they may not achieve legally binding zoning or building permits, or that the confirmed zoning or building permit does not allow for the implementation of a project as valuable as initially estimated.

CEO MARKUS MYLLYMÄKI

The year 2025 has begun with encouraging signs. Despite a challenging operating environment, we are increasingly seeing signs of market stabilization. The decline in interest rates, the slowdown in inflation, and the gradual return of consumer confidence are laying the groundwork for more sound decision-making in construction, investment, and home ownership.

The low level of new construction has led to a situation where a structural housing shortage is forming in the long term, particularly in areas experiencing strong net migration. We believe that housing demand, especially in the Helsinki metropolitan area, will strengthen significantly in the coming years.

The turnaround we anticipated in the rental market has not yet fully materialized, but we expect it to take place between 2025 and 2026. We are prepared for this development both in terms of our product and our operating model. Our in-house rental operations continue to improve efficiency, and we expect our occupancy rate to increase during 2025.

Financially, we are on solid ground. Revenue in Q1 grew by 12%, and the operating profit increased significantly compared to the comparison period. Our equity ratio was 46.0 percent, and our loan-to-value (LTV) ratio was 45.6 percent, indicating a strong financial position. Our balance sheet enables sustainable growth without excessive debt.

Operationally, we made progress across all key areas:

In development, we signed agreements for 81 new apartments and one parking facility

In construction, we launched the construction of 124 apartments and one parking garage

In ownership, 15 apartments were completed

In sales, we signed two new sales agreements for projects in the Helsinki area and agreed with Nuveen on the construction of one new property as part of the approximately €42 million portfolio agreement announced in 2024

Toivo’s strength lies in its comprehensive control of the value chain. We have a clear focus: we develop, build, manage, own, and sell projects profitably, cost-effectively, and responsibly. The transition to the main list, for which preparatory work has been ongoing since 2022, will enable us to grow, gain visibility, and broaden our investor base.

Finally, I would like to warmly thank our customers, partners, and employees for their contributions during the first quarter. We have all the foundation to seize the opportunities ahead and to build a sustainable future.

MEDIA AND ANALYST CONFERENCE

A public media and analyst conference in Finnish will be held on Wednesday 7 May 2025 at 11:00 as a webcast. Use the following link to join the webcast:
https://player.videosync.fi/toivo/2025-q1-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 2024 was EUR 39.8 million and its operating profit was EUR 4.5 million.