Strategy and financial targets

In 2019-2023, Toivo has operated with a develop, build and own business model focusing solely on housing.
Toivo has identified that:

The typical duration of the Develop phase is 2-4 years. This phase commits capital of approximately 0-5% of the total value of the project. The return on equity in Develop is 0-50%.
The typical duration of the Build phase is 1 year. This phase commits capital of approximately 20-50% of the total value of the project. The return on equity in Build is 20-50%.
The typical duration of the Own phase is over 50 years. This phase commits capital of approximately 40% of the total value of the project. The return on equity in Own is 5-10%.
In the Sell phase, the company releases capital from the properties it owns for development and construction.

Toivo has added the Sell phase to its strategy, which is all about using equity more efficiently and reallocating it to the most profitable phases. The new strategy also provides better protection against the impact of changes in interest rates, as the ratio of external debt to the volume of operations decreases.

Strategy since 2024

Development, construction, ownership and sale of residential and social properties.
Toivo only owns and builds buildings that we have developed and designed ourselves. This allows us to make the best possible contribution to building efficiency, optimal quality, productivity and salability right from the start.

Business volume:

Growing by an average of 20% annually. The volume includes both projects built directly for others,
visible in revenue, and direct investments made into the company’s own balance sheet, some of which
will be sold later.

Volume target allocation:

Approximately 0–50% for the company’s own balance sheet for privately financed rental use.
Approximately 50–100% for direct sales to end-users.

Sales:

The company actively sells properties it has developed, those under construction, and those it owns,
ranging from individual apartments to large portfolios.

Residential property criteria:

Only in the Helsinki metropolitan area, Turku, and Tampere.
Energy class A (Apartment buildings).
Standard apartment buildings and row houses.
Following Toivo’s concept and business model.

Community property criteria:

Only long-term leases exceeding 10 years.
For the best tenants in the industry.
Properties with technical construction expertise from Toivo.
Following Toivo’s concept and business model.

Financial targets 2024–2026

As part of a strategic shift published on 6 May 2025, the company is replacing the financial targets for 2024–2026, published on February 28, 2024, with new medium-term targets. The company will remove the financial targets for the year 2026 and will provide guidance for 2026 at the latest in conjunction with the 2025 financial statements.

Annual volume (revenue and investments) grows on average by 20%
Annual operating profit grows on average by 20%
Equity ratio over 40%
Dividend payments will take into account the company's investment needs and financial position. The company aims for a growing dividend. The company's goal is to distribute 30-50% of the fiscal year's profit as dividends.

The target update reflects Toivo Group's strategic focus on profitable growth, investor returns, and strengthening the balance sheet.

Business model

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Market

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