Strategy and financial targets


Toivo’s strategy is to develop properties that respond to the megatrends in the industry and that fit the Toivo concept, with the aim of achieving a strong development margin and a stable and attractive return, thereby enabling long-term ownership of the properties and the creation of higher value added for the company's customers.

The cornerstones of Toivo’s long-term strategy are:

Strong development margin add

Toivo’s projects must achieve strong development profit1) based on an independent evaluator's assessment. During the company's operating history, the average development margin2) for completed residential properties is 28%3).

1)=The development profit is calculated for an unfinished project by subtracting the estimated construction costs from the fair value of the finished property based on the appraisal document, and for a finished project by subtracting the actual construction costs from the fair value of the property based on the appraisal document.

2)=The development margin is calculated by dividing the development profit with the construction costs.

3)=Historical average development margin in completed residential properties owned by the company on March 31, 2021, calculated as a ratio between actualised development profit and construction costs.

Stable and attractive return add

Completed dwellings must produce attractive returns and offer a strong long-term opportunity for profitable rental. The average net rental income of the company's completed dwellings was 6.4%4) on March 31, 2021.

4)= average net rental income in completed rented dwellings owned by the company on March 31, 2021, calculated as the ratio between the net rental income of the properties and the investment cost.

Long-term ownership add

Toivo is in principle prepared to own a property for the next fifty years so the choices and decision made in the business and, e.g., the location of the properties must enable long-term ownership.

The Toivo concept add

The company develops its projects utilising Toivo’s own concept for residential properties.

Development with focus on megatrends add

Toivo’s projects are in line with the megatrends of the industry and respond well to them. Toivo’s management sees the net migration to growth centers, urbanisation, relative growth in the number of small households, aging and increasing importance of leisure time as the current megatrends. In its projects the company aims to respond to these megatrends by focusing its strategy on new, small, efficient and affordable housing in the Helsinki, Turku and Tampere regions.

Higher added value for customers add

Toivo tries to create added value for its customers with its properties. The company's management believes that customers compare, .e.g., the price, location, functionality, use of space, usability, overall picture and atmosphere of the dwelling when making decisions. Toivo uses its comprehensive solutions to help make customers feel at home in its properties.

Financial targets and dividend policy

  • Fair value of investment properties EUR 500 million by the end of 2026;

  • Toivo’s NAV/share is raised considerably every year; and

  • LTV ratio is below 60%.

Toivo will not pay a dividend in the coming years or the amount of dividends will be low, as any operating profit will be invested in supporting Toivo's continued growth.


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