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:

€100 million by the end of 2026. The volume includes both projects built directly for others and included in revenue, as well as investments made directly on our own balance sheet, some of which are subsequently sold.

Volume target allocation:

~50% on own balance sheet for privately financed rental use.
~50% for sale directly to end users

Sales:

Most of the production to be built on our own balance sheet will be sold at some point in the near future.

Criteria for residential property:

Helsinki Area, Turku and Tampere
Energy Class A
Ordinary apartment buildings and townhouses
Built on Toivo’s concept and business model

Criteria for social property:

Only long leases of over 10 years
For the best tenants in the industry
Properties with Toivo’s structural engineering expertise
Built on Toivo’s concept and business model

Financial targets 2024–2026

Non-current net assets per share (Net asset value, NAV/share) will increase significantly every year.
Operating profit without changes in values of investment properties EUR 20 million in 2026.
In development and construction, achieve an annual volume of EUR 100 million (revenue and investments) by the end of 2026. (Ca. EUR 63 million in 2023).
Equity ratio more than 40 %.
In dividend distribution, the company’s investment needs and financial position will be taken into consideration.

Business model

Read about our business model

Market

Read about our operating environment