Unique project development and ownership business model
Value generating real estate development process
Toivo has an experienced team who according to Toivo’s management has a strong track record in the real estate business. Toivo’s team members have been involved in the development of over 12,000 apartments and have an average experience of ten years in the real estate sector. Toivo’s average development margin for its completed residential properties is 28%1),2)
1)=The development margin is calculated by dividing the development profit with construction costs. 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)=Historical average development margin in completed residential properties owned by the company on 31 March 2021, calculated as a ratio between actualised development profit and construction costs.
An efficient and modern dwelling portfolio
According to Toivo's management the company can maintain efficient real estate management compared to typical real estate industry players thanks to its business model and modern real estate portfolio. Typically, management costs1) are on average some EUR 4.5 per dwelling square meter for a conventional operator2), while Toivo’s management costs3) were EUR 2.14) on average per square meter in 2020.
1)=Includes plot rents the share of which is EUR 0.09/m2/month.
2)=Source: Statistics Finland, Management costs of housing companies increased in 2019, June 2020.
3)=Does not include plot rents.
4)=Square area-weighted monthly maintenance cost per square meter in 2020.
5)=Dwellings under construction/in the contract phase.
6)=Dwellings under construction or the contract for the project has been signed, as well as the plots in the contracts.
Focus on a healthy housing market