Profit warning: Toivo Group Plc is lowering its guidance for 2023 due to a change in market yield requirements
Stock exchange release, inside information, 24 January 2024 at 5:55 p.m.
Profit warning: Toivo Group Plc is lowering its guidance for 2023 due to a change in market yield requirements
Toivo Group Plc (hereinafter referred to as “Toivo” or “the Company”) has lowered its guidance for 2023.
Due to the rise in market interest rates, Toivo’s external valuator estimates that the yield requirements of apartments will increase in the fair value review carried out at the turn of the year.
Fair value of Toivo´s investment properties at September 30th 2023 was EUR 171,9 million. In the fair value review, the valuation of Toivo’s investment properties will decrease by approximately EUR 10,5 million (approximately 6 %).
The estimated change in valuation will not impact the Company’s cash flow. The change in the valuation of real estate assets will not affect the financial position of the Company, and the Company will not breach the covenants it has given to financial institutions.
Previous guidance for the year 2023
- The Company expects the operating profit for the financial year of 1 January–31 December 2023 to be EUR 10–17 million.
New guidance for the year 2023
- The Company’s expects that the operating profit for the financial year 1 January – 31 December 2023, excluding the change in fair values, is approximately EUR 8,5 – 12,5 million. The Company expects the operating profit for the financial year of 1 January–31 December 2023 to be EUR -2,0 – +2,0 million.
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 project development and long-term 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 properties with its own team, from raw land development to tenancy agreement negotiations and property maintenance. This way Toivo is able to generate additional value to its customers, shareholders and stakeholders.
Toivo’s strategy is to develop properties in accordance with the Toivo concept. The properties aim for a strong development margin and a stable and attractive return, and in 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 in the real estate business.
Toivo’s revenue in 2022 was EUR 20.3 million and its operating profit was EUR 15.6 million.