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Profit warning: Toivo Group Plc reduces its guidance due to the change in the market's yield requirements

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Company release, inside information, 25 November 2022 at 7.20 p.m.

Toivo Group Oyj ("Toivo" or "Company") reduces its guidance for the year 2022.

Due to the rise in market interest rates, Toivo's external valuator estimates that the yield requirements for apartments will increase in the fair value review carried out before the end of the year. Correspondingly, for example, increases in apartment rents at the turn of the year support apartment valuation levels. The company's operational processes have been implemented during the 2022 financial year almost as planned.

The estimated value change has no cash flow effect for the Company. Based on preliminary information, the possible changes in the values of real estate assets will not affect the Company's financial position and the Company will not violate the covenant conditions it has given to the financial institutions.

The company estimates that it will launch selected new real estate projects during the year 2023.

 

Previous guidance published for the year 2022

  • The company estimates the operating profit to be 22–28 million euros in the fiscal year 1.1. – 31 December 2022.
  • The company estimates the fair value of the investment properties at the end of 2022 to be approximately EUR 175 (12/2021: 97.6) million.

 

New guidance for the year 2022

  • The company estimates the operating profit to be 10–18 million euros in the fiscal year 1.1. – 31 December 2022.
  • The company estimates the fair value of the investment properties at the end of 2022 to be 160-170 (12/2021: 97.6) million euros.

 

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: Danske Bank A/S, Finland branch, +358 (0)50 575 4422

 

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 2021 was EUR 13.6 million and its operating profit was EUR 15.8 million.

 

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