Toivo Group Plc estimates its occupancy rate in H1/2022 to be 98.8%
Press release 22 June 2022 at 3:30 p.m.
During 2021 and early 2022, there has been intensive public coverage of the situation in the rental housing market. The rental housing market situation in the Helsinki metropolitan area has been followed with great interest.
Some investors have also expressed concerns about the occupancy rate of rental apartments, which has been reported to have fallen. Its future outlook has also been subject to uncertainties. The occupancy rates of listed housing investment companies reporting occupancy rates have been 91.9–97 per cent in 2022.
The occupancy rate of Toivo Group Plc (“the Company” or “Toivo”) is estimated to be 98.8%. We also see a strong occupancy rate as an indication of the strength of our strategy in the changing housing market.
On average, Toivo’s apartments meet the following criteria:
- Relatively new residential properties
- The average size of the apartments is approximately 42 m2
- 98 per cent of our properties are located in the Helsinki metropolitan area, Turku or Tampere
- The average apartment rent is approximately EUR 825
Toivo competes with other housing providers for the best tenants. Some of the vacant apartments are decades old and do not fully meet the housing construction criteria applicable today. Based on Toivo’s experiences, changes in the equipment and condition of the apartments are not fully reflected in the rents, and we believe that new apartments with modern equipment will become more popular. New and well-equipped apartments can have an advantage in the rental business if they are offered for rent at a suitable price. The average price level of Toivo’s housing stock and the high occupancy rate have a clear causal relation.
Toivo currently has over 1,800 apartment projects in its project development portfolio. Our goal is to start the projects during 2022–2024. Toivo estimates a growing need and demand for the apartments in its projects based on the favourable occupancy rate and the feedback received from customers.
Toivo Group Plc
Further information
Markus Myllymäki
CEO
Toivo Group Plc
Tel. +358 40 847 6206
markus.myllymaki@toivo.fi
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.