Toivo Group Plc has achieved a return on equity of over 30% through its residential real estate business’ strategy
Press release 6.6.2022 at 2:00 p.m.
A private housing investor generally has three options for residential real estate investment. These options are direct apartment investment, real estate funds or real estate investment companies listed on the stock exchange.
In 2020, Finland’s largest residential real estate funds reached a return on equity of about 5–6% in their real estate investment activities. There is naturally a lot of site- and investor-specific variability in return on equity from direct apartment investment. Direct apartment investments have typically led to, at best, a return on equity of 15–20% annually.
The return on equity of Toivo Group Plc (“the Company” or “Toivo”) for the financial year of 2021 is about 31%.
Toivo has achieved exceptional returns in residential real estate investment by combining three sources of returns in its business: 1) the development margin from developing properties, 2) the construction margin from building houses and 3) the ownership margin from owning properties. In accordance to its strategy, Toivo is a developer, builder and owner of properties, all in one package.
You can learn more about Toivo’s business model and approach to investing in residential real estate markets from the link below, where CEO Markus Myllymäki goes over Toivo’s activities in a video presentation:
https://www.inderes.fi/fi/videot/toivo-sijoituskohteena-sijoittajapaiva-2352022
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.