Toivo Group (TOIVO) Q3 2024 earnings summary

Executive summary

• Revenue for January–September 2024 was €32.6 million, down 3% year-over-year; operating profit fell 56% to €3.4 million.

• Net income dropped 92% to €0.3 million; EPS decreased 91% to €0.01.

• The company signed contracts for 220 new apartments and started 196 apartments during the review period.

• Toivo is preparing for a projected housing shortage in the Helsinki area, focusing investments in high-growth potential locations and sees 2025 as a strong investment opportunity.

• Property sales of nearly €30 million were completed, and contracts for new sites worth about €70 million were signed in 2024.

Financial highlights

• Fair value of investment properties declined 19% to €138.6 million.

• Economic occupancy rate decreased to 91.4% from 97.8% year-over-year.

• Total assets decreased 17% to €162.2 million; equity ratio improved to 42.8%.

• Net debt with interest reduced to €71.6 million from €99.3 million.

• Loan-to-value ratio improved to 51.7% from 57.8%.

Outlook and guidance

• Operating profit for FY 2024 expected at €4–10 million; operating profit excluding investment property value changes at €4–7 million.

• Guidance was lowered in October 2024 due to delays in project launches.

• Targeting annual development and construction volume of €100 million by 2026.

• Aims for equity ratio above 40% and significant annual NAV/share growth.