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Introduction & Market Context
Toivo Group Plc (HEL:TOIVO) presented its Half-Year Review on August 6, 2025, highlighting a significant improvement in profitability despite revenue challenges. CEO Markus Myllymäki and CFO Samuli Niemelä outlined the company’s performance for the first six months of 2025, emphasizing the beginning of a real estate market upswing and growing international investor interest in residential and social infrastructure properties.
The Finnish real estate developer reported that international investors are showing strongest interest in logistics and residential properties, with social infrastructure properties also gaining traction. According to the presentation, commercial properties, offices, and hotels remain less attractive to investors in the current market environment.
As shown in the following chart of investor interest across property types:
Executive Summary
Toivo Group reported an operating profit of €3.5 million for H1 2025, representing a 47% increase compared to the same period in 2024, despite an 18% decline in revenue to €23.2 million. The company’s profit for the financial year surged 272% to €1.6 million, translating to earnings per share of €0.03, up from €0.00 in the previous year.
The company has maintained a stable economic occupancy rate of 92.3%, slightly up from 92.1% in H1 2024. Total (EPA:TTEF) equity increased by 4% to €71.2 million, while total assets grew by 5% to €169.8 million. However, the value of Toivo’s project portfolio decreased significantly by 52% to €328 million from €680 million in the prior year.
The key financial figures from the first half of 2025 are summarized in the following table:
Quarterly Performance Highlights
Toivo’s financial performance for the first half of 2025 showed mixed results. While revenue declined by 18% to €23.2 million, total revenue and investments increased by 19% to €35.7 million. The company’s operating profit improved substantially, rising 47% to €3.5 million, with profit for the financial year growing by 272% to €1.6 million.
During the period, Toivo signed contracts for 100 new apartments (down from 173 in H1 2024) and began construction of 136 apartments and 2 assisted living facilities. Only 15 apartments were completed during the period, compared to 159 in the previous year, reflecting a shift in the company’s development timeline.
The company’s balance sheet remained relatively stable with the equity ratio at 42.6%, slightly below the 43% reported in H1 2024, while the loan-to-value ratio increased to 54.9% from 51.3%. Non-current net assets per share improved by 5.3% to €0.99.
A more detailed breakdown of Toivo’s financial metrics is presented in the following comprehensive table:
Strategic Initiatives
Toivo’s business model focuses on maintaining a billion-euro project portfolio across the entire real estate value chain, with an emphasis on apartments and social infrastructure properties. The company targets 15% project profitability and aims to achieve cyclical resilience through its diversified approach.
The company’s vertically integrated business model is illustrated in the following graphic:
A significant strategic development has been Toivo’s expansion into social infrastructure properties. On July 3, 2025, the company announced upcoming public infrastructure properties and a letter of intent with Cofinimmo (EBR:COFB), a major international real estate asset manager. The partnership involves tenants including Attendo, Esperi, and Norlandia Päiväkodit, with construction of five sites planned for the second half of 2025.
The details of this strategic initiative are shown in the following slide:
Toivo has also made substantial progress with its E-Heat data center heat recovery project. The company is currently negotiating with 8 data centers representing approximately 20 MW of heat production, while 7 data centers with 8.5 MW of heat production are already in the ownership phase. Additionally, 6 data centers with 7.5 MW have been approved for Fingrid’s demand response market, and agreements have been signed with 6 district heating customers.
The current state of the E-Heat project is detailed in this progress chart:
The company has established significant relationships with international real estate asset managers, completing transactions worth approximately €160 million since 2024. These partnerships include major players such as Nuveen (with approximately $147 billion in assets under management), NIAM, Sirius, NNREP, and Cofinimmo.
The following table outlines Toivo’s transactions with international real estate asset managers:
Forward-Looking Statements
For the full year 2025, Toivo expects an operating profit of €6-11 million, maintaining the same guidance for operating profit without changes in values of investment properties. The company’s medium-term targets include average annual growth of 20% in both volume and operating profit, with an equity ratio target of over 40%.
Regarding dividends, Toivo aims to distribute 30-50% of the profit for the financial year, taking into account the company’s investment needs and financial position. The company has stated its goal of maintaining a growing dividend policy.
Based on the current stock price of €0.992 (up 0.4% on the day of the presentation) and the company’s improved profitability metrics, Toivo appears to be successfully navigating the changing real estate market conditions despite the revenue challenges faced in the first half of 2025.
Full presentation:
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