Translation: Original published in Finnish on 10/16/2026 at 7:50 am EEST.

Toivo Group announced that it is launching a ~7.5 MEUR construction project in Oulunkylä, Helsinki, in partnership with Weston Group. The project is Toivo's and Weston's third joint apartment building in the Teininrinne area, and cooperation between the companies has gone well. The project is also another example of Toivo's ability to advance its project development portfolio despite the weak housing market. The moderately sized project partly supports our expectations for earnings growth in 2027, which is largely based on the company's current project portfolio.

The project called Oulunkylän Klassikko (“The Oulunkylä Classic”) is an energy class A apartment building comprising 19 apartments and a commercial space. According to the company, the previous projects in Teininrinne have been sold out, which in our view also supports the sales of the new project. The project is scheduled to be handed over to customers in late 2027.

Project starts pick up despite weak market, but rates act as a brake

The Oulunkylä project is Toivo's first announced project start since a busy Q2'26. The company initiated projects worth ~60 MEUR during the quarter, of which ~48 MEUR were residential properties. Housing starts included Puistolan Helmi, a ~15 MEUR residential project built for Premicon fund; Espoon Fae, a ~10.5 MEUR project for Nuveen; and the owner-occupied residential projects Poiju (~14 MEUR) and Ankkuri (~9 MEUR) in Verkkosaari. In addition, according to the project website, construction of the Kalasatama Gemma project has begun, but it has not yet been announced. The debt-free prices of Gemma's 34 apartments total ~15 MEUR, and 33 of the apartments have been reserved or sold.

In our view, the distribution of starts across owner-occupied, investor, and social infrastructure property projects demonstrates Toivo's strong competitiveness in a difficult market. In terms of value, the vast majority of Q2 starts will be completed in the fall of 2027, with the rest completed earlier the same year. Thus, together with the Oulunkylä project, they will particularly support the volumes for 2027. At the same time, rising interest rates are slowing the turnaround of the new housing market in the short term. The current project portfolio creates a solid foundation for 2027, but in our view, continued growth thereafter requires a gradual recovery of the market.