SATO Corporation Interim Report 1 January–30 September 2025: Portfolio investment boosts SATO’s profitable growth

SATO Corporation, Interim Report 28 October 2025 at 9:00 am EET

This is a summary of SATO’s interim report for January–September, which has been published in full as an appendix to the release and at www.sato.fi/en. The figures in the report are unaudited.

Summary for 1 Jan – 30 Sep 2025 (1 Jan – 30 Sep 2024)

• The economic occupancy rate was 95.2% (95.4).
• Net sales totalled EUR 235.5 million (227.0).
• Net rental income was EUR 166.2 million (160.5).
• Profit before taxes was EUR 80.3 million (83.5).
• The unrealised change in the fair value of investment properties included in the result was EUR 7.3 million (10.8).
• Housing investments amounted to EUR 219.4 million (31.7).
• Invested capital at the end of the review period was EUR 4,864.2 million (4,694.3).
• Return on invested capital was 4.0% (4.1).
• Equity was EUR 2,663.3 million (2,583.7) or EUR 31.37 per share (30.44).
• Earnings per share were EUR 0.76 (0.84).
• A total of 968 rental apartments (19) were acquired and 0 (160) completed.
• Renovation of 0 apartments (56) were completed.
• 0 rental apartments (189) were under construction.
  
  

Summary for 1 Jul – 30 Sep 2025 (1 Jul – 30 Sep 2024)

• The economic occupancy rate was 95.8% (95.9).
• Net sales totalled EUR 80.9 million (76.5).
• Net rental income was EUR 61.9 million (59.3).
• Profit before taxes was EUR 35.1 million (32.5).
• The unrealised change in the fair value of investment properties included in the result was EUR 5.2 million (4.0).
• Housing investments amounted to EUR 207.5 million (8.9).
• Earnings per share were EUR 0.33 (0.31).
• A total of 968 rental apartments (0) were acquired and 0 (68) completed.
• Renovation of 0 apartments (0) were completed.
• 0 rental apartments (189) were under construction.
• The number of SATOhomes grew to nearly 27,000 rental homes.
  
  

President and CEO Antti Aarnio:

In line with the preceding quarters, Q3 was challenging and an exceptional oversupply persisted in the rental market throughout the reporting period.

We continued to implement our profitable growth strategy in July by investing in existing housing stock rather than in newbuild construction: We acquired almost 1,000 apartments from the OP-Rental Yield Fund. With a total of 16 residential properties added to SATO’s portfolio, the company now owns nearly 27,000 rental homes.

SATO’s economic occupancy rate remained stable in a challenging market situation. The occupancy rate declined slightly year on year and was 95.2% (95.4). The average rent per square metre increased compared with the corresponding period last year and was EUR 18.51 per m² (18.38) at the end of the review period.

July was the busiest month in Q3, and the number of contracts we signed reached a record high. The popularity of rental housing remains strong, with over 50 per cent of households living in rental homes in Helsinki, Tampere and Turku.

SATO’s sustainability management was ranked number one in European comparison in the Global Real Estate Sustainability Benchmark (GRESB) published after the reporting period.

Key figures

	1–9/2025	1–9/2024	1–12/2024
Net sales, EUR million	235.5	227.0	304.1
Number of rental apartments, pcs	26,787	25,714	25,849
Investment property, EUR million	5,215.3	4,953.3	4,971.4
Housing investments, EUR million	219.4	31.7	48.6
Under construction, pcs	0	189	0
Average rent at the end of the review period, €/m2/month	18.51	18.38	18.40
Cash earnings (CE), EUR million	64.3	60.2	88.2
Shareholders' equity, EUR million	2,663.3	2,583.7	2,599.8

Events after the review period

SATO’s sustainability management was recognised at a top European level in the results published by the Global Real Estate Sustainability Benchmark (GRESB) in October. The company received the highest possible score in GRESB’s Management component and ranked first among more than a thousand evaluated European real estate companies.

Outlook
The trade policy uncertainty experienced in early 2025 has receded following the trade deal concluded between the United States and the EU, even though the deal meant higher tariffs imposed on exports from the euro area to the United States.

Due to the weak performance in the early months of the year, Finland’s economy is expected to only grow by 0.3% this year. Economic growth is slowed down by the US tariff increases and by the general uncertainty. Growth is projected to accelerate to 1.3% in 2026 and further to 1.7% in 2027. Weak consumer demand of households will be gradually picked up by factors including increases in wages and salaries and moderate inflation, but the Ministry of Finance forecasts that employment will not turn to growth until in 2026–2027.

The economic uncertainty and the shadow cast over the economy by the rapid trade and geopolitical changes are still slowing down recovery in construction. In addition, the number of unsold new homes remains at a high level.

In the rental market, competition for good tenants continues and the imbalance between supply and demand is unlikely to enable any large-scale commencement of newbuild rental housing construction next year, either.

According to the September business cycle review of the Confederation of Finnish Construction Industries, housing construction growth is anticipated to remain at 1% this year but to reach a higher figure next year. The recovery of the housing market is, however, still incomplete, and there are no guarantees of growth.

In the rental market, the imbalance between demand and supply will be corrected by the present low rate of newbuild construction, the contraction of state-subsidised housing production, urbanisation and immigration. The oversupply has slowly begun to decrease in the Helsinki Metropolitan Area since the first half of the year.

A recent survey commissioned by SATO shows that the appeal of rental housing is growing across all age groups. In an uncertain economic and employment situation, rental housing is regarded as a safer and more flexible option from the cost management perspective. Towards the end of the decade, new rental homes will be required to support economic growth, urbanisation and growing immigration in locations with good access to public transport and services.

In line with its majority shareholder’s operating model, SATO Corporation will not publish guidance on its 2025 earnings. The parent company of Balder Finska Otas AB is Fastighets AB Balder, which is quoted on the Stockholm Stock Exchange.

For more information, please contact:
CEO Antti Aarnio, tel. +358 20 134 4200, firstname.lastname@sato.fi
CFO Markku Honkasalo, tel. +358 20 134 4226, firstname.lastname@sato.fi

Enclosures
Interim Report 1 January to 30 September 2025
Interim Report presentation 1 January to 30 September 2025

Distribution
Euronext Dublin, main media, www.sato.fi/en

SATO Corporation

SATO Corporation is an expert in sustainable rental housing and one of Finland’s largest rental housing providers. SATO owns around 27,000 rental homes in the Helsinki Metropolitan Area, Tampere and Turku.

SATO aims to provide an excellent customer experience and a comprehensive range of urban rental housing alternatives with good access to public transport and services. We promote sustainable development and work in open interaction with our stakeholders.

SATO invests profitably, sustainably and with a long-term view. We increase the value of our assets through investments, divestments and repairs. In 2025 SATO celebrates its 85^th anniversary. www.sato.fi/en

Attachments

• SATO Q3 2025 Interim Report
• Interim report Q3 2025_presentation material