SATO Corporation’s Financial Statements Release 2025: SATO recorded profitable growth in a challenging market environment

SATO Corporation, Financial Statements Release 2025, 6 February 2026 at 09:00 am

This is a summary of SATO’s financial statements release for 2025, which has been published in full as an appendix to this release and at www.sato.fi/en. The full-year figures presented in the financial statements have been audited.

Summary for 1 Jan–31 Dec 2025 (1 Jan–31 Dec 2024)

• The economic occupancy rate was 95.4% (95.5).
• Net sales increased and totalled EUR 316.1 million (304.1).
• Net rental income increased and was EUR 222.9 million (214.4).
• Profit before taxes improved and was EUR 106.1 million (105.4).
• The unrealised change in the fair value of investment properties included in the result was EUR 8.9 million (12.0).
• Housing investments amounted to EUR 239.8 million (48.6).
• The invested capital was EUR 4,806.4 million (4,569.9).
• Return on invested capital was 4.0% (4.0).
• Earnings per share were EUR 1.00 (1.04).
• The Board of Directors proposes to the Annual General Meeting that EUR 0.25 per share is paid in dividends for the 2025 financial year (EUR 0.00/share for 2024).

Summary for 1 Oct–31 Dec 2025 (1 Oct–31 Dec 2024)

• The economic occupancy rate was 95.9% (95.7).
• Net sales were EUR 80.6 million (77.1).
• Profit before taxes was EUR 25.7 million (21.9).
• The unrealised change in the fair value of investment properties included in the result was EUR 1.6 million (1.1).
• Investments in rental apartments were EUR 20.4 million (16.9).
• Earnings per share were EUR 0.24 (0.20).

President and CEO’s review
Oversupply in the rental housing market persisted in 2025. What we had previously anticipated to be only a temporary situation proved over the past year to be a longer-term challenge for us operating in rental housing. Intense competition for good residents continued in all of SATO’s market areas.

Considering the circumstances, we succeeded well over the year. Our economic occupancy rate was 95.4% (95.5) and the average monthly rent of SATOhomes rose to EUR 18.48 (18.40). Our operating profit increased to EUR 188.4 million (185.6). The fair value of our investment properties increased to EUR 5,237.4 million (4,971.4).

We have strengthened SATO’s profitability through consistent, long-term efforts focused on core processes. This enabled an investment in nearly 1,000 homes made in July. We acquired 16 properties, which are of high quality and in line with our targets in terms of energy class from the OP-Rental Yield Fund. The acquisition increased the total number of SATOhomes to approximately 27,000.

There was no new SATO properties completed during the year under review, and there are no newbuilds currently under construction. We have, however, continued the development of our plot reserves in all of our operating areas so that, once permitted by the market situation, we will also be able to launch newbuild production and construct rental homes for the needs of growing and internationalising growth centres. Until then, we are exploring further opportunities for profitable growth and focusing on maintaining our existing housing stock and improving its energy efficiency. Last year’s most significant energy investments took place in the Helsinki Metropolitan Area. We switched to geothermal heat at five properties and installed solar power systems for 60 SATO buildings.

In early 2025, we opened the SATO webshop for rental homes and scaled it up over the year. At year-end, one in ten of SATOhomes was already being rented through the online shop. Our investments in round-the-clock self-service have received a great welcome. It is important for us and our residents that, also when renting a home through the webshop, a future resident will encounter a professional SATO staff member in person as part of the renting process.

In 2025, we celebrated SATO’s 85th anniversary. As a stable, responsible and long-serving operator in our sector, we are looking to the future with confidence: there will be demand for rental homes in growth centres with good transport links and close to services going forward, too.

My warmest thanks go to SATO staff members, our partners and our customers living in SATOhomes for their excellent cooperation.

Antti Aarnio, President and CEO

Key figures

	2025	2024
Total number of apartments, units	26,786	25,849
Investment properties, EUR million	5,237.4	4,971.4
Housing investments, EUR million	239.8	48.6
Apartments under construction, units	0	0
Purchased apartments, units	968	33
Average rent of rental apartments, €/m2/month	18.48	18.40
Cash earnings (CE), EUR million	91.8	88.2
Equity, EUR million	2,685.2	2,599.8
Personnel at the end of the year	314	300

Outlook
In the operating environment, SATO’s business activities are mainly affected by consumer confidence and purchasing power, rent and price development for apartments, maintenance costs, and the competitive situation and interest rate level.

Despite expectations, the Finnish economy did not take an upward turn in 2025. Uncertainties relating to trade policy and the weak employment situation have maintained consumer caution. Uncertainty is also increased by the challenging security situation. According to the December forecast of the Bank of Finland, growth in 2025 is likely to be just 0.2%. In 2026, growth will accelerate to 0.8% and in 2027 to 1.7%. In the final year of the forecast period in 2028, growth will level out at 1.5%.

Private consumption has been curbed by low consumer confidence in the economy, but consumption is expected to perk up and take an upturn in 2026, when real earnings growth of wage and salary earners gathers pace and the labour market strengthens. Consumption growth is projected to strengthen further in 2027–2028. According to the Bank of Finland forecast, investments will grow thanks to factors including green investments. Housing construction will, however, remain subdued in the immediate years ahead. The difficult market situation holds back newbuild housing construction, but this will be eased gradually once consumer incomes and confidence grow.

The Finnish economy will continue its slow recovery. Households are regaining a balance in their finances, and consumption will begin to grow. Exports and investments will also be gradually revived. Once economic growth steps up, employment will also be boosted. The weak employment situation is anticipated to improve slightly during 2026.

Construction of newbuild homes remains at a low level. Largely due to an increase in the volume of interest-subsidised housing construction, there has, however, been a slight upturn in projects started. At year-end, there were still around 4,500 apartments intended for rental housing under construction in the Helsinki Metropolitan Area. The number of apartments completed contracted clearly in 2025, but the newbuild construction volume of previous years, which exceeds the long-term housing demand, is maintaining an oversupply of rental homes in the growth centres. The shrinking of the oversupply has been slower than anticipated, and competition for good tenants continues.

Dense urban housing is still becoming increasingly popular, and there is demand for rental homes in growth centres with access to good public transport links and close to services. The demographic change coupled with the price development create a stable foundation for rental housing demand, especially in the Helsinki Metropolitan Area, Tampere and Turku.

Urbanisation, the income development of wage and salary earners, pent-up housing demand of households and the decrease in new housing construction will increase housing demand going forward. The housing allowance policy changes may, however, steer consumers towards looking for more affordable housing. The flexibility and convenience of rental housing also make it more attractive as an option for those who have previously opted for home ownership.

With greater choice available for those looking for a home, the role of a successful customer experience has become even more important. SATO is strongly invested in increasing its presence close to customers and in digital services.

In line with its majority shareholder Balder Finska Otas AB’s operating model, SATO Corporation will not publish guidance on its 2026 earnings. The parent company of Balder Finska Otas AB is Fastighets AB Balder, which is quoted on the Stockholm Stock Exchange.

Annual General Meeting 2026
The Annual General Meeting of SATO Corporation will be held in Helsinki on Thursday, 19 March.

Financial publications in 2026
Publication dates for interim reports and the half-year financial report:

8 May 2026           Interim report 1-3/2026
14 July 2026         Half-year financial report 1-6/2026
23 October 2026   Interim report 1-9/2026

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

Attachments:
Annual Report 2025
Financial Statements presentation 2025
Financial Statements as an XHTML file

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

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 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 celebrated its 85th anniversary. www.sato.fi/en

Attachments

• SATO Annual Report 2025
• SATO Financial Statements presentation material 2025
• 7437009ELUGUOA45V564-2025-12-31-0-en