SATO Corporation Interim Report 1 January–31 March 2026: SATO’s growth continues

SATO Corporation, Interim Report 8 May 2026 at 9:00 am EET

SATO Corporation Interim Report 1 January–31 March 2026: SATO’s growth continues

This is a summary of SATO’s interim report for January–March, 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 – 31 Mar 2026 (1 Jan – 31 Mar 2025)

• The economic occupancy rate was 95.3% (95.0).
• Net sales totalled EUR 80.1 million (77.2).
• Net rental income was EUR 46.2 million (46.8).
• Profit before taxes was EUR 17.1 million (18.3).
• The unrealised change in the fair value of investment properties
  included in the result was EUR 1.0 million (1.4).
• Housing investments amounted to EUR 105.5 million (3.9).
• Invested capital at the end of the review period was EUR 4,903.9 million (4,687.6).
• Return on invested capital was 3.1% (3.3).
• Equity was EUR 2,680.4 million (2,615.1) or EUR 31.57 per share (30.81).
• Earnings per share were EUR 0.16 (0.17).
• A total of 612 rental apartments (0) were acquired.
• The number of SATOhomes grew to nearly 27,500 rental apartments.

President and CEO Antti Aarnio:
SATO’s growth continued in the first quarter. At the end of March, we acquired 602 rental homes from OP Vuokrakoti Ky, which had an economic occupancy rate of over 97% last year. The properties are new, energy-efficient and in excellent condition, and they complement our already extensive housing portfolio in Finland’s largest growth centres very well. As a result of the transaction, the number of our rental homes increased to almost 27,500.

The economic occupancy rate of SATO's housing portfolio improved year on year. It was 95.3% (95.0) at the end of the period under review, excluding the impact of the homes acquired from OP. SATO’s average rent per square metre also increased during the first quarter and remained unchanged from the corresponding period last year. The average rent per square metre was EUR 18.53 per m² per month (18.53) at the end of the review period.

Net sales increased during the review period compared to the previous year and amounted to EUR 80.1 million (77.2). However, our net rental income declined, mainly due to higher heating costs compared to the reference period, and amounted to EUR 46.2 million (46.8).

Due to oversupply in the housing market, the construction of new rental homes on market terms still remains at a historically low level. The oversupply situation has been prolonged by state-subsidised rental housing production. Despite the downturn in new construction, it is important to ensure that urban development and zoning work in growth centres continue. Only in this way can we respond to the diverse housing needs of the future and restart housing production when market conditions allow.

Our customers value the smoothness of renting process and the in-person service provided by SATO staff throughout their tenancy. We measure our success in all customer interactions using SATO’s own encounter metric. Customer feedback reached an excellent level at the end of the quarter, and the rolling 12-month result of the encounter indicator was 4.23/5.

Employee satisfaction at SATO improved further. In the latest personnel survey, SATO’s eNPS, which measures employees’ willingness to recommend SATO as an employer, was 67 (63.5). We believe that high employee satisfaction strongly correlates with smooth processes and customer satisfaction.

I would like to thank SATO employees and our partners for a good start to 2026.

Antti Aarnio, President and CEO of SATO

Key figures

	1–3/2026	1–3/2025	1–12/2025
Net sales, EUR million	80.1	77.2	316.1
Number of rental apartments, pcs	27,398	25,848	26,786
Investment property, EUR million	5,344.4	4,973.9	5,237.4
Housing investments, EUR million	105.5	3.9	239.8
Average rent at the end of the review period, €/m2/month	18.53	18.53	18.48
Cash earnings (CE), EUR million	18.4	22.8	91.8
Shareholders' equity, EUR million	2,680.4	2,615.1	2,685.2

Outlook
According to the interim forecast published by the Bank of Finland in March, the increases in energy prices caused by the war in Iran are slowing the growth of the Finnish economy. GDP growth is projected to be just 0.6% this year.

The outlook is weakened particularly by the high uncertainty over the conflict in the Middle East and the continuing war in Ukraine.

In March, consumer confidence weakened to its lowest level since April 2024. Views concerning one's own finances at present and expectations concerning one's own finances and Finland's economy were very poor in March.

Consumer views also remained gloomy concerning unemployment. According to the Bank of Finland forecast, the unemployment rate for 2026 is projected to be 10.2%, but the unemployment situation is expected to perk up if the cyclical conditions improve. The unemployment rate is projected to fall to 9.7% in 2027 and further to 9.2% in 2028.

The March Economic Survey of the Confederation of Finnish Construction Industries (CFCI) projects that the number of housing starts will continue to decline this year and will remain almost unchanged at a historically low level of around 15,000 homes both this year and next. The number has already been below 20,000 homes for the past three years, while the long-term target is around 31,000–35,000 homes per year. The number of homes completed has plummeted to the 1950s level.

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

In the rental market, competition for good tenants continues in the current year and the imbalance between supply and demand will not enable any large-scale commencement of newbuild rental housing construction. In the years ahead, the imbalance of demand and supply in the rental housing market will be corrected when state-subsidised housing production decreases while at the same time demand is boosted by urbanisation and immigration.

It is of key importance to continue urban development and land use planning supporting diverse housing so that growth centres will be able to respond to residents’ diverse needs in the future, too.

The attractiveness of rental housing is increased by changes in the population’s life situations, mobility of work, and economic uncertainty. In addition, the high interest rate level and general economic uncertainty reduce willingness for large investments related to owner-occupied housing. The convenience and flexibility of rental housing are emphasised among young adults in particular.

In line with its majority shareholder’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.

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 31 March 2026
Interim Report presentation 1 January to 31 March 2026

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 nearly 27,500 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 celebrated its 85^th anniversary. www.sato.fi/en

Attachments

• Interim Report 1 January to 31 March 2026
• Interim Report presentation 1 January to 31 March 2026