SATO Corporation Half-Year Report 1 January–30 June 2026: SATO’s steady development continued

SATO Corporation, Half-Year Report 14 July 2026 at 9:00 am EET

This is a summary of SATO’s half-year report for January–June, 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 Jun 2026 (1 Jan–30 Jun 2025)

• The economic occupancy rate was 95.3% (95.0).
• Net sales totalled EUR 162.0 million (154.7).
• Net rental income was EUR 107.0 million (104.3).
• Profit before taxes was EUR 44.9 million (45.2).
• The unrealised change in the fair value of investment properties included in the result was EUR 1.9 million (2.1).
• Housing investments amounted to EUR 116.8 million (11.9).
• Invested capital at the end of the review period was EUR 4,918.8 million (4,587.9).
• Return on invested capital was 3.6% (3.7).
• Equity was EUR 2,699.9 million (2,634.8) or EUR 31.80 per share (31.04).
• Earnings per share were EUR 0.42 (0.43).
• A total of 612 rental apartments (0) were acquired.

Summary for 1 Apr–30 Jun 2026 (1 Apr–30 Jun 2025)

• The economic occupancy rate was 95.3% (94.9).
• Net sales totalled EUR 81.9 million (77.5).
• Net rental income was EUR 60.8 million (57.5).
• Profit before taxes was EUR 27.8 million (26.9).
• The unrealised change in the fair value of investment properties included in the result was EUR 0.8 million (0.7).
• Housing investments amounted to EUR 11.3 million (8.0).
• Earnings per share were EUR 0.26 (0.25).
• The number of SATOhomes is nearly 27,500.
  

President and CEO Antti Aarnio:
The season started in March this spring, which is exceptionally early. This was reflected in a significant increase in apartment viewings in early spring. The summer season is expected to be busy.

SATO’s growth continued in the first half of the year. Completed at the end of March, the acquisition of 602 rental homes increased SATO’s net sales from the beginning of April to a total of EUR 162.0 million.

The economic occupancy rate of our entire housing portfolio improved year on year and remained at a reasonable level throughout H1. The rate was 95.3% (95.0) at the end of the period under review. SATO’s average rent per square metre increased slightly during the first half of the year. Compared with the reference period, the average rent remained unchanged. The average rent per square metre was EUR 18.52 per m² per month (18.52).

Net rental income increased, but its ratio to net sales declined, mainly due to higher heating costs incurred at the beginning of the year than in the comparison period. The oversupply in the rental housing market did not allow the costs to be transferred in full to apartment rents. Net rental income was EUR 107.0 million (104.3).

The oversupply in the rental housing market persists, but the number of empty apartments has taken a slow downturn in the Helsinki Metropolitan Area (HMA). In SATO’s other market areas, Turku and Tampere, the number of empty apartments has continued to grow and the market situation is increasingly challenging for operators in the sector.

The general uncertainty of the housing market continued due to Finland’s weak economic situation, the wars in Iran and Ukraine and the unstable trade policy situation. The uncertainty is increasing the popularity of rental housing in all income categories.

Smooth customer service in person and through digital channels has kept SATO’s customer satisfaction in a good level. The average score given by the SATO encounters indicator, measuring our success in daily encounters, was 4.2/5 at the end of the period under review.

Antti Aarnio, President and CEO of SATO

Key figures

	1–6/2026	1–6/2025	1–12/2025
Net sales, EUR million	162.0	154.7	316.1
Number of rental apartments, pcs	27,314	25,847	26,786
Investment property, EUR million	5,357.0	5,004.0	5,237.4
Housing investments, EUR million	116.8	11.9	239.8
Average rent at the end of the review period, €/m2/month	18.52	18.52	18.48
Cash earnings (CE), EUR million	35.1	31.8	91.8
Shareholders' equity, EUR million	2,699.9	2,634.8	2,685.2

Outlook
European and Finnish economic development is governed by geopolitics. The war in the Middle East and its repercussions are slowing down economic growth and accelerating inflation in the euro area. This has resulted in increases in market rates since late February. In line with market expectations, the European Central Bank raised the deposit facility rate from June onwards.

Signs of Finland’s economic growth picking up were seen momentarily in the early months of the year, but the outlook has again worsened due to energy prices, geopolitical uncertainty and higher interest rates. Several forecasting institutions have lowered their forecasts of Finland’s economic growth for this year, with the projected levels being in the 0.5–1% range. The unemployment rate has continued to deteriorate and remained above 10%, but the employment situation is expected to slowly improve as economic growth picks up.

Household savings in the euro area have remained elevated since the COVID-19 pandemic. Analysis by the Bank of Finland shows that savings have risen in the 2020s as a result of interest rates being higher than in the period of zero rates, because of a decline in real net wealth, and due to the existence of public deficits. General uncertainty has also led to an increase in savings.

Consumer confidence improved in June, but assessments concerning the current state of one’s own finances and expectations concerning the Finnish economy in a year’s time remained weak. Views on unemployment continued to be pessimistic.

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 is expected to be corrected when state-subsidised housing production decreases. The demand is also 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 reduces 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
Half-Year Report 1 January to 30 June 2026
Half-Year Report presentation 1 January to 30 June 2026

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 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

• SATO H1 2026 Half-Year Report
• SATO H1 2026 presentation material