SATO Corporation Interim Report 1 January – 31 March 2025: Tight Competition Continues – The Rental Market Remains Oversupplied

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 The figures in the report are unaudited.

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

• The economic occupancy rate was 95.0% (94.9).
• Net sales totalled EUR 77.2 million (74.7).
• Net rental income was EUR 46.8 million (43.7).
• Profit before taxes was EUR 18.3 million (19.6).
• The unrealised change in the fair value of investment properties included in the result was EUR 1.4 million (1.7).
• Housing investments amounted to EUR 3.9 million (12.8).
• Invested capital at the end of the review period was EUR 4,687.6 million (4,807.5).
• Return on invested capital was 3.3% (3.0).
• Equity was EUR 2,615.1 million (2,538.7) or EUR 30.81 per share (29.91).
• Earnings per share were EUR 0.17 (0.23).
• 0 rental apartments (92) were completed.
• The renovation of 0 apartments (56) was completed.
• 0 rental apartments (257) were under construction.
• The supply of rental homes remains high in relation to demand – competition in the market remains intense.
  

President and CEO Antti Aarnio:

Inflation remained low in Finland during the period under review, but consumer confidence is still weak and expectations for personal finances and growth of the Finnish economy are subdued. Market uncertainty was exacerbated by the tariffs announced by the United States.

The number of new rental homes constructed is now likely to have bottomed out, but recovery remains slow due to the persistent oversupply of rental homes.

SATO's economic occupancy rate improved slightly year on year during the period under review and was 95.0% (94.9). Owing to the intense competitive situation, it has not been possible to transfer the higher maintenance costs seen in recent years fully into residential rents.

February saw the successful launch of the SATO webshop for rental homes in response to growing customer demand and the market change. We are gradually stepping up our offering of homes rented through a self-service system.

We continued to invest in locally produced renewable energy: we make use of solar power and geothermal energy at our properties. Energy efficiency is also improved through repairs based on lifecycle principles.

We signed a EUR 150 million sustainability-linked loan facility with SMBC Bank EU AG. The facility is unsecured and has a tenor of three years with two one-year extension options.

SATO was ranked third in Finland's Best Workplaces 2025 listing published by Great Place to Work Finland. Moving up from the year before is proof of our success in developing SATO's company culture and employee experience.

It is SATO's 85th anniversary this year. We are celebrating our long history together with our stakeholders. I would like to thank everyone at SATO for persistence in a challenging market situation and our partners and residents for excellent cooperation.

Key figures

Outlook

According to the end-of-2024 forecast of the Bank of Finland, Finland is gradually moving out of recession. The start of economic recovery is, however, slow and affected by uncertainty over the global economic outlook.

Inflation has remained low in Finland over the period under review due to factors including the fall of the average interest rate on housing loans and interest rates on consumer credits. Consumer confidence remained weak and expectations for personal finances as well as the Finnish economy had not improved and remained subdued. Intent to buy a home was at a level below normal.

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

In the rental market, competition for good tenants continues and the imbalance between supply and demand does not currently enable any large-scale commencement of newbuild rental housing construction.

Urbanisation and immigration are continuing, and dense urban housing is still becoming increasingly popular. VTT Technical Research Centre of Finland estimates that the housing production need for the next couple of decades is up to 35,000 new homes, whereas the figure in 2023 was historically low at around 21,000.

A level of housing construction below the long-term need may lead to a switch from oversupply to a shortage of housing in growth centres. Economic growth, urbanisation and growing immigration need to be supported by rental homes close to good public transport connections and services. Sufficient housing production, which requires a steady increase in production volumes and contributions by all housing actors, must be ensured in Finland in the decades ahead.

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, ...
CFO Markku Honkasalo, tel. +358 20 134 4226, ...
Enclosures
Interim Report 1 January to 31 March 2025
Interim Report presentation 1 January to 31 March 2025

Distribution
Euronext Dublin, main media,

SATO Corporation

SATO Corporation is an expert in sustainable rental housing and one of Finland's largest rental housing providers. SATO owns around 26,000 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 celebrates its 85^th anniversary.

Attachments

• SATO Interim Report Q1_2025
• SATO Interim report presentation Q1_2025

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