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SATO Corporation’s Half-Year Report 1 January to 30 June 2022: Demand for rental homes growing

·24-min read
SATO Oyj
SATO Oyj

SATO Corporation, Half Year financial report 15 July 2022 at 9:00 am

Summary for 1 January to 30 June 2022 (1 January to 30 June 2021)

  • The economic occupancy rate in Finland was 94.8% (94.6).

  • Net sales totalled EUR 147.2 million (148.2).

  • Net rental income was EUR 98.4 million (100.0).

  • Profit before taxes was EUR 144.5 million (171.2).

  • The change in the fair value of investment properties included in the result was EUR 87.1 million (112.0).

  • Housing investments amounted to EUR 68.5 million (59.6).

  • Invested capital at the end of the review period was EUR 4,613.5 million (4,430.3).

  • Return on invested capital was 7.3% (8.7).

  • Equity was EUR 2,462.2 million (2,274.5), or EUR 43.49 (40.17) per share.

  • Earnings per share were EUR 2.04 (2.42).

  • A total of 191 rental apartments (41) were acquired or completed.

  • A total of 1,001 new rental apartments (1,035), 0 owner-occupied apartments (71) and 52 FlexHomes (52) are under construction.

  • SATO sold 2,009 rental apartments mainly in the Lahti, Jyväskylä and Oulu regions.

Summary for 1 April to 30 June 2022 (1 April to 30 June 2021)

  • The economic occupancy rate in Finland was 95.0% (94.4).

  • Net sales totalled EUR 72.5 million (74.2).

  • Net rental income was EUR 54.0 million (55.1).

  • Profit before taxes was EUR 37.6 million (115.1).

  • The change in the fair value of investment properties included in the result was EUR 4.5 million (80.4).

  • Housing investments amounted to EUR 44.7 million (42.7).

  • Earnings per share were EUR 0.54 (1.63).

  • A total of 191 rental apartments (41) were acquired or completed.

  • A total of 1,001 new rental apartments (1,035), 0 owner-occupied apartments (71) and 52 FlexHomes (52) are under construction.

  • SATO sold 2,009 rental apartments mainly in the Lahti, Jyväskylä and Oulu regions.

President and CEO Antti Aarnio:

- During the period under review, SATO’s occupancy rate improved and was 94.8% (94.6). Demand for rental homes has picked up after the COVID-19 pandemic, and the higher occupancy rate is mainly attributable to growth in service consumption and the consequent improvement in service-sector employment rate. Economic uncertainty and higher consumer prices and interest rates are also in part reflected in the rising demand for rental homes.

- During the period under review, we at SATO focused on developing our customer service and rental operations to align them even better with customer needs.

- SATO sold 2,009 rental apartments mainly in the Lahti, Jyväskylä and Oulu regions to Heimstaden. The divestment implements the SATO strategy to focus housing investments on the Helsinki Metropolitan area and its commuter area along the main railway line as well as on Tampere and Turku and their surrounding municipalities.

- May saw the commencement of the construction of a rental homes property in Rykmentinpuisto, Tuusula. The project is SATO’s first new housing investment in Tuusula in more than 15 years.

- May also saw the completion of a timber apartment building in Lupajantie in the Mellunmäki district of Helsinki. The two-storey timber-structure low-rise apartment buildings feature 112 non-subsidised rental homes. The design solutions employed pay attention to energy efficiency as well as construction solutions and materials that will last for decades.

- I would like to thank SATO employees for their great work to develop customer satisfaction and the housing comfort of our residents.

Operating environment

Over the reporting period, SATO’s operating environment was affected by the war in Ukraine, high inflation, and the continued high level of rental housing supply, particularly in the Helsinki Metropolitan Area.

The first months of the year saw rapid economic growth as COVID-19 restrictions were lifted, resulting in growing service consumption and, consequently, improved employment rate. Russia’s attack on Ukraine in late February made the economic outlook increasingly uncertain. The biggest impacts are related to the surge in prices of energy and materials, and challenges in supply chains, which could already be seen in late 2021. Cost increases remained at a high level throughout the reporting period, and central banks had to make interest rate hikes to curb the increases in costs. Several forecasting institutions have lowered their growth projections for the current and coming year. The uncertainty has resulted in a major decline in consumer confidence. According to the consumer confidence indicator published by Statistics Finland on 27 June 2022, consumers’ expectations concerning their own finances and the Finnish economy were very pessimistic in June.

Inflation remained high in early 2022. According to preliminary Eurostat data, the rate of inflation in June was expected to be 8.6% in the euro area and 8.1% in Finland. The main component pushing up prices was the surge in energy and food prices. The accelerating inflation rate has raised overall interest rate levels, and central banks have tightened their monetary policy to curb price increases. The European Central Bank (ECB) intends to raise the key ECB interest rates in July and again in September. Inflation is, however, anticipated to slow during 2023.

There are signs of slowing in the record-high rate of construction that has been seen for a long period time. The May economic forecast of the Confederation of Finnish Construction Industries (RT) estimates that rental housing starts will decline by around a fifth to around 39,000 homes this year, with the figure for next year projected to settle at the long-term level of housing production demand at 35,000 homes.

Despite the economic uncertainty, there is demand for rental homes and the urbanisation trend continues. Dense urban housing with good access to public transport is becoming increasingly popular in Finland. The Helsinki Metropolitan Area (HMA), Tampere and Turku continue to enjoy strong growth, while at the same time Statistics Finland forecasts a downturn in the nationwide population trend in 2031. The HMA is projected to grow by more than 200,000 new residents by 2040. Almost 80% of HMA residents already live in households with one to two members, and the proportion of small households continues to grow. The proportion of immigrants is projected to increase in the HMA from the current 17% to 25% by 2030. The ageing population is moving to growth centres providing access to services and expects more and more housing-related services.

The demographic change and the price development of owner-occupied homes create a stable foundation for rental housing demand, especially in the HMA, Tampere and Turku. Outside growth centres, the real prices of homes are declining, which makes acquiring an owner-occupied home in a growth centre even more challenging for people coming from those areas.

REVIEW PERIOD 1 January to 30 June 2022 (1 January to 30 June 2021)

Net sales and profit

In January–June 2022, SATO Corporation’s consolidated net sales totalled EUR 147.2 million (148.2).

Operating profit was EUR 166.8 million (194.0). Operating profit without the change in the fair value of investment properties was EUR 79.7 million (82.0). The change in fair value through profit or loss was EUR 87.1 million (112.0).

Net financing expenses totalled EUR -22.3 million (-22.7).

Profit before taxes was EUR 144.5 million (171.2). Cash earnings (free cash flow after taxes excluding changes in fair value) in January–June amounted to EUR 37.8 million (38.5).

Earnings per share were EUR 2.04 (2.42).

Financial position and financing

The consolidated balance sheet total at the end of June was EUR 5,164.9 million (5,012.9). Equity totalled EUR 2,462.2 million (2,274.5). Equity per share was EUR 43.49 (40.17).

The Group’s equity ratio at the end of June was 47.7% (45.4). EUR 0.0 million in new long-term financing was drawn and the solvency ratio at the end of June was 41.2% (42.8).

The Group’s annualised return on equity was 9.6% (12.4). Return on invested capital was 7.3% (8.7).

Interest-bearing liabilities at the end of June totalled EUR 2,151.4 million (2,155.7), of which loans on market terms amounted to EUR 1,980.5 million (1,952.9). The average loan interest rate was EUR 1.8% (1.7). Net financing costs totalled EUR -22.3 million (-22.7).

The calculated impact of changes in the market value of interest hedging on equity was EUR 31.4 million (9.1).

The proportion of loans without asset-based securities was 83.5% (85.1) of all loans. At the end of June, unencumbered assets accounted for 88.8% (86.9) of total assets.

Housing business

Our housing business includes rental activities, customer service, lifecycle management and maintenance. Effective rental activities and digital services provide home-seekers with quick access to a home, and the Group with a steadily increasing cash flow. High-quality maintenance operations ensure the comfort of residents and that the apartments stay in good condition and maintain their value. We serve our customers in daily housing issues through our customer-oriented service organisation.

Rental income was EUR 147.2 million (148.2). On average, the economic occupancy rate of apartments in Finland was 94.8% (94.6) and the external tenant turnover 27.6% (32.3).

At the end of the reporting period, the average monthly rent of SATO rental homes in Finland was EUR 17.84 per m2 (17.48).

Net rental income from apartments totalled EUR 98.4 million (100.0).

Investment properties

On 30 June 2022, SATO owned a total of 24,949 homes (26,718). The reporting period saw the completion of 191 rental homes (41). The number of divested rental apartments and part-ownership apartments redeemed by residents totalled 2,018.

Fair value

The development of the value of rental apartments is a key factor for SATO. Its housing stock is concentrated in areas and apartment sizes which are expected to be the focus, in the long term, of increasing rental apartment demand. The allocation of building repairs is based on lifecycle plans and repair need specifications.

At the end of June, the fair value of investment properties came to a total of EUR 4,976.7 million (4,916.4). The change in the value of investment properties, including the rental apartments acquired and divested during the reporting period, was EUR -56.0 million (162.9).

At the end of June, the commuting zone of the Helsinki Metropolitan Area accounted for around 87%, Tampere and Turku together made up around 11% and St Petersburg around 2% of the value of apartments.

Investments, divestments, and property development

Investment activities are used to manage the housing portfolio and prepare the ground for growth. Since 2000, SATO has invested more than EUR 3 billion in non-subsidised rental apartments. SATO acquires and builds entire rental buildings and single rental apartments. Property development allows for new investments in rental apartments in Finland. The rental potential and value of rental apartments owned by SATO are developed through renovation activities.

Investments in rental apartments stood at EUR 68.5 million (59.6). The Helsinki Metropolitan Area represented 78.4% of all investments during the period under review. New apartments accounted for 59.4% of the total. In addition, on 30 June 2022, there were binding purchase agreements to a total of EUR 133.8 million (122.7) in Finland.

SATO sold 2,009 rental apartments mainly in the Lahti, Jyväskylä and Oulu regions to a Swedish investment company Heimstaden. The divestment implements SATO’s strategy to focus housing investments on the Helsinki Metropolitan area and its commuter area along the main railway line as well as on Tampere and Turku and their surrounding municipalities.

In May, construction of non-subsidised rental homes commenced in Rykmentinpuisto, Tuusula. The project is implemented in cooperation between multiple actors and the area will feature a variety of housing types. SATO is having 92 non-subsidised rental homes constructed on the site. The Pataljoonantie, Rykmentinpuisto project is SATO’s first new residential investment in Tuusula in more than 15 years. The design of the buildings caters for energy efficiency and sustainable building solutions that will last for decades to come. The property will be rated energy class A. The buildings will be equipped with district heating because they are located in a groundwater area where geothermal heating is not possible. The buildings will also feature solar panels and an intake air cooling system.

May also saw the completion of a timber apartment building in Lupajantie, Mellunmäki, Helsinki. The two-storey timber-structure low-rise apartment buildings feature 112 non-subsidised rental homes. The design solutions employed pay attention to energy efficiency as well as construction solutions and materials that will last for decades. The homes and common areas feature efficient design, which helps to reduce the building’s energy consumption as well as its carbon footprint. The heat source for the buildings is geothermal heat, which makes use of thermal energy stored in the ground.

During the reporting period, 2,015 (11) rental homes were divested in Finland. Their total value was EUR 208.3 million (2.5).

The book value of the plot reserve owned at the end of June totalled EUR 42.2 million (32.5). The value of new plots acquired by the end of June totalled EUR 7.7 million (15.5).

Permitted building volume for around 1,700 homes is being developed for plots in the company’s housing portfolio. This allows SATO to utilise existing infrastructure, create a denser urban structure and thus bring more customers closer to services and public transport connections.

In Finland, 191 rental apartments (41), 0 owner-occupied homes (0) and 0 FlexHomes (0) were completed. On 30 June 2022, a total of 1,001 rental homes (1,035), 0 owner-occupied homes (71) and 52 FlexHomes (52) were under construction.

A total of EUR 31.5 million (40.8) was spent on repairing apartments and improving their quality.

At the end of June, SATO had a total 522 (532) apartments in St Petersburg. The economic occupancy rate of rental homes in St Petersburg averaged 94.0% (95.2). SATO will refrain from making new investment decisions in Russia. The share of investments in Russia is limited to a maximum of 10% of the Group’s housing assets.

Personnel

At the end of June, the Group had 342 employees (283), of whom 294 had a permanent employment contract (248). The average number of personnel in January–June was 329 (259).

1 April to 30 June 2022 (1 April to 30 June 2021)

Net sales and profit

In April–June 2022, SATO Corporation’s consolidated net sales totalled EUR 72.5 million (74.2).

Operating profit was EUR 48.8 million (126.0). Operating profit without the change in the fair value of investment properties was EUR 44.3 million (45.7). The change in fair value through profit or loss was EUR 4.5 million (80.4).

Net financing expenses totalled EUR -11.2 million (-11.0).

Profit before taxes was EUR 37.6 million (115.1). Cash earnings (free cash flow after taxes excluding changes in fair value) in April–June amounted to EUR 12.0 million (17.2).

Earnings per share were EUR 0.54 (1.63).

Housing business

Our housing business includes rental activities, customer service, lifecycle management and maintenance. Effective rental activities and digital services provide home-seekers with quick access to a home, and the Group with a steadily increasing cash flow. High-quality maintenance operations ensure the comfort of residents and that the apartments stay in good condition and maintain their value. We serve our customers in daily housing issues through our customer-oriented service organisation.

Rental income was EUR 72.5 million (74.2). On average, the economic occupancy rate of apartments in Finland was 95.0% (94.4) and the external tenant turnover 29.0% (33.5).

At the end of the reporting period, the average monthly rent of SATO rental homes in Finland was EUR 17.84 (17.48) per m2.

Net rental income from apartments totalled EUR 54.0 million (55.1).

Investment properties

At 30 June 2022, SATO owned a total of 24,949 homes (26,718). The reporting period saw the completion of 191 rental homes (41). The number of divested rental apartments and part-ownership apartments redeemed by residents totalled 2,018.

Fair value

The development of the value of rental apartments is a key factor for SATO. Its housing stock is concentrated in areas and apartment sizes which are expected to be the focus, in the long term, of increasing rental apartment demand. The allocation of building repairs is based on lifecycle plans and repair need specifications.

At the end of June, the fair value of investment properties came to a total of EUR 4,976.7 million (4,916.4). The change in the value of investment properties, including the rental apartments acquired and divested during the reporting period, was EUR -152.3 million (111.9).

At the end of June, the commuting zone of the Helsinki Metropolitan Area accounted for around 87%, Tampere and Turku together made up around 11% and St Petersburg around 2% of the value of apartments.

Investments, divestments, and property development

Investment activities are used to manage the housing portfolio and prepare the ground for growth. Since 2000, SATO has invested more than EUR 3 billion in non-subsidised rental apartments. SATO acquires and builds entire rental buildings and single rental apartments. Property development allows for new investments in rental apartments in Finland. The rental potential and value of rental apartments owned by SATO are developed through renovation activities.

Investments in rental apartments stood at EUR 44.7 million (42.7). The Helsinki Metropolitan Area represented 76.3% of all investments during the period under review. New apartments accounted for 55.8% of the total. In addition, on 30 June 2022, there were binding purchase agreements to a total of EUR 133.8 million (122.7) in Finland.

SATO sold 2,009 rental apartments mainly in the Lahti, Jyväskylä and Oulu regions to a Swedish investment company Heimstaden. The divestment implements SATO’s strategy to focus housing investments on the Helsinki Metropolitan area and its commuting zone along the main railway line as well as on Tampere and Turku and their surrounding municipalities.

In May, construction of non-subsidised rental homes commenced in Rykmentinpuisto, Tuusula. The project is implemented in cooperation between multiple actors and the area will feature a variety of housing types. SATO is having 92 non-subsidised rental homes constructed on the site. The Pataljoonantie, Rykmentinpuisto project is SATO’s first new residential investment in Tuusula in more than 15 years. The design of the buildings caters for energy efficiency and sustainable building solutions that will last for decades to come. The property will be rated energy class A. The buildings will be equipped with district heating because they are located in a groundwater area where geothermal heating is not possible. The buildings will also feature solar panels and an intake air cooling system.

May also saw the completion of a timber apartment building in Lupajantie, Mellunmäki, Helsinki. The two-storey timber-structure low-rise apartment buildings feature 112 non-subsidised rental homes. The design solutions employed pay attention to energy efficiency as well as construction solutions and materials that will last for decades. The homes and common areas feature efficient design, which helps to reduce the building’s energy consumption as well as its carbon footprint. The heat source for the buildings is geothermal heat, which makes use of thermal energy stored in the ground.

During the period under review, 2,015 rental homes (6) were divested in Finland. Their total value was EUR 207.4 million (1.1).

The book value of the plot reserve owned at the end of June totalled EUR 42.2 million (32.5). The value of new plots acquired by the end of June totalled EUR 7.7 million (15.5).

Permitted building volume for around 1,700 homes is being developed for plots in the company’s housing portfolio. This allows SATO to utilise existing infrastructure, create a denser urban structure and thus bring more customers closer to services and public transport connections.

In Finland, 191 rental apartments (41), 0 owner-occupied homes (0) and 0 FlexHomes (0) were completed. On 30 June 2022, a total of 1,001 rental homes (1,035), 0 owner-occupied homes (71) and 52 FlexHomes (52) were under construction.

A total of EUR 20.4 million (29.8) was spent on repairing apartments and improving their quality.

At the end of June, SATO had a total of 522 apartments (532) in St Petersburg. The economic occupancy rate of rental homes in St Petersburg averaged 90.1% (95.4). SATO will refrain from making new investment decisions in Russia. The share of investments in Russia is limited to a maximum of 10% of the Group’s housing assets.

Personnel

At the end of June, the Group had 342 employees (283), of whom 294 had a permanent employment contract (248). The average number of personnel in April–June was 336 (273).

Events after the review period

There are no material events after the review period.

Short-term risks and uncertainties

Risk management is used to ensure that risks impacting the company’s business are identified, managed, and monitored. The main risks of SATO’s business are risks related to the business environment and financial risks.

The war in Ukraine is a short-term risk affecting the operating environment, the duration and impacts of which on the Finnish economy are difficult to estimate. The war’s biggest impacts have been seen in the prices of energy, food, and materials as well as in supply chains. An increase in energy, food, and consumer goods prices may slow economic growth, considerably increase the interest rate level, and have a negative effect on the purchasing power of consumers as well as on their capacity to perform their obligations. Such decline in the economy or economic activity may have an adverse effect on the financial performance or activities, finance costs or value of SATO-owned properties.

The highest risks in apartment rental are to do with cyclical movements and changes in supply and demand. The market risk may push the supply of rental homes higher than their demand. This would result in idle rental housing stock and pressure for rents to level off or fall, especially as regards old housing stock.

A decline in the housing market may have a negative effect on the market value of SATO’s housing stock. In line with its refined strategy, SATO has been focusing in its investments on growth centres and on renovating and repairing existing housing stock and, consequently, ensuring the rentability and value development of the apartments.

Changes in regulation by the authorities and in legislation and related uncertainty may have a significant impact on the reliability of the investment environment and, consequently, on SATO’s business. SATO monitors and anticipates these changes and calls attention to what it considers to be negative impacts of regulation.

The management of financial risks is steered by the Group’s treasury policy. Our risk management principles have been defined in the treasury policy adopted by SATO’s Board of Directors. Our most significant financial risks relate to liquidity, refinancing and interest rates. We manage our liquidity and refinancing risks by diversifying the financing sources and maturity of our loan portfolio, and by holding sufficient liquidity reserves in the form of committed credit facilities and other financing commitments. In 2019, the company issued an EUR 1.5 billion Euro Medium Term Notes (EMTN) Programme, under which SATO has issued bonds in the total amount of EUR 1,050.0 million.

The means for managing liquidity risk at SATO include cash assets, a bank account limit, EUR 700 million in committed credit facilities and a EUR 400 million commercial paper programme. We increase the amount of reserves as the funding requirements grow. Our objective is to keep the liquidity requirements of the next 12 months covered by committed agreements.

Floating rate loans represent an interest rate risk which we manage by balancing the share of fixed and floating rate loans either by fixed rate debt arrangements or interest rate derivatives. In accordance with our treasury policy, our aim is for fixed-rate loans, including interest rate derivatives, to account for more than 60% of our debt portfolio.

SATO currently has 522 apartments in St Petersburg. Investments in Russia commenced in 2007. The last investment decision was made in 2013 and the property was completed in 2016. There are risks related to the business environment in our St. Petersburg operations, including currency risk. The consolidation of foreign currency-denominated assets in the consolidated financial statements also involves a translation risk, with related hedging options examined in accordance with our treasury policy. SATO will refrain from making new investments in Russia. Following the start of the war in Ukraine, the company has looked into opportunities to exit the business in Russia. According to the explorations, a speedy exit is not possible, which is why SATO will continue to rent out the homes in St Petersburg for the time being. It is expected that the operating environment in Russia will be highly uncertain for a long period of time and could result in disruptions to SATO's business activities in Russia and with parties related to business in Russia and also impact the ability of SATO to make payments to its suppliers, employees and authorities as well as receive payments from its customers, which could, therefore, have a material adverse effect on SATO's business in Russia and even result in SATO limiting or ceasing its operations in Russia and with parties related to Russia for a long period of time. Should the war in Ukraine be prolonged, carrying out business in Russia may have negative impacts on the company’s reputation and may hamper business in Finland or have adverse effects on the company’s ability to access finance in the market, which may have an adverse effect on the financial performance or activities, financial costs or value of SATO-owned properties.

For a broader description of risks and risk management, see the Group’s website and Annual Report for 2021 at www.sato.fi/en.

Outlook

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

The first months of the year saw rapid economic growth as COVID-19 restrictions were lifted, resulting in growing service consumption and, consequently, improved employment rate. Russia’s attack on Ukraine in late February made the economic outlook increasingly uncertain. The biggest impacts are related to the surge in the prices of energy and materials and to challenges in supply chains, which could already be seen in late 2021. Cost increases remained at a high level throughout the reporting period. Higher construction costs may postpone some of SATO’s future investment decisions.

There are slight signs of slowing in the record-high rate of construction that has been seen for a long period time. The May economic forecast of the Confederation of Finnish Construction Industries (RT) estimates that rental housing starts will decline by around a fifth to around 39,000 homes this year, with the figure for next year projected to settle at the long-term level of housing production demand at 35,000 homes. This will be reflected in the supply of rental homes over the long term.

Several forecasting institutions have lowered their growth projections for the current and coming year. The uncertainty has resulted in a major decline in consumer confidence. According to the consumer confidence indicator published by Statistics Finland on 27 June 2022, consumers’ expectations concerning their own finances and the Finnish economy were very pessimistic in April.

The accelerating inflation rate has raised overall interest rate levels, and central banks have tightened their monetary policy to curb price increases. The European Central Bank (ECB) intends to raise the key ECB interest rates in July and again in September. Inflation is, however, anticipated to slow during 2023. High inflation increases, in addition to higher property maintenance expenses, the interest rate level and, and consequently, SATO’s finance costs. The ample supply of rental homes prevents the transfer of higher costs caused by inflation fully to rents.

However, with COVID-19 restrictions lifted and service-sector employment improving, demand for centrally located homes has started to grow, which is reflected in the improved occupancy rate. The economic uncertainty, pressure for interest rate hikes and increases in consumer prices have also been in part reflected in increased demand for rental homes.

The continued high level of housing supply particularly in the Helsinki Metropolitan Area has maintained intense competition for good tenants and was reflected over the period under review in SATO’s business as a slight decrease in average rents year on year. With greater choice available for those looking for a home, the role of a successful customer experience has become even more important. SATO is investing strongly in increasing its presence close to customers and in digital services.

SATO Corporation’s shareholders on 30 June 2022  

Largest shareholders and their holdings

 


number


%



• Balder Finska Otas AB (Fastighets AB Balder)

31,854,535

56.1%

• Stichting Depositary APG Strategic Real Estate Pool

12,811,647

22.6%

• Elo Mutual Pension Insurance Company

7,233,081

12.7%

• State Pension Fund of Finland

2,796,200

4.9%

• Valkila Erkka

385,000

0.7%

• Research Foundation of Pulmonary Diseases

227,000

0.4%

• SATO Corporation

166,000

0.3%

• Entelä Tuula

159,000

0.3%

• Heinonen Erkki

156,684

0.3%

• Tradeka-invest Ltd

126,500

0.2%

• Others (117 shareholders)

867,420

1.5%

On 30 June 2022, SATO had 56,783,067 shares and 127 shareholders registered in the book-entry system. The share turnover rate was 0.72% for the period from 1 January to 30 June 2022.

For media enquiries please contact:
Antti Aarnio, President and CEO, phone: +358 201 34 4200
Markku Honkasalo, CFO, phone: +358 201 34 4226
www.sato.fi/en

ATTACHMENTS

Half-Year Report 1 January to 30 June 2022
Half-Year Report presentation 1 January to 30 June 2022

DISTRIBUTION
NASDAQ Helsinki Oy, 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 25,000 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 2021, SATO Group’s net sales totalled EUR 298.3 million, operating profit EUR 304.5 million and profit before taxes EUR 259.4 million. The value of SATO’s investment properties is around EUR 5 billion. 

 

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