SATO Corporation's interim report 1 January 2016 - 30 September 2016
20 October 2016
Customer-driven approach to the core of SATO's strategy** **
Summary of 1 January - 30 September 2016 (1 January - 30 September 2015)
- Net sales stood at EUR 230.8 (244.8) million, of which rental income accounted for EUR 194.8 (187.8) million.
- Profit before taxes stood at EUR 172.9 (102.5) million. The improvement was based on the change in the fair value of rental flats, which was EUR 101.5 (26.4) million.
- Earnings per share were EUR 2.57 (1.60).
- Equity was EUR 1,206.5 (948.0) million, or EUR 21.31 (18.65) per share.
- Return on equity was 16.7 (11.8) percent.
- Equity ratio was 34.1 (31.2) percent.
- Investments in rental flats stood at EUR 508.8 (195.0) million.
- A total of 3,061 (960) rental flats were acquired or completed.
- A total of 1,428 (1,122) rental apartments were under construction.
- The occupancy rate in Finland was 95.3 (96.6) percent.
Summary of 1 July - 30 September 2016 (1 July - 30 September 2015)
- Net sales stood at EUR 72.5 (69.3) million, of which rental income accounted for EUR 68.3 (62.8) million.
- Profit before taxes stood at EUR 64.0 (9.4) million. The change in the fair value of rental flats included in the result was EUR 38.5 (-18.3) million.
- Earnings per share were EUR 0.90 (0.15).
- Investments in rental flats stood at EUR 64.0 (98.9) million.
- The occupancy rate in Finland was 96.0 (96.7) percent.
Operating environment
Growth is expected in the Eurozone, but it is shadowed by several risks. Global crises related to economy, politics and security, together with Brexit, create uncertainty globally and, in particular, in Europe.
The picture of the Finnish economy is mixed. Positive signals can be seen in confidence indicators regarding construction, services and consumers, as these are at the long-term average level or higher. Then again, the outlook is pushed down by exports, and the general recovery has not started, regardless some positive news in certain industrial segments.
The uncertainty is expected to keep the market interest rates close to zero for a long time.
There was brisk demand for rental flats during the summer and early autumn. The increased supply has stabilised the relationship between supply and demand in many areas, which has increased tenant turnover with regard to the entire rental housing base.
In Russia, the purchasing power is expected to decrease further, and households are expected to use their assets to repay their loans. Even though GNP was only a little lower at the beginning of the year compared with the year before, Bank of Finland estimates that future growth is sustainable only after investments are started in Russia.
Saku Sipola, President and CEO:** **
- High demand in July-September and our actions to improve the occupancy rate were clearly visible. The occupancy rate continued to increase from the previous quarter's 95.1 percent to 96.0 percent during the third quarter. This increase in the occupancy rate resulting from our productive work with our customers is an important step in our more customer-driven operations.
- Urbanisation presents an enormous change, and it largely defines the future success of Finland. Finland is currently making good progress in terms of the housing construction required by urbanisation, and we need to be able to maintain this progress. Keeping pace requires the engagement of a large set of operators. According to our strategy, SATO aspires to increase its range of rental flats in the Helsinki region, Tampere and Turku - areas showing the highest demand for new homes.
- An increase in the number of apartments alone is not enough because the values of people are changing and becoming more individual alongside urban growth - this is why housing solutions must also become more diverse. SATO, together with its partnership network, will revolutionise the field of housing - to offer diverse housing solutions and services that make living easier - more than just walls.
REVIEW PERIOD 1 January - 30 September 2016 (1 January - 30 September 2015)
Strategy
The SATO Board of Directors has adopted the company's updated strategy, strategic objectives and dividend policy.
Globalisation, digitalisation and sustainable development are accelerating the rate of urbanisation and influencing people's values and actions. Therefore, housing will also need to change. According to our vision, thriving urban environments will be home to people enjoying a high level of wellbeing. Our task is to revolutionise housing - provide our customers with more than just walls.
We will create a well-functioning cooperation network to offer diverse housing and services for different needs and to the benefit of our customers. We will target our growth investments at the Helsinki Metropolitan Area, Tampere and Turku where the demand for homes is the highest.
The role of financing is emphasised in the creation of the capacities for growth, and we have included a strengthening investment grade rating (currently Moody's Baa3) in our strategic objectives. Our return on equity target for the strategic period will remain unchanged at 12 percent. In addition, our strategic objective is a constantly improving tenant's Net Promoter Score (NPS).
According to the new dividend policy, annual dividends paid will, depending on the investment level, market situation, and the development of solvency ratio, be a maximum of 40 percent of the cash earnings.
Net sales and profit
The Group's net sales decreased in January-September by 5.7 percent year-on-year and totalled EUR 230.8 (244.8) million. The decrease in net sales was caused by a reduction in the sales of owner-occupied apartments in accordance with the strategy. Of net sales, rental income accounted for EUR 194.8 (187.8) million. Rental income increased by 3.7 percent.
Operating profit increased by 59.3 percent to EUR 208.0 (130.5) million. Operating profit without the change in fair value was EUR 106.4 (104.1) million. The change in fair value of EUR 101.5 (26.4) million during the first half of the year was mainly affected by ending restrictions on certain properties, adjusted yield demands set for specific properties on the basis of the guidance issued by an external valuation agency and higher sales prices of flats in our operating area. The agency's guidance on the adjusted yield demands are based on the attractiveness of housing investments producing steady returns, which increases the value of apartments.
Profit before taxes increased by 68.7 percent to EUR 172.9 (102.5) million. The improvement was mainly based on the positive change in the value of rental apartments. Cash flow from operations (free cash flow after taxes excluding change in fair value) in January-September amounted to EUR 57.6 (54.9) million.
Financial position and financing
The consolidated balance sheet totalled EUR 3,540.6 (3,034.4) million at the end of September. Equity was EUR 1,206.5 (948.1) million. Equity per share was EUR 21.31 (18.65). Through its two share issues in June, SATO Corporation strengthened its shareholders' equity by a total of EUR 112.9 million.
The Group's equity ratio was 34.1 (31.2) percent at the end of September. The minimum target is an equity ratio of 30 percent.
The Group's annual return on equity was 16.7 (11.8) percent. The return on investment was 9.5 (6.7) percent.
Interest-bearing liabilities at the end of September totalled EUR 1,971.6 (1,777.9) million, of which loans subject to market terms accounted for EUR 1,469.5 (1,450.3) million. The average interest rate was 2.6 (2.4) percent. Net financing costs totalled EUR 35.1 (28.1) million.
In March, SATO issued a EUR 300 million unsecured bond offered to European investors. The loan received the Baa3 credit rating from Moody's. The bond has a maturity of five years, and it has a fixed coupon rate of 2.375 percent. The loan-to-value (LTV) ratio was 55 (57) percent at the end of the review period.
The calculated impact of changes in the market value of interest hedging was EUR -12.4 (3.6) million on equity and EUR 0.0 (0.4) million on profit before taxes.
Housing assets and fair value
The development of the value of rental apartments is a key factor for SATO. Its housing assets are focused on apartment sizes and on areas where the demand for homes will increase in the long term. The allocation of building repairs is based on life-cycle plans and repair-need specifications.
On 30 September 2016, SATO owned a total of 25,681 (23,992) flats. A total of 3,061 rental apartments were acquired or completed. The total number of divested rental apartments and shared ownership apartments redeemed by the owner occupants was 810.
The fair value of rental apartments was EUR 3,335.7 (2,697.1) million at the end of September. The change in the fair value, including the rental flats acquired and divested during the period, was EUR 582.8 (169.1) million.
Of the value of apartments, the Helsinki region accounted for some 80 percent, Tampere and Turku made up roughly 12 percent, Oulu and Jyväskylä roughly 4 percent. St. Petersburg covered roughly 4 percent at the end of June.
Investments and divestments
Investment activities prepare the ground for growth. Since 2000, SATO has invested a total of EUR 2.5 billion in rental flats. SATO acquires and builds entire rental buildings and single rental flats.
SATO's investment activities will focus on the Helsinki region, Tampere and Turku in the future. During the review period, investments in rental apartments stood at EUR 508.8 (195.0) million. Investments in the Helsinki region represented 66 percent and investments in new apartments represented 21 percent of all investments in the review period.
At the end of September, binding purchase agreements in Finland totalled EUR 125.7 (115.9) million.
During the review period, 662 (1,078) flats with a total value of EUR 31.4 (52.3) million were divested in Finland.
Rental activities
Effective rental activities provide homeseekers with quick access to a home. Rental services are mainly offered by SATO's rental offices. In addition, SATO's electronic channels make finding a home easy for customers.
Rental income increased by 3.7 percent to EUR 194.8 (187.8) million. The economic occupancy rate of apartments in Finland was 95.3 (96.6) percent on average, and the rental tenant turnover rate was 41.9 (40.5) percent. The large number of rental apartments completed over the past 12 months and the intensifying competition contributed to the increase in tenant turnover and the decrease in the occupancy rate. The rental market is currently in a state of balance in many places.
The average monthly rent of SATO rental homes was EUR 16.37 (15.71) per m2, while the average monthly rent of shared ownership apartments was EUR 8.84 (8.69) per m2. The average rent is increased by investments in small apartments in growth centres and the divestment of low-cost rental apartments outside the focus area. The rent increases were more moderate than in previous years.
Net rental income from flats stood at EUR 125.4 (118.4) million, and the net rental income rate was 5.7 (6.2) percent on an annual level.
Property development
Property development enables new investments in rental flats in Finland. The rental capacity and value of rental flats owned by SATO are developed through renovation activities.
The book value of owned plot reserves totalled EUR 65.4 (68.0) million at the end of September. The value of new plots acquired by the end of September totalled EUR 13.5 (11.2) million.
Permitted building volume for approximately 1,300 apartments is being developed for the plots of the company's own stock of buildings. Supplementary construction can make use of the existing infrastructure, and it allows for a denser urban structure and, thereby, serves to support the development of local services. The first SATO StudioHome is a prime example of supplementary construction. The concept was designed in response to the growing need for affordable housing in the Helsinki region. Its construction was started in conjunction with a rental building owned by SATO in Martinlaakso, Vantaa, increasing the functionality and enjoyment of the outdoor area. The building will be completed in late 2017 and will have 68 apartments with balconies, with a room height of almost four metres, creating an atmosphere of spaciousness and light.
In July, a preliminary agreement was signed with VR Group on the development of a housing block in Oulunkylä owned by VR and a later property transaction. The purpose is to make a planning change in the block located next to Oulunkylä services, train station and the future Raide-Jokeri station, and the build new apartments for approximately 800 people.
In Finland, a total of 421 (392) rental apartments and 0 (99) apartments for sale were completed for SATO. On 30 September 2016, a total of 1,428 (968) rental and 76 (130) owner-occupied flats were under construction.
A total of EUR 30.4 (36.2) million was spent on repairing and improving the quality of apartments.
A total of 95 (97) new homes were sold in January-September. At the end of the review period, a total of 6 (29) completed flats and 8 (78) flats under construction remained unsold. The total purchase value of these unsold apartments amounted to EUR 6.1 (54.7) million. SATO has made a strategic decision to decrease its production of owner-occupied homes and focus on business operations related to rental flats.
Business operations in St. Petersburg
The housing market in St. Petersburg corresponds to that of the whole of Finland in terms of volume. SATO has been following its growth strategy by investing in rental homes in St. Petersburg. Homes have been acquired in central locations in the city.
At the end of September, housing assets in St. Petersburg totalled EUR 116.9 (115.3) million. The total amount of binding purchase agreements was EUR 0.0 (3.5) million.
On 30 September 2015, SATO owned 534 (376) completed and 0 (154) homes under construction in St. Petersburg. The average monthly rent of SATO rental homes was EUR 13.0 (15.1) per m2. The change in the average rent is mainly due to changes in the exchange rate for the rouble and homes completed in cheaper areas.
The economic occupancy rate of rental homes was 80.0 (86.1) percent on average. The decrease in the occupancy rate was caused by the general economic situation in Russia, the number of rental homes completed simultaneously and the temporary traffic arrangements caused by bridge and metro worksites in some parts of St. Petersburg.
Personnel
At the end of September, the Group employed 170 (172) people, of whom 157 were full-time employees.
The average number of personnel was 170 (173) in January-September.
Corporate responsibility
In September, SATO received the Green Star recognition of Global Real Estate Sustainability Benchmark (GRESB) for the second time for its corporate responsibility. In its benchmarking group among unlisted housing investors, SATO was the best out of five Nordic investors and the sixth out of 24 European investors. Globally, SATO was ranked ninth of the 65 participating housing investors.
Changes in the management team
Vice president Tuula Entelä has announced that she will retire at the end of the year. Entelä will continue working as a senior advisor and a member of the management team until 31 December 2016. She will also be responsible for operations in St. Petersburg and for SATO HotelHomes and for tutoring the new members of the management team. After this, responsibility for operations in St. Petersburg will transfer to CEO Saku Sipola, and vice president Antti Asteljoki will be responsible for SATO HotelHomes.
The development activities covered by Tuula Entelä will transfer to Monica Aro, the current director of marketing and communications at SATO, who has been appointed vice president of development at SATO as of 28 November 2016. Aro will continue as a member of SATO's management team.
Miia Eloranta (43), M.Soc.Sc., has been appointed director of marketing and communications and a member of the Group's management team as of 28 November 2016.
Starting from 1 December 2016, Markku Honkasalo (52), LL.M., eMBA, will serve as CFO of SATO and a member of the Group's management team. He will be responsible for finances and funding, IT and procurement.
The members of the Group's management team report to CEO Saku Sipola.
REVIEW PERIOD 1 July - 30 September 2016 (1 July - 30 September 2015)
Net sales and profit
The Group's net sales increased by 4.6 percent year-on-year in July-September and totalled EUR 72.5 (69.3) million. Of net sales, rental income accounted for EUR 68.3 (62.8) million.
The operating profit was EUR 76.1 (18.7) million.
Profit before taxes stood at EUR 64.0 (9.4) million. The change in the fair value of rental homes included in the result was EUR 38.5 (-18.3) million. The value change was mainly affected by adjusted yield demands set for specific properties on the basis of the guidance issued by an external valuation agency and the change in the Rouble rate in relation to the comparison period.
Housing assets, fair value and investments
The number of apartments increased by 244 in July-September. Change in fair value was EUR 38.5 (-18.3) million.
Investments in rental apartments totalled EUR 64.0 (98.9) million. A total of 534 (776) flats were divested in Finland at a total value of EUR 19.2 (36.4) million.
SATO completed Finland's first keyless rental building in Jätkäsaari, Helsinki, in which locks are opened using a digital identifier.
Rental activities
Rental income increased by 8.8 percent to EUR 68.3 (62.8) million. The economic occupancy rate of homes in Finland was 96.0 (96.7) percent on average, and the tenant turnover rate was 43.4 (40.8) percent.
Net rental income from homes stood at EUR 44.6 (39.7) million, and the net rental income rate in rental homes was 5.7 (6.2) percent on an annual level.
Property development
The value of new plots acquired in July-September totalled EUR 4.0 (0.9) million.
In Finland, a total of 323 (33) rental apartments were completed.
A total of EUR 11.0 (10.1) million was spent on repairing homes and improving the quality of homes.
A total of 19 (21) owner-occupied homes were sold in July-September.
Business operations in St. Petersburg
In July-September, the value of housing assets in St. Petersburg decreased by EUR 1.7 (17.5) million. A total of 0 (154) rental apartments were under construction. No new acquisitions were made.
The economic occupancy rate of rental homes was 83.7 (76.6) percent on average.
Events after the reporting period
In October, SATO signed the energy savings agreement for the real estate industry and became committed to VAETS, the energy efficiency agreement between rental home associations. Through the agreement, SATO is committed to reduce the total energy volume of building heat and electricity by 10.5 percent from the level of 2014 by the end of 2025. SATO has also been party to previous energy efficiency agreements between rental home associations. During the previous agreement period (2009-2015), SATO achieved heat savings of nearly 155,000 MWh.
Future risks and uncertainties
The economy continues to grow slowly, which is reflected in the housing and financing markets.
The change in the market value of homes affects the value of SATO's housing assets. The positive development of the value of housing assets and the rental capacity of homes are secured by focusing on small rental homes in growth centres.
In Russia, SATO only operates in St. Petersburg. Risks in housing investment activities in St. Petersburg are associated with the development of the market value of flats, fluctuations in exchange rates and other changes in the operating environment. Russia is limited to a maximum of 10 percent of the Group's housing assets. The current value of housing assets in St. Petersburg accounts for 3.5 percent of the Group's entire housing assets.
Changes in interest rates affect SATO's result and balance sheet through changes in interest expenses and the market value of interest hedging. In accordance with the Group's financing policy, the aim is to ensure that at least 60 percent of all loans are fixed-rate loans. The adequacy of financing is monitored using a rolling liquidity estimate.
A more detailed description of risks and risk management is available in the Group's annual report for 2015 and on the company's website at www.sato.fi.
Outlook
In the operating environment, SATO's business operations are mainly affected by consumer confidence, development of purchasing power, the rent and price development of homes, and the interest rate.
The Finnish economy and the general climate of confidence picked up slightly during the first half of the year, but global crises in terms of economy, politics and safety, as well as the Brexit, have increased uncertainty globally and particularly in Europe. Interest rates are expected to remain low, which will have a positive impact on SATO's financing costs.
The increase in urbanisation creates new potential for the international competitiveness of Finnish economy. Urbanisation and immigration provide good long-term conditions for continued housing investments in Finland, unless legislative changes are implemented that weaken the conditions for business operations related to rental homes.
The deregulation of provisions concerning the construction of new buildings has proceeded slowly and, as a result, the prices of apartments have not settled at reasonable levels. Nevertheless, the active construction of rental flats in many areas has increased supply and, therefore, the balance between supply and demand has improved and the increase in rents has slowed down.
SATO's net rental income is expected to increase from 2015 due to new investments. Rent increases are expected to be more modest than in the previous years.
About 80 percent of SATO's housing assets are located in the Helsinki region, where positive development of prices is expected.
The uncertain situation in Russia is expected to continue. For the time being, SATO will refrain from making new investment decisions in Russia.
**SATO Corporation's shareholders on 11 October 2016 **
Largest shareholders and their holdings
|||
| - | --------------- |
| Fastighets Ab Balder | 53.6 % |
| APG Asset Management NV | 22.6 % |
| Elo Mutual Pension Insurance Company | 12.7 % |
| The State Pension Fund | 4.9 % |
| The Finnish Construction Trade Union | 1.1 % |
| | |
| Others (82 shareholders) | 5.1 % 100 % |
On 11 October 2016, SATO had 56,783,067 shares and 87 shareholders registered in the book-entry system. The share turnover rate was 1.2 percent for the period 1 January - 11 October 2016.
**Key figures, Group **
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|:------------- |:---------- | -------------------------:|:---------- | ----------:|:-------- | ---------:|:------- | --------:|:-------- | --------:|:-------- | ----------:|:---------- | ----------:|:---------- | ---------------------:|
| KEY FINANCIAL INDICATORS |||| 1-9/ 2016 || 1-9/ 2015 || 1-12/ 2015 || 1-12/ 2014 || 1-12/ 2013** || 1-12/ 2012** || 1-12/ 2011** |
| Net sales, MEUR |||| 231 || 245 || 323 || 312 || 312 || 287 || 232 |
| Profit before taxes, MEUR |||| 173 || 102 || 159 || 152 || 141 || 121 || 174 |
| Earnings per share, EUR |||| 2.57 || 1.60 || 2.49 || 2.37 || 2.34 || 1.78 || 2.63 |
| Balance sheet total, MEUR |||| 3,541 || 3,034 || 2,980 || 2,802 || 2,596 || 2,360 || 2,167 |
| Shareholders' equity, MEUR **** |||| 1,207 || 948 || 993 || 892 || 823 || 693 || 635 |
| Interest bearing liabilities, MEUR |||| 1,972 || 1,778 || 1,676 || 1,585 || 1,501 || 1,375 || 1,255 |
| Equity per share, EUR **** |||| 21.31 || 18.65 || 19.53 || 17.55 || 16.16 || 13.72 || 12.59 |
| Average number of shares, million * |||| 53.6 || 50.8 || 50.8 || 50.8 || 50.8 || 50.8 || 50.8 |
| Number of shares, million * |||| 56.6 || 50.8 || 50.8 || 50.8 || 50.8 || 50.8 || 50.8 |
| Return on invested capital, % (ROI) |||| 9.5 % || 6.7 % || 7.6 % || 7.7 % || 7.7 % || 7.7 % || 10.9 % |
| Return on equity, % (ROE) |||| 16.7 % || 11.8 % || 13.5 % || 14.0 % || 15.5 % || 13.5 % || 22.8 % |
| Equity ratio, % |||| 34.1 % || 31.2 % || 33.3 % || 31.8 % || 31.7 % || 29.4 % || 29.5 % |
| Personnel, average*** |||| 170 || 173 || 172 || 165 || 156 || 152 || 137 |
| Personnel at the end of period |||| 170 || 172 || 170 || 169 || 156 || 150 || 141 |
| | ||| || || || || || || |
| KEY FIGURES ACCORDING TO EPRA RECOMMENDATIONS AND OPERATIONAL CASH EARNINGS |||||||| || || || || |
| EPRA Earnings, MEUR |||| 53.2 || 49.8 || 64.5 || 65.1 || 62.7 || 44.4 || 43.2 |
| EPRA Earnings per share, EUR |||| 0.99 || 0.98 || 1.27 || 1.28 || 1.23 || 0.87 || 0.85 |
| EPRA Net Asset Value, MEUR***** |||| 1,479.3 || 1,177.9 || 1,227.8 || 1,120.3 || 1,006.9 || 900.5 || 825.1 |
| EPRA Net Asset Value per share, EUR***** |||| 26.1 || 23.2 || 24.2 || 22.0 || 19.8 || 17.7 || 16.2 |
| Cash earnings, MEUR |||| 57.6 || 54.9 || 78.1 || 72.9 || 66.1 || 61.6 || 51.9 |
| Cash earnings per share, EUR |||| 1.07 || 1.08 || 1.54 || 1.43 || 1.30 || 1.21 || 1.02 |
| |||| || || || || || || |
| QUARTER KEY FINANCIAL INDICATORS |||| Q3 2016 || Q2 2016 || Q1 2016 || Q4 2015 || Q3 2015 || Q2 2015 || Q1 2015 |
| Net sales, MEUR |||| 72.5 || 79.9 || 78.4 || 78.6 || 69.3 || 79.2 || 96.3 |
| Operating profit, MEUR |||| 76.1 || 58.9 || 72.9 || 65.9 || 18.7 || 44.4 || 67.5 |
| Profit and losses from changes of fair value |||| 38.5 || 23.2 || 39.8 || 36.1 || -18.3 || 8.1 || 36.6 |
| Net financing expenses, MEUR |||| -12.1 || -13.3 || -9.6 || -9.0 || -9.2 || -9.6 || -9.2 |
| Profit before taxes, MEUR |||| 64.0 || 45,6 || 63.3 || 57.0 || 9.4 || 34.7 || 58.3 |
| Earnings per share, EUR |||| 0.90 || 0.68 || 0.99 || 0.90 || 0.15 || 0.55 || 0.90 |
| Average number of shares, million * |||| 56.6 || 53.3 || 50.8 || 50.8 || 50.8 || 50.8 || 50.8 |
| Gross investments, MEUR |||| 64.0 || 407.6 || 37.2 || 55.5 || 98.9 || 66.8 || 29.3 |
| as percentage of net sales |||| 88.3% || 510.4% || 47.4% || 70.5% || 142.6% || 84.4% || 30.4% |
| |||| || || || || || || |
| |||| || || || || || || |
| KEY FIGURES ACCORDING TO EPRA RECOMMENDATIONS AND OPERATIONAL CASH EARNINGS |||||||| || || || || |
| EPRA Earnings, MEUR |||| 20.1 || 16.4 || 16.7 || 14.7 || 18.0 || 17.3 || 14.5 |
| EPRA Earnings per share, EUR |||| 0.36 || 0.31 || 0.33 || 0.29 || 0.35 || 0.34 || 0.29 |
| Cash earnings, MEUR |||| 24.0 || 12.6 || 21.0 || 23.3 || 22.2 || 11.1 || 21.6 |
| Cash earnings per share, EUR |||| 0.42 || 0.24 || 0.41 || 0.46 || 0.44 || 0.22 || 0.42 |
| || || || || || || || || |
| *) || The 160,000 shares held by the Group have been deducted from the number of shares. |||||||||||||||
| **) || Adoption of IAS 40 Investment properties -standard fair value model has been taken into account retrospectively in key figures. Retrospectively adjusted figures are unaudited. |||||||||||||||
| ***) || Including summer trainees | || || || || || || ||
| ****) || Equity excluding non-controlling interest |||||||||||||||
| *****) || Includes items valued at their carrying amount |||||||||||||||
The information presented in the Interim Report has not been audited.
Additional information:
Saku Sipola, President and CEO, phone +358 201 34 4001 or +358 40 551 5953
Esa Neuvonen, CFO, phone +358 201 34 4005 or +358 40 5001 003
APPENDICES
Interim report 1 January – 30 September 2016
Interim report information 1 January – 30 September 2016
SATO is one of Finland's leading rental housing providers. SATO's aim is to offer comprehensive alternatives in rental housing and an excellent customer experience. At the end of Q3/2016, SATO holds roughly 25,700 rental apartments in Finland's largest growth centres and in St Petersburg.
In our operations, we promote sustainable development and initiative-taking, and work in open interaction with our stakeholders to create added value. We operate profitably and with a long-term view. We increase the value of our housing property through investments, divestments and repair work.
SATO Group's net sales in 2015 were €323.4 million, operating profit €196.5 million and profit before taxes €159.4 million. SATO's investment properties have a value of roughly 3.3 billion (Q3/2016).