2015-01-29 08:20:14 CET
2015-01-29 08:21:18 CET
REGULATED INFORMATION
SATO Oyj - Financial Statement Release
SATO’s housing portfolio worth €2.5 billion
A strong year for investment behind, investments in rental housing continue
Helsinki, Finland, 2015-01-29 08:20 CET (GLOBE NEWSWIRE) -- SATO Corporation,
Financial Statement Release, 29 Jan 2015 at 9.20 am
-- Profit before taxes improved by 8.1 (16.1) % on the previous year,
reaching €152.2 (140.8) million.
-- The change in the fair value of rental apartments included in the profit
was €63.8 (59.6) million.
-- Shareholders' equity was €892.2 (821.7) million, €17.55 (16.16)
per share.
-- Return on equity was 14.0 (15.5) %.
-- Investments in rental apartments totalled €174.1 (190.6) million.
-- Rental income grew by 6.0 % to €243.2 (229.5) million.
-- The rental occupancy rate was 97.2 (97.7) %.
-- The proposal for dividend and capital repayment is €0.62 (0.60) per share.
President and CEO Erkka Valkila:
- 2014 was a good year for SATO; we reached nearly all our targets. We
succeeded in our investments and rental income increased. Through procurements
and actions enhancing energy efficiency, we decreased our maintenance costs and
our profitability improved. Our customers' desire to recommend us also
increased. However, the significant weakening of the exchange rate of the
Russian rouble had a negative impact on profit and the value of the St.
Petersburg housing portfolio.
- Our own land inventory and property development improve opportunities for
investments. Our knowledge of the market, created by long experience, gives us
a competitive edge when designing apartments and apartment-related services.
- SATO has a good basis to succeed in the future, as well. Urban development,
immigration and a greater appreciation of rental living increase the demand for
rental apartments in our business areas. Our versatile and developing service
concepts respond to the needs of living.
Operating environment
The Finnish economy has been declining for three consecutive years, and the
long-term growth prospects continued to weaken during the review period. In the
Euro zone, weak economic growth and low interest rates had a positive impact on
SATO's result. In addition to difficulties in Finland, the global political
situation and the economic and currency crisis in Russia have a negative impact
on the outlook for Finland and contribute to increased uncertainty.
In Finland, consumer confidence has remained at a below-average level for a
long time. Purchasing power has decreased, and consumption habits are changing.
However, unemployment rates have weakened relatively little in this difficult
economic situation.
In the long term, urbanisation, decrease in the average family size and
immigration support an increase in the demand for rental housing in SATO's
operating regions, especially in the Helsinki Metropolitan Area. Therefore,
SATO continued active investments. SATO's investments remained close to the
previous year's level, amounting to approximately €174 (191) million.
Interest towards investing in housing increased in the market, and new housing
funds were established which created more competition. The deterioration in
consumers' purchasing power and increased competition were reflected in SATO's
rental operations, but after the spring, the situation improved significantly.
Consumers' home-purchasing intentions were below average. The number of housing
units for sale - both new constructions and old apartments - has reached its
lowest level in over two years. The volume of apartment sales in owner-occupied
homes decreased for the second consecutive year. During the last five years,
price development in the Helsinki Metropolitan Area has clearly differentiated
from that in the rest of Finland.
Demand for rental apartments in St. Petersburg continued to be good, and the
rental occupancy rate improved from the previous year. In the spring, SATO
decided to refrain from making new investment decisions concerning St.
Petersburg until the Russian economy and political climate become more stable.
The weakening of the Russian rouble decreased the euro-denominated value of
apartments owned by SATO in St. Petersburg and, consequently, weakened SATO's
result.
Segment division
In its financial reporting, the Group's rental housing is divided into two
segments - SATO business and VATRO business.
SATO business includes rental housing free of restrictions and entailing a
shorter period of restriction, as well as the construction of owner-occupied
housing. VATRO business deals with rental housing with longer periods of
restriction.
Changes in reporting practices 2015
According to the Group's strategy, new investments in the 2000s have been
allocated to SATO business. As the significance of VATRO business has decreased
to less than eight per cent, SATO decided to abandon the current segment
division in the reporting for 2015. As of 1 January 2015, SATO's business will
be reported as one entity.
As of the financial year 2015, SATO will change the presentation of its profit
and loss account from type of expense-specific to function-specific reporting.
The change aims at providing investors with more accurate information on the
allocation of income and expenses to different business areas.
Net sales and profit
In the year under review, Group net sales were €312.3 (311.5) million. €271.8
(272.4) million was attributed to SATO business and €40.5 (39.1) million to
VATRO business.
An increase in the number of investment properties, efficient rental business
and an increase in the level of rents improved rental income by 6.0 (7.9) per
cent. Its share of the turnover was €243.2 (229.5) million.
The share of SATO business of the result before taxes was €145.4 (135.2)
million, and that of VATRO business €6.8 (5.6) million.
The Group's operating profit was €191.3 (178.3) million.
The Group's profit before taxes grew by 8.1 (16.1) per cent to €152.2 (140.8)
million. The improvement in profit was a result of increased rental income, low
financing costs, good cost management and a larger positive change in fair
value than in the previous year.
The fair value change of rental properties included in the profit was €63.8
(59.6) million. The change was attributed to the positive effects of housing
price development, increase in rental income and expiry of restrictions on some
properties, and the negative effects of the weakening rouble.
The rise in rouble-denominated prices in St. Petersburg increased the value of
SATO's housing portfolio by €3.1 million; however, the deterioration of the
exchange rate of the rouble decreased the St. Petersburg housing portfolio's
value by €41.2 million. The net profit effect of these changes on SATO's result
was €38.1 million.
More information on the determination of the fair value is available in section
11 of the notes to the financial statements.
Financial position
The consolidated balance sheet total on 31 Dec 2014 was €2,801.6 (2,595.8)
million. Shareholders' equity was €892.2 (821.7) million. Shareholders' equity
per share was €17.55 (16.16).
The Group's equity ratio was 31.8 (31.7) per cent. The targeted equity ratio is
at least 25 per cent.
The return on equity for 2014 exceeded the targeted level of 12 per cent and
was 14.0 (15.5) per cent. Return on investment was 7.7 (7.7) per cent.
Finance
The financial situation of the Group and parent company was good throughout the
financial year. The Group's financial assets at year-end were €31.8 (46.4)
million.
Interest-bearing liabilities at the end of the financial period were €1,584.9
(1,501.3) million, of which market rate loans totalled €1,208.7 (1,106.5)
million. A breakdown of loans is given in section 24 of the notes to the
financial statements.
At the end of the review period, the average interest rate for loans was 2.6
(2.9) per cent. Net financing expenses during the review period totalled €39.1
(37.6) million.
During the financial year, new long-term financing was raised in the amount of
€150.9 million in total. The loan-to-value (LTV) ratio without the VATRO
segment was 56 (56) per cent at the end of the review period.
The average maturity of the loan portfolio was 5.3 (5.7) years, excluding
state-subsidised ARAVA loans.
In accordance with the Group's financial policy, efforts will be made to keep
the share of fixed-rate loans over 60 per cent of all loans. At the time of
closing the books, the share was 67.3 (67.4) per cent.
During the financial year, the computational effect of changes in the market
value of hedges on shareholders' equity was €-18.2 (11.5) million.
The Group's cash flow during the year under review was good. Cash flow from
business operations was boosted by the improvement in operating profit by
roughly €13.0 million.
Group structure
SATO Corporation is the parent company of the SATO Group. At year-end, the
parent company had a total of 7 (7) subsidiaries engaged in business.
Total housing portfolio and fair value
On 31 Dec 2014, SATO owned a total of 24,173 (23,828) homes, 20,092 (19,741) of
which belonged to the SATO business and 4,081 (4,087) to the VATRO business.
During the review period, the number of homes increased by 345.
The fair value of rental property totalled €2,528.0 (2,316.0) million, and the
change in fair value was €212.0 (228.0) million. Rental income development,
investments, market price development, divestments, the change in the exchange
rate of the rouble and the expiry of restrictions on some properties affected
the value development.
The Helsinki Metropolitan Area accounts for approximately 80 per cent in
housing property, whereas Tampere, Turku, Oulu and Jyväskylä jointly account
for approximately 16 per cent, and St. Petersburg for roughly 4 per cent.
Investments in rental properties and divestments
Investment activities create growth. Investments are mainly targeted at the
Helsinki Metropolitan Area, where demand for rented homes and prospects for
appreciation are seen to be best. In the year under review, investments
totalled €174.1 (190.6) million, which is about 7 per cent of the value of
investment properties. To renew the housing stock, the aim is to target an
average of 70 per cent of investments in new housing. The share of new housing
was €117.4 (124.6) million, which was about 68 per cent of all investments.
During the year under review, the number of rented homes acquired in Finland
was 706 (685), of which 563 (208) were new apartments. At year-end, 571 (1,029)
new rental apartments were under construction in Finland. At the end of the
financial year, the company had binding contracts for acquisitions worth €58.4
(103.5) million in Finland.
The most significant investment was in 126 privately financed rental homes in
the Helsinki Metropolitan Area, bought from ICECAPITAL Housing Fund I Ky. The
value of the transaction was €23.1 million.
The sum used for renovating the housing stock and improving the quality of
apartments in Finland was €49.0 (43.4) million.
During the financial year, 444 (463) homes were divested in Finland for a total
of €25.9 (22.8) million. The divested homes were, for the most part, located
outside SATO's targeted business area.
Renting
Efficient rental business secures rapid availability for people who need a home
and a steady trend in cash flow for the company. The rental service is mainly
taken care of by SATO itself.
The financial rental occupancy rate in Finland was on a good level, averaging
97.2 (97.7) per cent, and occupant turnover averaged 37.3 (36.3) per cent. The
average rent per square metre for rented homes during the period under review
was €15.35 (14.75)/month.
According to SATO's estimate, the net rental income improved from the previous
year and totalled €148.8 (137.3) million. Continued good demand, an increased
number of homes, cost-efficient maintenance work and improvements in rental
business and customer service supported the increase in net rental income.
Property development
The company's own land inventory brings a competitive edge by enabling the
development of rental apartments, which respond best to demand.
The book value of the Group's building land inventory at the end of the review
period was €71.6 (88.3) million. During the review period, new plots were
acquired to a value of €5.3 (7.5) million. In addition, land reservations were
made for the implementation of approximately 12,000 square metres of floor
area, i.e. around 160 apartments. The book value of the building land inventory
sold and transferred to housing construction during the year was €13.7 (25.1)
million.
Plan development projects were underway, for example, in Perkkaa and
Niittykumpu in Espoo, Martinlaakso in Vantaa, Verkkosaari in Helsinki, and the
centre of Kirkkonummi.
In the Helsinki Metropolitan Area, many commercial premises are empty or
becoming empty. SATO has initiated several reviews on converting commercial
properties into rental apartment use.
During the financial year, a total of 549 (232) rental properties and 223 (226)
owner-occupied homes were completed in Finland. On 31 Dec 2014, there were 571
(1,029) rental properties and 159 (292) owner-occupied homes under
construction.
Production of owner-occupied housing generates synergies in housing
investments, and apartments most suitable for renting are acquired as
investment properties. At year-end, the completed, unsold owner-occupied homes
numbered 94 (65) and those under construction numbered 94 (235), with a total
acquisition value of €90.9 (120.6) million. SATO's owner-occupied homes are
usually not sold until after completion, in accordance with the SATO OwnerHome
concept.
Business in St. Petersburg
The housing market in St. Petersburg is similar in size to the Finnish housing
market. The expansion of investments in St. Petersburg, initiated in 2007, has
improved SATO's possibilities for growth. The share of the Group's housing
property in St. Petersburg is limited to 10 per cent.
At the end of the year under review, the fair value of the St. Petersburg
housing portfolio totalled €101.7 (112.4) million, which equals 4 per cent of
SATO's housing property value. At year-end, binding contracts for acquisitions
totalled €10.7 (23.7) million in value. SATO had a total of 313 (237) completed
apartments and 217 (219) units under construction in St. Petersburg.
The rental occupancy rate for apartments averaged 92.6 (90.8) per cent during
the year under review. The average rent per square metre for rented homes
during the review period was €20.13 (23.90)/month. The decrease in rents was
affected by the weakening of the exchange rate of the rouble.
The making of new investment decisions concerning St. Petersburg will depend on
the development of the Russian operating environment.
Customer relationships
In order to create a competitive edge, SATO is investing in improving its
customer relationships. The customer experience development is measured in
terms of the Net Promoter Score, NPS. In the year under review, the NPS score
was 26 (23). The target is to achieve an NPS value of 40 by the end of 2020.
In order to improve the customer experience, the quality of rental homes and
encounters with customers are being enhanced. Further focus areas include
digital services with an increased number of language versions available. The
number of customer interface personnel has been increased, and the employees'
competencies have been improved. During the year under review, the contents of
services provided by building management and maintenance partners was revamped,
and more harmonised customer satisfaction targets were defined.
Corporate responsibility
The 2014 annual report is the first one in which SATO features sustainability
reporting according to the GRI reporting guidelines. The report describes the
company's economic, environmental and social sustainability based on a
materiality assessment made in 2013.
Corporate responsibility is embedded in everyday work at SATO. Our
sustainability policy is available on our website
www.sato.fi/corporate-responsibility
In 2015, we will continue developing our operating models and indicators by
participating in The Global Real Estate Sustainability Benchmark (GRESB)
process.
Environmental impacts
The control of energy consumption plays a key role in the prevention of harmful
environment impact created by housing. In order to support the climate-related
targets set by itself and by society, SATO is committed to the property
sector's energy-efficiency agreement included in the state's action programme
for rented home communities (VAETS) and to a climate partnership agreement with
the City of Helsinki. SATO's short-term goal is to reduce the specific
consumption of heat by 15 per cent by 2016. Efforts are being made to achieve
this target already in 2015.
SATO has also set longer-term goals, which account for the impacts of tightened
construction regulations, renewal of the building base and improvement of
energy efficiency. According to these goals, SATO is aiming to decrease the
specific consumption of heat and water in properties by 20 per cent by 2020.
The reference year is 2009. The consumption of electricity should be kept at
its current level.
In the year under review, the specific consumption of heat decreased by 2.2 per
cent, and the consumption of electricity decreased by 1.8 per cent compared to
the 2013 level. The specific consumption of water increased 1.7 per cent
compared to the 2013 level.
Specific emissions generated by SATO's rental apartments totalled 40.4 (45.5)
kilograms of carbon dioxide equivalent per square metre of living space. The
aim is to reduce greenhouse gas emissions by 10 per cent by 2020
The Group's environmental programme can be read in its entirety on the website
www.sato.fi/ymparisto-ohjelma (currently in Finnish only).
Research and development
Development work was targeted at increasing the understanding of customers and
developing product concepts, improving electronic services and renewing IT
systems. During the year under review, SATO spent a total of €0.8 (1.8) million
on research and development, which is equivalent to 0.3 per cent of turnover.
Risk management
SATO's risk management is based on guidelines for corporate governance, as well
as on the systematic risk assessment embodied in the strategic and annual
planning process. To control and mitigate risks, procedures will be initiated
if necessary to prevent the realisation of risks or to attempt to enhance the
monitoring of a specific subdivision. An internal audit is carried out by an
independent party, and auditing is targeted in accordance with the risk
assessments of the strategic and annual planning process.
The development of SATO's result has been steady in the last few years. The
reporting practice was changed starting from 1 Jan 2014 so that the change in
the fair value of investment properties is presented in the profit and loss
account. Due to this, changes in exchange rates can increase fluctuations in
results concerning the price level of apartments and housing portfolio in St.
Petersburg.
The main risks of selling and leasing homes concern economic cycles and changes
in demand. SATO's Board of Directors has set euro limits to the total amount of
unsold homes and land inventory.
A positive trend in the value of the housing and the rentability of the homes
portfolio are secured by concentrating on the urban centres of growth.
Systematic repairs help to enhance the quality of the Group's housing
portfolio. Changes in requirements for energy efficiency and environmental
aspects may increase the cost of repairs to SATO's investment properties.
Business in St. Petersburg involves risks related to the business environment,
as well as a currency risk. Transaction exposure in foreign currency related to
the acquisition of properties is hedged in accordance with the Group's
financing policy. The proportion of investments in St. Petersburg has been
restricted relative to the Group's total housing investments.
To secure the continuity of services purchased from partners, operations have
been distributed between a number of service providers.
In accordance with the Group's financial policy, efforts will be made to keep
fixed-rate loans over 60 per cent of all loans. The Group has set an equity
ratio target.
The Group's risks, in respect of property, business interruption and liability
for damages, are secured with appropriate insurance coverage.
Further information on risk management is given on the website
www.sato.fi/riskmanagement.
Pending lawsuits
Lawsuits and countersuits between the contracting parties are pending in
connection with the implementation of and invoicing for an owner-occupied
property built in the Arabianranta district of Helsinki. Also, a ruling has
been applied for, from the Supreme Administrative Court, concerning the Group
contribution to one SATO Group company. Shares and share capital
The share capital of SATO Corporation, as per 31 Dec 2014, was € 4,442,192.00,
and the number of shares was 51,001,842. The company has a single series of
shares. The shares are in a book-entry securities system maintained by
Euroclear Finland Ltd.
SATO Corporation holds 160,000 company shares. These shares represent 0.3 per
cent of all shares.
The members of the SATO Corporations Board of Directors, the President and CEO
and his deputy held a total of 537,812 shares on 31 Dec 2014.
Personnel
At the end of 2014, the Group had 169 (156) employees. There were 156 (145)
employees on permanent contracts and 13 (11) on fixed-term contracts. The
number of Group personnel averaged 165 (156) during the year.
In order to improve the chances of youth employment, a total of 22 people aged
15 to 28 year-olds were employed in summer work. The aim was to provide young
people with opportunities to obtain work experience.
Board of Directors, President and CEO, and auditors
Serving on SATO's Board of Directors until the annual general meeting of 5
March 2014 were Juha Laaksonen (chairman), Jorma Kuokkanen (Vice Chairman), and
ordinary members Timo Hukka, Vesa Immonen, Tarja Pääkkönen and Niina Rajakoski.
The annual general meeting, held on 5 March 2014, confirmed the number of
members on SATO Corporations
Board of Directors as seven. Juha Laaksonen was re-elected as Chairman of the
Board, and Timo Hukka, Vesa Immonen, Niina Rajakoski and Tarja Pääkkönen as
members of the Board. Esa Lager and Ilkka Tomperi were elected as new Board
members. The Board elected, from its own number, Esa Lager as Vice Chairman of
the Board of SATO Corporation.
SATO Corporation's extraordinary general meeting, on 23 October 2014, decided
to confirm the number of SATO Corporation Board members as eight. The general
meeting decided to elect Andrea Attisani as a new member as of 23 Oct 2014.
In 2014, the Board of Directors convened on 11 occasions. Board work is
supported by two committees comprised of Board members: the Nomination and
Remuneration Committee and the Audit Committee.
Erkka Valkila, B.Sc. (Eng.), has served as President and CEO. Tuula Entelä,
LL.M., B.Sc. (Econ.), is deputy to the President and CEO.
The company's auditors were KPMG Oy Ab, a firm of Authorised Public
Accountants, with Lasse Holopainen, APA, as the auditor in charge.
Members of the Corporate Management Group
The Corporate Management Group was comprised of President and CEO Erkka
Valkila; Vice Presidents Tuula Entelä and Pasi Suutari; Director, Customer
Relationships and Communications Monica Aro; and Chief Financial Officer Esa
Neuvonen.
Outlook
The growth of the Finnish economy and general confidence are estimated to
remain weak. In SATO's operating environment, business is most affected by
consumer confidence, the rent and price development of apartments and interest
rates.
The demand for rental housing is expected to continue to be good in SATO's
areas of operation and mainly be targeted at small homes. Approximately 80 per
cent of SATO's apartments are located in the Helsinki Metropolitan Area, where
rent and price development is steadiest. SATO's supply responds to the need for
small homes; the average surface area of SATO's apartments is 57 square metres.
Increasing urbanisation and immigration are creating good prospects for
continuing investments in Finland. Due to continuing demand and new
investments, SATO's net rental income is estimated to improve compared to last
year. Rent rises, however, are estimated to be more moderate than in the last
few years.
Interest rates are expected to remain low, which has a positive effect on
SATO's business.
According to forecasts, the Russian economy will decline as a result of the
economical sanctions placed because of the crisis in Ukraine, and the
decreasing price of oil. Approximately 4 per cent of SATO's housing portfolio
is located in St. Petersburg. SATO will refrain from new investment decisions
until the Russian economy and political situation stabilise.
Board's proposal for capital repayment and the disposal of profits
The parent company's distributable assets on 31 Dec 2014 were €102,522,199.06,
of which the net profit for the financial year was €26,169,102.61. The number
of issued shares in the company in 2014 conferring entitlement to dividend for
2014 is 50,841,842. According to dividend policy, the aim is to distribute
stable, competitive dividends.
The Board of Directors will propose to the annual general meeting that as
capital repayment and dividends, €0.62 per share be paid, in total
€31,521,942.04 be paid as capital repayment and dividends. The Board of
Directors will propose to the annual general meeting that, based on the balance
sheet of 31 Dec 2014 confirmed by the meeting, capital repayment of €0.42 per
share be paid. The capital repayment will be paid from the invested
unrestricted equity fund. Moreover, the Board of Directors proposes to the
annual general meeting that dividend be paid on the profit for the financial
year of €0.20 (0.18) per share, being a total of €10,168,368.40, and that
€16,000,734.21 be posted to retained profits.
Capital repayment and dividend will be payable to a shareholder who, on the
date of record for payment, 5 March 2015, has been entered in the register of
the company's shareholders, maintained by Euroclear Finland Ltd. According to
the proposal, capital repayment and dividend be payable on 20 March 2015.
Since the end of the financial year, there have been no significant changes in
the company's financial status.
Main shareholders 15 January 2015
Varma Mutual Pension Insurance Company 22.8%
APG Asset Management NV 22.8%
Ilmarinen Mutual Pension Insurance Company 16.1%
Elo Mutual Pension Insurance Company 12.9%
Suomi Mutual Life Assurance Company 6.2%
The State Pension Fund 5.0%
LocalTapiola Group
4.8%
Pohjola Insurance Ltd 2.5%
Mandatum Life Insurance Company Ltd 1.7%
The Finnish Construction Trade Union 0.8%
Others
4.3%
On 15 January 2015, the number of shareholders subscribed in the book-entry
system was 38. The turnover of shares during the review period amounted to 31.8
per cent.
Key financial indicators, the Group
31.12.2014 31.12.20 31.12.20 31.12.20 31.12.20
13** 12** 11** 10**
KEY FINANCIAL INDICATORS
Net sales, MEUR 312 312 287 232 193
Operating profit, MEUR 191 178 160 209 167
Net financing expenses, MEUR -39 -38 -39 -35 -33
Profit before taxes, MEUR 152 141 121 174 133
Balance sheet total, MEUR 2,802 2,596 2,360 2,167 1,805
Shareholders' equity and 892 823 693 635 534
non-controlling interest,
MEUR
Liabilities, MEUR 1,909 1,773 1,696 1,554 1,289
Return on invested capital, 7.7% 7.7% 7.7% 10.9% 10.3%
% (ROI)
Return on equity, % (ROE) 14.0% 15.5% 13.5% 22.8% 20.8%
Equity ratio, % 31.8% 31.7% 29.4% 29.5% 29.5%
Investment property, MEUR 2,528 2,316 2,088 1,899 1,657
Gross investments, MEUR 174 191 160 150 104
as percentage of net sales 55.7% 61.2% 55.7% 64.7% 54.1%
Personnel, average*** 165 156 152 137 129
KEY INDICATORS PER SHARE
Earnings per share, EUR 2.37 2.34 1.78 2.63 2.01
Equity per share, EUR **** 17.55 16.16 13.72 12.59 10.48
Number of shares, million * 50.8 50.8 50.8 50.8 50.8
KEY FIGURES ACCORDING TO
EPRA RECOMMENDATIONS AND
OPERATIONAL CASH EARNINGS
EPRA Earnings, MEUR 65.1 62.7 44.4 43.2 35.5
EPRA Earnings per share, EUR 1.28 1.23 0.87 0.85 0.72
EPRA Net Asset Value, MEUR 1,120 1,007 900 825 685
EPRA Net Asset Value per 22.04 19.80 17.71 16.23 13.47
share, EUR
Cash earnings, MEUR 72.9 66 62 52 50
Cash earnings per share, EUR 1.43 1.30 1.21 1.02 0.98
*) 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
minority interest
Segment information
2014 SATO- VATRO- Total
business business
------------------------------------------------------------------------
Million euros
------------------------------------------------------------------------
Net sales 271.8 40.5 312.3
------------------------------------------------------------------------
Net rental income on the housing portfolio 126.1 22.7 148.8
------------------------------------------------------------------------
Profit before taxes 145.4 6.8 152.2
------------------------------------------------------------------------
Gross investments in rental apartments 174.1 0 174.1
------------------------------------------------------------------------
Fair value of rental apartments 2,336.2 191.8 2,528.0
------------------------------------------------------------------------
Rental apartments, number 18,915 4,081 22,996
------------------------------------------------------------------------
Shared ownership apartments, number 1,177 0 1,177
------------------------------------------------------------------------
Completed rental apartments, number 625 0 625
------------------------------------------------------------------------
Completed owner-occupied properties, number 223 0 223
------------------------------------------------------------------------
Additional information:
Erkka Valkila, President & CEO, tel. +358 201 34 4001, mobile +358 50 62 050
Esa Neuvonen, CFO, tel. +358 201 34 4005, mobile +358 40 5001 003
www.sato.fi
SATO is one of Finland's leading corporate investors in housing. SATO's aim is
to offer comprehensive alternatives in rental housing and an excellent customer
experience. SATO owns a total of approximately 24,200 rental apartments in the
largest Finnish urban 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 2014 were €312.3 million, operating profit €191.3
million and profit before taxes €152.2 million. SATO's investment properties
have a value of roughly €2.5 billion.
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