In Finland, the most popular relocation destinations are the Helsinki metropolitan area, Tampere and Turku. We are increasing our offering in these locations in particular. We also serve our customers in St Petersburg. At the end of 2017, we had 25,259 SATO homes in Finland and 534 in St Petersburg.
Urbanisation increases demand for services and creates new jobs. The mobility of labour and increasing immigration, as well as the well-being of individuals and society, call for a sufficient, multifaceted supply of homes for various needs.
From our selection of 25,793 apartments, city residents easily find a home that meets their requirements. We are also continuously developing new housing concepts for changing needs.
“The home is very modern and in a good condition, and the surfaces are carefully designed. It’s not just a rental apartment – it’s my home. Its layout ensures the efficient use of space. And I have easy access to services and public transport.”
–SATO Pulssi panelist
In spring 2017, we asked our SATO Pulssi resident panel about the most important factors affecting the selection of a rental home. Location was the key criterion. Other important considerations were price and the condition and layout of the apartment, as well as public transport connections.
Location also plays a key role in the development of the value of apartments. The sizes and locations of the apartments that we own, acquire and build meet the demand, now and in the future. Easy access to public transportation and services also helps us reduce the growth of our operations’ carbon footprint.
SATO RentHome is the answer when customers are looking for a long-term home from a reliable lessor. At the end of 2017, we owned 25,793 SATO RentHomes. The rental income from these homes and the development of their value lay the foundation for the profitability of our business operations.
In recent years, the proportion of living costs out of total income has increased, as has demand for smaller apartments. Instead of space, people appreciate functional solutions, a balcony and high-quality surface materials. The average size of SATO RentHomes is 55m², and 70.9 % of the homes are studio apartments or one-bedroom apartments.
We want our customers to enjoy living in our rental apartments – their homes. We monitor the need for maintenance during regular inspections, and we ensure that the building and yard are kept clean and in good condition. The service manager of a building coordinates renovation and repair operations in cooperation with the infrastructure manager and other SATO employees.
Our residents can also renovate their homes using SATOs DIY renovation kit, which includes optional materials and tools for a facelift.
In nearly all SATO RentHomes, the rent includes a high-speed broadband subscription, and residents are allowed to have pets. Lease agreements signed after 2008 have a non-smoking condition. Smoking is also prohibited on balconies and in outdoor areas in new buildings.
|Number of properties||751||742|
|Total number of apartments||25,793||25,344|
|Surface area of apartments, m2||1,420,716||1,408,407|
|Average size of apartments, m2||55.1||55.6|
|Fair value of apartments, MEUR||3,564.8||3,383.2|
|Net rental income from apartments, MEUR||188.4||167.1|
|Growth during the review period, %||12.7||10.1|
|Net rental income from apartments, %||5.6||5.7|
At the end of 2017, SATO completed its pilot project in the Martinlaakso district of Vantaa in Finland: 68 SATO StudioHomes, with a common living room that attracts residents to spend time together and engage in activities, a laundry room and a top-floor sauna with a terrace.
SATO has 534 apartments in St Petersburg. SATO’s buildings are located close to the centre of St. Petersburg and constructed in the 21st century. During the reporting year, the average occupancy rate of our apartments in St. Petersburg increased to 89.6 (82.2) per cent.
Approximately half of our apartments are rented furnished. As a result of the decreased value of the rouble, euro-denominated rents decreased, being EUR 14.86 (15.33) per m2 per month at the end of the year.
The housing market in St. Petersburg equals the Finnish housing market in size. SATO has operated in St. Petersburg since 2007. The share of investments in Russia is limited to a maximum of 10 per cent of the Group’s housing assets. For the time being, SATO will refrain from making new investment decisions in Russia.
SATO does not have binding purchase agreements in St. Petersburg. No new apartments were completed in St Petersburg in the review period, and no new apartments are under construction. At the end of the review period, the value of SATOs housing assets in St Petersburg stood at around EUR 118.9 million. The impact of the ruble's price performance during the year 2017 was EUR -9.5 million, and the effect of the change in the change in value was EUR -9.8 million.
|Rental apartments in St Petersburg||2017||2016|
|Completed on 31 December, units||534||534|
|Completed during the year, units||0||74|
|Under construction on 31 December, units||0||0|
|Value of housing assets, MEUR||118.9||128.6|
|Investment commitments, MEUR||0||0|
|Average rent, including furniture, EUR/m2/month at the end of the review period||14.86||15.33|
|Economic occupancy rate, %||89.6||82.2|
|Turnover of rental apartments, %||53.6||39.1|
After the review period SATO has sold all the shares in SATO HotelHome Ltd to Majoituspalvelu Forenom Oy. The parties closed the transaction on 1 February 2018. Following the transaction, SATO will focus on developing its rental housing offering, as well as diversify its housing solutions and new housing services for consumers in growing cities.
The fully packed StudioHome common area is buzzing on a Tuesday evening in December. Olli Järvenkylä, the building’s community manager, is preparing his presentation.
The morning has been busy for Service Manager Piia Matilainen. It’s only ten o'clock, but she has already checked a renovated SATO home…