Sustainability with a long-term perspective

SATO makes long-term investments in homes: the life cycle of the built environment in Finland is up to 80–100 years. We take care of the financial sustainability of our operations, and take responsibility for our financial impact on our stakeholders and society.

As a responsible, well-managed and profitable company, SATO is able to operate sustainably and transparently. For us, financial sustainability means good financial management and resource efficiency, as well as the generation of a steady financial benefit over the long term for stakeholders, including shareholders, employees, customers, municipalities, the state, and goods suppliers and service providers and their employees.

Cash flow


Carefully thought-out goals and investments

At the end of 2017, we updated our long-term financial targets. We want to strengthen the company’s balance sheet and decrease its loan-to-value ratio from 70% to 50% or under. We also want to improve our investment grade credit rating and keep our annual return on equity at a minimum of 12%.

Financing plays a key role in creating growth for SATO. A strong balance sheet ensures the availability of a diverse range of funding on favourable terms.

Financial growth is driven by investments. Investments create jobs, and the income obtained from this work is used to buy products and services or to make new investments. We support growth opportunities in business and industry by offering rental apartments in the largest growth centres. In the review period, SATO invested around EUR 156 million in rental apartments.

Combating the grey economy

Our operations comply with the Finnish Corporate Governance Code and SATOs internal guidelines, principles and policies, which include guidelines for combating the grey economy.

To prevent the grey economy, we only work with companies registered in the Reliable Partner service at tilaajavastuu.fi. In line with the Occupational Safety and Health Act, everyone working at SATOs construction sites must have a photo ID with a tax number.

SATO's tax footprint


We take good care of our assets

The development of the value of SATO homes is key to our business operations. We focus on areas and apartment sizes that will grow in demand over the long term. We repair our apartments in accordance with the life-cycle principle in order to maintain or increase their operational and financial value.

Investment in apartment and building repairs: EUR 44.3 million.

International dialogue with investors

SATO’s investor meetings attracted both Finnish and international (mainly European) investors interested in our business. Particular interest was paid to the following matters.

What is SATO’s share of the Finnish rental market?

Out of a total of 2.6 million permanently occupied apartments, rental apartments amount to 850,000, about half of which are privately owned. SATO’s market share of the rental apartments in Finland is about three per cent and in the largest cities about six per cent.

Has SATO thought about increasing green finance?

SATO does its part in supporting sustainable urbanisation in Finland. In November 2016, we signed an agreement with the European Investment Bank (EIB) about a long-term funding arrangement to finance energy efficient investments. We are ready to collaborate in environmentally friendly projects in the future, too, while striving to enable diverse sources of funding for our projects.


Transparent and award-winning communications

SATO provides its stakeholders with timely and transparent information about its operations. All bulletins concerning SATOs operations are released simultaneously via the publication system of Nasdaq Helsinki Ltd, to the media, and on the Irish Stock Exchange, and on our website.

Once a year, we publish a combined annual report and sustainability report to provide comprehensive information about our business operations, value creation, sustainability and finances. In the review period, the Finnish Association of Communication Professionals (ProCom) selected SATOs annual report as the best report issued by an unlisted company.

Stories & Activities

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Happy and social living in StudioHome

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…

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Stories & Activities

Asumisen tuet

Housing support from the resident’s perspective

Pellervo Economic Research (PTT) studied housing subsidies at the request of SATO, the City of Espoo and Finnish Tenants.

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