Stronger customer focus

SATO renewed its strategy in 2016. We introduced an even stronger customer focus in our operations, aiming at the well-being of customers. Our occupancy rate improved considerably and our external turnover rate decreased in the review period.

In spring 2017, we introduced our Customer First service model, and its positive effects began to show before the end of the year.

Our occupancy rate increased, driven by customer focus

  • Our customer focus was reflected in our occupancy and external tenant turnover rates.
  • The economic occupancy rate strenghtened through each quarter, from 96.1 per cent in the first quarter to 97.5 per cent in the last. The full-year occupancy rate in Finland was 96.8 (95.6) per cent.
  • External tenant turnover decreased to 28.9 (32.7) per cent.

Improved occupancy rate shows positively in net sales and net rental income

  • Net revenue grew by 6.6 per cent to EUR 280,1 (262,7) million.
  • Net rental income improved by 12.7 per cent to EUR 188,4 (167,1) million.

Our equity ratio continued to improve

  • Capital invested in business operations was EUR 3,342.9 (3,195.6) million.
  • When evaluating business profitability, a key indicator is return on investment, which was 7.1 (9.1) per cent.
  • The average interest rate decreased to 2.2 (2.5) per cent.
  • Equity ratio exceeded our target of 35 and was 38.2 (35.2) per cent.
  • Solvency ratio was 52.1 (54.3) per cent. In December 2017 the Board of Directors approved the long term goal of solvency ratio not to exceed 50 per cent. The previous goal was less than 70 per cent.

Proportion of Financing free of real securities is increasing strongly

As early as the third quarter of the review period, we achieved one of our goals for the strategy period 2017–2020: at least 60 per cent of our assets should be free of real securities.

The proportion of financing free of real securities increased in the review period to 66.3 per cent. Part of this is due to new types of financial instruments, such as unsecured bonds, but a new type of cooperation with multiple banks also played a significant role. During the review period, our financing structure continued to change through agreements signed with Swedbank, OP Corporate Bank, Aktia and EIB on loans free of real securities. At the same time, our company’s solvency ratio decreased. This, together with the changes in the financing structure, will give us more opportunities to make use of diverse financial markets.

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Balance sheet
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Equity ratio
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External tenant turnover

 

 

Stories & activities

Customer service

The best service, from people to people

SATO takes customer service seriously – and for a good reason. The quality, ease and safety of living have a major impact on people’s well-being.

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