Senate Group’s financial statements: savings for agency facility costs, good result from property sales, construction at record levels
In 2024, Senate Group, which is responsible for state-owned properties, reached the targets set by the Parliament and the Ministry of Finance. Property sales were highly successful in an exceptionally weak property market. During the year, facility solutions were agreed that will save agencies €29 million in their facility costs. Government construction projects again rose to a new record level.
Group revenue was €997 million, and the result was €106 million, which was well above target due in particular to successful sales of properties no longer needed by the government. Property sales were highly successful despite a weak market and property transactions were valued at €96 million. Government rents accounted for €23.5 million of the Group result, which means property sales and income from non-government customers accounted for almost 80% of the result. In addition, Group cost control was also very successful.
Government construction investments again reached a new record level. Investments were particularly focused on the premises of the security authorities. During the year, Senate Group spent €759 million on property investments and construction. Senate Properties accounted for €520 million of this and Defence Properties Finland for €239 million.
Several projects by the internal security authorities are underway at the same time, as well as the Finnish Defence Administration’s major investments in national defence capability and the infrastructure required for it, as the Finnish Defence Forces, Border Guard, Police and the Prison and Probation Service of Finland, among others, have received funding for large-scale facility projects. The majority of Defence Properties Finland’s investments are in critical infrastructure projects of the Finnish Air Force and the Navy. Taking into account the construction timeline and scale, construction will continue at a record level for the next few years.
Savings and rent reductions for government agencies
Senate Group will reduce the premises costs of government agencies and institutions by around €40 million during 2025–2026, which will help government agencies and institutions to reach the productivity programme targets set by the government.
In 2024, space solutions were agreed with customers to deliver a total of €28.8 million in annual savings in the agencies’ facility costs. The savings target set for the whole of 2024 was clearly exceeded, and the agreed savings amount is the highest ever for central government.
The most important way to achieve savings in premises costs is for agencies that use the same type of office premises to move to shared central government working environments, which are being implemented across Finland. During 2024, shared work environments were completed in Kouvola, Lahti, Lappeenranta and Pori. At year-end, there were already about 8,500 people working in shared work environments.
More efficient operations deliver cost savings
According to market benchmarking based on data collected by KTI, an independent real estate market research and expert office, the average rent level for standard office space in Senate Properties is about 13% lower than the market rent level in similar areas nationwide.
Launched in 2022, the Energy Saving Programme has delivered significant savings in government energy costs. Measures introduced under the Procurement Development Programme launched in summer 2023 and the impact of the exceptional downturn in construction have delivered savings of €86.6 million in procurement. The measures will continue this year as well.
In the state’s gross rent model, rents are used to cover property construction costs, maintenance and other costs. In order to curb the increase in construction costs and find even better and more cost-effective solutions in cooperation with our customers, we are introducing a new construction project management model. Curbing construction costs directly affects the future rent costs of central government actors and in turn government expenditure.
“The year 2024 was a record year in many respects: a year of record construction, record high savings in facilities agreed with agencies and our customer satisfaction rose to the highest level in several areas. Property sales performed really well despite continued very weak market conditions. My warmest thanks to our employees and our customers. Strong cooperation has delivered such results”, says Tuomas Pusa, Senate Group President and CEO.
Read the financial statements and annual reports:
Senate Properties’ financial statements and annual report (in Finnish, pdf)
Defence Properties Finland’s financial statements and annual report (in Finnish, pdf)
For more information:
Senate Properties, Tuomas Pusa, Senate Group President and CEO, tel. +358 50 390 2143
Defence Properties Finland, Matias Warsta, CEO, tel. +358 294 831 000
