Defence Properties Finland’s financial statements 2025: Investments rose to €356 million and rents were reduced by €7 million
The number of investment and construction projects has continued to show strong growth compared to previous years. In 2025, a total of around €356 million was spent on investments compared to about €240 million in 2024. Investments have tripled compared to the level seen in the early 2020s. Investments will continue to grow in 2026, and the forecast indicates that they will remain at a level of about €0.5 billion annually until the end of the decade. The exceptionally high level of investment will significantly increase Defence Properties Finland’s interest costs, increase its exposure to interest rate risk and may lower the level of equity to an unsustainable level from the point of view of the central government’s rent system. Senate Group has proposed to the Ministry of Finance that the equity of the unincorporated state enterprise be strengthened.
The biggest investment projects relate to the infrastructure required by the F-35 fighter programme and by the development of shelter facilities.
”Construction of the F-35 fighter infrastructure has progressed to schedule and within budget. We have continued to receive very positive feedback from our international partners on our ability to build challenging infrastructure in accordance with the engine manufacturer’s strict requirements and our ability to stay on schedule. Cost management has been exceptionally successful even by international standards,” says Matias Warsta, CEO of Defence Properties Finland.
Also barracks renovations have also progressed to plan, with the projects in Pirkkala and Kirkkonummi completing in 2025. Additionally, barracks projects were also at the planning and construction stages in Santahamina, Raasepori, Sodankylä, Hattula and Hamina.
Highlights in 2025
- Preparedness and readiness were systematically developed. The focus was on improving shelter usability and developing special facilities for clients. Defence Properties Finland has increased its own preparedness capability and expertise by arranging or taking part in approximately 40 preparedness and readiness exercises.
- In 2025, work continued on the introduction of a new project management model for the management of construction projects. Customer satisfaction with project management averaged 3.5 (on a scale of 1–4), which shows that the project management model supports both cost-effective decision-making and effortless client cooperation.
- Defence Properties Finland has supported the Finnish Defence Administration in preparing funding applications to the NATO Security Investment Programme (NSIP). NATO has approved almost all of Finland’s F-35 infrastructure construction programme as eligible for NSIP funding. The project planning phase of the first NATO-funded project began in 2025, and the infrastructure projects related to Host Nation Support for the reception of foreign assistance were completed in Northern Finland.
- Defence Properties Finland reached the 2025 cost and savings targets set for it. Project management of investments generated cost benefits of €18 million. Measures taken based on Senate Group’s Procurement Development Programme delivered procurement savings of around €26 million. In addition, Defence Properties Finland saved some €1.6 million by spatial solutions and energy efficiency investments in its premises.
- Defence Properties Finland’s revenue in 2025 was €387.4 million and the result was €14.6 million. Growth in the service business and subleasing meant that revenue exceeded that budgeted. The result likewise exceeded that budgeted l. Cost control was successful, partly due to a mild year with little snow.
New strategy focuses on meeting the needs of the Finnish Defence Forces in emergency conditions
In May 2025, the Board of Directors of Defence Properties Finland adopted the unincorporated state enterprise’s new strategy for 2026–2029. The special mission of Defence Properties Finland is to ensure the functionality of defence system facilities in emergency conditions and serious disruptions.
“The key objective of the strategy is to reach a verified level of wartime operational capability to be able meet the needs of the Finnish Defence Forces at a good level in emergency conditions. The strategy estimated that Defence Properties Finland will invest around €1.65 billion over a four-year period. Working with the Finnish Defence Forces, significantly more necessary construction needs were identified in autumn 2025. The annual investment level will rise to close to €500 million in 2026 and is likely to remain at an exceptionally high level until the early years of the next decade,” says Matias Warsta, CEO of Defence Properties Finland.
Defence Properties Finland promotes ambitious responsibility goals as part of Senate Group
Defence Properties Finland’s sustainability is reported as part of Senate Group’s sustainability reporting. Measures taken under the Group’s climate roadmap have enabled Defence Properties Finland to successfully reduce direct emissions and indirect emissions from purchased energy by 67% compared to 2020. However, climate targets were not fully reached during the reporting year. Whereas the Group’s total emissions decreased by 7%, Defence Properties Finland’s total carbon dioxide emissions were 13% higher year on year. This was mainly due to the strong increase in construction and the use of peat in district heating. In construction, a 9% reduction in the average carbon footprint was reached in completed new construction projects and a 12% reduction in renovations.
Besides the carbon neutrality target, investments were made in safeguarding biodiversity and energy efficiency. Defence Properties Finland reached the energy savings targets set and the actual savings were 43.6 GWh. At year-end, the Group’s unincorporated state enterprises were among the first to sign up to the new public sector energy efficiency agreement.
Measures to promote biodiversity were carried out at 26 sites. These measures ranged from meadowing projects to combatting invasive alien species. One of the largest single projects to combat invasive alien species began in the Dragsvik garrison area, where invasive alien species were eradicated from an area of almost two hectares.
Defence Properties Finland’s financial statements and annual report (in Finnish, pdf)
Senate Group’s Annual Report (in Finnish, pdf)
For more information: Matias Warsta, CEO, tel. +358 294 831 000
