Senate Group’s Annual Report 2025: savings for agencies’ facility costs, security construction at record level
Senate Group comprises the parent unincorporated state enterprise Senate Properties and its subsidiary unincorporated state enterprise Defence Properties Finland. Group revenue in 2025 was €1,021.5 million and the result was €42.1 million. Group property sales totalled €44.7 million in an exceptionally weak property market.
Investments in premises of the security authorities at new record level
In 2025, construction investments reached a new record level of €763 million, of which Senate Properties accounted for €407 million and Defence Properties Finland for €356 million. Compared to Senate Properties’ previous normal level, construction volume is around double, whereas Defence Properties Finland’s construction investments have tripled.
“Construction to meet the needs of the security authorities in particular will continue at a high level over the next few years. The cost-based system of central government rents means that investments directly affect rent costs. In the challenging situation faced by Finland’s central government finances, we have found several ways to curb rising costs. On the other hand, to meet the premises requirements of the security authorities Senate Group needs to secure funding and borrowing to be able to build the infrastructure needed to strengthen national defence and internal security,” says Tuomas Pusa, Senate Group President and CEO.
Senate’s construction project management model seeks to curb the size of investments under preparation and in this way lower the rents of new premises of agencies and institutions. The project management model delivered savings of €48 million. The Procurement Development Programme continued. Measures introduced under the Programme and the impact of the downturn in the construction industry delivered savings of €33 million in procurements.
NATO is clearly increasing its infrastructure funding programme (NSIP), from which Finland will also be able to receive more funds for projects that serve the alliance’s common needs or exceed the level reasonably expected of a single member country. Defence Properties Finland has systematically built up expertise to leverage funding for projects carried out in Finland.
Savings for facility costs of agencies and institutions
Senate Group reduced the rents of central government agencies and institutions by around €19 million from the beginning of 2025. In addition, space solutions were agreed to generate savings of €20 million for the facility costs of agencies. Overall, Senate will reduce the annual facility costs of agencies and institutions by approximately €53 million from the beginning of 2028. This covers about 10% of central government’s €530 million operating cost savings target. On average, facility costs account for about 7% of central government operating costs.
The most important way to achieve savings in premises costs is for agencies that use the same type of office premises to move to central government’s shared work environments, which are being implemented across Finland.
“The extent of remote work in central government divides our clients into two groups. The group consisting mainly of security authorities and other users of special premises mostly works on-site, with remote work accounting for less than 10% of their work. Our clients working in standard office premises are expected to moderately increase the share of on-site work due to central government’s new remote work recommendations. The average occupancy rate in central government’s shared work environments currently in use is 20–35%. This allows for a significant increase in on-site work without running out of space,” says Pusa.
Besides cost-effectiveness, sustainability focuses on carbon-neutral central government premises
Senate Group’s Annual Report for 2025 has for the first time been published as a whole to include the financial statements, the report of the Board of Directors and the sustainability report in accordance with the European Union’s new Sustainability Reporting Directive (CSRD).
Senate is aiming for central government properties to be carbon neutral by 2035. Promoting the carbon neutrality target is a key focus area for corporate sustainability in the strategies of unincorporated state enterprises and a performance target set by the Ministry of Finance for Senate Properties.
Total emissions decreased by 15% between 2020 and 2025, despite a significant increase in construction volume. The Group’s total emissions decreased by 7% in the reporting year compared to the previous year. Senate Properties’ emissions decreased by 21%. In construction projects, there was an average reduction of 15% in the carbon footprint of new construction projects and 16% in renovations.
In addition to the carbon neutrality target, the Group’s material sustainability aspects are the circular economy, safeguarding biodiversity and investing in energy efficiency. The Energy Saving Programme launched in 2022, and the more than 2,000 measures introduced under it, have delivered annual savings of €10 million for central government. The end of the year saw the Group sign up to the new public sector energy efficiency agreement. Senate Group has decided to introduce the ETJ+ energy efficiency system, which will be integrated into the Group’s ISO14001 environmental management system.
Senate Group’s Annual Report (in Finnish, pdf)
Defence Properties Finland’s financial statements and annual report (in Finnish, pdf)
For more information:
Senate Group and Senate Properties
Tuomas Pusa, Senate Group President and CEO, tuomas.pusa@senaatti.fi, tel. +358 50 390 2143
Defence Properties Finland
Matias Warsta, CEO, matias.warsta@puolustuskiinteistot.fi, tel. +358 294 831 000
