Summary of key information
In the second quarter of 2025, Accolade Industrial Fund reported yields of 1.09% in CZK and 1.55% in EUR
The value of the portfolio exceeded EUR 2 billion
Compared to the first quarter, rental income increased by more than 6.5% and exceeded EUR 120.5 million
The vacancy rate was 1.78%
In August we have the last few quiet days before everything gets back into full swing. So, I would like to use them to recap the second quarter and give you a selection of the key events that have influenced the fund’s functioning and performance.
I am pleased to announce that we achieved further historic milestones in the last quarter: annual rental income exceeded EUR 120.5 million (nearly three billion crowns) and for the first time the fund’s portfolio value went beyond two billion euros – it is currently EUR 2,047,892,000. Important transactions that we managed to complete in the second quarter also helped us to achieve this amount. The most significant of them is a new project in the Czech Republic – Accolade Funds Park Cheb East. It includes a hall leased by Goodyear, which is the third largest tyre manufacturer in the world.
The fund also recorded significant expansion in Slovakia during the period under review. It added a more than twenty-one-thousand-square-metre hall with the prestigious tenant Faurecia, one of the world’s largest suppliers for the automotive industry, to its portfolio. The building has become part of Accolade Funds Park Košice Airport. This expansion helped consolidate the size of the whole park, which now has three buildings and a total area exceeding 58,000 square metres. This has led to a strategic consolidation of control over the location. The acquisition is also attractive in terms of yield and, combined with favourable financing, exceeds the expected return for the fund and investors.
A diverse mix of tenants
Slovakia’s Tatra banka has provided the fund with a loan of twenty-eight million euros. This will be used to refinance the Košice park, specifically for the long-term ownership of the buildings and further development of the site. As well as Faurecia, the site’s tenants also include Siemens Healthineers (manufacture and development of ultrasound equipment), the pharmaceutical company ViaPharma, the wholesale distributor GGT and the logistics companies Hellmann Worldwide Logistics, DB Schenker and, most recently, No Limit. Thanks to this diverse mix of sectors from medicine to industry and logistics the park remains highly diversified and stable in terms of rental flow.
We build strong, long-term relationships with such a diverse tenant base, relationships that are key to the fund’s performance. As we told you in our last newsletter, leasing activity, whether in the form of new agreements with existing tenants, their expansion or renewal, covered almost 42,000 square metres during the second quarter. The most significant renewals were concluded by Pilkington, a global leader in glass and glazing systems, Glosel, one of the largest e-commerce companies in north-eastern Poland, and DB Schenker, a leading provider of lorry, air, sea and rail transport and warehouse logistics. The last of these, in addition to renewing its agreement with us at Bydgoszcz in Poland, expanded by a further 3,800 sqm.
Real estate still among long-term investments
In the second quarter of this year, the fund recorded an appreciation of 1.09% in the crown class and 1.55% in the euro class. The result in CZK thus fell slightly short of expectations whereas in EUR it followed a stable course. In the CZK class, the strengthening of the crown against the euro significantly affected performance; the same effect also reduces the half-year appreciation to roughly 2.5% while in EUR it is approximately 3.5%. The current strengthening of the crown is temporarily reducing the returns of crown investors, but if the crown weakens, this effect will broadly return; euro investors are not affected by the exchange rate movement.
We see Accolade Industrial Fund as a longer-term investment. The fund’s portfolio is constructed to maintain stability and to be as resistant as possible to market fluctuations. It is built on broad geographical diversification (its parks are in six European countries), as well as on long-term contracts with strong international tenants operating in various industries. The low vacancy rate continues to be another advantage, and it has stayed below two percent for a long time, i.e. below the current market average.
I would like to thank you for the trust you have shown us, and I look forward to us continuing our journey together.
I wish you a pleasant and sunny rest of the summer.
