Czech Real Estate Funds Market Insights Q2 2020

Czech Real Estate Funds TRF Ranking 2020 Q2

Executive Summary [1/2] Czech Real Estate Mutual Market Development Overall balance of real estate funds is 11 % of all investment funds whereas in 2010 it was only 0,8 %. After the simple deposit to a bank account is a deposit to the investment funds second highest and between 2013 and 2018 the value of these deposits doubled. Institute of Strategic Investments of Faculty of Finance and Accounting University of Economics and Hospodarske noviny issued TOP real estate funds ranking ( TRF ) for Q2 2020. The ranking is being issued every quarter since 2017. The results of Q2 2020 present 13 funds of qualified investors and 7 retail funds. During the time we broaden not only the number of funds in ranking but also the quantity of information about each fund. If the fund wants to participate in TRF it has to fulfill the requirement of publicly traded securities. The ranking is divided into two categories funds of qualified investors (FQI) and retail funds. The overall value of real estate portfolio of funds in our ranking is CZK 96 bn. During the last 3 months rose the value of this portfolio by more than 5 %. In this period we estimate the overall investments of funds about CZK 100 bn. The sector of real estate funds grows very quickly. The balance of these funds soared to CZK 41.3 bn which about 15 % more than in previous year. The most frequent minimal investment required by FQI is CZK 1 mil, in case of retail fund it is CZK 500. The entrance fee is usually around 3% and the exit fee is in most cases after three years 0. Current number of investors to the funds participating in TRF is around 175 000. From these funds 87 % of them has domicile in Czech republic and 13 % abroad. 41.3 bn CZK total funds in the Czech real estate mutual funds in TRF ranking 96 bn. CZK Total value of properties owned by funds included in TRF ranking 6.5% vs 0.8% Czech real estate funds represented 6.5% of investment funds in 2019 compare to 0.8% in 2010 27 % 175 000+ investors in TRF ranked real estate funds 87 % 61.5% y-o-y increase in total funds Funds in TRF have domicile in the Czech Republic LTV not exceeding 1) erp no z AKAT [1/2]

Executive Summary [2/2] Czech Real Estate Funds Market Development Between FQIs in last 12 months the highest yield performed Accolade Industrial Fund, Czech Capital RE Fund SICAV, and Generali realitni fond. Between retail funds the highest yield performed Trigea nemovitostn fond SICAV, a.s., Investika Realitn Fond, and Conseq Realitn . In the category yield of last 3 years the best results among FQIs achieved Arete Invest CEE II, Accolade Industrial Fund, and WOOD & Company Office podfond and between retail funds ZFP Realitn fond, Investika Realitn Fond, and Conseq Realitn . TOP 3 Funds of Qualified Investors according to their profitabllity in last 12 months 1. 12.8% Accolade Industrial Fund 2. 9.0% Czech Capital RE Fund SICAV The market of real estate funds in Czech republic is the fastest growing market between investment funds but it is also going to be influenced by the crises resulting from coronavirus. 3. 8.3% Generali realitn fond Generally we can say that the average WAULT of real estate funds in Czech republic is around 5.6 years and accordingly to our data LTV of none of the funds exceeds 61.5 %. TOP 3 Retail Funds according to their profitabllity in last 12 months We assume that funds participating in TRF have a good chance to survive the crisis without any bigger troubles. But it will also depend on the time frame of government restrictions, since the exposure of the Czech funds to the retail sector is quite large. 1. 6.8% Trigea nemovitostn fond SICAV, a.s. 2. 5.3% Investika Realitn Fond Outcome of current economic situation will depend a lot on how he funds communicate to their investors to stay calm and not panic because of short-time fluctuations. The investment to the real estate is intended for a long-term and a thanks to its timescale it is resistant to crises. 3. 5.2% Conseq Realitn [2/2]

Content 2 1 Retail Real Estate Funds Real Estate Funds of Qualified Investors In all graphs are the funds sorted according to their Yield in last 12 months as of 30thJune 2020 4

1. Real Estate Funds of Qualified Investors Yield in last 12 months as of 30thJune 2020 14% 12.8% 12% 10% 9.0% 8.3% 7.5% 8% 7.3% 7.2% 6.8% 6.3% 6.1% 5.8% 5.4% 6% 4.3% 3.9% 4% 2% 0% Accolade Industrial Fund Czech Capital RE Fund SICAV Generali realitn fond Arete Invest CEE II SPILBERK investi n fond s prom nn m z kladn m kapit lem, a.s. WOOD & Company Office podfond DOMOPLAN investi n fond s prom nn m z kladn m kapit lem, a.s. ZDR Trikaya nemovitostn fond SICAV, a.s. WOOD & Company Retail podfond (formerly WOOD & Company Realitn Podfond I.) NOVA Real Estate podfond 1 Fond esk ho bydlen SICAV, a.s. esk pole 2015 otev en pod lov fond Investments SICAV a.s., podfond ZDR Real Estate 5

1. Real Estate Funds of Qualified Investors Average annual yield in last 3 years as of 30thJune 2020 18% 16.5% 16% 14% 13.0% 12.8% 12% 10.7% 10% 9.2% 9.2% 8% 6.8% 6.4% 6% 4% 2% 0% Arete Invest CEE II Accolade Industrial Fund WOOD & Company Office podfond WOOD & Company Retail podfond (formerly WOOD & Company Realitn Podfond I.) Czech Capital RE Fund SICAV NOVA Real Estate podfond 1 SPILBERK investi n fond s prom nn m z kladn m kapit lem, a.s. esk pole 2015 otev en pod lov fond 6

1. Real Estate Funds of Qualified Investors Average annual yield from the beginning of operation of the fund 20% 18.4% 17.9% 18% 16% 14% 12.8% 12.1% 11.6% 12% 10.9% 10% 8.7% 8.1% 7.1% 8% 6.3% 6.0% 5.4% 6% 4.5% 3.2% 4% 2% 0% 7

1. Real Estate Funds of Qualified Investors Number of Investors 1,200 960 1,000 870 800 600 400 280 200 125 100 80 65 40 21 0 Accolade Industrial Fund ZDR Investments SICAV a.s., podfond ZDR Real Estate Generali realitn fond Trikaya nemovitostn Arete Invest CEE II DOMOPLAN investi n fond s prom nn m z kladn m kapit lem, a.s. NOVA Real Estate podfond 1 esk pole 2015 otev en pod lov fond eskoslovensk nemovitostn fond SICAV fond SICAV, a.s. 8

1. Real Estate Funds of Qualified Investors Loan to value (LTV) 70% 61.3% 57.1% 56.3% 55.9% 60% 54.8% 50.0% 50% 42.7% 40% 30% 20% 10% 0.0% 0.0% 0.0% 0% WOOD & Company Office podfond Accolade Industrial Fund ZDR Investments SICAV a.s., podfond ZDR Real Estate WOOD & Company Retail podfond (formerly WOOD & Company Realitn Podfond I.) Arete Invest CEE II Generali realitn fond Czech Capital RE Fund SICAV NOVA Real Estate podfond 1 eskoslovensk nemovitostn fond SICAV esk pole 2015 otev en pod lov fond 9

1. Real Estate Funds of Qualified Investors Overall value of real estate property (millions of CZK) 18,000 16,630 16,000 14,000 12,000 10,000 8,851 8,664 8,000 5,505 6,000 4,000 2,516 2,122 2,000 838 383 362 352 180 162 0 Accolade Industrial Fund WOOD & Company Office podfond WOOD & Company Retail podfond (formerly WOOD & Company Realitn Podfond I.) Arete Invest CEE II ZDR Generali realitn fond SPILBERK investi n fond s prom nn m z kladn m kapit lem, a.s. DOMOPLAN investi n fond s prom nn m z kladn m kapit lem, a.s. Czech Capital RE Fund SICAV NOVA Real Estate podfond 1 eskoslovensk nemovitostn fond SICAV esk pole 2015 otev en pod lov fond Investments SICAV a.s., podfond ZDR Real Estate 10

1. Real Estate Funds of Qualified Investors Overall investments in Q2 2020 (millions of CZK) 2500 2268 2000 1500 1000 500 179 45 42 1 0 0 0 0 0 ZDR Investments SICAV a.s., podfond ZDR Real Estate DOMOPLAN investi n fond s prom nn m z kladn m kapit lem, a.s. Trikaya nemovitostn fond SICAV, a.s. WOOD & Company Retail podfond (formerly WOOD & Company Realitn Podfond I.) WOOD & Company Office podfond Generali realitn fond NOVA Real Estate podfond 1 Fond esk ho bydlen SICAV, a.s. esk pole 2015 otev en pod lov fond 11

1. Real Estate Funds of Qualified Investors Overall investments as of 30thJune 2020 (millions of CZK) 6,000 5,141 5,000 4,000 3,305 3,000 2,038 2,000 1,170 1,000 507 362 345 173 164 131 57 0 Accolade Industrial Fund WOOD & Company Office podfond WOOD & Company Retail podfond (formerly WOOD & Company Realitn Podfond I.) ZDR Investments SICAV a.s., podfond ZDR Real Estate DOMOPLAN investi n fond s prom nn m z kladn m kapit lem, a.s. SPILBERK investi n fond s prom nn m z kladn m kapit lem, a.s. Generali realitn fond Trikaya Czech Capital RE Fund SICAV esk pole 2015 otev en pod lov fond Fond esk ho bydlen SICAV, a.s. nemovitostn fond SICAV, a.s. 12

1. Real Estate Funds of Qualified Investors Quantity of sqm for rent 900,000 850,789 800,000 700,000 600,000 500,000 400,000 300,000 236,000 200,000 146,600 114,450 77,500 100,000 58,966 10,893 4,484 0 Accolade Industrial Fund WOOD & Company Office podfond Arete Invest CEE II WOOD & Company Retail podfond (formerly WOOD & Company Realitn Podfond I.) ZDR Investments SICAV a.s., podfond ZDR Real Estate Generali realitn fond NOVA Real Estate podfond 1 Fond esk ho bydlen SICAV, a.s. 13

1. Real Estate Funds of Qualified Investors Quantity of sqm for rent in the largest estate 180,000 169,422 160,000 140,000 117,000 120,000 100,000 80,000 61,800 60,000 37,200 40,000 25,200 20,000 11,774 5,114 1,524 0 Accolade Industrial Fund WOOD & Company Retail podfond (formerly WOOD & Company Realitn Podfond I.) WOOD & Company Office podfond Arete Invest CEE II ZDR Investments SICAV a.s., podfond ZDR Real Estate Generali realitn fond NOVA Real Estate podfond 1 Fond esk ho bydlen SICAV, a.s. 14

1. Real Estate Funds of Qualified Investors Share of the estate generating most of revenue on total revenue 90% 77.5% 80% 70% 60% 50% 45.0% 40% 34.0% 27.0% 30% 26.0% 26.0% 20.0% 19.9% 20% 11.0% 10% 0% WOOD & Company Retail podfond (formerly WOOD & Company Realitn Podfond I.) Generali realitn fond Fond esk ho bydlen WOOD & Company Office podfond ZDR Investments SICAV a.s., podfond ZDR Real Estate Arete Invest CEE II Accolade Industrial Fund NOVA Real Estate podfond 1 eskoslovensk nemovitostn fond SICAV SICAV, a.s. 15

1. Real Estate Funds of Qualified Investors Weighted average unexpired lease term (WAULT) 9.00 8.50 8.00 7.00 5.98 6.00 5.27 5.20 5.19 5.00 4.25 4.00 3.00 2.00 1.00 0.00 ZDR Investments SICAV a.s., podfond ZDR Real Estate Accolade Industrial Fund Arete Invest CEE II WOOD & Company Office podfond WOOD & Company Retail podfond (formerly WOOD & Company Realitn Podfond I.) NOVA Real Estate podfond 1 16

1. Real Estate Funds of Qualified Investors Number of tenants 250 213 192 200 150 130 100 90 76 60 43 50 12 0 WOOD & Company Retail podfond (formerly WOOD & Company Realitn Podfond I.) WOOD & Company Office podfond Generali realitn fond Accolade Industrial Fund ZDR Investments SICAV a.s., podfond ZDR Real Estate Arete Invest CEE II NOVA Real Estate podfond 1 Fond esk ho bydlen SICAV, a.s. 17

Content 1 2 Real Estate Funds of Qualified Investors Retail Real Estate Funds In all graphs are the funds sorted according to their Yield in last 12 months as of 30thJune 2020 18

2. Retail Real Estate Funds Yield in last 12 months as of 30thJune 2020 8% 6.8% 7% 6% 5.3% 5.2% 4.9% 5% 4.7% 4.3% 3.7% 4% 3% 2% 1% 0% Trigea nemovitostn fond SICAV, a.s. Investika Realitn Fond Conseq Realitn Nemo Fund ZFP realitn fond Raiffeisen realitn fond CZECH REAL ESTATE INVESTMENT FUND 19

2. Retail Real Estate Funds Average annual yield in last 3 years as of 30.6.2020 7% 6.4% 6% 5% 4.7% 4.6% 4.3% 4% 3.7% 3% 2% 0.9% 1% 0% ZFP realitn fond Investika Realitn Fond Conseq Realitn CZECH REAL ESTATE INVESTMENT FUND Arcona Property Fund S nemovitostn fond 20

2. Retail Real Estate Funds Average annual yield from the beginning of operation of the fund 6% 5.4% 5.0% 4.9% 4.8% 5% 4.7% 3.8% 4% 2.9% 3% 2% 1.7% 1% 0% Trigea nemovitostn fond SICAV, a.s. Nemo Fund ZFP realitn fond CZECH REAL ESTATE INVESTMENT FUND Investika Realitn Fond Raiffeisen realitn fond Conseq Realitn S nemovitostn fond 21

2. Retail Real Estate Funds Number of Investors 100,000 90,000 86,239 80,000 70,000 60,000 50,000 44,850 40,000 35,417 30,000 20,000 11,645 10,000 3,500 1,379 800 0 ZFP realitn fond Investika Realitn Fond Conseq Realitn Trigea nemovitostn fond SICAV, a.s. ZDR Investments Public SICAV a.s. Arcona Property Fund S nemovitostn fond 22

2. Retail Real Estate Funds Loan to value (LTV) 60% 50.0% 48.7% 48.0% 50% 46.0% 39.0% 38.0% 40% 30% 24.4% 20.8% 19.9% 20% 10% 0 0% Trigea nemovitostn fond SICAV, a.s. Arcona Property Fund CZECH REAL ESTATE INVESTMENT FUND Nemo Fund Investika Realitn Fond ZDR Investments Public SICAV a.s. ZFP realitn fond Conseq Realitn Raiffeisen realitn fond S nemovitostn fond 23

2. Retail Real Estate Funds Overall value of real estate property (millions of CZK) 35,000 32,599 30,000 25,000 20,000 15,000 10,000 7,000 6,146 5,000 2,031 1,300 1,300 167 43 0 CZECH REAL ESTATE INVESTMENT FUND Investika Realitn Fond Conseq Realitn Nemo Fund Trigea nemovitostn fond SICAV, a.s. ZDR Investments Public SICAV a.s. Arcona Property Fund S nemovitostn fond 24

2. Retail Real Estate Funds Overall investments in Q2 2020 (millions of CZK) 100 95 90 80 70 60 50 40 30 20 10 0 0 0 0 0 0 0 ZDR Investments Public SICAV a.s. Investika Realitn Fond Raiffeisen realitn fond Conseq Realitn Arcona Property Fund Trigea nemovitostn fond SICAV, a.s. S nemovitostn fond 25

2. Retail Real Estate Funds Overall investments as of 30thJune 2020 (millions of CZK) 25,000 21,145 20,000 15,000 10,000 5,000 3,674 2,809 1,300 442 0 Investika Realitn Fond Conseq Realitn Trigea nemovitostn fond SICAV, a.s. ZDR Investments Public SICAV a.s. S nemovitostn fond 26

2. Retail Real Estate Funds Quantity of sqm for rent 600,000 494,172 500,000 400,000 300,000 187,413 200,000 128,500 118,000 100,966 89,660 100,000 44,348 32,000 4,264 0 CZECH REAL ESTATE INVESTMENT FUND ZFP realitn fond Investika Realitn Fond Arcona Property Fund Conseq Realitn Raiffeisen realitn fond Trigea nemovitostn fond SICAV, a.s. ZDR Investments Public SICAV a.s. S nemovitostn fond 27

2. Retail Real Estate Funds Quantity of sqm for rent in the largest estate 100,000 89,384 90,000 80,000 70,000 60,000 50,000 50,000 40,000 40,000 27,000 30,000 22,329 21,060 20,000 16,393 11,203 10,000 1,858 0 Investika Realitn Fond ZFP realitn fond Trigea nemovitostn fond SICAV, a.s. CZECH REAL ESTATE INVESTMENT FUND Conseq Realitn Raiffeisen realitn fond Arcona Property Fund ZDR Investments Public SICAV a.s. S nemovitostn fond 28

2. Retail Real Estate Funds Share of the estate generating most of revenue on total revenue 80% 74.0% 70% 60% 50.0% 50% 40.0% 40% 35.9% 32.0% 30% 19.0% 20% 10.0% 10% 0% Trigea nemovitostn fond SICAV, a.s. Raiffeisen realitn fond ZDR Investments Public SICAV a.s. Investika Realitn Fond Conseq Realitn CZECH REAL ESTATE INVESTMENT FUND S nemovitostn fond 29

2. Retail Real Estate Funds Weighted average unexpired lease term (WAULT) 7.00 6.26 6.10 6.00 5.00 4.64 4.36 4.10 3.91 4.00 3.57 3.4 3.00 2.00 1.00 0.00 Investika Realitn Fond ZDR Investments Public CZECH REAL ESTATE INVESTMENT FUND Nemo Fund Raiffeisen realitn fond Arcona Property Fund Trigea nemovitostn fond SICAV, a.s. S nemovitostn fond SICAV a.s. 30

2. Retail Real Estate Funds Number of tenants 800 750 700 600 505 500 400 300 230 200 75 100 60 30 5 0 Arcona Property Fund Investika Realitn Fond Conseq Realitn Trigea nemovitostn fond SICAV, a.s. Raiffeisen realitn fond ZDR Investments Public SICAV a.s. S nemovitostn fond 31

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