Highlights:
· Fortress has revised its distributable earnings forecast for FY2025 to R1.78 billion representing 147.80 cents per share, a 16.9% increase compared to normalised distributable earnings for FY2024.
· Strong demand for secure, high-quality logistics properties has driven low vacancies, by rental, 1.4% in South Africa and 3.4% in CEE.
· Ongoing developments include 93,954m² of new logistics space, 75% of which is pre-let, underscoring the appeal of Fortress’ modern logistics facilities.
· Key logistics projects in South Africa include warehouses for John Deere, Crusader Logistics, and Liquor Runners, all progressing on schedule. In Poland, demand for space at Łódź and Zabrze remains robust
· Despite a challenging consumer environment, like-for-like retail tenant turnover grew by 4.5%, with retail vacancies, by rental, reduced to 1.1%. Highlights include the opening of Woolworths at 204 Oxford and ongoing redevelopment of Sterkspruit Plaza.
· Property disposals and strategic redevelopments have enhanced the retail portfolio’s relevance and growth potential.
· Fortress continues to expand its solar photovoltaic (PV) footprint, with 79 operational solar PV plants totalling 29.69MWac, generating 11,000MWh of renewable energy in the first four months of FY2025. Plans are in place to reach 97 installations with a capacity of 35.24MWac by June 2025.
· Fortress disposed non-core properties worth R746 million post-FY2024 and holds an additional R257 million as assets held-for-sale. This capital has been recycled into new logistics developments and strategic retail redevelopments and extensions
· Fortress raised R1.09 billion under its Domestic Medium-Term Note programme and refinanced R1 billion in expiring facilities.
· Loan-to-value ratio is approximately 39,8% at the date of this announcement.
Steven Brown, CEO of Fortress, commented, “Our strategy of focusing on high-quality logistics and commuter-oriented retail assets has continued to deliver robust results. With strong demand for logistics space and steady growth in retail turnover, combined with strategic capital recycling and sustainability initiatives, we are well-positioned for sustained growth and value creation for our stakeholders.”