Fortress upgrades distributable earnings forecast

Posted On Tuesday, 03 December 2024 12:11 Published by
Rate this item
(0 votes)

Fortress Real Estate Investments Limited (Fortress), a leading real estate investment company with a portfolio of high-quality logistics and retail assets in South Africa and Central and Eastern Europe (CEE), has issued a trading and pre-close operational update for the period subsequent to 30 June 2024, showcasing continued growth and robust performance across its key segments.

 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.”

Last modified on Tuesday, 28 January 2025 12:37

Most Popular

How to make your offer stand out in a competitive property market

Jan 16, 2025
If you’re looking to purchase a home in a sought-after suburb or estate, securing the…

One of Cape Town’s most iconic historic properties is for sale for the first time in many years.

Jan 16, 2025
Trovato House
Priced at R45 million thro ugh Pam Golding Properties, Trovato House is an impressive…

Exemplar’s December retail trade exceeds expectations

Jan 26, 2025
Theku Mall Aerial
With the 2024 Festive Season behind us and Back-to-School season well underway,…

The Cultural Blueprint: How to Make Your Office Not Just Look Good, But Feel Right

Jan 16, 2025
Jess Moyer Cushman & Wakefield BROLL
When it comes to designing office spaces, one size definitely does not fit all –…

Somerset Mall Embarks on a Multimillion-Rand Expansion Project

Jan 26, 2025
Somerset Mall
Major retail destination set to launch a new era of retail and leisure by November 2025…

Please publish modules in offcanvas position.