Distribution guidance FY19/FY20 and 30 June 2019 pre-close webcast FORTRESS REIT LIMITED (Incorporated in the Republic of South Africa) (Registration number 2009/016487/06) JSE share codes: FFA ISIN: ZAE000248498 FFB ISIN: ZAE000248506 Bond company code: FORI (Approved as a REIT by the JSE) ("Fortress" or "the Company") DISTRIBUTION GUIDANCE FY19/FY20 AND 30 JUNE 2019 PRE-CLOSE WEBCAST Further to the distribution prospects for the year ending 30 June 2019 communicated to shareholders in Fortress' interim results announcement for the six months ended 31 December 2018 and published on SENS on 5 March 2019, Fortress expects that the distribution per Fortress B share will be at the low end of the previously guided range of 155 cents per share to 163 cents per share for the full 2019 financial year, on the assumption that the Fortress A share distribution will increase by 5%. In respect of the financial year ending 30 June 2020, the board expects total distributable income growth of between 3% and 4%. Assuming distribution growth of 5% for the Fortress A share, the distribution per Fortress B share for the full 2020 financial year will be between 157 cents per share and 164 cents per share. The guidance for the years ending 30 June 2019 and 30 June 2020 is based on the following assumptions: Macro-economic - The macro-economic environment will not deteriorate further; - The current political landscape does not change dramatically; and - South Africa's sovereign rating remains at investment grade (as rated by Moody's) and the outlook does not deteriorate. Fortress specific - Contractual escalations and market-related renewals will be achieved with no major change in vacancy rates; - No major corporate failures will occur; - Tenants will be able to absorb the recovery of rising utility costs and municipal rates; and - Distributions from Lighthouse Capital Limited, NEPI Rockcastle PLC and Resilient REIT Limited will be in line with their guidance communicated to the market or the Company's forecast. The financial information on which this distribution guidance is based, has not been reviewed or reported on by the Company's external auditors. The Company's annual financial results for the year ending 30 June 2019 will be published on or about 2 September 2019. Shareholders are further advised that Fortress is hosting a pre-close webcast at 9:30 on Friday 31 May 2019, prior to Fortress entering its closed period for the year ending 30 June 2019. Shareholders may register to participate in the pre-close webcast by following the link below: https://attendee.gotowebinar.com/register/6036568824586708481 24 May 2019 Lead sponsor Java Capital Joint sponsor Nedbank Corporate and Investment Banking Date: 24/05/2019 12:50:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.