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Consolidated unaudited interim results for the six months ended 31 December 2025 and prospects
Fortress Real Estate Investments Limited
Incorporated in the Republic of South Africa
Registration number: 2009/016487/06
JSE share code: FFB
ISIN: ZAE000248506
LEI: 378900FE98E30F24D975
Bond company code: FORI
("Fortress" or "the group" or "the company")
Consolidated unaudited interim results for the six months ended 31 December 2025 and prospects
"Fortress is a real estate investment company with a portfolio of high-quality logistics and retail assets. We own a
portfolio of logistics properties in South Africa and Central and Eastern Europe valued at R24,1 billion and a
portfolio of direct retail properties of R11,9 billion, all located in South Africa. In addition, we currently hold
approximately R15,4 billion in NEPI Rockcastle shares, which provides exposure to a market-leading retail property
portfolio in Central and Eastern Europe. Combined, these holdings provide shareholders, through a listed and liquid
share, with exposure to a portfolio of real estate assets in excess of R54 billion with a significant development
pipeline, paying regular after-tax dividends.
The latter part of the 2025 calendar year saw a marked upward shift in capital markets sentiment towards real
estate, with additional capital being allocated to the sector. The direct property market tends to lag the public
markets and there is evidence of increasing interest in direct property assets, which in turn drives price growth.
This is expected to translate into better valuations and continued higher asking prices for assets. In order to
maximise returns on the sales of our non-core assets, we are taking a patient approach to the timing of sales, given
the improving demand for these assets. The combined like-for-like NOI growth in our core retail and logistics
portfolios of 6,7%, coupled with positive reversions on expiry of leases, is indicative of the quality of our core
assets.
Our portfolio vacancy reduced from 3,4% to 2,8%, by rental, with a notably low 0,3% vacancy in the South African
logistics portfolio. The demand and supply dynamics remain positive for this portfolio and for our development
pipeline. The reduced vacancy from October 2025 resulted from the letting of vacant space in Gdansk, which is part
of our CEE logistics portfolio.
Turnover growth of our tenants in the retail portfolio was 4,6% for the 12 months ended 31 December 2025, remaining
ahead of consumer price inflation for the period. The retail portfolio delivered strong like-for-like NOI growth of
7,0%, which is materially above the inflation rate for the year of 3,2%. The efficiency enhancements at our retail
centres, including solar installations, have contributed to the performance and growth in NOI.
The strong first-half performance of FY2026 is forecast to continue for the remainder of the financial year and, as
such, we are upgrading our distributable earnings guidance for FY2026. The previous guidance range of between
R2 099 million and R2 129 million in distributable earnings is now forecast to be approximately R2 150 million for
FY2026. This represents distributable earnings growth of 10% for FY2026, compared to FY2025.
The 1H2026 interim dividend is 87,89 cents per share and shareholders are provided with an option to elect a scrip
alternative in the form of additional FFB shares (the scrip offer). These shares will be issued at a 3% discount to
the prevailing VWAP, less the interim dividend of 87,89 cents per share, with further details to be communicated in
due course."
Steven Brown, CEO
Nature of the business
Fortress is a real estate investment company with a focus on developing and letting premium-grade logistics real
estate in South Africa and Central and Eastern Europe ("CEE"), as well as growing our convenience and commuter-
oriented retail portfolio. Fortress owns a direct property portfolio valued at R38,7 billion, which includes
R24,1 billion of logistics real estate and R11,9 billion of retail real estate. Fortress holds, at the date of
this report, a 14,2% interest in NEPI Rockcastle N.V. ("NEPI Rockcastle"), the largest listed property company on
the JSE Limited ("JSE"), currently valued at R15,4 billion.
Distributable earnings
Distributable earnings amounted to R1 070,7 million for 1H2026, compared to R917,1 million for 1H2025, an increase
of 16,7%. The board has declared the full distributable earnings available for 1H2026 as a dividend, which amounts
to 87,89 cents per FFB share.
Shareholders may further elect to receive the 1H2026 distribution in cash, as the default option, or in the form
of additional FFB shares. The shares will be issued at a 3% discount to the prevailing volume-weighted average
price ("VWAP"), less the interim dividend of 87,89 cents. Salient details of the scrip offer will be included in
a circular to shareholders, to be released in due course.
Summary of financial performance
Dec 2025 Dec 2024 % change
Distributable earnings (R'000) 1 070 711 917 095 16,7
Interim dividend declared per share - FFB (cents) 87,89 76,15 15,4
IFRS® Accounting Standards ("IFRS") information
Dec 2025 Dec 2024 % change
Revenue from direct property operations (R'000) 2 585 347 2 353 965 9,8
Total revenue (including revenue from investment) (R'000) 3 212 427 2 934 246 9,5
Net asset value ("NAV") (R'000) 31 388 157 30 010 030 4,6
NAV per share^ (Rand) 25,76 24,92 3,4
Basic earnings per share - FFB (cents) 178,18 116,54 52,9
Headline earnings per share - FFB (cents) 168,89 (0,14) #
^ The NAV per share is calculated as the total NAV divided by the aggregate number of FFB shares in issue, less
shares held in treasury.
# Percentage change not meaningful to disclose.
SA REIT Best Practice Disclosure
Dec 2025 Dec 2024 % change
NAV per share (Rand) 25,98 24,26 7,1
Loan-to-value ("LTV") ratio (%) 38,1 39,9 #
Funds from operations (R'000) 1 005 897 878 117 14,6
Funds from operations per share - FFB (cents) 82,57 72,92 13,2
# Percentage change not meaningful to disclose or not applicable.
Prospects
Our distributable earnings for 1H2026 amounted to R1 070,7 million. This strong performance is expected to continue
for the remainder of FY2026. We consequently update our FY2026 full-year distributable earnings guidance to
approximately R2 150 million from the previously guided range of R2 099 million to R2 129 million. This translates
into a forecast distribution of 176,48 cents per share for FY2026, compared to 162,44 cents per share for FY2025.
This forecast is based on the following assumptions:
Fortress-specific assumptions
- Our distributable earnings methodology will remain consistent with that of prior periods, as previously communicated;
- No material sales, or acquisitions, outside of our planned pipeline occur which necessitate a revision to this
forecast;
- There is no unforeseen failure of material tenants in our portfolio;
- Contractual escalations and market-related renewals will be achieved with no major change in vacancy rates; and
- Tenants will be able to absorb the recovery of rising utility costs and municipal rates.
Macroeconomic and regulatory assumptions
- There is no unforeseen material macroeconomic deterioration in the markets in which Fortress has exposure;
- There are no unforeseen adverse socio-political and geopolitical events in the jurisdictions in which Fortress
has exposure;
- There are no changes to current tax legislation in the jurisdictions in which the company operates; and
- There are no interest rate changes by the European Central Bank or the South African Reserve Bank.
The FY2026 distributable earnings guidance has been prepared in accordance with the company's accounting policies
and in compliance with IFRS. The forecast has not been reviewed or reported on by Fortress' external auditor and is
the responsibility of the board of directors.
Financial periods defined as follows:
- 1H2025 - Interim reporting period for the six months ended 31 December 2024;
- 1H2026 - Interim reporting period for the six months ended 31 December 2025;
- FY2025 - Financial year ended 30 June 2025; and
- FY2026 - Financial year ending 30 June 2026.
Short-form announcement
This short-form announcement is the responsibility of Fortress' board of directors and is only a summary of the
consolidated unaudited interim results for the six months ended 31 December 2025 ("1H2026 Results") and does not
contain full or complete details. Any investment decision by investors and/or shareholders should be based on the
1H2026 Results. The 1H2026 Results have been released on SENS and are available on the JSE cloudlink at
https://senspdf.jse.co.za/documents/2026/jse/isse/FFBE/HY2026.pdf, and the company's website at
https://fortressfund.co.za/financials/view-pdf?id=Interim%20results%20announcement%2031%20December%202025.
The short-form announcement itself is not audited or reviewed by Fortress' external auditor.
By order of the board
Steven Brown Ian Vorster Johannesburg
Chief executive officer Chief financial officer 26 February 2026
Block C, Cullinan Place, Cullinan Close, Morningside, 2196. PO Box 138, Rivonia, 2128
Lead sponsor
Java Capital
Joint equity and debt sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank Limited
Date: 26-02-2026 02:00:00
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