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