<\/p>\n
It\u2019s been, in Steven Brown\u2019s words, \u201ca very strong set of results\u201d for Fortress this year.<\/p>\n
For the year ended 30 June 2026, distributable earnings rose 14.2% to R2.234 billion, ahead of the company\u2019s guidance \u2013 a result achieved despite rising energy prices, higher interest rates, and a challenging macroeconomic backdrop.<\/p>\n
\u201cWhat\u2019s been most pleasing to see is the buoyancy in the South African real estate market,\u201d Brown says in the video.<\/p>\n
\u201cIt\u2019s really been quite something to see, especially given that the macro growth has been quite weak.\u201d<\/p>\n
That buoyancy showed up clearly across Fortress\u2019s core portfolios: the South African logistics portfolio \u2013 now almost R20 billion in value, having doubled in size over the past six years \u2013 continues to hold very low vacancies, and the core South African retail portfolio remains low too.<\/p>\n
On a like-for-like basis, the South African logistics portfolio delivered net operating income (NOI) growth of 8.4%, with retail close behind at 7.3%.<\/p>\n
Group-wide, like-for-like NOI growth came in at 6.8%, with net asset value (NAV) also climbing \u2013 SA Reit NAV per share rose 9.2% and tangible NAV per share rose 9.4%.<\/p>\n
\u201cThat NOI growth has also lifted valuations, which is one of the key underpinnings of a stronger balance sheet at 30 June,\u201d says Ian Vorster, Fortress\u2019s CFO.<\/p>\n
That stronger balance sheet was aided by a R1.35 billion equity raise, completed in an accelerated bookbuild late in the financial year.<\/p>\n
\u201cIt\u2019s been something we haven\u2019t been able to do in just over a decade,\u201d Brown says of returning to shareholders for fresh capital. \u201cSo again, thanks to all our shareholders for their support and for entrusting us with that money.\u201d<\/p>\n
The capital raise, together with continued earnings growth, brought Fortress\u2019s loan-to-value ratio down from 39.1% to 34% \u2013 on the lower end of the company\u2019s targeted range.<\/p>\n
Fortress taps debt markets<\/p>\n
Vorster also points to unusually favourable conditions in the debt capital markets: \u201cWe\u2019ve seen unprecedented tightening of pricing \u2026 Fortress was able to raise R2.7 billion in tenors of three, five and seven years at really compelling pricing,\u201d he says \u2013 including South Africa\u2019s first Zaronia-linked note issued by a listed property company.<\/p>\n
That capital is being put to work in the logistics pipeline. \u201cWe have some very exciting pipeline projects,\u201d Brown says.<\/p>\n
Since 2019, Fortress has developed between 100 000m\u00b2 and 150 000m\u00b2 of logistics space a year, largely funded \u2013 in what has been a capital-constrained market \u2013 by selling older, non-core assets.<\/p>\n
\u201cWe\u2019ve managed to more than double our logistics portfolio just by selling older assets,\u201d says Brown.<\/p>\n
Looking ahead, the company\u2019s South African logistics pipeline stands at approximately 286 000m\u00b2 of undeveloped gross lettable area (GLA), including the newly acquired Eastport North site \u2013 reducing to around 170 000m\u00b2 once pre-let deals there are concluded.<\/p>\n
Brown says growing demand around nodes like the Western Cape and an increasingly efficient Durban port give Fortress \u201cthe confidence to grow that portfolio of pipeline projects, and we will do so in a very disciplined, capital-light manner\u201d.<\/p>\n
Fortress CFO Ian Vorster. Image: Supplied<\/p>\n
On the retail side, the standout move of the year was the acquisition of a controlling stake in Balfour Mall \u2013 \u201cprobably a bit of an institution\u201d for Johannesburg residents, Brown says, \u201cbut I think it perhaps lost its way a little\u201d.<\/p>\n
Fortress\u2019s retail team is now applying its in-house development, asset management and leasing expertise to change the asset\u2019s trajectory, part of a broader shift toward redeveloping underperforming retail assets rather than building new ones.<\/p>\n
Advancing sustainability<\/p>\n
Sustainability featured prominently too.<\/p>\n
At 30 June 2026, Fortress had 121 operational solar PV plants (with 133 planned by June 2027) and an installed capacity of 40.11MWac, alongside 1.95MWh of battery storage capacity \u2013 set to more than triple to 7.05MWh once approved installations are commissioned.<\/p>\n
\u201cWhat that gives us, looking forward, is a much more sustainable portfolio,\u201d Brown says, \u201cand ultimately the financial benefit is a lower occupancy cost for our tenants \u2026 and happier tenants, which is certainly one of the key things we seek at Fortress.\u201d<\/p>\n
Shareholders felt the benefit directly<\/p>\n
The board declared a 2H2026 dividend of 90.91 cents per share, taking the full-year distribution to 178.8 cents \u2013 up 10.1% on the year before.<\/p>\n
Vorster notes that shareholders who held a Fortress share across the year also saw a share price uptick of roughly 21% and a yield of around 9%, with those who took the scrip dividend alternative benefitting further.<\/p>\n
Forward guidance for FY2027 has been revised upward to 192 cents, a 7.5% increase in distribution per share.<\/p>\n
\u201cIt\u2019s a team effort,\u201d Brown says, closing out the video, \u201cand everybody has really pulled together to deliver a fantastic set of results. So thank you.\u201d<\/p>\n<\/p>\n
Brought to you by Fortress Real Estate Investments.\u00a0<\/p>\n
Moneyweb does not endorse any product or service being advertised in sponsored articles on our platform.<\/p>\n
#Strong #fundamentals #continue #power #growth #Fortress #Real #Estate #Investments<\/p>\n","protected":false},"excerpt":{"rendered":"
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