Fortress Real Estate Investments Limited has released its pre-close operational update for the period ended 30^th June 2025, reporting an historic-low vacancy rate in its South African logistics portfolio of 0.3%, with a five-percentage point reduction in its Central Eastern European (CEE) portfolio.

“Following the recent 25-basis-point interest rate cut by the South African Reserve Bank, and better-than-expected operational metrics, we are increasing our distributable earnings forecast for FY2026 to a range of R2.099 billion to R2.129 billion, representing year-on-year growth of between 7.3% and 8.8%,” says Steven Brown, CEO of Fortress Real Estate Investments Limited.

Post-period, Fortress completed 55 231m² of new logistics developments, including a 20 840m² warehouse for Crusader Logistics in the Eastport Logistics Park, with a further 76 550m² under construction. The Company also concluded a lease for the development of a new 24 570m² warehouse for Suzuki with construction having commenced in July 2025.

Fortress’ retail portfolio achieved like-for-like tenant turnover growth of 3.9% and sustained a low vacancy rate of 0.6%. Between July and October 2025, the portfolio achieved a collection rate of 101% with vacancies of 0.6% as at 31^st October 2025.

Earthworks for the 7 900m² extension of Botlokwa Plaza are underway – and scheduled for completion in H1 2027 while the extension of Tzaneen Lifestyle Centre (25% owned by Fortress) will include an additional 20 000m² of GLA with completion expected during FY2027.

Year-to-date, the Company has sold non-core assets in its local portfolio with a combined book value of R258.7 million, realising proceeds of R271.5 million and representing a 4.9% premium to book value. It says the average yield achieved on disposals, excluding land, during the period, was 9.6%, The funds have been redeployed into new logistic developments, retail upgrades, and extensions.

Currently, assets with a combined book value of R159 million are classified as held for sale.

Its CEE logistics portfolio recorded a decrease in vacancies from 15.1% as at 30^th June 2025 to 9.9% as at 31^st October 2025 with most of the vacant space in Gdańsk Logistics Park. A tenant has signed a five-year lease for 4 152m² with occupation from April 2026.

Post period, the Company acquired an industrial site in Wrocław, Poland comprising buildings with 76 000m² GLA on a total site area of 240 000m² and it has entered discussions to acquire two additional land sites for further logistics developments to serve the Bucharest market.

In September 2025, Fortress secured a new five-year €50 million term facility from Standard Bank Isle of Man, and in November 2025, it further enhanced its liquidity by raising an additional three-year, €15 million term facility and a €10 million revolving credit facility from Absa, allowing for the early settlement of its €17.9 million facility with mBank.

The Company has R4.6 billion in cash and available facilities with a loan-to-value (LTV) ratio of approximately 39.8% currently.

The current value of Fortress’ investment in NEPI Rockcastle is approximately R14.8 billion (15.2%). Fortress has a collar over 18.75 million NEPI Rockcastle shares. The put and call strikes are R110 and R145, respectively, with maturities between January 2026 and August 2026. Fortress will retain the dividends on these shares as well as the risks and rewards of ownership.