Fortress Real Estate Investments has published its interim results for the year ended December 2023 following its successful capital restructure simplification.
“The repurchase of all FFB shares streamlines our capital structure, leaving a single share in issue. This proactive approach by our shareholders provides increased flexibility to unlock shareholder value as we continue to enhance our core portfolios in South Africa and Central and Eastern Europe,” commented CEO of Fortress, Steven Brown.
“The introduction of a scrip dividend alternative, made possible by the new capital structure, offers shareholders the flexibility of choosing between cash distribution or additional shares, marking a significant milestone in our company’s history.”
The company’s logistics portfolio (R13.8 billion asset value) maintained a strong performance with a 9.2% like-for-like NOI growth, despite marginal increases in vacancies (0.5%) to 1.2% at the end of December 2023.
Its remaining logistics development pipeline in South Africa is approximately 230 000m2 of gross lettable area (R2 billion asset value) with completion estimated to take between two and four years. Ongoing projects include the Eastport Logistics Park and Clairwood Logistics Park with the option of additional Eastport North Land providing development opportunities in the medium term. Fortress is optimistic that the demand for this site will be high and the roll-out should not extend beyond five years.
In Fortress’ Central and Eastern European (CEE) direct property portfolio (R3.4 billion asset value), construction is underway on two sites in Poland following pre-let deals signed. In Łódź, Phase 1 is nearing completion, comprising 50 200m².
The company’s direct South African retail portfolio achieved a 6.9% like-for-like retail turnover growth (R10.4 billion asset value).
“Following shareholder approval of the SOA and our current operational performance, Fortress looks ahead to continue to power growth for our tenants and communities that we operate in marked by enhanced operational agility, logistics and retail demand and the ongoing need for more sustainable real estate solutions,” concluded Brown.
