JSE-listed Fortress Real Estate Investments has reaffirmed its distributable earnings forecast of at least R2.15-billion for the financial year ending June 30.

This translates into a forecast distribution of at least 176.48c a share, compared with 162.44c a share for the financial year ended June 30, 2025.

The company says the board further provided earnings guidance for the financial year ending June 30, 2027 of about R2.31-billion, representing a 7.4% increase, compared with financial year 2026 guidance.

Fortress CEO Steven Brown says sustained strength in the logistics and retail sectors has been instrumental in supporting the company’s overall operational performance.

“The logistics sector continues to outperform, underpinned by sustained demand for premium, secure warehousing,” Brown says.

Overall vacancies, by rental, declined to 2.3% at May 31 compared with 2.8% at December 31, 2025.

More specifically, Fortress says vacancy levels remain low at 1.4% in the South African logistics portfolio, while vacancies in the Central and Eastern Europe portfolio improved materially to 1.8% (9% at December 31, 2025) driven mainly by improved occupancy at Gdańsk Logistics Park.

“These low vacancy rates reflect strong demand for high-quality developments in secure, well-located parks, proactive asset management and the enhanced quality of our logistics platform,” Brown says.

The company says strong demand and pre-leased space across the Fortress logistics portfolio, most notably at the Eastport and Longlake Logistics Parks, and the Bydgoszcz Logistics Park in Poland, continue to support a robust development pipeline.

Brown explains that, since June 30, 2025, the company has completed 88 292 m² of new logistics space, with a further 65 662 m² under construction.

This includes 50 000 m² of gross lettable area (GLA) currently under construction in South Africa, and 15 000 m² in Poland.

Fortress says the retail portfolio also continues to perform well, delivering like-for-like tenant turnover growth of 4.2% and maintaining a low vacancy rate of 0.8%.

“Asset management initiatives, together with recently refurbished and expanded centres, continue to support the resilience and performance of the retail portfolio,” explains Brown.

Fortress continued to implement its capital recycling strategy, disposing of noncore and underperforming properties.

For the financial year-to-date, disposals with a combined book value of R362.4-million realised proceeds of R382.5-million, a 5.5% premium to book value, with an average exit yield on disposals, excluding land, of 8.3%.

The company says it has reinvested these proceeds into logistics developments and strategic retail upgrades, extensions and an acquisition.

This included the acquisition of a controlling 51% stake in Balfour Mall, in Highlands North, Johannesburg.

The company says the 37 000 m² suburban retail centre aligns with Fortress’ strategy of investing in well-located, community-serving retail assets, with redevelopment plans already at an advanced stage.

The retail centre was acquired at a yield of about 10%. The group acquired a controlling stake in partnership with Consolidated Urban and Forever Young Capital.

The price paid for 100% of the asset was R175-million.

Additionally, Fortress notes that it continues to invest in energy resilience through the expansion of solar PV capacity across its portfolio.

Brown explains that, at present, the company has 113 operational solar PV systems with installed capacity of 38.84 MW.

Between July 2025 and May 2026, Fortress produced about 50.33 MWh of solar energy, 26.6% more than the same period in the prior year.

A further nine installations are on site, seven of which are expected to be operational by June 30, bringing total capacity to 40 MW across 120 installations.

Fortress says it plans to commission an additional eight plants, increasing total installations to 130 and overall capacity to 42 MW.

“We have installed three battery energy storage systems totalling 1.95 MWh at one retail centre and two logistics assets to enhance returns from the solar PV installations,” says Brown.

Brown adds that orders have been placed for a further seven installations, totalling 5.1 MWh, at three retail and four logistics properties, with the first plants expected online by July.

Alongside continued investment in asset quality and energy resilience, Fortress notes that it strengthened its liquidity and funding position through successful capital market issuances, disciplined debt settlement and diversified offshore funding.

Brown says the company maintains a strong liquidity position, with R7.6-billion in cash and available facilities, and a loan-to-value ratio of about 38.8%, comfortably within all covenant thresholds.

“With our liquidity, a disciplined balance sheet and a high-quality pipeline across two continents, we are well-positioned to continue delivering growth across our logistics and retail real estate platform," he concludes.