Fortress has released a pre-close operational update for the period after 30 June 2025. The logistics sector remains a standout performer, backed by sustained demand for high-quality, secure warehousing space. Vacancy rates in the South African logistics portfolio remain at a historic low of 0.3%, while the CEE portfolio saw a five-percentage-point reduction following lower vacancy at Gdańsk Logistics Park, reaffirming the appeal of Fortress’ assets.
 
“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%,” said Steven Brown, CEO of Fortress Real Estate Investments Limited.
 
“Since 30 June 2025, we have completed 55,231m² of new logistics developments, with a further 76,550m² currently under construction. Pre-letting activity remains robust, driven by the superior quality of our facilities, which include best-in-class flooring, generous yard space, and higher eaves for enhanced racking and volumetric efficiency. These properties also benefit from excellent connectivity and well-established transport infrastructure,” commented Brown.
 
The Fortress Retail portfolio continues to perform well, achieving like-for-like tenant turnover growth of 3.9% and sustaining a low vacancy of 0.6%. This resilience reflects the ongoing success of asset management initiatives and the positive impact of recently refurbished and expanded centres.
 
Fortress’s capital recycling strategy, enhancing core assets while disposing of underperforming properties, continues to deliver tangible benefits. Year-to-date, Fortress has sold non-core properties with a combined book value of R258.7 million, realising proceeds of R271.5 million, representing a 4.9% premium to book value. The average yield achieved on disposals, excluding land, during the period was 9.6%. These funds have been reinvested into new logistics developments, strategic retail upgrades, and extensions. At the date of this update, assets with a combined book value of R159 million are classified as held for sale.
 
South African logistics and logistics developments portfolio updates
Vacancies: Improved further to 0.3% at 31 October 2025 from 0.4% at 30 June 2025. This low vacancy level reflects continued demand for newly completed developments, effective asset management across the existing portfolio, and the enhanced overall quality of our logistics platform following the successful disposal of higher-vacancy non-core assets.

Eastport Logistics Park: Construction of the 20,840m² warehouse for Crusader Logistics was completed on schedule in August 2025. Crusader Logistics, an existing tenant at Eastport, is expanding within the park and has signed a five-year lease, with an option, in favour of Fortress, to extend for a further five years. This lease commenced on 1 September 2025. Construction of the 30,296 m² warehouse for Liquor Runners was completed on schedule, with the tenant taking beneficial occupation in October 2025. Demand for space at Eastport is encouraging, and construction of the 12,996 m² speculative warehouse will be completed in December 2025. This warehouse has been let to an existing tenant in the park, Teralco Logistics, on a three-year lease. Teralco Logistics will vacate its current warehouse of 22,095 m² in the park, which is now actively marketed and attracting encouraging interest from prospective tenants. Following these completed developments, a further 30,000m² of GLA is available for development at Eastport. In addition, Fortress retains the option to expand north of Eastport, a site on which it can develop an additional 150,000 m². Additionally, Fortress has recently commenced discussions on a site south of Eastport on which approximately 90,000m² of GLA can be developed.

Longlake Logistics Park: Fortress has concluded a lease with Suzuki for the development of a new 24,507 m² warehouse. Construction of this warehouse commenced in July 2025, with beneficial occupation planned for July 2026. The first warehouse at Longlake, measuring 19,099m² and previously leased to Liquor Runners, has been let to Overnight Logistics. Demand for space at Longlake is promising, and construction of the 18,982 m² speculative warehouse is on schedule for completion in October 2026. Once these developments are complete, Longlake will be fully developed.

Clairwood Logistics Park: Discussions are ongoing with a potential tenant for the final site, Pocket 6. Fortress expects to finalise a lease for a 30,000m² warehouse during the 2026 calendar year. Post the construction and letting of Pocket 6, Clairwood will comprise approximately 300,000 m² of fully let premium logistics space within a secure, well-located park environment.
 
Central and Eastern European logistics and logistics developments updates

Vacancies: Decreased from 15.1% at 30 June 2025 to 9.9% at 31 October 2025. The majority of this vacancy is located in Gdańsk Logistics Park. In Gdańsk, Rossmann has signed a five-year lease for 4,152 m², with commencement planned for April 2026. The remaining vacant space, previously occupied by Regesta, is actively marketed, with interest from both existing tenants in our portfolio and new tenants.

Acquisition: Post 30 June 2025, Fortress acquired an industrial site in Wrocław, Poland. The property includes buildings with 76,000 m² of GLA on a total site area of 240,000 m², situated 7 kilometres north-east of the city centre. This acquisition supports the expansion of a multinational company focused on efficient household heating for the European and UK markets. The site was purchased at a yield of 8.75%. The tenant has committed to a 20-year lease, and there is further potential to develop additional GLA and upgrade the facility as the tenant’s operations grow.

Bydgoszcz Logistics Park: Phase 2 of Hall C was completed as planned in July 2025, with Volcano leasing 4,095 m² on a 7-year term and moving in the same month. Construction of a pre-leased 7,346 m² warehouse for Inter Cars is on track for completion in April 2026, with the lease starting in May. There is also strong tenant interest in a speculative 7,020m² warehouse that is progressing well and due to complete in April 2026. The park currently offers 77,000 m² of completed GLA and has just one vacancy of 2,160 m². Once fully developed, it will provide 91,000m² of logistics space. Following this success, Fortress is in talks to acquire a nearby 10-hectare site with potential for an additional 48,000m² of GLA.

Stargard Logistics Park: Construction of the 5,700m² warehouse for Hine is on schedule for completion by December 2025. Together with the new Hine warehouse, Stargard Logistics Park now comprises 48,000m² of fully leased GLA.

Romania: Fortress has entered into discussions to acquire two additional land sites for further logistics developments, both serving the Bucharest market. One site is 11.5 hectares, or approximately 61,400m² of GLA, located near the existing asset, north-west of Bucharest. The second site is under option, which allows us time to secure pre-leases while the final steps of the zoning approval take place. This site provides approximately 105,000 m² of GLA.
 
Fortress Retail updates
For the 12 months to 31 October 2025, like-for-like tenant turnover increased by 3.9% compared to the prior period, with tenant sales growth continuing to outpace national consumer price inflation.
From 1 July 2025 to 31 October 2025, the retail portfolio achieved a collection rate of 101%. Vacancies remained low at 0.6% at 31 October 2025, underscoring stable demand and the continued strength of the portfolio.

Fortress’s asset management strategy continues to prioritise maintaining low vacancies by enhancing and diversifying the tenant mix. Notable additions include Clay Café at 204 Oxford Shopping Centre, Checkers Outdoor at Equinox Mall, a new Standard Bank branch in AbaQulusi Plaza, and Absa, FNB, and Standard Bank branches at Sterkspruit Plaza.

Access improvements at several centres have been positively received by local communities, particularly the upgrades and repairs to the surrounding roads at AbaQulusi Plaza and the completion of the new traffic circle at Pineslopes Shopping Centre.

Fortress remains focused on serving the commuter market, evidenced by the ongoing development of a new bus rank at Sterkspruit Plaza, along with additional parking to meet increased shopper demand. A larger ablution facility has been constructed to cater for the higher footfall following the recent expansion of the centre.

Earthworks for the 7,900m² extension of Botlokwa Plaza are underway, with completion scheduled for H1 2027.

The extension of Tzaneen Lifestyle Centre (25% owned by Fortress) will include an additional 20,000m² of GLA and introduce Pick n Pay, Dis-Chem, and other fashion retailers. Earthworks are underway, and completion is expected during FY2027.
 
Energy and water solutions
To date, Fortress has 98 operational solar PV systems with a total installed capacity of 35.86MWac, an increase from 96 systems totalling 35.49MWac at 30 June 2025. By 30 June 2026, Fortress aims to commission an additional 20 plants, bringing the total number of installations to 118 and increasing overall capacity to 40.19MWac.

Between July 2025 and October 2025, Fortress produced approximately 16,746MWh of solar energy, 43% more than the 11,718MWh generated during the same period in the previous year.

Fortress has commissioned three battery energy storage systems at a retail centre and at two logistics assets to enhance the returns from the solar PV installations.

Propelair toilets have been installed at five retail centres, with further installations underway at three other centres. Monthly water savings are already substantial, and Fortress plans to extend installations across the broader portfolio.
 
Funding, liquidity and treasury
In September 2025, Fortress strengthened its funding position by securing a new five-year, €50 million term facility from Standard Bank Isle of Man. In November 2025, we further enhanced liquidity by raising an additional three-year, €15 million term facility and a €10 million revolving credit facility from Absa. The improved liquidity and favourable pricing allowed for the early settlement of the €17.9 million facility with mBank.
 
At the group level, Fortress maintains strong liquidity, with R4.6 billion in cash and available facilities. The financial position remains solid, with a loan-to-value (LTV) ratio of approximately 39.8% as at the date of this announcement, comfortably within all covenants.
 
The current value of Fortress’ investment in NEPI Rockcastle is approximately R14.8 billion. Currently, 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 retains the dividends on these shares as well as the risks and rewards of ownership.