Real estate investment company Fortress Real Estate Investments has revised its distributable earnings forecast for financial year 2025 to R1.78-billion, representing 147.80c a share, a 16.9% increase compared with normalised distributable earnings for financial year 2024.

The company says strong demand for secure, high-quality logistics properties has driven low vacancies, by rental, 1.4% in South Africa and 3.4% in Central and Eastern Europe.

It notes that ongoing developments include 93 954 m² of new logistics space, 75% of which is pre-let, underscoring the appeal of Fortress’ modern logistics facilities.

Key logistics projects in South Africa include warehouses for John Deere, Crusader Logistics and Liquor Runners, all progressing on schedule. In Poland, demand for space at Łódź and Zabrze remains robust.

Despite a challenging consumer environment, Fortress notes that like-for-like retail tenant turnover grew by 4.5%, with retail vacancies, by rental, reduced to 1.1%.

Highlights include the opening of Woolworths at 204 Oxford, in Gauteng, and ongoing redevelopment of Sterkspruit Plaza, in the Eastern Cape.

Fortress says property disposals and strategic redevelopments have enhanced the retail portfolio’s relevance and growth potential.

Meanwhile, Fortress continues to expand its solar PV footprint, with 79 operational solar PV plants totalling 29.69 MW alternating current (ac), generating 11 000 MWh of renewable energy in the first four months of financial year 2025.

The company says plans are in place to reach 97 installations with a capacity of 35.24 MW ac by June 2025.

Additionally, Fortress disposed of noncore properties worth R746-million post-financial year 2024 and holds an additional R257-million as assets held-for-sale.

This capital has been recycled into new logistics developments and strategic retail redevelopments and extensions.

Fortress raised R1.09-billion under its domestic medium-term note programme and refinanced R1-billion in expiring facilities.

Loan-to-value ratio is about 39.8% as at December 3.

“Our strategy of focusing on high-quality logistics and commuter-oriented retail assets has continued to deliver robust results. With strong demand for logistics space and steady growth in retail turnover, combined with strategic capital recycling and sustainability initiatives, we are well-positioned for sustained growth and value creation for our stakeholders,” says Fortress CEO Steven Brown.