Building on the strength of its strategic growth plan, Fortress Real Estate Investments has reaffirmed the confidence investors have in the property investment company and rewarded them with a total shareholder return in excess of 30% for the financial year.

The company's strategic pivot away from office, industrial, underperforming properties, and non-core assets, and into quality assets in high-growth, state-of-the-art logistics and defensive commuter and convenience retail assets in South Africa and Central and Eastern Europe (CEE) continues to power growth and deliver value.

"The global and local real estate markets have benefited from reduced interest rates and improved market fundamentals, which first emerged in the latter part of 2024 with the start of GNU and G20 this year," explains Steven Brown, CEO at Fortress Real Estate Investments.

This favourable shift in market dynamics coincided with a move away from a particularly complex capital structure in February 2024, which placed Fortress in a stronger market position.

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Shifting to a real estate investment company (REIC) has unlocked various benefits, including specific tax deductions in relation to development allowances that are otherwise not claimable as a REIT.

"Over this period, investors have returned to the direct real estate market, providing an underpin to our direct property valuations, which have increased by 6,5% from FY2024 on a like-for-like basis," continues Brown.

"We have also seen encouraging investor returns in the listed real estate market, with our shares currently trading at a 10% discount...