PROPERTY FUNDS
Fortress warns on dividend outlook in a weak economy
The glory years could be over for Fortress, the JSE’s largest industry-focused property fund. The group, which owns R30bn in property directly, has forecast that its B share dividend will grow about 2% at best in the year to June 2019. CEO Mark Stevens also warned this week that the dividend might even shrink for the first time in the fund’s history as Fortress grapples with a weak economy. Fortress is a hybrid of direct property and stakes in other listed companies. It owns logistics properties, commuter retail centres and offices directly. It listed in 2009 and was the best-performing stock on the JSE in 2014 and 2015 in terms of total return, the second best in 2016 and in the top five in 2017. But 2018 has been a difficult year for the real estate investment trust with it being one of the worst performers. Financial results for the year to June released on Tuesday show that the company’s once-stellar dividend growth is easing. Fortress has a dual share structure comprising A and...
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