Fortress weathers the Covid-19 storm with high rental collections

Fortress has reported average collections of 93% between
April and August 2020.

These collections were at a full 97% in August and the
company says these levels speak to the close partnerships it maintains with its

After forecasting a challenging macro-environment, Fortress
took the strategic decision to maintain cash and to mitigate risk as far as
possible. When Covid-19 hit South Africa, the company was in a relatively
secure cash and risk position.

Entering the pandemic with a strong balance sheet, Fortress
refinanced debt during the national lockdown to ensure the business only had
R1.5 billion of debt expiring in the coming year.

Shareholders support of Fortresses’ proposal to reduce the Fortress A minimum dividend entitlement was critical in building the company’s strong liquidity position.

In addition, Fortress neutralized its exposure under its
cross-currency swaps, leaving the business in a good position vis-à-vis subsequent
Rand volatility.

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