Fortress Real Estate Investments, a South African property group listed on the Johannesburg Stock Exchange, has retained R466.84 million ($28.44 million) in cash after shareholders elected to receive new shares instead of cash dividends for the financial year ended June 30, 2026.

According to a results announcement released on the Stock Exchange News Service, shareholders holding 39.9% of the company’s outstanding B ordinary shares opted to receive capitalisation shares rather than the declared cash dividend of R0.909 ($0.05) per share.

Fortress expands share capital

The election led to the issuance of 19.45 million new Fortress B ordinary shares, allowing the company to retain R466.84 million ($28.45 million) in cash that would otherwise have gone to eligible shareholders.

Fortress REIT said shareholders holding 513.52 million B ordinary shares elected to participate in the capitalisation issue, representing 39.9% of the shares in issue before the transaction.

The new shares were issued at a reference price of R24 ($1.46) per share, in line with the terms outlined in the company’s September 17, 2026, dividend declaration announcement.

Following the capitalisation issue, Fortress REIT’s total issued B ordinary shares will increase to 1.31 billion from approximately 1.29 billion. The newly issued shares will be held in dematerialised form, with eligible shareholders who elected to receive shares scheduled to receive them on October 19, 2026.

Cash dividend payments continue

Shareholders who did not elect to receive capitalisation shares will receive their cash dividends through electronic funds transfers, also scheduled for October 19, 2026.

The capitalisation issue gives Fortress REIT an opportunity to preserve cash while rewarding shareholders through additional equity. Retaining the funds could provide greater financial flexibility for its property portfolio and other corporate requirements, although the announcement did not specify how the retained cash would be deployed.

Fortress Real Estate Investments operates in South Africa’s listed property sector, where capital allocation and liquidity management remain important considerations for companies balancing shareholder distributions with investment and financing needs.