Fortress first half distribution up 10.22%

Fortress Income Fund has lifted its combined distributions by 10.22% to 62.65 cents in six months ended December 2011, boosted by rail properties, which are focused on the lower living standard measure market.

Fortress has separately listed A and B linked units offering investors a different risk and reward profile.

Net rental and related revenue was up R178.7 million, from R148.5 million in the previous corresponding period.

Total comprehensive income was 50.8 million, from R23.6 million, the company said in a statement on Wednesday.

Overall vacancies increased marginally to 5.7% as at December 31, 2011, from 5.6% on June 30, 2011.

Fortress's direct property portfolio comprises 66% retail, 22% industrial, 10% office and 2% residential based on property value.

On future prospects, the fund said it anticipated growth in total distributions of approximately 10% for the full financial year.

"The growth is based on the assumptions that a stable macro-economic environment will prevail, no major corporate failures will occur and that tenants will be able to absorb the recovery of rising utility costs.

"Budgeted rental income was based on contractual escalations and market related renewals," the company said.