Finalisation announcement in respect of the in specie distribution FORTRESS REIT LIMITED (Incorporated in the Republic of South Africa) (Registration number 2009/016487/06) JSE share codes: FFA ISIN: ZAE000248498 FFB ISIN: ZAE000248506 Bond company code: FORI (Approved as a REIT by the JSE) (“Fortress” or “the Company”) FINALISATION ANNOUNCEMENT IN RESPECT OF THE IN SPECIE DISTRIBUTION Shareholders are referred to the in specie distribution declaration announcement published on SENS on Thursday, 5 March 2020 wherein shareholders were advised that the dividend of 77,67 cents per Fortress A ordinary share (“FFA”) and the dividend of 74,84 cents per Fortress B ordinary share (“FFB”) share for the six months ended 31 December 2019 would be settled by way of an in specie distribution of Resilient REIT Limited (“Resilient”) shares at a reference price of R52,69 per share (“declaration announcement”). Shareholders are advised that the requisite exchange control approval has been received and that the in specie distribution will be settled in accordance with the terms set out in the declaration announcement. The salient dates and times and all other information relating to the in specie distribution remain unchanged and is set out in the declaration announcement. The in specie distribution will be determined on the basis that every shareholder holding 1 000 or more FFA or FFB shares will receive Resilient shares to the value of the dividend outstanding on the FFA and FFB shares in the ratio of 1 Resilient share for every 67.84 FFA shares or 1 Resilient share for every 70.40 FFB shares held at the close of trade on the record date, being Friday, 27 March 2020. Fortress shareholders holding less than 1 000 FFA or less than 1 000 FFB shares will have the dividends settled in cash. Illustrative example of the application of rounding and the impact of dividend tax on the in specie distribution The application of the rounding down principle to the nearest whole number and the impact of dividend tax on shareholders holding 1 000 FFA or 1 000 FFB shares or more are illustrated by way of the example below: FFA FFA FFB FFB South African Non-resident South African Non-resident resident shareholders resident shareholders shareholders subject to shareholders subject to exempt from dividend tax at exempt from dividend tax dividend tax 20% dividend tax at 20% Dividend (cents) 77.6700 77.6700 74.8400 74.8400 Dividend tax (cents) - (15.5340) - (14.9680) Total net dividend (cents) 77.6700 62.1360 74.8400 59.8720 Number of shares held 1 000 1 000 1 000 1 000 Rand amount of net dividend (R) 776.70 621.36 748.40 598.72 Resilient reference price for dividends (R) 52.69 52.69 52.69 52.69 Calculated number of Resilient shares received (unrounded) 14.7409 11.7928 14.2038 11.3631 Calculated number of Resilient shares received (rounded down) 14 11 14 11 Resilient shares value (R) (rounded) 737.66 579.59 737.66 579.59 Cash value (R) 39.04 41.77 10.74 19.13 If a Fortress shareholder becomes entitled to a fraction of a Resilient share arising from the in specie distribution, such fraction will be rounded down to the nearest whole number, resulting in the allocation of whole Resilient shares and a cash payment for the remaining fraction. In accordance with Fortress’ status as a REIT, shareholders are advised that the in specie distribution meets the requirements of a “qualifying distribution” for the purposes of section 25BB of the Income Tax Act and will constitute a dividend for South African income tax purposes. 17 March 2020 Lead sponsor Java Capital Joint sponsor Nedbank Corporate and Investment Banking Date: 17-03-2020 12:09:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.