Mailbox REIT collects more than 98% rent and improves property valuation

Mailbox REIT has released favourable results for the third quarter of 2021, with an interim dividend in line with its IPO target.

The company collected 91.9% of the contractual rents for the September 2021 quarter as of 26 October, with the majority of the remaining 8.1% due during the quarter expected to be paid by tenants that regularly settle their rents, which brings the total collection in line with the June 2021 at over 98%.

The REIT’s board has declared an interim dividend of 1.75 pence per share for the quarter, which when combined with the dividend for the past quarter is in line with the target of over 7 pence per share per year. The dividend will be paid on 26 November.

The valuation of the Mailbox, the company’s regional office-led, mixed-use asset, rose for the second consecutive quarter since IPO to £184m. The previous quarter’s valuation was £182.2m. The true equivalent yield of the Mailbox was 6.43% as of 30 September.

Mailbox REIT recorded an unaudited net asset value of £86.47m, slightly down from £86.81m in the previous quarter.

Stephen Barter, non-executive chairman of Mailbox REIT, said: “During the quarter, Mailbox REIT has continued to deliver against the objectives as set out at IPO, with another dividend declared which is in line with target, underpinned by high rent collection rates from our roster of low-risk tenants.

“This, along with a continued improvement in market sentiment, contributed to a small increase in the valuation of the Mailbox. Looking to the future, we have made further progress with our asset management plans and expect the conversion of the excess retail units into additional, higher value office space to complete early next year.”

Mailbox REIT reveals maiden half-year results since IPSX admission - React News