REG - Mailbox REIT PLC - Trading update & dividend declaration

FTI ConsultingAnnouncement

28/10/2021 08:05

RNS Number : 4773Q
  
Mailbox REIT PLC
  
28 October 2021
  
 

 
 28 October 2021
Mailbox REIT Plc
("Mailbox REIT" or the "Company")
TRADING UPDATE ALONGSIDE DIVIDEND DECLARATION SHOWS CONTINUED STRONG RENT COLLECTION AND IMPROVED VALUATION
 
Mailbox REIT Plc (ticker: MBOX), the owner of the Mailbox, a prime regional office-led, mixed-use asset offering long-term secure income and the potential for value enhancement, provides a trading update and declares an interim dividend for Q3 2021 in line with the Company's IPO target.
 
Strong Rent Collection
As of 26 October 2021, Mailbox REIT had collected 91.9% of the contractual rents for the September 2021 quarter, with the bulk of the remaining 8.1% due during the quarter expected to be paid by those tenants that typically settle their rents monthly, bringing the total collection in line with June 2021 at over 98%. 
 
Rent collection for the September 2021 quarter day by sector is as follows:
 




Sector


%


% of total rent




Office


100.0%


47.1%




Car Park


100.0%


21.6%




Retail


79.6%


11.4%




F&B


64.9%


16.3%




Other


99.7%


3.5%




Total


91.9%


100.0%




 
2021 Rent Collection
 
The Company has now collected 98.3% of total contractual rent demands for the June 2021 quarter day and expects to match these collection levels for the September 2021 quarter day.
 
Since the beginning of 2021, the Group has collected 93.9% of rent due, with the office and car parking tenants continuing to pay 100% of their rent demands. 
 
Dividend declaration in line with 7% target dividend yield
The Mailbox REIT Board has declared an interim dividend of 1.75 pence per share for Q3 2021. Combined with the Q2 2021 dividend this is in line with the target of over 7p per share per annum, as set out in the Company's Admission document (equating to 7% based on an issue price of 100p). The dividend, which will be a Property Income Distribution, will be paid on 26 November 2021. The ex-dividend date will be 4 November 2021 and the record date will be 5 November 2021.
 
Improved Property Valuation 
At 30 September 2021, the independent fair valuation of the Mailbox, as undertaken by Avison Young, increased for the second consecutive quarter since IPO to £184.0 million (30 June 2021: £182.2 million). 
 
At 30 September 2021, the true equivalent yield of the Mailbox was 6.43% (30 June 2021: 6.44%).
 
Net Asset Value 
At 30 September 2021, the Company's unaudited net asset value ("NAV") was £86.47 million, equivalent to 101.91 pence per share, when account is taken for the interim dividend paid on 27 August 2021, compared to £86.81 million and 102.31 pence per share as at 30 June 2021.
 
The NAV attributable to the ordinary shares has been calculated under International Financial Reporting Standards as adopted by United Kingdom.  It incorporates both the Mailbox asset, individually valued on a "Red Book" valuation basis as at 30 September 2021, and the net income for the quarter, but does not include a provision for the interim dividend declared today (see above) for the quarter ended 30 September 2021.
  
Long and Secure Income
The Mailbox REIT remains fully invested in the Mailbox, a prime regional office-led, mixed-use asset, which is currently 90.3% occupied with a weighted average unexpired lease term of 13.8 years to the earlier of break or expiry and 14.1 years to expiry.
 
According to Creditsafe's rating checks for the quarter, 77% of the asset's gross income stream is considered to be of very low risk, with a further 12% considered low risk. Only 5% of the asset income, relating to certain retail and F&B elements, is considered to be of high or very high risk. 
 
Asset Management Update:  Level 1 Retail to Office Redevelopment
 
M7 Real Estate, the Asset Manager, has been working with IWG to agree a design concept for the Level 1 conversion to help businesses adapt to new approaches to working habits in the future, with emphasis on flexibility, people and environment.
 
Since February 2021, the Company has invested £2.1 million into the conversion of excess retail units into higher value office space. The project is currently performing well against the budget, with completion expected in February 2022.
 
To date, this project has comprised a full strip out of the previous retail units and integration into an open plan office suite.  This has included replacing the entire northern wall on the first floor with floor to ceiling glazing, adding substantial natural light to a section of the building where previously there was none.  This is an important addition in the context of delivering an attractive, appropriate and habitable space for office occupiers. 
 
New low energy LED lighting has also now been installed, ensuring the space remains on track to comply with future environmental obligations.
 
Between now and the end of 2021, the partitions will begin to be installed, allowing the space to start taking shape as a new office suite, which will also support the ongoing marketing efforts.
 
Stephen Barter, Non-Executive Chairman of Mailbox REIT plc, commented:
"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."  
 
 
ENQUIRIES




Mailbox REIT PLC


 




Stephen Barter - Chairman 


via FTI Consulting below




 


 




M7 Real Estate Ltd
Richard Croft


+44 (0) 20 3657 5500




 


 




WH Ireland (Lead Advisor & Corporate Broker)


+44 (0) 20 7398 1145




Chris Hardie 


 




 


 




FTI Consulting (Communications Adviser)


+44 (0) 20 3727 1000




Richard Sunderland
Claire Turvey


MailboxREIT@FTIConsulting.com




 


 




Alter Domus (UK) Limited
(Company Secretary)


+44 (0) 207 645 4800




 
The Company's ISIN is GB00BM9BWM32.
 
Further information on Mailbox REIT plc is available at www.themailboxreit.com1.
 
NOTES
Mailbox REIT PLC The Mailbox REIT is a single asset REIT offering shareholders exposure to the performance of the Mailbox which is a prime regional office-led, mixed-use asset offering long-term secure income and the potential for value enhancement.
 
The Company's asset manager is M7 Real Estate Limited ("M7"). M7 is a leading specialist in the pan-European, regional, multi-tenanted real estate market. It has over 220 employees in 15 countries across Europe. The team manages over 570 properties with a value of circa €4.1 billion.
1    Neither the content of the Company's website, nor the content on any website accessible from hyperlinks on its website or any other website, is incorporated into, or forms part of, this announcement nor, unless previously published on a Regulatory Information Service, should any such content be relied upon in reaching a decision as to whether or not to acquire, continue to hold, or dispose of, securities in the Company.

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