REG - Mailbox REIT PLC - Update on valuation and debt

FTI ConsultingAnnouncement

23/01/2023 08:15

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RNS Number : 4716N  Mailbox REIT PLC  23 January 2023

Mailbox REIT Plc

("Mailbox REIT" or the "Company")

 

Update on valuation and debt

 

23 January 2023.  Mailbox REIT Plc (IPSX ticker: MBOX), the owner of the
Mailbox, a prime regional office-led, mixed-use asset, announces that the
recently undertaken year end valuation by Avison Young shows a change in
valuation of the Mailbox to £157 million.  This compares to £189.7 million
as at 30 September 2022 and primarily reflects the outward yield shift for
regional office assets in the current market largely due to the prevailing
interest rate turbulence.

 

This has led the Company to enter discussions with Deutsche Bank, as the
lender behind the £108.50 million loan facility (the "Loan") secured against
the Mailbox, in relation to the increase in LTV ratio from 57.2% as at 30
September 2022, to 69.1% now, compared to an agreed LTV covenant of 60%.  The
Company will provide a further update to shareholders in due course and
expects to be able to announce a resolution to this issue in the near
future.

 

With £11 million of annualised rental income, the Company continues to
benefit from strong rent collections with 95% of the first quarter's rents of
2023 and 99% of the full year of 2022 already received. As a result, the
Company has ample revenues with which to service its debt, delivering an
income yield of 7.2% which comfortably exceeds its current Interest Cover
Ratio covenants.

 

At an operational level, Mailbox continues to perform well, in line with the
approved asset management plan. With occupancy at 95% (by floor area) from a
diversified mix of high-quality tenants, and take-up momentum within the new
IWG-operated Spaces co-working facility, there continues to be a positive
expectation for the remaining retail and office space.

 

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 / Eve Kirmatzis   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.com(1).

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