Mailbox collects 100% of office rents as retailers face axe
Mailbox REIT has collected 92.6% of rents due for the June quarter.
The listed owner of Mailbox in Birmingham said that 100% of office rents had been collected but 17% of retail rents were outstanding, along with more than a third of rents from food and beverage tenants.
The remaining rent, it said, was either “due during the quarter, as result of agreed payment plans, or in negotiations with tenants”.
Mailbox REIT has collected 92.6% of rents due for the June quarter.
The listed owner of Mailbox in Birmingham said that 100% of office rents had been collected but 17% of retail rents were outstanding, along with more than a third of rents from food and beverage tenants.
The remaining rent, it said, was either “due during the quarter, as result of agreed payment plans, or in negotiations with tenants”.
The update said the board “recognise the importance of these tenants in the future of the Mailbox, so concessions are being agreed where appropriate on a case-by-case basis”. However, it added that more “low income-producing retail space” would be converted into “high income-producing office space”.
The asset value rose slightly over the quarter, from £181m to £182.2m, reflecting a yield of 6.44%.
Non-executive chair Stephen Barter said: “Since listing we have made good progress with our value-enhancing asset management plans for Mailbox, and most notably with the ongoing conversion of low income-producing retail space into high income-producing office space.”
He added that “attractive total returns” will come from “our long-let, very low to low-risk tenant base, from which we continue to benefit from high collection levels”.
Barter said that more retail space would be converted to office space in an effort to drive value.
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