Mailbox REIT PLC said rental collection from its multi-asset property in Birmingham (The Mailbox) has remained strong in recent months.
For the June quarter, 97.7% of contracted rent has been received with similar collection levels (c.98%) for the September 2021 quarter day expected by the close of the following quarter.
The REIT added 91.6% of contracted rents had been received in respect of the September 2020, December 2020 and March 2021 rent quarter days, with payment plans in place for the remaining 8.4%.
Mailbox added that conversion of Level 1 to create 50,000 sq ft of offices from former retail space was progressing well with over £1.9mln of the projected £10.15mn having been invested to date.
Stephen Barter, chairman, added there had been a marked improvement in the economy following the easing of the UK Government's Coronavirus (COVID-19) restrictions.
“Our strong rent collection levels reflect the robustness of our low risk and diverse tenant base, with increased footfall and trading at our retail and leisure units.
“We have made good progress with our value-enhancing conversion of a former retail floor into serviced office space, which should become available for occupation around the turn of the year.
“The new office occupiers will further support the retail and leisure activity, and will bring a modern, flexible workplace environment to the life of the building, alongside the existing tenants.”
The Mailbox property had 39 tenants as of 30 June 2021 with office and car park tenants representing 71% of the gross rent receivable and the balance comprising retail and leisure operators.
As has been published already, net asset value at the end of June 2021 was £86.8mln or 102.3p per share, with the group also announcing its first dividend at the end of July.
Pre-tax profits for the half-year to June were £323,000, up from £272,000.
Mailbox REIT was the first company to list on the Wholesale Market of the International Property Securities Exchange.