Mailbox REIT, owner of the mixed-use Mailbox building in Birmingham, has posted a 20.06% increase in operating profit for the six months to 30 June. The valuation of the asset increased by 3.48% to £192.30m in the same period.
Stephen Barter, non-executive chairman of Mailbox REIT, said: “Mailbox REIT has had a positive first half, with a further valuation increase underpinned by continued strong rent collection and positive leasing momentum. The opening of new flexible workspace at Mailbox operated by IWG’s Spaces brand is off to an excellent start and is a strong endorsement of our strategy to convert surplus retail space in the property. Our ESG strategy is also well underway, with tangible results already being achieved on reducing energy consumption, and we continue to prioritise improving Mailbox’s environmental credentials as effectively and as quickly as possible.”
Barker added the Birmingham office market had seen a steady six months with vacancy rates below the five-year average. However, he said the REIT was “carefully monitoring” significant economic headwinds such as soaring inflation, energy costs and interest rate rises to establish “the likely impacts for the Mailbox and our appropriate management responses”.
