Capital & Regional funds climb

Capital & Regional has announced a combined 6.6 percent increase in the underlying unit values of The Mall, The Junction and the X-Leisure Funds as of the end of March. The Mall Fund rose one percent to £1.09bn, The Junction Fund, 3.2 percent to £434m and the X-Leisure Fund, 2.4 percent to £540.7m.

The company said the valuation growth had been driven by income uplift from new lettings and lease renewals in The Mall and The Junction and yield compression in X-Leisure. The Mall increase during the quarter was driven by income growth of 0.8 percent from new lettings and lease renewals. The net initial yield remained stable with an inward shift of two basis points on a like-for-like-basis, following the sale of Bristol in January 2011.

The Junction valuation increase was driven by income growth of 3.1 percent from letting activity, principally at the Maidstone and Thurrock retail parks. The net initial yield remained stable with an inward shift of one basis point on a like-for-like basis following the sale of Portsmouth in March 2011. The X-Leisure valuation increase was driven by an inward shift of 18 basis points in the net initial yield combined with stable income.