WPFI Westbury Inc

RNS Number:0160Z
Westbury Property Fund Limited
28 February 2006



Press release                  28 February 2006





                       THE WESTBURY PROPERTY FUND LIMITED



ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR FROM 1 JANUARY
                            2005 TO 31 DECEMBER 2005



Highlights


*        Net asset value per share due to Ordinary Shareholders up 21.5% to
127.9p - net of dividends paid and fund manager's performance fee accrual

*        2005 total return to Ordinary Shareholders of 25.8%

*        Ordinary Share dividends of 6p for the 12 months to 31 December 2005
(4.5p actually paid during the period)

*        Net profit of #11,726,680 for the year retained for the benefit of
Ordinary Shareholders

*        Balanced portfolio acquisitions totalling #49.1m completed during the
year (including one purchase contracted prior to the year end but concluded
shortly afterwards), with more than 75%  invested in London and the South East
which is in line with the Fund's strategic focus (this includes the Company's
investment in Mid City Place, London, which although a joint venture, has been
treated as a balanced Investment as its characteristics are such)

*        Two further venture investments made (one concluding shortly after the
year end) and two profitable realisations of venture portfolio investments
generating an aggregate #1.38m of profit (62%) on the combined initial
investment of #2.24m

*        Underlying portfolio returned 21.9% for 2005 versus its IPD benchmark
of 18.4%



The Westbury Property Fund Limited ("The Company") today announced its results
for the twelve months to 31 December 2005.



Commenting, Richard Burrell, Investment Manager to the Company, said:



"The Company has had another good year, profitably trading two venture
investments and one asset from the balanced portfolio as well as successfully
investing the monies raised at the end of 2004. Performance continues to be
strong, placing the Company towards the top end of its peer group."


On the outlook for 2006, Mr Burrell continued:



"The UK property market experienced another year of strong performance in 2005.
There appears to be no sign of the flow of money earmarked for investment in the
UK property market abating which could indicate continued downward pressure on
yields during 2006. This, combined with improving occupier markets and a lack of
any significant development pipeline should mean continued strengthening of
market conditions, albeit at a potentially more subdued level than 2005 with
some nervousness emerging that the market may be reaching its peak."



Summary of Results



*        During the year the Company made a net profit of #11,726,680 which has
been retained for the benefit of the Ordinary Shareholders.  This profit is
after the payment of all property acquisition costs and the costs of running the
Company, bank debt interest, tax, distributions paid to Income Shareholders and
a provision for the Investment Manager's performance fee accrued to date.



*        As at 31 December 2005, the Company had a direct, or Balanced, property
portfolio of 19 properties with an aggregate valuation of #127.6m.  The Company
now has 59 tenancies in the balanced portfolio, a total annualised rent roll at
the year end of circa #7.8m and a weighted average lease length of over 10.5
years.



*        During 2005, seven acquisitions were concluded in the balanced
portfolio, with the purchase of a further asset completing shortly after the
year end. These acquisitions total #49.1m and reflect a blended net initial
yield of 6.7%. In line with the current strategic focus of the Company, three
investments have been made in central London during 2005 and this includes the
Company's investment in Mid City Place which, although a joint venture, has been
treated as a balanced investment as its characteristics are such.



*        In the venture portfolio one acquisition has been concluded with the
purchase of a further opportunity completing shortly after the year end for an
aggregate consideration of #2.92m. The Company has also made two profitable
realisations of investments held within the venture portfolio. The sales
generated an aggregate 62% level of profit, after all costs, of #1.38m on the
Company's combined investment of #2.24m.



*        An increase in the debt facility limit and the re-basing of the
property values for bank security purposes was completed in January 2006 and
released circa #40m for investment during 2006 and this will be targeted towards
a blend of venture portfolio opportunities and  London and South East balanced
portfolio opportunities.



*        If further opportunities present themselves over the coming months, it
is an objective of the Company to further expand its equity base.










Outlook for 2006



Commenting on the outlook for 2006, Richard Burrell, Investment Manager to the
Company, said:



"At the start of 2006 there appears to be continued appetite from all areas of
the market for property opportunities which suggests further yield compression
will drive performance. Latest UK economic indicators suggest a moderation in
economic activity and a slowdown in consumer spending and confidence, despite a
generally reasonable Christmas trading period. This may have an impact on future
interest rate movements which are likely to remain relatively flat or trend
downward during the year which may positively impact on commercial property
values. Recent downward shifts in long term interest rates, since the beginning
of the year, seem to support this view.


We remain cautious as to the sustainability of continued rising capital values
and it seems unlikely that continued double digit returns will be seen going
forward. We do not however believe that there will be a "hard landing", rather a
softening of property returns to more sustainable single digit levels. We
believe the Company to be well placed to meet its objectives through an exciting
mix of balanced and venture opportunities, and a strong core portfolio holding
with an attractive blended unexpired term and exposure to each of the main
property sectors."





The full text of the results are available on RNS.



                                  - e n d s -



For further information, please contact:

Richard Burrell                                Shirley Hatherton/Charlotte Edgar
Berrington Fund Management                     Lansons Communications
020 7659 6271                                  020 7294 3615 / 020 7294 3622






                      This information is provided by RNS
            The company news service from the London Stock Exchange
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