FSL – BT

FSL Trust plans distribution of US$11m

FIRST Ship Lease Trust (FSL Trust) is making a total distribution of US$11.15 million to unitholders for the third quarter ended September 2007, manager FSL Trust Management (FSLTM) said yesterday.

This represents 100 per cent of the amount available for distribution.

Based on 500 million outstanding units, the distribution per unit (DPU) is 2.23 US cents, 4.7 per cent higher than the DPU of 2.13 US cents projected at the time of the trust’s initial public offering in March 2007.

FSL Trust also reported revenue of US$12.82 million for the quarter, 10.7 per cent higher than projection. The rise in revenue was due primarily to the purchase and concurrent leaseback of three product tankers from James Fisher Everard Limited on June 1, 2007.

Said Philip Clausius, chief executive officer of FSLTM: ‘We are pleased with our third-quarter achievements. Our demonstrated ability to grow FSL Trust through accretive acquisitions has enabled the trust to announce distributions to our unitholders that exceed our projection.

‘This attests to the successful execution of our distribution growth strategy which we intend to continue, in order to enhance value to our unitholders. This will be underpinned by our active participation in the global ship finance market.’

FSL Trust had a portfolio of 16 vessels as at Sept 30, 2007, comprising four container ships, seven product tankers, three chemical tankers and two dry bulk carriers.

The trust’s distribution for the quarter translates into an annualised distribution per unit of 8.92 cents, 4.7 per cent higher than projected.

Based on FSL Trust’s closing unit price of US$0.86 on Oct 17, this translates into a distribution yield of 10.4 per cent.