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Units

If you have specific question which is not found in this FAQ, please email us at investors@firstshiplease.com

  1. Why is Price-to-Earnings ratio (P/E) a poor measure of value for shipping trusts? What is the common valuation matrix used to benchmark business/shipping trusts?
      • A useful and common valuation metric is distribution yield which is a function of the annualised distribution per unit (DPU) divided by the prevailing unit price.
      • The returns delivered by a business trust include the regular distributions paid and the capital gains. As distributions are dependent on cash flows and not on accounting profits, using ratios involving earnings, such as P/E, will not be meaningful.
  2. How is distribution yield per unit calculated?
    • Distribution yield is derived from dividing annualised DPU by the prevailing unit price.
  3. Why did the company change its trading currency from US$ to S$ in November 2007?
    • The change in trading currency was intended to enhance liquidity of FSL Trust's units as it removes the necessity of foreign exchange conversion. With easier settlement of trades, retail investors, in particular, will find it more convenient to trade in FSL Trust's units.

      In addition, several funds and insurance companies in Singapore, which are permitted to invest only in SGD-denominated stocks, can now consider FSL Trust as an investment option. This will expand the range of potential institutional investors.
  4. How many FSL Trust units are currently in issue?
    • Please refer to the number of units in issue here.

Important Notes:

These FAQs may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from other companies, changes in operating expenses, trust expenses and governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business. Investors are cautioned not to place undue reliance on these forward-looking statements, which are based on current view of management on future events.