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Trustee-Manager's Fees

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  1. What are the fees payable to the Trustee-Manager?
    • The following is a summary of fees payable by FSL Trust to the Trustee-Manager in connection with the establishment and on-going management and operation of FSL Trust:
      (a) Trustee fee 0.02% per annum of the value of the Trust Property
      (b) Management fees 4.0% of the cash lease rentals, net of any other commissions or deductions by third parties and all applicable tax, duties and levies whatsoever imposed by the relevant authorities in Singapore or elsewhere.
      (c) Acquisition fee 1.0% of vessel acquisition cost.
      (d) Divestment fee 0.5% of vessel disposal proceeds, excluding proceeds from exercise of original purchase or early buy out options.
      (e) Incentive fees The Trustee-Manager will receive incentive fees determined on the basis of the quarterly DAU growth over the annualized quarterly forecast DPU of 2.13 US cents for 2007. These incentive fees are payable quarterly to the Trustee-Manager either in cash or, at the election of the Trustee-Manager, through the issue of new units.
  2. Please explain the concept of DAU used to calculate the management incentive fee?
    • DAU is the Net Distributable Amount less any Retained Distributable Amount^ and excluding non-recurring income and related costs, as at the end of relevant quarter per unit then in issue.

      The use of DAU serves to align the interests of the Trustee-Manager with those of the unitholders by excluding spikes in income from extraordinary activities (such as proceeds from the sale of a vessel) when calculating the incentive fees.

      ^Amount not distributed, if any.

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.