Stock Name: FSL Trust
Company Name: FIRST SHIP LEASE TRUST
DBS Vickers Securities in an Oct 21 research report says: "As a result of full-quarter lease revenue from the two newly acquired vessels leased to TORM, revenue was up 22% to US$28.6 million.
"Cash earnings were boosted 16% y-o-y and 11% q-o-q to US$15.6 million due to the accretive TORM deal and lower interest expenses following the expiry of covenant waiver period in 2Q11. After loan repayments of US$7.2 million, net income available for distribution was up 38% y-o-y to US$8.4m, but management decided to maintain DPU of 0.95 US cents for the quarter.
"Our target price is revised down to 34 cents (14% target yield) as we account for the higher risk environment. Upside may be capped by recent round of equity placement at 35 cents. MAINTAIN HOLD."
Company Name: FIRST SHIP LEASE TRUST
| Research House: DBS Vickers | Price Call: HOLD | Target Price: 0.34 |
DBS Vickers Securities in an Oct 21 research report says: "As a result of full-quarter lease revenue from the two newly acquired vessels leased to TORM, revenue was up 22% to US$28.6 million.
"Cash earnings were boosted 16% y-o-y and 11% q-o-q to US$15.6 million due to the accretive TORM deal and lower interest expenses following the expiry of covenant waiver period in 2Q11. After loan repayments of US$7.2 million, net income available for distribution was up 38% y-o-y to US$8.4m, but management decided to maintain DPU of 0.95 US cents for the quarter.
"Our target price is revised down to 34 cents (14% target yield) as we account for the higher risk environment. Upside may be capped by recent round of equity placement at 35 cents. MAINTAIN HOLD."
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