First Ship Lease Trust

[Boon]

Hi Boon,

As you had previously linked to the "seekingalpha" article, the reported NAV and the current market value can vary to a large extent.
And in my opinion, this is what is happening for FSL's case. The NAV of USD 39 cents per share is optimistic and I think will not be the eventual amount.  

We saw this in rickmer's case as well when the reported NAV of Rickmer's fleet was bery high, resulting in a low P/B. However, with each passing year leases were not renewed at its high rate and rickmers had to take impairments whenever these leases were not renewed.

<vested>

Hi CY09,
 
NAV in the financial statements is updated every quarterly. It would be about 2 months out of date by the time shareholders have access to it.
 
True, current market value could deviate widely from the reported NAV, especially in a volatile period. But surely this could not be the common scenario at all times.
 
What is the NAV of FSL now?
 
If could be close to USD 39 cents now or it may not.
 
Assume it is at USD 30 cents now, would you rather take the money now or wait for 10 years later for USD 7.5 cents more?
 
Looks like NAV of FSL is trending down as well…….
 
NAV (USD cent) :
FY2012 =   48
FY2013 =   41
FY2014 =   41
FY2015 =   44
FY2016 =   39   
 
With no dividend being distributed, this would not be in the interests of unit-holders, if this trend persists…

How much more value could be added over the next 10 years by the management for unit-holders ?

Liquidation seems to be the best way to maximise shareholder value assuming NAV is close to market value.
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