FSL Trust (D8DU) Annual Reports

First Ship Lease Trust ("FSL Trust") is a business trust established on 19

March 2007 under the Business Trusts Act, Chapter 31A of Singapore. FSL Trust

is managed by its trustee-manager, FSL Trust Management Pte Ltd which is

responsible for safeguarding the interests of Unitholders and for investment

and financing strategies, asset acquisition and disposal policies, and the

overall management of the business of FSL Trust.

The overall objective of FSL Trust is to provide long-term non-tax driven

leasing services across major maritime segments. Specifically, FSL Trust

engages in the business of providing leasing services on a bareboat charter

basis to the international shipping industry, and owns and invests in a

portfolio of lease assets across various sub-sectors of this industry.

FSL Trust’s assets may be leased to international ship operators under

operating leases in the form of bareboat charters, whereby each lessee has

possession of the asset and pays rent to the lessor of the asset for the right

to use the asset. FSL Trust may also lease its assets under finance leases. FSL

Trust’s main objective is to derive a stable income stream from its portfolio

of lease assets.

The lease assets in FSL Trust’s portfolio will comprise long-term bareboat

charters of commercial ocean-going transportation vessels to customers. Upon

the listing of FSL Trust, the initial portfolio of vessels owned by FSL Trust

will comprise four containerships, four product tankers, three chemical tankers

and two dry bulk carriers with an average vessel age of approximately five

years, and bareboat charters with an average remaining term of approximately

nine years (excluding extensions and early buyout options). Moving forward, FSL

Trust intends to seek additional accretive leasing transactions in order to

grow its business.