First Ship Lease Trust (KEEP OUT)

Just days after its vessel “Verona I” was arrested at a Japanese port, another vessel “Nika I” was arrested yesterday in the PRC, due to non-payment of bunkers supplied. Both vessels, the largest of FSL’s product tanker fleet, are leased to affiliates of Groda Shipping and contribute ~15% of revenue. While FSL has no further exposure to Groda Shipping, stock price likely to remain under pressure, as falling utilization and contract rates expected to drive DPU lower.