Pacific Shipping Trust exceeds performance targets

Singapore: Despite a lukewarm initial reception by investors, the Pacific Shipping Trust is starting to yield the type of returns that will make it a potential darling of the Singapore Stock Exchange.

Fourth quarter 2006 results for Singapore's first publicly listed shipping investment vehicle exceeded expectations with Distribution Per Unit  (DPU) of 1.04 US cents, 2% than projected during its IPO in May last year. Based on the issue price of US$0.45, the distribution amounts to a tax-free annualised yield of 9.17%, exceeding the projected yield of 9% in its prospectus.        

PST charters eight container vessels with average age of four years to Pacific International Lines (PIL) for between eight and 10 years. PIL is the world's 19th largest container shipping company and sponsor of the IPO.  [25/01/07]