The market for tankers has generally held up better than that for dry bulk and
container carriers recently. The Baltic Dry Index slid 90% this year and the China Morning Post reported a 61% fall in freight rates between Europe and Asia last month from a year earlier on Oct 10 2008. SIAS believe that the crisis will impact dry bulk and container vessel values more severely than those of tankers. FSLT’s diversified vessel portfolio will help mitigate the
impact from this.

Valuation & Recommendation�� The DCF analysis uses the amount to be distributed to unitholders till the end of 2014 as the periodic cash flows and assumes that the vessel portfolio is liquidated and all debts paid off.

Target Price S$0.59