Pasific Shipping Trust (PST) is looking to restructure in reaction to poor investor response after six months of listing on the Singapore exchange, reported Channel News Asia.
Lower earnings reported by shipping stocks, like NOL and Maersk, are putting a damper on shipping trusts, according to PST executives, who said it will take time before investors get acquainted with shipping assets as investments.
"Our stock is misunderstood because investors relate it to shipping companies, which are not doing well because the container shipping market is a bit flat. But PST stock is more fixed-income based on a long-term charter," said Pacific Shipping Trust CEO Subhangshu Dutt.
PST, which owns eight ships chartered by Pacific International Lines (PIL), also plans to branch out to acquire more assets.
"My aim would be to charter with non-PIL entities," said Mr Dutt. "That would give investors confidence because it would no longer be a single-party risk - the charter base would be diversified. Bulk carrier and the tanker markets are doing well and we see a lot more interest from owners of those kinds of ships."
PST offers a 9 per cent forward yield - much higher than the 3.6 per cent or 5.6 per cent from real estate investment trusts. But financial players say it is a challenge to maintain such yields.