Rickmers Maritime (RMT) posted a 11.4% QoQ increase in 4Q08 revenue to US$29.6m - the results met our expectations except for a surprise US$3.5m non-cash provision for vessel impairment. RMT will pay out 2.25 US cents for the quarter, flat QoQ and up 5.1% YoY. The manager said that given current conditions, it would not provide any guidance on FY09 DPU. RMT's gearing stands at 1.5x debt-to-equity as at 31 December. It is contracted to acquire US$1.1b worth of containerships over the next two years. The trust needs fresh funding to cover both its FY10 acquisitions and its debt repayment schedule. An equity issue in FY09 itself is, in our opinion, necessary to strengthen RMT's negotiating position with lenders. But the market needs more clarity on financing conditions, the extent of fresh equity required, and the odds of 'disappearing' the order book (through an outright vessel sale, a sale-and-leaseback or a sponsor "bail-out"). Maintain HOLD with S$0.40 fair value.