New Charters for Five Vessels
3 September 2021
Taylor Maritime Investments Limited
Charter Update
Five new charters announced, including three of longer duration at attractive yields
Taylor Maritime Investments Limited, the specialist dry bulk shipping company, announces that it has secured new charters for five vessels, comprising three vessels acquired with proceeds from the recent equity raise and two seed assets.
· Two and three year charters secured on the three new vessels delivering average annualized unlevered gross cash yields of more than 20%
· Seven month charters agreed on two seed vessels delivering average annualized unlevered gross cash yields of over 50%
· TMI's delivered fleet will increase to 22 vessels in September on delivery of the three new vessels
· Delivery of six further committed vessels expected in November and a further four by January 2022 taking total fleet to 32 vessels
Longer duration charters secured in strong market
The strong earnings environment has continued in the geared dry bulk sector. As a result, and consistent with its strategic plan, TMI has secured long term charters for three ships at attractive yields, thereby enhancing earnings visibility. These ships are amongst the seven vessels acquired using proceeds from the recently completed equity raise and are due to deliver in September. Two of the three have been fixed for an average period of more than two years and the third for a period of three years, securing average annualized unlevered gross cash yields of more than 20%.
Consistent with TMI's commercial strategy of maintaining a balance of charter terms to optimise pricing and contract longevity, TMI retains a portion of the fleet on shorter period charters, benefiting from the premium they command. In this regard, two seed vessels have had their charter contracts renewed (a reflection of customer loyalty) or been re-employed on new charters with an average duration of seven months at average annualized unlevered gross cash yields in excess of 50%.
TMI expects to take delivery of a further six committed vessels before the end of November, and a further four by January 2022, which will continue to expand the earning power of the fleet.
Commenting on the new charters, Edward Buttery, Chief Executive Officer, said:
"We have not only managed to secure attractive charter rates for our vessels but locked in significantly longer durations for three of them, reflecting the strength of the market. This provides us with greater visibility and certainty of cashflows, while enabling us to deploy other vessels in the fleet on a more opportunistic basis, benefiting from ongoing strong market demand."
ENDS
For further information, please contact:
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Taylor Maritime Investments Limited
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IR@tminvestments.com |
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Jefferies International Limited Investment Banking Stuart Klein Gaudi Le Roux Sector coverage Doug Mavrinac Hugh Eden
Montfort Communications Nick Bastin Alison Allfrey Miles McKechnie |
+44 20 7029 8000
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Notes to editors
About the Company
Taylor Maritime Investments Limited is an internally managed investment company listed on the Premium Segment of the Official List and traded on the Main Market of the London Stock Exchange. The Company invests in a diversified portfolio of vessels which are primarily second-hand and which, historically, have demonstrated average yields in excess of the Company's target dividend yield of 7% p.a. and were acquired at valuations that are expected to be below long-term average prices.
The Company's initial investments comprise Geared Bulk Carriers (Handysize and Supramax types) employed utilising a variety of employment/Charter strategies.
The Company intends to pay dividends on a quarterly basis with dividends declared in January, April, July and October. The Company expects to declare its first dividend of 1.75 cents per Ordinary Share for the initial period ended 30 September 2021 in October 2021. Once the Company is fully invested, the Company will target a Total NAV Return of 10 to 12% p.a. (net of expenses and fees but excluding any tax payable by Shareholders) over the medium to long term.
The Company has the benefit of an experienced Executive Team led by Edward Buttery. The Executive Team have to date worked closely together for the Commercial Manager, Taylor Maritime. Established in 2014, Taylor Maritime is a privately owned ship-owning and management business with a seasoned team that includes the founders of dry bulk shipping company Pacific Basin Shipping (listed in Hong Kong 2343.HK) and gas shipping company BW Epic Kosan (formerly Epic Shipping) (listed in Oslo BWEK:NO). Taylor Maritime's team of experienced industry professionals are based in Hong Kong and London.
For more information, please visit www.taylormaritimeinvestments.com .
About Geared vessels
The Company specialises in the acquisition and chartering of vessels in the Handysize and Supramax bulk carrier segments of the global shipping sector. These "Geared" vessels, which have their own loading equipment, are mostly acquired second-hand, leveraging valuations that are well below long-term average prices. The Handysize market segment is particularly attractive, given the flexibility, versatility and port accessibility of these vessels which carry necessity goods - principally food and products related to infrastructure building - ensuring broad diversification of fleet activity.
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