TMI Taylor Maritime Investments Limited

TIDMTMIP TIDMTMI

RNS Number : 2038Q

Taylor Maritime Investments Limited

27 June 2022

27 June 2022

Taylor Maritime Investments Limited (the "Company")

Vessel sale for $17.2m

Average time charter rate increased to c.$20,250 per day

Average cash yield of c.29%

Taylor Maritime Investments Limited, the specialist dry bulk shipping company, announces that it has agreed to sell a 2009 built Handysize vessel for proceeds of $17.2 million. The vessel was an IPO seed asset and the sale is expected to complete before the end of August 2022, generating an IRR of 80% and MOIC of 1.9x. This represents an 8% premium to the 31 March 2022 Fair Market Value. Once the sale completes, the fleet will comprise of 27 ships with no further vessels currently contracted for sale.

Separately, the Company has agreed with the buyer to cancel the vessel sale previously announced on 30 March 2022. The vessel's value has since increased by more than 10% over the sale price and the ship has now been fixed on a 1-year charter at a yield in excess of 40%, as announced on 30 May.

The current average net time charter (TC) rate for the fleet is $20,250 per day with an average annualized unlevered gross cash yield of 29%. This is based on last announced Fair Market Values and compares to the equivalent figures of $18,600 per day and 24% yield as at 31 March 2022. The a verage charter duration cover for the fleet is 8 months versus 6 months at the last quarter end.

The Company has covered 53% of remaining fleet days for the Financial Year ending 31 March 2023 at an average net TC rate of $19,700 per day. This provides strong earnings visibility and certainty, with the opportunity in this good market, to secure more charters at attractive rates for the remaining open days for the fleet.

Edward Buttery, Chief Executive Officer, commented: "Through this sale, we've been able to crystallise the increase in asset values since the end of the last quarter. Meanwhile, yields continue to be strong and we've now locked in a substantial level of revenue across the portfolio at very attractive yields as part of our focus on securing more cover for the fleet going into the summer. This is consistent with our commercial strategy to have a mix of charter durations to balance revenue optimisation and earnings visibility, which is key to delivering attractive yields, stable returns and NAV appreciation to our shareholders."

ENDS

For further information, please contact:

 
Taylor Maritime Investments Limited   IR@tminvestments.com 
 Edward Buttery 
 Alexander Slee 
Jefferies International Limited 
 Investment Banking 
 Stuart Klein 
 Gaudi Le Roux                        +44 20 7029 8000 
Montfort Communications               TMI@montfort.london 
 Alison Allfrey 
 George Morris Seers 
 

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, its shares trading on the Main Market of the London Stock Exchange since May 2021. 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. (on the Initial Issue Price). The stock offers a compelling and differentiated investment opportunity combining growth and strong shareholder returns, its investment objective being to deliver strong cashflow, stable income and potential for capital growth.

The Company invests in high quality, Japanese built vessels which are second-hand and acquired at valuations below long-term average prices and depreciated replacement cost. The current portfolio numbers 28 vessels. The Company has a leading position in the Handysize shipping sector and, thanks to versatile geared vessels delivering necessity goods, provides an attractive, defensible yield underpinned by zero long-term structural gearing, financial discipline and an optimal balance of charter rates and durations. It has a selective growth strategy focusing on accretive opportunities to increase shareholder returns and recycle capital efficiently.

The Company intends to pay dividends of 1.75 cents per Ordinary Share on a quarterly basis representing an annual yield of 7% on the IPO price of $1.00, with a targeted total NAV return of 10-12% per annum (net of expenses and fees but excluding any tax payable by Shareholders) over the medium to long-term. The Board approved payment of a special dividend of 3.22 US cents per share in respect of the period to 31st March 2022 on 6th May 2022, which brought total dividends declared for the period from IPO to 31 March 2022 to 8.47 US cents per share, representing a dividend yield on our IPO of approximately 10% on an annualised basis. This reflected excess cash generation in what continues to be a historically strong market and a desire to return capital to shareholders in a timely manner.

Sustainability is at the heart of the way in which the Company is managed and it is committed to achieving a long-term target of zero carbon emissions by 2050. Substantial technological advances are a key element of this for the broader shipping industry, with near term incremental progress effected by initiatives such as retrofitting the fleet with energy saving devices, using low sulphur fuels and trialling biofuels.

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.

About Geared Vessels

The Company specializes in the acquisition and chartering of vessels in the Handysize and Supramax bulk carrier segments of the global shipping sector. Geared vessels are characterised by their own loading equipment. 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 and stability of earnings.

For more information, please visit www.taylormaritimeinvestments.com .

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