Costamare Inc. reported unaudited financial results for the fourth quarter and year ended December 31, 2018.
Adjusted Net Income available to common stockholders(1) of $ 13.3 million or $ 0.12 per share and $ 46.9 million or $ 0.42 per share for the three-months and the year ended December 31, 2018, respectively.
During 2018, ordered new buildings and acquired secondhand vessels for a total value of approximately $ 900.0 million. The TEU-weighted average employment period of the vessels involved in these transactions is 8 years.
Successfully concluded the acquisition of the 60% equity interest of York Capital Management in five 2016–built, 14,000 TEU containerships bringing the Company’s ownership in these five vessels to 100% (included in the above mentioned $ 900.0 million transactions).
Chartered in total 12 vessels over the quarter.
Declared dividend of $0.10 per share on its common stock and dividends on all four classes of its preferred stock.
(1) Adjusted Net Income available to common stockholders is a non-GAAP measure and should not be used in isolation or as a substitute for Costamare’s financial results presented in accordance with U.S. generally accepted accounting principles (“GAAP”). For the definition and reconciliation of this measure to the most directly comparable financial measure calculated and presented in accordance with GAAP, please refer to Exhibit I.
New Business Developments
A. New acquisitions
In November 2018, we acquired the 60% equity interest of York Capital Management in five 2016–built, 14,000 TEU containerships. The acquisition brought the Company’s ownership in these five vessels, which currently operate under long term charters to Evergreen expiring in 2026, to 100%.
B. New financing transactions
In October 2018, we entered into a financing agreement with a European financial institution for the two 1996-built, 8,044 TEU containerships, the Maersk Kleven and Maersk Kotka. The loan facility will be repayable over 2.5 years.
In December 2018, we concluded the refinancing of the outstanding loan amount of $ 44.4 million under two credit facilities with a leading European financial institution. The new facility matures in November 2023 and has a balloon payment at expiry of $ 27.0 million.
C. Vessel disposals
In November 2018, we sold for demolition the 1994-built, 1,162 TEU container vessel Petalidi.
D. New charter agreements
The Company has chartered in total 12 vessels over the quarter. More specifically, the Company:
– Agreed to extend the charter of the 2017-built, 11,010 TEU containership Cape Sounio with ZIM for a period of 12 to 14 months at charterers’ option, starting from March 15, 2019, at a daily rate of $33,500.
– Agreed to extend the charter of the 2017-built, 11,010 TEU containership Cape Artemisio with Hapag Lloyd for a period of 10 to 12 months at charterers’ option, starting from May 12, 2019, at a daily rate of $32,500.
– Agreed to extend the charter of the 2000-built, 4,890 TEU containership Oakland Express with Hapag Lloyd for a period starting from February 1, 2019 and expiring at charterers’ option during the period from November 30, 2019 to January 31, 2020, at a daily rate of $10,000.
– Agreed to extend the charter of the 2000-built, 4,890 TEU containership Halifax Express with Hapag Lloyd for a period starting from February 1, 2019 and expiring at charterers’ option during the period from October 30, 2020 to December 30, 2020, at a daily rate of $10,000.
– Agreed to extend the charter of the 2000-built, 4,890 TEU containership Singapore Express with Hapag Lloyd for a period starting from February 1, 2019 and expiring at charterers’ option during the period from July 31, 2020 to September 30, 2020, at a daily rate of $10,000.
– Agreed to charter the 1997-built, 7,403 TEU containership Kokura (ex. Niledutch Panther) with CMA CGM for a period of 42 to 84 days at charterers’ option, starting from November 25, 2018, at a daily rate of $11,000.
– Agreed to extend the charter of the 2003-built, 5,928 TEU containership Venetiko with Hapag Lloyd for a period starting from November 19, 2018 and expiring at charterers’ option during the period from June 1, 2019 to November 1, 2019, at a daily rate of $9,750.
– Agreed to extend the charter of the 2001-built, 5,576 TEU containership Ensenada with ONE for a period of 50 to 70 days at charterers’ option, starting from February 21, 2019, at a daily rate of $9,150.
– Agreed to extend the charter of the 2004-built, 4,992 TEU containership Piraeus for a period of 42 to 168 days at charterers’ option, starting from November 16, 2018. Subsequently agreed to extend the charter for a period of 42 to 126 days at charterers’ option, starting from December 28, 2018.
– Agreed to extend the charter of the 2000-built, 1,645 TEU containership Neapolis with Evergreen for a period of 4 to 7 months at charterers’ option, starting from February 14, 2019, at a daily rate of $7,100.
– Agreed to extend the charter of the 1996-built, 1,504 TEU containership Prosper with Evergreen for a period of 4 to 7 months at charterers’ option, starting from January 28, 2019, at a daily rate of $6,975.
– Agreed to extend the charter of the 2001-built, 1,078 TEU containership Luebeck with MSC for a period of 11 to 13 months at charterers’ option, starting from February 19, 2019, at a daily rate of $6,200.
E. Dividend announcements
On January 3, 2019, we declared a dividend for the quarter ended December 31, 2018, of $0.10 per share on our common stock, payable on February 7, 2019, to stockholders of record of common stock as of January 22, 2019.
On January 3, 2019, we declared a dividend of $0.476563 per share on our Series B Preferred Stock, a dividend of $0.531250 per share on our Series C Preferred Stock, a dividend of $0.546875 per share on our Series D Preferred Stock and a dividend of $0.554688 per share on our Series E Preferred Stock which were all paid on January 15, 2019 to holders of record as of January 14, 2019.
Mr. Gregory Zikos, Chief Financial Officer of Costamare Inc., commented: “During the fourth quarter and the year the Company delivered profitable results. The year 2018 closed on a mixed note; while charter rates rallied in the first half of the year, average rates fell in the second half finishing the year slightly below their starting point, except for the larger ships. During the last weeks however, we have witnessed a tighter market with regards to large modern vessels, where supply has been limited driving up charter rates.
We have been active during the year, entering into new transactions with a total value of close to $ 900 million. These include both new buildings and second hand ships with an average time charter duration of 8 years.
Finally, on the financing side, we financed with a leading financial institution the two recently acquired 1996-built, 8,000 TEU sister containerships, as well as a $ 25 million balloon due in December of last year secured by older vessels. We have no meaningful balloon repayments over the next 12 months.
