Taylor Maritime Investments Limited (TMI / TMIP), the specialist dry bulk shipping company, announces that it has agreed to sell one 2006 built Handysize vessel and one 2011 built Supramax vessel for a combined $33.3m of proceeds, realising a premium to the Fair Market Values included in the Net Asset Value reported as at 31 December 2021. The transactions represent IRRs in excess of 100% for each vessel and a MOIC of 1.4x and 1.7x respectively. Both of the vessels were IPO seed assets. The sales are expected to complete in Q2 2022, according to the company's release.
Since Chinese New Year, a time of typical seasonal weakness, the Baltic Handysize Index TCA has improved by c.49% to a level of $26,414 per day on 8 March 2022. Clarksons also recently increased their 10-year-old 32k dwt Handysize benchmark value to $18.5m up from $17m at the end of 2021. The underlying fundamentals of the Handysize sector remain unchanged with constrained supply side growth and steady demand, potentially supporting earnings. Against an inflationary backdrop, shipping has historically been seen as a hedge as commodity prices, freight rates and, eventually, asset values rise.
From a market perspective, Clarksons data puts Ukraine (50 million tonnes) and Russia (36 million tonnes) at c.17.5% of the seaborne grain trade. Based on recent trading history, TMI estimates port calls to Ukraine and Russia accounted for under 2% and 3% respectively of total port calls by TMI vessels. The commodities carried on TMI ships from Ukraine and Russia are necessity goods such as grains. While there may be regional trade turbulence in the near-term, TMI expects that international trade patterns will adapt as demand needs to be satisfied from other sources; as current buyers of Black Sea grain potentially look to North and South America as a substitute, a greater proportion of Black Sea grain will be picked up by China.
About the Company
Taylor Maritime Investments Limited is a recently established, 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. (on the Initial Issue Price).
The Company's initial investments comprise Geared Ships (Handysize and Supramax types) employed utilising a variety of employment/Charter strategies.
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.