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MONACO - Costamare Inc. (NYSE:CMRE), a leading containership company with a market capitalization of $1.07 billion, has confirmed the dates for the spin-off of its dry bulk shipping business, now named Costamare Bulkers Holdings Limited. According to InvestingPro data, the company currently trades at attractive valuations with a P/E ratio of 3.62 and P/B ratio of 0.43, suggesting potential undervaluation. The Board of Directors has finalized plans to distribute Costamare Bulkers shares to existing shareholders on May 6, 2025.
The record date for shareholders to be eligible for the distribution is set for April 29, 2025. Shareholders will receive one share of Costamare Bulkers for every five shares of Costamare Inc. they own as of the record date. The company has demonstrated strong financial performance with $2.08 billion in revenue and $627.43 million in EBITDA over the last twelve months. The distribution is subject to certain conditions, including the effectiveness of the Registration Statement filed with the U.S. Securities and Exchange Commission (SEC) and approval for listing on the New York Stock Exchange (NYSE).
Trading of Costamare Inc. shares will include entitlement to Costamare Bulkers shares from the record date until the distribution date, under a "due-bill" trading arrangement. "When-issued" trading for Costamare Bulkers shares is expected to start on or about May 1, 2025, under the ticker symbol CMDB WI. Simultaneously, Costamare Inc. shares will also trade on an "ex-distribution" basis under the symbol CMRE WI, without entitlement to the new shares.
Costamare Bulkers Holdings Limited, which will operate as an independent entity, will own and manage a fleet of 38 dry bulk vessels with a capacity of approximately 3,017,000 deadweight tonnage (dwt). The company will also engage in chartering operations and may employ hedging solutions. The new company’s common stock is set to begin regular-way trading on the NYSE under the ticker symbol CMDB on May 7, 2025.
Morgan Stanley & Co. LLC is advising Costamare Inc. on the spin-off process. The company’s decision to separate its dry bulk business is intended to allow a focused strategy for each entity. Costamare Inc. will continue its operations as a prominent containership owner and charter provider, with a fleet of 68 containerships totaling approximately 513,000 TEU in capacity.
The information provided here is based on a press release statement from Costamare Inc. Investors are encouraged to consult with their financial advisors regarding the specific implications of the spin-off. Despite recent stock price weakness, with a -36.85% return over the past six months, the company maintains a strong dividend track record with 15 consecutive years of payments and currently offers a 5.25% yield. For deeper insights into CMRE’s valuation and growth prospects, investors can access comprehensive analysis through InvestingPro, which features detailed financial health scores and additional ProTips. The company’s future performance and realization of potential strategic benefits from the spin-off are subject to various risks and uncertainties.
In other recent news, Costamare Inc. announced plans to spin off its dry bulk shipping business into a new independent entity, Costamare Bulkers Holdings Limited. This strategic move is intended to enhance financial flexibility and focus on distinct market opportunities for both the container and dry bulk segments. The spin-off, which is set to be completed within the year pending regulatory approvals, will involve a pro rata distribution of shares to Costamare Inc.’s shareholders. Morgan Stanley & Co. LLC is acting as the financial advisor for this transaction. Additionally, Stifel analysts recently adjusted their outlook on Costamare Inc., cutting the stock’s price target to $12 from $13 while maintaining a Hold rating. Despite the company securing higher-than-expected charter rates for 12 vessels, Stifel cited increased depreciation and interest expenses as reasons for the downward revision. The analysts also highlighted potential market oversupply challenges that could affect Costamare’s growth prospects. These developments reflect ongoing strategic adjustments and market assessments impacting Costamare’s operational and financial landscape.
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