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LONDON - Taylor Maritime Investments Limited (LSE:TMI), a specialist dry bulk shipping investment company, reported a decrease in its net asset value (NAV) for the quarter ending December 31, 2024, alongside the declaration of an interim dividend and a special dividend following recent vessel sales. The unaudited NAV stood at $1.28 per share, down from $1.48 at the end of the previous quarter.
The company announced an interim dividend of 6 cents per share, comprising a regular 2 cents and an additional 4 cents special dividend, reflecting its recent divestment of 28 ships over the last two years, 13 of which were sold in 2024. These sales, achieved at or close to NAV, have contributed to a debt reduction for the group.
During the reported quarter, TMI's fleet earned an average time charter equivalent (TCE) of $12,150 per day, outperforming benchmark indices by 3% for Handysize and 11% for Supra/Ultramax fleets. However, the market rates declined as Panama Canal transits returned to pre-drought levels, releasing tied-up tonnage and weakening seasonal commodity demand due to uncertainties about the incoming US administration's trade policies.
The fleet's market value decreased by approximately 8.2% quarter-on-quarter to $560.2 million, influenced by softening freight markets and concerns over US trade policies, although secondhand vessel values remain above their long-term average. The fleet, composed of 31 Japanese-built vessels at quarter-end, will reduce to 30 after the completion of a pending sale.
TMI has refinanced its debt, consolidating two revolving credit facilities into a single senior secured facility with a lower margin and no scheduled repayments for two years. The total outstanding debt was reduced to $252.0 million at the end of December, with a debt-to-gross assets ratio of 35.4%.
Following shareholder approval, TMI is set to transition from a closed-ended investment fund to a commercial company around February 10, 2025, and will be renamed Taylor Maritime Limited. The move is part of its strategy to align more closely with commercial shipping operations.
The special interim dividend, announced on December 11, 2024, will be paid on February 28, 2025. Since its initial public offering (IPO), TMI has returned approximately $113.8 million to shareholders through 14 consecutive quarterly dividends, including two special dividends.
Looking ahead, the dry bulk market is expected to show modest growth in 2025, with minor bulk volumes projected to increase by 2.5% and grain volumes by 1.5%. The medium-term outlook remains positive, with a modest net supply growth forecast and environmental regulations potentially enhancing the value of efficient vessels.
This report is based on a press release statement from Taylor Maritime Investments Limited.
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