Taylor Maritim Regulatory News (TMI)

TAYLOR MARITIME INVESTMENTS LIMITED

INTERIM RESULTS STATEMENT FOR THE PERIOD 31 MARCH 2021 TO 30 SEPTEMBER 2021

SUCCESSFUL VESSEL ACQUISITIONS AND CHARTERING COMBINED WITH POSITIVE OUTLOOK

15 December 2021 - Taylor Maritime Investments Limited (TMI / TMIP), the specialist dry bulk shipping company, announces its interim results for the initial period ended 30 September 2021.

Key highlights:

· Taylor Maritime Investments Limited is a compelling investment opportunity in the shipping sector with an ambition to deliver strong income and capital returns

· Successful IPO on 27 May on the London Stock Exchange raising $254m ($160m in cash and $94m in consideration shares), followed by a subsequent capital raise of $75m on 28 July

· Selective strategy to acquire second hand, highest quality Japanese built Handysize vessels at attractive prices with nine vessels acquired since IPO taking fleet to 32 vessels (20 delivered, 12 undelivered at 30 September). 29 vessels delivered post period with 3 vessels remaining to be delivered by end of January 2022

· Substantial NAV appreciation with unaudited NAV up from $249m at IPO to $458m at 30 September. Total NAV Return per Ordinary Share of 43% for the period from IPO to 30 September. NAV per share up from $0.9800 to $1.3982 per share. This was driven by attractive vessel acquisitions that have strongly appreciated in value during the period

· At 30 September, TMI's fleet consisted of 32 vessels with a total market value of US$535 million, of which 20 vessels were delivered as at 30 September (with a market value of US$325 million) and 12 vessels were yet to deliver (with a market value of US$210 million). Of the 32 vessels, 30 are Handysize and 2 are Supramax

· Successful chartering out of vessels with strategic balance between pricing and contract longevity, including achieving two 3-5 month charters with cash yields >50% and three 2-3 year charters with cash yields between 15-25% after period end

· Fleet average net time charter rate at 30 September approximately $17,000 per day, with average duration of eight months and average annualized gross unlevered yield in excess of 20% ($20,000 per day, average duration of nine months and average annualised gross unlevered yield of 29% as at 25 November investor update presentation)

· Committed to integrating environmental, social and governance factors into the Company's investment process including fleet GHG gas emission reductions through energy efficiency standards and approved modifications for vessels owned and acquired

· Total Group Operating Profit on a look-through basis for the period of $22m and Fair Value gain of $108m and a Profit for the period before tax of $127m

· Delivery on target dividend policy with first quarterly dividend for end September of 1.75 cents per share and forecast dividend cover for the full financial period ending 31 March 2022 of 3.9x. Scope to pay an extraordinary dividend if the strong market persists

· Buoyant market, leading position in Handysize niche and continued market strength expected for the next 2 to 3 years

· Subsequent to the period, TMI agreed to acquire a 22.6% stake in Grindrod Shipping for $77.9m. The transaction is expected to close in early 2022 and no later than 28 February 2022 and will bring the Group's total holding in the Grindrod Shipping to 25.7% including the 3.1% position acquired by TMI in the open market (of which 2.2% announced on 13 December 2021 RNS).

Commenting on performance in this first interim period, Nicholas Lykiardopulo, Independent Chair, said:

"As a specialist owner of Handysize vessels, the workhorses of the dry bulk shipping trade transporting necessity goods around the world, TMI has made a strong start as a listed company, delivering on its investment thesis by growing the fleet at attractive prices. We are focused on high-quality, fuel-efficient vessels which we can operate in an increasingly sustainable way as we transition towards alternate fuels. TMI has built a strong foundation since IPO, with an excellent fleet and highly cash generative charters which will allow us to deliver predictable long-term income to shareholders".

Edward Buttery, CEO, added:

"This has been a formative, dynamic period following our well-received IPO, a period of milestones and momentum - efficient deployment of IPO proceeds through new vessel acquisitions, successful chartering balancing attractive rates and visibility, and a strong investment position marrying agility with financial discipline. TMI is on a firm footing, operating in a clearly defined niche of a market with systemic demand". 

Outlook

Given buoyant markets, the highest demand and charter rates seen in a decade and attractive opportunities for the specialist vessel buyer, we anticipate continued market strength for the coming two to three years. The favourable combination of slowing fleet growth, healthy demand for commodities, likely slower operating speeds for the global fleet and muted ship ordering arising from evolving emissions regulations will benefit our earnings, secondhand asset values and shareholder returns. The Board remains committed to meeting its stated target dividend commitments, but will consider the company's financial position at the year end and the potential for an additional extraordinary dividend.

Click on, or paste the following link into your web browser to view the Interim Report.

http://www.rns-pdf.londonstockexchange.com/rns/6492V_1-2021-12-14.pdf

The full results are available on the Company's website at www.taylormaritimeinvestments.com.

Notes to editors 

Enquiries:

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 Geared vessels which are primarily second-hand.

The Company's initial investments comprise Geared Ships (Handysize and Supramax types) employed utilising a variety of employment/Charter strategies.

The Company intends to pay dividends on a quarterly basis with dividends declared in January, April, July and October. The Company declared its first dividend of 1.75 cents per Ordinary Share for the initial period ended 30 September 2021 in October 2021. The Company targets a Total NAV Return of 10 to 12% p.a. (net of expenses and fees) over the medium to long term.

The Company has the benefit of an experienced Executive Team led by Edward Buttery. The Executive Team previously 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.

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

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.