Taylor Maritim Regulatory News (TMIP)

5 December 2023

Taylor Maritime Investments Limited (the "Company" or "TMI")

Two vessel sales completed

Taylor Maritime Investments Limited, the specialist dry bulk shipping company, today announces that it has completed the sale of one 2004 built 34k dwt Handysize vessel for gross proceeds of $7.8 million, generating an IRR of 44.2% and MOIC of c.1.8x. 

The previously announced sale of a 2007 bult 33k dwt Handysize vessel completed earlier this month generating gross proceeds of $9.0 million, an IRR of c.19% and MOIC of c.1.4x. 

In connection with the vessel sales, $11.4 million of debt will be repaid by the end of the quarter to 31 December 2023, resulting in a reduction to the Company's outstanding debt to $156.2 million (26.1% Debt to Gross Assets at TMI level based on 30 September 2023 Fair Market Values).

Overall, there have been fifteen asset disposals across the Company and Grindrod in 2023 which have been achieved at an average discount to carrying value of -4.0%.

Commenting on the trading update Edward Buttery, Chief Executive Officer, said:

"With these vessel sales, the two oldest in the TMI fleet, we continue to optimise our portfolio in the face of tightening environmental regulations while also deleveraging. Our focus on divesting older, less efficient tonnage while maintaining an attractive core of modern, Japanese-built geared dry bulk carriers means we are well positioned to deliver long term value to shareholders given favourable fundamentals for the geared dry bulk segment."

ENDS

Notes to Editors

About the Company 

Taylor Maritime Investments Limited is an internally managed investment company listed on the Premium Segment of the Official List, its shares trading on the Main Market of the London Stock Exchange since May 2021. The Company specializes in the acquisition and chartering of vessels in the Handysize and Supra/Ultramax bulk carrier segments of the global shipping sector. The Company invests in a diversified portfolio of vessels which are primarily second-hand. TMI's fleet portfolio currently numbers 19 vessels in the geared dry bulk segment. The ships are employed utilising a variety of employment/charter strategies.

On 20 December 2022, the Company announced it acquired a controlling majority interest in Grindrod Shipping Holdings Ltd ("Grindrod") (NASDAQ:GRIN, JSE:GSH), a Singapore incorporated, dual listed company on NASDAQ and the Johannesburg Stock Exchange. Grindrod has an owned fleet of 18 dry bulk vessels complementary to the Company's fleet. They are Japanese built, including 11 Handysize vessels and 7 Supra/Ultramax vessels. Grindrod has seven vessels in its chartered in fleet with purchase options on three.

The combined TMI and Grindrod fleet numbers 40 vessels (including chartered in vessels with purchase options).

The Company's target dividend policy is 8 cents p.a. paid on a quarterly basis, with a targeted total NAV return of 10-12% per annum over the medium to long-term.

The Company has the benefit of an experienced Executive Team led by Edward Buttery and who previously worked closely together at Taylor Maritime. Taylor Maritime was established in 2014 as a privately owned ship-owning and management business with a seasoned team including 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). The commercial and technical management arms of Taylor Maritime were acquired by Grindrod in October 2023.

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

About Geared Vessels

Geared vessels are characterised by their own loading equipment. The Handysize and Supra/Ultramax market segments are 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 and stability of earnings through the cycle.

IMPORTANT NOTICE

The information in this announcement may include forward-looking statements, which are based on the current expectations and projections about future events and in certain cases can be identified by the use of terms such as "may", "will", "should", "expect", "anticipate", "project", "estimate", "intend", "continue", "target", "believe" (or the negatives thereon) or other variations thereon or comparable terminology. These forward-looking statements are subject to risks, uncertainties and assumptions about the Company, including, among other things, the development of its business, trends in its operating industry, and future capital expenditures and acquisitions. In light of these risks, uncertainties and assumptions, the events in the forward-looking statements may not occur.

References to target dividend yields and returns are targets only and not profit forecasts and there can be no assurance that these will be achieved.