Q3 2025 Costamare Inc Earnings Call

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I would now like to turn the conference over to Gregory Z Kos CFO. Please go ahead.

Thank you Ed good morning, ladies and gentlemen.

During the third quarter of the year the company generated net income of about $99 million.

After the spinoff of course, a matter of Barclays forward and could give me just because I am not angry remains a shoulder quarter of 69 container ships as well as the controlling shareholder of natural maritime leasing.

In September following on from a previously announced order for 3100 Teu capacity container ships, we exercised our option for tumor sister ships to be delivered in Q1 2028.

Good day and welcome to the cost tomorrow. Third quarter 2025 Financial results conference call.

Upon delivery. They will also Paul mentioned eight year time charter with a first class liner company since last quarter. We have also fixed eight vessels with a full restart for periods ranging from 12 to 38 months. These transactions resulted in increased contracted revenues of about three.

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Brilliant.

Our fleet deployment stands at 100% and 80% for 2025 and 26, respectively.

After today's presentation, there will be an opportunity to ask questions to ask a question. You may press star then 1 on a touchtone phone to withdraw your question. Please press star then 2

Total contracted revenues amount to $2 $6 billion with a remaining time charter duration of about three two years.

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I would now like to turn the conference over to Gregory zikos CFO. Please go ahead.

Regarding the market the positive outcome from the latest trade discussions between the U S and China and the delay in the implementation of course fees should positively contribute to global increased trade flows.

Thank you and good morning ladies and gentlemen, during the third quarter of the year, The company generated net income of about 99 million.

Without the fleet of less than 1% the charter market remains strong with rate fix up shelf stable levels or the bulk of vessel shortage and steady demand.

After the spring off of cost is holding limited Remains the soldier quarter of 69 containerships, as well as the controlling shareholder of Neptune Maritime blazing.

Finally, with regards to next one maritime leasing the grow in music platform 50 shipping assets have been funded or alcohol meet it in total investments and commitments are exceeding $650 million.

In September following up from our previously announced order of 4 3100 in Your Capacity, container ships. We exercised our option for tumor sister ships to be delivered in q1 2028.

Moving now to the slides presentation.

Upon delivery. They will also commissioned 8 year time, Charter with the first class line company.

On slide three you can see our third quarter results.

Net income was $98 million or 81 cents per share net income for the quarter was around $93 million or 77% our liquidity stands at about $560 million.

Since last quarter, we have also fixed 8 vessels with a full restart for periods. Raising from 12 to 38 months,

This transactions resulted in increased contracted revenues of about 330 billion dollars.

Slide four we have concluded noble contracts for another two 2001 hundred Teu container ships with expected delivery in Q1 2008, bringing the total number of new building orders to <unk>.

Our free deployment stands at 100% And 80% for 2025 and 26 respectively.

Total contracted revenues amount to 2.6 billion dollars with the remaining times, are the duration of about 3.2 years?

Upon delivery the vessel will commence an eight year charter with a leading learning company.

On the employment side, we have increased our contracted revenues through new charter agreements by more than $310 million in additional revenue days are 100% fixed for $25 80 per cent for 26, while our contract with ramping set to 46 billion. We said EU weighted remaining duration of three two years.

Regarding the market, the positive outcome from the latest trade discussion between us and China. And the delay in the implementation of port fees, should positively contribute to global increase, trade flows,

Without the fleet of less than 1%. The target market remains strong with rates fixed at Health in stable levels on the back of a shortage and steady demand.

Moving to slide five regarding our financing arrangements, we have agreed to the pre and post delivery financing of our four new buildings, we have no major maturities till 2027 on the S&P side. We have concluded the acquisition of logistics and the 5000 Teu container vessels.

Finally, with regards to next to my time, leasing the growing leasing platform. 50 shipping assets have been funded or are committed and total Investments and commitments are exceeding 650 million.

Moving now, to the slides presentation.

Slide <unk> on our leasing platform, we have invested around $180 million and Emerald has funded or committed to fund 50 shipping assets for a total amount of more than $650 million. Finally, we're continuing to have a long uninterrupted dividend track record.

Moving to slide seven the last night.

Charter rates for the containership market to do maintenance drug levels.

Slide 4, we have concluded new contacts for another tooth. 3,100 EU container ships with expected, delivery in q1, 28 bringing the total number of new building orders to 6.

Our fleet remains at low levels at about 0.9%, indicating a fully employed market.

Upon delivery, each vessel will commence an 8-year chart with a leading line company?

Without going through the presentation and we can now take questions. Thank you.

On the employment side, we have increased, our contracted revenues through new charting agreements by more than 310 million.

We can take questions now.

We will now begin the question and answer session.

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In addition, our Revenue dates are 100% fixed for 25 and 80% for 26, while our contracted tra 2.6 billion with 80 weighted remaining duration of 3.2 years.

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Stellar then Kim at this time, we will pause momentarily to assemble our roster.

Moving to slide 5 regarding our financing Arrangements. We have agreed to the pre and post delivery financing of our 4 new breedings. We have no major maturity till 2027 on the sap side. We have concluded. The acquisition of 1, 6 and a half thousand EU container vessel.

The first question comes from Omar know Carter with Jefferies. Please go ahead.

Thank you Hi, Greg Good afternoon couple of questions.

Slide 6 on our listing platform. We have invested around 180 million nml has found it or committed to find 50 shipping assets for the total amount of more than 650 million dollars.

Hi, there just a couple from me.

Finally, we continue to have a long, uninterrupted division track record.

Obviously, just looking at your chartering activity, you've been able to add a good amount of visibility forward fixing several ships.

It looks like maybe an average of at least two years or so from what's on the.

Moving to slide 7. The last slide, try to raise the contingency Market remain at Supreme levels. The idle Fleet remains at low levels at about 0.9%, indicating a fully employed Market.

From where they were before but just wanted to get your sense in terms of how has chartering activity in general sort of developed here over the past maybe couple of months because you've had obviously a very volatile year for say the underlying freight market, where there's been huge swings upwards and downwards for freight rates.

With that. We can conclude our presentation and we can now take questions. Thank you, operator. We can take questions now.

We will now begin the question and answer session.

They bottomed about a month ago now they've jumped just wanted to get a sense from you.

Given just how active you are in the chartering market have you noticed any shifts and liner appetite that things changed here.

Over the past several weeks of any kind of color you can give on developments on the unchartered that'd be great. Thank you sure sure first of all.

To ask a question, you may press star then 1 on your touchtone phone, if you are using a speaker-phone please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question please press star. Then to at this time we will pause momentarily to assemble our roster.

Regarding the Bulks Youre right.

Last weekend.

Martin General books rates, having up especially in the U S.

The first question comes from Omar, nukata with Jeffrey's. Please go ahead.

The West Coast.

Great.

Now regarding the.

Charter market.

There is a shortage of ships, especially larger vessels. So I mean whichever ships come out.

There are definitely candidates.

<unk>.

<unk> said the market remains at very healthy levels there is demand.

Thank you. Hi, Greg good afternoon, couple question. Uh, either. Yeah. Just a couple for from me. Um, you know, obviously just looking at your your um chartering activity. You've been able to add a good amount of visibility forward. Fixing several shifts. Um, looks like maybe an average of at least 2 years or so from, what's on the from from where they were before? But just wanted to get your sense in terms of how has

And the ships are easily absorbed.

I think the main indicator or someone needs to look at either the vessels were.

If you back out any.

Sure.

And in dry dockings are sort of technical issues.

This is less than 1% so less than 1% idle fleet means that practically we have a fully employed market.

So in charter age and gender or they're holding up very well now whether this will continue or not.

And for how long, it's hard to say because we have.

A series of geopolitical events that might affect it.

But for the time being it is a healthy market liners are generally.

Chartering activity in general sort of developed here, over the past, maybe couple of months because you've had obviously very volatile year for say, the underlying Freight Market where there's been, you know, huge swings upwards and downwards for for Freight rates. Um, they bought them about a month ago. Now they've jumped just want to get a sense from you, you know, given just how active you are in the chartering markets. Have you noticed a new shift in in line or appetite have things changed here? Um, uh, over the past several weeks, any kind of color you can give on on developments on the on on Charter would be great. Thank you. Sure. Sure, first of all uh regarding the Box rates, you are right. Let me last weekend. Last month in general box, rates coming up especially on the US the the West Coast the

Eager to charter in vessels now you can argue that probably they may not want to go for longer periods in general.

Compared to the past, but still.

Do you still see like two or three year time charter for secondhand vessels on a forward basis. So in that respect I think that the fundamentals as they stand today, considering that the supply of vessels.

Trade round. Uh, now regarding the, uh, Charter Market. Uh, there is a shortage of ships especially larger vessels. So, I mean, uh, whichever ships come out, uh,

There are definitely candidates uh, to have them uh, charted in.

I think the fundamentals are quite tight and quite positive algae.

Okay. Thanks, Greg and then maybe just a follow up wanted to ask about the secondhand acquisition. You mentioned you bought the <unk> built.

so still, the market remains at very healthy levels uh, there is demand, uh, and the ships are easily absorbed and, uh, and I think the main indicator of someone needs to look at is the idle vessels where if you, uh, back out any, uh,

6000, Teu vessel that looks like it's on contract to mirror because that could you maybe just talk about kind of the.

Uh, any dry dockings or sort of technical issues? Uh, this is less than 1%. So less than 1%, highly Fleet means that practically. We have a fully employed Market.

How that came about was this a direct acquisition from Maersk with its hardware back to them or are there more opportunities like that you think.

John purchase.

Yes, I think.

This vessel has been chartered to.

Yes.

This is actually sale and leaseback deal there may be more opportunities like that in.

In the future.

Come across anything that.

So I don't like that that probably would make sense.

Yes.

But they're definitely there may be and as you've seen that we have been focusing on.

Oh, the new buildings for.

10100.

<unk> got data concluded for previously announced in the Q2 results we have.

<unk> added two more options now those are going to be delivered in Q1 28.

In that respect, I think that the fundamentals as they stand today. Considering that the supply of vessels uh is quite thin. The fundamentals are quite tight and quite positive I would say.

On the back to back basis, we have pretty much arrange that charter for the first for the financing for the first of all and we are.

Closing the commitment of the financing for the last two.

So we're just hoping that also makes sense.

And we are generally active show either secondhand or even our new buildings.

Assuming that we feel comfortable with the residual value risk.

Thanks. Thanks Craig. And then maybe just a follow-up wanted to ask about the the second hand. Acquisition, you mentioned that you bought the 06 built. Um, you know, 6,000 to vessel. Uh, that looks like it's on contract to measure. Is that could you maybe talk about kind of the, you know, how that came about was this a direct acquisition from Mars with a charter back to them? Um, are there more opportunities like that? Do you think, um, and the, uh, sale and purchase?

Of our equity I think we are.

We will do quite active.

Great.

Very helpful I'll pass it back.

Sure.

Okay.

The next question is from Cleveland.

Marlins with value investors. Please go ahead.

Hi, good afternoon, and thank you for taking my questions.

Following up on Mark's question on the first one could you talk maybe about whether you believe the recent increase in freight rates Easter staying level.

It seems it was mostly a function of front running of sanctions between the U S and China increased.

Yes, I think uh, uh, uh, this restaurant has been charted back to me. Uh, this is a strike for sale and Le back deal. There may be more opportunities like that, uh, in the future. I mean, we have a come across anything that, uh, something like that, that probably would make sense and, uh, as uh, but but definitely there may be. And as you've seen, we have been focusing on, uh, all the new buildings uh, for the 30,000 quantity. Uh we had the concluded for previously announced in the the YouTube results. Uh we have added 2 more options. Now those are going to be delivered to the q128.

But those have been the lower lower it seems so how do you think about the trade off.

Having more visibility from funding.

uh, on the back-to-back basis, we have pretty much arranged the charter for the first 4 uh sorry the financing for the first 4 and we are uh

Yes for the fourth.

Freight rates I mean, the box rates. This is something that that would also be directly addressed to the liner pro who sort of may have a better visibility.

I agree with you that.

Last weekend last month.

Freight rates push.

Has been because of front running.

They have to do with the.

Closing the commitment of the financing for the last 2, uh, so which is something that also makes sense. Uh, and we are generally active, so add the second hand, or even a new buildings, uh, assuming that we feel comfortable with the residual value risk, uh, of our Equity. I think we are, we would be quite active.

No pushback of the airport fees et cetera.

Great.

Thanks Rick very helpful. I'll pass it back.

Rearrangement of schedules of the liner companies now to what extent are there sort of.

Thank you.

Medium or long term sustainable I cannot comment on that.

The next question is from Clement, uh, Mullins with value investors. Please go ahead.

They are sort of it because if you look historically at the three or six months or like one here box rates.

Hi, good afternoon and thank you for taking my questions.

There have been a negative trend but.

I cannot forecast.

Following up on, Omar's question on the first 1, could you talk a bit about whether you believe the recent increase in Freight rates is sustainable.

Box rates are going to be starting from today over the next three to six months to some extent. This is something that is also a liner companies.

I think they do have greater visibility on that.

It seems, it was mostly a function of front running as tensions between the US and China increased but those have been lower lower lower it seems. So how do you think about the trade-off?

Of having more visibility versus the front running.

Yes, it makes sense no one can really forecast that.

And also following up on numerous second question. It seems the Myers is.

Is fully committed until next October, but Myers has options to extend unemployment until 2031.

Could you talk about how likely those are to be.

Given the rate.

Okay Im afraid.

Charterers option so.

Uh huh.

As mentioned at a depth of the charter.

To have exercised.

So again I cannot forecast.

Part of it will be doing.

So.

Yeah, for the, for the freight rates, I mean, the Box rates. This is something that could also be directly addressed to the liners Pro. Who sort of may have a better visibility. I, I agree with you that the last week and last month, uh, uh, Freight rates push has been because of front running may have to do with the, uh, um, you know, push back of the uh, port fees, Etc. Uh, rearrangement of schedules of the line companies. Now, to what extent they are sort of, uh, medium or long term sustainable, uh, I cannot comment on that.

uh,

<unk>.

Leverage will dictate whether the charter will take those options or not but on a committed basis.

And one year charter.

And promoter side, we have around that number so to show that.

They are they are sort of a because if you look historically at the 3 or 6 months or like a 1 year box rates, uh they have been on a negative Trend but uh but I'm afraid I cannot forecast.

Conservative.

Have been factoring in.

This one year time charter periods after that the tough with the charterer to decide based on needs it needs based on.

Uh, where box rates are going to be, uh, starting from today. Over the next 3 to 6 months, to some extent. This is something that also line the companies. Uh, I think they do have a greater visibility on that.

Based on the market rate based on the cargo demand.

To see whether those options.

One by one are going to be subsequently exercised.

That's helpful. Thank you for taking my questions. Thank you.

Yeah, makes sense. No 1 can really forecast that and also following up on Omar's second question. It seems the Meijer Poe is fully committed until next October but Myers has options to extend employment until 2031. Could you talk about how likely those are to be exercised given the rate?

Okay.

okay, I'm

This concludes our Q&A our question and answer session I would like to turn the conference back over to Gregory <unk> for any closing remarks.

these are a charter as option, so

Yes, thank you for dialing in today and for your refinancing cause somebody to Inc.

Looking forward to speaking with you again.

During Q4.

And year end results call. Thank you operator, I think we have concluded.

The conference has now concluded. Thank you for attending today's presentation you may now disconnect.

Based on the market rates, based on the uh cargo demand, uh, to see whether those options. Uh, 1 by 1, uh are going to be subsequently exercised.

That's helpful. Thank you for taking my questions. Thank you.

Concludes our Q&A, our question and answer session. I would like to turn the conference back over to Gregory Zoes for any closing remarks.

Today. And for

Speaking with you again uh during the 24 and here and results call. Thank you, operator. I think we have concluded.

Conference has now concluded, thank you for attending today's presentation. You may now disconnect