Costamare Inc.

Good day and welcome to the Costa Mare third quarter 2025 financial results conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on a touch-tone phone. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Gregory Zikos, CFO. Please go ahead.

Thank you, and 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 Costamare Barclays Holdings Limited, Costamare Inc. remains the sole shareholder of 69 container ships, as well as the controlling shareholder of Neptune Maritime Leasing. In September, following up from our previously announced order of four 3,100-EU capacity container ships, we exercised our option for two more sister ships to be delivered in Q1 2028. Upon delivery, they will also commence an eight-year time charter with a first-class liner company. Since last quarter, we have also fixed eight vessels with a forward start for periods ranging from 12 to 38 months. These transactions resulted in increased contracted revenues of about $310 billion. Our fleet employment stands at 100% and 80% for 2025 and 2026, respectively. Total contracted revenues amount to $2.6 billion, with the remaining time traded duration of about 3.2 years. Regarding the market, the positive outcome from the latest trade discussion between the U.S. and China and the delay in the implementation of port fees should positively contribute to global increased trade flows. Without a fleet of less than 1%, the charter market remains strong, with rates fixed at healthy and stable levels, on the back of a shortage and steady demand. Finally, with regards to Nexo Maritime 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 slide presentation. On slide 3, you can see our third quarter results. Adopted net income was $98 million or $0.81 per share. Net income for the quarter was around $93 million or $0.77 per share. Our liquidity stands at above $560 million. Slide 4. We have concluded new building contracts for another two 3,100 EU container ships with expected delivery in Q1-28, bringing the total number of new building orders to six. Upon delivery, each vessel will commence an eight-year charter with a leading liner company. On the employment side, we have increased our contracted revenues through new chartering agreements by more than $310 million. In addition, our revenue days are 100% fixed for 2025 and 80% for 2026, while our contracted revenues are $2.6 billion, with an evaluated remaining duration of 3.2 years. Moving to slide 5, 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 SAP side, we have concluded the acquisition of one 6500 TU container version. Slide 6. On our leasing platform, we have invested around 180 million. NML has funded or committed to fund 50 shipping assets for a total amount of more than 650 million dollars. Finally, we continue to have a long uninterrupted dividend track record. Moving to slide seven, the last slide, charter rates in the contingency market remain at firm levels. The idle fleet remains at low levels, at about 0.9%, indicating a fully employed market. 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. To ask a question, you may press star then one on your touchtone phone. If you are using a speakerphone, 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 two. At this time, we will pause momentarily to assemble our roster. The first question comes from Omar Nocata. with Jefferies. Please go ahead.