Costamare, Inc. Q2 FY2024 earnings call

• Containership: Chartered 7 containerships forward, with fleet employment and contracted revenues as mentioned.
• Dry Bulk: Selling older vessels and acquiring larger Capesize ships, CBI managing 54 ships.
• Redemption: Full redemption of Series E Preferred Stock resulted in annual cash flow savings of ~$10.1 million.
• Neptune Maritime: Funded 25 shipping assets with $285 million invested.

Containership: During Q2, chartered 7 containerships for 2-3 years, generating incremental contracted revenues above $220 million. Fleet employment is 100% in 2024 and 88% in 2025, with total contracted revenues at $2.4 billion and remaining time charter duration of 3.5 years. Dry Bulk: Proceeding with strategy to renew owned fleet, sold 2011-built Handysize and 2009-built Supramax, acquired two 2012-built Capesize ships. CBI, dry bulk trading platform, commercially manages 54 ships mostly on index-linked charters. Neptune Maritime Leasing: Funded 25 shipping assets totaling approximately $285 million.

• Containership: Continuous injection of new building capacity poses a threat to charter rates.
• Dry Bulk: Order book at 9.4% of total fleet, pricing and market conditions impact dry bulk purchase activity.

Q: Context on rate levels for the 7 new containership charters mentioned.

A: These are ships chartered forward, including a 24-year-old 2000-built vessel, chartered at a healthy rate in the mid-30s.

Q: Perspective on why dry bulk purchase activity has slowed and outlook for the rest of the year.

A: Price sensitive, disposing smaller handysize vessels, acquiring larger Capesize ships, taking time based on pricing and market conditions.

Q: Insight on CBI segment strategy regarding increased fixed contracts and hedging.

A: Slight increase in fixed rate charters due to attractive deals, use FFAs as hedging tool for Capes and Panamaxes.

Q: Appetite to redeem additional preferred stock or prepay debt.

A: Series E Preferred Stock redeemed for savings, capital allocation decision pending at Board level considering circumstances