Prepared remarks
Thank you for standing by, ladies and gentlemen, and welcome to the Costamare Inc. Conference Call on the Second Quarter 2025 Financial Results. We have with us Mr. Gregory Zikos, Chief Financial Officer of the company. I must advise you that this conference is being recorded today, Thursday, July 31, 2025. We would like to remind you that this conference call contains forward-looking statements. Please take a moment to read Slide #2 of the presentation, which contains the forward-looking statements. And I will now pass the floor to your speaker today, Mr. Zikos. Please go ahead, sir.
Thank you, and good morning, ladies and gentlemen. During the second quarter of the year, the company generated net income of about $99 million. In May, we successfully completed the spin-off of Costamare Bulkers, which encompasses the owned dry bulk fleet as well as the CBI operating platform. Costamare Inc. remains the sole shareholder of the 68 containerships as well as the controlling shareholder of Neptune Maritime Leasing. In July, we ordered four newbuilding containerships from a Chinese shipyard, each one of approximately 3,100 TEU capacity. The vessels are expected to be delivered between the second and fourth quarters of 2027. Upon delivery, they will commence an eight-year time charter with a first-class liner company. At the same time, we chartered two 6,500 TEU containerships for a three-year period on a forward basis, commencing from Q1 and Q2 2026. The above transactions resulted in an increase in contracted revenues of about $310 million.
Our fleet deployment stands at 100% and 75% for 2025 and 2026, respectively. Total contracted revenues amount to $2.5 billion with a remaining time charter duration of about 3.2 years. Regarding the market, with less than 1% of the fleet being commercially idle, the containership fleet can be considered as fully employed. Current low fixing activity is mainly the result of low availability of prompt tonnage rather than lack of demand. Charter rates remain healthy across the board and the short supply keeps rates at robust levels. Finally, with regards to Neptune Maritime Leasing, the growing leasing platform, 47 shipping assets have been funded or committed and total commitments and investments are exceeding $650 million. Moving now to the slide presentation. On Slide 3, you can see our quarter results. Net income for the quarter was $99 million or $0.83 per share. Adjusted net income was around $92 million or $0.77 per share.
Our liquidity stands above $0.5 billion. Slide 4, we have concluded newbuilding contracts for four 3,100 TEU containerships with expected deliveries between Q2 and Q4 2027. Upon delivery, each vessel will commence an eight-year charter with a leading liner company. On the employment side, we have forward fixing of two containerships, which along with the previously mentioned eight-year charters, have incremental contracted revenues of more than $310 million. In addition, as already mentioned, our revenue days are fixed 100% for 2025 and 75% for 2026, while our contracted revenues are $2.5 billion with a remaining time charter duration on a TEU-weighted basis of 3.2 years. Slide 5, regarding our financing arrangements, we have agreed to refinance six containerships with no increase in leverage. We have no major maturities up until 2027. Slide 6, on our leasing platform, we have invested around $180 million.
Neptune Maritime Leasing has funded or committed to fund 47 shipping assets for a total amount of more than $650 million. Finally, we continue to have a long uninterrupted dividend track record. Moving to the last slide, Slide 7. Charter rates in the containership market remain at firm levels. The continued tight supply of tonnage, along with the increased ton miles due to the closure of the Suez Canal, is supporting the current charter rates. The idle fleet remains at low levels at 0.5%, indicating a fully employed market. With that, we can conclude our presentation, and we can now take questions. Thank you. Operator, we can take any questions now.
Questions and answers
Your first question comes from Omar Nokta of Jefferies.
You spun off the dry bulkers now. You're placing these orders for the four containerships. It's your first order in some time. Is this shift in focus a renewed effort now that you're effectively a pure-play container company? Is it now time to invest more in the sector, or was this an isolated opportunity to acquire those four newbuilds?
No, I don't think it is a shift in focus. We didn't place any newbuilding orders for containerships during COVID or after COVID simply because we found asset prices to be extremely high compared to the charter rates that were available combined with the charter period. This deal for the four 3,100 TEU vessels—in terms of price, in terms of counterparty, in terms of charter period on a back-to-back basis—made sense. So it's not that we shifted focus. We have been focusing on containers. It's just that asset values at those levels we've seen up to now didn't make much sense. Now, if there is a correction in the market or if we find similar transactions that we feel make sense, we will definitely proceed. So the main reason had nothing to do with the dry bulk spin-off; it had to do mainly with elevated asset prices in the market.
Okay, that makes sense. And then maybe just a follow-up and a bit more big picture: now that you're back to a container-focused platform and you have Neptune, is there any change in strategy or approach with the customer platform going forward as a result of this focus?
No, definitely not. I think it is the same strategy we have been following since November 2010 when we went public, and it is the same strategy we had as a private entity. As long as we feel that there are opportunities, we will proceed as we did now. In times of elevated prices, we have been patient and can sit and wait. We do have a fleet of 68 containerships today, all chartered with very good charter coverage for 2025, 2026 and for the years to come with solid counterparties and with low leverage. So we don't have to do any new transactions unless the deals themselves justify entering into them. Otherwise, we will wait. This was a deal that we felt made sense. Also, it made sense to charter on a forward basis from 2026 onwards two 6,500 TEU vessels. So selectively, we will pursue new opportunities as we have always done in the past.
Our next question comes from Climent Molins of Value Investor's Edge.
You've continued to deploy capital into Neptune Maritime Leasing, and you're now at around 90% of the capital you initially committed. Could you talk a bit about how the venture is developing and whether there is potential to increase your investment above the amount you initially committed?
Yes. Neptune has been progressing well. In total, we have committed to fund 47 vessels of various sizes and types of assets. You are right; we have employed close to 90% of our initially committed capital. So far, this investment is going as initially planned a couple of years ago. Whether we're going to be employing more and at what terms, I am not prepared to tell you now. But in general, I think this investment has been progressing as expected, and I have to remind you that all this growth has been achieved in a relatively short time period.
Makes sense. And following up on Omar's question on strategy, given the increased visibility you now have on the business after spinning off the bulk side, should we expect any changes on shareholder returns, be it on the dividend or with more share repurchases?
I think dividend policy is first of all a Board decision. The dividend policy remains the same, irrespective of whether we had the dry bulk vessels or those vessels were spun off. We were paying and we still pay $0.115 per share per quarter, which we feel is a healthy dividend. Of course, I cannot exclude any changes in the dividend policy such as share buybacks or dividend increases, but that is subject to the Board's decision. We do pay dividends, but at the same time, we feel that accretive deployment of our capital should be invested into new business rather than paying one-off dividends.
This concludes the question-and-answer session. Mr. Zikos, please have your closing remarks.
Thank you for dialing in today and for your interest in Costamare Inc. We look forward to speaking with you again during our next quarterly results call. Thank you. Operator, we can conclude now. Thank you.
Thank you. This does conclude our conference for today. Thank you all for participating. You may now disconnect.