REG - Tufton Assets Ltd. Tufton Assets - SHPP - Q1 2026 Update and Dividend

Tufton AssetsAnnouncement

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RNS Number : 4810A  Tufton Assets Limited  15 April 2026

Tufton Assets Limited

 

("SHIP" or the "Company")

 

Q1 2026 Update and Dividend

 

Quarterly dividend of $0.025 per share

NAV total return was 2.2% in Q1

NAV total return was 11.9% in the nine months to 31 March 2026

 

Tanker charter rates were already improving before the Iranian/US war and the
closure of the Strait of Hormuz pushed them higher. At the same time the
overall market value of the Company's product tankers and bulkers continued to
gradually rise. The unrealised capital value component of the NAV movement was
negative because of the increase in rates following the Hormuz closure i 
(#_edn1) resulting in a NAV total return of only 2.2% for the quarter, and
11.9% for the nine months to the end of March (our financial year ends on 30
June). As time passes, we would expect this capital value component to become
balanced or even turn positive in the future when shipping rates become less
volatile.

 

Nicolas Tirogalas, Portfolio Manager, said:

"We continue to use SHIP's capital to improve income generation, adding
fuel-efficient vessels and securing notably better charter rates for our
ships. The portfolio is well suited to current market conditions and we are
turning that strength into attractive shareholder returns."

 

Financial highlights

 31 March 26                  1Q26           Nine months to

                                             31 March 26
 Operating profit             $11.1m         $28.3m

                              $0.041/share   $0.106/share
 NAV                          $373.1m        $373.1m

                              $1.395/share   $1.395/share
 NAV total return             2.2%           11.9%
 Share price discount to NAV  15.4%          15.9%
 Dividend                     $0.025         $0.075

 

Highlights

·   Agreed to acquire two fuel-efficient Handysize bulkers for a total of
$33 million, at c.85% of depreciated replacement cost. These vessels have
potential for capital appreciation and joined the fleet on initial charters
with net yields of at least 12% based on acquisition price. The Company took
delivery of one vessel earlier this week and expects to take delivery of the
second vessel within days.

·   There have been no adverse consequences to the fleet from the conflict
in the Middle East. None of the Company's vessels are trading in or en-route
to the Arabian Gulf, with all crew safe.

·    Handysize ii  (#_edn2) product tankers iii  (#_edn3) , Cocoa and
Daffodil, secured 12-month charter extensions at rates 47% above their
previous levels, increasing yield to c.26%, to $21,000 per day gross.

·     Run rate yield on the portfolio was 14.2% (vs. 12.8% at the end of
Dec 2025), basis conservative forecast

      rates for ships being re-chartered.

·    Charter-free vessel values rose during the quarter. Operating profit
improved quarter on quarter, supported by higher rates and fewer planned
off-hire days.

·    The market for Bulker iv  (#_edn4) ships remained resilient through
the seasonally quieter Chinese New Year period, supported by more grain
exports from the Americas, port congestion in Latin America and supply
constraints.

 

Dividend

The Board is pleased to declare an interim dividend of $0.025 per ordinary
share for the quarter ended 31 March 2026. The dividend will be paid on 20 May
2026 to shareholders on the register on 24 April 2026. The ex-dividend date is
23 April 2026.

 

The Company is forecast to have dividend cover of 1.8x over the next 18
months.

 

Outlook

The escalation of hostilities in the Middle East and the temporary closure of
the Strait of Hormuz have effectively limited the supply of vessels and
increased the distance travelled, (tonne-miles) for the types of vessel SHIP
owns in a market where higher day rates were already being supported by
geopolitical disruption, limited vessel supply, insufficient investment for
fleet renewal requirements, and less efficient trading routes.

 

A prolonged and escalated conflict in Iran may begin to erode economic demand,
due to limited cargo availability and lack of readily scalable alternatives
for product tanker cargoes, while resulting in a more balanced impact on
bulkers due to an expected energy shift from gas to coal. The longer the
conflict continues, the more permanent the eventual trade pattern shifts
become, adding inefficiencies to trade that tend to increase vessel demand.

 

Eight vessels are due for charter renewal this year. We will aim to secure
stronger charter rates and charter lengths where possible to support future
income generation.

 

The Company's quarterly factsheet as at 31 March 2026 will shortly be
available in the Investor Relations section of its website at:
www.tuftonassets.com/quarterly-reports
(http://www.tuftonassets.com/quarterly-reports) .

 

- Ends -

 

For further information, please contact:

 

 Tufton Investment Management Ltd (Investment Manager)  c/o H/Advisors

 Andrew Hampson

 Nicolas Tirogalas

 Nikos Petrakakos

 Singer Capital Markets                                 +44 (0)20 7496 3000

 James Maxwell, Alex Bond (Corporate Finance)

 Alan Geeves, Sam Greatrex (Sales)

 Hudnall Capital LLP                                    +44 (0)20 7520 9085

 Andrew Cade

 H/Advisors

 Olly Scott                                             +44 (0)78 1234 5205

 William Clutterbuck                                    +44 (0)77 8529 2617

 

About the Company

Tufton Assets Limited, (LSE:SHIP) invests in a diversified portfolio of
second-hand commercial sea-going vessels with the objective of delivering
strong cash flow and capital gains to investors. The Company raised a total of
approximately $316.5 million through its 20 December 2017 Initial Public
Offering on the Specialist Fund Segment of the London Stock Exchange and via
subsequent capital raises. Including the 1Q26 dividend due to be paid on 20
May 2026, the Company will have returned $205.1 million to investors since
inception.

 

The Company's investment manager is Tufton Investment Management Ltd, a
leading investment manager focused on the shipping and offshore industries,
with more than $1.5 billion of mandated assets under management across several
private and listed funds.

 

 

 

Dividend currency declaration

The default payment currency for dividends remains in US Dollars. However,
dividends are capable of being paid in GBP Sterling, provided that the
relevant shareholder has registered to receive their dividend in GBP Sterling
under the Company's Dividend Currency Election. A copy of the Dividend
Currency Election form, which should be sent to Computershare Investor
Services plc, The Pavilions, Bridgwater Road, Bristol, BS99 6BD no later than
6 May 2026, is available on the Company's website at
http://www.tuftonassets.com/company-documents/
(http://www.tuftonassets.com/company-documents/) .

 

The Dividend Currency Election Form should only be completed by shareholders
who hold shares in certificated form. CREST shareholders must elect via CREST.
Non-CREST shareholders wishing to receive Company dividends by electronic
funds transfer directly to their bank accounts can register for
Computershare's Global Payment Service at www.investorcentre.co.uk
(http://www.investorcentre.co.uk) .

 

 i  (#_ednref1) The market rates, especially for tankers, increased
significantly following the Middle East conflict.  This has the effect of
reducing the capital value of ships on charter because their earnings are
lower than the current market, with the reduction more pronounced on vessels
with longer charter periods remaining.

 ii  (#_ednref2) Handysize tanker ships are 30,000-40,000 dead weight tonnage
(DWT carrying capacity) which can access smaller ports with limited
infrastructure and water depth.

 iii  (#_ednref3) Product tankers, including handysize tankers and Medium
Range (MR) tankers (40-55,000 DWT), carry refined petroleum products such as
petrol, diesel, aviation fuel and other chemicals, as well as crude oil.

 iv  (#_ednref4) Ships carrying loose dry cargo, such as grains, iron ore,
steel, coal, cement, aggregates, and other minerals and ores.

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