Thank you for standing by and welcome to the Capital Product Partners' Fourth Quarter 2021 Financial Results Conference Call. We have with us Mr. Jerry Kalogiratos, Chief Executive Officer of the Company. I must advise you this conference is being recorded today. The statements in today's conference call that are not historical facts, including our expectations regarding cash generation, equity returns and future debt levels, our ability to pursue growth opportunities, our expectations or objectives regarding future distribution amounts, capital reserve amounts, distribution coverage, future earnings, capital allocation as well as our expectations regarding market fundamentals and the employment of our vessels, including re-delivery dates and charter rates, may be forward-looking statements, as such as defined in Section 21E of the Securities Exchange Act of 1943 as amended. Those forward-looking statements involve risks and uncertainties that could cause the stated or forecasted results to be materially different from those anticipated. Unless required by law, we expressly disclaim any obligation to update or revise any of those forward-looking statements, whether because of future events, new information, a change in our usual expectations to conform to actual results or otherwise. We assume no responsibility for the accuracy and completeness of the forward-looking statements. We make no predictions or statements about the performance of our common units. I would now like to hand over to your speaker today, Mr. Kalogiratos. Please go ahead, sir.

Thank you, Ella, and thank you all for joining us today. As a reminder, we will be referring to the supporting slides available on our website as we go through today's presentation. We are pleased to have announced last week, the increase of the Partnership's common unit quarterly distribution by 50%. The distribution will be paid on February 10th to common unitholders of record on February 3rd. Our Board has also set a new quarterly distribution guidance of $0.15 per common unit compared to $0.10 previously. Net income for the fourth quarter of 2021 was $40 million, or $18.6 million excluding a $21.4 million gain from vessel sales compared with net income of $7.3 million for the fourth quarter of 2020. Similarly operating surplus for the quarter amounted to $37.9 million compared to $20.7 million for the fourth quarter of 2020. During the quarter, we also delivered the motor vessel Adonis to its new owners and acquired the remaining four LNG carriers thus completing our six LNG Carrier acquisition program. I would like to remind you that underpinning the acquisition of the three additional LNG carriers to those announced in August 2021 was the issuance of €150 million or approximately $174 million senior unsecured bond on the Athens Exchange in October 2021 with a fixed coupon of 2.65%, and a five-year tenure. After entering into cross-currency swaps for four years, the effective coupon of the bond in U.S. dollars, is approximately 3.7%. Turning to Slide 3, revenues for the quarter were $63.6 million, an increase of 81%, compared to $35.1 million during the fourth quarter of 2020. The increase in revenue was primarily attributable to the net increase in the average number of vessels in our fleet by 38%, following the acquisition of three Panamax containers in February 2021, and…

And your first question is from Liam Burke of B. Riley. Please go ahead.

Thank you, hi Gerry how are you?

Hi Liam, I'm well, how are you?

Liam Burke, B. Riley. Hi, Gerry how are you doing?

Liam, I'm very well, how are you, can you hear me well.

I can hear you just fine, thank you.

Perfect.

With this predictable cash flow and the fleet you have in place, you should be generating excess cash above your normal debt repayment and your unit payouts. You talked about repurchasing some units opportunistically, do you balance that against possibly accelerating your debt reduction?

I think given the long-term employment we have in place and the associated cash flows, as well as the fact that some more of our existing debt amortizes faster the first few years, especially those that are associated with - the loan facilities are associated with the BP ships. Given the structure of a charter, and I think we are quite well placed in terms of debt repayment. In addition, if you look at our overall LTV, despite the - despite us incurring quite a bit of additional debt in order to acquire the six LNGs, our gross leverage is still on the back of carrier and charter-free values approximately 46%, which is quite reasonable. So in view of the accelerated debt repayment that we have in place in any case, for the next two, three years, as well as overall leverage and a long-term employment and cash flows that we have in place, I don't think we will be funneling additional cash towards debt repayments.

Okay great. And your drop down opportunities you have a mix of LNG carriers and container vessels. There is some caution in the 2023 to 2025 timeframe of new container vessels coming online obviously in the larger class. But if I look at that what you have, potential container carrier drop down opportunities, those have nice long-term contracts associated with it. You bias one way or the other towards the LNG or container vessels in terms of what you'd prioritize on a drop down?

A couple of things, firstly I agree with you especially with very lofty container prices compared to historical averages. One has to make sure that the employment that is in place in any potential acquisition especially when it comes to conservative business model like ours. You write-down those vessels very close to what is historically an acceptable residual. So, having the 10-year charter in place plus options of course for these LNG carriers and of course, this will also depend on the negotiated sell price will give us a lot of comfort with regard to that. So we are not really taking a band on the current container market. Now secondly, with regard to let's say the focus in terms of drop downs. It's obviously, what would qualify really for us are the three 13,000 TEU containerships and the LNG that has been fixed. Whereas, I think we'll have to wait until there is employment in place otherwise, it is simply too speculative. We estimate that in very broad terms, that these vessels will require equity of anywhere between $140 million to $160 million and could generate an EBITDA of approximately $60 million. So the question is, as you say, what can and what will you do out of those? Subject to reaching a potential agreement on the acquisition of the ships - for the financing, we have numerous levers at our disposal. Firstly, as you pointed out earlier on, our free cash flow generation is expected to increase materially going forward. And as we have the full impact of the six LNG carriers and that would be from the first quarter of 2022. And secondly, as I pointed out in my prepared remarks, there is some additional liquidity that we can source by refinancing center of our credit facilities,…

Thank you. Your next question is from the line of Randall Giveans of Jefferies. Please go ahead.

Gerry, how's it going?

I'm good well, how are you?

Oh, doing well, doing well. Two questions first on your fleet. So you have 100% charter coverage for the next two years outside of two vessels. So let's discuss those, first, for the Cape Agamemnon, what's the current employment of that vessel. And when it can or maybe will you look to sell that?

So, the Cape Agamemnon has earned on average, around $22,000 in 2021, its earnings are similar year-to-date. We continue to consider this vessel as a non-core asset. But we're very opportunistic about it. We had discussion to sell the vessel in the summer. Since then values have become softer, and more importantly, liquidity in the market especially for capesize vessels has somehow receded. But we are monitoring this market, and if we find a good opportunity we'll sell. Now, if a great opportunity arises, and you know for six, 12 months out there, we might take it. But it doesn't change the view that this is not - a non-core asset.

Okay. And then let's look at the Akadimos I believe that was on charter through September of this year. Is there any kind of option for the charterer to extend that vessel or that containership charter? And if not, I would assume you're already getting offers, right for new longer term charters on that vessel. So what's the update on that?

So on the Akadimos, the charter is hold on option to extend the charter, which at its latest point, if the option is exercised can take us to April 2023. However, I should say that this is one of the most efficient vessels out there with very high refer capacity. So less than 10 ships of the size are expected to open up between now and it's earlier to delivery. So we should be in a good place. And none of them have the referring day that the Akadimos has. Also this being very fuel efficient, and with the momentum on reducing the carbon footprint of logistical chains. This vessel should be very well sought after. In my prepared remarks, I mentioned that an 8,500 TEU so much less efficient vessel with lower refer intake was fixed for five years around $65,000. And that was for delivery in one, two quarters from now. So I assume that we should be able to fix forward as the market holds something along these levels potentially higher. Of course like last time, if an offer comes to sell the vessel that we cannot refuse, that we will entertain as well. So I think we're very well placed. We have a fantastic asset for this market. It's as you say, an active market and we'll try to maximize returns with through charter, which is what we are aiming for or a sale if this is great value.

Yes, no it's all fair. A good deal. I'll take some of them offline. But one more on capital allocation, just curious how you may be decided or the Board has decided on the distribution increase to $0.15 per quarter instead of maybe a higher number. And then with that, should we expect additional increases in the near term or is this basically an annual step up? And then lastly, how do you view unit purchases relative to increasing distributions at these levels?

So let me start with the last question. When we're taking - returning capital unitholders, I think it's - we're thinking of both. And we see them in a way as an aggregate of the money-- money spent. So in terms of the unit buybacks, we did about 4.5 million last year. We stopped very early in Q4, because we had to make sure we monitor liquidity. Now that the liquidity is building up again, we can start spending again. Overall last year, we spent somewhere between a quarter of our free cash flow to, in returning capital to unitholders, either through buybacks or quarterly distributions. I think going forward, we are going to target a similar range anywhere between a to 25%. And as let's say our distributable cash flow increases with new additions, we will be revisiting the distribution as the additions come in and in view of the wider growth plans and liquidity needs. So I think for the moment, this is it, but if let's say, we deliver on more growth down the line, this is not far off. I mean, we talked about potential acquisitions in Q3, Q4, this year, we will again re-examine the distribution, as well as the unit buybacks in view of the impact of the new additions. So I think that's, that's more or less how we're thinking about it. We have been also very clear with regards to the strategy. If this is - we want and we will continue to return capital to unitholders, but this will be a combination with growing our asset base and distributable cash flow. I think we have done quite well, so far. And we have delivered both significant value in terms of NAV and total returns for our unitholders and we will continue along these lines.

No, yes it's great. We increased the price target recently, and you're almost there. So keep up the great work.

Great, thank you, Randy.

Thank you. If there are no further questions, may I hand the call back to Mr. Kalogiratos for any closing remarks.

Thank you all for joining us today.

That concludes the presentation. Thank you for participating. You may disconnect.