Above Market Acquired Charters

6 Months Ended

Jun. 30, 2012

Above Market Acquired Charters (Abstract)

6.	Above market acquired charters

In June, 2011 the Partnership acquired the shares of Patroklos, the vessel-owing company of M/V Cape Agamemnon from CMTC with an outstanding time charter to COSCO Bulk terminating in June, 2020, which was above the market rates for equivalent bare-boat charters prevailing at the time of acquisition. The present value of the above market acquired time charter was estimated by the Partnership at $48,551, and recorded as an asset in the unaudited condensed consolidated balance sheets as of the acquisition date.

In August 16, 2010 the Partnership acquired the shares of the vessel-owing company of M/T Assos (renamed Insurgentes) with an outstanding bare-boat charter, which was above the market rates for equivalent bare-boat charters prevailing at the time of acquisition. The present value of the above the market acquired bare-boat charter was estimated by the Partnership at $9,000, and was recorded as an asset in the consolidated balance sheet as of the acquisition date.

For the six months period ended June 30, 2012 and 2011, revenues included a reduction of $3,909 and $1,538 as amortization of the above market acquired charters, respectively.

An analysis of above market acquired charters is as follows:


Above market acquired charters	M/V Cape Agamemnon			M/T Assos			Total
Carrying amount as at January 1, 2011		—			8,062			8,062
Acquisition		48,551			—			48,551
Amortization		(3,008	)		(2,481	)		(5,489	)

Carrying amount as at December 31, 2011	$	45,543		$	5,581		$	51,124

Amortization		(2,672	)		(1,237	)		(3,909	)

Carrying amount as at June 30, 2012	$	42,871		$	4,344		$	47,215

As of June 30, 2012 the remaining carrying amount of unamortized above market acquired time and bare-boat charters was $47,215 and will be amortized in future years as follows:


For the twelve months period ended June 30,	M/V Cape Agamemnon		M/T Assos		Total
2013		5,357		2,481		7,838
2014		5,357		1,863		7,220
2015		5,357		—		5,357
2016		5,371		—		5,371
2017		5,357		—		5,357
Thereafter		16,072		—		16,072

Total		42,871		4,344		47,215