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Above / Below Market Acquired Charters

12 Months Ended

Dec. 31, 2024

Above Below Market Acquired Charters

7. Above / Below Market Acquired Charters

During the year ended December 31, 2024, the Company acquired the LNG/C Axios II, the LNG/C Apostolos and the LNG/C Aktoras with time and bareboat charter daily rates being above the market rates for equivalent time and bareboat charters prevailing at the time of acquisitions (Note 6). During the year ended December 31, 2024, the Company also acquired the LNG/C Assos with time charter attached to the vessel, with time charter daily rate being below market rate for equivalent time charter prevailing at the time of acquisition (Note 6).

During the year ended December 31, 2023, the Company acquired the LNG/C Amore Mio I with time charter daily rate being above the market rate for equivalent time charter prevailing at the time of acquisition (Note 6). During the year ended December 31, 2023, the Company also acquired the M/V Buenaventura Express, the LNG/C Asterix I and the M/V Itajai Express with time charters attached to the vessels, with time charter daily rates being below market rates for equivalent time charters prevailing at the time of acquisitions (Note 6).

The fair value of the time and the bareboat charters attached to the vessels representing the difference between the time and the bareboat charter rates at which the vessels were fixed and the market rates for comparable charters as determined by reference to market data on the acquisition dates were recorded as “Above market acquired charters” under other non-current assets or “Below market acquired charters” under long-term liabilities in the audited consolidated balance sheet as of the acquisition dates, respectively. The fair values of the time and the bareboat charters attached were determined using Level 2 inputs being market values on the acquisition dates (Note 10).

Above and below market acquired time and bareboat charters are amortized or accreted using the straight-line method over the remaining period of the time and bareboat charters acquired as a reduction or addition to time and bareboat charter revenues. For the years ended December 31, 2024 and 2023 such amortization to time and bareboat charter revenues for the above market acquired time and bareboat charters amounted to $30,649 and $7,786, respectively. For the years ended December 31, 2024 and 2023 such accretion to time charter revenues for the below market acquired time charters amounted to $14,785 and $12,432, respectively.

The following table presents an analysis of above / below market acquired charters:

		Above market acquired charters		Below market acquired charters
Carrying amount as at January 1, 2023	$	14,528	$	(2,951)
Additions		67,227		(94,889)
(Amortization) / accretion		(7,786)		12,432
Carrying amount as at December 31, 2023	$	73,969	$	(85,408)
Additions		58,254		(5,036)
(Amortization) / accretion		(30,649)		14,785
Carrying amount as at December 31, 2024	$	101,574	$	(75,659)

As of December 31, 2024, the remaining carrying amount of unamortized above / below market acquired time charters will be amortized / accreted in future years as follows:

For the year ending December 31,		Above market acquired charters		Below market acquired charters
2025	$	35,119	$	(13,576)
2026		25,706		(13,512)
2027		7,392		(13,512)
2028		7,413		(13,549)
2029		7,392		(13,091)
Thereafter		18,552		(8,419)
Total	$	101,574	$	(75,659)