Navios Maritime Partners L.P.(NMM) - 2025 Q1 - Quarterly Report

Operating and Financial Review and Prospects Recent Developments Navios Maritime Partners L.P. reported recent fleet activities, including the delivery of a new Aframax/LR2 tanker in April 2025 and an agreement to sell a containership in May 2025, with the sale expected to complete in the second half of 2025 - Delivery of Nave Dorado, a 2025-built Aframax/LR2 tanker vessel, in April 2025[9] - Agreement to sell a 2009-built 4,250 TEU Containership for a gross sale price of $35.5 million, expected to be completed during the second half of 2025[9] Overview of the Company Navios Partners is an international owner and operator of dry cargo and tanker vessels, public since November 2007. The company has an active common unit repurchase program, having bought back approximately $44.0 million worth of units as of May 27, 2025 - Navios Partners is an international owner and operator of dry cargo and tanker vessels, formed in August 2007 and public since November 2007[10] - As of May 27, 2025, there were 29,194,209 common units and 622,296 general partnership units outstanding[11] Common Unit Repurchase Program Status (as of May 27, 2025) | Metric | Value | | :-------------------------------- | :------------------- | | Authorized Repurchase Program | $100.0 million | | Common Units Repurchased to Date | 990,179 units | | Total Cost of Repurchases | ~$44.0 million | Fleet Overview Navios Partners operates a diverse fleet comprising 69 dry bulk vessels, 48 containerships, and 56 tanker vessels, including significant newbuilding orders for tankers and containerships expected through 2028. Revenues are primarily generated through time charters, with some spot market operations - Navios Partners' fleet consists of 69 dry bulk vessels, 48 containerships, and 56 tanker vessels, excluding one containership agreed to be sold[13] - The fleet includes 17 newbuilding tankers (11 Aframax/LR2 and six MR2 product tankers) expected to be delivered through the first half of 2028, and four 7,900 TEU newbuilding containerships expected through the first half of 2027[13] - Revenues are generated by chartering vessels under time charters (up to 12 years) and, occasionally, in the spot market[14] Chartering Activities Navios Partners provides seaborne shipping services through various charter types, aiming for long-term time charters to ensure consistent revenue. The company's revenue is influenced by fleet size, operating days, and charter rates, with a notable concentration of revenue from one customer in Q1 2025. Risks include customer payment failures, charter terminations, and force majeure events - For the three months ended March 31, 2025, one customer accounted for approximately 16.2% of total revenues, compared to no single customer accounting for 10.0% or more in the same period of 2024[21][84] - Revenues are driven by the number of vessels, operating days, and charter hire rates, which are affected by global economics, international events, and supply/demand dynamics[22] - Potential risks include customer failure to make charter payments, exercise of termination rights by customers, or termination due to vessel loss/damage, deficiencies, prolonged off-hire, or force majeure events[23][26] Trends and Factors Affecting Future Results of Operations Future operational results are primarily influenced by economic, regulatory, political, and governmental conditions impacting the shipping industry. Key factors include charter duration and rates, fleet management decisions, vessel operational efficiency, global supply and demand for cargo shipping, broader economic conditions, and geopolitical events - Principal factors affecting future results include economic, regulatory, political, and governmental conditions impacting the shipping industry[24] - Specific factors include charter duration and market rates, vessel acquisition and disposal decisions, time spent positioning vessels, off-hire/drydock periods, vessel age/condition, supply and demand in cargo shipping, and economic conditions such as inflation, interest rates, and recession risks[25] - Armed conflicts (e.g., Israel/Hamas, Russia/Ukraine, Red Sea/Gulf of Aden attacks) and global epidemics/pandemics are also significant influencing factors[25] Results of Operations Navios Partners experienced a decrease in net income and key revenue metrics for the three months ended March 31, 2025, compared to the same period in 2024. This was primarily driven by lower TCE rates and available days, alongside increased vessel operating and general and administrative expenses, partially offset by reduced time charter and voyage expenses Key Performance Indicators Fleet Performance Indicators (Three Months Ended March 31) | Indicator | March 31, 2025 | March 31, 2024 | | :---------------------------------- | :--------------- | :--------------- | | Available Days | 13,456 | 13,540 | | Operating Days | 13,349 | 13,445 | | Opex Days | 13,586 | 12,961 | | Fleet Utilization | 99.2% | 99.3% | | Time Charter Equivalent rate (per day) | $21,271 | $21,514 | | Opex rate (per day) | $6,981 | $6,799 | | Vessels operating at end of periods | 154 | 151 | - TCE rate decreased by 1.1% to $21,271 per day in Q1 2025 from $21,514 per day in Q1 2024[28][32] - Available days slightly decreased by 0.6% to 13,456 days in Q1 2025 from 13,540 days in Q1 2024[28][32] Financial Highlights (Consolidated) Consolidated Revenue and Expense Information (Three Months Ended March 31, in thousands of U.S. dollars) | Item | 2025 | 2024 | | :---------------------------------- | :------- | :------- | | Time charter and voyage revenues | $304,112 | $318,555 | | Time charter and voyage expenses | $(30,017) | $(41,911) | | Vessel operating expenses | $(94,842) | $(88,128) | | General and administrative expenses | $(21,972) | $(20,744) | | Depreciation and amortization | $(78,645) | $(69,917) | | Amortization of unfavorable lease terms | $2,880 | $3,136 | | (Loss)/ gain on sale of vessels | $(5,930) | $1,877 | | Interest expense and finance cost, net | $(33,510) | $(29,409) | | Interest income | $3,394 | $3,396 | | Other expense, net | $(3,743) | $(3,494) | | Net income | $41,727 | $73,361 | | EBITDA | $147,608 | $166,155 | | Adjusted EBITDA | $153,538 | $164,278 | | Operating Surplus | $47,088 | $66,614 | Period over Period Comparisons Time Charter and Voyage Revenues - Time charter and voyage revenues decreased by $14.5 million, or 4.6%, to $304.1 million for Q1 2025, compared to $318.6 million for Q1 2024[32] - The decrease was mainly due to a 1.1% decrease in the TCE rate ($21,271 vs $21,514 per day), a 0.6% decrease in available days, and reduced revenue from freight voyages[32] Time Charter and Voyage Expenses - Time charter and voyage expenses decreased by $11.9 million to $30.0 million for Q1 2025, from $41.9 million for Q1 2024[33] - Key drivers for the decrease included a $12.6 million reduction in bunker expenses, a $2.4 million decrease in bareboat and charter-in hire expense for the dry bulk fleet, and a $1.9 million decrease in port expenses[33] Vessel Operating Expenses - Vessel operating expenses increased by $6.7 million to $94.8 million for Q1 2025, compared to $88.1 million for Q1 2024[34] - The increase was primarily due to a 4.8% rise in opex days and changes in the fleet composition from vessel deliveries and sales[34] General and Administrative Expenses - General and administrative expenses increased by $1.3 million to $22.0 million for Q1 2025, from $20.7 million for Q1 2024[35] - This increase was mainly attributed to a $0.8 million rise in legal, professional, and audit fees, and a $0.5 million increase in administrative expenses under the new Administrative Services Agreement[35] Depreciation and Amortization - Depreciation and amortization increased by $8.7 million to $78.6 million for Q1 2025, compared to $69.9 million for Q1 2024[36] - The increase was mainly due to $8.3 million from the delivery of 20 vessels in 2024 and Q1 2025, and $3.6 million from increased amortization of deferred drydock and special survey costs[36] Amortization of Unfavorable Lease Terms - Amortization of unfavorable lease terms was $2.9 million for Q1 2025, a slight decrease from $3.1 million for Q1 2024[37] (Loss)/ Gain on Sale of Vessels - Navios Partners recorded a loss on sale of vessels of $5.9 million for Q1 2025, related to the sale and committed sale of two vessels[38] - In contrast, a gain on sale of vessels of $1.9 million was recorded for Q1 2024 from the sale of one vessel[38] Interest Expense and Finance Cost, Net - Interest expense and finance cost, net, increased by $4.1 million to $33.5 million for Q1 2025, from $29.4 million for Q1 2024[39] - The increase was mainly due to decreased capitalized interest related to vessel acquisition deposits and an increase in the discount effect of long-term assets and other finance costs[39] - The weighted average interest rate decreased to 6.3% for Q1 2025 from 7.1% for Q1 2024, while the weighted average loan balance increased to $2,200.5 million from $1,888.4 million[39] Interest Income - Interest income remained stable at $3.4 million for both Q1 2025 and Q1 2024[40] Other Expense, Net - Other expense, net, increased by $0.2 million to $3.7 million for Q1 2025, from $3.5 million for Q1 2024, mainly due to increased claims[40] Net Income - Net income for Q1 2025 amounted to $41.7 million, a decrease of $31.7 million from $73.4 million for Q1 2024[41] Off-Balance Sheet Arrangements Navios Partners reported no off-balance sheet arrangements that have, or are reasonably likely to have, a material effect on its financial condition, results of operations, liquidity, or capital resources - Navios Partners has no off-balance sheet arrangements that are material to its financial condition or results of operations[42] Liquidity and Capital Resources Navios Partners maintains a positive working capital position and expects sufficient cash generation from operations and contracted revenues to meet short-term liquidity needs. The company's cash flow from operating activities significantly increased in Q1 2025, while investing activities decreased. Non-GAAP measures like Adjusted EBITDA and Operating Surplus saw declines. Capital expenditures remain substantial, and the company continues its common unit repurchase program Liquidity Needs and Sources - Primary short-term liquidity sources include cash flows from operations, equity offerings, asset sales, and debt raisings, used for working capital, debt service, and distributions[43] - As of March 31, 2025, Navios Partners had a positive working capital of $4.0 million ($443.3 million current assets vs $439.3 million current liabilities)[43] - The company forecasts sufficient cash generation from $3.5 billion in contracted revenue (as of May 23, 2025) and vessel sales to cover financial commitments for at least 12 months[44] Cash Flow Analysis Condensed Consolidated Statements of Cash Flows (Three Months Ended March 31, in thousands of U.S. dollars) | Activity | 2025 | 2024 | | :------------------------------------------ | :------- | :------- | | Net cash provided by operating activities | $156,552 | $94,436 | | Net cash used in investing activities | $(134,147) | $(168,073) | | Net cash (used in)/ provided by financing activities | $(630) | $57,292 | | Increase/ (decrease) in cash, cash equivalents and restricted cash | $21,775 | $(16,345) | - Net cash provided by operating activities increased by $62.2 million to $156.6 million for Q1 2025, compared to $94.4 million for Q1 2024[51] - Net cash used in investing activities decreased by $33.9 million to $134.1 million for Q1 2025, compared to $168.1 million for Q1 2024, mainly due to lower deposits for vessel acquisitions[57][58][59] - Net cash used in financing activities shifted from a $57.3 million inflow in Q1 2024 to a $0.6 million outflow in Q1 2025, primarily due to lower proceeds from new credit facilities and increased treasury unit acquisitions[60][61][62] Reconciliation of Non-GAAP Measures (EBITDA, Adjusted EBITDA, Operating Surplus) EBITDA, Adjusted EBITDA, and Operating Surplus Reconciliation (Three Months Ended March 31, in thousands of U.S. dollars) | Item | 2025 | 2024 | | :-------------------------------------------------------------------------------- | :------- | :------- | | Net cash provided by operating activities | $156,552 | $94,436 | | Net (decrease)/ increase in operating assets | $(7,421) | $366 | | Net (increase)/ decrease in operating liabilities | $(23,046) | $42,983 | | Net interest cost | $30,116 | $26,013 | | Amortization and write-off of deferred finance costs | $(1,672) | $(1,676) | | Amortization of operating lease assets/liabilities | $186 | $791 | | Non-cash amortization of deferred revenue and straight-line | $(1,177) | $1,365 | | (Loss)/ gain on sale of vessels | $(5,930) | $1,877 | | EBITDA | $147,608 | $166,155 | | Loss/ (gain) on sale of vessels | $5,930 | $(1,877) | | Adjusted EBITDA | $153,538 | $164,278 | | Cash interest income | $3,878 | $2,790 | | Cash interest paid | $(33,409) | $(32,113) | | Maintenance and replacement capital expenditures | $(76,919) | $(68,341) | | Operating Surplus | $47,088 | $66,614 | - Adjusted EBITDA decreased by $10.8 million to $153.5 million for Q1 2025, from $164.3 million for Q1 2024, primarily due to decreased revenues and increased operating expenses[66] - Operating Surplus decreased by $19.5 million to $47.1 million for Q1 2025, from $66.6 million for Q1 2024[68] Capital Expenditures - Capital expenditures for Q1 2025 amounted to $132.5 million, a decrease from $139.1 million for Q1 2024[71] Maintenance and Replacement Capital Expenditures Reserve - Reserves for estimated maintenance and replacement capital expenditures were $76.9 million for Q1 2025, up from $68.3 million for Q1 2024[73] - The estimated annual replacement reserve for 2025 is approximately $305.4 million, based on current market prices, useful life assumptions (25 years for dry bulk/tanker, 30 years for containerships), and a net investment rate[73][74] Limitations on Cash Distributions - There is no guarantee of quarterly distributions to unitholders, as the ability to make distributions depends on subsidiary performance and restrictions under existing and future indebtedness[78] Quantitative and Qualitative Disclosures about Market Risks Navios Partners faces market risks primarily related to interest rate fluctuations and credit concentration. While foreign exchange risk is minimal due to U.S. dollar-denominated transactions, rising interest rates could increase expenses. The company also highlights the risk of losing significant charter revenue from a concentrated customer base Foreign Exchange Risk - The functional and reporting currency is the U.S. dollar, and transactions are predominantly U.S. dollar denominated, minimizing foreign currency risk[80] Interest Rate Risk - The company is exposed to interest rate risk as borrowings under credit facilities bear interest based on a premium over Secured Overnight Financing Rate (SOFR)[82] - A 1% increase in SOFR would have increased interest expense by $4.6 million for Q1 2025 and $3.3 million for Q1 2024[82] - The weighted average interest rate for outstanding debt decreased to 6.3% for Q1 2025 from 7.1% for Q1 2024[82] Concentration of Credit Risk - Financial instruments expose the company to credit risk, principally from cash and trade accounts receivable, with monitoring policies in place[83] - For Q1 2025, one customer accounted for approximately 16.2% of total revenues, posing a concentration risk[84] - The loss of a charter or customer, or their failure to perform obligations, could materially adversely affect business, results of operations, and financial condition[85][86] Recent Accounting Pronouncements Information regarding recent accounting pronouncements is included in the accompanying notes to the unaudited condensed consolidated financial statements - Recent accounting pronouncements are detailed in the notes to the unaudited condensed consolidated financial statements[87] Critical Accounting Policies The company's financial statements are prepared under U.S. GAAP, requiring significant management estimates and judgments. Critical accounting policies, which could lead to materially different results under varying assumptions, are detailed in Note 2 of the Annual Report and the accompanying notes - Financial statements are prepared in accordance with U.S. GAAP, requiring management estimates and judgments[88] - Critical accounting policies, reflecting significant judgments or uncertainties, are described in Note 2 of the Company's Annual Report and the accompanying notes[89] Financial Statements and Notes Unaudited Condensed Consolidated Balance Sheets The balance sheet shows total assets of $5,733.1 million as of March 31, 2025, a slight increase from $5,673.2 million at December 31, 2024. Current assets remained stable, while non-current assets increased, primarily due to vessel acquisitions. Total liabilities also increased, driven by current liabilities and long-term finance lease and financial liabilities Key Balance Sheet Figures (in thousands of U.S. dollars) | Item | March 31, 2025 | December 31, 2024 | | :---------------------------------- | :--------------- | :---------------- | | Total current assets | $443,344 | $442,991 | | Total non-current assets | $5,289,711 | $5,230,249 | | Total assets | $5,733,055 | $5,673,240 | | Total current liabilities | $439,313 | $409,666 | | Total non-current liabilities | $2,158,669 | $2,156,946 | | Total liabilities | $2,597,982 | $2,566,612 | | Total partners' capital | $3,135,073 | $3,106,628 | - Current assets remained relatively stable, while vessels, net, increased from $4,241.3 million to $4,500.2 million[93] - Current liabilities increased from $409.7 million to $439.3 million, mainly due to an increase in amounts due to related parties[93] Unaudited Condensed Consolidated Statements of Comprehensive Income Net income for the three months ended March 31, 2025, decreased to $41.7 million from $73.4 million in the prior year, primarily due to lower time charter and voyage revenues and a loss on vessel sales, despite reduced time charter and voyage expenses. Total comprehensive income also decreased significantly Key Comprehensive Income Figures (in thousands of U.S. dollars, except per unit data) | Item | March 31, 2025 | March 31, 2024 | | :------------------------------------------ | :--------------- | :--------------- | | Time charter and voyage revenues | $304,112 | $318,555 | | Net income | $41,727 | $73,361 | | Unrealized loss on cash flow hedges | $(1,771) | $— | | Total comprehensive income | $39,956 | $73,361 | | Earnings per common unit, basic | $1.38 | $2.38 | | Earnings per common unit, diluted | $1.38 | $2.38 | - Net income decreased by $31.6 million, from $73.4 million in Q1 2024 to $41.7 million in Q1 2025[95] - Total comprehensive income for Q1 2025 was $39.9 million, including an unrealized loss on cash flow hedges of $1.8 million, compared to $73.4 million in Q1 2024[95] Unaudited Condensed Consolidated Statements of Cash Flows Net cash provided by operating activities significantly increased to $156.6 million in Q1 2025, up from $94.4 million in Q1 2024, driven by non-cash adjustments and changes in operating assets and liabilities. Net cash used in investing activities decreased, while financing activities shifted from a net inflow to a net outflow, resulting in an overall increase in cash, cash equivalents, and restricted cash Key Cash Flow Figures (in thousands of U.S. dollars) | Activity | March 31, 2025 | March 31, 2024 | | :------------------------------------------ | :--------------- | :--------------- | | Net cash provided by operating activities | $156,552 | $94,436 | | Net cash used in investing activities | $(134,147) | $(168,073) | | Net cash (used in)/ provided by financing activities | $(630) | $57,292 | | Increase/ (decrease) in cash, cash equivalents and restricted cash | $21,775 | $(16,345) | | Cash, cash equivalents and restricted cash, end of period | $321,564 | $232,830 | - Net cash provided by operating activities increased by $62.2 million, mainly due to non-cash adjustments and a net cash inflow from changes in operating assets and liabilities[51][52][54] - Net cash used in investing activities decreased by $33.9 million, primarily due to lower deposits for vessel acquisitions[57][58][59] - Financing activities shifted from a $57.3 million inflow in Q1 2024 to a $0.6 million outflow in Q1 2025, reflecting lower proceeds from new credit facilities and increased treasury unit acquisitions[60][61][62] Unaudited Condensed Consolidated Statements of Changes in Partners' Capital Total partners' capital increased to $3,135.1 million as of March 31, 2025, from $3,106.6 million at December 31, 2024. This increase was driven by net income, partially offset by cash distributions paid, acquisition of treasury units, and an accumulated other comprehensive loss from unrealized losses on cash flow hedges Changes in Partners' Capital (in thousands of U.S. dollars, except unit data) | Item | March 31, 2025 | December 31, 2024 | | :------------------------------------------ | :--------------- | :---------------- | | Balance, beginning of period | $3,106,628 | $2,770,452 (Dec 31, 2023) | | Cash distribution paid | $(1,511) | $(1,540) | | Acquisition of treasury units | $(10,000) | $— | | Other comprehensive loss | $(1,771) | $— | | Net income | $41,727 | $73,361 | | Balance, end of period | $3,135,073 | $2,842,273 (March 31, 2024) | - Total partners' capital increased by $28.4 million from December 31, 2024, to March 31, 2025[100] - The increase was primarily due to net income of $41.7 million, partially offset by $1.5 million in cash distributions, $10.0 million for treasury unit acquisitions, and a $1.8 million unrealized loss on cash flow hedges[100] Notes to the Condensed Consolidated Financial Statements NOTE 1 – DESCRIPTION OF BUSINESS - Navios Maritime Partners L.P. is an international owner and operator of dry cargo and tanker vessels, formed in August 2007[101] - Operations are managed by Navios Shipmanagement Inc. and its affiliates, entities affiliated with the Company's Chairwoman and CEO, Angeliki Frangou[102] - As of March 31, 2025, Angeliki Frangou beneficially owns approximately 17.1% common interest and 2.1% general partnership interest[103] NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - The interim condensed consolidated financial statements are unaudited and prepared in accordance with U.S. GAAP, with comparative figures reclassified to conform to current year presentation changes[104] - Management believes the Company has adequate financial resources to continue operations and meet commitments for at least 12 months, adopting the going concern basis[105] - Revenue from time chartering and bareboat chartering is recognized on a straight-line basis as operating leases, while voyage charter revenue is recognized ratably from port of loading to cargo discharge[110][111] NOTE 3 – CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND OTHER INVESTMENTS Cash and Cash Equivalents and Restricted Cash (in thousands of U.S. dollars) | Item | March 31, 2025 | December 31, 2024 | | :------------------------------------------ | :--------------- | :---------------- | | Cash and cash equivalents | $320,968 | $270,166 | | Restricted cash | $596 | $29,623 | | Total cash and cash equivalents and restricted cash | $321,564 | $299,789 | - Restricted cash is held in retention accounts for debt and interest payments as required by credit facilities[119] - Other investments, consisting of time deposits with maturities between three and twelve months, amounted to $21.4 million as of March 31, 2025, up from $12.3 million at December 31, 2024[121] NOTE 4 – VESSELS, NET Vessels, Net (in thousands of U.S. dollars) | Item | December 31, 2024 | March 31, 2025 | | :------------------------------------------ | :---------------- | :--------------- | | Total Vessels, Net Book Value | $4,241,292 | $4,500,169 | | Additions/ (Depreciation) | $279,152 | $283,087 (Owned Vessels) | | Disposals/ (Impairment) | $(12,856) | $(12,856) | | Transfer to assets held for sale | $(7,419) | $(7,419) | - During Q1 2025, Navios Partners took delivery of three new vessels (two containerships and one tanker) for an aggregate acquisition cost of $326.2 million[126] - A loss on sale of vessels of $5.9 million was recognized in Q1 2025, related to the sale and committed sale of two vessels, including a $3.8 million impairment loss[128][133] NOTE 5 – INTANGIBLE ASSETS AND LIABILITIES Intangible Assets and Liabilities (Net Book Value, in thousands of U.S. dollars) | Item | December 31, 2024 | March 31, 2025 | | :------------------------------------------ | :---------------- | :--------------- | | Favorable lease terms | $42,311 | $37,871 | | Unfavorable lease terms | $15,266 | $12,386 | - Amortization expense for favorable lease terms was $4.4 million for Q1 2025, with a weighted average useful life of 4.6 years remaining[134][137] - Amortization income for unfavorable lease terms was $2.9 million for Q1 2025, with a weighted average useful life of 1.1 years remaining[138] NOTE 6 – BORROWINGS Total Borrowings (in thousands of U.S. dollars) | Item | March 31, 2025 | December 31, 2024 | | :------------------------------------------ | :--------------- | :---------------- | | Credit facilities | $1,096,726 | $1,096,178 | | Financial liabilities | $747,241 | $731,206 | | Finance lease liabilities | $321,667 | $325,784 | | Total borrowings | $2,165,634 | $2,153,168 | | Long-term borrowings, net | $1,875,186 | $1,862,715 | - Navios Partners entered into new credit facilities with KFW IPEX-BANK GMBH for up to $151.5 million and Hellenic Bank Public Company Limited for up to $30.0 million in Q1 2025[140][142] - The company was in compliance with all financial covenants under its credit facilities and financial liabilities as of March 31, 2025[151] - The annualized weighted average interest rate for total borrowings decreased to 6.3% for Q1 2025 from 7.1% for Q1 2024[153] NOTE 7 – INTEREST EXPENSE AND FINANCE COST, NET Interest Expense and Finance Cost, Net (in thousands of U.S. dollars) | Item | March 31, 2025 | March 31, 2024 | | :------------------------------------------ | :--------------- | :--------------- | | Interest expense incurred on credit facilities and financial liabilities | $29,375 | $25,946 | | Interest expense incurred on finance lease liabilities | $5,415 | $8,034 | | Interest expense capitalized related to deposits for vessel acquisitions | $(3,879) | $(6,137) | | Amortization and write-off of deferred finance costs | $1,672 | $1,676 | | Discount effect of long-term assets and other finance costs | $927 | $(110) | | Total interest expense and finance cost, net | $33,510 | $29,409 | - Total interest expense and finance cost, net, increased by $4.1 million to $33.5 million in Q1 2025[156] NOTE 8 – FAIR VALUE OF FINANCIAL INSTRUMENTS Fair Value of Financial Instruments (in thousands of U.S. dollars) | Item | March 31, 2025 (Book Value) | March 31, 2025 (Fair Value) | December 31, 2024 (Book Value) | December 31, 2024 (Fair Value) | | :------------------------------------------ | :-------------------------- | :-------------------------- | :----------------------------- | :----------------------------- | | Cash and cash equivalents | $320,968 | $320,968 | $270,166 | $270,166 | | Restricted cash | $596 | $596 | $29,623 | $29,623 | | Other investments | $21,386 | $21,386 | $12,289 | $12,289 | | Amounts due from related parties, short-term | $1,469 | $1,469 | $36,620 | $36,620 | | Amounts due to related parties, short-term | $(22,777) | $(22,777) | $— | $— | | Credit facilities and financial liabilities, net | $(1,819,427) | $(1,843,967) | $(1,803,153) | $(1,827,384) | | Fair value of derivatives, including current portion | $(1,771) | $(1,771) | $— | $— | - In February 2025, Navios Partners entered into interest rate swaps for a notional amount of $87.9 million to hedge interest rate exposure, designated as a Cash Flow Hedge[172][173] - As of March 31, 2025, the fair value of the Swap Transaction amounted to a $1.8 million loss, recognized in accumulated other comprehensive loss[174] NOTE 9 – REPURCHASES AND ISSUANCE OF UNITS - The Board of Directors authorized a common unit repurchase program for up to $100.0 million in July 2022[178] - As of March 31, 2025, the Company repurchased 236,459 common units in 2025 for $10.0 million, and a total of 990,179 common units for approximately $44.0 million since the program's commencement[178] NOTE 10 – INCOME TAXES - The Republic of the Marshall Islands does not impose tax on international shipping income[179] - Vessel-owning subsidiaries are subject to registration and tonnage taxes in their countries of incorporation/registration[179] - Navios Partners is treated as a corporation for U.S. federal income tax purposes and believes it satisfies the ownership test for Section 883 exemption from U.S. income tax on international shipping income[182][184] NOTE 11 – COMMITMENTS AND CONTINGENCIES - Navios Partners is involved in various disputes and arbitration proceedings, with provisions recognized for probable and estimable liabilities[185] - The company has significant commitments for newbuilding vessel acquisitions, including Aframax/LR2 tanker vessels and MR2 Product Tanker vessels, with deliveries expected through 2028[186][187][188][189][190][191][193][194][195] Future Minimum Lease Commitments for Undelivered Bareboat-in Vessels (in thousands of U.S. dollars) | Period | Amount | | :---------------- | :------- | | 2026 | $1,781 | | 2027 | $9,725 | | 2028 | $18,666 | | 2029 | $18,615 | | 2030 | $18,615 | | 2031 and thereafter | $118,893 | | Total | $186,295 | NOTE 12 – TRANSACTIONS WITH RELATED PARTIES AND AFFILIATES - Navios Partners renewed its Master Management Agreement and Administrative Services Agreement with the Manager (affiliated with CEO Angeliki Frangou) for ten-year terms commencing January 1, 2025[198][210] - The Master Management Agreement includes a technical management fee of $0.95 per day per owned vessel, a commercial management fee of 1.25% on revenues, and a 1% S&P fee on purchase or sales price[200] - Total general and administrative expenses charged by the Manager were $16.3 million for Q1 2025, up from $15.8 million for Q1 2024[211] NOTE 13 – CASH DISTRIBUTIONS AND EARNINGS PER UNIT - The Board of Directors authorized quarterly cash distributions of $0.05 per unit for Q4 2023 (paid Feb 2024), Q4 2024 (paid Feb 2025), and Q1 2025 (paid May 2025)[220][221][222] Earnings Per Unit (in U.S. dollars) | Item | March 31, 2025 | March 31, 2024 | | :------------------------------------------ | :--------------- | :--------------- | | Net income | $41,727 | $73,361 | | Common unitholders' net income | $40,851 | $71,894 | | Weighted average common units outstanding basic/diluted | 29,579,770 | 30,184,388 | | Earnings per common unit, basic | $1.38 | $2.38 | | Earnings per common unit, diluted | $1.38 | $2.38 | | Earnings per unit distributed basic/diluted | $0.05 | $0.05 | - Earnings per common unit (basic and diluted) decreased to $1.38 for Q1 2025 from $2.38 for Q1 2024[228] NOTE 14 – LEASES - Operating lease liability amounted to $234.4 million as of March 31, 2025, with corresponding right-of-use assets of $237.8 million[232] - Lease expense for operating leases was $9.6 million for Q1 2025, and sublease income was $16.1 million[233][235] - Sublease income for finance leases was $15.5 million for Q1 2025, with a weighted average useful life of 10.3 years remaining for finance lease terms[238][239] NOTE 15 – SUBSEQUENT EVENTS - In April 2025, Navios Partners took delivery of the Nave Dorado, a 2025-built Aframax/LR2 tanker vessel[243] - In May 2025, the company agreed to sell a 2009-built 4,250 TEU Containership for $35.5 million, with an expected aggregate gain on sale of approximately $18.2 million for this and another vessel[244]