3Q26 NAV, Dividend and Market Update

22 October 2026

Tufton Assets Limited

3Q26 NAV, Dividend and Market Update

NAV total return of 5.0% for 3Q26; new charters secured at higher rates

Tufton Assets Limited (LSE: SHIP), the London-listed investment company that invests in a diversified fleet of sea-going ships, announces its unaudited 3Q26 net asset value (NAV) update for the quarter ended 30 September 2026.

Nicolas Tirogalas, Portfolio Manager, said:

"Our fleet continues to generate attractive returns to shareholders, and we had another good quarter with a NAV total return of 5% for 3Q26. We remain positive about the outlook on the shipping markets we operate in, with newbuild ship prices remaining high, geopolitical tensions and regulatory uncertainty continuing. Combined, these factors create favourable market conditions for our diversified fleet, which allows us to take advantage of current market opportunities."

Financial highlights

Following the total return of 5% for the quarter, SHIP NAV amounted to $435.9m as of September 30, 2026.

Operating profit was $13.5m for the quarter, compared to $7.9m the year prior, reflecting market improvement and the higher charters rates in the portfolio.

New charters

During the quarter, we agreed new charters for Lucilia C, African Inspiration and Mia Grace at higher rates than their previous charters; the new rate on Mia Grace is 81% above its previous charter. As the bulker market improved, we also agreed new charters for Amidala and Amilyn, converting their index-linked time charters to fixed-rate charters, and exercised our previously negotiated option to convert the floating-rate charter on Staithes to a fixed-rate charter for 4Q26.

In October, the charterer of Catherine Grace and Madelyn Grace exercised its options to extend both charters by a further year at higher rates than those of the previous firm periods, resulting in a net yield of ~14%. In the coming months, we expect to renew charters on four of our bulkers - R Skywalker, Mai Tai, Caipirinha and Maria 1921 - at good rates, further securing dividend cover. We are also evaluating opportunities for our tankers Octonaut, Glen Cove and Sven, which are expected to complete their current charters in 4Q26.

Portfolio highlights

During the period, the value of SHIP's 21-vessel portfolio - spanning product tankers, bulk carriers and chemical tankers - rose by $7.7m.

Changes in the company's charter-free values - the estimated open-market price of a ship assuming it is not on charter and available to be chartered:

·      Eight product tankers' value rose by $18.0m

·      Eleven bulk carriers' value rose by $0.9m

·      Two chemical tankers', which carry liquid chemical cargoes, value fell by $0.6m

At the end of the quarter, the escalation of hostilities in the Middle East and use of 'shuttle tankers' to transport oil and other products out of the Strait of Hormuz resulted in oil tanker rates rising to all-time highs. Ukrainian attacks on Russian refineries and inventory drawdowns earlier in the year have left the global market short of refined oil products. Product and chemical tanker rates and values rose further after the end of the quarter.

The bulker market remained strong during the quarter supported by strong demand for grain, iron ore and bauxite. Small bulkers - which SHIP favours and owns - remain relatively underinvested as most of the newbuild ship orders in recent years have been focused on larger vessels.

3Q26 dividend

The company declared an increased 3Q26 dividend of $0.0275 per share, payable on 25 November 2026. In spite of this 10% increase, the forecast dividend cover is 2.2x over the next 18 months.

Outlook

The Investment Manager's view remains that a diversified fleet of commercially flexible ships and conservative leverage continues to be the optimal approach for the long term, providing reliable income visibility throughout market cycles, with market inefficiencies creating ongoing upside potential.

We expect the crude tanker market to absorb more swing tonnage, resulting in higher rates and values for product and chemical tankers. Middle Eastern state-owned oil companies reportedly seek to formalise the shuttle service with long-term contracts, and global oil inventories, which the IEA estimates have drawn by more than 500 million barrels since February, will eventually need to be rebuilt.

We expect the bulker market to remain well supported going into 2027 and continue to believe that the segment could offer attractive opportunities in the medium term, given the relative lack of investment in newbuild capacity: the Handysize bulker orderbook for delivery over the next three years is just 9% of the current fleet, compared with ~15% that is already over 20 years old. The 2026 El Niño, widely expected to be one of the strongest on record and to peak in 1Q27, could provide a further tailwind through increased demand for bulk trade and potential disruption to Panama Canal transits.

We like the current outlook for both the tanker and bulker sectors, underpinned by an ageing global fleet, a manageable newbuild orderbook and a continued shift away from trade efficiency and into trade resilience. We will continue to implement our opportunistic fleet management strategy while closely monitoring the market for possible strategy adjustments.

Factsheet

The quarterly factsheet will shortly be available in the Investor Relations section of our website at: www.tuftonassets.com/quarterly-reports.

- Ends -

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About Tufton Assets Limited

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 3Q26 dividend due to be paid on 25 November 2026, the company will have returned $219.2 million to investors since inception.

About Tufton Investment Management Ltd

The Company's investment manager, Tufton Investment Management Ltd ('Tufton'), is a leading investment manager focused primarily on the maritime, raw materials, and energy-related sectors. Founded in 1985 and headquartered in London with offices in Geneva, Cyprus, and the Isle of Man, the firm manages public and private funds for institutional investors, including major UK pension funds. Over the past two decades, Tufton has managed over $3 billion for institutional investors, including UK pension funds, and has launched and managed publicly listed investment vehicles on the London Stock Exchange and Oslo Euronext Growth. Tufton's assets under management, including committed pipeline capital, is over $1.5 billion, across public and private funds and mandates.