Fine tuning 2021 EBITDA estimate to $203 million on TCE rate assumptions of $20.7k/day. Forward cover remains high at 71% of 3Q2021 available days booked at TCE rates that are much higher at $27.6k/day. Three new time charters signed, but visibility is limited beyond one quarter out.Our FY2022 dividend estimate has moved up to $3.05/share from our original estimate of $2.25/share, or a potential yield of ~17%. The dividend estimate increase is driven by our higher 2022 EBITDA estimate of $226 million and higher TCE rates of $21.6k/day.New credit agreement of $450 million refinances all existing debt and enhances financial flexibility. Recent shelf filing adds flexibility to the tool kit and we see no indication that equity issuance is imminent given the current outlook. The new five-year credit agreement consists of a term loan of $150 million and a revolver of $300 million. Pricing is attractive at Libor plus a range of 215 bps to 275 bps based on the net debt/EBITDA ratio and there is no mandatory amortization.Fleet renewal program remains opportunistic and adding three Ultras, or six in total. Sale of oldest Supra also positive. The fleet renewal program activity ramped up after the April introduction of the capital allocation strategy and a total of $149.5 million of acquisitions have been lined up. After lining up three Ultra acquisitions for $78.5 million in 2Q2021, another three Ultra acquisitions for $71.0 million were announced this week. As a result, acquisitions totaled $21.6 million in 2Q2021 and the remainder will be spread out over the next three quarters, with $87.2 million in 3Q2021 and $40.8 million in 1Q2022.Maintain OUTPERFORM rating and price target of $28. The dry bulk market outlook remains favorable due to firm demand and low supply growth. The reception to a variable dividend policy has improved, and the fleet renewal program, upside Cape optionality, and higher public float are positives. While the stock has responded to firmer dry bulk market fundamentals and is up 145% this year, including 37% in 1Q2021 and 87% in 2Q2021, the stock is down 5% in 3Q2021 and we view the current risk/reward profile and upside potential as attractive. Read More >>