HispanicBusiness

General and Administrative Expenses
General and administrative expenses increased 8.5%, or $0.4 million, to $5.1 million in the three months ended September 30, 2012, from $4.7 million in the same period of 2011. The increase was mainly the result of increased fees to our Manager, due to the increase in the average number of vessels in our fleet.

Other Operating Expenses
Other Operating Expenses includes Voyage Expenses

Voyage Expenses
Voyage expenses increased by $0.1 million, to $3.7 million in the three months ended September 30, 2012, from $3.6 million in the three months ended September 30, 2011. The increase was the result of increased commissions to our Manager, due to the increase in the average number of vessels in our fleet and the increase in the commission on gross charter hires to our Manager, to 1.0% from 0.75%, effective January 1, 2012. This was partially offset by fuel costs recorded in the third quarter of 2011 due to the repositioning of one of our vessels (our vessels are not otherwise subject to fuel costs, which are paid by our charterers), not incurred in the third quarter of 2012.

Interest Expense and Interest Income
Interest expense increased by 68.1%, or $9.8 million, to $24.2 million in the three months ended September 30, 2012, from $14.4 million in the three months ended September 30, 2011. The change in interest expense was due to the increase in our average debt by $550.0 million, to $3,423.4 million in the three months ended September 30, 2012, from $2,873.4 million in the three months ended September 30, 2011, as well as the increased average LIBOR payable on interest under our credit facilities in the three months ended September 30, 2012 compared to the three months ended September 30, 2011. Furthermore, the financing of our newbuilding program resulted in $3.2 million of interest being capitalized, rather than such interest being recognized as an expense, for the three months ended September 30, 2011 compared to nil interest being capitalized for the three months ended September 30, 2012, following the completion of our newbuilding program in June 2012.

Interest income was $0.4 million in the three months ended September 30, 2012 compared to $0.3 million in the three months ended September 30, 2011.

Other finance costs, net
Other finance costs, net, increased by $1.4 million, to $5.0 million in the three months ended September 30, 2012, from $3.6 million in the three months ended September 30, 2011. This increase was mainly due to the $0.8 million increase in amortizing finance fees (which were deferred and are amortized over the term of the respective credit facilities), as well as increased accrued finance fees of $0.5 million (which accrete in our Statement of Income over the term of the respective facilities) in the third quarter of 2012 compared to the same period in 2011.

Other income/(expenses), net
Other income/(expenses), net, was income of $0.3 million in the three months ended September 30, 2012, compared to income of $0.1 million in the three months ended September 30, 2011.

Unrealized gain/(loss) on derivatives
On July 1, 2012, we elected to prospectively de-designate interest rate swaps for which we were applying hedge accounting treatment due to the compliance burden associated with this accounting policy. As a result, all changes in the fair value of our interest rate swaps will be recorded in earnings under "Unrealized (Losses)/Gains on Derivatives" from the de-designation date forward. Unrealized gains of $22.9 million due to the mark to market valuation of our cash flow interest rate swaps were recognized in earnings in the three months ended September 30, 2012. In addition, unrealized losses in Accumulated Other Comprehensive Loss associated with the previously designated cash flow interest rate swaps will be recognized in earnings when the respective interest payments are recognized in earnings. In this respect, during the three months ended September 30, 2012, we recognized an expense of $35.7 million in our earnings (representing the amortization of the unrealized losses in our Accumulated Other Comprehensive Loss for the respective quarter).