Global Ship Lease, Inc. Q3 FY2025 earnings call

• Focus on optionality amidst geopolitical and trade policy uncertainty. Supply chains becoming less efficient increases demand for midsize and smaller container ships in their fleet. • Added $778 million in contracted revenues through first nine months of 2025 with strong coverage for future years. • Increased supplemental dividend to $2.5 per share annualized, a 19% increase. • Continued delevering to build equity value, reduced debt from $950 million in 2022 to on track to be under $700 million by end of 2025. • Red Sea disruption led to rerouting of ships, affecting charter rates. Tariffs in 2019 led to increased demand for midsize/smaller ships in intra-Asian trades. • IMO net zero framework deferral extends lives of older conventionally fueled vessels. Order book and scrapping trends discussed, with sub-ten thousand TEU fleet potentially shrinking if market normalizes.

As of September 30, Global Ship Lease had over $1.9 billion in forward contracted revenues with 2.5 years of remaining contract cover. Through the first nine months of 2025, they added $778 million in contracted revenues, with full contract coverage for 2025, 96% for 2026, and 74% for 2027. Cash position was $562 million, with $72 million restricted. They completed an $85 million refinancing, realized a $28.3 million gain from selling three older vessels, and have a strong credit rating. Dividend is $2.5 per share annualized, a 19% increase.

• Full contract coverage for 2025, 96% for 2026, and 74% for 2027. • Increased dividend to $2.5 per share annualized. • Continued delevering to build equity value. • Focus on disciplined and opportunistic fleet renewal to ensure value-generating assets going forward.

• Geopolitical uncertainties impacting trade and chartering. • Regulatory changes such as USTR fees, China port fees, and IMO net zero framework deferral creating uncertainty. • Market normalization leading to increased scrapping activity which could offset new vessel impact in their size segments.

Q: How are you seeing the gap between freight rates and charter rates?

A: Short answer is yes, charter rates continue to move sideways at very healthy levels.

Q: Is the $380 million added in contracted revenues in Q3 representative of broader market dynamics?

A: It's more representative of the market, with chartering activity affected by disruptions in prior quarters. Lines see capacity as optionality, especially for midsize/smaller container ships.

Q: Thoughts on older vessels in the fleet continuing to trade at 29-30 years old?

A: If market remains same, these ships will continue to trade as container ships have strong safety records and no extra insurance based on age. US Jones Act vessels trade into late thirties/forties.

Q: Discussions on Red Sea transit?

A: Not currently under discussion, it's a multilateral decision involving insurers and seafarer safety. Impact would be greater on bigger ships than midsize/smaller ones.