Global Ship Lease, Inc. Q4 FY2024 earnings call

• 2024 was a strong year with $9.74 EPS, normalized to just below $10. Geopolitical uncertainty and Red Sea disruptions continued, with ships transiting Cape of Good Hope. • Added $714M contracted revenues in 2024, $118M in Q4, $171M in 2025. Lowered debt, reduced cost of debt to 3.85%, extended average maturity to 4.2 years. • Paid annualized dividend of $1.80 per share, with Q1 2025 dividend to be $0.525 per share, doubling supplemental dividend to make annualized $2.10, 17% increase. • Purchased 4 ECO 9,000 vessels in Dec 2024, delivered ahead of schedule, chartered, cash generative, accretive to EPS, financed attractively. Rotating out 3 oldest ships on attractive terms. • Red Sea disruptions led to rerouting, adding TEU miles and absorbing ship capacity. Focus on mid-sized and smaller container ships for flexibility. • Tariffs and trade tensions monitored, with past example showing increased demand for midsized/smaller ships due to supply chain diversification. • Supply side: idle capacity nonexistent, scrapping limited; order book growth in big ships, segment focus on 2000-10,000 TEU has 11.3% order book to fleet ratio, net fleet growth negative if 25+ year ships scrapped.

In 2024, Global Ship Lease generated $9.74 earnings per share, rising to just below $10 EPS on a normalized basis. They added $714 million of contracted revenues in 2024, with $118 million in the fourth quarter and $171 million so far in 2025. They lowered outstanding debt, brought cost of debt to 3.85%, pushed average maturity to 4.2 years. They paid an annualized dividend of $1.80 per share, with plans to double the supplemental dividend in Q1 2025 to make overall dividend $2.10 per share annualized, a 17% increase. They purchased 4 high specification 9,000 TEU ships and are rotating out 3 oldest ships on attractive terms.

• Beginning Q1 2025, dividend payable in June will double supplemental dividend, making overall dividend $0.525 per share quarterly, $2.10 annualized, 17% increase. • Focus on fleet renewal, purchasing 4 new ships and rotating out older ones on attractive terms. • Expect years ahead to provide opportunities to invest in business and renew fleet, maintaining long-term earnings power.

• Geopolitical uncertainty, especially in Red Sea, unpredictable situation with liners avoiding area. • Trade tariffs and tensions, unpredictable impact on container trades and shipping demand. • Market uncertainties including macroeconomic factors that could affect charter rates and ship values.

Q: How is the appetite of liner companies for vessels opening up for re-charter?

A: Still seeing strong charter rates, limited availability of ships in market, so lines willing to pay up for needed ships. Still seeing appetite for midsize and smaller container ships for decent periods (2-3 years depending on vessel size).

Q: Are you looking at more assets to divest?

A: Fundamentally make money by holding assets and chartering. Sold 3 older vessels opportunistically as part of fleet renewal, still convinced real money in containership owning is by holding and sweating assets.