Global Ship Lease (GSL) investor relations material

Strategic positioning and market environment

• Focus on mid-sized and smaller container ships, with 96% contract coverage for 2026 and 74% for 2027, supporting stable cash flows.

• Charter market for these vessels has shrunk due to liner companies buying rather than leasing, increasing scarcity value and supporting strong rates and durations.

• Fragmentation of global trade and supply chains, especially intra-Asia, is driving demand for flexible, smaller vessels.

• Geopolitical volatility and Red Sea disruptions have increased demand for shipping capacity and supported higher charter rates.

• Order book for smaller vessels is low, suggesting a tightening market and continued strong demand.

Financial performance and capital allocation

• Revenue, net income, and EBITDA have risen sharply over five years, with leverage reduced from 8.4x to 0.5x and cost of debt down to 4.34%.

• Dividend increased to $2.50 per share (7% yield), with $57 million in share buybacks completed and $33 million authorized.

• Capital allocation remains disciplined, balancing dividends, opportunistic buybacks, and a growing focus on fleet renewal as vessels age.

• No plans to redeem preferred shares, which are seen as useful quasi-equity in the capital stack.

Operational focus and fleet strategy

• Ships are maintained and operated by the company, while customers handle cargo and are exposed to freight market volatility.

• High reefer capacity is a strategic focus, as refrigerated cargo is the fastest-growing and most resilient segment.

• Fleet renewal is a priority, with acquisitions based on risk-adjusted returns; recent purchases include three 8,500 TEU ships.

• Scrapping decisions are tied to special survey cycles and market conditions, providing a supply-side safety valve.