[Management View]
Global Ship Lease, Inc. (GSL) reported $352 million in new contracted revenues this quarter, raising contracted revenue coverage to 93% for 2025 and 75% for 2026. The company achieved further deleveraging, with its net debt to EBITDA ratio now below one, and extended its average debt maturity to 5.1 years while maintaining a weighted average cost of debt below 4%. Dividend distributions increased to $2.10 per share annualized, representing a 40% rise year-over-year. Management highlighted their strategy of maximizing balance sheet flexibility and liquidity.

[Outlook]
The company expects continued strong demand for midsize and smaller ships, driven by rerouted trade flows and tighter supply chains. Management remains focused on opportunistic sales of aging vessels to generate cash for potential investments or acquisitions. They also noted the potential for increased demand for midsized vessels serving Southeast Asian trades due to recent tariff disruptions.

[Financial Performance]
- Contracted Revenues: $352 million added in Q1 2025, total contracted revenue nearly $1.9 billion.
- Contract Coverage: 93% for 2025, 75% for 2026.
- Dividend Increase: Raised to $2.10 per share annualized.
- Deleveraging: Net debt to EBITDA below 1, down from 8.4x in February 2018.
- Gross Debt: Just under $778 million.
- Debt Cost and Maturity: Weighted average cost of debt 3.99%, average debt maturity 5.1 years.
- Cash Position: $428 million, with $95 million restricted.

[Q&A Highlights]
Question 1: You've mentioned the rate environment has been very strong going against what, you know, freight rates are. Is there any interest on your charter customers to extend existing charters at better rates? Or are you just seeing a very good environment as charters roll over?
Answer: It depends on which charters are rolling off. Some charters fixed during the COVID high are still at extraordinarily high levels, so refixing them now might be a notch down. However, there is still appetite to fix at very attractive rates. The charter opportunities remain very attractive overall.

Question 2: You did opportunistically sell assets to build dry powder. Is there anything on the acquisition front or just asset prices not reasonable right now?
Answer: We are always looking at deals but maintain strict criteria. We don't do acquisitions for the sake of growth; it must make financial sense. We sold some ships that were around 25 years old at lucrative prices compared to chartering them. We keep the cash for future acquisitions and investments.

Question 3: How would you characterize the charter markets over the past week or so, especially after the China-US deal?
Answer: The momentum came off a bit during April, but interest and appetite have picked up again over the past week. Charter rates have remained high despite less activity, while freight rates came under pressure in April.

Question 4: What do you think about the cash position you want to have at Global Ship Lease, Inc.? Will you watch the cash balance pick up if there are no deals, or will it be put towards repaying debt?
Answer: We continue to delever following amortization requirements and maintain a financial leverage ratio of under one times. In times of maximum uncertainty, we value maximal optionality, which includes holding a robust cash position to manage risks and seize opportunities.

[Sentiment Analysis]
Analysts and management maintained a positive tone, emphasizing the strong contracted revenues, strategic deleveraging, and robust cash position. There was a focus on maintaining flexibility and optionality in a volatile macro environment.

[Quarterly Comparison]
| Metric | Q1 2025 | Q4 2024 |
|----------------------------|---------------|---------------|
| Contracted Revenues | $352 million | N/A |
| Contract Coverage (2025) | 93% | N/A |
| Contract Coverage (2026) | 75% | N/A |
| Dividend | $2.10/share | N/A |
| Net Debt to EBITDA | <1 | N/A |
| Gross Debt | $778 million | N/A |
| Weighted Avg. Cost of Debt | 3.99% | N/A |
| Average Debt Maturity | 5.1 years | N/A |
| Cash Position | $428 million | N/A |

[Risks and Concerns]
- Macroeconomic and geopolitical volatility.
- Potential impact of tariffs and trade barriers.
- Uncertainty in the charter and freight markets.
- Dependence on midsize and smaller ships for operational flexibility.

[Final Takeaway]
Global Ship Lease, Inc. demonstrated strong financial performance in Q1 2025, with significant contracted revenues and strategic deleveraging. The company remains focused on maintaining balance sheet flexibility and liquidity, while opportunistically selling aging vessels to generate cash for future investments. Despite macroeconomic uncertainties, GSL is well-positioned to capitalize on opportunities and manage risks, ensuring long-term value for shareholders.