[Management View]
Global Ship Lease (GSL) management emphasized their strategic focus on securing long-term charter coverage, with nearly $400 million in additional charter revenue secured in the first half of 2025. The company has effectively closed out market exposure for 2025 and achieved 80% coverage for 2026. Management highlighted the sale of older vessels to capitalize on high secondhand values, reinforcing their commitment to fleet renewal and maintaining high utilization rates.

[Outlook]
GSL provided performance guidance indicating strong financial resilience, with a focus on maintaining attractive charter rates despite freight rate softness in certain markets. The company plans to continue opportunistic fleet renewal and capital allocation to maximize shareholder value, supported by a robust balance sheet and strong cash flows from multiyear contracts.

[Financial Performance]
GSL reported a significant reduction in gross debt to under $700 million as of June 30, 2025, from $950 million at year-end 2022. The company achieved a net leverage ratio of 0.7x EBITDA for the first half of 2025, reflecting a continued deleveraging trend. Vessel sales generated a gain of $28.3 million, with a fourth ship contracted for sale at $35.6 million in Q4 2025.

[Q&A Highlights]
Question 1: As we look into the third quarter, freight rates are softening. Is there still a positive disconnect between your freight rates and charter rates?
Answer: Yes, charter rates are holding up firmly despite downward pressure on freight rates in the Transpacific. There are more buoyant markets such as Asia-Europe, and charter rates remain very attractive.

Question 2: Is there interest in longer durations for vessels up for recharter from your liner customers?
Answer: There is appetite for midsize and smaller tonnage for multiyear charters. Smaller ships may see contracts for a couple of years, while larger vessels in our fleet may secure three-plus years.

Question 3: What is behind the interest in smaller ships, and do you see opportunities to place orders for smaller ships against long-term contracts?
Answer: There is recognition that midsize and smaller segments are underbuilt, but long-term charters remain challenging to secure, limiting speculative orders. We are always looking at opportunities but will only move forward if risk and return numbers work.

Question 4: You've monetized another older ship at a firmer price than a sister ship earlier. Are sales driven by freight rates?
Answer: Sales are opportunistic, driven by value generation for the company. Asset values and charter rates remain firm, and decisions are dynamic based on economic sense.

Question 5: Can you confirm whether the six additional dry dockings are to be pursued throughout Q3 or include Q4?
Answer: This granular detail will be addressed offline.

Question 6: To what extent should we expect you to focus on large vessels relative to feeders?
Answer: Our focus is on post-Panamax beam ships, but we remain open to smaller ships if the deal makes sense. Preference is for midsize post-Panamax ships between 6,000 to 10,000 TEU.

[Sentiment Analysis]
Analysts expressed interest in GSL's strategic fleet management and financial resilience. Management maintained a confident tone, emphasizing their strong balance sheet and strategic approach to fleet renewal and capital allocation.

[Quarterly Comparison]
| Metric | Q2 2025 | Q1 2025 | Q2 2024 |
|--------|---------|---------|---------|
| Gross Debt | <$700M | $750M | $950M |
| Net Leverage (Debt/EBITDA) | 0.7x | 0.8x | 1.0x |
| Vessel Sales Gain | $28.3M | N/A | N/A |
| Dividend per Share | $2.10 | $2.00 | $1.80 |

[Risks and Concerns]
GSL faces risks from geopolitical tensions and trade disruptions impacting global container shipping efficiency. The company is managing these risks by securing long-term charters and maintaining a flexible fleet.

[Final Takeaway]
Global Ship Lease demonstrated strong financial performance and strategic fleet management in Q2 2025, with significant debt reduction and opportunistic vessel sales. The company is well-positioned to navigate market uncertainties, supported by robust charter coverage and a resilient balance sheet. Management's focus on disciplined capital allocation and fleet renewal underscores their commitment to maximizing shareholder value in a dynamic market environment.