UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16 OF THE SECURITIES EXCHANGE ACT OF 1934

For the month of May 2022

Commission File Number:  001-34153

Global Ship Lease, Inc.
(Translation of registrant's name into English)
 
c/o Global Ship Lease Services Limited,
25 Wilton Road
London SW1V 1LW
United Kingdom
(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F [X]       Form 40-F [  ]

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [  ].

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [  ].

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant's "home country"), or under the rules of the home country exchange on which the registrant's securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant's security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.




INFORMATION CONTAINED IN THIS FORM 6-K REPORT
Financial Results for the Three Months ended March 31, 2022
Attached to this Report on Form 6-K (this “Report”) as Exhibit 99.1 is a copy of the press release of Global Ship Lease, Inc. (the “Company”), dated May 9, 2022, reporting the Company’s financial results for the three months ended March 31, 2022.  Attached to this Report as Exhibit 99.2 are the Company’s interim unaudited consolidated financial statements for the three months ended March 31, 2022.
Quarterly Dividend on Preferred Shares
Attached to this Report as Exhibit 99.3 is a copy of the press release of the Company, dated March 10, 2022, announcing that the Company’s Board of Directors (the “Board”) declared a quarterly dividend on its 8.75% Series B Cumulative Redeemable Perpetual Preferred Shares.
Changes to the Board of Directors
Effective as of May 5, 2022, the Board appointed Captain Yoram (Rami) Neugeborn as a Term I Director until the Company’s 2024 annual meeting of shareholders, filling the vacancy created by the resignation of Mr. Philippe Lemonnier. The Board of Directors has determined that Mr. Neugeborn qualifies as an independent director.
Mr. Neugeborn is a Master Mariner with more than 40 years of experience in the shipping industry.  He currently serves as the Chief Executive Officer of Aquarii Shipping Solutions Ltd., a private shipping consultant company. Prior to joining the Company’s Board, from 2010 to 2022 he served as Manager of the Chartering and Sale and Purchase Division at ZIM Integrated Shipping Services Ltd. and from 2008 to 2010 he served as the Manager of the Shipping Commercial Division at XT Shipping Ltd. (formerly, Ofer Brothers Shipping, Haifa). Between 2002 – 2007 he served as a Managing Director of Zim-Ofer Shipbrokers. Further, from 1994 to 1998 he served as Commanding Captain onboard ocean-going vessels. Mr. Neugeborn graduated from the Israeli Maritime Institute in Acre, Israel (Haifa University) and has a Certificate of Competency, Master Mariner F.G.
The information contained in this Report under the heading “Changes to the Board of Directors”, Exhibit 99.1 (excluding the commentary of George Youroukos and Ian Webber), Exhibit 99.2 and Exhibit 99.3 is hereby incorporated by reference into the Company's registration statements on Form F-3 (File Nos. 333-231509, 333-234343, 333-235305 and 333-258800) and Form S-8 (File Nos. 333-258992 and 333-264113).


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 
GLOBAL SHIP LEASE, INC.
 
(registrant)
   
   
Dated: May 9, 2022
By:
/s/ Ian J. Webber
   
Ian J. Webber
   
Chief Executive Officer
     




Exhibit 99.1

Investor and Media Contacts:
The IGB Group
Bryan Degnan
646-673-9701
or
Leon Berman
212-477-8438


Global Ship Lease Reports Results for the First Quarter of 2022
Declares Dividend of $0.375 per Common Share


LONDON, ENGLAND — May 9, 2022 - Global Ship Lease, Inc. (NYSE:GSL) (the “Company”, “Global Ship Lease” or “GSL”), an owner of containerships, announced today its unaudited results for the three months ended March 31, 2022.
First Quarter 2022
- Reported operating revenue of $153.6 million for the first quarter 2022, 2.1 times revenue of $73.0 million for the prior year period.
- Reported net income available to common shareholders of $70.2 million for the first quarter of 2022, an increase of 1,571.4% or 16.7 times net income of $4.2 million for the prior year period. Normalized net income(3) after $4.6 million positive fair value adjustment on derivatives, a prepayment fee of $4.0 million on the full repayment of our Blue Ocean Junior Credit Facility and the associated non-cash write off of deferred financing charges of $0.1 million, was $69.7 million, 3.9 times normalized net income of $17.8 million for the prior year period which is after $5.8 million premium paid on the redemption in full of our 9.875% Senior Secured Notes due 2022 (“2022 Notes”)  in January 2021, $3.7 million acceleration of deferred financing charges and $1.1 million acceleration of the amortization of the original issue discount both associated with the redemption of the 2022 Notes and the non-cash effect of $1.3 million for accelerated stock based compensation expense due to vesting and new awards of fully vested incentive shares, plus a prepayment fee of $1.6 million paid on the partial repayment of our Blue Ocean Junior Credit Facility.
- Generated $94.5 million of Adjusted EBITDA(3) for the first quarter 2022, 2.1 times  Adjusted EBITDA (3) of $44.2 million for the prior year period.
- Earnings per share for the three months ended March 31, 2022 was $1.93, 14.8 times the earnings per share of $0.13 for the comparative period. Normalized earnings per share for the three months ended March 31, 2022 was $1.91, 3.4 times the Normalized earnings per share of $0.56 for the prior year period.
- Declared a dividend of $0.375 per Class A common share for the first quarter of 2022 to be paid on June 2, 2022 to common shareholders of record as of May 24, 2022.
- Authorized a program of $40.0 million for opportunistic share repurchases. During April 2022 we repurchased 184,684 Class A common shares at an average price of $26.66 per share for a total of $4.9 million.
- On April 5, 2022, completed the partial redemption of $28.5 million principal amount of our Senior Unsecured Notes due 2024 (the “2024 Notes”) at a price equal to 102.00% of the principal amount plus accrued and unpaid interest. Upon completion of the redemption the outstanding principal amount of our 2024 Notes was $89.0 million.
Page 1



- In January 2022, agreed an amendment to the existing $268.0 million Syndicated Senior Secured Credit Facility with an outstanding balance of $213.2 million, to extend the maturity date from September 2024 to December 2026, favorably amend certain covenants, and release three vessels from the facility’s collateral basket, at an unchanged rate of LIBOR + 3.00%. The three vessels were subsequently used as collateral for a new $60.0 million syndicated senior secured debt facility, maturing in July 2026 and priced at LIBOR + 2.75%, which was used to fully repay the 10.00% Blue Ocean junior debt facility and for general corporate purposes.
- In February 2022, entered into USD 1-month LIBOR interest rate caps of 0.75% through fourth quarter 2026 on $507.9 million of floating rate debt, which reduces over time and represented the remaining balance of the outstanding floating rate debt, after entering a similar interest rate cap in December 2021, on $484.1 million of floating rate debt, which also reduces over time, leaving the Company fully hedged on its floating rate debt.
- Chartered the only vessel to come open year-to-date, our feeder Kumasi, for 37 – 39 months to Wan Hai at a rate of $38,000 per day, up from a rate of $9,300 per day for the preceding charter.
George Youroukos, Executive Chairman of Global Ship Lease, stated, “I am pleased to report that Global Ship Lease has delivered another quarter of earnings growth, even amid significant geopolitical activity, as additional highly attractive charters that we secured over the course of the last year have increasingly come into effect. With no vessels in GSL’s fully contracted fleet likely to be in the charter market until fourth quarter 2022, we have a high degree of certainty on our cashflows through at least the medium term, with many of our highest-earning charters extending well into the middle of the decade. This clarity and long-term contract coverage enables us to utilize our excess cash to increase our return of capital to shareholders, raising our dividend, as already announced, while also executing on our share repurchase program, buying back almost $5 million of our shares in the market.
Across the global chartered fleet, the vast majority of containerships are currently on extended charters, resulting in only very little current charter market activity. However, what little chartering there has been has continued to demonstrate how tight the market is. Looking forward, we continue to see highly constrained supply growth for all but the very largest containerships, and a high likelihood of continued supply chain disruption and congestion, which - almost regardless of demand growth - give us confidence about our ability to continue securing and extending long-term, reliable, contracted revenues from our high-quality fleet.
I would like to take this opportunity to thank Philippe Lemonnier, who has decided to stand down as a Director of Global Ship Lease.  We have greatly valued his advice over the last five years and wish him well for the future.  At the same time, I am delighted to welcome Captain Yoram (Rami) Neugeborn to our Board.  Rami is a Master Mariner with more than 40 years’ experience in the shipping industry, most recently having been Manager of the Chartering and Sale and Purchase Department at ZISS (Zim Integrated Shipping Services Ltd.) for 12 years.”
Ian Webber, Chief Executive Officer of Global Ship Lease, commented, “Alongside our success in chartering our fleet and increasing our earnings in a long-term sustainable manner, we have remained focused on utilizing our increased financial strength to enhance our balance sheet. We have continued to eliminate our more expensive legacy debt, resulting in a reduction in our cost of debt from nearly 8% at the start of 2019 to 4.63% now. Similarly, between late 2021 and the first quarter of this year, we have put in place interest rate caps for all of our debt, so we are now fully hedged against rising interest rates. With no debt maturities through mid-2024, our contracted cashflows provide us with highly reliable coverage for our debt service and our return of capital to shareholders, while also putting us in a position to continue acting opportunistically to further strengthen our balance sheet and financial flexibility.”
Page 2



SELECTED FINANCIAL DATA – UNAUDITED
(thousands of U.S. dollars)
   
Three
   
Three
 
   
months ended
   
months ended
 
   
March 31, 2022
   
March 31, 2021
 
             
Operating Revenue (1)
   
153,631
     
72,980
 
Operating Income
   
86,116
     
30,272
 
Net Income (2)
   
70,182
     
4,159
 
Adjusted EBITDA (3)
   
94,538
     
44,241
 
Normalized Net Income (3)
   
69,669
     
17,765
 

(1) Operating Revenue is net of address commissions which represent a discount provided directly to a charterer based on a fixed percentage of the agreed upon charter rate and also includes the amortization of intangible liabilities. Brokerage commissions are included in “Time charter and voyage expenses”.
(2) Net Income available to common shareholders.
(3) Adjusted EBITDA, Normalized Net Income and Normalized Earnings Per Share are non-U.S. Generally Accepted Accounting Principles (“U.S. GAAP”) financial measures, as explained further in this press release, and are considered by Global Ship Lease to be a useful measure of its performance. For reconciliations of these non-U.S. GAAP financial measure to net income or earnings per share as reported, the most directly comparable U.S. GAAP financial measures, please see “Reconciliation of Non-U.S. GAAP Financial Measures” below.
Revenue and Utilization
Revenue from fixed-rate, mainly long-term, time-charters was $153.6 million in the three months ended March 31, 2022, up $80.6 million (or 110.4%) on revenue of $73.0 million for the prior year period. The period-on-period increase in revenue was principally due to (i) a 51.2% increase in ownership days, due to the net acquisition of 22 vessels in 2021, all of which were delivered after March 31, 2021, resulting in 5,850 ownership days in the quarter, compared to 3,870 in the first quarter 2021, (ii) increased revenue on charter renewals at higher rates on 13 vessels, (iii) $12.4 million credit from amortization of intangible liabilities arising on below-market charters attached to the vessel additions, and (iv) $4.4 million due to the modification of time charter contracts with a direct continuation at a different higher rate with the same charterer, partially offset by an increase in unplanned offhire days from 25 in the first quarter of 2021 to 82 days in the same quarter of 2022 and an increase in planned offhire days from 27 in the first quarter of 2021 to 227 in the same quarter of 2022. The 82 days of unplanned offhire in the first quarter of 2022 includes an incident of 16 days for main engine damage of one ship and offhire days due to COVID-19. The 227 days of planned offhire for drydockings in the first quarter 2022 were attributable to six regulatory drydockings, while in the comparative period of 2021, the 27 days of planned offhire were mainly attributable to one drydocking. Utilization for the first quarter of 2022 was 94.7% compared to utilization of 98.3% in the same period of the prior year.
Page 3



The table below shows fleet utilization for the three months ended March 31, 2022 and 2021, and for the years ended December 31, 2021, 2020, 2019 and 2018.
   
Three months ended
   
Year ended
 
   
March 31,
   
March 31,
   
Dec 31,
   
Dec 31,
   
Dec 31,
   
Dec 31,
 
Days
 
2022
   
2021
   
2021
   
2020
   
2019
   
2018
 
                                     
Ownership days
   
5,850
     
3,870
     
19,427
     
16,044
     
14,326
     
7,675
 
Planned offhire - scheduled drydock
   
(227)

   
(27)

   
(752)

   
(687)

   
(537)

   
(34)

Unplanned offhire
   
(82)

   
(25)

   
(260)

   
(95)

   
(105)

   
(17)

Idle time
   
-
     
(15)

   
(88)

   
(338)

   
(164)

   
(47)

Operating days
   
5,541
     
3,803

   
18,327
     
14,924
     
13,520
     
7,577
 
               
                               
Utilization
   
94.7%

   
98.3%

   
94.3%

   
93.0%

   
94.4%

   
98.7%


Four drydockings to meet regulatory requirements were completed in the first quarter 2022 and, as of March 31, 2022, two such drydockings were in progress. In 2022, we anticipate 14 further drydockings.
Vessel Operating Expenses
Vessel operating expenses, which primarily include costs of crew, lubricating oil, repairs, maintenance, insurance and technical management fees, were up 62.4% to $39.4 million for the first quarter 2022, compared to $24.3 million in the comparative period. The increase of $15.2 million was mainly due to 1,980, or 51.2%, net additional ownership days in the first quarter 2022 as the result of the net increase of 22 vessels since April 1, 2021. The average cost per ownership day in the quarter was $6,743, compared to $6,275 for the prior year period, up $468 per day, or 7.5% mainly due to higher than average daily operating expenses of the vessels acquired in 2021 and also from increased crew expenses as a result of COVID-19 and the conflict in Ukraine, increased insurance costs and increased lubricant expenses as a result of higher oil prices.
Time Charter and Voyage Expenses
Time charter and voyage expenses comprise mainly commission paid to ship brokers, the cost of bunker fuel for owner’s account when a ship is off-hire or idle and miscellaneous owner’s costs associated with a ship’s voyage. Time charter and voyage expenses were $4.4 million for the first quarter 2022, compared to $1.8 million in the first quarter of 2021. The increase was mainly due to the net increase of 22 vessels since April 1, 2021, plus the increase in unplanned off hire days resulting in higher costs for bunker fuel for owner’s account.
Depreciation and Amortization
Depreciation and amortization for the first quarter 2022 was $19.9 million, compared to $12.4 million in the first quarter of 2021. The increase was mainly due to the net increase of 22 vessels since April 1, 2021 and the 14 drydockings that have been completed since April 1, 2021, including five drydockings for vessels acquired in 2021.
General and Administrative Expenses
General and administrative expenses were $3.9 million in the first quarter 2022, compared to $4.3 million in the first quarter of 2021. The decrease was mainly due to the non-cash effect of accelerated stock based compensation expenses due to vesting recorded in the first quarter of 2021. The average general and administrative expense per ownership day for the first quarter 2022 was $660, compared to $1,104 in the comparative period, a decrease of $444 or 40.2%.
Page 4



Adjusted EBITDA
Adjusted EBITDA was $94.5 million for the first quarter 2022, up from $44.2 million for the first quarter of 2021, with the net increase being mainly due to the increased operating days from the net increase of 22 vessels since April 1, 2021 and increase revenue from charter renewals at higher rates.
Interest Expense and Interest Income
Debt as at March 31, 2022 totaled $1,078.5 million, comprising $791.8 million of secured debt collateralized by vessels, $169.2 million under sale and leaseback financing transactions and $117.5 million of unsecured indebtedness on our 2024 Notes. As of March 31, 2022, none of our vessels were unencumbered.
Debt as at March 31, 2021 totaled $769.0 million, comprising $694.1 million of secured debt collateralized by our vessels and $74.9 million of unsecured indebtedness on our 2024 Notes. As of March 31, 2021, none of our vessels were unencumbered.
Interest and other finance expenses for the first quarter 2022 were $21.3 million, down from $25.3 million for the first quarter of 2021, although total debt increased by a net amount of $309.5 million period on period or 40.2%. The decrease was mainly due to $5.8 million premium paid on the redemption in full of our 2022 Notes in January 2021, the non-cash write off of deferred financing charges of $3.7 million and of original issue discount of $1.1 million associated with the redemption of the 2022 Notes, the prepayment fee of $1.6 million paid on the partial repayment of our Blue Ocean Junior Credit Facility compared to the prepayment fee of $4.0 million paid on the full repayment of our Blue Ocean Junior Facility paid in the first quarter of 2022 and interest on new loans with Hamburg Commercial Bank AG and new sale and leaseback agreements with Neptune Maritime Leasing and with CMB Financial Leasing Co. Ltd., all for vessel acquisitions, offset by a decrease in our blended cost of debt from approximately 5.6% for first quarter 2021 to 4.7% for first quarter 2022, as a result of our refinancings although three month Libor has increased in first quarter of 2022 to 0.53% as compared to 0.20% in first quarter of 2021.
Interest income for the first quarter 2022 was $0.25 million, up from $0.24 million for the first quarter of 2021.
Other Income, Net
Other income, net was $0.4 million in the first quarter 2022, the same as in first quarter of 2021.
Fair value adjustment on derivatives
In February 2022, we entered into two USD 1-month LIBOR interest rate caps of 0.75% through fourth quarter 2026 on $507.9 million of floating rate debt. The second interest rate cap was not designated as a cash flow hedge and therefore the positive fair value adjustment of $4.6 million as at March 31, 2022 was recorded though our statement of income.
Earnings Allocated to Preferred Shares
Our Series B Preferred Shares carry a coupon of 8.75%, the cost of which for the first quarter 2022 was $2.4 million, compared to $1.5 million for the first quarter 2021. The increase was due to additional Series B Preferred Shares issued under our ATM program since April 1, 2021.
Page 5



Net Income Available to Common Shareholders
Net income available to common shareholders for the three months ended March 31, 2022 was $70.2 million after the $4.6 million positive fair value adjustment on derivatives, the prepayment fee of $4.0 million on the full repayment of our Blue Ocean Junior Credit Facility and the associated non-cash write off of deferred financing charges of $0.1 million. Net income available to common shareholders for the three months ended March 31, 2021 was $4.2 million, after $5.8 million premium paid on the redemption in full of our 2022 Notes in January 2021, $3.7 million acceleration of deferred financing charges and $1.1 million acceleration of the amortization of the original issue discount both associated with the redemption of the 2022 Notes and the non-cash effect of $1.3 million for accelerated stock based compensation expense due to vesting and new awards of fully vested incentive shares, plus a prepayment fee of $1.6 million paid on the partial repayment of our Blue Ocean Junior Credit Facility.
Earnings per share for the three months ended March 31, 2022 was $1.93, an increase of 1,384.6% from the earnings per share for the comparative period, which was $0.13.
Normalized net income (a non-GAAP financial measure) for the three months ended March 31, 2022, was $69.7 million after the $4.6 million of positive fair value adjustment on derivatives, $4.0 million prepayment fee paid on the full repayment of our Blue Ocean Junior Credit Facility and the associated non-cash write off of deferred financing charges of $0.1 million. Normalized net income for the three months ended March 31, 2021, was $17.8 million, before the $5.8 million premium paid on the redemption in full of our 2022 Notes in January 2021, the acceleration of deferred financing charges of $3.7 million and the acceleration of the amortization of the original issue discount of $1.1 million and the non-cash effect of $1.3 million for accelerated stock based compensation expense due to vesting and new awards of fully vested incentive shares, plus a prepayment fee of $1.6 million paid on the partial repayment of our Blue Ocean Junior Credit Facility.
Normalized earnings per share for the three months ended March 31, 2022 was $1.91, an increase of 241.1% from Normalized earnings per share for the comparative period, which was $0.56.
Page 6



Fleet
As at May 8, 2022, we had 65 containerships in our fleet.
 
 
Vessel Name
Capacity in TEUs
Lightweight (tons)
Year Built
Charterer
Earliest Charter Expiry Date
Latest Charter Expiry Date (2)
Daily Charter Rate $
               
CMA CGM Thalassa
11,040
38,577
2008
CMA CGM
4Q25
2Q26
47,200
UASC Al Khor (1)
9,115
31,764
2015
Hapag-Lloyd (3)
2Q27 (3)
4Q27 (3)
34,000 (3)
Anthea Y (1)
9,115
31,890
2015
COSCO
3Q23
4Q23
38,000
Maira XL(1)
9,115
31,820
2015
ONE (3)
3Q27 (3)
4Q27 (3)
31,650 (3)
MSC Tianjin
8,603
34,325
2005
MSC
2Q24
3Q24
19,000
MSC Qingdao (4)
8,603
34,609
2004
MSC
2Q24
1Q25
23,000
GSL Ningbo
8,603
34,340
2004
MSC
1Q23
3Q23
22,500
GSL Eleni
7,847
29,261
2004
Maersk
3Q24
4Q24 (5)
16,500 (5)
GSL Kalliopi
7,847
29,105
2004
Maersk
4Q22
4Q24 (5)
14,500 (5)
GSL Grania
7,847
29,190
2004
Maersk
3Q22
4Q24 (5)
14,500 (5)
Mary (1)
6,927
23,424
2013
CMA CGM
3Q23
1Q24
25,910
Kristina (1)
6,927
23,421
2013
CMA CGM
2Q24
3Q24
25,910
Katherine (1)
6,927
23,403
2013
CMA CGM
1Q24
2Q24
25,910
Alexandra (1)
6,927
23,348
2013
CMA CGM
1Q24
3Q24
25,910
Alexis (1)
6,882
23,919
2015
CMA CGM
1Q24
3Q24
25,910
Olivia I (1)
6,882
23,864
2015
CMA CGM
1Q24
2Q24
25,910
GSL Christen
6,840
27,954
2002
Maersk
3Q23
1Q24
35,000
GSL Nicoletta
6,840
28,070
2002
Maersk
3Q24
1Q25
35,750
CMA CGM Berlioz
6,621
26,776
2001
CMA CGM
4Q25
2Q26
37,750
Agios Dimitrios (4)
6,572
24,931
2011
MSC
4Q23
3Q24
20,000
GSL Vinia
6,080
23,737
2004
Maersk
3Q24
2Q25
13,250
GSL Christel Elisabeth
6,080
23,745
2004
Maersk
2Q24
1Q25
13,250
GSL Dorothea
5,992
24,243
2001
Maersk
3Q24
3Q26
18,600 (6)
GSL Arcadia
6,008
24,858
2000
Maersk
2Q24
1Q26
18,600 (6)
GSL Violetta
6,008
24,873
2000
Maersk
4Q24
4Q25
18,600 (6)
GSL Maria
6,008
24,414
2001
Maersk
4Q24
1Q27
18,600 (6)
GSL MYNY
6,008
24,873
2000
Maersk
3Q24
1Q26
18,600 (6)
GSL Melita
6,008
24,848
2001
Maersk
3Q24
3Q26
18,600 (6)
GSL Tegea
5,992
24,308
2001
Maersk
3Q24
3Q26
18,600 (6)
Tasman
5,936
25,010
2000
Maersk
2Q22
4Q23
12,500 (7)
ZIM Europe
5,936
25,010
2000
ZIM
1Q24
2Q24
14,500 (8)
Ian H
5,936
25,128
2000
ZIM
2Q24
4Q24
32,500 (8)
GSL Tripoli
5,470
22,259
2009
Maersk
4Q24
4Q27
36,500 (9)
GSL Kithira
5,470
22,108
2009
Maersk
4Q24
4Q27
36,500 (9)
GSL Tinos
5,470
22,067
2010
Maersk
4Q24
4Q27
36,500 (9)
GSL Syros
5,470
22,098
2010
Maersk
4Q24
4Q27
36,500 (9)
Dolphin II
5,095
20,596
2007
OOCL
1Q25
2Q25
53,500 (10)
Orca I
5,095
20,633
2006
Maersk
2Q24
4Q25
21,000 (11)
Page 7


 
 
Vessel Name
Capacity in TEUs
Lightweight (tons)
Year Built
Charterer
Earliest Charter Expiry Date
Latest Charter Expiry Date (2)
Daily Charter Rate $
               
CMA CGM Alcazar
5,089
20,087
2007
CMA CGM
3Q26
4Q26
35,500
GSL Château d’If
5,089
19,994
2007
CMA CGM
4Q26
1Q27
35,500
GSL Susan
4,363
17,309
2008
CMA CGM
3Q22
4Q22
22,000
CMA CGM Jamaica
4,298
17,272
2006
CMA CGM
3Q22
2Q23
25,350
CMA CGM Sambhar
4,045
17,429
2006
CMA CGM
3Q22
2Q23
25,350
CMA CGM America
4,045
17,428
2006
CMA CGM
3Q22
2Q23
25,350
GSL Rossi
3,421
16,420
2012
Gold Star/ZIM
1Q26
3Q26
38,875 (12)
GSL Alice
3,421
16,543
2014
CMA CGM
1Q23
2Q23
21,500
GSL Eleftheria
3,404
16,642
2013
Maersk
3Q25
4Q25
37,975
GSL Melina
3,404
16,703
2013
Maersk
2Q23
3Q23
24,500
GSL Valerie
2,824
11,971
2005
ZIM
2Q25
3Q25
35,600 (13)
Matson Molokai
2,824
11,949
2007
Matson
2Q25
4Q25
20,250 (14)
GSL Lalo
2,824
11,950
2006
ONE
4Q22
1Q23
18,500
GSL Mercer
2,824
11,970
2007
ONE
4Q24
1Q25
35,750
Athena
2,762
13,538
2003
Hapag-Lloyd
2Q24
3Q24
21,500
GSL Elizabeth
2,741
11,507
2006
ONE
3Q22
1Q23
18,500
 Tbr GSL Chloe
2,546
12,212
2012
ONE
4Q24
1Q25
33,000
GSL Maren
2,546
12,243
2014
Westwood
4Q22
1Q23
19,250
Maira
2,506
11,453
2000
Hapag-Lloyd
1Q23
2Q23
14,450
Nikolas
2,506
11,370
2000
CMA CGM
1Q23
1Q23
16,000
Newyorker
2,506
11,463
2001
CMA CGM
1Q24
3Q24
20,700
Manet
2,272
11,727
2001
OOCL
4Q24
2Q25
32,000
Keta
2,207
11,731
2003
CMA CGM
1Q25
1Q25
25,000
Julie
2,207
11,731
2002
Sea Consortium
1Q23
2Q23
20,000
Kumasi
2,207
11,791
2002
Wan Hai
1Q25
2Q25
38,000
Akiteta (15)
2,207
11,731
2002
OOCL
4Q24
1Q25
32,000
GSL Amstel
1,118
5,167
2008
CMA CGM
3Q23
3Q23
11,900

(1)
Modern design, high reefer capacity, fuel-efficient vessel.
(2)
In many instances charterers have the option to extend a charter beyond the nominal latest expiry date by the amount of time that the vessel was off hire during the course of that charter. This additional charter time (“Offhire Extension”) is computed at the end of the initially contracted charter period. The Latest Charter Expiry Dates shown in this table have been adjusted to reflect offhire accrued up to the date of issuance of this release plus estimated offhire scheduled to occur during the remaining lifetimes of the respective charters. However, as actual offhire can only be calculated at the end of each charter, in some cases actual Offhire Extensions – if invoked by charterers - may exceed the Latest Charter Expiry Dates indicated.
(3)
UASC Al Khor & Maira XL. On November 22, 2021 we announced the forward fixture of these two ships, upon the expiry of their existing charters in the second or third quarters of 2022, to a leading liner operator for approximately five years each at a charter rate of $65,000 per day.
(4)
MSC Qingdao & Agios Dimitrios are fitted with Exhaust Gas Cleaning Systems (“scrubbers”).
(5)
GSL Eleni delivered 2Q2019 and is chartered for five years; GSL Kalliopi (delivered 4Q2019) and GSL Grania (delivered 3Q2019) are chartered for three years plus two successive periods of one year at the option of the charterer. During the option periods the charter rates for GSL Kalliopi and GSL Grania are $18,900 per day and $17,750 per day respectively.
Page 8



(6)
On February 9, 2021 we announced that we had contracted to purchase seven ships of approximately 6,000 TEU each, which have now been delivered. Contract cover for each ship is for a firm period of at least three years from the date each vessel is delivered, with charterers holding a one-year extension option on each charter (at a rate of $12,900 per day), followed by a second option (at a rate of $12,700 per day) with the period determined by - and terminating prior to - each vessel’s 25th year drydocking & special survey.
(7)
Tasman. 12-month extension at charterer’s option is callable in 2Q2022, at an increased rate of $20,000 per day.
(8)
A package agreement with ZIM, for direct charter extensions on two 5,900 TEU ships: Ian H, at a rate of $32,500 per day from May 2021, and ZIM Europe (formerly Dimitris Y), at a rate of $24,250 per day, from May 2022.
(9)
On June 16, 2021 we announced that we had contracted to purchase four ultra-high reefer ships of 5,470 TEU each. These ships delivered in September and October of 2021. Contract cover on each ship is for a firm period of three years at a rate of $36,500 per day, with a period of an additional three years (at $17,250 per day) at charterers’ option.
(10)
Dolphin II. Chartered to OOCL to April 2022 at $24,500 per day; thereafter the rate increased to $53,500 per day.
(11)
Orca I. Chartered at $21,000 per day through to the median expiry of the charter in 2Q2024; thereafter the charterer has the option to charter the vessel for a further 12-14 months at the same rate.
(12)
GSL Rossi. Chartered to Gold Star / ZIM to March 2022 at a rate of $20,000 per day; thereafter the rate increases to an average of $38,875 per day.
(13)
GSL Valerie: chartered to ZIM at $13,250 per day to January 2022; thereafter the rate increased to an average of $35,600 per day-$40,000 for the first 12 months, $36,000 for the next 12 months and $32,000 for the remaining period.
(14)
Matson Molokai. Chartered to Matson at $20,250 per day to May 2022 after which the rate increases to $36,500 per day.
(15)
Akiteta, formerly Marie Delmas. Note that this charter was formerly attributed to Kumasi, but was switched to Akiteta due to vessel positioning and availability.
Page 9


Conference Call and Webcast
Global Ship Lease will hold a conference call to discuss the Company's results for the three months ended March 31, 2022 today, Monday May 9, 2022 at 10:30 a.m. Eastern Time. There are two ways to access the conference call:
(1) Dial-in: (877) 445-2556 or (908) 982-4670; Passcode: 1186251
Please dial in at least 10 minutes prior to 10:30 a.m. Eastern Time to ensure a prompt start to the call.
(2) Live Internet webcast and slide presentation: http://www.globalshiplease.com
If you are unable to participate at this time, a replay of the call will be available through Wednesday, May 25th, 2022 at (855) 859-2056 or (404) 537-3406. Enter the code 1186251 to access the audio replay. The webcast will also be archived on the Company’s website: http://www.globalshiplease.com
Annual Report on Form 20-F
The Company’s Annual Report for 2021 was filed with the Securities and Exchange Commission (the “Commission”) on March 24, 2022. A copy of the report can be found under the Investor Relations section (Annual Reports) of the Company’s website at http://www.globalshiplease.com or on the Commission’s website at www.sec.gov.  Shareholders may request a hard copy of the audited financial statements free of charge by contacting the Company at info@globalshiplease.com or by writing to Global Ship Lease, Inc, care of Global Ship Lease Services Limited, 25 Wilton Road, London SW1V ILW.
About Global Ship Lease
Global Ship Lease is a leading independent owner of containerships with a diversified fleet of mid-sized and smaller containerships. Incorporated in the Marshall Islands, Global Ship Lease commenced operations in December 2007 with a business of owning and chartering out containerships under fixed-rate charters to top tier container liner companies. It was listed on the New York stock Exchange in August 2008.
As at May 8, 2022, Global Ship Lease owned 65 containerships, ranging from 1,118 to 11,040 TEU, with an aggregate capacity of 342,348 TEU. 32 ships are wide-beam Post-Panamax.
Adjusted to include all charters agreed up to May 8, 2022, the average remaining term of the Company’s charters as at March 31, 2022, to the mid-point of redelivery, including options under the Company’s control and other than if a redelivery notice has been received, was 2.4 years on a TEU-weighted basis. Contracted revenue on the same basis was $1.67 billion. Contracted revenue was $1.92 billion, including options under charterers’ control and with latest redelivery date, representing a weighted average remaining term of 3.0 years.
Page 10



Reconciliation of Non-U.S. GAAP Financial Measures
A. Adjusted EBITDA
Adjusted EBITDA represents net income available to common shareholders before interest income and expense, earnings allocated to preferred shares, income taxes, depreciation and amortization of drydocking net costs, gains or losses on the sale of vessels, amortization of intangible liabilities, charges for share based compensation, fair value adjustment on derivatives and impairment losses.  Adjusted EBITDA is a non-U.S. GAAP quantitative measure used to assist in the assessment of our ability to generate cash from our operations. We believe that the presentation of Adjusted EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. Adjusted EBITDA is not defined in U.S. GAAP and should not be considered to be an alternative to net income or any other financial metric required by such accounting principles. Our use of Adjusted EBITDA may vary from the use of similarly titled measures by others in our industry.
Adjusted EBITDA is presented herein both on a historic basis and on a forward-looking basis in certain instances. We do not provide a reconciliation of such forward looking non-U.S. GAAP financial measure to the most directly comparable U.S. GAAP measure because such U.S. GAAP financial measure on a forward-looking basis is not available to us without unreasonable effort.
ADJUSTED EBITDA - UNAUDITED

(thousands of U.S. dollars)

      
Three
   
Three
 
      
months
   
months
 
      
ended
   
ended
 
      
March 31,
   
March 31,
 
     
2022
   
2021
 
               
Net income available to Common Shareholders
   
70,182
     
4,159
 
                   
Adjust:
Depreciation and amortization
   
19,852
     
12,383
 

Amortization of intangible liabilities
   
(12,855
)
   
(502
)

Fair value adjustment on derivative asset
   
(4,564
)
   
-
 

Interest income
   
(250
)
   
(243
)

Interest expense
   
18,735
     
25,256
 

Share based compensation
   
1,054
     
1,704
 

Earnings allocated to preferred shares
   
2,384
     
1,484
 

                 
Adjusted EBITDA
     
94,538
     
44,241
 


Page 11



B. Normalized net income
Normalized net income represents net income available to common shareholders adjusted for impairment charges, the premium paid on redemption of our 2022 Notes together with the associated accelerated amortization of deferred financing costs and original issue discount, prepayment fees on repayment of credit facilities, accelerated stock based compensation expense due to vesting and new awards of fully vested incentive shares, fair value adjustment on derivatives and gains or losses on sale of vessels. Normalized net income is a non-U.S. GAAP quantitative measure which we believe will assist investors and analysts who often adjust reported net income for items that do not affect operating performance or operating cash generated. Normalized net income is not defined in U.S. GAAP and should not be considered to be an alternate to net income or any other financial metric required by such accounting principles. Our use of Normalized net income may vary from the use of similarly titled measures by others in our industry.
NORMALIZED NET INCOME

(thousands of U.S. dollars)

      
Three
   
Three
 
      
months
   
months
 
      
ended
   
ended
 
      
March 31,
   
March 31,
 
     
2022
   
2021
 
               
Net income available to Common Shareholders
   
70,182
     
4,159
 
                   
Adjust:
Fair value adjustment on derivative asset
   
(4,564
)
   
-
 

Prepayment fee on repayment of Blue Ocean Credit Facility
   
3,968
     
1,618
 

Accelerated stock based compensation expense due to vesting and new awards of fully vested incentive shares
   
-
     
1,346
 

Premium paid on redemption of 2022 Notes
   
-
     
5,764
 

Accelerated write off of deferred financing charges related to redemption of 2022 Notes
   
-
     
3,745
 

Accelerated write off of deferred financing charges related to full repayment of Blue Ocean Credit Facility
   
83
     
-
 

Accelerated write off of original issue discount related to redemption of 2022 Notes
   
-
     
1,133
 

                 
Normalized net income
     
69,669
     
17,765
 


Page 12



C. Normalized Earnings per Share
Normalized Earnings per Share represents Earnings per Share adjusted for impairment charges, the premium paid on redemption of our 2022 Notes together with the associated accelerated amortization of deferred financing costs and original issue discount, prepayment fees on repayment of credit facilities, accelerated stock based compensation expense due to vesting and new awards of fully vested incentive shares, fair value adjustment on derivatives and gains or losses on sale of vessels. Normalized Earnings per Share is a non-U.S. GAAP quantitative measure which we believe will assist investors and analysts who often adjust reported Earnings per Share for items that do not affect operating performance or operating cash generated. Normalized Earnings per Share is not defined in U.S. GAAP and should not be considered to be an alternate to Earnings per Share as reported or any other financial metric required by such accounting principles. Our use of Normalized Earnings per Share may vary from the use of similarly titled measures by others in our industry.
NORMALIZED EARNINGS PER SHARE

   
Three
   
Three
 
   
months
   
months
 
   
ended
   
ended
 
   
March 31,
   
March 31,
 
   
2022
   
2021
 
             
EPS as reported (USD)
   
1.93
     
0.13
 
Normalized net income adjustments-Class A common shares (in thousands USD)
   
(513
)
   
13,606
 
Weighted average number of Class A Common shares
   
36,401,764
     
31,965,287
 
Adjustment on EPS (USD)
   
(0.02
)
   
0.43
 
Normalized EPS (USD)
   
1.91
     
0.56
 

Page 13



Safe Harbor Statement
This communication contains forward-looking statements. Forward-looking statements provide Global Ship Lease's current expectations or forecasts of future events. Forward-looking statements include statements about Global Ship Lease's expectations, beliefs, plans, objectives, intentions, assumptions and other statements that are not historical facts. Words or phrases such as "anticipate," "believe," "continue," "estimate," "expect," "intend," "may," "ongoing," "plan," "potential," "predict," “should,” "project," "will" or similar words or phrases, or the negatives of those words or phrases, may identify forward-looking statements, but the absence of these words does not necessarily mean that a statement is not forward-looking. These forward-looking statements are based on assumptions that may be incorrect, and Global Ship Lease cannot assure you that these projections included in these forward-looking statements will come to pass. Actual results could differ materially from those expressed or implied by the forward-looking statements as a result of various factors.
The risks and uncertainties include, but are not limited to:

future operating or financial results;

expectations regarding the future growth of the container shipping industry, including the rates of annual demand and supply growth;

geo-political events such as the conflict in Ukraine;

the length and severity of the ongoing outbreak of the novel coronavirus (COVID-19) around the world and governmental responses thereto;

the financial condition of our charterers, particularly CMA CGM, our principal charterer and main source of operating revenue, and their ability to pay charterhire in accordance with the charters;

Global Ship Lease’s financial condition and liquidity, including its level of indebtedness or ability to obtain additional financing to fund capital expenditures, ship acquisitions and other general corporate purposes;

Global Ship Lease’s ability to meet its financial covenants and repay its credit facilities;

Global Ship Lease’s expectations relating to dividend payments and forecasts of its ability to make such payments including the availability of cash and the impact of constraints under its credit facilities;

risks relating to the acquisition of Poseidon Containers and Global Ship Lease’s ability to realize the anticipated benefits of the acquisition;

future acquisitions, business strategy and expected capital spending;

operating expenses, availability of crew, number of off-hire days, drydocking and survey requirements and insurance costs;

general market conditions and shipping industry trends, including charter rates and factors affecting supply and demand;

assumptions regarding interest rates and inflation;

changes in the rate of growth of global and various regional economies;
Page 14




risks incidental to ship operation, including piracy, discharge of pollutants and ship accidents and damage including total or constructive total loss;

estimated future capital expenditures needed to preserve its capital base;

Global Ship Lease’s expectations about the availability of ships to purchase, the time that it may take to construct new ships, or the useful lives of its ships;

Global Ship Lease’s continued ability to enter into or renew long-term, fixed-rate charters or other ship employment arrangements;

Global Ship Lease’s ability to realize expected benefits from its acquisition of secondhand vessels;

the continued performance of existing long-term, fixed-rate time charters;

Global Ship Lease’s ability to capitalize on its management’s and board of directors’ relationships and reputations in the containership industry to its advantage;

changes in governmental and classification societies’ rules and regulations or actions taken by regulatory authorities;

expectations about the availability of insurance on commercially reasonable terms;

unanticipated changes in laws and regulations including taxation;

potential liability from future litigation.
Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Global Ship Lease's actual results could differ materially from those anticipated in forward-looking statements for many reasons specifically as described in Global Ship Lease's filings with the U.S. Securities and Exchange Commission (the “SEC”). Accordingly, you should not unduly rely on these forward-looking statements, which speak only as of the date of this communication.
Global Ship Lease undertakes no obligation to publicly revise any forward-looking statement to reflect circumstances or events after the date of this communication or to reflect the occurrence of unanticipated events. You should, however, review the factors and risks Global Ship Lease describes in the reports it will file from time to time with the SEC after the date of this communication.

Page 15


Global Ship Lease, Inc.

Interim Unaudited Condensed Consolidated Balance Sheets

(Expressed in thousands of U.S. dollars except share data)


   
March 31, 2022
   
December 31, 2021
 
ASSETS
           
CURRENT ASSETS
           
Cash and cash equivalents
 
$
88,485
   
$
67,280
 
Time deposits
   
7,900
     
7,900
 
Restricted cash
   
21,325
     
24,894
 
Accounts receivable, net
   
3,000
     
3,220
 
Inventories
   
10,985
     
11,410
 
Prepaid expenses and other current assets
   
23,082
     
25,224
 
Derivative assets
   
9,364
     
533
 
Due from related parties
   
4,394
     
2,897
 
Total current assets
 
$
168,535
   
$
143,358
 
NON-CURRENT ASSETS
               
Vessels in operation
 
$
1,669,771
   
$
1,682,816
 
Advances for vessels acquisitions and other additions
   
6,712
     
6,139
 
Deferred charges, net
   
44,174
     
37,629
 
Other non-current assets
   
18,207
     
14,010
 
Derivative assets, net of current portion
   
35,079
     
6,694
 
Restricted cash, net of current portion
   
104,657
     
103,468
 
Total non-current assets
   
1,878,600
     
1,850,756
 
TOTAL ASSETS
 
$
2,047,135
   
$
1,994,114
 
LIABILITIES AND SHAREHOLDERS' EQUITY
               
CURRENT LIABILITIES
               
Accounts payable
 
$
12,928
   
$
13,159
 
Accrued liabilities
   
28,130
     
32,249
 
Current portion of long-term debt
   
210,767
     
190,316
 
Current portion of deferred revenue
   
7,249
     
8,496
 
Due to related parties
   
912
     
543
 
Total current liabilities
 
$
259,986
   
$
244,763
 
LONG-TERM LIABILITIES
               
Long-term debt, net of current portion and deferred financing costs
 
$
851,780
   
$
880,134
 
Intangible liabilities-charter agreements
   
42,521
     
55,376
 
Deferred revenue, net of current portion
   
101,033
     
101,288
 
Total non-current liabilities
   
995,334
     
1,036,798
 
Total liabilities
 
$
1,255,320
   
$
1,281,561
 
Commitments and Contingencies
               
SHAREHOLDERS' EQUITY
               
Class A common shares - authorized 214,000,000 shares with a $0.01 par value 36,911,392 shares issued and outstanding (2021 – 36,464,109 shares)
   
369
     
365
 
Series B Preferred Shares - authorized 44,000 shares with a $0.01 par value 43,592 shares issued and outstanding (2021 – 43,592 shares)
   
-
     
-
 
Additional paid in capital
   
699,513
     
698,463
 
Retained earnings
   
74,423
     
13,498
 
Accumulated other comprehensive income
   
17,510
     
227
 
Total shareholders' equity
   
791,815
     
712,553
 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
 
$
2,047,135
   
$
1,994,114
 

Page 16



Global Ship Lease, Inc.

Interim Unaudited Condensed Consolidated Statements of Income

(Expressed in thousands of U.S. dollars)



   
Three months ended March 31,
 
   
2022
   
2021
 
OPERATING REVENUES
           
Time charter revenues (include related party revenues of $39,663 and $32,195 for each of the three month periods ended March 31, 2022 and 2021, respectively)
 
$
140,776
   
$
72,478
 
Amortization of intangible liabilities-charter agreements (include related party amortization of intangible liabilities-charter agreements of $3,291 and $502 for each of the three month periods ended March 31, 2022 and 2021, respectively)
   
12,855
     
502
 
Total Operating Revenues
   
153,631
     
72,980
 
                 
OPERATING EXPENSES
               
Vessel operating expenses (include related party vessel operating expenses of $4,379 and $3,290 for each of the three month periods ended March 31, 2022 and 2021, respectively)
   
39,444
     
24,286
 
Time charter and voyage expenses (include related party time charter and voyage expenses of $1,477 and $689 for each of the three month periods ended March 31, 2022 and 2021, respectively)
   
4,357
     
1,765
 
Depreciation and amortization
   
19,852
     
12,383
 
General and administrative expenses
   
3,862
     
4,274
 
Operating Income
   
86,116
     
30,272
 
 
               
NON-OPERATING INCOME/(EXPENSES)
               
Interest income
   
250
     
243
 
Interest and other finance expenses (include $nil and $5,764 Notes premium for each of the three month periods ended March 31, 2022 and 2021, respectively)
   
(18,735
)
   
(25,256
)
Other income, net
   
371
     
384
 
Fair value adjustment on derivative asset
   
4,564
     
-
 
Total non-operating expenses
   
(13,550
)
   
(24,629
)
Income before income taxes
   
72,566
     
5,643
 
Income taxes
   
-
     
-
 
Net Income
 
$
72,566
   
$
5,643
 
Earnings allocated to Series B Preferred Shares
   
(2,384
)
   
(1,484
)
Net Income available to Common Shareholders
 
$
70,182
   
$
4,159
 


Page 17


Global Ship Lease, Inc.

Interim Unaudited Condensed Consolidated Statements of Cash Flows

(Expressed in thousands of U.S. dollars)


   
Three months ended March 31,
 
   
2022
   
2021
 
Cash flows from operating activities:
           
Net income
 
$
72,566
   
$
5,643
 
Adjustments to reconcile net income to net cash provided by operating activities:
               
Depreciation and amortization
 
$
19,852
   
$
12,383
 
Amortization of derivative assets’ premium
   
1
     
-
 
Amortization of deferred financing costs
   
1,579
     
4,406
 
Amortization of original issue (premium)/discount on repurchase of notes
   
(120
)
   
7,044
 
Amortization of intangible liabilities-charter agreements
   
(12,855
)
   
(502
)
Fair value adjustment on derivative asset
   
(4,564
)
   
-
 
Share based compensation
   
1,054
     
1,704
 
Changes in operating assets and liabilities:
               
Increase in accounts receivable and other assets
 
$
(1,835
)
 
$
(3,865
)
Decrease in inventories
   
425
     
337
 
Increase in derivative assets
   
(15,370
)
   
-
 
Decrease in accounts payable and other liabilities
   
(5,854
)
   
(6,066
)
Increase in related parties' balances, net
   
(1,128
)
   
(1,235
)
(Decrease)/increase in deferred revenue
   
(1,502
)
   
48
 
Unrealized foreign exchange loss
   
3
     
-
 
Net cash provided by operating activities
 
$
52,252
   
$
19,897
 
Cash flows from investing activities:
               
Cash paid for vessel expenditures
 
$
(1,987
)
   
(1,905
)
Advances for vessel acquisitions and other additions
   
(1,122
)
   
(248
)
Cash paid for drydockings
   
(9,315
)
   
(1,587
)
Net cash used in investing activities
 
$
(12,424
)
 
$
(3,740
)
Cash flows from financing activities:
               
Proceeds from issuance of 2024 Notes
 
$
-
   
$
15,096
 
Repurchase of 2022 Notes, including premium
   
-
     
(239,183
)
Proceeds from drawdown of credit facilities and sale and leaseback
   
60,000
     
236,200
 
Repayment of credit facilities and sale and leaseback
   
(40,911
)
   
(30,817
)
Repayment of refinanced debt
   
(26,205
)
   
-
 
Deferred financing costs paid
   
(2,246
)
   
(4,236
)
Net proceeds from offering of Class A common shares, net of offering costs
   
-
     
67,984
 
Proceeds from offering of Series B preferred shares, net of offering costs
   
-
     
10,696
 
Class A common shares-dividend paid
   
(9,257
)
   
-
 
Series B Preferred Shares-dividend paid
   
(2,384
)
   
(1,484
)
Net cash (used in)/provided by financing activities
 
$
(21,003
)
 
$
54,256
 
Net increase in cash and cash equivalents and restricted cash
   
18,825
     
70,413
 
Cash and cash equivalents and restricted cash at beginning of the period
   
195,642
     
92,262
 
Cash and cash equivalents and restricted cash at end of the period
 
$
214,467
   
$
162,675
 
Supplementary Cash Flow Information:
               
Cash paid for interest
 
$
12,589
   
$
14,469
 
Non-cash investing activities:
               
Unpaid drydocking expenses
   
5,903
     
949
 
Unpaid vessel expenditures
   
8,201
     
2,461
 
Unpaid advances for vessel acquisitions and other additions
   
890
     
-
 
Non-cash financing activities:
               
Unpaid offering costs
   
-
     
226
 
Unrealized gain on derivative assets
   
17,282
     
-
 


Page 18

Exhibit 99.2









GLOBAL SHIP LEASE, INC.

INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

PERIOD ENDED MARCH 31, 2022





GLOBAL SHIP LEASE, INC.
 
 
 
 
 
 
Index
  

Page
 
INTERIM UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS AS AT MARCH 31, 2022 AND DECEMBER 31, 2021
  
 
F-1
 
INTERIM UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2022 AND 2021
  
 
F-2
 
INTERIM UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2022 AND 2021
   
F-3
 
INTERIM UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2022 AND 2021
  
 
F-4
 
INTERIM UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY FOR THE THREE MONTHS ENDED MARCH 31, 2022 AND 2021
  
 
F-5
 
NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
    F-6
 
 



Global Ship Lease, Inc.

Interim Unaudited Condensed Consolidated Balance Sheets

(Expressed in thousands of U.S. dollars except share data)

             
As of
 
   
Note
   
March 31,
2022
   
December 31,
2021
 
ASSETS
                 
CURRENT ASSETS
                 
Cash and cash equivalents
       
$
88,485
   
$
67,280
 
Time deposits
         
7,900
     
7,900
 
Restricted cash
         
21,325
     
24,894
 
Accounts receivable, net
         
3,000
     
3,220
 
Inventories
         
10,985
     
11,410
 
Prepaid expenses and other current assets
         
23,082
     
25,224
 
Derivative assets
   
5
     
9,364
     
533
 
Due from related parties
   
7
     
4,394
     
2,897
 
Total current assets
         
$
168,535
   
$
143,358
 
NON - CURRENT ASSETS
                       
Vessels in operation
   
3
   
$
1,669,771
   
$
1,682,816
 
Advances for vessels acquisitions and other additions
   
3
     
6,712
     
6,139
 
Deferred charges, net
           
44,174
     
37,629
 
Other non-current assets
   
2g

   
18,207
     
14,010
 
Derivative assets, net of current portion
   
5
     
35,079
     
6,694
 
Restricted cash, net of current portion
           
104,657
     
103,468
 
Total non - current assets
           
1,878,600
     
1,850,756
 
TOTAL ASSETS
         
$
2,047,135
   
$
1,994,114
 
LIABILITIES AND SHAREHOLDERS' EQUITY
                       
CURRENT LIABILITIES
                       
Accounts payable
         
$
12,928
   
$
13,159
 
Accrued liabilities
           
28,130
     
32,249
 
Current portion of long - term debt
   
6
     
210,767
     
190,316
 
Current portion of deferred revenue
           
7,249
     
8,496
 
Due to related parties
   
7
     
912
     
543
 
Total current liabilities
           
259,986
     
244,763
 
LONG - TERM LIABILITIES
                       
Long - term debt, net of current portion and deferred financing costs
   
6
   
$
851,780
   
$
880,134
 
Intangible liabilities - charter agreements
   
4
     
42,521
     
55,376
 
Deferred revenue, net of current portion
           
101,033
     
101,288
 
Total non - current liabilities
           
995,334
     
1,036,798
 
Total liabilities
         
$
1,255,320
   
$
1,281,561
 
Commitments and Contingencies
   
8
     
     
 
SHAREHOLDERS' EQUITY
                       
Class A common shares – authorized 214,000,000 shares with a $0.01 par value 36,911,392 shares issued and outstanding (2021 – 36,464,109 shares)
   
9
   
$
369
   
$
365
 
Series B Preferred Shares – authorized 44,000 shares with a $0.01 par value 43,592 shares issued and outstanding (2021 – 43,592 shares)
   
9
     
     
 
Additional paid in capital
           
699,513
     
698,463
 
Retained Earnings
           
74,423
     
13,498
 
Accumulated other comprehensive income
           
17,510
     
227
 
Total shareholders' equity
           
791,815
     
712,553
 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
         
$
2,047,135
   
$
1,994,114
 







See accompanying notes to interim unaudited condensed consolidated financial statements
F-1

Global Ship Lease, Inc.

Interim Unaudited Condensed Consolidated Statements of Income

(Expressed in thousands of U.S. dollars except share and per share data)








         
Three months ended
March 31,
 
   
Note
   
2022
   
2021
 
OPERATING REVENUES
                 
Time charter revenues (include related party revenues of $39,663 and $32,195 for each of the periods ended March 31, 2022 and 2021, respectively)
         
140,776
     
72,478
 
Amortization of intangible liabilities-charter agreements (includes related party amortization of intangible liabilities-charter agreements of $3,291 and $502 for each of the periods ended March 31, 2022 and 2021, respectively)
   
4
     
12,855
     
502
 
Total Operating Revenues
           
153,631
     
72,980
 
                         
OPERATING EXPENSES
                       
Vessel operating expenses (include related party vessel operating expenses of $4,379 and $3,290 for each of the periods ended March 31, 2022 and 2021, respectively)
   
7
     
39,444
     
24,286
 
Time charter and voyage expenses (include related party time charter and voyage expenses of $1,477 and $689 for each of the periods ended March 31, 2022 and 2021, respectively)
   
7
     
4,357
     
1,765
 
Depreciation and amortization
   
3
     
19,852
     
12,383
 
General and administrative expenses
           
3,862
     
4,274
 
Operating Income
           
86,116
     
30,272
 
                         
NON-OPERATING INCOME/(EXPENSES)
                       
Interest income
           
250
     
243
 
Interest and other finance expenses (include $nil and $5,764 Notes premium for each of the periods ended March 31, 2022 and 2021, respectively)
           
(18,735
)
   
(25,256
)
Other income, net
           
371
     
384
 
Fair value adjustment on derivative asset
   
5
   
$
4,564
     
 
Total non-operating expenses
           
(13,550
)
   
(24,629
)
Income before income taxes
           
72,566
     
5,643
 
Income taxes
           
     
 
Net Income
           
72,566
     
5,643
 
Earnings allocated to Series B Preferred Shares
   
9
     
(2,384
)
   
(1,484
)
Net Income available to Common Shareholders
         
$
70,182
   
$
4,159
 
Earnings per Share
                       
                         
Weighted average number of Class A common shares outstanding
                       
Basic
   
11
     
36,401,764
     
31,965,287
 
Diluted
   
11
     
36,591,514
     
32,019,281
 
                         
Net Earnings per Class A common share
                       
Basic
   
11
   
$
1.93
   
$
0.13
 
Diluted
   
11
   
$
1.92
   
$
0.13
 






See accompanying notes to interim unaudited condensed consolidated financial statements
F-2









Global Ship Lease, Inc.

Interim Unaudited Condensed Consolidated Statements of Comprehensive Income

(Expressed in thousands of U.S. dollars)


         
Three months ended
March 31,
 
   
Note
   
2022
   
2021
 
Net Income available to Common Shareholders
         
70,182
     
4,159
 
Other comprehensive income:
                     
Cash Flow Hedge:
                     
Unrealized gain on derivative assets
   
5
     
17,282
     
 
Amount realized and reclassified to earnings
           
1
     
 
Total Other Comprehensive Income
           
17,283
     
 
Total Comprehensive Income
           
87,465
     
4,159
 





See accompanying notes to interim unaudited condensed consolidated financial statements



F-3



Global Ship Lease, Inc.

Interim Unaudited Condensed Consolidated Statements of Cash Flows

(Expressed in thousands of U.S. dollars)



         
Three months ended
March 31,
 
   
Note
   
2022
   
2021
 
Cash flows from operating activities:
                 
Net Income
         
72,566
     
5,643
 
Adjustments to reconcile net income to net cash provided by operating activities:
                     
Depreciation and amortization
   
3
     
19,852
     
12,383
 
Amortization of derivative assets’ premium
           
1
     
 
Amortization of deferred financing costs
   
6
     
1,579
     
4,406
 
Amortization of original issue (premium)/discount on repurchase of notes
           
(120
)
   
7,044
 
Amortization of intangible liabilities - charter agreements
   
4
     
(12,855
)
   
(502
)
Fair value adjustment on derivative asset
   
5
     
(4,564
)
   
 
Share based compensation
   
10
     
1,054
     
1,704
 
Changes in operating assets and liabilities:
                       
Increase in accounts receivable and other assets
           
(1,835
)
   
(3,865
)
Decrease in inventories
           
425
     
337
 
Increase in derivative assets
   
5
     
(15,370
)
   
 
Decrease in accounts payable and other liabilities
           
(5,854
)
   
(6,066
)
Increase in related parties' balances, net
   
7
     
(1,128
)
   
(1,235
)
(Decrease)/increase in deferred revenue
           
(1,502
)
   
48
 
Unrealized foreign exchange loss
           
3
     
 
Net cash provided by operating activities
         
$
52,252
   
$
19,897
 
Cash flows from investing activities:
                       
Cash paid for vessel expenditures
           
(1,987
)
   
(1,905
)
Advances for vessels acquisitions and other additions
           
(1,122
)
   
(248
)
Cash paid for drydockings
           
(9,315
)
   
(1,587
)
Net cash used in investing activities
         
$
(12,424
)
 
$
(3,740
)
Cash flows from financing activities:
                       
Proceeds from issuance of 2024 Notes
   
6
     
     
15,096
 
Repurchase of 2022 Notes, including premium
   
6
     
     
(239,183
)
Proceeds from drawdown of credit facilities and sale and leaseback
   
6
     
60,000
     
236,200
 
Repayment of credit facilities and sale and leaseback
   
6
     
(40,911
)
   
(30,817
)
Repayment of refinanced debt
   
6
     
(26,205
)
   
 
Deferred financing costs paid
           
(2,246
)
   
(4,236
)
Net proceeds from offering of Class A common shares, net of offering costs
   
9
     
     
67,984
 
Proceeds from offering of Series B preferred shares, net of offering costs
   
9
     
     
10,696
 
Class A common shares - dividend paid
   
9
     
(9,257
)
   
 
Series B Preferred Shares - dividend paid
   
9
     
(2,384
)
   
(1,484
)
Net cash (used in)/provided by financing activities
         
$
(21,003
)
 
$
54,256
 
Net increase in cash and cash equivalents and restricted cash
           
18,825
     
70,413
 
Cash and cash equivalents and restricted cash at beginning of the period
           
195,642
     
92,262
 
Cash and cash equivalents and restricted cash at end of the period
         
$
214,467
   
$
162,675
 
                         
Supplementary Cash Flow Information:
                       
Cash paid for interest
         
$
12,589
   
$
14,469
 
Non-cash investing activities:
                       
Unpaid drydocking expenses
           
5,903
     
949
 
Unpaid vessel expenditures
           
8,201
     
2,461
 
Unpaid advances for vessels' acquisitions and other additions
           
890
     
 
Non-cash financing activities:
                       
Unpaid offering costs
           
     
226
 
Unrealized gain on derivative assets
           
17,282
     
 


See accompanying notes to interim unaudited condensed consolidated financial statements
F-4

Global Ship Lease, Inc.

Interim Unaudited Condensed Consolidated Statements of Changes in Shareholders’ Equity

(Expressed in thousands of U.S. dollars except share data)




   
Number of Common Shares at par value $0.01
   
Number of Series B Preferred Shares at par value $0.01
   
Number of Series C Preferred Shares at par value $0.01
   
Common Shares
   
Series B Preferred Shares
   
Series C Preferred Shares
   
Additional paid-in capital
   
(Accumulated Deficit)/Retained Earnings
   
Accumulated Other Comprehensive Income
   
Total Shareholders' Equity
 
Balance
at December 31, 2020
   
17,741,008
     
22,822
     
250,000
   
$
177
   
$
   
$
3
   
$
586,355
   
$
(121,794
)
 
$
   
$
464,741
 
Issuance of Restricted Stock Units (Note 10)
   
45,313
     
     
     
     
     
     
1,704
     
     
     
1,704
 
Issuance of Class A common shares, net of offering costs
   
5,541,959
     
     
     
55
     
     
     
67,703
     
     
     
67,758
 
Conversion of Series C Preferred shares to Class A common shares (Note 9)
   
12,955,188
     
     
(250,000
)
   
130
     
     
(3
)
   
(127
)
   
     
     
 
Net Income for the period
   
     
     
     
     
     
     
     
5,643
     
     
5,643
 
Series B Preferred Shares dividend (Note 9)
   
     
     
     
     
     
     
     
(1,484
)
   
     
(1,484
)
Issuance of Series B Preferred shares, net of offering costs
   
     
4,356
     
     
     
     
     
10,696
     
     
     
10,696
 
Balance
at March 31, 2021
   
36,283,468
     
27,178
     
   
$
362
   
$
   
$
   
$
666,331
   
$
(117,635
)
 
$
   
$
549,058
 
                                                                                 
Balance
at December 31, 2021
   
36,464,109
     
43,592
     
   
$
365
   
$
   
$
   
$
698,463
   
$
13,498
   
$
227
   
$
712,553