Global Ship: A 6% Yield With Further To Go

Global Ship Lease is rated a buy, with a $50 fair value target and a current 6% yield, supported by long-term, fixed-rate charters. GSL’s recent fleet renewal—15 newbuilds with attached charters—secures profitability, with new vessels generating up to 90% of cost in 8 years. The company maintains a strong balance sheet, holding $655M in cash and $658M in debt, with the potential to be net cash as early as next quarter. I anticipate a dividend increase to at least $0.75/quarter after Q3 earnings, with continued earnings visibility through 2027 and prudent capital allocation.