TRITON INTERNATIONAL REPORTS THIRD QUARTER 2021 RESULTS AND

RAISES QUARTERLY DIVIDEND

Hamilton, Bermuda - October 26, 2021 - Triton International Limited (NYSE: TRTN) ("Triton")

Highlights:

  • Net income attributable to common shareholders for the three months ended September 30, 2021 was $123.0 million or $1.83 per diluted share, which includes $42.7 million of make-whole and other debt termination costs primarily related to the prepayment of $648.9 million of senior secured institutional notes.
  • Adjusted net income was $163.8 million or $2.43 per diluted share, an increase of 113.2% from the third quarter of 2020 and 13.6% from the second quarter of 2021.
  • Trade volumes remained strong in the third quarter and continue to drive exceptional container demand and lease activity.
  • On October 14, 2021, Triton announced the completion of its capital structure transition toward unsecured investment grade financing, which will lead to further financing and market advantages.
  • Triton repurchased 0.4 million common shares during the third quarter, and has repurchased an additional 0.2 million common shares through October 22, 2021. Triton increased its share repurchase authorization to $200 million.
  • Triton announced a 14% increase in its quarterly common share dividend to $0.65 per share payable on December 23, 2021 to shareholders of record as of December 9, 2021.

Financial Results

The following table summarizes Triton's selected key financial information for the three and nine months ended September 30, 2021 and 2020 and the three months ended June 30, 2021.

(in millions, except per share data)

Three Months Ended,

Nine Months Ended,

September 30,

June 30, 2021

September 30,

September 30,

September 30,

2021

2020

2021

2020

Total leasing revenues

$400.2

$369.8

$327.8

$1,116.7

$970.6

GAAP

Net income attributable to common

$123.0

$54.7

$45.9

$307.1

$173.2

shareholders

Net income per share - Diluted

$1.83

$0.81

$0.67

$4.57

$2.48

Non-GAAP(1)

Adjusted net income

$163.8

$144.2

$78.1

$436.6

$205.2

Adjusted net income per share - Diluted

$2.43

$2.14

$1.14

$6.49

$2.93

Return on equity (2)

29.4 %

26.6 %

15.8 %

27.1 %

13.6 %

  1. Refer to the "Use of Non-GAAP Financial Items" and "Non-GAAP Reconciliations of Adjusted Net Income" set forth below.
  2. Refer to the "Calculation of Return on Equity" set forth below.

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Operating Performance

"Triton achieved record performance again in the third quarter of 2021," commented Brian M. Sondey, Chief Executive Officer of Triton. "We generated $2.43 of Adjusted earnings per share, an increase of 13.6% from the second quarter. The sequential increase in earnings was primarily driven by an increase in our leasing margin due to our strong leasing activity and a reduction in our average effective interest rate. We also achieved an annualized Return on equity of 29.4%."

"Triton's outstanding results in the third quarter reflect our success in capturing the many opportunities presented by very strong market conditions. Trade volumes remain strong and we continue to see incremental demand for containers due to operational disruptions that are slowing our customers' container turn-times. Our utilization increased to 99.6% as of September 30, 2021 and currently remains at this level. New container prices and market lease rates remained near record levels in the third quarter. Our average selling prices for used dry containers also remained exceptionally high, allowing us to generate sizable disposal gains despite very low off-hire and disposal volumes."

"Triton has invested heavily in new containers this year to support our customers. Shipping lines have added record numbers of new containers to their fleets to meet the demands created by the strong trade volumes and operational challenges, and Triton has secured a meaningful share of leasing transactions due to our industry-leading supply capability and our strong reputation for reliability. Triton has purchased over $3.4 billion of containers for delivery in 2021. $1.0 billion of these containers were placed on-hire during the third quarter, and $2.7 billion have been put on-hire through September 30, 2021. Further container orders in the third quarter were limited as delivery timing pushed past the peak season, but we estimate that our existing orders will translate to nearly 30% asset growth for Triton in 2021."

"Triton is highly focused on locking-inlong-term benefits from the exceptional current environment. The average lease duration for containers ordered in 2021 is 13 years and the overall average remaining duration of our long-term lease portfolio has extended to 59 months. The very large block of new containers on attractively priced long-term leases and extended lease durations for our container fleet will provide strong foundations to our profitability and cash flow for years to come."

"Triton recently announced that we successfully transitioned our capital structure toward unsecured investment grade financing. We anticipate the unsecured investment grade financing market will provide more financial flexibility and greater access to deep and efficient capital. As part of this transition, we have prepaid the remaining institutional notes and incurred a charge of $42.7 million in the third quarter, most of which we expect to recover over the next several years. These financing benefits should further extend the scale, cost, and capability advantages we have in our market."

Outlook

Mr. Sondey continued, "We have a significant amount of momentum as we head toward the end of the year, and we have made durable enhancements to our business that will support our financial performance into the longer term. Our customers are anticipating elevated trade volumes and operational challenges will extend well into 2022. New container prices, used container prices and market lease rates remain near record levels, and all of our key performance metrics are exceptionally strong. We have added over $4.0 billion of assets since the summer of 2020 on high-value, very long-duration leases which has created a strong and lasting foundation for our cash flow. We anticipate returning to more normal levels of investment now that we are past the peak shipping season, and expect to shift some of our strong cash flow to other drivers of shareholder value. We are increasing our quarterly dividend by 14% which follows a 10% dividend increase in October of 2020, and we have increased our share repurchase authorization to $200 million. These capital actions reflect the significant growth and durability of our earnings as we have locked in the benefits of the current market conditions with high value, long duration leases."

"We expect our Adjusted EPS in the fourth quarter of 2021 will increase slightly from the record level we achieved in the third quarter. We expect our leasing margin will continue to increase due to ongoing pick up activity and as we benefit from a full quarter of revenue from the large number of containers picked-up

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during the third quarter. We will also benefit from a lower average effective interest rate resulting from the prepayment of the remaining institutional notes. We expect this increase in leasing margin will be partially offset by lower disposal gains driven by very low drop-off and disposal volumes. Looking further forward, we expect our profitability and cash flows will remain at very high levels due to the durable benefits from our strong leasing activity this year, and we expect our net book value per share will increase rapidly due to our strong return on equity."

Common Share Dividends

Triton's Board of Directors has declared a $0.65 per share quarterly cash dividend on its issued and outstanding common shares, payable on December 23, 2021 to shareholders of record at the close of business on December 9, 2021.

Share Repurchase Update

Triton repurchased 0.4 million common shares in the third quarter of 2021, and repurchased an additional

0.2 million common shares through October 22, 2021. Triton's Board of Directors has increased its share repurchase authorization to $200 million.

Preferred Shares

Triton issued $175.0 million of Series E perpetual preference shares at a dividend rate of 5.750% on August 18, 2021.

The Company's Board of Directors also declared a cash dividend payable on December 15, 2021 to holders of record at the close of business on December 8, 2021 on its issued and outstanding preferred shares as follows:

Preferred Share Series

Dividend Rate

Dividend Per Share

Series A Preferred Shares (NYSE:TRTNPRA)

8.500%

$0.5312500

Series B Preferred Shares (NYSE:TRTNPRB)

8.000%

$0.5000000

Series C Preferred Shares (NYSE:TRTNPRC)

7.375%

$0.4609375

Series D Preferred Shares (NYSE:TRTNPRD)

6.875%

$0.4296875

Series E Preferred Shares (NYSE:TRTNPRE)

5.750%

$0.3593750

2021 Investor Day

Triton will be hosting a Virtual Investor Day beginning at 10:30 a.m. (New York time) on Wednesday, November 17, 2021. During the event, the Triton management team will provide a detailed discussion of current market trends, Triton's performance, how Triton has locked-inlong-term benefits from the current exceptional market, and its focus on driving shareholder value, followed by a Q&A session. To pre- register for the event, access the live video webcast on the day of the event, or to view an archived replay, please visit the Investors section of Triton's website at http://www.trtn.com. The registration link can be found in Upcoming Events within the News and Events tab.

Third Quarter 2021 Investor Webcast

Triton will hold a Webcast at 8:30 a.m. (New York time) on Tuesday, October 26, 2021 to discuss its third quarter results. To listen by phone, please dial 1-877-418-5277 (domestic) or 1-412-717-9592 (international) approximately 15 minutes prior to the start time and reference the Triton International Limited conference call. To access the live Webcast please visit Triton's website at http://www.trtn.com. An archive of the Webcast will be available one hour after the live call.

About Triton International Limited

Triton International Limited is the world's largest lessor of intermodal freight containers. With a container fleet of 7.1 million twenty-foot equivalent units ("TEU"), Triton's global operations include acquisition, leasing, re-leasing and subsequent sale of multiple types of intermodal containers and chassis.

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Contact

Andrew Greenberg Senior Vice President

Business Development & Investor Relations (914) 697-2900

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Utilization, Fleet, and Leasing Revenue Information

The following table summarizes the equipment fleet utilization for the periods indicated:

Quarter Ended

September 30, 2021

June 30, 2021

March 31, 2021

December 31, 2020

September 30, 2020

Average Utilization (1)

99.6 %

99.4 %

99.1 %

98.1 %

96.1 %

Ending Utilization (1)

99.6 %

99.5 %

99.3 %

98.9 %

97.4 %

  1. Utilization is computed by dividing total units on lease (in CEU) by the total units in our fleet (in CEU), excluding new units not yet leased and off-hire units designated for sale.

The following table summarizes the equipment fleet as of September 30, 2021, December 31, 2020 and September 30, 2020 (in units, TEUs and CEUs):

Equipment Fleet in Units

Equipment Fleet in TEU

September 30,

December 31, 2020

September 30,

September 30,

December 31, 2020

September 30,

2021

2020

2021

2020

Dry

3,748,654

3,295,908

3,220,631

6,351,083

5,466,421

5,306,071

Refrigerated

239,328

227,519

226,627

464,465

439,956

437,886

Special

92,458

93,885

93,639

168,951

170,792

170,471

Tank

11,591

11,312

11,153

11,591

11,312

11,153

Chassis

24,381

24,781

24,916

44,726

45,188

45,380

Equipment leasing fleet

4,116,412

3,653,405

3,576,966

7,040,816

6,133,669

5,970,961

Equipment trading fleet

55,299

64,243

72,444

86,598

98,991

111,369

Total

4,171,711

3,717,648

3,649,410

7,127,414

6,232,660

6,082,330

Equipment in CEU(1)

September 30, 2021

December 31, 2020

September 30, 2020

Operating leases

7,294,503

6,649,350

6,492,628

Finance leases

494,839

295,784

308,513

Equipment trading fleet

83,976

98,420

109,469

Total

7,873,318

7,043,554

6,910,610

  1. In the equipment fleet tables above, we have included total fleet count information based on CEU. CEU is a ratio used to convert the actual number of containers in our fleet to a figure based on the relative purchase prices of our various equipment types to that of a 20-foot dry container. For example, the CEU ratio for a 40-foot high cube dry container is 1.70, and a 40-foot high cube refrigerated container is 7.50. These factors may differ slightly from CEU ratios used by others in the industry.

The following table summarizes our leasing revenue for the periods indicated (in thousands):

Three Months Ended,

September 30, 2021

June 30, 2021

September 30, 2020

Operating leases

Per diem revenues..........................................................................

$

377,234

$

353,277

$

304,510

Fee and ancillary revenues............................................................

7,987

7,582

15,842

Total operating lease revenues .....................................................

385,221

360,859

320,352

Finance leases.......................................................................................

14,970

8,925

7,405

Total leasing revenues ...................................................................

$

400,191

$

369,784

$

327,757

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Disclaimer

Triton International Ltd. published this content on 26 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 October 2021 10:45:09 UTC.