Company: TRTN-PA
Filing Date: 2025-05-02
Form Type: 6-K
Source: 0001660734-25-000016
Chunk: 37

Company: Triton International Ltd
Filing Date: 2025-05-02
Form: 6-K
Chunk 37
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 to an increase in the number of containers that have become fully depreciated or reclassified to assets held for sale; offset by a

• $8.5 million increase due to new production units placed on-hire during 2024 that have a full quarter of depreciation expense in 2025.

Direct operating expenses. Direct operating expenses primarily consist of our costs to repair equipment returned off lease, store equipment when it is not on lease and reposition equipment from locations with weak leasing demand. Direct operating expenses were $14.8 million for the three months ended March 31, 2025 compared to $22.7 million in the same period in 2024, a decrease of $7.9 million. The primary reasons for the decrease were as follows:

• $7.1 million decrease in storage expense due to a decrease in the number of idle units; and a

• $0.8 million decrease in handling expense primarily due to a lower volume of net pick-up and redelivery activity.

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Administrative expenses. Administrative expenses were $24.1 million for the three months ended March 31, 2025 compared to $21.8 million in the same period in 2024, an increase of $2.3 million primarily due to an increase in incentive compensation costs.

Transaction and other costs. Included in the three months ended March 31, 2024 were $5.5 million of transaction and other related costs associated with the Merger, primarily related to employee compensation costs. The Company did not incur any transaction and other related costs associated with the Merger in 2025.

Interest and debt expense. Interest and debt expense was $68.1 million for the three months ended March 31, 2025 compared to $61.5 million in the same period in 2024, an increase of $6.6 million. The increase was primarily due to an increase in the average effective interest rate to 3.66% from 3.27% due to the maturity of lower interest fixed-rate debt in the second quarter of 2024, which was repaid with higher rate variable debt borrowings.

Income tax expense (benefit). Income tax expense was $13.9 million for the three months ended March 31, 2025 compared to $12.8 million in the same period in 2024, an increase of $1.1 million. The increase in income tax expense was primarily the result of an increase in pre-tax