Company: TRTN-PA
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0001660734-25-000004
Chunk: 36

Company: Triton International Ltd
Filing Date: 2025-02-28
Form: 20-F
Item: Item 5
Chunk 36
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 fleet in units      Percentage of total fleet in CEU  
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────
  Dry                                                        90.9                                  72.8  
  Refrigerated                                                5.0                                  20.1  
  Special                                                     2.4                                   3.4  
  Tank                                                        0.3                                   1.3  
  Chassis                                                     0.6                                   1.8  
  Equipment leasing fleet                                    99.2                                  99.4  
  Equipment trading fleet                                     0.8                                   0.6  
  Total                                                     100.0                                 100.0  

TEU and CEU are standard industry measures of fleet size and are used to measure the quantity of containers that make up our revenue earning assets. CEU is a ratio used to convert the actual number of containers in our fleet to a figure based on an estimate for the historical average 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.

Operating Performance

Our financial performance during 2024 was strong. During the first half of the year, we experienced strong container demand mostly as a result of the Red Sea conflict which caused lengthened voyage times and supply chain inefficiencies. These logistical disruptions, combined with an increase in the volume of cargo shipments led to a sharp increase in pick-up and sales activity in the first half of the year. Demand continued to be tight in the latter half of 2024 due to ongoing uncertainty surrounding the Red Sea diversions, although container pick-up activity moderated from the high levels experienced in the first half. Overall, we experienced an increase in container pick-ups, reduced container drop-off activity, an increase in our fleet utilization and strong disposal volumes and prices throughout 2024 due to the above factors.

As of December 31, 2024, the net book value of our revenue earning assets was $10.3 billion, down slightly from December 31, 2023. During 2024, we invested $916.0 million in new containers, which was offset by depreciation expense, a high volume of disposals and the write-off of $57.4 million related to a finance lease transaction entered into in the second