Avation - AGM update - improving outlook for aircraft demand and valuations

Avation, a lessor of 35 commercial aircraft, has provided an AGM update this morning, highlighting positive dynamics in the air passenger market along with internal progress on fleet repositioning and debt reduction. Revenue passenger kilometres (“RPK”) are reported to have increased over 30% globally in the year to September 2023, now standing at 97% of pre-COVID levels, contributing to a positive backdrop for aircraft valuations. In the narrowbody aircraft market, Avation believes that values

Optimism, optimisation and opportunities

Avation - Full year results – substantial progress in repositioning the fleet in the year

Avation, a lessor of 36 commercial aircraft, has today released full year results for the year to 30 June 2023, reflecting a period in which substantial progress was made in transitioning its last remaining off-lease aircraft and paying down existing borrowings. Importantly, the Group is now positioned strategically for growth as a green low CO2 lessor of modern aircraft, where it also owns one of the world's largest order books comprising 28 purchase rights for new low CO2 ATR 72-600s. With a n

Inflection point - fleet growth coming

Avation - Aircraft transition to Cebu Pacific

Avation is a lessor of 36 commercial aircraft to a diversified client base of 17 airlines. This morning, the group has announced that it has entered into a new four-year operating lease for one of its two Airbus A320 aircraft to Philippines low cost carrier Cebu Pacific. The aircraft is currently being returned by the previous operator and is scheduled for delivery in December 2023 following scheduled periodic maintenance checks.

WH Ireland: Avation - Market tailwinds highlighted in Bloomberg Intelligence event

Avation is a lessor of 35 commercial aircraft to a diversified client base of 17 airlines. Yesterday's Bloomberg Intelligence webinar event entitled ‘Aircraft Lessor Recovery and Innovation' reaffirmed a number of positive market trends for aircraft lessors at the present time. Key points included: i) structural deficits in the supply of turboprop aircraft in the coming years, with aircraft retirements expected to outpace limited production of new aircraft; ii) the strong recovery in air travel

'Airlines will be shocked when Covid leases run out and rates go up’

Avation - Final off-lease aircraft placed with 99% of borrowings hedged

Avation is a lessor of 35 commercial aircraft to a diversified client base of 16 airlines. This morning, the group has announced that is has successfully entered into a new lease for its remaining off-lease ATR 72-600 to a Pacific airline, which is expected to be delivered in July. This is a major milestone for the group, having at its peak in the pandemic had the burden of 14 off-lease aircraft and the associated costs. In addition, Avation reports that 99% of its borrowing is hedged, with a we

Rising signals

Avation (AVAP) – Corporate – Sale of ex-Virgin ATR 72-600

Avation is a lessor of 35 commercial aircraft to a diversified client base of 16 airlines. This morning, the group has announced that it has entered into an agreement to sell a ten-year old ATR 72-600 aircraft, which has been off-lease since its redelivery from Virgin Australia in 2020. Importantly, the sale is at a slight premium to Avation's book value for the aircraft, illustrating the recovery in aircraft valuations. The sale leaves Avation with just one off-lease aircraft remaining – anothe

Avation - Interims show continued recovery; shares at a 50%+ discount to NAV

Avation is a lessor of commercial passenger aircraft to 17 airlines. Interim results to 31 December 2022 illustrated continued progress after a torrid couple of years for lessors and the wider airline industry brought about by the pandemic. Revenue of $46.3m and Other income of $9.0m, along with a number of other positive gains brought a return to profitability in the six-month period, while net debt reduced by $46.0m due to both positive operating cash flow and aircraft disposals. As at 31 Dece

Strengthening foundations for growth

Hot Off The Wires - The Day Ahead

Today's news and views, plus announcements from: HLN, SDR, MRO, CRH. AVAP, CPI, BRK, & BEG.

Avation (AVAP) – Corporate – Trading update points to full year outturn ahead of expectations

Avation is a lessor of 36 commercial aircraft to a diversified client base of 16 airlines. This morning, the group has provided a short announcement stating that as a result of lower aircraft transition, administration and legal costs, improvements in finance income and the recognition of a gain on investment in a listed airline taken as part of the agreement with one customer during the pandemic, profitability in the year to 30 June 2023 is expected to be significantly ahead of current market e

Avation Result of tender offer & sale of Boeing 737-800

Avation is a lessor of 36 commercial aircraft to a diversified client base of 16 airlines. This morning, the group has announced the expiration and result of its $100m bond tender offer, with $7.1m in principal amount of the Notes being validly tendered by holders. This follows on from last week's announcement of the sale of its unencumbered and off-lease Boeing 737-800 aircraft, with a target of either leasing or selling the remaining three off-lease aircraft by 30 June 2023. On the back of the

ICG Enterprise

ICGT has posted good interim results, illustrating the resilience of its buyout portfolio…

SP Angel Morning View: China lithium stocks rally on prospects for market rebound

Chelverton UK Dividend Trust - Overview

Chelverton UK Dividend Trust (SDV) is first and foremost an income fund offering quarterly dividends in excess of inflation over the medium to long term. The company also aims to provide investors with the opportunity for capital growth after providing a return that is sufficient to repay the zero-dividend preference (ZDP) shares. At the helm of the portfolio are lead manager David Horner and co-manager David Taylor, who look for companies with a prospective dividend yield of at least 4% and sit

BlackRock Greater Europe - Overview

BlackRock Greater Europe (BRGE) aims to generate capital growth from large, mid and small-cap companies listed in Europe. The managers have flexibility to invest all over the continent (ex UK) – including up to 25% in countries listed in developing Europe. This flexibility clearly differentiates it from its peers. Despite having been managed by the same team since 2008, responsibility for BRGE was handed to Stefan Gries in June 2017, which has seen a marked change in the way portfolio is assemb

Fund Insight: JPMorgan Global Growth & Income (JGGI) - All-Weather Approach

Our new Fund Insight report series breaks down the strategies and performance of listed funds. This investment trust research is available to all readers.

Market setback creates opportunities

Aberdeen New Dawn (ABD) has been using recent falls in Asian markets to reduce its underweight exposure to China (Chinese stocks dominate ABD’s benchmark). The manager has become more comfortable with the Chinese market (see page 13) and has demonstrated its ability to pick stocks, delivering strong outperformance from its open-ended fund focused on the China A share market; this fund forms part of ABD’s portfolio.

Adding value in cautious times

Standard Life Investments Property Income Trust (SLI) has a long-term track record of market-beating returns achieved by investing in a diverse portfolio of commercial property in the UK. Minimal retail holdings and a bias to industrial property have proved beneficial to the fund. However, its active approach to asset management, aiming to keep voids low and rent flowing, has also been fundamental to its performance. Identifying and selling assets where the rental income may be at risk, and recy