Air Lease Corp (AL) Reports 17.5% Revenue Growth in Q3 2023
Q3 2023 revenue increased by 17.5% YoY to $659.4 million
Net income attributable to common stockholders for Q3 2023 was $122.0 million, a 22% increase YoY
Diluted earnings per share for Q3 2023 were $1.10, up by 22.2% from Q3 2022
Board of directors increased quarterly cash dividend by 5%, from $0.20 per share to $0.21 per share
On November 6, 2023, Air Lease Corp (NYSE:AL) announced its financial results for the third quarter of 2023. The company reported a healthy performance with a 17.5% increase in revenues to $659.4 million, compared to $561.3 million in Q3 2022. The net income attributable to common stockholders for Q3 2023 was $122.0 million, marking a 22% increase from $100.0 million in Q3 2022. Diluted earnings per share also saw a significant increase of 22.2%, from $0.90 in Q3 2022 to $1.10 in Q3 2023.
Financial Highlights
Air Lease Corp (NYSE:AL) reported operating expenses of $494.3 million for Q3 2023, a 16.7% increase from $423.5 million in Q3 2022. The company's income before taxes for the quarter was $165.0 million, a 19.7% increase from $137.8 million in the same period last year.
During the quarter, the company took delivery of eight aircraft from its order book, representing approximately $450 million in aircraft investments, ending the period with approximately $30 billion in total assets. The company also sold eight aircraft during the quarter for approximately $350 million in sales proceeds.
Portfolio and Debt Financing Activities
As of September 30, 2023, the net book value of Air Lease Corp (NYSE:AL)'s fleet increased to $25.6 billion, compared to $24.5 billion as of December 31, 2022. The company owned 448 aircraft in its aircraft portfolio, comprised of 331 narrowbody aircraft and 117 widebody aircraft, and managed 79 aircraft.
The company ended the third quarter of 2023 with total debt financing, net of discounts and issuance costs, of $18.6 billion. As of September 30, 2023, 85.1% of the company's total debt financing was at a fixed rate and 98.3% was unsecured.
Dividend Announcement
On November 3, 2023, Air Lease Corp (NYSE:AL)'s board of directors increased the company's quarterly cash dividend by 5%, from $0.20 per share to $0.21 per share on its outstanding Class A common stock. The next quarterly dividend of $0.21 per share will be paid on January 10, 2024, to holders of record of the company's common stock as of December 15, 2023.
Looking Ahead
Air Lease Corp (NYSE:AL) remains optimistic about its prospects, citing strong aircraft demand and attractive valuations in the aircraft sales market. The company has placed 100% of its contracted order book positions on long-term leases for aircraft delivering through the end of 2025 and has placed 67% of its entire order book.
Explore the complete 8-K earnings release (here) from Air Lease Corp for further details.
This article first appeared on GuruFocus.
