Waha Capital Annual Report 2015

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AerCap Holdings NV

AerCap, a NYSE listed company, is a global aircraft leasing company. It acquires aircraft from manufacturers, airline operators, other aircraft-leasing companies and financial investors to lease to commercial airlines and cargo operators.

On 4 June 2015, AerCap acquired 15,698,588 of its own shares held by American International Group, Inc. (AIG) for a total purchase consideration of USD 750 million. Pursuant to this share buyback, Waha Capital’s ownership in AerCap increased from 12.6% to 13.5%. Following the sale of shares by AIG, Waha Capital has again become the largest beneficial shareholder of AerCap. On 13 December 2015, the Group acquired a further 124,846 Aercap shares and subsequent to the year end, the Group acquired an additional 3,875,154 shares, for a total consideration of USD 146.03 million. Consequently the Group’s shareholding has increased to 15.4%.

Waha Capital continues to retain two seats on AerCap’s Board of Directors, as well as representations on the various Board Sub-committees.

The key financial highlights of Aercap for the year 2015 were as follows:

  • Net profit of USD 1,178.7 million compared to USD 810.4 million in 2014.
  • EPS of USD 5.78 compared to USD 4.61 in 2014.
  • USD 1.9 billion of funding raised at an average cost of 3.6%.
  • USD 9.2 billion of available liquidity as of 31 December 2015.
  • Debt/equity ratio of 2.9 as of 31 December 2015.
  • Book value per share in excess of USD 42 as of 31 December 2015.
  • USD 400 million share repurchase programme approved, which will run through 30 June 2016.

The key operational highlights of Aercap for the year 2015 were as follows:

  • 405 aircraft transactions executed in 2015, including 117 widebody aircraft, as follows:
    • Signed lease agreements for 276 aircrafts.
    • Purchased 46 aircrafts.
    • Executed sale transactions for 83 aircrafts.
  • Achieved 99.5% fleet utilisation rate.
  • Average remaining lease term of 5.9 years as of 31 December 2015.
  • Over 85% of aircraft deliveries until 2018 have been leased under a contract or letter of intent on an average 12-year lease term.

As of 31 December 2015, AerCap’s portfolio consisted of 1,700 aircraft that were either owned, managed, or under contract to purchase. For the year ended 31 December 2015, AerCap has contributed 52.0% of the Group’s total income and its carrying value of AED 4,073.7 million represents 42.4% of the Group’s total assets representing a key component of the Group’s strong balance sheet.