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Transport

Avation planning to address shares' discount to net asset value "when conditions permit"

The shares currently trade at a discount to net asset value per share, suggesting the market has not noticed the company's evolution to a full-service aircraft lessor

Aircraft leasing specialist Avation PLC (LON:AVAP) expects to see growth in reported revenues in the second half of the current financial year.

At today's annual general meeting, executive chairman Jeff Chatfield is set to tell shareholders that the company has passed a milestone in having more than US$1bn in assets, and also noted in passing that the shares trade at a discount to net asset value (NAV) per share.

READ: Avation makes first twin-aisle aircraft delivery

Having pointedly referred to the discount to NAV at which the shares trade, Chatfield said the company would attempt to narrow/eradicate this discount by using “capital management techniques when conditions permit”.

The fleet currently consists of 37 aircraft with a weighted average age of 2.9 years and a weighted average lease duration of 7.9 years.

"Avation is now a full-service aircraft lessor providing regional, narrow-body and twin-aisle aircraft. We have evolved over the last six years from originally being a jet lessor to also leasing out regional turbo-prop aircraft,” Chatfield's statement said.

“We have recently expanded our offering to include large twin-aisle aircraft. The rationale for including a small number of twin-aisle aircraft in the fleet is to match the mix of equipment commonly used by airline operators.

READ: Avation secures aircraft revolving facility agreement with leading international bank

"Airlines operate in some or all segments of regional, narrow body and twin-aisle aircraft; therefore, it is natural for an aircraft lessor to have a broad product offering that matches the real world of business opportunity,” Chatfield explained.

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