AerCap Leased, Purchased and Sold 953 Assets in the Full Year 2023 and 267 Assets in the Fourth Quarter 2023 and Repurchased Approximately 44 Million Shares in the Full Year 2023

Rhea-AI Summary

AerCap Holdings N.V. (AerCap) (NYSE: AER) reported its major business transactions for the full year and fourth quarter of 2023. In 2023, the company signed 592 lease agreements, completed 173 purchases, and 188 sale transactions. They received cash insurance settlement proceeds of about $1.3 billion and repurchased around 44 million shares at an average price of $59.09 per share, totaling approximately $2.6 billion. Additionally, they signed financing transactions for about $13.3 billion. In the fourth quarter of 2023, AerCap signed 179 lease agreements, completed 52 purchases, 36 sale transactions, received cash insurance settlement proceeds of about $609 million, repurchased approximately 10 million shares at an average price of $62.86 per share, totaling approximately $649 million, and signed financing transactions for about $1.7 billion.

Insights

Financial Analyst

The reported activities of AerCap Holdings N.V. during the full year and fourth quarter of 2023 reflect significant capital management and operational decisions. The repurchase of 44 million shares for approximately $2.6 billion indicates a bullish stance by the management on the company's valuation. This move could be perceived as a signal of undervaluation by the management or a strategy to boost earnings per share by reducing the number of shares outstanding. Moreover, the substantial figure of $13.3 billion in financing transactions suggests a proactive approach to capital acquisition, which is key to facilitating growth and expansion in the competitive aircraft leasing industry.

Investors should note the dual impact of share repurchases and financing activities. On one hand, share buybacks can enhance shareholder value, but on the other, significant financing transactions could imply future interest obligations that may affect net income. The balance between these two aspects will be crucial in determining the financial health and stock performance of AerCap in the upcoming periods.

Market Research Analyst

AerCap's aggressive leasing activities, with 592 lease agreements signed over the full year, are indicative of robust demand in the aircraft leasing sector. The diversification of leased assets, including widebody and narrowbody aircraft, regional jets, engines and helicopters, demonstrates AerCap's comprehensive market coverage and risk mitigation strategy. This volume of leasing agreements is a strong indicator of the company's operational efficiency and its ability to capitalize on market opportunities.

On the sales front, the completion of 188 sale transactions throughout the year suggests strategic portfolio optimization. By divesting certain assets, AerCap is likely streamlining its operations and possibly capitalizing on favorable market conditions to realize gains on sales. The impact of these sales on the company's financials will depend on the profit or loss recognized from each transaction and how these figures compare to industry benchmarks.

Risk Management Expert

The receipt of cash insurance settlement proceeds totaling approximately $1.9 billion across the year and fourth quarter underlines significant risk exposure and the importance of comprehensive insurance coverage in the aircraft leasing industry. Such large settlements could relate to unforeseen events or operational risks that have materialized and their successful recovery is testament to AerCap's risk management protocols.

However, stakeholders should closely monitor the frequency and reasons behind such insurance claims, as they may reveal underlying risk factors within the company's portfolio or operational areas. While the settlements provide immediate liquidity and can offset losses, a pattern of high insurance recoveries could signal deeper issues that might affect long-term sustainability and investor confidence.

DUBLIN, Jan. 3, 2024 /PRNewswire/ -- AerCap Holdings N.V. ("AerCap") (NYSE: AER) has announced its major business transactions during the full year and fourth quarter 2023:

Full Year 2023 Transactions

• Signed 592 lease agreements, completed 173 purchases and 188 sale transactions.
• Received cash insurance settlement proceeds of approximately $1.3 billion.
• Repurchased approximately 44 million shares, at an average price of $59.09 per share, for a total of approximately $2.6 billion.
• Signed financing transactions for approximately $13.3 billion.

Fourth Quarter 2023 Transactions

• Signed 179 lease agreements, including 11 widebody aircraft, 89 narrowbody aircraft, 3 regional jets, 57 engines and 19 helicopters.
• Completed 52 purchases for 24 aircraft (including 4 Airbus A220 Family aircraft, 11 Airbus A320neo Family aircraft, 6 Boeing 737 MAX aircraft and 3 Boeing 787-9s for AerCap's owned aircraft portfolio), 23 engines and 5 helicopters.
• Completed 36 sale transactions for 20 aircraft (including 3 Airbus A220 Family aircraft, 4 Airbus A320 Family aircraft, 3 Airbus A320neo Family aircraft, 1 Airbus A330, 3 Boeing 737NGs, 1 Boeing 737-300SF, 2 Embraer E190s and 3 De Havilland Canada DHC-8s from AerCap's owned aircraft portfolio), 9 engines from AerCap's owned engine portfolio, 1 engine from AerCap's managed engine portfolio and 6 helicopters.
• Received cash insurance settlement proceeds of approximately $609 million.
• Repurchased approximately 10 million shares, at an average price of $62.86 per share, for a total of approximately $649 million.
• Signed financing transactions for approximately $1.7 billion.

About AerCap

AerCap is the global leader in aviation leasing with one of the most attractive order books in the industry. AerCap serves approximately 300 customers around the world with comprehensive fleet solutions. AerCap is listed on the New York Stock Exchange (AER) and is based in Dublin with offices in Shannon, Miami, Singapore, Memphis, Amsterdam, Shanghai, Dubai, Seattle, Toulouse and other locations around the world.

Forward-Looking Statements

This press release contains certain statements, estimates and forecasts with respect to future performance and events. These statements, estimates and forecasts are "forward-looking statements". In some cases, forward-looking statements can be identified by the use of forward-looking terminology such as "may," "might," "should," "expect," "plan," "intend," "will," "aim," "estimate," "anticipate," "believe," "predict," "potential" or "continue" or the negatives thereof or variations thereon or similar terminology. All statements other than statements of historical fact included in this press release are forward-looking statements and are based on various underlying assumptions and expectations and are subject to known and unknown risks, uncertainties and assumptions, and may include projections of our future financial performance based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied in the forward-looking statements, including, among other things, the availability of capital to us and to our customers and changes in interest rates; the ability of our lessees and potential lessees to make lease payments to us; our ability to successfully negotiate flight equipment (which includes aircraft, engines and helicopters) purchases, sales and leases, to collect outstanding amounts due and to repossess flight equipment under defaulted leases, and to control costs and expenses; changes in the overall demand for commercial aviation leasing and aviation asset management services; the continued impacts of the Ukraine Conflict, including the resulting sanctions by the United States, the European Union, the United Kingdom and other countries, on our business and results of operations, financial condition and cash flows; the rate of recovery in air travel related to the Covid-19 pandemic, the aviation industry and global economic conditions; the potential impacts of the pandemic and responsive government actions on our business and results of operations, financial condition and cash flows; the effects of terrorist attacks on the aviation industry and on our operations; the economic condition of the global airline and cargo industry and economic and political conditions; development of increased government regulation, including travel restrictions, sanctions, regulation of trade and the imposition of import and export controls, tariffs and other trade barriers; a downgrade in any of our credit ratings; competitive pressures within the industry; regulatory changes affecting commercial flight equipment operators, flight equipment maintenance, engine standards, accounting standards and taxes.

As a result, we cannot assure you that the forward-looking statements included in this press release will prove to be accurate or correct. These and other important factors and risks are discussed in AerCap's annual report on Form 20-F and other filings with the SEC. In light of these risks, uncertainties and assumptions, the future performance or events described in the forward-looking statements in this press release might not occur. Accordingly, you should not rely upon forward-looking statements as a prediction of actual results and we do not assume any responsibility for the accuracy or completeness of any of these forward-looking statements. Except as required by applicable law, we do not undertake any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. For more information regarding AerCap and to be added to our email distribution list, please visit www.aercap.com.

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SOURCE AerCap Holdings N.V.

FAQ

How many lease agreements did AerCap sign in 2023?

AerCap signed 592 lease agreements in 2023.

How many shares did AerCap repurchase in 2023?

AerCap repurchased around 44 million shares in 2023.

What was the average price of AerCap's shares when repurchasing in 2023?

The average price of AerCap's shares when repurchasing in 2023 was $59.09 per share.

What was the total amount of shares repurchased by AerCap in 2023?

The total amount of shares repurchased by AerCap in 2023 was approximately $2.6 billion.

How much cash insurance settlement proceeds did AerCap receive in 2023?

AerCap received cash insurance settlement proceeds of about $1.3 billion in 2023.

How many lease agreements did AerCap sign in the fourth quarter of 2023?

AerCap signed 179 lease agreements in the fourth quarter of 2023.

What was the total amount of shares repurchased by AerCap in the fourth quarter of 2023?

The total amount of shares repurchased by AerCap in the fourth quarter of 2023 was approximately $649 million.

What was the average price of AerCap's shares when repurchasing in the fourth quarter of 2023?

The average price of AerCap's shares when repurchasing in the fourth quarter of 2023 was $62.86 per share.

How much cash insurance settlement proceeds did AerCap receive in the fourth quarter of 2023?

AerCap received cash insurance settlement proceeds of about $609 million in the fourth quarter of 2023.