Air Lease Corporation (ALC) has reported revenue of $531 million for the three months ended September 30, 2019, an increase of 17.8% o $1.5 billion for the nine months ended September 30, 2019, an increase of 19.4%
Diluted earnings per share were $1.34 for the three months ended September 30, 2019, an increase of 1.5% o $3.67 for the nine months ended September 30, 2019, an increase of 9.2%. Adjusted diluted earnings per share before income taxes were $1.80 for the three months, an increase of 4.0% o $4.98 for the nine months, an increase of 9.5%
ALC’s pre-tax profit margin was 36.5% for the three months and 38.4% on an adjusted basis.
Pre-tax return on common equity of 14.3% for the trailing twelve months ended September 30, 2019, which was 15.4% o an adjusted basis.
During the quarter, ALC took delivery of 15 aircraft from its order book, representing approximately $1.5 billion in aircraft investments. As of September 30, 2019, ALC’s fleet was comprised of 307 owned aircraft with a net book value of $18.9 billion, with a weighted average age and a weighted average lease term remaining of 3.6 years and 7.2 years, respectively.
ALC reports that it has placed 83% of its order book on long-term leases for aircraft delivering through 2021.
The lessor ended the quarter with $28.7 billion in committed minimum future rental payments consisting of $14.1 billion in contracted minimum rental payments on the aircraft in its existing fleet and $14.6 billion in minimum future rental payments related to aircraft on order.
A further highlight in October, was the portfolio sale of 19 aircraft to Thunderbolt Aircraft Lease Limited III (Thunderbolt III), which is expected to close today with the majority of the aircraft transfers to be completed over the next two quarters.
Also this quarter, ALC Issued $1.1 billion of Medium-Term Notes comprised of (i) $600.0 million due 2023 at a fixed rate of 2.25% and (ii) $500.0 million due 2029 at a fixed rate of 3.25%.
ALC also Increased its quarterly cash dividend by approximately 15%, from $0.13 per share to $0.15 per share of our outstanding Class A common stock. The next quarterly dividend of $0.15 per share will be paid on January 6, 2020 to holders of record of our Class A common stock as of December 20, 2019.
“Third quarter results reflect continued strength and stability in the underlying performance trends of our business and fundamental demand for our aircraft. All of our aircraft previously leased to Thomas Cook have been profitably placed with new airline customers. Even considering meaningful delays from both Boeing and Airbus, our 25% year-over-year fleet value expansion is significant, and strong growth is expected to continue via our 316 aircraft forward orderbook,” said John L. Plueger, Chief Executive Officer and President.
“Global air travel demand remains healthy in the face of market headlines. The MAX grounding has reduced industry net seat capacity, and environmental concerns further drive the need for ALC’s orderbook aircraft. Reflecting continued strong performance, our Board of Directors has authorized a 15% increase in ALC’s quarterly dividend to $0.15 per share from $0.13 per share – the 7th dividend increase and 28th consecutive quarterly dividend payment in ALC’s history,” said Steven F. Udvar-Házy, Executive Chairman of the Board.