LOS ANGELES, CA – Air Lease Corporation (NYSE:AL), a company specializing in the leasing of aircraft equipment, has completed the redemption of its 6.150% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series A, as announced in a recent SEC filing. On Thursday, the company filed a Certificate of Elimination with the Secretary of State of Delaware, which effectively eliminated the Certificate of Designations pertaining to the Series A Preferred Stock.
As stipulated in the terms of the Certificate of Designations, all outstanding shares of the Series A Preferred Stock were redeemed on October 17, 2024. This redemption has resulted in all previously authorized shares of the Series A Preferred Stock reverting to undesignated shares of preferred stock, with a par value of $0.01 each. The Certificate of Elimination took effect immediately upon its filing.
In other recent news, Air Lease Corporation disclosed significant activities in its portfolio, including a $1.9 billion investment in new aircraft, and the issuance of $300 million of 6.00% fixed-rate reset non-cumulative perpetual preferred stock, Series D. TD Cowen maintained its Buy rating for Air Lease, despite reducing its sales revenue and earnings per share (EPS) forecasts. The firm's revised estimates indicate a decrease in the expected aircraft sales revenue for the third quarter, now projected at $35 million. The EPS estimate for Air Lease has also been revised to $3.43 for the year 2024, and $4.45 for 2025.
Air Lease's second-quarter 2024 earnings report showed revenues of $667 million and diluted EPS of $0.81. The company's forward order book is fully placed through 2025, and it anticipates full-year 2024 aircraft deliveries to be between $4.5 billion and $5.5 billion. However, the company reported potential delays in Boeing aircraft deliveries due to a labor strike at The Boeing Company (NYSE:BA). The impact of this on the company's capital expenditures remains uncertain. These are the recent developments for Air Lease Corporation.
InvestingPro Insights
Air Lease Corporation's recent redemption of its Series A Preferred Stock aligns with its financial management strategy, which is reflected in several key metrics from InvestingPro. The company's market capitalization stands at $4.96 billion, with a P/E ratio of 9.51, indicating a relatively low earnings multiple. This could be attractive to value investors, especially considering the company's impressive gross profit margin of 59.37% for the last twelve months as of Q2 2024.
InvestingPro Tips highlight that Air Lease Corporation has raised its dividend for 11 consecutive years, demonstrating a commitment to shareholder returns. The current dividend yield is 1.87%, with a 5% dividend growth over the last twelve months. This consistent dividend policy may be appealing to income-focused investors.
However, it's worth noting that the company operates with a significant debt burden, which could be a factor in its decision to redeem the preferred stock. Despite this, analysts predict the company will be profitable this year, with a basic EPS from continuing operations of $4.68 for the last twelve months.
For investors seeking more comprehensive analysis, InvestingPro offers 12 additional tips for Air Lease Corporation, providing deeper insights into the company's financial health and market position.
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