DAE grants 12% of revenues in rent deferrals
DAE has agreed to defer rents representing approximately 12% of annual revenues over the last six months and expects arrears to climb as it continues to process further rent holiday requests.
To date the lessor has granted 29 rent deferral requests and is assessing a further 28, which would represent a further 6% of annual reported revenue. So far the lessor has provided rent deferral assistance to 30% of its customers.
DAE expects to provide additional assistance to its customers and predicts rent arrears to climb as “our clients continue to refine their operating models”.
Operating activity was similar in the first six months of 2020 as in the same period last year.
The Dubai-based business’s owned, managed and mandated-to-manage fleet stayed stable at more than 400 aircraft.
In the first half DAE sold or novated 17 aircraft, acquired five aircraft, transitioned or extended leases on 23 aircraft, and negotiated 41 lease extensions subject to documentation.
Since the onset of the pandemic, it has transitioned 11 aircraft. Portfolio lease utilisation has remained above 99%. The managed aircraft portfolio grew to 73 aircraft.
DAE ended 1H2020 with total available liquidity of $2.8 billion, which comprised approximately $600 million of unrestricted cash and $2.2 billion of long-term committed available lines of credit.
It repurchased $187 million of its own bonds. Over the next 12 months, it has one bond maturity of $430 million in August 2020 outstanding.