2024 – Highlights from the Year in Review
Without overdoing the festive analogy, in many respects 2024 could prove to be the prawn cocktail starter to the turkey and trimmings that will be the main course of 2025.
We have reflected at times on how complicated the market has been in the past few years, with the impact of Covid followed by interest rates and general market and political unrest. However, throughout 2024 we have seen strong signs that markets are reopening, and indeed we are actively working with a number of parties to bring aviation deals to market. This positive sentiment which has been growing throughout 2024 suggests that 2025 promises to be one of the best years for some time. We look forward to working with our clients, both existing and new, during this upcoming year.
A period of continued growth
In a business update earlier this year, I noted that at FAVS we made a conscious decision to cover all types of financing structures for Aircraft, Engines and PDPs, regardless of size or location of incorporation. We actively sought new business opportunities that may otherwise have been harder to place. This has meant that the last five years has been a period of continued incremental growth for us. As we close out 2024, we are now managing a combined asset base of over $12.2bn, comprising $8.2bn in Assets and $4bn in Committed Funds.
Of course, our business growth is a direct correlation of our clients’ success, whom during this year, have added just over $2 billion of assets. Trading has been brisk but with aircraft demand, asset values and lease rentals remaining very strong, it takes time and patience to evaluate and acquire the correct assets generating suitable ROIs.
The ABS Markets return
Fexco Aviation Services has worked with the Navigator Group since inception in 2019. Navigator 2024-1 represents the second securitization with assets originated by the Navigator Platform, an aircraft acquisition vehicle indirectly owned by certain private funds managed by PIMCO (Pacific Investment Management Company LLC) and Dubai Aerospace Enterprise (DAE) Ltd.
Navigator 2024-1 was seen as a very significant transaction in the re-opening of the post COVID aviation ABS markets, with the transaction closing on September 24th. The ABS transaction is serviced by DAE while affiliates of PIMCO and DAE retained the equity position in Navigator 2024-1 at closing.
Proceeds from the Notes were used to refinance a portfolio of 22 assets consisting of 21 narrowbody aircraft (87.9% by value) and one widebody aircraft (12.1% by value) on lease to 14 lessees located in 13 jurisdictions. As of June 30, 2024, the weighted average remaining term of the initial leases was approximately 6.3 years, with an initial appraised value of approximately $637.3 million based on the average of the half-life base values provided by three third-party appraisers.
Networking in 2025 – Dublin Conference
Fexco Aviation Services will once again be at the Airline Economics conference in Dublin from January 12th to 15th. We will have all key members of our management team in attendance, and we would be delighted to meet you and discuss any of our services which may be on your radar for next year. These include New Business Set-up, Company Secretarial, Cash Management and Waterfall for ABS / Warehouse and any Accounting & Tax Services that you may require.
Should you wish to arrange a meeting, please email [email protected] and we look forward to meeting you at our Dublin office in 14 Ely Place, a mere four-minute stroll from the Shelbourne Hotel.
Conclusion
There is a lot of interest in aviation assets again from all corners of the globe. For those entering the ABS markets in 2025 and those contemplating it, we look forward to helping you get that deal done efficiently, and to play our role in easing the administrative burden. We also look forward to providing more business updates during the year ahead as we grow our business with yours!
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