Amedeo Air Four Plus Dividends - AA4

Amedeo Air Four Plus Dividends - AA4

Stock Name Stock Symbol Market Stock Type
Amedeo Air Four Plus Limited AA4 London Ordinary Share
  Price Change Price Change % Stock Price Last Trade
0.25 0.61% 41.00 08:00:00
Open Price Low Price High Price Close Price Previous Close
41.00 41.00 41.00 40.75
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Industry Sector

Amedeo Air Four Plus AA4 Dividends History

Announcement Date Type Currency Dividend Amount Period Start Period End Ex Date Record Date Payment Date Total Dividend Amount

Top Dividend Posts

Top Posts
Posted at 06/1/2023 17:28 by cousinit
I estimated with the reduced share count following the redemptions, that once the Thai debt was no longer a cash drain that the divi could be reinstated in full just from Emirates income. It seems they want to build up a bit of cash. They say that the junior debt only has recourse to the matching plane. It suggests to me that they want to retain some flexibility, which is more palatable now there may be a likelihood of some residual value in the assets.
Posted at 06/1/2023 14:48 by 2wild
2nd consecutive 1.5p dividend declared, going ExDiv 12th Jan. Including January 2024 that's 5 payments totaling 7.5p in 53 weeks. Giving 18.75% return on 40p.
Posted at 05/1/2023 12:28 by nicholasblake
Once Thai Air is reliably paying fixed leases there is scope for 20+% dividend increase.
Posted at 05/1/2023 09:59 by spittingbarrel
MRF - Any idea what the divi forecast for the year is? TIA
Posted at 05/1/2023 09:13 by my retirement fund
Dividends are starting to look healthy again now, 1.5p first up !

onwards and upwards, AA4 really starting to take off now!

Posted at 21/11/2022 20:31 by rambutan2
Yes, the usual mix of pint half full/half empty news. Includes some interesting commentary on the A350-900 valuation.


Posted at 06/10/2022 16:12 by gary1966
Increase in dividend to 6ppa.😊
Posted at 29/7/2022 09:26 by davebowler
Amedeo Air Four Plus

Improving outlook

Mkt Cap £113m | Share price 32.5p | Prem/(disc) -64.0% | Div yield 15.4%


AA4's full year results have demonstrated a significant improvement in its position. The agreement of the lease amendment with Thai Airways was pivotal in enabling a £30m capital return and the resumption of quarterly distributions. Lease income from Emirates underpins the current 5p distribution. The board has stated that it expects to be able to maintain the distribution at this level for the foreseeable future.

Estimated residual values reduced by 16% in the year. The portfolio comprised 12 aircraft at 31 March 2022 - six A380s (leased to Emirates), two B777s (leased to Emirates) and four A350s (leased to Thai Airways). The majority of the impairment related to the A380 and B777 aircraft.

The situation with Thai Airways has improved steadily since the restructuring completed in December 2021. The airline is making power by the hour (PBH) payments in 2022 before switching to a fixed payment from January 2023. During Q1 2022, flight hours for the four A350 aircraft were equivalent to 60% of pre-pandemic hours. The PBH payments have been sufficient to cover the quarterly interest and expense.

AA4 has also provided additional disclosure on the lease terms. The fixed lease rent from 1 January 2023 is 45% below the previously agreed rent. Thai Airways' rehabilitation plan provides for $6.7m of pre-petition unpaid rent to be payable to AA4 in instalments starting in 2024. This will be used to repay debt. The lease has also been extended by six years, with future rents to be determined by market rates. Thai Airways has announced plans to exit bankruptcy in 2024 and is seeking to strengthen its balance sheet with new equity and debt-for-equity swaps. AA4 has reiterated its view that it does not expect to receive any income from the Thai aircraft after expenses and debt service costs, but there is scope for the recovery of equity value.

Liberum view

AA4's 15% dividend yield is covered by income from Emirates. We believe there is potential for an increase in distributions over time as we estimate recurring earnings of £26m (vs. £17m of annualised distributions). We believe AA4 is gradually building up cash reserves within the A380 SPVs, to ensure there is enough capital to meet obligations on the junior debt. In this regard, the recent sale by Doric Nimrod Air One of its A380 to Emirates for $30m was encouraging. In relation to AA4's A380 aircraft, the lease return compensation and redelivery costs are much lower than $30m. The first of AA4's A380 lease expires in 2026 and it is still unclear what will happen with the aircraft at the end of the lease. Emirates is experiencing capacity issues, in part due to problems with the delivery of Boeing's 777X programme. The first delivery of 777X aircraft is expected to occur in 2025. The success or otherwise of the 777X programme will play a determining role in the residual value of AA4’s A380s. Even on relatively conservative assumptions (no equity value for A380 and $12.5m for A350), we estimate an IRR of 14% from the current share price.

Posted at 18/7/2022 18:17 by bedbel
From WINV annual report today:

The Company's portfolio has remained quite fully invested during the reporting period. This includes a previously undisclosed holding of some 3.7% of Net Assets in Amedeo Air Four Plus Limited ('AA4'). AA4 is a Guernsey company, whose shares are listed on the Specialist Fund Segment of the London Stock Exchange's Main Market. AA4 has a market capitalisation of £109.4 million and owns via its subsidiaries an aircraft fleet of six A380s and two B777-300ERs leased to Emirates Airlines ('Emirates') and four A350-900s leased to Thai Airways ('Thai Air'). As at 30 September 2021, the AA4 group held cash, net of provisions for maintenance, of slightly less than £84 million, which has subsequently been reduced by a £30 million pro rata capital redemption. In addition, unencumbered gross lease payments contracted to be paid to AA4 by Emirates as at 31 March 2022 were some £194 million. Once Thai Air trading has normalised, there is scope to return by way of capital return the £15 million held by AA4 as a capital buffer, and to increase very substantially the annual dividend of five pence per share, which is presently constrained by the AA4 board's prudent approach to Thai Air's current trading.

Posted at 16/12/2021 10:06 by davebowler
Lease agreement and debt restructure agreed on Thai Airways aircraft

Mkt Cap £119m | Share price 27.5p | Prem/(disc) -61.7% | Div yield n/a


Amedeo Air Four Plus has finalised lease restructurings with Thai Airways. Under the restructured leases, Thai Airways will pay rent on a power by the hour basis until December 2022. From January 2023, the leases will switch to fixed monthly payments (amount not disclosed). Under the terms of the restructured debt facilities, any surplus rent in excess of debt service and agreed cost contributions to AA4 will be used for principal amortisation.

Three of the four aircraft leased to Thai Airways have been operated in commercial service. The final aircraft is due to re-enter commercial service in the coming days. Some rent has been received under the power by the hour arrangement.

Liberum view

There is no indication on the level of the fixed monthly payments compared to the prior lease. We believe the reduction in the monthly rental is likely to be approximately 40%. Data from Ishka indicates that market lease rates for A350s have fallen by approximately 30% since January 2020. The lease restructuring had been expected given the recent decision to return £30m to shareholders. The board had previously created a contingency reserve to cover 18 months interest and the cost of repossession, storage and remarketing of the A350 aircraft leased to Thai, in the event they were returned by the airline.

The focus now turns to what the reinstated dividend payout will be and an announcement is expected shortly. We previously estimated the dividend would be slightly less than the most recent dividend of 1.15p (based on the number of shares prior to the capital distribution), as we expect the board will seek to ensure that the dividend is reinstated at a sustainable level. A dividend of 1.25p (equivalent to 1p per share on the number of share prior to the distribution) would equate to an annualised dividend yield of 18.2%.

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