Doric Nimrod Air Two Share Discussion Threads

[b2baby] 16/2/2023 10:00

Avation announced this morning that they have sold a Boing 737-800. This can only be good news for the resurrection of a proper second hand market in commercial aircraft and therefore only positive for DNA2. Most travel stocks showing major uptake for 2023 indicating that although cost of living is biting on many fronts, many are still putting money aside for holidays. Again, only positive for DNA2.

[rambutan2] 17/10/2022 22:04

Weiss out:

And Elliot in:

Trades made at 91.5p:

[riff1954] 30/6/2022 11:39

More good news on the A380 front hxxps://www.breakingtravelnews.com/news/article/lufthansa-reactivates-airbus-a380/ Lufthansa to bring the ‘permanently retired a380’ back into service in 2023. There is life in the old bird yet!

[sf5] 29/6/2022 14:19

Positive comment from David Stevenson today:

''It is worth adding one note though, to the Doric Nimrod 2 position – there’s been a hint of good news on this from Emirates. Matt Hose at Jefferies reports the following:
“In an interview with Bloomberg TV, Emirates President and CEO Sir Tim Clark was asked about the uncertainty regarding Boeing fulfilling the airline's order for the 777x. In response, he said Emirates would be "retaining all the A380s now, probably until the mid-30s, 118 of those." Conclusions: These comments indicate the airline would either acquire or re-lease the A380s owned by the funds at the end of the current lease terms. This appears to be driven by 777x deliveries not expected until 2025, coupled with the recent strong recovery in flight demand. As such, given a continued lack of other buyers for the super jumbo, this offers a source of comfort that the aircraft are not likely to be returned to the funds over the next few years, but more broadly that other Emirates-leased A380s (of which there are 57 in total) will not enter the market.”''

[robizm] 08/3/2022 19:05

This sounds like good news

[grahamg8] 14/7/2021 20:13

For 'tomorrow' read tomorrow, rather than tomorrow yesterday which would be today. If you get the drift. Got a bit excited, previous 4 updates have all been on Thursday, not Wednesday.

[grahamg8] 13/7/2021 17:08

Last week Insight Investment Management offloaded 9.72% of DNA and 2.69% DNA2 and didn't make a dent in the share price. Someone keen to buy, awaiting RNS to reveal all. Meanwhile by my calculation a quarterly update is due tomorrow.

[riff1954] 22/10/2020 18:04

The aircraft will be sold, the company wound up and the net proceeds returned to shareholders see

[chris8100] 19/10/2020 22:01

Came across this for the portfolio recently. What happens at the end of the lease periods if they make it that far, what would happen to any shares held and the value of them? Thanks in advance

[irishmatt] 06/10/2020 11:40

Should be getting a dividend RNS in next week or so, moving up nicely ahead of it

[grahamg8] 03/4/2020 18:28

All airlines will be desperately short of cash. Cut revenue spending, and cut CAPEX. That means cancelling a lot of orders for new planes. But with Covid tidied away the cash shortage remains and the fleet needs to fly. To square the circle the answer is to hang onto existing planes longer than normal. If Emirates want to reduce their lease outgoings then they could offer to extend the lease and/or even contract to purchase the planes at the end of the lease. There's a deal to be done. Come on DNA get on the phone.

[rik shaw] 31/3/2020 18:27

UAE bailout promise for Emirates:

[robizm] 31/3/2020 13:25

Bought these a few days ago. Should go up as long as the world don't end lol

[jaws6] 17/7/2015 08:44

small tick up

[davebowler] 13/5/2015 11:44

AA4 the new Nimrod IPO started trading today at a premium.

[valhamos] 14/12/2014 09:55

Extrader

Thanks for the feedback on the 787 and Norwegian. Aircraft leasing certainly has more of a fascinating appeal compared to other sectors in my fixed income portfolio!

[extrader] 13/12/2014 01:19

Hi Valhamos,

Thanks for the feedback - and the lead to DPA.

My partner is American and we spend some time Stateside every year (in fact I'm writing from California at the moment). So the USD aspect is not necessarily a negative !

In 'further fact', by coincidence , we must have flown here (to LAX) on one of the two Dreamliners leased from DPA by Norwegian Air......

On a customer feedback note, the plane was indeed quieter than my previous hops,the air quality the best I've ever had, so much less jet-lag; the seat configuration good, the food and inflight entertainment good. The larger shutterless windows were great for viewing, but not so good at keeping out the glare of direct sunlight (they're not physical shutters, just an electronically adjustable photo-sensitive pane).

The ticket price was also v competitive, certainly better value than our usual United/Virgin/BA....

Coming back on topic, I'd imagine the residual value of a twin engine, 'standard' body long-range 787 would be higher than the A380, with its 4 engines, high passenger load requirement and special airbridges needed.

So, more DMOR, but thanks again for the so far promising lead.

ATB

[valhamos] 12/12/2014 16:42

Extrader

Richard Aboulafia, whom your linked article quotes, has always been cautious about the A380 and dismissive of Doric as inexperienced in the aviation leasing market. He may right. But after the planes came off lease to Emirates, the economics would be more attractive to another lessee if they could retro fit extra seats to around 750 seats which is more like what the plane was designed for.

Unfortunately leasing companies keep all the lower asset risk planes such as A320, 737-800, A330, or 777-300 to themselves and only offer private investors an opportunity to take part in planes like the A380 with greater asset risk. I have a small stake in DNA3 but also an investment in DP Aircraft I Ltd (DPA) which has a couple of Dreamliners out on lease to Norwegian. Hopefully the asset risk here should be lower for a similar return but DYOR - I should also point out that DPA is dollar denominated so there is currency risk to consider.

[wirralowl] 12/12/2014 09:55

I'd be very cautious atm extrader, with news just out yesterday from Airbus, about potentially ceasing production of the A380, or upgrading the current version with more efficient engines. Made me wonder where this would leave DNA at the end of their leases, if either of those cases pan out:





Particularly worrying was the quote from Emirates boss, Tim Clark, who said 'the stance would not help the future second-hand value of A380 aircraft.'

On the back of this news, I regretfully bailed on my holdings in DNA and DNA2, and intend to sit on the sidelines and see how this all unfolds now.

[extrader] 12/12/2014 04:32

Hi all,

Looking at some medium term income for a couple of portfolios....and DNA2, running to 2023 and DNA3 running to 2025 seem to fit the bill as far as yield goes (around 8% at the moment).

Question is : what happens at the end of the lease ie when debt has been paid off and we own the aircraft. What are they likely to be worth then ?

Will the residual value leave shareholders with a capital gain, their capital back, or a capital loss ?


Interesting article (a bit dated) suggesting that the outlook isn't too rosy....

With 36 A380 aircraft in the fleet as of late September and a further 104 now on order, the aviation community is trying to calculate what will happen to Emirates’ superjumbo fleet when the time comes to retire the type, at around halfway through its lifetime. Some analysts believe that, given a lifespan of 25 years, a proxy for the useful life of a modern widebody aircraft, the A380 will face problems in the secondary market when major leases come to an end after the standard 12-year term......

hxxp://www.ainonline.com/aviation-news/air-transport/2013-11-18/emirates-ponders-a380-retirement-plan

Some punchy input from other industry analysts and a fairly subdued reply from Doric, I thought.

Maybe a suitable investment on a 5 year horizon, but arguably not one to be holding when the music/lease stops ?

ATB

[grahamg8] 22/6/2014 09:41

Well it's time to find some cash for my pension payout in July so I had a look at the Nimrods. DNA share price seems to be very stable. DNA2 most volatile and below recent highs but still above the March lows. So it could rise or fall. DNA3 below recent highs and so my strategy seems to be buy DNA3 into my ISA and sell an equivalent amount in my SIPP. ie lower chance of falls, some chance of a rise, and of course I keep hold of those juicy dividends.

[wirralowl] 22/1/2014 16:52

thanks for running the maths, there, speedsgh

[speedsgh] 22/1/2014 16:42

DNA - last published NAV (30/9/13) 101.69p - current mid price 116.50p - premium to NAV +14.5% - current yield 7.7%
DNA2 - last published NAV (30/9/13) 193.09p - current mid price 230p - premium to NAV +19% - current yield 7.8%
DNA3 - last published NAV (30/9/13) 92.74p - current mid price 110.50p - premium to NAV +19% - current yield 7.5% (once full payments of 2.0625p/qtr commence)

[onehandeconomist] 19/1/2014 18:34

Thanks, Graham. They're an interesting play for a small corner of the portfolio. Appreciate the commentary.