To obtain income returns and a capital return for its shareholders by acquiring, leasing and then selling aircraft.
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Got paid today
Hi I m also looking for alternative income plays similar to doric , I got payd my Doric 2 shares today I m short of good income plays so I decided to invest temporarily on Gore street wich has a divi of about 8% and it is supposed to recover, an inteesting play could be Thungela in the space of coal the divi in very high and the shares seem to have stabilized after the big fall but i wanted to monitor some more before buying into something in the environmentalist spotlight..i do not know of any new leasing companies out of UK.... UK is interesting as the divis are not taxed.........
Can anyone tell me, do they think they should wait for DNA 3 to wind up or cash in before Junenon the basis they might not get what they wanted for the residual aircraft. Also are there any seminar opportunities to DNA 1,2,3 or Amedeo Air Force Plus that would provide similar returns?
Not yet - I’m with HL so expecting a slow payment
Did anyone receive the payment?
Thanks
No, they reduced the number of shares and the dividend is projected to remain the same 4.5p
Quick question all, am l right in thinking that the dividend will now be reduced by 2/7th? i.e. from 4.5p to about 3.2p? There's obviously 2 less aircrafts on lease now.
@AlexHodler there is DNA3 still in play. Same sort of deal but with greater longevity.
THANKS THAT S CLEARER NOW SO ALL OPTIONS ARE ON THE TABLE FOR FUTURE INVESTMENTS
Just to follow up on this, copied here the text from the interim report released today:
"Liquidation Resolution
Although the Company does not have a fixed life, the Articles require that the Directors convene a general meeting of the Company in June 2025 where an ordinary resolution will be proposed that the Company proceed to an orderly wind-up. In the event that the liquidation resolution is not passed, the Directors will consider alternatives for the future of the Company, including re-leasing the Assets, or selling the Assets and reinvesting the capital received from the sale of the Assets in other aircraft."
It will be wound up and all proceeds returned to shareholders by about this time next year. I haven't gone back to check the documentation, but I'd assume there will be some management fees / carry to be paid from final proceeds; I'd also assume that if they wanted to extend the life, they'd need shareholder approval to do so.
Sorry, my message was in fact not very well worded and puncuated. We stil have about one year and gradually all the airplanes will be out of lease and hopefully sold at a decent price. Will Doric Nimrod die out or continue to exist leasing other airplanes and offering new shares to existing sharolders ? this is the first time I invest in such company and i have no experience on the life end.
I'm not sure I entirely follow the question. I don't expect DNA2 to re-lease the aircraft, this journey is coming to an end. It's possible that there are / will be other funds that acquire A380s (inc from Doric) and are able to re-lease them, but I would expect at this point, even if the airlines see the type flying into the 2040s, that they take ownership of them as Emirates have been doing thus far. Perhaps if they see a need to raise capital they could sell and lease back down the road, I'm not sure. If Doric can achieve similar prices for the remaining aircraft, I'd be pretty happy.
I think now we have a good estimationon the potential next sale value, i would imagine that there will be no change or minimal change on the payment of the capital returned, i would state that buying the shares below 1.15 is a bargain, does anyone know if new issued airplane leasing funds are released, they recently had the Air show and mentioned long lists of airplane beng acquired, I would imagine that some of them would be leased though a private fund. thank to anyone for the feed back.
OK, so now it's a bit clearer (to me at least) how the final redemption process will work, from today's announcement. With two aircraft sold, 2/7ths of our shares will be redeemed in the next week and repaid at £1.20 per share. That will leave 5/7ths to continue receiving the 4.5p dividend, and then presumably in due course as the remaining five aircraft are sold, the process will be repeated as many times as necessary, with the redemption at whatever price is achieved for the remaining aircraft.
I had assumed that they would do this all in one go at the back end of next year, but it makes sense to return capital to shareholders more quickly and allow them to decide what to do with it, rather than the firm sitting on it for the best part of a year.
Got it last thing yesterday from HL
Still no sign of divi - I’m with Jarvis. Anyone had theirs yet?
HL very slow in paying - anyone got theirs yet?
Q3 update issued today - appraisal value amended to US$257m, which implies US$37m per aircraft for the remaining five. Including distributions and at 1.22 xrate, that equates to 155p per share.
Sorry, in my head I had 8 aircraft but of course it's 7, but still not far off the full appraisal value (and I was working on -75% as my base case).
Interestingly, the asset sale price of US$35m is bang in line with the appraisal value of US$280m included in the latest quarterly update (appraisal from March this year). It's a better outcome than I expected.
Yes - not a shabby start and great for dna3 and Amedeo as well 😀
He sale proceeds to be paid by Emirates to the Company are £28.9m in respect of each Asset, (equivalent to US$35m, an aggregate combined total of US$70m for the two Assets).
Result :)
Yes it’s coming. It will be more than $12m I think. The wording was “ Emirates will pay the sum of USD 12,000,000 to the Company's Subsidiary, in addition to the normal monetary compensation arrangements, on or prior to the lease expiry date”. But yes 9 days left and counting.