Member Info for jun_man

I need to get myself a lake of politeness, it sounds quite serene

Has anyone seen a forward-looking financial calendar? Trying to work out when the next results will be and can't find anything. Presumably it will be the SEC Q3 filing, and I guess they'll need to put it out either after NYSE market close, or pre-market in the UK. TIA.

Out today - usual combination of bullish commentary together with numbers that communicate a more 'steady as she goes' picture. Still seems that everything is moving in the right direction.

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.

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.

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.

@Kipper9

Assuming you are referring to the FSCS, that doesn't apply to shares.

I wasn't minded to round, but with the price at this level, I just couldn't resist adding another £1k's worth and took the opportunity to round off. I still don't see any change in the investment case here, and I expect this to re-rate within the next six months. GLA.

FWIW I also voted no. The inefficiencies on dividend reinvestment caused by the rounding on the higher share price just irritates me in general (not unique to DEC, it irritated me with GSK as well), and I've been through London de-listings before and it is a pain in the neck. I also think it's perfectly feasible for the share price to grow without the US listing. That being said, I'm fairly certain the motions will be passed.

Rounded down and cash payment for the remainder

Yeah and if you believe that you'll believe anything. As Trek has noted, these structures are expensive and unnecessary for a company of DEC's size. They have to say they'll maintain the listing (for now) to get people to vote for it, but once the DIs are trading, there is no reason for them to keep the UK listing.

Ha! Yes, sorry bad maths - doh!

UK shareholders won't hold DIs unless they buy them on the NYSE. The only thing that will happen is the number of shares you hold will be reduced by a factor of 20 (so if you have 1,000 shares today, these will be replaced by 200 shares. The share price will be increased by a factor of 20, so the value of your holding won't change).

Separately, I think this is a whole lot of bad news for UK retail shareholders. I get the reasons why the company is doing it, but the share consolidation is bad for smaller holders who re-invest income (due the rounding inefficiencies created from the consolidation) and as Trek notes, the UK de-listing will follow (I'd guess within 12 months), so then dealing costs will increase, as dealing will only be available via NYSE. DEC is also widely held by UK investment trusts and income funds, who will likely need to sell when the shares are de-listed in the UK.

It's also put mgmt back in the incompetent camp for me. Announcing on 5th October that you've shelved plans for a US listing, only to announce them on 15th November? That is amateur hour. Thankfully they are better at the day job.

It means it gets paid down on an ongoing basis (like a repayment mortgage). The alternative is a bullet repayment at the end of the term (like an interest only mortgage). I would suggest that amortising repayment is less common in the large cap world (most bond issues are repaid at term), so as others have suggested, I'd put this within the 'sound financial management' category of debt structuring.

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 agreed. The Sixth Street deal was needed at the time, but very expensive debt, very pleased to read this today.