Amedeo Air Four Plus (AA4) H1 2025 earnings summary

Executive summary

• Share price rose from 51.70p (Sep 2024) to 54.20p (Dec 2024), with a 33% total return over 12 months, outperforming the FTSE 100's 12% rise.

• Market cap increased from £157m (Sep 2024) to £165m (Dec 2024); strong cash position and reserves maintained.

• Portfolio consists of six A380-800s, two 777-300ERs (leased to Emirates), and four A350-900s (leased to Thai Airways).

• No new investments planned; focus on returning surplus capital to shareholders after cash needs assessment.

• Positive developments for Thai Airways' emergence from bankruptcy and robust performance from Emirates.

Financial highlights

• Rental income: £89.9m (H1 2024), down from £91.2m (H1 2023).

• Net loss: £3.2m (H1 2024) vs. net profit of £23.0m (H1 2023), mainly due to a £15.9m fair value loss on derivatives (vs. £11.1m gain in H1 2023).

• EPS: (1.07)p (H1 2024) vs. 7.56p (H1 2023).

• Net asset value per share: 101.2p (Sep 2024) vs. 111.5p (Mar 2024).

• Dividends paid: 4.0p per share (H1 2024), up from 3.5p per share (H1 2023).

Outlook and guidance

• Lease rates for Emirates fixed until expiry; Thai Airways leases extended to at least 2029.

• Aircraft values and lease rates have increased, but signs of leveling off are emerging.

• 2025 expected to be a busy year with first A380 lease expiry approaching and Thai Airways' restructuring progress.

• No adverse impact from macroeconomic or geopolitical events; continued timely rent receipts.