First Quarter 2019 Earnings Call - static.seekingalpha.com

of 28 /28
First Quarter 2019 Earnings Call May 2, 2019

Transcript of First Quarter 2019 Earnings Call - static.seekingalpha.com

1FIRST QUARTER 2018 EARNINGS CALLbull 05032018

First Quarter 2019Earnings Call

May 2 2019

2FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Forward-Looking Statements Property of Aircastle

All statements included or incorporated by reference in this presentation other than characterizations of historical fact are forward-looking statementswithin the meaning of the federal securities laws including the Private Securities Litigation Reform Act of 1995 Examples of forward-looking statementsinclude but are not necessarily limited to statements relating to our ability to acquire sell lease or finance aircraft raise capital pay dividends and increaserevenues earnings EBITDA Adjusted EBITDA Adjusted Net Income Cash Return on Equity and Net Cash Interest Margin and the global aviation industry andaircraft leasing sector Words such as ldquoanticipatesrdquo ldquoexpectsrdquo ldquointendsrdquo ldquoplansrdquo ldquoprojectsrdquo ldquobelievesrdquo ldquomayrdquo ldquowillrdquo ldquowouldrdquo ldquocouldrdquo ldquoshouldrdquo ldquoseeksrdquoldquoestimatesrdquo and variations on these words and similar expressions are intended to identify such forward-looking statements These statements are based onour historical performance and that of our subsidiaries and on our current plans estimates and expectations and are subject to a number of factors thatcould lead to actual results materially different from those described in the forward-looking statements Aircastle can give no assurance that its expectationswill be attained Accordingly you should not place undue reliance on any such forward-looking statements which are subject to certain risks anduncertainties that could cause actual results to differ materially from those anticipated as of the date of this presentation These risks or uncertaintiesinclude but are not limited to those described from time to time in Aircastlersquos filings with the SEC and previously disclosed under ldquoRisk Factorsrdquo in Item 1A ofAircastlersquos 2018 Annual Report on Form 10-K In addition new risks and uncertainties emerge from time to time and it is not possible for Aircastle to predictor assess the impact of every factor that may cause its actual results to differ from those contained in any forward-looking statements Such forward-lookingstatements speak only as of the date of this presentation Aircastle expressly disclaims any obligation to revise or update publicly any forward-lookingstatement to reflect future events or circumstances

The information contained herein is the property of Aircastle and shall not be disclosed copied distributed or transmitted or used for any purpose withoutthe express written consent of Aircastle

3FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Acquired fourteen aircraft during the first quarter for $445 million Committed to acquire twelve additional aircraft in 2019 for $385 million

2019 acquisitions are all modern in-demand narrow-body aircraft

Sold four aircraft and reclassified two others as direct financing and sales-type leases for gains of $120 million

Repurchased $87 million of our common shares to date at an average price of $1757 per shareAverage Q119 share price of $1991 was 133 higher

Declared our 52nd consecutive quarterly dividend

Committed leases for Ten A320 aircraft repossessed from Avianca Brazil transitioning to LATAM Airlines Group SA and

Seven 737 family aircraft previously leased with Jet Airways

Q119 Highlights

4FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Key Financial Metrics ndash Q119

Net income was $348 million versus $575 million in Q118$046 per diluted common share versus $073 the previous year

Adjusted net income1 was $396 million versus $568 million in Q118

$052 per diluted common share versus $072 the previous yearAdjusted diluted EPS was above FactSet consensus EPS estimate of $046 for Q119

Adjusted EBITDA1 was $1993 million versus $1911 million the prior year

Cash ROE1 was 118 and Net cash interest margin1 was 73The bankruptcies of Avianca Brazil and Jet Airways reduced annualized net cash interest margin by approximately 85bps in Q119

1 Refer to the selected financial Information accompanying this presentation for a reconciliation of GAAP to Non-GAAP numbers

5FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Q119 Revenue Summary

Lease rental revenues of $1897 million up $28million vs Q118

Increase was driven by net fleet growth

Q119 rental revenues were $159 million lower due to the bankruptcies of Avianca Brazil and Jet Airways

Gain on sale up $62 millionSale of four aircraft resulted in a gain on sale of $83 million

$37 million of gain on sale due to reclassification of two other aircraft as direct financing and sales-type leases

Maintenance revenue of $164 million up $44 million due to transitions

Revenue Summary

$ in millions Q119 Q118

Lease Rental and Direct Financing and Sales-Type Lease Revenues $1897 $1869

Amortization of Lease Premiums Discounts and Incentives (57) (31)

Maintenance Revenue 164 120

Total Lease Revenue 2004 1958

Gain on Sale of Flight Equipment 120 58

Other Revenue 16 11

Total Revenues $2139 $2027

6FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Q119 Earnings Summary

Net income decreased $227million versus Q118 adjusted net income down $171 million

Primarily driven by $159 million of unrecognized rental revenue from Avianca Brazil and Jet Airways

Adjusted EBITDA was $1993million up $82 million from Q118

Reflects higher revenues of $112 million partially offset by higher maintenance and other costs of $64 million

Earnings Summary

$ in millions except per share amounts Q119 Q118

Net Income $348 $575

per diluted common share $046 $073

Adjusted Net Income1 $396 $568

per diluted common share $052 $072

EBITDA1 $1918 $1919

Adjusted EBITDA1 $1993 $1911

1 Refer to the selected financial Information accompanying this presentation for a reconciliation of GAAP to Non-GAAP numbers

7FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Q119 Acquisitions amp Sales

Acquired fourteen aircraft in Q119 for $445 million

Committed to acquire twelve additional aircraft for $385 million in 2019

Sold four aircraft for gain on sale of $83 million recognized $37 million of gains from the reclassification of two aircraft as direct financing and sales-type leases

Our 2019 placement task is nearly complete confirmed leases signed for ten Avianca Brazil A320s and seven Jet 737 family aircraft

Q119 Acquisitions amp Sales

Acquisitions1 Completed Sales

Investments Sales Proceeds $445 million $56 million

Total Number of Aircraft 14 4

1 Closed deals only through March 31 2019

8FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Robust Portfolio Management with an Active Asset Strategy

274 aircraft owned and managed at Q119

Since 2015

Acquired 227 aircraft

Sold 116 aircraft

Generated $201 million gains from sales and net proceeds of $25 billion

46

6068

39

14

31 3037

14

4

0

10

20

30

40

50

60

70

80

2015 2016 2017 2018 Q119

Num

ber o

f airc

raft

Purchases Sales

9FIRST QUARTER 2019 EARNINGS CALLbull 05022019

73 of the fleet now consists of more liquidnarrow-body aircraft

versus 36 five years ago

36

49

15

NBs WBs Freighters Classics

73

23

4

NBs WBs Freighters

9336

23

NBs WBs Freighters Classics

229

26

4

NBs WBs Freighters

Fleet EvolutionSignificant Fleet Risk Reduction

Since Q115 the number of wide-body freighter

and classic aircraft declined from a total of 59 aircraft to 30 aircraft

Q115 Aircraft Count Q119 Aircraft Count

Q115 Fleet Type (By NBV) Q119 Fleet Type (By NBV)

Aircastle continues to add in-demand narrow-bodies to the Companyrsquos fleet

10FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Portfolio Metrics

Since Q115 expanded owned fleet at a compound annual growth rate of 71

$ in billions Q115 Q119 Q119 vs Q115

Flight Equipment Held for Lease1 $58 $76 + $18

Wtd Avg Fleet Age (years)2 83 94 + 11

Wtd Avg Lease Term (years)2 56 45 - 11

Managed JV Aircraft1 $05 $07 + $02

1 Calculated using NBV at period end2 Weighted average by NBV

NBV as used throughout this presentation includes the net book value of flight equipment held for lease and the net investment in direct financing and sales-type leases

11FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Diversified Customer Base with Broad Geographic Distribution

86 airline customers in 47countries across the globe

Most top customers are large flag carriers and leading LCCs

Balanced distribution of the aircraft fleet by geographic region

Asia represents 37 of portfolio NBV followed by Europe at 29

South America represents 10 North America 9

Top Ten Lessees of NBV1 per

customer Customer Country Aircraft

gt6 IndiGo India 17

3-6

Lion Air Indonesia 11

LATAM Chile 3

TAP Portugal Portugal 8

Iberia Spain 15

SAA SouthAfrica 4

easyJet UnitedKingdom 20

Jeju Air SouthKorea 9

lt3Aerolineas Argentinas Argentina 5

Interjet Mexico 11

1 As of March 31 2019

Top Ten Countries

Country AC of NBV1

India 28 122

Indonesia 15 66

Russia 11 60

United Kingdom 30 52

South Korea 14 51

Portugal 8 45

Chile 3 44

USA 15 42

Mexico 16 42

Spain 16 41

12FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Leasing Activity and Portfolio Performance

Note Aircraft on-lease days as a percent of total days in period weighted by NBV

937 utilization during Q119 was below trend primarily due to the bankruptcies of Avianca Brazil and Jet Airways

We expect these aircraft to return to service in mid Q219 with utilization to begin normalizing

Three aircraft remaining to be sold or placed in 2019 represents 15 of NBV

Utilization Performance

Utilization has averaged 988 since Q115

80

82

84

86

88

90

92

94

96

98

100

Q1

15

Q1

16

Q1

17

Q1

18

Q1

19

13FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Rental Yields and Net Cash Interest Margins

Approximately 85bps of the reduction reflects unrecognized rental revenue from AviancaBrazil and Jet Airways

105 lease rental yield 12 and 73 net cash interest margin1

114 pro-forma3 lease rental yield12 81 and net cash interest margin13

We expect the net cash interest margin to rebound in the second half of 2019 as the Avianca Brazil and Jet Airways aircraft return to revenue service

0

2

4

6

8

10

12

14

Q1

15

Q2

15

Q3

15

Q4

15

Q1

16

Q2

16

Q3

16

Q4

16

Q1

17

Q2

17

Q3

17

Q4

17

Q1

18

Q2

18

Q3

18

Q4

18

Q1

19

Pro-

form

aQ

119

Lease Rental Yield Net Cash Interest Margin

105

73

1 Refer to the selected financial Information accompanying this presentation for a reconciliation of GAAP to Non-GAAP numbers

2 Lease Rental Yield = Operating and finance lease rental revenue plus direct financing and sales-typelease collections average monthly NBV including direct financing and sales-type leases for the period calculated on a quarterly basis annualized

3 Adds back $159 million of lease rental revenue in Q119 to show the impact of the bankruptcies of Avianca Brazil and Jet Airways on Lease Rental Yield and Net Cash Interest Margin

1 2 13

Pro-forma 23

114

Pro-forma 13

81

14FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Cash ROE Performance

Q119 118

AVG 140

Trailing twelve month Cash ROE1 was 118 versus 160 a year ago

GAAP ROE of 114

Cash flow from operations of $5100 million was $248million lower for LTM ended Q119 versus comparable period a year earlier

Q119 Pro-forma Cash ROE including unrecognized rental revenue of $159 million associated with Avianca Brazil and Jet Airways bankruptcies approximates 1262

1 Refer to the selected financial Information accompanying this presentation for a reconciliation of GAAP to Non-GAAP numbers

2 Adds $159 million of lease rental revenue to the last twelve months Cash Flow From Operations to show the estimated impact of the bankruptcies of AviancaBrazil and Jet Airways on Cash ROE

0

2

4

6

8

10

12

14

16

18

Q1

15

Q2

15

Q3

15

Q4

15

Q1

16

Q2

16

Q3

16

Q4

16

Q1

17

Q2

17

Q3

17

Q4

17

Q1

18

Q2

18

Q3

18

Q4

18

Q1

19

Cash

Ret

urn

on A

vera

ge S

hare

hold

errsquos

Equ

ity

15FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Q119 Capital Structure

Strong liquidity profile and low financial leverage minimal forward commitments

Net debt to equity of 24x84 of total debt was unsecured at quarter-end

Average remaining life of debt is 32 years$500 million note matures in 2019

$705 million in available revolver capacity $375 million drawn from a total of $108 billionUnrestricted cash of $93 million

$63 billion of unencumbered flight equipment ndash 228 aircraft

16FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Selected Financial Guidance Elements for Q219

Guidance Item Q219

Lease rental revenue1 $186 - $190

Direct financing and sales-type lease revenue $8 - $9

Amortization of lease premiums discounts and incentives $(5) - $(6)

Maintenance revenue2 $16 - $20

Gain on sale $4 - $8

Depreciation $87 - $90

Interest net $66 - $69

SGampA3 $18 - $19

Full year effective tax rate 7 - 9

1 Reflects the return to service of Avianca Brazil and Jet Airways aircraft commencing in Q219 2 Includes $101M of net maintenance revenue (maintenance reserves net of a transactional impairment) in connection with the early return of seven aircraft from Jet Airways3 Includes $32M of non-cash share based payment expense

17FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Appendix

18FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Q119 Capital Structure amp Liquidity Summary

Note The debt totals in the above table do not include debt issuance costs or discounts which are reflected in the net debt totals that are displayed on the consolidated balance sheet

Aircastles Capital Structure

As of Mar 31 2019 As of Dec 31 2018 As of Dec 31 2017($ in millions)Unrestricted cash and cash equivalents $ 93 $ 153 $ 212 Debt O S Rate1 O S Rate1 O S Rate1

ECA Term Financings 179 358 189 358 227 359Bank Financings 603 464 620 473 635 368

Total Secured Debt 783 440 809 446 863 365

Senior Notes due 2018 - - - - 400 463Senior Notes due 2019 500 625 500 625 500 625Senior Notes due 2020 300 763 300 763 300 763Senior Notes due 2021 500 513 500 513 500 513Senior Notes due 2022 500 550 500 550 500 550Senior 500 Notes due 2023 500 500 500 500 500 500Senior 440 Notes due 2023 650 440 650 440 - -Senior Notes due 2024 500 413 500 413 500 413Bank Revolvers 375 399 425 401 175 368Other Unsecured Bank Financings 335 424 120 434 120 359

Total Unsecured Debt 4160 506 3995 510 3495 521

Total Debt and Weighted Avg Rate 4943 496 4804 499 4358 490Shareholdersrsquo equity 2013 2009 1908 Total capitalization $ 6956 $ 6812 $ 6265

Net debt to equity 24 x 23 x 22 xUnsecured debt to total debt 84 83 80

19FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Supplemental Financial Information

Three Months Ended

March 31in thousands except per share amounts 2019 2018

Revenues $ 213927 $ 202680

EBITDA $ 191817 $ 191941

Adjusted EBITDA $ 199347 $ 191145

Net income $ 34810 $ 57547Net income allocable to common shares $ 34609 $ 57232

Per common share - Basic $ 046 $ 073Per common share - Diluted $ 046 $ 073

Adjusted net income $ 39616 $ 56751Adjusted net income allocable to common shares $ 39387 $ 56440

Per common share - Basic $ 053 $ 072Per common share - Diluted $ 052 $ 072

Basic common shares outstanding 74704 78367Diluted common shares outstanding 75274 78595

20FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Reconciliation of GAAP to Non-GAAP Measures ndash EBITDA and Adjusted EBITDA

We define EBITDA as income (loss) from continuing operations before income taxes interest expense and depreciation and amortization We use EBITDA to assess our consolidated financial and operating performance and we believe this non-US GAAP measure is helpful in identifying trends in our performance

This measure provides an assessment of controllable expenses and affords management the ability to make decisions which are expected to facilitate meeting current financial goals as well as achieving optimal financial performance It provides an indicator for management to determine if adjustments to current spending decisions are needed

EBITDA provides us with a measure of operating performance because it assists us in comparing our operating performance on a consistent basis as it removes the impact of our capital structure (primarily interest charges on our outstanding debt) and asset base (primarily depreciation and amortization) from our operating results

Accordingly this metric measures our financial performance based on operational factors that management can impact in the short-term namely the cost structure or expenses of the organization EBITDA is one of the metrics used by senior management and the board of directors to review the consolidated financial performance of our business

We define Adjusted EBITDA as EBITDA (as defined above) further adjusted to give effect to adjustments required in calculating covenant ratios and compliance as that term is defined in the indenture governing our senior unsecured notes Adjusted EBITDA is a material component of these covenants

2019 2018

Net income $ 34810 $ 57547

Depreciation 84735 75002

Amortization of lease premiums discounts and incentives 5711 3128

Interest net 63463 57108

Income tax provision 3098 (844)

EBITDA 191817 191941

Adjustments

Equity share of joint venture impairment 2724 -

Non-cash share based payment expense 2726 2378

(Gain) loss on MTM of interest rate derivative contracts 2080 (3174)

Adjusted EBITDA $ 199347 $ 191145

Three Mos Ended Dec 31

(Dollars in thousands)

Sheet1

Sheet2

Sheet3

21FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Reconciliation of GAAP to Non-GAAP Measures ndash Adjusted Net Income

Management believes that ANI when viewed in conjunction with the Companyrsquos results under US GAAP and the above reconciliation provides useful information about operating and period-over-period performance and provides additional information that is useful for evaluating the underlying operating performance of our business without regard to periodic reporting elements related to interest rate derivative accounting changes related to refinancing activity and non-cash share based payment expense

1 Included in Other income (expense)2 Included in Selling general and administrative expenses

Net Income Loss on mark-to-market of interest rate derivative contracts(1)

Non-cash share-based payment expense(2)

Adjusted Net Income2726 2378

39616$ 56751$

For the Three Months Ended March 31

2019 2018

34810$ 57547$ 2080 (3174)

Sheet1

22FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Reconciliation of GAAP to non-GAAP Measures - Cash Earnings and Cash ROE

Note LTM Average Shareholdersrsquo Equity is the average of the most recent five quarters period end Shareholdersrsquo Equity Management believes that the cash return on equity metric (ldquoCash ROErdquo) when viewed in conjunction with the Companyrsquos results under US GAAP and the above reconciliation provide useful information about operating and period-over-period performance and provide additional information that is useful for evaluating the underlying operating performance of our business without regard to periodic reporting impacts related to non-cash revenue and expense items and interest rate derivative accounting while recognizing the depreciating nature of our assets To reflect the expected sale of the assets in one of our joint ventures and to simplify the presentation of Cash ROE we are no longer adjusting for joint venture distributions in excess ofless than joint venture earnings recorded under the equity method of investment accounting

Pro-forma Q119 estimates the impact of the Avianca Brazil and Jet Airways bankruptcies on Cash ROE by adding $159 million to Cash Flow From Operations in the first quarter of 2019

Dollars in thousands

LTM Ended CFFO +Gain on Sale

of Eqt - Deprec =Cash

Earnings

Average Shareholders

Equity

Trailing 12 Month Cash

ROEQ115 $498536 $28289 $300284 $226541 $1682857 135Q116 $525569 $64597 $320584 $269582 $1769981 152Q117 $499768 $27052 $307743 $219077 $1804573 121Q118 $534771 $60176 $294492 $300455 $1881633 160Q119 $510008 $43000 $320583 $232425 $1976235 118

Pro-forma Q119 $525899 $43000 $320583 $248316 $1976235 126

23FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Net Cash Interest Margin Calculation

1 We define net cash interest margin as lease rentals from operating leases interest income and cash collections from direct financing and sales-type leases minus interest on borrowings net settlements on interest rate derivatives and other liabilities adjusted for loan termination payments divided by the average net book of flight equipment (which includes net investment in direct financing and sales-type leases) for the period calculated on a quarterly and annualized basis The second quarter of 2017 excludes a non-recurring $70 million accelerated collection received from a lessee in connection with a finance lease

2 Excludes loan termination payments of $15 million and $35 million in the first quarter and fourth quarter of 2016 respectively and loan termination payments of $10 million in both the second and third quarters of 2017 and an $08 million loan termination gain in the third quarter of 2018

Management believes that net cash interest margin when viewed in conjunction with the Companyrsquos results under US GAAP and the above reconciliation provides useful information about the effective deployment of our capital in the context of the yield on our aircraft assets the utilization of those assets by our lessees and our ability to borrow efficiently

Except for percentages all figures are $ in thousands

3 Pro-forma Q119 estimates the impact of the Avianca Brazil and Jet Airways bankruptcies on annualized net cash interest margin by adding $159 million to quarterly rental revenue in the first quarter of 2019

Average NBV

Quarterly Rental

Revenue1 Cash Interest2

Annualized Net Cash Interest

Margin12

Q115 5743035$ 181027$ 50235$ 91Q215 5967898$ 189238$ 51413$ 92Q315 6048330$ 191878$ 51428$ 93Q415 5962874$ 188491$ 51250$ 92Q116 5988076$ 186730$ 51815$ 90Q216 5920030$ 184469$ 55779$ 87Q316 6265175$ 193909$ 57589$ 87Q416 6346361$ 196714$ 58631$ 87Q117 6505355$ 200273$ 58839$ 87Q217 6512100$ 199522$ 55871$ 88Q317 5985908$ 184588$ 53457$ 88Q417 6247581$ 187794$ 53035$ 86Q118 6700223$ 193418$ 53978$ 83Q218 6721360$ 193988$ 53979$ 83Q318 6787206$ 200354$ 54521$ 86Q418 7136627$ 200027$ 60348$ 78Q119 7449957$ 195601$ 60279$ 73

Pro-forma Q119 7449957$ 211501$ 60279$ 81 33

Summary

Data

Chart in Powerpoint

Chart in Press Release

TABLE

24FIRST QUARTER 2019 EARNINGS CALLbull 05022019

As part of the Companyrsquos adoption of ASC 842 we were required to reclassify collections on direct financing and sales-type leases on our Consolidated Statement of Cash Flows for the three months ended March 31 2019 The presentation for the three months ended March 31 2018 has also been reclassified to conform to the current period presentation

Reclassification of Collections on Direct Financing and Sales-Type Leases

Three Months Ended March 31 2018

Net cash and restricted cash provided by operating activities as previously reported $142412

Collections on direct financing and sales-type leases 6493

Net cash and restricted cash provided by operating activities $148905

25FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Book Value Per Share Calculation

As of Mar 31Shares Issued and Outstanding (000)

Shareholders Equity ($000)

Book Value Per Share Change

2015 81181 $1753552 $2160 172016 78811 $1770884 $2247 402017 78718 $1856084 $2358 492018 78539 $1937454 $2467 462019 75078 $2012939 $2681 87

Q115-Q119 CAGR 56

26FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Supplemental Financial Information

Except for percentages all figures are in thousands1 For the three months ended March 31 2019 distributed and undistributed earnings to restricted shares was 058 of net income and adjusted net income The amount of restricted share

forfeitures for the period presented is immaterial to the allocation of distributed and undistributed earnings2 For all periods presented dilutive shares represented contingently issuable shares

Weighted-average shares Shares Percent2

Common shares outstanding ndash Basic 74704 9942Unvested restricted common shares 435 058Total weighted-average shares outstanding 75138 10000

Common shares outstanding ndash Basic 74704 9924Effect of dilutive shares1 570 076Common shares outstanding ndash Diluted 75274 10000

Net income allocationNet income $ 34810 10000Distributed and undistributed earnings allocated to unvested restricted shares (201) -058Earnings available to common shares $ 34609 9942

Adjusted net income allocationAdjusted net income $ 39616 10000Amounts allocated to unvested restricted shares (229) -058Amounts allocated to common shares $ 39387 9942

Three Months Ended March 31 2019

Sheet1

27FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Supplemental Financial Information

Except for percentages all figures are in thousands1 For the three months ended March 31 2018 distributed and undistributed earnings to restricted shares was 055 of net income and adjusted net income The amount of restricted share

forfeitures for the period presented is immaterial to the allocation of distributed and undistributed earnings2 For all periods presented dilutive shares represented contingently issuable shares

Weighted-average shares Shares Percent2

Common shares outstanding ndash Basic 78367 9945Unvested restricted common shares 431 055Total weighted-average shares outstanding 78798 10000

Common shares outstanding ndash Basic 78367 9971Effect of dilutive shares1 228 029Common shares outstanding ndash Diluted 78595 10000

Net income allocationNet income $ 57547 10000Distributed and undistributed earnings allocated to unvested restricted shares (315) -055Earnings available to common shares $ 57232 9945

Adjusted net income allocationAdjusted net income $ 56751 10000Amounts allocated to unvested restricted shares (311) -055Amounts allocated to common shares $ 56440 9945

Three Months Ended March 31 2018

Sheet1

28FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Limitations of EBITDA Adjusted EBITDA ANI Cash ROE and Net Cash Interest Margin

An investor or potential investor may find EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin important measures in evaluating our performance results of operations and financial position We use these non-US GAAP measures to supplement our US GAAP results in order to provide a more complete understanding of the factors and trends affecting our business

EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin have limitations as analytical tools and should not be viewed in isolation or as substitutes for US GAAP measures of earnings Material limitations in making the adjustments to ourearnings to calculate EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin and using these non-US GAAP measures as compared to US GAAP net income income from continuing operations and cash flows provided by or used in operations include

depreciation and amortization though not directly affecting our current cash position represent the wear and tear andor reduction in value of our aircraft which affects the aircraftrsquos availability for use and may be indicative of future needs for capital expenditures

the cash portion of income tax (benefit) provision generally represents charges (gains) which may significantly affect our financial results

elements of our interest rate derivative accounting may be used to evaluate the effectiveness of our hedging policy

hedge loss amortization charges related to Term Financing No 1 and Securitization No 1 and

adjustments required in calculating covenant ratios and compliance as that term is defined in the indenture governing our seniorunsecured notes

EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin are not alternatives to net income income from operations or cash flows provided by or used in operations as calculated and presented in accordance with US GAAP You should not rely on these non-US GAAP measures as a substitute for any such US GAAP financial measure We strongly urge you to review the reconciliations to US GAAP net income along with our consolidated financial statements included elsewhere in our Annual Report We also strongly urge you to not rely on any single financial measure to evaluate our business In addition because EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin are not measures of financial performance under US GAAP and are susceptible to varying calculations EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin as presented here may differ from and may not be comparable to similarly titled measures used by other companies

  • Slide Number 1
  • Slide Number 2
  • Slide Number 3
  • Slide Number 4
  • Slide Number 5
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
Three Months Ended March 31 2019 Three Months Ended March 31 2019
Weighted-average shares Shares Percent2 Weighted-average shares Shares Percent2
Common shares outstanding ndash Basic 74704 9942 Common shares outstanding ndash Basic 74704 9942
Unvested restricted common shares 435 058 Unvested restricted common shares 435 058
Total weighted-average shares outstanding 75138 10000 Total weighted-average shares outstanding 75138 10000
Common shares outstanding ndash Basic 74704 9924 Common shares outstanding ndash Basic 74704 9924
Effect of dilutive shares1 570 076 Effect of dilutive shares1 570 076
Common shares outstanding ndash Diluted 75274 10000 Common shares outstanding ndash Diluted 75274 10000
Net income allocation Net income allocation
Net income $ 34810 10000 Net income $ 34810 10000
Distributed and undistributed earnings allocated to unvested restricted shares (201) -058 Distributed and undistributed earnings allocated to unvested restricted shares (201) -058
Earnings available to common shares $ 34609 9942 Earnings available to common shares $ 34609 9942
Adjusted net income allocation Adjusted net income allocation
Adjusted net income $ 39616 10000 Adjusted net income $ 39616 10000
Amounts allocated to unvested restricted shares (229) -058 Amounts allocated to unvested restricted shares (229) -058
Amounts allocated to common shares $ 39387 9942 Amounts allocated to common shares $ 39387 9942
Three Months Ended March 31 2018 Three Months Ended March 31 2018
Weighted-average shares Shares Percent2 Weighted-average shares Shares Percent2
Common shares outstanding ndash Basic 78367 9945 Common shares outstanding ndash Basic 78367 9945
Unvested restricted common shares 431 055 Unvested restricted common shares 431 055
Total weighted-average shares outstanding 78798 10000 Total weighted-average shares outstanding 78798 10000
Common shares outstanding ndash Basic 78367 9971 Common shares outstanding ndash Basic 78367 9971
Effect of dilutive shares1 228 029 Effect of dilutive shares1 228 029
Common shares outstanding ndash Diluted 78595 10000 Common shares outstanding ndash Diluted 78595 10000
Net income allocation Net income allocation
Net income $ 57547 10000 Net income $ 57547 10000
Distributed and undistributed earnings allocated to unvested restricted shares (315) -055 Distributed and undistributed earnings allocated to unvested restricted shares (315) -055
Earnings available to common shares $ 57232 9945 Earnings available to common shares $ 57232 9945
Adjusted net income allocation Adjusted net income allocation
Adjusted net income $ 56751 10000 Adjusted net income $ 56751 10000
Amounts allocated to unvested restricted shares (311) -055 Amounts allocated to unvested restricted shares (311) -055
Amounts allocated to common shares $ 56440 9945 Amounts allocated to common shares $ 56440 9945
Three Months Ended March 31 2019 Three Months Ended March 31 2019
Weighted-average shares Shares Percent2 Weighted-average shares Shares Percent2
Common shares outstanding ndash Basic 74704 9942 Common shares outstanding ndash Basic 74704 9942
Unvested restricted common shares 435 058 Unvested restricted common shares 435 058
Total weighted-average shares outstanding 75138 10000 Total weighted-average shares outstanding 75138 10000
Common shares outstanding ndash Basic 74704 9924 Common shares outstanding ndash Basic 74704 9924
Effect of dilutive shares1 570 076 Effect of dilutive shares1 570 076
Common shares outstanding ndash Diluted 75274 10000 Common shares outstanding ndash Diluted 75274 10000
Net income allocation Net income allocation
Net income $ 34810 10000 Net income $ 34810 10000
Distributed and undistributed earnings allocated to unvested restricted shares (201) -058 Distributed and undistributed earnings allocated to unvested restricted shares (201) -058
Earnings available to common shares $ 34609 9942 Earnings available to common shares $ 34609 9942
Adjusted net income allocation Adjusted net income allocation
Adjusted net income $ 39616 10000 Adjusted net income $ 39616 10000
Amounts allocated to unvested restricted shares (229) -058 Amounts allocated to unvested restricted shares (229) -058
Amounts allocated to common shares $ 39387 9942 Amounts allocated to common shares $ 39387 9942
Three Months Ended March 31 2018 Three Months Ended March 31 2018
Weighted-average shares Shares Percent2 Weighted-average shares Shares Percent2
Common shares outstanding ndash Basic 78367 9945 Common shares outstanding ndash Basic 78367 9945
Unvested restricted common shares 431 055 Unvested restricted common shares 431 055
Total weighted-average shares outstanding 78798 10000 Total weighted-average shares outstanding 78798 10000
Common shares outstanding ndash Basic 78367 9971 Common shares outstanding ndash Basic 78367 9971
Effect of dilutive shares1 228 029 Effect of dilutive shares1 228 029
Common shares outstanding ndash Diluted 78595 10000 Common shares outstanding ndash Diluted 78595 10000
Net income allocation Net income allocation
Net income $ 57547 10000 Net income $ 57547 10000
Distributed and undistributed earnings allocated to unvested restricted shares (315) -055 Distributed and undistributed earnings allocated to unvested restricted shares (315) -055
Earnings available to common shares $ 57232 9945 Earnings available to common shares $ 57232 9945
Adjusted net income allocation Adjusted net income allocation
Adjusted net income $ 56751 10000 Adjusted net income $ 56751 10000
Amounts allocated to unvested restricted shares (311) -055 Amounts allocated to unvested restricted shares (311) -055
Amounts allocated to common shares $ 56440 9945 Amounts allocated to common shares $ 56440 9945
Q119 Q418 Q318 Q119 B (W) vs Q418
Average NBV for the 4th and 3rd Quarters of 2018 $ 7449957 $ 7136627 $ 6787206 $ 313330 Average NBV 44 higher Q418 to Q119
Operating and Finance Lease Revenues $ 189676 $ 192711 $ 190836 $ (3034)
Finance Lease Collections $ 5925 $ 7316 $ 9518 $ (1391)
Annualized Portfolio Yield 105 112 118 -07 Annualized yield 71bps lower
Cash Interest Expense $ 60279 $ 60348 $ 54521 $ 69
Annualized Cash Interest 32 34 32 01 Annualized cash int exp 15bps lower
Annualized Cash Net Interest Margin 73 78 86 -06 Annualized cash margin 56bps lower
Average NBV Quarterly Rental Revenue(1) Cash Interest(2) Annualized Net Cash Interest Margin(1)(2) Yield Cash Interest Expense
Q112 $ 4388008 $ 152242 $ 44969 98 139 410
Q212 $ 4542477 $ 156057 $ 48798 94 137 430
Q312 $ 4697802 $ 163630 $ 41373 104 139 352
Q412 $ 4726457 $ 163820 $ 43461 102 139 368
Q113 $ 4740161 $ 162319 $ 48591 96 137 410
Q213 $ 4840396 $ 164239 $ 44915 99 136 371
Q313 $ 4863444 $ 167876 $ 47682 99 138 392
Q413 $ 5118601 $ 176168 $ 49080 99 138 384
Q114 $ 5312651 $ 181095 $ 51685 97 136 389
Q214 $ 5721521 $ 190574 $ 48172 100 133 337
Q314 $ 5483958 $ 182227 $ 44820 100 133 327
Q414 $ 5468637 $ 181977 $ 44459 101 133 325
Q115 $ 5743035 $ 181027 $ 50235 91 126 350
Q215 $ 5967898 $ 189238 $ 51413 92 127 345
Q315 $ 6048330 $ 191878 $ 51428 93 127 340
Q415 $ 5962874 $ 188491 $ 51250 92 126 344
Q116 $ 5988076 $ 186730 $ 51815 90 125 346
Q216 $ 5920030 $ 184469 $ 55779 87 125 377
Q316 $ 6265175 $ 193909 $ 57589 87 124 368
Q416 $ 6346361 $ 196714 $ 58631 87 124 370
Q117 $ 6505355 $ 200273 $ 58839 87 123 362
Q217 $ 6512100 $ 199522 $ 55871 88 123 343
Q317 $ 5985908 $ 184588 $ 53457 88 123 357
Q417 $ 6247581 $ 187794 $ 53035 86 120 340
Q118 $ 6700223 $ 193418 $ 53978 83 115 322
Q218 $ 6721360 $ 193988 $ 53979 83 115 321
Q318 $ 6787206 $ 200354 $ 54521 86 118 321
Q418 $ 7136627 $ 200027 $ 60348 78 112 338
Q119 $ 7449957 $ 195601 $ 60279 73 105 324
Pro-forma Q119 $ 7449957 $ 211501 $ 60279 81 114 324
Average NBV Quarterly Rental Revenue1 Cash Interest2 Annualized Net Cash Interest Margin12 Yield Cash Interest Expense
Q113 $ 4740161 $ 162319 $ 48591 96 137 410
Q213 $ 4840396 $ 164239 $ 44915 99 136 371
Q313 $ 4863444 $ 167876 $ 47682 99 138 392
Q413 $ 5118601 $ 176168 $ 49080 99 138 384
Q114 $ 5312651 $ 181095 $ 51685 97 136 389
Q214 $ 5721521 $ 190574 $ 48172 100 133 337
Q314 $ 5483958 $ 182227 $ 44820 100 133 327
Q414 $ 5468637 $ 181977 $ 44459 101 133 325
Q115 $ 5743035 $ 181027 $ 50235 91 126 350
Q215 $ 5967898 $ 189238 $ 51413 92 127 345
Q315 $ 6048330 $ 191878 $ 51428 93 127 340
Q415 $ 5962874 $ 188491 $ 51250 92 126 344
Q116 $ 5988076 $ 186730 $ 51815 90 125 346
Q216 $ 5920030 $ 184469 $ 55779 87 125 377
Q316 $ 6265175 $ 193909 $ 57589 87 124 368
Q416 $ 6346361 $ 196714 $ 58631 87 124 370
Q117 $ 6505355 $ 200273 $ 58839 87 123 362
Q217 $ 6512100 $ 199522 $ 55871 88 123 343
Q317 $ 5985908 $ 184588 $ 53457 88 123 357
Q417 $ 6247581 $ 187794 $ 53035 86 120 340
Q118 $ 6700223 $ 193418 $ 53978 83 115 322
Q218 $ 6721360 $ 193988 $ 53979 83 115 321
Q318 $ 6787206 $ 200354 $ 54521 86 118 321
Q418 $ 7136627 $ 200027 $ 60348 78 112 338
Q119 $ 7449957 $ 195601 $ 60279 73 105 324
Pro-forma Q119 $ 7449957 $ 211501 $ 60279 81 114 324
NBV FE Fin Lease NBV Flight Equip + Fin Lease Lease Rentals Interest Inc Fin lease Collections on Fin Leases Total Lease Rent Collections Quarterly Lease rent Collections Cash Interest Loan and Contract Termination Fees included in Cash Interest Adj Cash Int NIM $ NIM Yield Cash Int
Month End Month End Month End Mo Avg Qtrly Avg MTD MTD QTD QTD QTD
DEC10 4065780 - 0 4065780
JAN11 3981690 - 0 3981690 4023735 - 0 47091 - 0 - 0 47091 - 0 - 0 - 0
FEB11 4051167 - 0 4051167 4016428 - 0 47264 - 0 - 0 47264 - 0 - 0 - 0
MAR11 4120309 - 0 4120309 4085738 4041967 46761 - 0 - 0 46761 141116 $ 41278 41278 99838 988
APR11 4125377 - 0 4125377 4122843 - 0 47211 - 0 - 0 47211 - 0 - 0 - 0
MAY11 4194987 - 0 4194987 4160182 - 0 47897 - 0 - 0 47897 - 0 - 0 - 0
JUN11 4099641 - 0 4099641 4147314 4143446 48248 - 0 - 0 48248 143356 $ 43217 $ 3196 40021 103335 998
JUL11 4271013 - 0 4271013 4185327 - 0 47994 - 0 - 0 47994 - 0 - 0 - 0
AUG11 4248242 - 0 4248242 4259628 - 0 49193 - 0 - 0 49193 - 0 - 0 - 0
SEP11 4196918 - 0 4196918 4222580 4222512 48704 - 0 - 0 48704 145890 $ 42066 42066 103824 984
OCT11 4430527 - 0 4430527 4313723 - 0 49054 - 0 - 0 49054 - 0 - 0 - 0
NOV11 4401782 - 0 4401782 4416155 - 0 50498 - 0 - 0 50498 - 0 - 0 - 0
DEC11 4387986 - 0 4387986 4394884 4374921 50297 - 0 - 0 50297 149848 $ 43041 43041 106807 977
JAN12 4391666 - 0 4391666 4389826 - 0 51034 - 0 - 0 51034 - 0 - 0 - 0
FEB12 4385360 - 0 4385360 4388513 - 0 49705 - 0 - 0 49705 - 0 - 0 - 0
MAR12 4386010 - 0 4386010 4385685 4388008 51503 - 0 - 0 51503 152242 $ 44969 44969 107273 978
APR12 4484956 - 0 4484956 4435483 - 0 50824 - 0 - 0 50824 - 0 - 0 - 0
MAY12 4570712 31500 4602212 4543584 - 0 51020 - 0 - 0 51020 - 0 - 0 - 0
JUN12 4604493 90024 4694518 4648365 4542477 51781 956 1476 54213 156057 $ 48798 48798 107259 944
JUL12 4572121 90739 4662860 4678689 - 0 52892 963 - 0 53855 - 0 - 0 - 0
AUG12 4665966 90332 4756298 4709579 - 0 52945 948 - 0 53893 - 0 - 0 - 0
SEP12 4532445 121533 4653978 4705138 4697802 53709 1608 565 55881 163630 $ 41373 41373 122257 1041
OCT12 4574055 120934 4694990 4674484 - 0 52277 1311 - 0 53588 - 0 - 0 - 0
NOV12 4645741 120345 4766086 4730538 - 0 52596 1321 - 0 53917 - 0 - 0 - 0
DEC12 4662661 119951 4782612 4774349 4726457 53217 1286 1811 56314 163820 $ 43461 43461 120359 1019
JAN13 4639414 119339 4758753 4770682 - 0 52957 1298 - 0 54255 - 0 - 0 - 0
FEB13 4614480 118707 4733187 4745970 - 0 51936 1277 - 0 53213 - 0 - 0 - 0
MAR13 4544773 129700 4674474 4703830 4740161 51697 1309 1845 54850 162319 $ 48591 48591 113728 960
APR13 4621392 128981 4750373 4712423 - 0 51363 1384 - 0 52747 - 0 - 0 - 0
MAY13 4915814 128237 5044051 4897212 - 0 53613 1359 - 0 54972 - 0 - 0 - 0
JUN13 4651553 127504 4779057 4911554 4840396 52942 1370 2207 56520 164239 $ 47869 $ 2954 44915 119324 986
JUL13 4668642 149932 4818574 4798816 - 0 52469 1372 - 0 53840 - 0 - 0 - 0
AUG13 4690154 149017 4839171 4828873 - 0 53339 1423 - 0 54763 - 0 - 0 - 0
SEP13 4938113 148005 5086118 4962645 4863444 55340 1327 2606 59273 167876 $ 47682 47682 120194 989
OCT13 4913184 147017 5060200 5073159 - 0 56643 1350 - 0 57993 - 0 - 0 - 0
NOV13 5011676 146076 5157752 5108976 - 0 56264 1361 - 0 57625 - 0 - 0 - 0
DEC13 5044410 145173 5189583 5173668 5118601 56367 1333 2850 60550 176168 $ 49080 49080 127088 993
JAN14 5015452 144256 5159708 5174646 - 0 58142 1337 - 0 59478 - 0 - 0 - 0
FEB14 5129035 143356 5272392 5216050 - 0 57572 1354 - 0 58926 - 0 - 0 - 0
MAR14 5679723 142400 5822123 5547257 5312651 58621 1297 2773 62691 181095 $ 51685 51685 129410 974
APR14 5605462 155551 5761013 5791568 - 0 61276 1329 - 0 62604 - 0 - 0 - 0
MAY14 5512769 154435 5667205 5714109 - 0 60998 1338 - 0 62336 - 0 - 0 - 0
JUN14 5577966 72600 5650566 5658886 5721521 60957 1231 3446 65634 190574 $ 48172 48172 142402 996
JUL14 5418990 71971 5490961 5570764 - 0 60509 484 - 0 60993 - 0 - 0 - 0
AUG14 5412453 71345 5483799 5487380 - 0 59617 488 - 0 60105 - 0 - 0 - 0
SEP14 5232940 70723 5303663 5393731 5483958 58760 491 1877 61129 182227 $ 44820 44820 137407 1002
OCT14 5340303 88360 5428663 5366163 - 0 59394 480 - 0 59874 - 0 - 0 - 0
NOV14 5374566 107667 5482233 5455448 - 0 59717 542 - 0 60259 - 0 - 0 - 0
DEC14 5579718 106651 5686369 5584301 5468637 59091 537 2216 61844 181977 $ 44459 44459 137518 1006 1331 325 134 99
JAN15 5642590 105896 5748487 5717428 - 0 59898 539 - 0 60437 - 0 - 0 - 0
FEB15 5623616 105155 5728770 5738628 - 0 58688 552 - 0 59240 - 0 - 0 - 0
MAR15 5712950 104377 5817327 5773049 5743035 58560 516 2274 61350 181027 $ 50235 50235 130792 911 1261 350
APR15 5778092 119625 5897717 5857522 - 0 60016 589 - 0 60605 - 0 - 0 - 0
MAY15 5940205 118903 6059108 5978412 - 0 61684 628 - 0 62311 - 0 - 0 - 0
JUN15 5953555 122855 6076411 6067759 5967898 63140 660 2521 66322 189238 $ 51413 51413 137825 924 1268 345
JUL15 5942037 122200 6064238 6070324 - 0 63838 625 - 0 64463 - 0 - 0 - 0
AUG15 5917660 121542 6039202 6051720 - 0 62322 623 - 0 62945 - 0 - 0 - 0
SEP15 5885807 120882 6006689 6022946 6048330 61877 620 1973 64470 191878 $ 51428 51428 140450 929 1269 340
OCT15 5829040 103074 5932114 5969402 - 0 61959 611 - 0 62570 - 0 - 0 - 0
NOV15 5801167 117861 5919028 5925571 - 0 60485 623 - 0 61108 - 0 - 0 - 0
DEC15 5867062 201211 6068273 5993651 5962874 60949 1072 2791 64812 188491 $ 51250 51250 137241 921 1264 344 127 92
JAN16 5836479 198445 6034923 6051598 - 0 60245 1141 - 0 61387 - 0 - 0 - 0
FEB16 5796230 213436 6009666 6022295 - 0 60098 1161 - 0 61259 - 0 - 0 - 0
MAR16 5558666 212336 5771002 5890334 5988076 59227 1195 3663 64085 186730 $ 53324 1509 51815 134915 901 1247 346
APR16 5654825 211354 5866179 5818591 - 0 58383 1160 - 0 59544 - 0 - 0 - 0
MAY16 5659238 265253 5924490 5895335 - 0 58787 1432 - 0 60218 - 0 - 0 - 0
JUN16 5875935 291903 6167838 6046164 5920030 58955 1582 4170 64707 184469 55779 55779 128690 870 1246 377
JUL16 5980982 290048 6271030 6219434 - 0 60301 1805 - 0 62107 - 0 - 0 - 0
AUG16 6017274 288131 6305405 6288218 - 0 60757 1744 - 0 62501 - 0 - 0 - 0
SEP16 6004489 265854 6270343 6287874 6265175 60917 1805 6580 69301 193909 57589 57589 136320 870 1238 368
OCT16 6025556 264389 6289945 6280144 - 0 61757 1413 63170 - 0 - 0 - 0
NOV16 6097520 262667 6360187 6325066 - 0 62824 1357 64181 - 0 - 0 - 0
DEC16 6246707 260853 6507560 6433874 6346361 62969 1394 5000 69363 196714 62082 3451 58631 138083 870 1240 370 124 88
JAN17 6219012 259264 6478276 6492918 - 0 63296 1359 64655 - 0
FEB17 6227957 257474 6485431 6481853 - 0 63575 1288 64863 - 0
MAR17 6297190 299969 6597159 6541295 6505355 63715 1426 5614 70755 200273 58839 58839 141434 870 1231 362
APR17 6269189 348327 6617516 6607338 64119 1814 65933
MAY17 6156371 377186 6533557 6575537 63186 2079 65265
JUN17 5818821 354474 6173295 6353426 6512100 61794 1985 4545 68324 199522 56859 988 55871 143651 882 1226 343
JUL17 5615695 352411 5968106 6070700 59464 1954 61418
AUG17 5523543 390140 5913683 5940895 56603 1917 58520
SEP17 5490164 488408 5978572 5946128 5985908 55621 2541 6488 64650 184588 54527 1070 53457 131131 876 1233 357
OCT17 5493432 549212 6042644 6010608 55282 2833 58115
NOV17 5789587 554117 6343704 6193174 56823 3248 60071
DEC17 6188469 545750 6734219 6538962 6247581 57826 3272 8511 69609 187794 53035 53035 134759 863 1202 340 122 87
JAN18 6163924 543311 6707235 6720727 59570 3212 62782
FEB18 6173766 514024 6687790 6697513 59177 3007 62184
MAR18 6143695 533373 6677067 6682429 6700223 58736 3222 6493 68451 193418 53978 53978 139440 832 1155 322
APR18 6120068 531077 6651145 6664106 58481 2936 61417
MAY18 6257826 528503 6786329 6718737 59975 3015 62990
JUN18 6249406 526738 6776144 6781236 6721360 60030 2918 6634 69582 193988 53979 53979 140009 833 1154 321 12 MONTH CALCULATION
JUL18 6261431 523491 6784922 6780533 60815 2990 63804 Yield NIM
AUG18 6250137 519066 6769203 6777062 60517 2927 63444 2014 134 99
SEP18 6321623 517221 6838844 6804023 6787206 60712 2876 9518 73106 200354 53683 -838 54521 145833 859 1181 321 2015 127 92
OCT18 6602809 515251 7118060 6978452 62875 2742 65617 2016 124 88
NOV18 6657588 512429 7170017 7144039 61402 2610 64012 2017 122 87
DEC18 6935585 469180 7404765 7287391 7136627 60405 2677 7316 70398 200027 60348 60348 139679 783 1121 338 115 83 2018 115 83
JAN19 6900489 509725 7410214 7407489 59462 2959 62421 LTM Q119 112 80
FEB19 6907294 507653 7414948 7412581 62458 2701 65158
MAR19 7138689 505964 7644653 7529800 7449957 59314 2783 5925 68022 195601 60279 60279 135322 727 1050 324 112 80
wCollections on Finance Leases 2019 2018 2017
Finance Lease Collections Finance Lease Collections Finance Lease Collections
Yield Cash Interest Net Spread Avg NBV Lease Rent Interest YTD 5925 YTD 29961 YTD 32184
Q117 1231 362 870 6505355 200273 $ 58839 Q119 5925 Q118 6493 Q117 5614
Q119 1050 324 727 7449957 195601 60279 Q219 Q218 6634 Q217 11571
-181 -038 -143 Change 145 -23 24 Q319 Q318 9518 Q317 6488
Q419 Q418 7316 Q417 8511
Yield Cash Interest Net Spread Avg NBV Lease Rent Interest Finance Lease Revenue Finance Lease Revenue Finance Lease Revenue
Q118 1155 322 832 6700223 193418 53978 Q119 8442 Q418 8029 Q417 9353
Q119 1050 324 727 7449957 195601 60279 January 2959 October 2742 October 2833
-104 001 -106 Change 112 11 117 February 2701 November 2610 November 3248
March 2783 December 2677 December 3272
Yield Cash Interest Net Spread Avg NBV Lease Rent Interest
Q418 1121 338 783 7136627 200027 60348 Collections on Finance Leases excludes $70 million of unusual payments received from KLM in Q217
Q119 1050 324 727 7449957 195601 60279
-071 -015 -056 Change 44 -22 -01
112 w$17mm added to Q119
11 Actual 1050 324 727
Revised 1141 324 818
091 091
wCollections on Finance Leases
Yield Cash Interest Net Spread
Q314 13292 3269 1002
Q316 12380 3677 870
-0911 0408 -132
Yield Cash Interest Net Spread
Q315 12690 3401 929
Q316 12380 3677 870
-0310 0276 -059
Yield Cash Interest Net Spread
Q216 12464 3769 870
Q316 12380 3677 870
-0084 -0092 001
Old Format
Yield Cash Interest Net Spread
Q314 13221 3312 991
Q316 12173 3852 832
-1047 -0540 -159
Yield Cash Interest Net Spread
Q315 12691 3471 922
Q316 12173 3852 832
-0518 -0381 -090
Yield Cash Interest Net Spread
Q216 12409 3930 8479
Q316 12173 3852 8321
Change -0236 0078 -0159
For the Three Months Ended March 31
2019 2018
Net Income $ 34810 $ 57547
(Gain) loss on mark-to-market of interest rate derivative contracts(1) 2080 (3174)
Non-cash share-based payment expense(2) 2726 2378
Adjusted Net Income $ 39616 $ 56751
For the Three Months Ended March 31
2019 2018
Net Income $ 34810 $ 57547
Loss on mark-to-market of interest rate derivative contracts(1) 2080 (3174)
Non-cash share-based payment expense(2) 2726 2378
Adjusted Net Income $ 39616 $ 56751
Three Mos Ended Dec 31
2019 2018
(Dollars in thousands)
Net income $ 34810 $ 57547
Depreciation 84735 75002
Amortization of lease premiums discounts and incentives 5711 3128
Interest net 63463 57108
Income tax provision 3098 (844)
EBITDA 191817 191941
Adjustments
Equity share of joint venture impairment 2724 -
Non-cash share based payment expense 2726 2378
(Gain) loss on MTM of interest rate derivative contracts 2080 (3174)
Adjusted EBITDA $ 199347 $ 191145
Three Mos Ended Dec 31
2019 2018
(Dollars in thousands)
Net income $ 34810 $ 57547
Depreciation 84735 75002
Amortization of lease premiums discounts and incentives 5711 3128
Interest net 63463 57108
Income tax provision 3098 (844)
EBITDA 191817 191941
Adjustments
Equity share of joint venture impairment 2724 - 0
Non-cash share based payment expense 2726 2378
(Gain) loss on MTM of interest rate derivative contracts 2080 (3174)
Adjusted EBITDA $ 199347 $ 191145

2FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Forward-Looking Statements Property of Aircastle

All statements included or incorporated by reference in this presentation other than characterizations of historical fact are forward-looking statementswithin the meaning of the federal securities laws including the Private Securities Litigation Reform Act of 1995 Examples of forward-looking statementsinclude but are not necessarily limited to statements relating to our ability to acquire sell lease or finance aircraft raise capital pay dividends and increaserevenues earnings EBITDA Adjusted EBITDA Adjusted Net Income Cash Return on Equity and Net Cash Interest Margin and the global aviation industry andaircraft leasing sector Words such as ldquoanticipatesrdquo ldquoexpectsrdquo ldquointendsrdquo ldquoplansrdquo ldquoprojectsrdquo ldquobelievesrdquo ldquomayrdquo ldquowillrdquo ldquowouldrdquo ldquocouldrdquo ldquoshouldrdquo ldquoseeksrdquoldquoestimatesrdquo and variations on these words and similar expressions are intended to identify such forward-looking statements These statements are based onour historical performance and that of our subsidiaries and on our current plans estimates and expectations and are subject to a number of factors thatcould lead to actual results materially different from those described in the forward-looking statements Aircastle can give no assurance that its expectationswill be attained Accordingly you should not place undue reliance on any such forward-looking statements which are subject to certain risks anduncertainties that could cause actual results to differ materially from those anticipated as of the date of this presentation These risks or uncertaintiesinclude but are not limited to those described from time to time in Aircastlersquos filings with the SEC and previously disclosed under ldquoRisk Factorsrdquo in Item 1A ofAircastlersquos 2018 Annual Report on Form 10-K In addition new risks and uncertainties emerge from time to time and it is not possible for Aircastle to predictor assess the impact of every factor that may cause its actual results to differ from those contained in any forward-looking statements Such forward-lookingstatements speak only as of the date of this presentation Aircastle expressly disclaims any obligation to revise or update publicly any forward-lookingstatement to reflect future events or circumstances

The information contained herein is the property of Aircastle and shall not be disclosed copied distributed or transmitted or used for any purpose withoutthe express written consent of Aircastle

3FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Acquired fourteen aircraft during the first quarter for $445 million Committed to acquire twelve additional aircraft in 2019 for $385 million

2019 acquisitions are all modern in-demand narrow-body aircraft

Sold four aircraft and reclassified two others as direct financing and sales-type leases for gains of $120 million

Repurchased $87 million of our common shares to date at an average price of $1757 per shareAverage Q119 share price of $1991 was 133 higher

Declared our 52nd consecutive quarterly dividend

Committed leases for Ten A320 aircraft repossessed from Avianca Brazil transitioning to LATAM Airlines Group SA and

Seven 737 family aircraft previously leased with Jet Airways

Q119 Highlights

4FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Key Financial Metrics ndash Q119

Net income was $348 million versus $575 million in Q118$046 per diluted common share versus $073 the previous year

Adjusted net income1 was $396 million versus $568 million in Q118

$052 per diluted common share versus $072 the previous yearAdjusted diluted EPS was above FactSet consensus EPS estimate of $046 for Q119

Adjusted EBITDA1 was $1993 million versus $1911 million the prior year

Cash ROE1 was 118 and Net cash interest margin1 was 73The bankruptcies of Avianca Brazil and Jet Airways reduced annualized net cash interest margin by approximately 85bps in Q119

1 Refer to the selected financial Information accompanying this presentation for a reconciliation of GAAP to Non-GAAP numbers

5FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Q119 Revenue Summary

Lease rental revenues of $1897 million up $28million vs Q118

Increase was driven by net fleet growth

Q119 rental revenues were $159 million lower due to the bankruptcies of Avianca Brazil and Jet Airways

Gain on sale up $62 millionSale of four aircraft resulted in a gain on sale of $83 million

$37 million of gain on sale due to reclassification of two other aircraft as direct financing and sales-type leases

Maintenance revenue of $164 million up $44 million due to transitions

Revenue Summary

$ in millions Q119 Q118

Lease Rental and Direct Financing and Sales-Type Lease Revenues $1897 $1869

Amortization of Lease Premiums Discounts and Incentives (57) (31)

Maintenance Revenue 164 120

Total Lease Revenue 2004 1958

Gain on Sale of Flight Equipment 120 58

Other Revenue 16 11

Total Revenues $2139 $2027

6FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Q119 Earnings Summary

Net income decreased $227million versus Q118 adjusted net income down $171 million

Primarily driven by $159 million of unrecognized rental revenue from Avianca Brazil and Jet Airways

Adjusted EBITDA was $1993million up $82 million from Q118

Reflects higher revenues of $112 million partially offset by higher maintenance and other costs of $64 million

Earnings Summary

$ in millions except per share amounts Q119 Q118

Net Income $348 $575

per diluted common share $046 $073

Adjusted Net Income1 $396 $568

per diluted common share $052 $072

EBITDA1 $1918 $1919

Adjusted EBITDA1 $1993 $1911

1 Refer to the selected financial Information accompanying this presentation for a reconciliation of GAAP to Non-GAAP numbers

7FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Q119 Acquisitions amp Sales

Acquired fourteen aircraft in Q119 for $445 million

Committed to acquire twelve additional aircraft for $385 million in 2019

Sold four aircraft for gain on sale of $83 million recognized $37 million of gains from the reclassification of two aircraft as direct financing and sales-type leases

Our 2019 placement task is nearly complete confirmed leases signed for ten Avianca Brazil A320s and seven Jet 737 family aircraft

Q119 Acquisitions amp Sales

Acquisitions1 Completed Sales

Investments Sales Proceeds $445 million $56 million

Total Number of Aircraft 14 4

1 Closed deals only through March 31 2019

8FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Robust Portfolio Management with an Active Asset Strategy

274 aircraft owned and managed at Q119

Since 2015

Acquired 227 aircraft

Sold 116 aircraft

Generated $201 million gains from sales and net proceeds of $25 billion

46

6068

39

14

31 3037

14

4

0

10

20

30

40

50

60

70

80

2015 2016 2017 2018 Q119

Num

ber o

f airc

raft

Purchases Sales

9FIRST QUARTER 2019 EARNINGS CALLbull 05022019

73 of the fleet now consists of more liquidnarrow-body aircraft

versus 36 five years ago

36

49

15

NBs WBs Freighters Classics

73

23

4

NBs WBs Freighters

9336

23

NBs WBs Freighters Classics

229

26

4

NBs WBs Freighters

Fleet EvolutionSignificant Fleet Risk Reduction

Since Q115 the number of wide-body freighter

and classic aircraft declined from a total of 59 aircraft to 30 aircraft

Q115 Aircraft Count Q119 Aircraft Count

Q115 Fleet Type (By NBV) Q119 Fleet Type (By NBV)

Aircastle continues to add in-demand narrow-bodies to the Companyrsquos fleet

10FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Portfolio Metrics

Since Q115 expanded owned fleet at a compound annual growth rate of 71

$ in billions Q115 Q119 Q119 vs Q115

Flight Equipment Held for Lease1 $58 $76 + $18

Wtd Avg Fleet Age (years)2 83 94 + 11

Wtd Avg Lease Term (years)2 56 45 - 11

Managed JV Aircraft1 $05 $07 + $02

1 Calculated using NBV at period end2 Weighted average by NBV

NBV as used throughout this presentation includes the net book value of flight equipment held for lease and the net investment in direct financing and sales-type leases

11FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Diversified Customer Base with Broad Geographic Distribution

86 airline customers in 47countries across the globe

Most top customers are large flag carriers and leading LCCs

Balanced distribution of the aircraft fleet by geographic region

Asia represents 37 of portfolio NBV followed by Europe at 29

South America represents 10 North America 9

Top Ten Lessees of NBV1 per

customer Customer Country Aircraft

gt6 IndiGo India 17

3-6

Lion Air Indonesia 11

LATAM Chile 3

TAP Portugal Portugal 8

Iberia Spain 15

SAA SouthAfrica 4

easyJet UnitedKingdom 20

Jeju Air SouthKorea 9

lt3Aerolineas Argentinas Argentina 5

Interjet Mexico 11

1 As of March 31 2019

Top Ten Countries

Country AC of NBV1

India 28 122

Indonesia 15 66

Russia 11 60

United Kingdom 30 52

South Korea 14 51

Portugal 8 45

Chile 3 44

USA 15 42

Mexico 16 42

Spain 16 41

12FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Leasing Activity and Portfolio Performance

Note Aircraft on-lease days as a percent of total days in period weighted by NBV

937 utilization during Q119 was below trend primarily due to the bankruptcies of Avianca Brazil and Jet Airways

We expect these aircraft to return to service in mid Q219 with utilization to begin normalizing

Three aircraft remaining to be sold or placed in 2019 represents 15 of NBV

Utilization Performance

Utilization has averaged 988 since Q115

80

82

84

86

88

90

92

94

96

98

100

Q1

15

Q1

16

Q1

17

Q1

18

Q1

19

13FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Rental Yields and Net Cash Interest Margins

Approximately 85bps of the reduction reflects unrecognized rental revenue from AviancaBrazil and Jet Airways

105 lease rental yield 12 and 73 net cash interest margin1

114 pro-forma3 lease rental yield12 81 and net cash interest margin13

We expect the net cash interest margin to rebound in the second half of 2019 as the Avianca Brazil and Jet Airways aircraft return to revenue service

0

2

4

6

8

10

12

14

Q1

15

Q2

15

Q3

15

Q4

15

Q1

16

Q2

16

Q3

16

Q4

16

Q1

17

Q2

17

Q3

17

Q4

17

Q1

18

Q2

18

Q3

18

Q4

18

Q1

19

Pro-

form

aQ

119

Lease Rental Yield Net Cash Interest Margin

105

73

1 Refer to the selected financial Information accompanying this presentation for a reconciliation of GAAP to Non-GAAP numbers

2 Lease Rental Yield = Operating and finance lease rental revenue plus direct financing and sales-typelease collections average monthly NBV including direct financing and sales-type leases for the period calculated on a quarterly basis annualized

3 Adds back $159 million of lease rental revenue in Q119 to show the impact of the bankruptcies of Avianca Brazil and Jet Airways on Lease Rental Yield and Net Cash Interest Margin

1 2 13

Pro-forma 23

114

Pro-forma 13

81

14FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Cash ROE Performance

Q119 118

AVG 140

Trailing twelve month Cash ROE1 was 118 versus 160 a year ago

GAAP ROE of 114

Cash flow from operations of $5100 million was $248million lower for LTM ended Q119 versus comparable period a year earlier

Q119 Pro-forma Cash ROE including unrecognized rental revenue of $159 million associated with Avianca Brazil and Jet Airways bankruptcies approximates 1262

1 Refer to the selected financial Information accompanying this presentation for a reconciliation of GAAP to Non-GAAP numbers

2 Adds $159 million of lease rental revenue to the last twelve months Cash Flow From Operations to show the estimated impact of the bankruptcies of AviancaBrazil and Jet Airways on Cash ROE

0

2

4

6

8

10

12

14

16

18

Q1

15

Q2

15

Q3

15

Q4

15

Q1

16

Q2

16

Q3

16

Q4

16

Q1

17

Q2

17

Q3

17

Q4

17

Q1

18

Q2

18

Q3

18

Q4

18

Q1

19

Cash

Ret

urn

on A

vera

ge S

hare

hold

errsquos

Equ

ity

15FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Q119 Capital Structure

Strong liquidity profile and low financial leverage minimal forward commitments

Net debt to equity of 24x84 of total debt was unsecured at quarter-end

Average remaining life of debt is 32 years$500 million note matures in 2019

$705 million in available revolver capacity $375 million drawn from a total of $108 billionUnrestricted cash of $93 million

$63 billion of unencumbered flight equipment ndash 228 aircraft

16FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Selected Financial Guidance Elements for Q219

Guidance Item Q219

Lease rental revenue1 $186 - $190

Direct financing and sales-type lease revenue $8 - $9

Amortization of lease premiums discounts and incentives $(5) - $(6)

Maintenance revenue2 $16 - $20

Gain on sale $4 - $8

Depreciation $87 - $90

Interest net $66 - $69

SGampA3 $18 - $19

Full year effective tax rate 7 - 9

1 Reflects the return to service of Avianca Brazil and Jet Airways aircraft commencing in Q219 2 Includes $101M of net maintenance revenue (maintenance reserves net of a transactional impairment) in connection with the early return of seven aircraft from Jet Airways3 Includes $32M of non-cash share based payment expense

17FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Appendix

18FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Q119 Capital Structure amp Liquidity Summary

Note The debt totals in the above table do not include debt issuance costs or discounts which are reflected in the net debt totals that are displayed on the consolidated balance sheet

Aircastles Capital Structure

As of Mar 31 2019 As of Dec 31 2018 As of Dec 31 2017($ in millions)Unrestricted cash and cash equivalents $ 93 $ 153 $ 212 Debt O S Rate1 O S Rate1 O S Rate1

ECA Term Financings 179 358 189 358 227 359Bank Financings 603 464 620 473 635 368

Total Secured Debt 783 440 809 446 863 365

Senior Notes due 2018 - - - - 400 463Senior Notes due 2019 500 625 500 625 500 625Senior Notes due 2020 300 763 300 763 300 763Senior Notes due 2021 500 513 500 513 500 513Senior Notes due 2022 500 550 500 550 500 550Senior 500 Notes due 2023 500 500 500 500 500 500Senior 440 Notes due 2023 650 440 650 440 - -Senior Notes due 2024 500 413 500 413 500 413Bank Revolvers 375 399 425 401 175 368Other Unsecured Bank Financings 335 424 120 434 120 359

Total Unsecured Debt 4160 506 3995 510 3495 521

Total Debt and Weighted Avg Rate 4943 496 4804 499 4358 490Shareholdersrsquo equity 2013 2009 1908 Total capitalization $ 6956 $ 6812 $ 6265

Net debt to equity 24 x 23 x 22 xUnsecured debt to total debt 84 83 80

19FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Supplemental Financial Information

Three Months Ended

March 31in thousands except per share amounts 2019 2018

Revenues $ 213927 $ 202680

EBITDA $ 191817 $ 191941

Adjusted EBITDA $ 199347 $ 191145

Net income $ 34810 $ 57547Net income allocable to common shares $ 34609 $ 57232

Per common share - Basic $ 046 $ 073Per common share - Diluted $ 046 $ 073

Adjusted net income $ 39616 $ 56751Adjusted net income allocable to common shares $ 39387 $ 56440

Per common share - Basic $ 053 $ 072Per common share - Diluted $ 052 $ 072

Basic common shares outstanding 74704 78367Diluted common shares outstanding 75274 78595

20FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Reconciliation of GAAP to Non-GAAP Measures ndash EBITDA and Adjusted EBITDA

We define EBITDA as income (loss) from continuing operations before income taxes interest expense and depreciation and amortization We use EBITDA to assess our consolidated financial and operating performance and we believe this non-US GAAP measure is helpful in identifying trends in our performance

This measure provides an assessment of controllable expenses and affords management the ability to make decisions which are expected to facilitate meeting current financial goals as well as achieving optimal financial performance It provides an indicator for management to determine if adjustments to current spending decisions are needed

EBITDA provides us with a measure of operating performance because it assists us in comparing our operating performance on a consistent basis as it removes the impact of our capital structure (primarily interest charges on our outstanding debt) and asset base (primarily depreciation and amortization) from our operating results

Accordingly this metric measures our financial performance based on operational factors that management can impact in the short-term namely the cost structure or expenses of the organization EBITDA is one of the metrics used by senior management and the board of directors to review the consolidated financial performance of our business

We define Adjusted EBITDA as EBITDA (as defined above) further adjusted to give effect to adjustments required in calculating covenant ratios and compliance as that term is defined in the indenture governing our senior unsecured notes Adjusted EBITDA is a material component of these covenants

2019 2018

Net income $ 34810 $ 57547

Depreciation 84735 75002

Amortization of lease premiums discounts and incentives 5711 3128

Interest net 63463 57108

Income tax provision 3098 (844)

EBITDA 191817 191941

Adjustments

Equity share of joint venture impairment 2724 -

Non-cash share based payment expense 2726 2378

(Gain) loss on MTM of interest rate derivative contracts 2080 (3174)

Adjusted EBITDA $ 199347 $ 191145

Three Mos Ended Dec 31

(Dollars in thousands)

Sheet1

Sheet2

Sheet3

21FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Reconciliation of GAAP to Non-GAAP Measures ndash Adjusted Net Income

Management believes that ANI when viewed in conjunction with the Companyrsquos results under US GAAP and the above reconciliation provides useful information about operating and period-over-period performance and provides additional information that is useful for evaluating the underlying operating performance of our business without regard to periodic reporting elements related to interest rate derivative accounting changes related to refinancing activity and non-cash share based payment expense

1 Included in Other income (expense)2 Included in Selling general and administrative expenses

Net Income Loss on mark-to-market of interest rate derivative contracts(1)

Non-cash share-based payment expense(2)

Adjusted Net Income2726 2378

39616$ 56751$

For the Three Months Ended March 31

2019 2018

34810$ 57547$ 2080 (3174)

Sheet1

22FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Reconciliation of GAAP to non-GAAP Measures - Cash Earnings and Cash ROE

Note LTM Average Shareholdersrsquo Equity is the average of the most recent five quarters period end Shareholdersrsquo Equity Management believes that the cash return on equity metric (ldquoCash ROErdquo) when viewed in conjunction with the Companyrsquos results under US GAAP and the above reconciliation provide useful information about operating and period-over-period performance and provide additional information that is useful for evaluating the underlying operating performance of our business without regard to periodic reporting impacts related to non-cash revenue and expense items and interest rate derivative accounting while recognizing the depreciating nature of our assets To reflect the expected sale of the assets in one of our joint ventures and to simplify the presentation of Cash ROE we are no longer adjusting for joint venture distributions in excess ofless than joint venture earnings recorded under the equity method of investment accounting

Pro-forma Q119 estimates the impact of the Avianca Brazil and Jet Airways bankruptcies on Cash ROE by adding $159 million to Cash Flow From Operations in the first quarter of 2019

Dollars in thousands

LTM Ended CFFO +Gain on Sale

of Eqt - Deprec =Cash

Earnings

Average Shareholders

Equity

Trailing 12 Month Cash

ROEQ115 $498536 $28289 $300284 $226541 $1682857 135Q116 $525569 $64597 $320584 $269582 $1769981 152Q117 $499768 $27052 $307743 $219077 $1804573 121Q118 $534771 $60176 $294492 $300455 $1881633 160Q119 $510008 $43000 $320583 $232425 $1976235 118

Pro-forma Q119 $525899 $43000 $320583 $248316 $1976235 126

23FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Net Cash Interest Margin Calculation

1 We define net cash interest margin as lease rentals from operating leases interest income and cash collections from direct financing and sales-type leases minus interest on borrowings net settlements on interest rate derivatives and other liabilities adjusted for loan termination payments divided by the average net book of flight equipment (which includes net investment in direct financing and sales-type leases) for the period calculated on a quarterly and annualized basis The second quarter of 2017 excludes a non-recurring $70 million accelerated collection received from a lessee in connection with a finance lease

2 Excludes loan termination payments of $15 million and $35 million in the first quarter and fourth quarter of 2016 respectively and loan termination payments of $10 million in both the second and third quarters of 2017 and an $08 million loan termination gain in the third quarter of 2018

Management believes that net cash interest margin when viewed in conjunction with the Companyrsquos results under US GAAP and the above reconciliation provides useful information about the effective deployment of our capital in the context of the yield on our aircraft assets the utilization of those assets by our lessees and our ability to borrow efficiently

Except for percentages all figures are $ in thousands

3 Pro-forma Q119 estimates the impact of the Avianca Brazil and Jet Airways bankruptcies on annualized net cash interest margin by adding $159 million to quarterly rental revenue in the first quarter of 2019

Average NBV

Quarterly Rental

Revenue1 Cash Interest2

Annualized Net Cash Interest

Margin12

Q115 5743035$ 181027$ 50235$ 91Q215 5967898$ 189238$ 51413$ 92Q315 6048330$ 191878$ 51428$ 93Q415 5962874$ 188491$ 51250$ 92Q116 5988076$ 186730$ 51815$ 90Q216 5920030$ 184469$ 55779$ 87Q316 6265175$ 193909$ 57589$ 87Q416 6346361$ 196714$ 58631$ 87Q117 6505355$ 200273$ 58839$ 87Q217 6512100$ 199522$ 55871$ 88Q317 5985908$ 184588$ 53457$ 88Q417 6247581$ 187794$ 53035$ 86Q118 6700223$ 193418$ 53978$ 83Q218 6721360$ 193988$ 53979$ 83Q318 6787206$ 200354$ 54521$ 86Q418 7136627$ 200027$ 60348$ 78Q119 7449957$ 195601$ 60279$ 73

Pro-forma Q119 7449957$ 211501$ 60279$ 81 33

Summary

Data

Chart in Powerpoint

Chart in Press Release

TABLE

24FIRST QUARTER 2019 EARNINGS CALLbull 05022019

As part of the Companyrsquos adoption of ASC 842 we were required to reclassify collections on direct financing and sales-type leases on our Consolidated Statement of Cash Flows for the three months ended March 31 2019 The presentation for the three months ended March 31 2018 has also been reclassified to conform to the current period presentation

Reclassification of Collections on Direct Financing and Sales-Type Leases

Three Months Ended March 31 2018

Net cash and restricted cash provided by operating activities as previously reported $142412

Collections on direct financing and sales-type leases 6493

Net cash and restricted cash provided by operating activities $148905

25FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Book Value Per Share Calculation

As of Mar 31Shares Issued and Outstanding (000)

Shareholders Equity ($000)

Book Value Per Share Change

2015 81181 $1753552 $2160 172016 78811 $1770884 $2247 402017 78718 $1856084 $2358 492018 78539 $1937454 $2467 462019 75078 $2012939 $2681 87

Q115-Q119 CAGR 56

26FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Supplemental Financial Information

Except for percentages all figures are in thousands1 For the three months ended March 31 2019 distributed and undistributed earnings to restricted shares was 058 of net income and adjusted net income The amount of restricted share

forfeitures for the period presented is immaterial to the allocation of distributed and undistributed earnings2 For all periods presented dilutive shares represented contingently issuable shares

Weighted-average shares Shares Percent2

Common shares outstanding ndash Basic 74704 9942Unvested restricted common shares 435 058Total weighted-average shares outstanding 75138 10000

Common shares outstanding ndash Basic 74704 9924Effect of dilutive shares1 570 076Common shares outstanding ndash Diluted 75274 10000

Net income allocationNet income $ 34810 10000Distributed and undistributed earnings allocated to unvested restricted shares (201) -058Earnings available to common shares $ 34609 9942

Adjusted net income allocationAdjusted net income $ 39616 10000Amounts allocated to unvested restricted shares (229) -058Amounts allocated to common shares $ 39387 9942

Three Months Ended March 31 2019

Sheet1

27FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Supplemental Financial Information

Except for percentages all figures are in thousands1 For the three months ended March 31 2018 distributed and undistributed earnings to restricted shares was 055 of net income and adjusted net income The amount of restricted share

forfeitures for the period presented is immaterial to the allocation of distributed and undistributed earnings2 For all periods presented dilutive shares represented contingently issuable shares

Weighted-average shares Shares Percent2

Common shares outstanding ndash Basic 78367 9945Unvested restricted common shares 431 055Total weighted-average shares outstanding 78798 10000

Common shares outstanding ndash Basic 78367 9971Effect of dilutive shares1 228 029Common shares outstanding ndash Diluted 78595 10000

Net income allocationNet income $ 57547 10000Distributed and undistributed earnings allocated to unvested restricted shares (315) -055Earnings available to common shares $ 57232 9945

Adjusted net income allocationAdjusted net income $ 56751 10000Amounts allocated to unvested restricted shares (311) -055Amounts allocated to common shares $ 56440 9945

Three Months Ended March 31 2018

Sheet1

28FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Limitations of EBITDA Adjusted EBITDA ANI Cash ROE and Net Cash Interest Margin

An investor or potential investor may find EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin important measures in evaluating our performance results of operations and financial position We use these non-US GAAP measures to supplement our US GAAP results in order to provide a more complete understanding of the factors and trends affecting our business

EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin have limitations as analytical tools and should not be viewed in isolation or as substitutes for US GAAP measures of earnings Material limitations in making the adjustments to ourearnings to calculate EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin and using these non-US GAAP measures as compared to US GAAP net income income from continuing operations and cash flows provided by or used in operations include

depreciation and amortization though not directly affecting our current cash position represent the wear and tear andor reduction in value of our aircraft which affects the aircraftrsquos availability for use and may be indicative of future needs for capital expenditures

the cash portion of income tax (benefit) provision generally represents charges (gains) which may significantly affect our financial results

elements of our interest rate derivative accounting may be used to evaluate the effectiveness of our hedging policy

hedge loss amortization charges related to Term Financing No 1 and Securitization No 1 and

adjustments required in calculating covenant ratios and compliance as that term is defined in the indenture governing our seniorunsecured notes

EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin are not alternatives to net income income from operations or cash flows provided by or used in operations as calculated and presented in accordance with US GAAP You should not rely on these non-US GAAP measures as a substitute for any such US GAAP financial measure We strongly urge you to review the reconciliations to US GAAP net income along with our consolidated financial statements included elsewhere in our Annual Report We also strongly urge you to not rely on any single financial measure to evaluate our business In addition because EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin are not measures of financial performance under US GAAP and are susceptible to varying calculations EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin as presented here may differ from and may not be comparable to similarly titled measures used by other companies

  • Slide Number 1
  • Slide Number 2
  • Slide Number 3
  • Slide Number 4
  • Slide Number 5
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
Three Months Ended March 31 2019 Three Months Ended March 31 2019
Weighted-average shares Shares Percent2 Weighted-average shares Shares Percent2
Common shares outstanding ndash Basic 74704 9942 Common shares outstanding ndash Basic 74704 9942
Unvested restricted common shares 435 058 Unvested restricted common shares 435 058
Total weighted-average shares outstanding 75138 10000 Total weighted-average shares outstanding 75138 10000
Common shares outstanding ndash Basic 74704 9924 Common shares outstanding ndash Basic 74704 9924
Effect of dilutive shares1 570 076 Effect of dilutive shares1 570 076
Common shares outstanding ndash Diluted 75274 10000 Common shares outstanding ndash Diluted 75274 10000
Net income allocation Net income allocation
Net income $ 34810 10000 Net income $ 34810 10000
Distributed and undistributed earnings allocated to unvested restricted shares (201) -058 Distributed and undistributed earnings allocated to unvested restricted shares (201) -058
Earnings available to common shares $ 34609 9942 Earnings available to common shares $ 34609 9942
Adjusted net income allocation Adjusted net income allocation
Adjusted net income $ 39616 10000 Adjusted net income $ 39616 10000
Amounts allocated to unvested restricted shares (229) -058 Amounts allocated to unvested restricted shares (229) -058
Amounts allocated to common shares $ 39387 9942 Amounts allocated to common shares $ 39387 9942
Three Months Ended March 31 2018 Three Months Ended March 31 2018
Weighted-average shares Shares Percent2 Weighted-average shares Shares Percent2
Common shares outstanding ndash Basic 78367 9945 Common shares outstanding ndash Basic 78367 9945
Unvested restricted common shares 431 055 Unvested restricted common shares 431 055
Total weighted-average shares outstanding 78798 10000 Total weighted-average shares outstanding 78798 10000
Common shares outstanding ndash Basic 78367 9971 Common shares outstanding ndash Basic 78367 9971
Effect of dilutive shares1 228 029 Effect of dilutive shares1 228 029
Common shares outstanding ndash Diluted 78595 10000 Common shares outstanding ndash Diluted 78595 10000
Net income allocation Net income allocation
Net income $ 57547 10000 Net income $ 57547 10000
Distributed and undistributed earnings allocated to unvested restricted shares (315) -055 Distributed and undistributed earnings allocated to unvested restricted shares (315) -055
Earnings available to common shares $ 57232 9945 Earnings available to common shares $ 57232 9945
Adjusted net income allocation Adjusted net income allocation
Adjusted net income $ 56751 10000 Adjusted net income $ 56751 10000
Amounts allocated to unvested restricted shares (311) -055 Amounts allocated to unvested restricted shares (311) -055
Amounts allocated to common shares $ 56440 9945 Amounts allocated to common shares $ 56440 9945
Three Months Ended March 31 2019 Three Months Ended March 31 2019
Weighted-average shares Shares Percent2 Weighted-average shares Shares Percent2
Common shares outstanding ndash Basic 74704 9942 Common shares outstanding ndash Basic 74704 9942
Unvested restricted common shares 435 058 Unvested restricted common shares 435 058
Total weighted-average shares outstanding 75138 10000 Total weighted-average shares outstanding 75138 10000
Common shares outstanding ndash Basic 74704 9924 Common shares outstanding ndash Basic 74704 9924
Effect of dilutive shares1 570 076 Effect of dilutive shares1 570 076
Common shares outstanding ndash Diluted 75274 10000 Common shares outstanding ndash Diluted 75274 10000
Net income allocation Net income allocation
Net income $ 34810 10000 Net income $ 34810 10000
Distributed and undistributed earnings allocated to unvested restricted shares (201) -058 Distributed and undistributed earnings allocated to unvested restricted shares (201) -058
Earnings available to common shares $ 34609 9942 Earnings available to common shares $ 34609 9942
Adjusted net income allocation Adjusted net income allocation
Adjusted net income $ 39616 10000 Adjusted net income $ 39616 10000
Amounts allocated to unvested restricted shares (229) -058 Amounts allocated to unvested restricted shares (229) -058
Amounts allocated to common shares $ 39387 9942 Amounts allocated to common shares $ 39387 9942
Three Months Ended March 31 2018 Three Months Ended March 31 2018
Weighted-average shares Shares Percent2 Weighted-average shares Shares Percent2
Common shares outstanding ndash Basic 78367 9945 Common shares outstanding ndash Basic 78367 9945
Unvested restricted common shares 431 055 Unvested restricted common shares 431 055
Total weighted-average shares outstanding 78798 10000 Total weighted-average shares outstanding 78798 10000
Common shares outstanding ndash Basic 78367 9971 Common shares outstanding ndash Basic 78367 9971
Effect of dilutive shares1 228 029 Effect of dilutive shares1 228 029
Common shares outstanding ndash Diluted 78595 10000 Common shares outstanding ndash Diluted 78595 10000
Net income allocation Net income allocation
Net income $ 57547 10000 Net income $ 57547 10000
Distributed and undistributed earnings allocated to unvested restricted shares (315) -055 Distributed and undistributed earnings allocated to unvested restricted shares (315) -055
Earnings available to common shares $ 57232 9945 Earnings available to common shares $ 57232 9945
Adjusted net income allocation Adjusted net income allocation
Adjusted net income $ 56751 10000 Adjusted net income $ 56751 10000
Amounts allocated to unvested restricted shares (311) -055 Amounts allocated to unvested restricted shares (311) -055
Amounts allocated to common shares $ 56440 9945 Amounts allocated to common shares $ 56440 9945
Q119 Q418 Q318 Q119 B (W) vs Q418
Average NBV for the 4th and 3rd Quarters of 2018 $ 7449957 $ 7136627 $ 6787206 $ 313330 Average NBV 44 higher Q418 to Q119
Operating and Finance Lease Revenues $ 189676 $ 192711 $ 190836 $ (3034)
Finance Lease Collections $ 5925 $ 7316 $ 9518 $ (1391)
Annualized Portfolio Yield 105 112 118 -07 Annualized yield 71bps lower
Cash Interest Expense $ 60279 $ 60348 $ 54521 $ 69
Annualized Cash Interest 32 34 32 01 Annualized cash int exp 15bps lower
Annualized Cash Net Interest Margin 73 78 86 -06 Annualized cash margin 56bps lower
Average NBV Quarterly Rental Revenue(1) Cash Interest(2) Annualized Net Cash Interest Margin(1)(2) Yield Cash Interest Expense
Q112 $ 4388008 $ 152242 $ 44969 98 139 410
Q212 $ 4542477 $ 156057 $ 48798 94 137 430
Q312 $ 4697802 $ 163630 $ 41373 104 139 352
Q412 $ 4726457 $ 163820 $ 43461 102 139 368
Q113 $ 4740161 $ 162319 $ 48591 96 137 410
Q213 $ 4840396 $ 164239 $ 44915 99 136 371
Q313 $ 4863444 $ 167876 $ 47682 99 138 392
Q413 $ 5118601 $ 176168 $ 49080 99 138 384
Q114 $ 5312651 $ 181095 $ 51685 97 136 389
Q214 $ 5721521 $ 190574 $ 48172 100 133 337
Q314 $ 5483958 $ 182227 $ 44820 100 133 327
Q414 $ 5468637 $ 181977 $ 44459 101 133 325
Q115 $ 5743035 $ 181027 $ 50235 91 126 350
Q215 $ 5967898 $ 189238 $ 51413 92 127 345
Q315 $ 6048330 $ 191878 $ 51428 93 127 340
Q415 $ 5962874 $ 188491 $ 51250 92 126 344
Q116 $ 5988076 $ 186730 $ 51815 90 125 346
Q216 $ 5920030 $ 184469 $ 55779 87 125 377
Q316 $ 6265175 $ 193909 $ 57589 87 124 368
Q416 $ 6346361 $ 196714 $ 58631 87 124 370
Q117 $ 6505355 $ 200273 $ 58839 87 123 362
Q217 $ 6512100 $ 199522 $ 55871 88 123 343
Q317 $ 5985908 $ 184588 $ 53457 88 123 357
Q417 $ 6247581 $ 187794 $ 53035 86 120 340
Q118 $ 6700223 $ 193418 $ 53978 83 115 322
Q218 $ 6721360 $ 193988 $ 53979 83 115 321
Q318 $ 6787206 $ 200354 $ 54521 86 118 321
Q418 $ 7136627 $ 200027 $ 60348 78 112 338
Q119 $ 7449957 $ 195601 $ 60279 73 105 324
Pro-forma Q119 $ 7449957 $ 211501 $ 60279 81 114 324
Average NBV Quarterly Rental Revenue1 Cash Interest2 Annualized Net Cash Interest Margin12 Yield Cash Interest Expense
Q113 $ 4740161 $ 162319 $ 48591 96 137 410
Q213 $ 4840396 $ 164239 $ 44915 99 136 371
Q313 $ 4863444 $ 167876 $ 47682 99 138 392
Q413 $ 5118601 $ 176168 $ 49080 99 138 384
Q114 $ 5312651 $ 181095 $ 51685 97 136 389
Q214 $ 5721521 $ 190574 $ 48172 100 133 337
Q314 $ 5483958 $ 182227 $ 44820 100 133 327
Q414 $ 5468637 $ 181977 $ 44459 101 133 325
Q115 $ 5743035 $ 181027 $ 50235 91 126 350
Q215 $ 5967898 $ 189238 $ 51413 92 127 345
Q315 $ 6048330 $ 191878 $ 51428 93 127 340
Q415 $ 5962874 $ 188491 $ 51250 92 126 344
Q116 $ 5988076 $ 186730 $ 51815 90 125 346
Q216 $ 5920030 $ 184469 $ 55779 87 125 377
Q316 $ 6265175 $ 193909 $ 57589 87 124 368
Q416 $ 6346361 $ 196714 $ 58631 87 124 370
Q117 $ 6505355 $ 200273 $ 58839 87 123 362
Q217 $ 6512100 $ 199522 $ 55871 88 123 343
Q317 $ 5985908 $ 184588 $ 53457 88 123 357
Q417 $ 6247581 $ 187794 $ 53035 86 120 340
Q118 $ 6700223 $ 193418 $ 53978 83 115 322
Q218 $ 6721360 $ 193988 $ 53979 83 115 321
Q318 $ 6787206 $ 200354 $ 54521 86 118 321
Q418 $ 7136627 $ 200027 $ 60348 78 112 338
Q119 $ 7449957 $ 195601 $ 60279 73 105 324
Pro-forma Q119 $ 7449957 $ 211501 $ 60279 81 114 324
NBV FE Fin Lease NBV Flight Equip + Fin Lease Lease Rentals Interest Inc Fin lease Collections on Fin Leases Total Lease Rent Collections Quarterly Lease rent Collections Cash Interest Loan and Contract Termination Fees included in Cash Interest Adj Cash Int NIM $ NIM Yield Cash Int
Month End Month End Month End Mo Avg Qtrly Avg MTD MTD QTD QTD QTD
DEC10 4065780 - 0 4065780
JAN11 3981690 - 0 3981690 4023735 - 0 47091 - 0 - 0 47091 - 0 - 0 - 0
FEB11 4051167 - 0 4051167 4016428 - 0 47264 - 0 - 0 47264 - 0 - 0 - 0
MAR11 4120309 - 0 4120309 4085738 4041967 46761 - 0 - 0 46761 141116 $ 41278 41278 99838 988
APR11 4125377 - 0 4125377 4122843 - 0 47211 - 0 - 0 47211 - 0 - 0 - 0
MAY11 4194987 - 0 4194987 4160182 - 0 47897 - 0 - 0 47897 - 0 - 0 - 0
JUN11 4099641 - 0 4099641 4147314 4143446 48248 - 0 - 0 48248 143356 $ 43217 $ 3196 40021 103335 998
JUL11 4271013 - 0 4271013 4185327 - 0 47994 - 0 - 0 47994 - 0 - 0 - 0
AUG11 4248242 - 0 4248242 4259628 - 0 49193 - 0 - 0 49193 - 0 - 0 - 0
SEP11 4196918 - 0 4196918 4222580 4222512 48704 - 0 - 0 48704 145890 $ 42066 42066 103824 984
OCT11 4430527 - 0 4430527 4313723 - 0 49054 - 0 - 0 49054 - 0 - 0 - 0
NOV11 4401782 - 0 4401782 4416155 - 0 50498 - 0 - 0 50498 - 0 - 0 - 0
DEC11 4387986 - 0 4387986 4394884 4374921 50297 - 0 - 0 50297 149848 $ 43041 43041 106807 977
JAN12 4391666 - 0 4391666 4389826 - 0 51034 - 0 - 0 51034 - 0 - 0 - 0
FEB12 4385360 - 0 4385360 4388513 - 0 49705 - 0 - 0 49705 - 0 - 0 - 0
MAR12 4386010 - 0 4386010 4385685 4388008 51503 - 0 - 0 51503 152242 $ 44969 44969 107273 978
APR12 4484956 - 0 4484956 4435483 - 0 50824 - 0 - 0 50824 - 0 - 0 - 0
MAY12 4570712 31500 4602212 4543584 - 0 51020 - 0 - 0 51020 - 0 - 0 - 0
JUN12 4604493 90024 4694518 4648365 4542477 51781 956 1476 54213 156057 $ 48798 48798 107259 944
JUL12 4572121 90739 4662860 4678689 - 0 52892 963 - 0 53855 - 0 - 0 - 0
AUG12 4665966 90332 4756298 4709579 - 0 52945 948 - 0 53893 - 0 - 0 - 0
SEP12 4532445 121533 4653978 4705138 4697802 53709 1608 565 55881 163630 $ 41373 41373 122257 1041
OCT12 4574055 120934 4694990 4674484 - 0 52277 1311 - 0 53588 - 0 - 0 - 0
NOV12 4645741 120345 4766086 4730538 - 0 52596 1321 - 0 53917 - 0 - 0 - 0
DEC12 4662661 119951 4782612 4774349 4726457 53217 1286 1811 56314 163820 $ 43461 43461 120359 1019
JAN13 4639414 119339 4758753 4770682 - 0 52957 1298 - 0 54255 - 0 - 0 - 0
FEB13 4614480 118707 4733187 4745970 - 0 51936 1277 - 0 53213 - 0 - 0 - 0
MAR13 4544773 129700 4674474 4703830 4740161 51697 1309 1845 54850 162319 $ 48591 48591 113728 960
APR13 4621392 128981 4750373 4712423 - 0 51363 1384 - 0 52747 - 0 - 0 - 0
MAY13 4915814 128237 5044051 4897212 - 0 53613 1359 - 0 54972 - 0 - 0 - 0
JUN13 4651553 127504 4779057 4911554 4840396 52942 1370 2207 56520 164239 $ 47869 $ 2954 44915 119324 986
JUL13 4668642 149932 4818574 4798816 - 0 52469 1372 - 0 53840 - 0 - 0 - 0
AUG13 4690154 149017 4839171 4828873 - 0 53339 1423 - 0 54763 - 0 - 0 - 0
SEP13 4938113 148005 5086118 4962645 4863444 55340 1327 2606 59273 167876 $ 47682 47682 120194 989
OCT13 4913184 147017 5060200 5073159 - 0 56643 1350 - 0 57993 - 0 - 0 - 0
NOV13 5011676 146076 5157752 5108976 - 0 56264 1361 - 0 57625 - 0 - 0 - 0
DEC13 5044410 145173 5189583 5173668 5118601 56367 1333 2850 60550 176168 $ 49080 49080 127088 993
JAN14 5015452 144256 5159708 5174646 - 0 58142 1337 - 0 59478 - 0 - 0 - 0
FEB14 5129035 143356 5272392 5216050 - 0 57572 1354 - 0 58926 - 0 - 0 - 0
MAR14 5679723 142400 5822123 5547257 5312651 58621 1297 2773 62691 181095 $ 51685 51685 129410 974
APR14 5605462 155551 5761013 5791568 - 0 61276 1329 - 0 62604 - 0 - 0 - 0
MAY14 5512769 154435 5667205 5714109 - 0 60998 1338 - 0 62336 - 0 - 0 - 0
JUN14 5577966 72600 5650566 5658886 5721521 60957 1231 3446 65634 190574 $ 48172 48172 142402 996
JUL14 5418990 71971 5490961 5570764 - 0 60509 484 - 0 60993 - 0 - 0 - 0
AUG14 5412453 71345 5483799 5487380 - 0 59617 488 - 0 60105 - 0 - 0 - 0
SEP14 5232940 70723 5303663 5393731 5483958 58760 491 1877 61129 182227 $ 44820 44820 137407 1002
OCT14 5340303 88360 5428663 5366163 - 0 59394 480 - 0 59874 - 0 - 0 - 0
NOV14 5374566 107667 5482233 5455448 - 0 59717 542 - 0 60259 - 0 - 0 - 0
DEC14 5579718 106651 5686369 5584301 5468637 59091 537 2216 61844 181977 $ 44459 44459 137518 1006 1331 325 134 99
JAN15 5642590 105896 5748487 5717428 - 0 59898 539 - 0 60437 - 0 - 0 - 0
FEB15 5623616 105155 5728770 5738628 - 0 58688 552 - 0 59240 - 0 - 0 - 0
MAR15 5712950 104377 5817327 5773049 5743035 58560 516 2274 61350 181027 $ 50235 50235 130792 911 1261 350
APR15 5778092 119625 5897717 5857522 - 0 60016 589 - 0 60605 - 0 - 0 - 0
MAY15 5940205 118903 6059108 5978412 - 0 61684 628 - 0 62311 - 0 - 0 - 0
JUN15 5953555 122855 6076411 6067759 5967898 63140 660 2521 66322 189238 $ 51413 51413 137825 924 1268 345
JUL15 5942037 122200 6064238 6070324 - 0 63838 625 - 0 64463 - 0 - 0 - 0
AUG15 5917660 121542 6039202 6051720 - 0 62322 623 - 0 62945 - 0 - 0 - 0
SEP15 5885807 120882 6006689 6022946 6048330 61877 620 1973 64470 191878 $ 51428 51428 140450 929 1269 340
OCT15 5829040 103074 5932114 5969402 - 0 61959 611 - 0 62570 - 0 - 0 - 0
NOV15 5801167 117861 5919028 5925571 - 0 60485 623 - 0 61108 - 0 - 0 - 0
DEC15 5867062 201211 6068273 5993651 5962874 60949 1072 2791 64812 188491 $ 51250 51250 137241 921 1264 344 127 92
JAN16 5836479 198445 6034923 6051598 - 0 60245 1141 - 0 61387 - 0 - 0 - 0
FEB16 5796230 213436 6009666 6022295 - 0 60098 1161 - 0 61259 - 0 - 0 - 0
MAR16 5558666 212336 5771002 5890334 5988076 59227 1195 3663 64085 186730 $ 53324 1509 51815 134915 901 1247 346
APR16 5654825 211354 5866179 5818591 - 0 58383 1160 - 0 59544 - 0 - 0 - 0
MAY16 5659238 265253 5924490 5895335 - 0 58787 1432 - 0 60218 - 0 - 0 - 0
JUN16 5875935 291903 6167838 6046164 5920030 58955 1582 4170 64707 184469 55779 55779 128690 870 1246 377
JUL16 5980982 290048 6271030 6219434 - 0 60301 1805 - 0 62107 - 0 - 0 - 0
AUG16 6017274 288131 6305405 6288218 - 0 60757 1744 - 0 62501 - 0 - 0 - 0
SEP16 6004489 265854 6270343 6287874 6265175 60917 1805 6580 69301 193909 57589 57589 136320 870 1238 368
OCT16 6025556 264389 6289945 6280144 - 0 61757 1413 63170 - 0 - 0 - 0
NOV16 6097520 262667 6360187 6325066 - 0 62824 1357 64181 - 0 - 0 - 0
DEC16 6246707 260853 6507560 6433874 6346361 62969 1394 5000 69363 196714 62082 3451 58631 138083 870 1240 370 124 88
JAN17 6219012 259264 6478276 6492918 - 0 63296 1359 64655 - 0
FEB17 6227957 257474 6485431 6481853 - 0 63575 1288 64863 - 0
MAR17 6297190 299969 6597159 6541295 6505355 63715 1426 5614 70755 200273 58839 58839 141434 870 1231 362
APR17 6269189 348327 6617516 6607338 64119 1814 65933
MAY17 6156371 377186 6533557 6575537 63186 2079 65265
JUN17 5818821 354474 6173295 6353426 6512100 61794 1985 4545 68324 199522 56859 988 55871 143651 882 1226 343
JUL17 5615695 352411 5968106 6070700 59464 1954 61418
AUG17 5523543 390140 5913683 5940895 56603 1917 58520
SEP17 5490164 488408 5978572 5946128 5985908 55621 2541 6488 64650 184588 54527 1070 53457 131131 876 1233 357
OCT17 5493432 549212 6042644 6010608 55282 2833 58115
NOV17 5789587 554117 6343704 6193174 56823 3248 60071
DEC17 6188469 545750 6734219 6538962 6247581 57826 3272 8511 69609 187794 53035 53035 134759 863 1202 340 122 87
JAN18 6163924 543311 6707235 6720727 59570 3212 62782
FEB18 6173766 514024 6687790 6697513 59177 3007 62184
MAR18 6143695 533373 6677067 6682429 6700223 58736 3222 6493 68451 193418 53978 53978 139440 832 1155 322
APR18 6120068 531077 6651145 6664106 58481 2936 61417
MAY18 6257826 528503 6786329 6718737 59975 3015 62990
JUN18 6249406 526738 6776144 6781236 6721360 60030 2918 6634 69582 193988 53979 53979 140009 833 1154 321 12 MONTH CALCULATION
JUL18 6261431 523491 6784922 6780533 60815 2990 63804 Yield NIM
AUG18 6250137 519066 6769203 6777062 60517 2927 63444 2014 134 99
SEP18 6321623 517221 6838844 6804023 6787206 60712 2876 9518 73106 200354 53683 -838 54521 145833 859 1181 321 2015 127 92
OCT18 6602809 515251 7118060 6978452 62875 2742 65617 2016 124 88
NOV18 6657588 512429 7170017 7144039 61402 2610 64012 2017 122 87
DEC18 6935585 469180 7404765 7287391 7136627 60405 2677 7316 70398 200027 60348 60348 139679 783 1121 338 115 83 2018 115 83
JAN19 6900489 509725 7410214 7407489 59462 2959 62421 LTM Q119 112 80
FEB19 6907294 507653 7414948 7412581 62458 2701 65158
MAR19 7138689 505964 7644653 7529800 7449957 59314 2783 5925 68022 195601 60279 60279 135322 727 1050 324 112 80
wCollections on Finance Leases 2019 2018 2017
Finance Lease Collections Finance Lease Collections Finance Lease Collections
Yield Cash Interest Net Spread Avg NBV Lease Rent Interest YTD 5925 YTD 29961 YTD 32184
Q117 1231 362 870 6505355 200273 $ 58839 Q119 5925 Q118 6493 Q117 5614
Q119 1050 324 727 7449957 195601 60279 Q219 Q218 6634 Q217 11571
-181 -038 -143 Change 145 -23 24 Q319 Q318 9518 Q317 6488
Q419 Q418 7316 Q417 8511
Yield Cash Interest Net Spread Avg NBV Lease Rent Interest Finance Lease Revenue Finance Lease Revenue Finance Lease Revenue
Q118 1155 322 832 6700223 193418 53978 Q119 8442 Q418 8029 Q417 9353
Q119 1050 324 727 7449957 195601 60279 January 2959 October 2742 October 2833
-104 001 -106 Change 112 11 117 February 2701 November 2610 November 3248
March 2783 December 2677 December 3272
Yield Cash Interest Net Spread Avg NBV Lease Rent Interest
Q418 1121 338 783 7136627 200027 60348 Collections on Finance Leases excludes $70 million of unusual payments received from KLM in Q217
Q119 1050 324 727 7449957 195601 60279
-071 -015 -056 Change 44 -22 -01
112 w$17mm added to Q119
11 Actual 1050 324 727
Revised 1141 324 818
091 091
wCollections on Finance Leases
Yield Cash Interest Net Spread
Q314 13292 3269 1002
Q316 12380 3677 870
-0911 0408 -132
Yield Cash Interest Net Spread
Q315 12690 3401 929
Q316 12380 3677 870
-0310 0276 -059
Yield Cash Interest Net Spread
Q216 12464 3769 870
Q316 12380 3677 870
-0084 -0092 001
Old Format
Yield Cash Interest Net Spread
Q314 13221 3312 991
Q316 12173 3852 832
-1047 -0540 -159
Yield Cash Interest Net Spread
Q315 12691 3471 922
Q316 12173 3852 832
-0518 -0381 -090
Yield Cash Interest Net Spread
Q216 12409 3930 8479
Q316 12173 3852 8321
Change -0236 0078 -0159
For the Three Months Ended March 31
2019 2018
Net Income $ 34810 $ 57547
(Gain) loss on mark-to-market of interest rate derivative contracts(1) 2080 (3174)
Non-cash share-based payment expense(2) 2726 2378
Adjusted Net Income $ 39616 $ 56751
For the Three Months Ended March 31
2019 2018
Net Income $ 34810 $ 57547
Loss on mark-to-market of interest rate derivative contracts(1) 2080 (3174)
Non-cash share-based payment expense(2) 2726 2378
Adjusted Net Income $ 39616 $ 56751
Three Mos Ended Dec 31
2019 2018
(Dollars in thousands)
Net income $ 34810 $ 57547
Depreciation 84735 75002
Amortization of lease premiums discounts and incentives 5711 3128
Interest net 63463 57108
Income tax provision 3098 (844)
EBITDA 191817 191941
Adjustments
Equity share of joint venture impairment 2724 -
Non-cash share based payment expense 2726 2378
(Gain) loss on MTM of interest rate derivative contracts 2080 (3174)
Adjusted EBITDA $ 199347 $ 191145
Three Mos Ended Dec 31
2019 2018
(Dollars in thousands)
Net income $ 34810 $ 57547
Depreciation 84735 75002
Amortization of lease premiums discounts and incentives 5711 3128
Interest net 63463 57108
Income tax provision 3098 (844)
EBITDA 191817 191941
Adjustments
Equity share of joint venture impairment 2724 - 0
Non-cash share based payment expense 2726 2378
(Gain) loss on MTM of interest rate derivative contracts 2080 (3174)
Adjusted EBITDA $ 199347 $ 191145

3FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Acquired fourteen aircraft during the first quarter for $445 million Committed to acquire twelve additional aircraft in 2019 for $385 million

2019 acquisitions are all modern in-demand narrow-body aircraft

Sold four aircraft and reclassified two others as direct financing and sales-type leases for gains of $120 million

Repurchased $87 million of our common shares to date at an average price of $1757 per shareAverage Q119 share price of $1991 was 133 higher

Declared our 52nd consecutive quarterly dividend

Committed leases for Ten A320 aircraft repossessed from Avianca Brazil transitioning to LATAM Airlines Group SA and

Seven 737 family aircraft previously leased with Jet Airways

Q119 Highlights

4FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Key Financial Metrics ndash Q119

Net income was $348 million versus $575 million in Q118$046 per diluted common share versus $073 the previous year

Adjusted net income1 was $396 million versus $568 million in Q118

$052 per diluted common share versus $072 the previous yearAdjusted diluted EPS was above FactSet consensus EPS estimate of $046 for Q119

Adjusted EBITDA1 was $1993 million versus $1911 million the prior year

Cash ROE1 was 118 and Net cash interest margin1 was 73The bankruptcies of Avianca Brazil and Jet Airways reduced annualized net cash interest margin by approximately 85bps in Q119

1 Refer to the selected financial Information accompanying this presentation for a reconciliation of GAAP to Non-GAAP numbers

5FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Q119 Revenue Summary

Lease rental revenues of $1897 million up $28million vs Q118

Increase was driven by net fleet growth

Q119 rental revenues were $159 million lower due to the bankruptcies of Avianca Brazil and Jet Airways

Gain on sale up $62 millionSale of four aircraft resulted in a gain on sale of $83 million

$37 million of gain on sale due to reclassification of two other aircraft as direct financing and sales-type leases

Maintenance revenue of $164 million up $44 million due to transitions

Revenue Summary

$ in millions Q119 Q118

Lease Rental and Direct Financing and Sales-Type Lease Revenues $1897 $1869

Amortization of Lease Premiums Discounts and Incentives (57) (31)

Maintenance Revenue 164 120

Total Lease Revenue 2004 1958

Gain on Sale of Flight Equipment 120 58

Other Revenue 16 11

Total Revenues $2139 $2027

6FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Q119 Earnings Summary

Net income decreased $227million versus Q118 adjusted net income down $171 million

Primarily driven by $159 million of unrecognized rental revenue from Avianca Brazil and Jet Airways

Adjusted EBITDA was $1993million up $82 million from Q118

Reflects higher revenues of $112 million partially offset by higher maintenance and other costs of $64 million

Earnings Summary

$ in millions except per share amounts Q119 Q118

Net Income $348 $575

per diluted common share $046 $073

Adjusted Net Income1 $396 $568

per diluted common share $052 $072

EBITDA1 $1918 $1919

Adjusted EBITDA1 $1993 $1911

1 Refer to the selected financial Information accompanying this presentation for a reconciliation of GAAP to Non-GAAP numbers

7FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Q119 Acquisitions amp Sales

Acquired fourteen aircraft in Q119 for $445 million

Committed to acquire twelve additional aircraft for $385 million in 2019

Sold four aircraft for gain on sale of $83 million recognized $37 million of gains from the reclassification of two aircraft as direct financing and sales-type leases

Our 2019 placement task is nearly complete confirmed leases signed for ten Avianca Brazil A320s and seven Jet 737 family aircraft

Q119 Acquisitions amp Sales

Acquisitions1 Completed Sales

Investments Sales Proceeds $445 million $56 million

Total Number of Aircraft 14 4

1 Closed deals only through March 31 2019

8FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Robust Portfolio Management with an Active Asset Strategy

274 aircraft owned and managed at Q119

Since 2015

Acquired 227 aircraft

Sold 116 aircraft

Generated $201 million gains from sales and net proceeds of $25 billion

46

6068

39

14

31 3037

14

4

0

10

20

30

40

50

60

70

80

2015 2016 2017 2018 Q119

Num

ber o

f airc

raft

Purchases Sales

9FIRST QUARTER 2019 EARNINGS CALLbull 05022019

73 of the fleet now consists of more liquidnarrow-body aircraft

versus 36 five years ago

36

49

15

NBs WBs Freighters Classics

73

23

4

NBs WBs Freighters

9336

23

NBs WBs Freighters Classics

229

26

4

NBs WBs Freighters

Fleet EvolutionSignificant Fleet Risk Reduction

Since Q115 the number of wide-body freighter

and classic aircraft declined from a total of 59 aircraft to 30 aircraft

Q115 Aircraft Count Q119 Aircraft Count

Q115 Fleet Type (By NBV) Q119 Fleet Type (By NBV)

Aircastle continues to add in-demand narrow-bodies to the Companyrsquos fleet

10FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Portfolio Metrics

Since Q115 expanded owned fleet at a compound annual growth rate of 71

$ in billions Q115 Q119 Q119 vs Q115

Flight Equipment Held for Lease1 $58 $76 + $18

Wtd Avg Fleet Age (years)2 83 94 + 11

Wtd Avg Lease Term (years)2 56 45 - 11

Managed JV Aircraft1 $05 $07 + $02

1 Calculated using NBV at period end2 Weighted average by NBV

NBV as used throughout this presentation includes the net book value of flight equipment held for lease and the net investment in direct financing and sales-type leases

11FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Diversified Customer Base with Broad Geographic Distribution

86 airline customers in 47countries across the globe

Most top customers are large flag carriers and leading LCCs

Balanced distribution of the aircraft fleet by geographic region

Asia represents 37 of portfolio NBV followed by Europe at 29

South America represents 10 North America 9

Top Ten Lessees of NBV1 per

customer Customer Country Aircraft

gt6 IndiGo India 17

3-6

Lion Air Indonesia 11

LATAM Chile 3

TAP Portugal Portugal 8

Iberia Spain 15

SAA SouthAfrica 4

easyJet UnitedKingdom 20

Jeju Air SouthKorea 9

lt3Aerolineas Argentinas Argentina 5

Interjet Mexico 11

1 As of March 31 2019

Top Ten Countries

Country AC of NBV1

India 28 122

Indonesia 15 66

Russia 11 60

United Kingdom 30 52

South Korea 14 51

Portugal 8 45

Chile 3 44

USA 15 42

Mexico 16 42

Spain 16 41

12FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Leasing Activity and Portfolio Performance

Note Aircraft on-lease days as a percent of total days in period weighted by NBV

937 utilization during Q119 was below trend primarily due to the bankruptcies of Avianca Brazil and Jet Airways

We expect these aircraft to return to service in mid Q219 with utilization to begin normalizing

Three aircraft remaining to be sold or placed in 2019 represents 15 of NBV

Utilization Performance

Utilization has averaged 988 since Q115

80

82

84

86

88

90

92

94

96

98

100

Q1

15

Q1

16

Q1

17

Q1

18

Q1

19

13FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Rental Yields and Net Cash Interest Margins

Approximately 85bps of the reduction reflects unrecognized rental revenue from AviancaBrazil and Jet Airways

105 lease rental yield 12 and 73 net cash interest margin1

114 pro-forma3 lease rental yield12 81 and net cash interest margin13

We expect the net cash interest margin to rebound in the second half of 2019 as the Avianca Brazil and Jet Airways aircraft return to revenue service

0

2

4

6

8

10

12

14

Q1

15

Q2

15

Q3

15

Q4

15

Q1

16

Q2

16

Q3

16

Q4

16

Q1

17

Q2

17

Q3

17

Q4

17

Q1

18

Q2

18

Q3

18

Q4

18

Q1

19

Pro-

form

aQ

119

Lease Rental Yield Net Cash Interest Margin

105

73

1 Refer to the selected financial Information accompanying this presentation for a reconciliation of GAAP to Non-GAAP numbers

2 Lease Rental Yield = Operating and finance lease rental revenue plus direct financing and sales-typelease collections average monthly NBV including direct financing and sales-type leases for the period calculated on a quarterly basis annualized

3 Adds back $159 million of lease rental revenue in Q119 to show the impact of the bankruptcies of Avianca Brazil and Jet Airways on Lease Rental Yield and Net Cash Interest Margin

1 2 13

Pro-forma 23

114

Pro-forma 13

81

14FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Cash ROE Performance

Q119 118

AVG 140

Trailing twelve month Cash ROE1 was 118 versus 160 a year ago

GAAP ROE of 114

Cash flow from operations of $5100 million was $248million lower for LTM ended Q119 versus comparable period a year earlier

Q119 Pro-forma Cash ROE including unrecognized rental revenue of $159 million associated with Avianca Brazil and Jet Airways bankruptcies approximates 1262

1 Refer to the selected financial Information accompanying this presentation for a reconciliation of GAAP to Non-GAAP numbers

2 Adds $159 million of lease rental revenue to the last twelve months Cash Flow From Operations to show the estimated impact of the bankruptcies of AviancaBrazil and Jet Airways on Cash ROE

0

2

4

6

8

10

12

14

16

18

Q1

15

Q2

15

Q3

15

Q4

15

Q1

16

Q2

16

Q3

16

Q4

16

Q1

17

Q2

17

Q3

17

Q4

17

Q1

18

Q2

18

Q3

18

Q4

18

Q1

19

Cash

Ret

urn

on A

vera

ge S

hare

hold

errsquos

Equ

ity

15FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Q119 Capital Structure

Strong liquidity profile and low financial leverage minimal forward commitments

Net debt to equity of 24x84 of total debt was unsecured at quarter-end

Average remaining life of debt is 32 years$500 million note matures in 2019

$705 million in available revolver capacity $375 million drawn from a total of $108 billionUnrestricted cash of $93 million

$63 billion of unencumbered flight equipment ndash 228 aircraft

16FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Selected Financial Guidance Elements for Q219

Guidance Item Q219

Lease rental revenue1 $186 - $190

Direct financing and sales-type lease revenue $8 - $9

Amortization of lease premiums discounts and incentives $(5) - $(6)

Maintenance revenue2 $16 - $20

Gain on sale $4 - $8

Depreciation $87 - $90

Interest net $66 - $69

SGampA3 $18 - $19

Full year effective tax rate 7 - 9

1 Reflects the return to service of Avianca Brazil and Jet Airways aircraft commencing in Q219 2 Includes $101M of net maintenance revenue (maintenance reserves net of a transactional impairment) in connection with the early return of seven aircraft from Jet Airways3 Includes $32M of non-cash share based payment expense

17FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Appendix

18FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Q119 Capital Structure amp Liquidity Summary

Note The debt totals in the above table do not include debt issuance costs or discounts which are reflected in the net debt totals that are displayed on the consolidated balance sheet

Aircastles Capital Structure

As of Mar 31 2019 As of Dec 31 2018 As of Dec 31 2017($ in millions)Unrestricted cash and cash equivalents $ 93 $ 153 $ 212 Debt O S Rate1 O S Rate1 O S Rate1

ECA Term Financings 179 358 189 358 227 359Bank Financings 603 464 620 473 635 368

Total Secured Debt 783 440 809 446 863 365

Senior Notes due 2018 - - - - 400 463Senior Notes due 2019 500 625 500 625 500 625Senior Notes due 2020 300 763 300 763 300 763Senior Notes due 2021 500 513 500 513 500 513Senior Notes due 2022 500 550 500 550 500 550Senior 500 Notes due 2023 500 500 500 500 500 500Senior 440 Notes due 2023 650 440 650 440 - -Senior Notes due 2024 500 413 500 413 500 413Bank Revolvers 375 399 425 401 175 368Other Unsecured Bank Financings 335 424 120 434 120 359

Total Unsecured Debt 4160 506 3995 510 3495 521

Total Debt and Weighted Avg Rate 4943 496 4804 499 4358 490Shareholdersrsquo equity 2013 2009 1908 Total capitalization $ 6956 $ 6812 $ 6265

Net debt to equity 24 x 23 x 22 xUnsecured debt to total debt 84 83 80

19FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Supplemental Financial Information

Three Months Ended

March 31in thousands except per share amounts 2019 2018

Revenues $ 213927 $ 202680

EBITDA $ 191817 $ 191941

Adjusted EBITDA $ 199347 $ 191145

Net income $ 34810 $ 57547Net income allocable to common shares $ 34609 $ 57232

Per common share - Basic $ 046 $ 073Per common share - Diluted $ 046 $ 073

Adjusted net income $ 39616 $ 56751Adjusted net income allocable to common shares $ 39387 $ 56440

Per common share - Basic $ 053 $ 072Per common share - Diluted $ 052 $ 072

Basic common shares outstanding 74704 78367Diluted common shares outstanding 75274 78595

20FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Reconciliation of GAAP to Non-GAAP Measures ndash EBITDA and Adjusted EBITDA

We define EBITDA as income (loss) from continuing operations before income taxes interest expense and depreciation and amortization We use EBITDA to assess our consolidated financial and operating performance and we believe this non-US GAAP measure is helpful in identifying trends in our performance

This measure provides an assessment of controllable expenses and affords management the ability to make decisions which are expected to facilitate meeting current financial goals as well as achieving optimal financial performance It provides an indicator for management to determine if adjustments to current spending decisions are needed

EBITDA provides us with a measure of operating performance because it assists us in comparing our operating performance on a consistent basis as it removes the impact of our capital structure (primarily interest charges on our outstanding debt) and asset base (primarily depreciation and amortization) from our operating results

Accordingly this metric measures our financial performance based on operational factors that management can impact in the short-term namely the cost structure or expenses of the organization EBITDA is one of the metrics used by senior management and the board of directors to review the consolidated financial performance of our business

We define Adjusted EBITDA as EBITDA (as defined above) further adjusted to give effect to adjustments required in calculating covenant ratios and compliance as that term is defined in the indenture governing our senior unsecured notes Adjusted EBITDA is a material component of these covenants

2019 2018

Net income $ 34810 $ 57547

Depreciation 84735 75002

Amortization of lease premiums discounts and incentives 5711 3128

Interest net 63463 57108

Income tax provision 3098 (844)

EBITDA 191817 191941

Adjustments

Equity share of joint venture impairment 2724 -

Non-cash share based payment expense 2726 2378

(Gain) loss on MTM of interest rate derivative contracts 2080 (3174)

Adjusted EBITDA $ 199347 $ 191145

Three Mos Ended Dec 31

(Dollars in thousands)

Sheet1

Sheet2

Sheet3

21FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Reconciliation of GAAP to Non-GAAP Measures ndash Adjusted Net Income

Management believes that ANI when viewed in conjunction with the Companyrsquos results under US GAAP and the above reconciliation provides useful information about operating and period-over-period performance and provides additional information that is useful for evaluating the underlying operating performance of our business without regard to periodic reporting elements related to interest rate derivative accounting changes related to refinancing activity and non-cash share based payment expense

1 Included in Other income (expense)2 Included in Selling general and administrative expenses

Net Income Loss on mark-to-market of interest rate derivative contracts(1)

Non-cash share-based payment expense(2)

Adjusted Net Income2726 2378

39616$ 56751$

For the Three Months Ended March 31

2019 2018

34810$ 57547$ 2080 (3174)

Sheet1

22FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Reconciliation of GAAP to non-GAAP Measures - Cash Earnings and Cash ROE

Note LTM Average Shareholdersrsquo Equity is the average of the most recent five quarters period end Shareholdersrsquo Equity Management believes that the cash return on equity metric (ldquoCash ROErdquo) when viewed in conjunction with the Companyrsquos results under US GAAP and the above reconciliation provide useful information about operating and period-over-period performance and provide additional information that is useful for evaluating the underlying operating performance of our business without regard to periodic reporting impacts related to non-cash revenue and expense items and interest rate derivative accounting while recognizing the depreciating nature of our assets To reflect the expected sale of the assets in one of our joint ventures and to simplify the presentation of Cash ROE we are no longer adjusting for joint venture distributions in excess ofless than joint venture earnings recorded under the equity method of investment accounting

Pro-forma Q119 estimates the impact of the Avianca Brazil and Jet Airways bankruptcies on Cash ROE by adding $159 million to Cash Flow From Operations in the first quarter of 2019

Dollars in thousands

LTM Ended CFFO +Gain on Sale

of Eqt - Deprec =Cash

Earnings

Average Shareholders

Equity

Trailing 12 Month Cash

ROEQ115 $498536 $28289 $300284 $226541 $1682857 135Q116 $525569 $64597 $320584 $269582 $1769981 152Q117 $499768 $27052 $307743 $219077 $1804573 121Q118 $534771 $60176 $294492 $300455 $1881633 160Q119 $510008 $43000 $320583 $232425 $1976235 118

Pro-forma Q119 $525899 $43000 $320583 $248316 $1976235 126

23FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Net Cash Interest Margin Calculation

1 We define net cash interest margin as lease rentals from operating leases interest income and cash collections from direct financing and sales-type leases minus interest on borrowings net settlements on interest rate derivatives and other liabilities adjusted for loan termination payments divided by the average net book of flight equipment (which includes net investment in direct financing and sales-type leases) for the period calculated on a quarterly and annualized basis The second quarter of 2017 excludes a non-recurring $70 million accelerated collection received from a lessee in connection with a finance lease

2 Excludes loan termination payments of $15 million and $35 million in the first quarter and fourth quarter of 2016 respectively and loan termination payments of $10 million in both the second and third quarters of 2017 and an $08 million loan termination gain in the third quarter of 2018

Management believes that net cash interest margin when viewed in conjunction with the Companyrsquos results under US GAAP and the above reconciliation provides useful information about the effective deployment of our capital in the context of the yield on our aircraft assets the utilization of those assets by our lessees and our ability to borrow efficiently

Except for percentages all figures are $ in thousands

3 Pro-forma Q119 estimates the impact of the Avianca Brazil and Jet Airways bankruptcies on annualized net cash interest margin by adding $159 million to quarterly rental revenue in the first quarter of 2019

Average NBV

Quarterly Rental

Revenue1 Cash Interest2

Annualized Net Cash Interest

Margin12

Q115 5743035$ 181027$ 50235$ 91Q215 5967898$ 189238$ 51413$ 92Q315 6048330$ 191878$ 51428$ 93Q415 5962874$ 188491$ 51250$ 92Q116 5988076$ 186730$ 51815$ 90Q216 5920030$ 184469$ 55779$ 87Q316 6265175$ 193909$ 57589$ 87Q416 6346361$ 196714$ 58631$ 87Q117 6505355$ 200273$ 58839$ 87Q217 6512100$ 199522$ 55871$ 88Q317 5985908$ 184588$ 53457$ 88Q417 6247581$ 187794$ 53035$ 86Q118 6700223$ 193418$ 53978$ 83Q218 6721360$ 193988$ 53979$ 83Q318 6787206$ 200354$ 54521$ 86Q418 7136627$ 200027$ 60348$ 78Q119 7449957$ 195601$ 60279$ 73

Pro-forma Q119 7449957$ 211501$ 60279$ 81 33

Summary

Data

Chart in Powerpoint

Chart in Press Release

TABLE

24FIRST QUARTER 2019 EARNINGS CALLbull 05022019

As part of the Companyrsquos adoption of ASC 842 we were required to reclassify collections on direct financing and sales-type leases on our Consolidated Statement of Cash Flows for the three months ended March 31 2019 The presentation for the three months ended March 31 2018 has also been reclassified to conform to the current period presentation

Reclassification of Collections on Direct Financing and Sales-Type Leases

Three Months Ended March 31 2018

Net cash and restricted cash provided by operating activities as previously reported $142412

Collections on direct financing and sales-type leases 6493

Net cash and restricted cash provided by operating activities $148905

25FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Book Value Per Share Calculation

As of Mar 31Shares Issued and Outstanding (000)

Shareholders Equity ($000)

Book Value Per Share Change

2015 81181 $1753552 $2160 172016 78811 $1770884 $2247 402017 78718 $1856084 $2358 492018 78539 $1937454 $2467 462019 75078 $2012939 $2681 87

Q115-Q119 CAGR 56

26FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Supplemental Financial Information

Except for percentages all figures are in thousands1 For the three months ended March 31 2019 distributed and undistributed earnings to restricted shares was 058 of net income and adjusted net income The amount of restricted share

forfeitures for the period presented is immaterial to the allocation of distributed and undistributed earnings2 For all periods presented dilutive shares represented contingently issuable shares

Weighted-average shares Shares Percent2

Common shares outstanding ndash Basic 74704 9942Unvested restricted common shares 435 058Total weighted-average shares outstanding 75138 10000

Common shares outstanding ndash Basic 74704 9924Effect of dilutive shares1 570 076Common shares outstanding ndash Diluted 75274 10000

Net income allocationNet income $ 34810 10000Distributed and undistributed earnings allocated to unvested restricted shares (201) -058Earnings available to common shares $ 34609 9942

Adjusted net income allocationAdjusted net income $ 39616 10000Amounts allocated to unvested restricted shares (229) -058Amounts allocated to common shares $ 39387 9942

Three Months Ended March 31 2019

Sheet1

27FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Supplemental Financial Information

Except for percentages all figures are in thousands1 For the three months ended March 31 2018 distributed and undistributed earnings to restricted shares was 055 of net income and adjusted net income The amount of restricted share

forfeitures for the period presented is immaterial to the allocation of distributed and undistributed earnings2 For all periods presented dilutive shares represented contingently issuable shares

Weighted-average shares Shares Percent2

Common shares outstanding ndash Basic 78367 9945Unvested restricted common shares 431 055Total weighted-average shares outstanding 78798 10000

Common shares outstanding ndash Basic 78367 9971Effect of dilutive shares1 228 029Common shares outstanding ndash Diluted 78595 10000

Net income allocationNet income $ 57547 10000Distributed and undistributed earnings allocated to unvested restricted shares (315) -055Earnings available to common shares $ 57232 9945

Adjusted net income allocationAdjusted net income $ 56751 10000Amounts allocated to unvested restricted shares (311) -055Amounts allocated to common shares $ 56440 9945

Three Months Ended March 31 2018

Sheet1

28FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Limitations of EBITDA Adjusted EBITDA ANI Cash ROE and Net Cash Interest Margin

An investor or potential investor may find EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin important measures in evaluating our performance results of operations and financial position We use these non-US GAAP measures to supplement our US GAAP results in order to provide a more complete understanding of the factors and trends affecting our business

EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin have limitations as analytical tools and should not be viewed in isolation or as substitutes for US GAAP measures of earnings Material limitations in making the adjustments to ourearnings to calculate EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin and using these non-US GAAP measures as compared to US GAAP net income income from continuing operations and cash flows provided by or used in operations include

depreciation and amortization though not directly affecting our current cash position represent the wear and tear andor reduction in value of our aircraft which affects the aircraftrsquos availability for use and may be indicative of future needs for capital expenditures

the cash portion of income tax (benefit) provision generally represents charges (gains) which may significantly affect our financial results

elements of our interest rate derivative accounting may be used to evaluate the effectiveness of our hedging policy

hedge loss amortization charges related to Term Financing No 1 and Securitization No 1 and

adjustments required in calculating covenant ratios and compliance as that term is defined in the indenture governing our seniorunsecured notes

EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin are not alternatives to net income income from operations or cash flows provided by or used in operations as calculated and presented in accordance with US GAAP You should not rely on these non-US GAAP measures as a substitute for any such US GAAP financial measure We strongly urge you to review the reconciliations to US GAAP net income along with our consolidated financial statements included elsewhere in our Annual Report We also strongly urge you to not rely on any single financial measure to evaluate our business In addition because EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin are not measures of financial performance under US GAAP and are susceptible to varying calculations EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin as presented here may differ from and may not be comparable to similarly titled measures used by other companies

  • Slide Number 1
  • Slide Number 2
  • Slide Number 3
  • Slide Number 4
  • Slide Number 5
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
Three Months Ended March 31 2019 Three Months Ended March 31 2019
Weighted-average shares Shares Percent2 Weighted-average shares Shares Percent2
Common shares outstanding ndash Basic 74704 9942 Common shares outstanding ndash Basic 74704 9942
Unvested restricted common shares 435 058 Unvested restricted common shares 435 058
Total weighted-average shares outstanding 75138 10000 Total weighted-average shares outstanding 75138 10000
Common shares outstanding ndash Basic 74704 9924 Common shares outstanding ndash Basic 74704 9924
Effect of dilutive shares1 570 076 Effect of dilutive shares1 570 076
Common shares outstanding ndash Diluted 75274 10000 Common shares outstanding ndash Diluted 75274 10000
Net income allocation Net income allocation
Net income $ 34810 10000 Net income $ 34810 10000
Distributed and undistributed earnings allocated to unvested restricted shares (201) -058 Distributed and undistributed earnings allocated to unvested restricted shares (201) -058
Earnings available to common shares $ 34609 9942 Earnings available to common shares $ 34609 9942
Adjusted net income allocation Adjusted net income allocation
Adjusted net income $ 39616 10000 Adjusted net income $ 39616 10000
Amounts allocated to unvested restricted shares (229) -058 Amounts allocated to unvested restricted shares (229) -058
Amounts allocated to common shares $ 39387 9942 Amounts allocated to common shares $ 39387 9942
Three Months Ended March 31 2018 Three Months Ended March 31 2018
Weighted-average shares Shares Percent2 Weighted-average shares Shares Percent2
Common shares outstanding ndash Basic 78367 9945 Common shares outstanding ndash Basic 78367 9945
Unvested restricted common shares 431 055 Unvested restricted common shares 431 055
Total weighted-average shares outstanding 78798 10000 Total weighted-average shares outstanding 78798 10000
Common shares outstanding ndash Basic 78367 9971 Common shares outstanding ndash Basic 78367 9971
Effect of dilutive shares1 228 029 Effect of dilutive shares1 228 029
Common shares outstanding ndash Diluted 78595 10000 Common shares outstanding ndash Diluted 78595 10000
Net income allocation Net income allocation
Net income $ 57547 10000 Net income $ 57547 10000
Distributed and undistributed earnings allocated to unvested restricted shares (315) -055 Distributed and undistributed earnings allocated to unvested restricted shares (315) -055
Earnings available to common shares $ 57232 9945 Earnings available to common shares $ 57232 9945
Adjusted net income allocation Adjusted net income allocation
Adjusted net income $ 56751 10000 Adjusted net income $ 56751 10000
Amounts allocated to unvested restricted shares (311) -055 Amounts allocated to unvested restricted shares (311) -055
Amounts allocated to common shares $ 56440 9945 Amounts allocated to common shares $ 56440 9945
Three Months Ended March 31 2019 Three Months Ended March 31 2019
Weighted-average shares Shares Percent2 Weighted-average shares Shares Percent2
Common shares outstanding ndash Basic 74704 9942 Common shares outstanding ndash Basic 74704 9942
Unvested restricted common shares 435 058 Unvested restricted common shares 435 058
Total weighted-average shares outstanding 75138 10000 Total weighted-average shares outstanding 75138 10000
Common shares outstanding ndash Basic 74704 9924 Common shares outstanding ndash Basic 74704 9924
Effect of dilutive shares1 570 076 Effect of dilutive shares1 570 076
Common shares outstanding ndash Diluted 75274 10000 Common shares outstanding ndash Diluted 75274 10000
Net income allocation Net income allocation
Net income $ 34810 10000 Net income $ 34810 10000
Distributed and undistributed earnings allocated to unvested restricted shares (201) -058 Distributed and undistributed earnings allocated to unvested restricted shares (201) -058
Earnings available to common shares $ 34609 9942 Earnings available to common shares $ 34609 9942
Adjusted net income allocation Adjusted net income allocation
Adjusted net income $ 39616 10000 Adjusted net income $ 39616 10000
Amounts allocated to unvested restricted shares (229) -058 Amounts allocated to unvested restricted shares (229) -058
Amounts allocated to common shares $ 39387 9942 Amounts allocated to common shares $ 39387 9942
Three Months Ended March 31 2018 Three Months Ended March 31 2018
Weighted-average shares Shares Percent2 Weighted-average shares Shares Percent2
Common shares outstanding ndash Basic 78367 9945 Common shares outstanding ndash Basic 78367 9945
Unvested restricted common shares 431 055 Unvested restricted common shares 431 055
Total weighted-average shares outstanding 78798 10000 Total weighted-average shares outstanding 78798 10000
Common shares outstanding ndash Basic 78367 9971 Common shares outstanding ndash Basic 78367 9971
Effect of dilutive shares1 228 029 Effect of dilutive shares1 228 029
Common shares outstanding ndash Diluted 78595 10000 Common shares outstanding ndash Diluted 78595 10000
Net income allocation Net income allocation
Net income $ 57547 10000 Net income $ 57547 10000
Distributed and undistributed earnings allocated to unvested restricted shares (315) -055 Distributed and undistributed earnings allocated to unvested restricted shares (315) -055
Earnings available to common shares $ 57232 9945 Earnings available to common shares $ 57232 9945
Adjusted net income allocation Adjusted net income allocation
Adjusted net income $ 56751 10000 Adjusted net income $ 56751 10000
Amounts allocated to unvested restricted shares (311) -055 Amounts allocated to unvested restricted shares (311) -055
Amounts allocated to common shares $ 56440 9945 Amounts allocated to common shares $ 56440 9945
Q119 Q418 Q318 Q119 B (W) vs Q418
Average NBV for the 4th and 3rd Quarters of 2018 $ 7449957 $ 7136627 $ 6787206 $ 313330 Average NBV 44 higher Q418 to Q119
Operating and Finance Lease Revenues $ 189676 $ 192711 $ 190836 $ (3034)
Finance Lease Collections $ 5925 $ 7316 $ 9518 $ (1391)
Annualized Portfolio Yield 105 112 118 -07 Annualized yield 71bps lower
Cash Interest Expense $ 60279 $ 60348 $ 54521 $ 69
Annualized Cash Interest 32 34 32 01 Annualized cash int exp 15bps lower
Annualized Cash Net Interest Margin 73 78 86 -06 Annualized cash margin 56bps lower
Average NBV Quarterly Rental Revenue(1) Cash Interest(2) Annualized Net Cash Interest Margin(1)(2) Yield Cash Interest Expense
Q112 $ 4388008 $ 152242 $ 44969 98 139 410
Q212 $ 4542477 $ 156057 $ 48798 94 137 430
Q312 $ 4697802 $ 163630 $ 41373 104 139 352
Q412 $ 4726457 $ 163820 $ 43461 102 139 368
Q113 $ 4740161 $ 162319 $ 48591 96 137 410
Q213 $ 4840396 $ 164239 $ 44915 99 136 371
Q313 $ 4863444 $ 167876 $ 47682 99 138 392
Q413 $ 5118601 $ 176168 $ 49080 99 138 384
Q114 $ 5312651 $ 181095 $ 51685 97 136 389
Q214 $ 5721521 $ 190574 $ 48172 100 133 337
Q314 $ 5483958 $ 182227 $ 44820 100 133 327
Q414 $ 5468637 $ 181977 $ 44459 101 133 325
Q115 $ 5743035 $ 181027 $ 50235 91 126 350
Q215 $ 5967898 $ 189238 $ 51413 92 127 345
Q315 $ 6048330 $ 191878 $ 51428 93 127 340
Q415 $ 5962874 $ 188491 $ 51250 92 126 344
Q116 $ 5988076 $ 186730 $ 51815 90 125 346
Q216 $ 5920030 $ 184469 $ 55779 87 125 377
Q316 $ 6265175 $ 193909 $ 57589 87 124 368
Q416 $ 6346361 $ 196714 $ 58631 87 124 370
Q117 $ 6505355 $ 200273 $ 58839 87 123 362
Q217 $ 6512100 $ 199522 $ 55871 88 123 343
Q317 $ 5985908 $ 184588 $ 53457 88 123 357
Q417 $ 6247581 $ 187794 $ 53035 86 120 340
Q118 $ 6700223 $ 193418 $ 53978 83 115 322
Q218 $ 6721360 $ 193988 $ 53979 83 115 321
Q318 $ 6787206 $ 200354 $ 54521 86 118 321
Q418 $ 7136627 $ 200027 $ 60348 78 112 338
Q119 $ 7449957 $ 195601 $ 60279 73 105 324
Pro-forma Q119 $ 7449957 $ 211501 $ 60279 81 114 324
Average NBV Quarterly Rental Revenue1 Cash Interest2 Annualized Net Cash Interest Margin12 Yield Cash Interest Expense
Q113 $ 4740161 $ 162319 $ 48591 96 137 410
Q213 $ 4840396 $ 164239 $ 44915 99 136 371
Q313 $ 4863444 $ 167876 $ 47682 99 138 392
Q413 $ 5118601 $ 176168 $ 49080 99 138 384
Q114 $ 5312651 $ 181095 $ 51685 97 136 389
Q214 $ 5721521 $ 190574 $ 48172 100 133 337
Q314 $ 5483958 $ 182227 $ 44820 100 133 327
Q414 $ 5468637 $ 181977 $ 44459 101 133 325
Q115 $ 5743035 $ 181027 $ 50235 91 126 350
Q215 $ 5967898 $ 189238 $ 51413 92 127 345
Q315 $ 6048330 $ 191878 $ 51428 93 127 340
Q415 $ 5962874 $ 188491 $ 51250 92 126 344
Q116 $ 5988076 $ 186730 $ 51815 90 125 346
Q216 $ 5920030 $ 184469 $ 55779 87 125 377
Q316 $ 6265175 $ 193909 $ 57589 87 124 368
Q416 $ 6346361 $ 196714 $ 58631 87 124 370
Q117 $ 6505355 $ 200273 $ 58839 87 123 362
Q217 $ 6512100 $ 199522 $ 55871 88 123 343
Q317 $ 5985908 $ 184588 $ 53457 88 123 357
Q417 $ 6247581 $ 187794 $ 53035 86 120 340
Q118 $ 6700223 $ 193418 $ 53978 83 115 322
Q218 $ 6721360 $ 193988 $ 53979 83 115 321
Q318 $ 6787206 $ 200354 $ 54521 86 118 321
Q418 $ 7136627 $ 200027 $ 60348 78 112 338
Q119 $ 7449957 $ 195601 $ 60279 73 105 324
Pro-forma Q119 $ 7449957 $ 211501 $ 60279 81 114 324
NBV FE Fin Lease NBV Flight Equip + Fin Lease Lease Rentals Interest Inc Fin lease Collections on Fin Leases Total Lease Rent Collections Quarterly Lease rent Collections Cash Interest Loan and Contract Termination Fees included in Cash Interest Adj Cash Int NIM $ NIM Yield Cash Int
Month End Month End Month End Mo Avg Qtrly Avg MTD MTD QTD QTD QTD
DEC10 4065780 - 0 4065780
JAN11 3981690 - 0 3981690 4023735 - 0 47091 - 0 - 0 47091 - 0 - 0 - 0
FEB11 4051167 - 0 4051167 4016428 - 0 47264 - 0 - 0 47264 - 0 - 0 - 0
MAR11 4120309 - 0 4120309 4085738 4041967 46761 - 0 - 0 46761 141116 $ 41278 41278 99838 988
APR11 4125377 - 0 4125377 4122843 - 0 47211 - 0 - 0 47211 - 0 - 0 - 0
MAY11 4194987 - 0 4194987 4160182 - 0 47897 - 0 - 0 47897 - 0 - 0 - 0
JUN11 4099641 - 0 4099641 4147314 4143446 48248 - 0 - 0 48248 143356 $ 43217 $ 3196 40021 103335 998
JUL11 4271013 - 0 4271013 4185327 - 0 47994 - 0 - 0 47994 - 0 - 0 - 0
AUG11 4248242 - 0 4248242 4259628 - 0 49193 - 0 - 0 49193 - 0 - 0 - 0
SEP11 4196918 - 0 4196918 4222580 4222512 48704 - 0 - 0 48704 145890 $ 42066 42066 103824 984
OCT11 4430527 - 0 4430527 4313723 - 0 49054 - 0 - 0 49054 - 0 - 0 - 0
NOV11 4401782 - 0 4401782 4416155 - 0 50498 - 0 - 0 50498 - 0 - 0 - 0
DEC11 4387986 - 0 4387986 4394884 4374921 50297 - 0 - 0 50297 149848 $ 43041 43041 106807 977
JAN12 4391666 - 0 4391666 4389826 - 0 51034 - 0 - 0 51034 - 0 - 0 - 0
FEB12 4385360 - 0 4385360 4388513 - 0 49705 - 0 - 0 49705 - 0 - 0 - 0
MAR12 4386010 - 0 4386010 4385685 4388008 51503 - 0 - 0 51503 152242 $ 44969 44969 107273 978
APR12 4484956 - 0 4484956 4435483 - 0 50824 - 0 - 0 50824 - 0 - 0 - 0
MAY12 4570712 31500 4602212 4543584 - 0 51020 - 0 - 0 51020 - 0 - 0 - 0
JUN12 4604493 90024 4694518 4648365 4542477 51781 956 1476 54213 156057 $ 48798 48798 107259 944
JUL12 4572121 90739 4662860 4678689 - 0 52892 963 - 0 53855 - 0 - 0 - 0
AUG12 4665966 90332 4756298 4709579 - 0 52945 948 - 0 53893 - 0 - 0 - 0
SEP12 4532445 121533 4653978 4705138 4697802 53709 1608 565 55881 163630 $ 41373 41373 122257 1041
OCT12 4574055 120934 4694990 4674484 - 0 52277 1311 - 0 53588 - 0 - 0 - 0
NOV12 4645741 120345 4766086 4730538 - 0 52596 1321 - 0 53917 - 0 - 0 - 0
DEC12 4662661 119951 4782612 4774349 4726457 53217 1286 1811 56314 163820 $ 43461 43461 120359 1019
JAN13 4639414 119339 4758753 4770682 - 0 52957 1298 - 0 54255 - 0 - 0 - 0
FEB13 4614480 118707 4733187 4745970 - 0 51936 1277 - 0 53213 - 0 - 0 - 0
MAR13 4544773 129700 4674474 4703830 4740161 51697 1309 1845 54850 162319 $ 48591 48591 113728 960
APR13 4621392 128981 4750373 4712423 - 0 51363 1384 - 0 52747 - 0 - 0 - 0
MAY13 4915814 128237 5044051 4897212 - 0 53613 1359 - 0 54972 - 0 - 0 - 0
JUN13 4651553 127504 4779057 4911554 4840396 52942 1370 2207 56520 164239 $ 47869 $ 2954 44915 119324 986
JUL13 4668642 149932 4818574 4798816 - 0 52469 1372 - 0 53840 - 0 - 0 - 0
AUG13 4690154 149017 4839171 4828873 - 0 53339 1423 - 0 54763 - 0 - 0 - 0
SEP13 4938113 148005 5086118 4962645 4863444 55340 1327 2606 59273 167876 $ 47682 47682 120194 989
OCT13 4913184 147017 5060200 5073159 - 0 56643 1350 - 0 57993 - 0 - 0 - 0
NOV13 5011676 146076 5157752 5108976 - 0 56264 1361 - 0 57625 - 0 - 0 - 0
DEC13 5044410 145173 5189583 5173668 5118601 56367 1333 2850 60550 176168 $ 49080 49080 127088 993
JAN14 5015452 144256 5159708 5174646 - 0 58142 1337 - 0 59478 - 0 - 0 - 0
FEB14 5129035 143356 5272392 5216050 - 0 57572 1354 - 0 58926 - 0 - 0 - 0
MAR14 5679723 142400 5822123 5547257 5312651 58621 1297 2773 62691 181095 $ 51685 51685 129410 974
APR14 5605462 155551 5761013 5791568 - 0 61276 1329 - 0 62604 - 0 - 0 - 0
MAY14 5512769 154435 5667205 5714109 - 0 60998 1338 - 0 62336 - 0 - 0 - 0
JUN14 5577966 72600 5650566 5658886 5721521 60957 1231 3446 65634 190574 $ 48172 48172 142402 996
JUL14 5418990 71971 5490961 5570764 - 0 60509 484 - 0 60993 - 0 - 0 - 0
AUG14 5412453 71345 5483799 5487380 - 0 59617 488 - 0 60105 - 0 - 0 - 0
SEP14 5232940 70723 5303663 5393731 5483958 58760 491 1877 61129 182227 $ 44820 44820 137407 1002
OCT14 5340303 88360 5428663 5366163 - 0 59394 480 - 0 59874 - 0 - 0 - 0
NOV14 5374566 107667 5482233 5455448 - 0 59717 542 - 0 60259 - 0 - 0 - 0
DEC14 5579718 106651 5686369 5584301 5468637 59091 537 2216 61844 181977 $ 44459 44459 137518 1006 1331 325 134 99
JAN15 5642590 105896 5748487 5717428 - 0 59898 539 - 0 60437 - 0 - 0 - 0
FEB15 5623616 105155 5728770 5738628 - 0 58688 552 - 0 59240 - 0 - 0 - 0
MAR15 5712950 104377 5817327 5773049 5743035 58560 516 2274 61350 181027 $ 50235 50235 130792 911 1261 350
APR15 5778092 119625 5897717 5857522 - 0 60016 589 - 0 60605 - 0 - 0 - 0
MAY15 5940205 118903 6059108 5978412 - 0 61684 628 - 0 62311 - 0 - 0 - 0
JUN15 5953555 122855 6076411 6067759 5967898 63140 660 2521 66322 189238 $ 51413 51413 137825 924 1268 345
JUL15 5942037 122200 6064238 6070324 - 0 63838 625 - 0 64463 - 0 - 0 - 0
AUG15 5917660 121542 6039202 6051720 - 0 62322 623 - 0 62945 - 0 - 0 - 0
SEP15 5885807 120882 6006689 6022946 6048330 61877 620 1973 64470 191878 $ 51428 51428 140450 929 1269 340
OCT15 5829040 103074 5932114 5969402 - 0 61959 611 - 0 62570 - 0 - 0 - 0
NOV15 5801167 117861 5919028 5925571 - 0 60485 623 - 0 61108 - 0 - 0 - 0
DEC15 5867062 201211 6068273 5993651 5962874 60949 1072 2791 64812 188491 $ 51250 51250 137241 921 1264 344 127 92
JAN16 5836479 198445 6034923 6051598 - 0 60245 1141 - 0 61387 - 0 - 0 - 0
FEB16 5796230 213436 6009666 6022295 - 0 60098 1161 - 0 61259 - 0 - 0 - 0
MAR16 5558666 212336 5771002 5890334 5988076 59227 1195 3663 64085 186730 $ 53324 1509 51815 134915 901 1247 346
APR16 5654825 211354 5866179 5818591 - 0 58383 1160 - 0 59544 - 0 - 0 - 0
MAY16 5659238 265253 5924490 5895335 - 0 58787 1432 - 0 60218 - 0 - 0 - 0
JUN16 5875935 291903 6167838 6046164 5920030 58955 1582 4170 64707 184469 55779 55779 128690 870 1246 377
JUL16 5980982 290048 6271030 6219434 - 0 60301 1805 - 0 62107 - 0 - 0 - 0
AUG16 6017274 288131 6305405 6288218 - 0 60757 1744 - 0 62501 - 0 - 0 - 0
SEP16 6004489 265854 6270343 6287874 6265175 60917 1805 6580 69301 193909 57589 57589 136320 870 1238 368
OCT16 6025556 264389 6289945 6280144 - 0 61757 1413 63170 - 0 - 0 - 0
NOV16 6097520 262667 6360187 6325066 - 0 62824 1357 64181 - 0 - 0 - 0
DEC16 6246707 260853 6507560 6433874 6346361 62969 1394 5000 69363 196714 62082 3451 58631 138083 870 1240 370 124 88
JAN17 6219012 259264 6478276 6492918 - 0 63296 1359 64655 - 0
FEB17 6227957 257474 6485431 6481853 - 0 63575 1288 64863 - 0
MAR17 6297190 299969 6597159 6541295 6505355 63715 1426 5614 70755 200273 58839 58839 141434 870 1231 362
APR17 6269189 348327 6617516 6607338 64119 1814 65933
MAY17 6156371 377186 6533557 6575537 63186 2079 65265
JUN17 5818821 354474 6173295 6353426 6512100 61794 1985 4545 68324 199522 56859 988 55871 143651 882 1226 343
JUL17 5615695 352411 5968106 6070700 59464 1954 61418
AUG17 5523543 390140 5913683 5940895 56603 1917 58520
SEP17 5490164 488408 5978572 5946128 5985908 55621 2541 6488 64650 184588 54527 1070 53457 131131 876 1233 357
OCT17 5493432 549212 6042644 6010608 55282 2833 58115
NOV17 5789587 554117 6343704 6193174 56823 3248 60071
DEC17 6188469 545750 6734219 6538962 6247581 57826 3272 8511 69609 187794 53035 53035 134759 863 1202 340 122 87
JAN18 6163924 543311 6707235 6720727 59570 3212 62782
FEB18 6173766 514024 6687790 6697513 59177 3007 62184
MAR18 6143695 533373 6677067 6682429 6700223 58736 3222 6493 68451 193418 53978 53978 139440 832 1155 322
APR18 6120068 531077 6651145 6664106 58481 2936 61417
MAY18 6257826 528503 6786329 6718737 59975 3015 62990
JUN18 6249406 526738 6776144 6781236 6721360 60030 2918 6634 69582 193988 53979 53979 140009 833 1154 321 12 MONTH CALCULATION
JUL18 6261431 523491 6784922 6780533 60815 2990 63804 Yield NIM
AUG18 6250137 519066 6769203 6777062 60517 2927 63444 2014 134 99
SEP18 6321623 517221 6838844 6804023 6787206 60712 2876 9518 73106 200354 53683 -838 54521 145833 859 1181 321 2015 127 92
OCT18 6602809 515251 7118060 6978452 62875 2742 65617 2016 124 88
NOV18 6657588 512429 7170017 7144039 61402 2610 64012 2017 122 87
DEC18 6935585 469180 7404765 7287391 7136627 60405 2677 7316 70398 200027 60348 60348 139679 783 1121 338 115 83 2018 115 83
JAN19 6900489 509725 7410214 7407489 59462 2959 62421 LTM Q119 112 80
FEB19 6907294 507653 7414948 7412581 62458 2701 65158
MAR19 7138689 505964 7644653 7529800 7449957 59314 2783 5925 68022 195601 60279 60279 135322 727 1050 324 112 80
wCollections on Finance Leases 2019 2018 2017
Finance Lease Collections Finance Lease Collections Finance Lease Collections
Yield Cash Interest Net Spread Avg NBV Lease Rent Interest YTD 5925 YTD 29961 YTD 32184
Q117 1231 362 870 6505355 200273 $ 58839 Q119 5925 Q118 6493 Q117 5614
Q119 1050 324 727 7449957 195601 60279 Q219 Q218 6634 Q217 11571
-181 -038 -143 Change 145 -23 24 Q319 Q318 9518 Q317 6488
Q419 Q418 7316 Q417 8511
Yield Cash Interest Net Spread Avg NBV Lease Rent Interest Finance Lease Revenue Finance Lease Revenue Finance Lease Revenue
Q118 1155 322 832 6700223 193418 53978 Q119 8442 Q418 8029 Q417 9353
Q119 1050 324 727 7449957 195601 60279 January 2959 October 2742 October 2833
-104 001 -106 Change 112 11 117 February 2701 November 2610 November 3248
March 2783 December 2677 December 3272
Yield Cash Interest Net Spread Avg NBV Lease Rent Interest
Q418 1121 338 783 7136627 200027 60348 Collections on Finance Leases excludes $70 million of unusual payments received from KLM in Q217
Q119 1050 324 727 7449957 195601 60279
-071 -015 -056 Change 44 -22 -01
112 w$17mm added to Q119
11 Actual 1050 324 727
Revised 1141 324 818
091 091
wCollections on Finance Leases
Yield Cash Interest Net Spread
Q314 13292 3269 1002
Q316 12380 3677 870
-0911 0408 -132
Yield Cash Interest Net Spread
Q315 12690 3401 929
Q316 12380 3677 870
-0310 0276 -059
Yield Cash Interest Net Spread
Q216 12464 3769 870
Q316 12380 3677 870
-0084 -0092 001
Old Format
Yield Cash Interest Net Spread
Q314 13221 3312 991
Q316 12173 3852 832
-1047 -0540 -159
Yield Cash Interest Net Spread
Q315 12691 3471 922
Q316 12173 3852 832
-0518 -0381 -090
Yield Cash Interest Net Spread
Q216 12409 3930 8479
Q316 12173 3852 8321
Change -0236 0078 -0159
For the Three Months Ended March 31
2019 2018
Net Income $ 34810 $ 57547
(Gain) loss on mark-to-market of interest rate derivative contracts(1) 2080 (3174)
Non-cash share-based payment expense(2) 2726 2378
Adjusted Net Income $ 39616 $ 56751
For the Three Months Ended March 31
2019 2018
Net Income $ 34810 $ 57547
Loss on mark-to-market of interest rate derivative contracts(1) 2080 (3174)
Non-cash share-based payment expense(2) 2726 2378
Adjusted Net Income $ 39616 $ 56751
Three Mos Ended Dec 31
2019 2018
(Dollars in thousands)
Net income $ 34810 $ 57547
Depreciation 84735 75002
Amortization of lease premiums discounts and incentives 5711 3128
Interest net 63463 57108
Income tax provision 3098 (844)
EBITDA 191817 191941
Adjustments
Equity share of joint venture impairment 2724 -
Non-cash share based payment expense 2726 2378
(Gain) loss on MTM of interest rate derivative contracts 2080 (3174)
Adjusted EBITDA $ 199347 $ 191145
Three Mos Ended Dec 31
2019 2018
(Dollars in thousands)
Net income $ 34810 $ 57547
Depreciation 84735 75002
Amortization of lease premiums discounts and incentives 5711 3128
Interest net 63463 57108
Income tax provision 3098 (844)
EBITDA 191817 191941
Adjustments
Equity share of joint venture impairment 2724 - 0
Non-cash share based payment expense 2726 2378
(Gain) loss on MTM of interest rate derivative contracts 2080 (3174)
Adjusted EBITDA $ 199347 $ 191145

4FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Key Financial Metrics ndash Q119

Net income was $348 million versus $575 million in Q118$046 per diluted common share versus $073 the previous year

Adjusted net income1 was $396 million versus $568 million in Q118

$052 per diluted common share versus $072 the previous yearAdjusted diluted EPS was above FactSet consensus EPS estimate of $046 for Q119

Adjusted EBITDA1 was $1993 million versus $1911 million the prior year

Cash ROE1 was 118 and Net cash interest margin1 was 73The bankruptcies of Avianca Brazil and Jet Airways reduced annualized net cash interest margin by approximately 85bps in Q119

1 Refer to the selected financial Information accompanying this presentation for a reconciliation of GAAP to Non-GAAP numbers

5FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Q119 Revenue Summary

Lease rental revenues of $1897 million up $28million vs Q118

Increase was driven by net fleet growth

Q119 rental revenues were $159 million lower due to the bankruptcies of Avianca Brazil and Jet Airways

Gain on sale up $62 millionSale of four aircraft resulted in a gain on sale of $83 million

$37 million of gain on sale due to reclassification of two other aircraft as direct financing and sales-type leases

Maintenance revenue of $164 million up $44 million due to transitions

Revenue Summary

$ in millions Q119 Q118

Lease Rental and Direct Financing and Sales-Type Lease Revenues $1897 $1869

Amortization of Lease Premiums Discounts and Incentives (57) (31)

Maintenance Revenue 164 120

Total Lease Revenue 2004 1958

Gain on Sale of Flight Equipment 120 58

Other Revenue 16 11

Total Revenues $2139 $2027

6FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Q119 Earnings Summary

Net income decreased $227million versus Q118 adjusted net income down $171 million

Primarily driven by $159 million of unrecognized rental revenue from Avianca Brazil and Jet Airways

Adjusted EBITDA was $1993million up $82 million from Q118

Reflects higher revenues of $112 million partially offset by higher maintenance and other costs of $64 million

Earnings Summary

$ in millions except per share amounts Q119 Q118

Net Income $348 $575

per diluted common share $046 $073

Adjusted Net Income1 $396 $568

per diluted common share $052 $072

EBITDA1 $1918 $1919

Adjusted EBITDA1 $1993 $1911

1 Refer to the selected financial Information accompanying this presentation for a reconciliation of GAAP to Non-GAAP numbers

7FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Q119 Acquisitions amp Sales

Acquired fourteen aircraft in Q119 for $445 million

Committed to acquire twelve additional aircraft for $385 million in 2019

Sold four aircraft for gain on sale of $83 million recognized $37 million of gains from the reclassification of two aircraft as direct financing and sales-type leases

Our 2019 placement task is nearly complete confirmed leases signed for ten Avianca Brazil A320s and seven Jet 737 family aircraft

Q119 Acquisitions amp Sales

Acquisitions1 Completed Sales

Investments Sales Proceeds $445 million $56 million

Total Number of Aircraft 14 4

1 Closed deals only through March 31 2019

8FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Robust Portfolio Management with an Active Asset Strategy

274 aircraft owned and managed at Q119

Since 2015

Acquired 227 aircraft

Sold 116 aircraft

Generated $201 million gains from sales and net proceeds of $25 billion

46

6068

39

14

31 3037

14

4

0

10

20

30

40

50

60

70

80

2015 2016 2017 2018 Q119

Num

ber o

f airc

raft

Purchases Sales

9FIRST QUARTER 2019 EARNINGS CALLbull 05022019

73 of the fleet now consists of more liquidnarrow-body aircraft

versus 36 five years ago

36

49

15

NBs WBs Freighters Classics

73

23

4

NBs WBs Freighters

9336

23

NBs WBs Freighters Classics

229

26

4

NBs WBs Freighters

Fleet EvolutionSignificant Fleet Risk Reduction

Since Q115 the number of wide-body freighter

and classic aircraft declined from a total of 59 aircraft to 30 aircraft

Q115 Aircraft Count Q119 Aircraft Count

Q115 Fleet Type (By NBV) Q119 Fleet Type (By NBV)

Aircastle continues to add in-demand narrow-bodies to the Companyrsquos fleet

10FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Portfolio Metrics

Since Q115 expanded owned fleet at a compound annual growth rate of 71

$ in billions Q115 Q119 Q119 vs Q115

Flight Equipment Held for Lease1 $58 $76 + $18

Wtd Avg Fleet Age (years)2 83 94 + 11

Wtd Avg Lease Term (years)2 56 45 - 11

Managed JV Aircraft1 $05 $07 + $02

1 Calculated using NBV at period end2 Weighted average by NBV

NBV as used throughout this presentation includes the net book value of flight equipment held for lease and the net investment in direct financing and sales-type leases

11FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Diversified Customer Base with Broad Geographic Distribution

86 airline customers in 47countries across the globe

Most top customers are large flag carriers and leading LCCs

Balanced distribution of the aircraft fleet by geographic region

Asia represents 37 of portfolio NBV followed by Europe at 29

South America represents 10 North America 9

Top Ten Lessees of NBV1 per

customer Customer Country Aircraft

gt6 IndiGo India 17

3-6

Lion Air Indonesia 11

LATAM Chile 3

TAP Portugal Portugal 8

Iberia Spain 15

SAA SouthAfrica 4

easyJet UnitedKingdom 20

Jeju Air SouthKorea 9

lt3Aerolineas Argentinas Argentina 5

Interjet Mexico 11

1 As of March 31 2019

Top Ten Countries

Country AC of NBV1

India 28 122

Indonesia 15 66

Russia 11 60

United Kingdom 30 52

South Korea 14 51

Portugal 8 45

Chile 3 44

USA 15 42

Mexico 16 42

Spain 16 41

12FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Leasing Activity and Portfolio Performance

Note Aircraft on-lease days as a percent of total days in period weighted by NBV

937 utilization during Q119 was below trend primarily due to the bankruptcies of Avianca Brazil and Jet Airways

We expect these aircraft to return to service in mid Q219 with utilization to begin normalizing

Three aircraft remaining to be sold or placed in 2019 represents 15 of NBV

Utilization Performance

Utilization has averaged 988 since Q115

80

82

84

86

88

90

92

94

96

98

100

Q1

15

Q1

16

Q1

17

Q1

18

Q1

19

13FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Rental Yields and Net Cash Interest Margins

Approximately 85bps of the reduction reflects unrecognized rental revenue from AviancaBrazil and Jet Airways

105 lease rental yield 12 and 73 net cash interest margin1

114 pro-forma3 lease rental yield12 81 and net cash interest margin13

We expect the net cash interest margin to rebound in the second half of 2019 as the Avianca Brazil and Jet Airways aircraft return to revenue service

0

2

4

6

8

10

12

14

Q1

15

Q2

15

Q3

15

Q4

15

Q1

16

Q2

16

Q3

16

Q4

16

Q1

17

Q2

17

Q3

17

Q4

17

Q1

18

Q2

18

Q3

18

Q4

18

Q1

19

Pro-

form

aQ

119

Lease Rental Yield Net Cash Interest Margin

105

73

1 Refer to the selected financial Information accompanying this presentation for a reconciliation of GAAP to Non-GAAP numbers

2 Lease Rental Yield = Operating and finance lease rental revenue plus direct financing and sales-typelease collections average monthly NBV including direct financing and sales-type leases for the period calculated on a quarterly basis annualized

3 Adds back $159 million of lease rental revenue in Q119 to show the impact of the bankruptcies of Avianca Brazil and Jet Airways on Lease Rental Yield and Net Cash Interest Margin

1 2 13

Pro-forma 23

114

Pro-forma 13

81

14FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Cash ROE Performance

Q119 118

AVG 140

Trailing twelve month Cash ROE1 was 118 versus 160 a year ago

GAAP ROE of 114

Cash flow from operations of $5100 million was $248million lower for LTM ended Q119 versus comparable period a year earlier

Q119 Pro-forma Cash ROE including unrecognized rental revenue of $159 million associated with Avianca Brazil and Jet Airways bankruptcies approximates 1262

1 Refer to the selected financial Information accompanying this presentation for a reconciliation of GAAP to Non-GAAP numbers

2 Adds $159 million of lease rental revenue to the last twelve months Cash Flow From Operations to show the estimated impact of the bankruptcies of AviancaBrazil and Jet Airways on Cash ROE

0

2

4

6

8

10

12

14

16

18

Q1

15

Q2

15

Q3

15

Q4

15

Q1

16

Q2

16

Q3

16

Q4

16

Q1

17

Q2

17

Q3

17

Q4

17

Q1

18

Q2

18

Q3

18

Q4

18

Q1

19

Cash

Ret

urn

on A

vera

ge S

hare

hold

errsquos

Equ

ity

15FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Q119 Capital Structure

Strong liquidity profile and low financial leverage minimal forward commitments

Net debt to equity of 24x84 of total debt was unsecured at quarter-end

Average remaining life of debt is 32 years$500 million note matures in 2019

$705 million in available revolver capacity $375 million drawn from a total of $108 billionUnrestricted cash of $93 million

$63 billion of unencumbered flight equipment ndash 228 aircraft

16FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Selected Financial Guidance Elements for Q219

Guidance Item Q219

Lease rental revenue1 $186 - $190

Direct financing and sales-type lease revenue $8 - $9

Amortization of lease premiums discounts and incentives $(5) - $(6)

Maintenance revenue2 $16 - $20

Gain on sale $4 - $8

Depreciation $87 - $90

Interest net $66 - $69

SGampA3 $18 - $19

Full year effective tax rate 7 - 9

1 Reflects the return to service of Avianca Brazil and Jet Airways aircraft commencing in Q219 2 Includes $101M of net maintenance revenue (maintenance reserves net of a transactional impairment) in connection with the early return of seven aircraft from Jet Airways3 Includes $32M of non-cash share based payment expense

17FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Appendix

18FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Q119 Capital Structure amp Liquidity Summary

Note The debt totals in the above table do not include debt issuance costs or discounts which are reflected in the net debt totals that are displayed on the consolidated balance sheet

Aircastles Capital Structure

As of Mar 31 2019 As of Dec 31 2018 As of Dec 31 2017($ in millions)Unrestricted cash and cash equivalents $ 93 $ 153 $ 212 Debt O S Rate1 O S Rate1 O S Rate1

ECA Term Financings 179 358 189 358 227 359Bank Financings 603 464 620 473 635 368

Total Secured Debt 783 440 809 446 863 365

Senior Notes due 2018 - - - - 400 463Senior Notes due 2019 500 625 500 625 500 625Senior Notes due 2020 300 763 300 763 300 763Senior Notes due 2021 500 513 500 513 500 513Senior Notes due 2022 500 550 500 550 500 550Senior 500 Notes due 2023 500 500 500 500 500 500Senior 440 Notes due 2023 650 440 650 440 - -Senior Notes due 2024 500 413 500 413 500 413Bank Revolvers 375 399 425 401 175 368Other Unsecured Bank Financings 335 424 120 434 120 359

Total Unsecured Debt 4160 506 3995 510 3495 521

Total Debt and Weighted Avg Rate 4943 496 4804 499 4358 490Shareholdersrsquo equity 2013 2009 1908 Total capitalization $ 6956 $ 6812 $ 6265

Net debt to equity 24 x 23 x 22 xUnsecured debt to total debt 84 83 80

19FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Supplemental Financial Information

Three Months Ended

March 31in thousands except per share amounts 2019 2018

Revenues $ 213927 $ 202680

EBITDA $ 191817 $ 191941

Adjusted EBITDA $ 199347 $ 191145

Net income $ 34810 $ 57547Net income allocable to common shares $ 34609 $ 57232

Per common share - Basic $ 046 $ 073Per common share - Diluted $ 046 $ 073

Adjusted net income $ 39616 $ 56751Adjusted net income allocable to common shares $ 39387 $ 56440

Per common share - Basic $ 053 $ 072Per common share - Diluted $ 052 $ 072

Basic common shares outstanding 74704 78367Diluted common shares outstanding 75274 78595

20FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Reconciliation of GAAP to Non-GAAP Measures ndash EBITDA and Adjusted EBITDA

We define EBITDA as income (loss) from continuing operations before income taxes interest expense and depreciation and amortization We use EBITDA to assess our consolidated financial and operating performance and we believe this non-US GAAP measure is helpful in identifying trends in our performance

This measure provides an assessment of controllable expenses and affords management the ability to make decisions which are expected to facilitate meeting current financial goals as well as achieving optimal financial performance It provides an indicator for management to determine if adjustments to current spending decisions are needed

EBITDA provides us with a measure of operating performance because it assists us in comparing our operating performance on a consistent basis as it removes the impact of our capital structure (primarily interest charges on our outstanding debt) and asset base (primarily depreciation and amortization) from our operating results

Accordingly this metric measures our financial performance based on operational factors that management can impact in the short-term namely the cost structure or expenses of the organization EBITDA is one of the metrics used by senior management and the board of directors to review the consolidated financial performance of our business

We define Adjusted EBITDA as EBITDA (as defined above) further adjusted to give effect to adjustments required in calculating covenant ratios and compliance as that term is defined in the indenture governing our senior unsecured notes Adjusted EBITDA is a material component of these covenants

2019 2018

Net income $ 34810 $ 57547

Depreciation 84735 75002

Amortization of lease premiums discounts and incentives 5711 3128

Interest net 63463 57108

Income tax provision 3098 (844)

EBITDA 191817 191941

Adjustments

Equity share of joint venture impairment 2724 -

Non-cash share based payment expense 2726 2378

(Gain) loss on MTM of interest rate derivative contracts 2080 (3174)

Adjusted EBITDA $ 199347 $ 191145

Three Mos Ended Dec 31

(Dollars in thousands)

Sheet1

Sheet2

Sheet3

21FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Reconciliation of GAAP to Non-GAAP Measures ndash Adjusted Net Income

Management believes that ANI when viewed in conjunction with the Companyrsquos results under US GAAP and the above reconciliation provides useful information about operating and period-over-period performance and provides additional information that is useful for evaluating the underlying operating performance of our business without regard to periodic reporting elements related to interest rate derivative accounting changes related to refinancing activity and non-cash share based payment expense

1 Included in Other income (expense)2 Included in Selling general and administrative expenses

Net Income Loss on mark-to-market of interest rate derivative contracts(1)

Non-cash share-based payment expense(2)

Adjusted Net Income2726 2378

39616$ 56751$

For the Three Months Ended March 31

2019 2018

34810$ 57547$ 2080 (3174)

Sheet1

22FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Reconciliation of GAAP to non-GAAP Measures - Cash Earnings and Cash ROE

Note LTM Average Shareholdersrsquo Equity is the average of the most recent five quarters period end Shareholdersrsquo Equity Management believes that the cash return on equity metric (ldquoCash ROErdquo) when viewed in conjunction with the Companyrsquos results under US GAAP and the above reconciliation provide useful information about operating and period-over-period performance and provide additional information that is useful for evaluating the underlying operating performance of our business without regard to periodic reporting impacts related to non-cash revenue and expense items and interest rate derivative accounting while recognizing the depreciating nature of our assets To reflect the expected sale of the assets in one of our joint ventures and to simplify the presentation of Cash ROE we are no longer adjusting for joint venture distributions in excess ofless than joint venture earnings recorded under the equity method of investment accounting

Pro-forma Q119 estimates the impact of the Avianca Brazil and Jet Airways bankruptcies on Cash ROE by adding $159 million to Cash Flow From Operations in the first quarter of 2019

Dollars in thousands

LTM Ended CFFO +Gain on Sale

of Eqt - Deprec =Cash

Earnings

Average Shareholders

Equity

Trailing 12 Month Cash

ROEQ115 $498536 $28289 $300284 $226541 $1682857 135Q116 $525569 $64597 $320584 $269582 $1769981 152Q117 $499768 $27052 $307743 $219077 $1804573 121Q118 $534771 $60176 $294492 $300455 $1881633 160Q119 $510008 $43000 $320583 $232425 $1976235 118

Pro-forma Q119 $525899 $43000 $320583 $248316 $1976235 126

23FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Net Cash Interest Margin Calculation

1 We define net cash interest margin as lease rentals from operating leases interest income and cash collections from direct financing and sales-type leases minus interest on borrowings net settlements on interest rate derivatives and other liabilities adjusted for loan termination payments divided by the average net book of flight equipment (which includes net investment in direct financing and sales-type leases) for the period calculated on a quarterly and annualized basis The second quarter of 2017 excludes a non-recurring $70 million accelerated collection received from a lessee in connection with a finance lease

2 Excludes loan termination payments of $15 million and $35 million in the first quarter and fourth quarter of 2016 respectively and loan termination payments of $10 million in both the second and third quarters of 2017 and an $08 million loan termination gain in the third quarter of 2018

Management believes that net cash interest margin when viewed in conjunction with the Companyrsquos results under US GAAP and the above reconciliation provides useful information about the effective deployment of our capital in the context of the yield on our aircraft assets the utilization of those assets by our lessees and our ability to borrow efficiently

Except for percentages all figures are $ in thousands

3 Pro-forma Q119 estimates the impact of the Avianca Brazil and Jet Airways bankruptcies on annualized net cash interest margin by adding $159 million to quarterly rental revenue in the first quarter of 2019

Average NBV

Quarterly Rental

Revenue1 Cash Interest2

Annualized Net Cash Interest

Margin12

Q115 5743035$ 181027$ 50235$ 91Q215 5967898$ 189238$ 51413$ 92Q315 6048330$ 191878$ 51428$ 93Q415 5962874$ 188491$ 51250$ 92Q116 5988076$ 186730$ 51815$ 90Q216 5920030$ 184469$ 55779$ 87Q316 6265175$ 193909$ 57589$ 87Q416 6346361$ 196714$ 58631$ 87Q117 6505355$ 200273$ 58839$ 87Q217 6512100$ 199522$ 55871$ 88Q317 5985908$ 184588$ 53457$ 88Q417 6247581$ 187794$ 53035$ 86Q118 6700223$ 193418$ 53978$ 83Q218 6721360$ 193988$ 53979$ 83Q318 6787206$ 200354$ 54521$ 86Q418 7136627$ 200027$ 60348$ 78Q119 7449957$ 195601$ 60279$ 73

Pro-forma Q119 7449957$ 211501$ 60279$ 81 33

Summary

Data

Chart in Powerpoint

Chart in Press Release

TABLE

24FIRST QUARTER 2019 EARNINGS CALLbull 05022019

As part of the Companyrsquos adoption of ASC 842 we were required to reclassify collections on direct financing and sales-type leases on our Consolidated Statement of Cash Flows for the three months ended March 31 2019 The presentation for the three months ended March 31 2018 has also been reclassified to conform to the current period presentation

Reclassification of Collections on Direct Financing and Sales-Type Leases

Three Months Ended March 31 2018

Net cash and restricted cash provided by operating activities as previously reported $142412

Collections on direct financing and sales-type leases 6493

Net cash and restricted cash provided by operating activities $148905

25FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Book Value Per Share Calculation

As of Mar 31Shares Issued and Outstanding (000)

Shareholders Equity ($000)

Book Value Per Share Change

2015 81181 $1753552 $2160 172016 78811 $1770884 $2247 402017 78718 $1856084 $2358 492018 78539 $1937454 $2467 462019 75078 $2012939 $2681 87

Q115-Q119 CAGR 56

26FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Supplemental Financial Information

Except for percentages all figures are in thousands1 For the three months ended March 31 2019 distributed and undistributed earnings to restricted shares was 058 of net income and adjusted net income The amount of restricted share

forfeitures for the period presented is immaterial to the allocation of distributed and undistributed earnings2 For all periods presented dilutive shares represented contingently issuable shares

Weighted-average shares Shares Percent2

Common shares outstanding ndash Basic 74704 9942Unvested restricted common shares 435 058Total weighted-average shares outstanding 75138 10000

Common shares outstanding ndash Basic 74704 9924Effect of dilutive shares1 570 076Common shares outstanding ndash Diluted 75274 10000

Net income allocationNet income $ 34810 10000Distributed and undistributed earnings allocated to unvested restricted shares (201) -058Earnings available to common shares $ 34609 9942

Adjusted net income allocationAdjusted net income $ 39616 10000Amounts allocated to unvested restricted shares (229) -058Amounts allocated to common shares $ 39387 9942

Three Months Ended March 31 2019

Sheet1

27FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Supplemental Financial Information

Except for percentages all figures are in thousands1 For the three months ended March 31 2018 distributed and undistributed earnings to restricted shares was 055 of net income and adjusted net income The amount of restricted share

forfeitures for the period presented is immaterial to the allocation of distributed and undistributed earnings2 For all periods presented dilutive shares represented contingently issuable shares

Weighted-average shares Shares Percent2

Common shares outstanding ndash Basic 78367 9945Unvested restricted common shares 431 055Total weighted-average shares outstanding 78798 10000

Common shares outstanding ndash Basic 78367 9971Effect of dilutive shares1 228 029Common shares outstanding ndash Diluted 78595 10000

Net income allocationNet income $ 57547 10000Distributed and undistributed earnings allocated to unvested restricted shares (315) -055Earnings available to common shares $ 57232 9945

Adjusted net income allocationAdjusted net income $ 56751 10000Amounts allocated to unvested restricted shares (311) -055Amounts allocated to common shares $ 56440 9945

Three Months Ended March 31 2018

Sheet1

28FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Limitations of EBITDA Adjusted EBITDA ANI Cash ROE and Net Cash Interest Margin

An investor or potential investor may find EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin important measures in evaluating our performance results of operations and financial position We use these non-US GAAP measures to supplement our US GAAP results in order to provide a more complete understanding of the factors and trends affecting our business

EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin have limitations as analytical tools and should not be viewed in isolation or as substitutes for US GAAP measures of earnings Material limitations in making the adjustments to ourearnings to calculate EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin and using these non-US GAAP measures as compared to US GAAP net income income from continuing operations and cash flows provided by or used in operations include

depreciation and amortization though not directly affecting our current cash position represent the wear and tear andor reduction in value of our aircraft which affects the aircraftrsquos availability for use and may be indicative of future needs for capital expenditures

the cash portion of income tax (benefit) provision generally represents charges (gains) which may significantly affect our financial results

elements of our interest rate derivative accounting may be used to evaluate the effectiveness of our hedging policy

hedge loss amortization charges related to Term Financing No 1 and Securitization No 1 and

adjustments required in calculating covenant ratios and compliance as that term is defined in the indenture governing our seniorunsecured notes

EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin are not alternatives to net income income from operations or cash flows provided by or used in operations as calculated and presented in accordance with US GAAP You should not rely on these non-US GAAP measures as a substitute for any such US GAAP financial measure We strongly urge you to review the reconciliations to US GAAP net income along with our consolidated financial statements included elsewhere in our Annual Report We also strongly urge you to not rely on any single financial measure to evaluate our business In addition because EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin are not measures of financial performance under US GAAP and are susceptible to varying calculations EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin as presented here may differ from and may not be comparable to similarly titled measures used by other companies

  • Slide Number 1
  • Slide Number 2
  • Slide Number 3
  • Slide Number 4
  • Slide Number 5
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
Three Months Ended March 31 2019 Three Months Ended March 31 2019
Weighted-average shares Shares Percent2 Weighted-average shares Shares Percent2
Common shares outstanding ndash Basic 74704 9942 Common shares outstanding ndash Basic 74704 9942
Unvested restricted common shares 435 058 Unvested restricted common shares 435 058
Total weighted-average shares outstanding 75138 10000 Total weighted-average shares outstanding 75138 10000
Common shares outstanding ndash Basic 74704 9924 Common shares outstanding ndash Basic 74704 9924
Effect of dilutive shares1 570 076 Effect of dilutive shares1 570 076
Common shares outstanding ndash Diluted 75274 10000 Common shares outstanding ndash Diluted 75274 10000
Net income allocation Net income allocation
Net income $ 34810 10000 Net income $ 34810 10000
Distributed and undistributed earnings allocated to unvested restricted shares (201) -058 Distributed and undistributed earnings allocated to unvested restricted shares (201) -058
Earnings available to common shares $ 34609 9942 Earnings available to common shares $ 34609 9942
Adjusted net income allocation Adjusted net income allocation
Adjusted net income $ 39616 10000 Adjusted net income $ 39616 10000
Amounts allocated to unvested restricted shares (229) -058 Amounts allocated to unvested restricted shares (229) -058
Amounts allocated to common shares $ 39387 9942 Amounts allocated to common shares $ 39387 9942
Three Months Ended March 31 2018 Three Months Ended March 31 2018
Weighted-average shares Shares Percent2 Weighted-average shares Shares Percent2
Common shares outstanding ndash Basic 78367 9945 Common shares outstanding ndash Basic 78367 9945
Unvested restricted common shares 431 055 Unvested restricted common shares 431 055
Total weighted-average shares outstanding 78798 10000 Total weighted-average shares outstanding 78798 10000
Common shares outstanding ndash Basic 78367 9971 Common shares outstanding ndash Basic 78367 9971
Effect of dilutive shares1 228 029 Effect of dilutive shares1 228 029
Common shares outstanding ndash Diluted 78595 10000 Common shares outstanding ndash Diluted 78595 10000
Net income allocation Net income allocation
Net income $ 57547 10000 Net income $ 57547 10000
Distributed and undistributed earnings allocated to unvested restricted shares (315) -055 Distributed and undistributed earnings allocated to unvested restricted shares (315) -055
Earnings available to common shares $ 57232 9945 Earnings available to common shares $ 57232 9945
Adjusted net income allocation Adjusted net income allocation
Adjusted net income $ 56751 10000 Adjusted net income $ 56751 10000
Amounts allocated to unvested restricted shares (311) -055 Amounts allocated to unvested restricted shares (311) -055
Amounts allocated to common shares $ 56440 9945 Amounts allocated to common shares $ 56440 9945
Three Months Ended March 31 2019 Three Months Ended March 31 2019
Weighted-average shares Shares Percent2 Weighted-average shares Shares Percent2
Common shares outstanding ndash Basic 74704 9942 Common shares outstanding ndash Basic 74704 9942
Unvested restricted common shares 435 058 Unvested restricted common shares 435 058
Total weighted-average shares outstanding 75138 10000 Total weighted-average shares outstanding 75138 10000
Common shares outstanding ndash Basic 74704 9924 Common shares outstanding ndash Basic 74704 9924
Effect of dilutive shares1 570 076 Effect of dilutive shares1 570 076
Common shares outstanding ndash Diluted 75274 10000 Common shares outstanding ndash Diluted 75274 10000
Net income allocation Net income allocation
Net income $ 34810 10000 Net income $ 34810 10000
Distributed and undistributed earnings allocated to unvested restricted shares (201) -058 Distributed and undistributed earnings allocated to unvested restricted shares (201) -058
Earnings available to common shares $ 34609 9942 Earnings available to common shares $ 34609 9942
Adjusted net income allocation Adjusted net income allocation
Adjusted net income $ 39616 10000 Adjusted net income $ 39616 10000
Amounts allocated to unvested restricted shares (229) -058 Amounts allocated to unvested restricted shares (229) -058
Amounts allocated to common shares $ 39387 9942 Amounts allocated to common shares $ 39387 9942
Three Months Ended March 31 2018 Three Months Ended March 31 2018
Weighted-average shares Shares Percent2 Weighted-average shares Shares Percent2
Common shares outstanding ndash Basic 78367 9945 Common shares outstanding ndash Basic 78367 9945
Unvested restricted common shares 431 055 Unvested restricted common shares 431 055
Total weighted-average shares outstanding 78798 10000 Total weighted-average shares outstanding 78798 10000
Common shares outstanding ndash Basic 78367 9971 Common shares outstanding ndash Basic 78367 9971
Effect of dilutive shares1 228 029 Effect of dilutive shares1 228 029
Common shares outstanding ndash Diluted 78595 10000 Common shares outstanding ndash Diluted 78595 10000
Net income allocation Net income allocation
Net income $ 57547 10000 Net income $ 57547 10000
Distributed and undistributed earnings allocated to unvested restricted shares (315) -055 Distributed and undistributed earnings allocated to unvested restricted shares (315) -055
Earnings available to common shares $ 57232 9945 Earnings available to common shares $ 57232 9945
Adjusted net income allocation Adjusted net income allocation
Adjusted net income $ 56751 10000 Adjusted net income $ 56751 10000
Amounts allocated to unvested restricted shares (311) -055 Amounts allocated to unvested restricted shares (311) -055
Amounts allocated to common shares $ 56440 9945 Amounts allocated to common shares $ 56440 9945
Q119 Q418 Q318 Q119 B (W) vs Q418
Average NBV for the 4th and 3rd Quarters of 2018 $ 7449957 $ 7136627 $ 6787206 $ 313330 Average NBV 44 higher Q418 to Q119
Operating and Finance Lease Revenues $ 189676 $ 192711 $ 190836 $ (3034)
Finance Lease Collections $ 5925 $ 7316 $ 9518 $ (1391)
Annualized Portfolio Yield 105 112 118 -07 Annualized yield 71bps lower
Cash Interest Expense $ 60279 $ 60348 $ 54521 $ 69
Annualized Cash Interest 32 34 32 01 Annualized cash int exp 15bps lower
Annualized Cash Net Interest Margin 73 78 86 -06 Annualized cash margin 56bps lower
Average NBV Quarterly Rental Revenue(1) Cash Interest(2) Annualized Net Cash Interest Margin(1)(2) Yield Cash Interest Expense
Q112 $ 4388008 $ 152242 $ 44969 98 139 410
Q212 $ 4542477 $ 156057 $ 48798 94 137 430
Q312 $ 4697802 $ 163630 $ 41373 104 139 352
Q412 $ 4726457 $ 163820 $ 43461 102 139 368
Q113 $ 4740161 $ 162319 $ 48591 96 137 410
Q213 $ 4840396 $ 164239 $ 44915 99 136 371
Q313 $ 4863444 $ 167876 $ 47682 99 138 392
Q413 $ 5118601 $ 176168 $ 49080 99 138 384
Q114 $ 5312651 $ 181095 $ 51685 97 136 389
Q214 $ 5721521 $ 190574 $ 48172 100 133 337
Q314 $ 5483958 $ 182227 $ 44820 100 133 327
Q414 $ 5468637 $ 181977 $ 44459 101 133 325
Q115 $ 5743035 $ 181027 $ 50235 91 126 350
Q215 $ 5967898 $ 189238 $ 51413 92 127 345
Q315 $ 6048330 $ 191878 $ 51428 93 127 340
Q415 $ 5962874 $ 188491 $ 51250 92 126 344
Q116 $ 5988076 $ 186730 $ 51815 90 125 346
Q216 $ 5920030 $ 184469 $ 55779 87 125 377
Q316 $ 6265175 $ 193909 $ 57589 87 124 368
Q416 $ 6346361 $ 196714 $ 58631 87 124 370
Q117 $ 6505355 $ 200273 $ 58839 87 123 362
Q217 $ 6512100 $ 199522 $ 55871 88 123 343
Q317 $ 5985908 $ 184588 $ 53457 88 123 357
Q417 $ 6247581 $ 187794 $ 53035 86 120 340
Q118 $ 6700223 $ 193418 $ 53978 83 115 322
Q218 $ 6721360 $ 193988 $ 53979 83 115 321
Q318 $ 6787206 $ 200354 $ 54521 86 118 321
Q418 $ 7136627 $ 200027 $ 60348 78 112 338
Q119 $ 7449957 $ 195601 $ 60279 73 105 324
Pro-forma Q119 $ 7449957 $ 211501 $ 60279 81 114 324
Average NBV Quarterly Rental Revenue1 Cash Interest2 Annualized Net Cash Interest Margin12 Yield Cash Interest Expense
Q113 $ 4740161 $ 162319 $ 48591 96 137 410
Q213 $ 4840396 $ 164239 $ 44915 99 136 371
Q313 $ 4863444 $ 167876 $ 47682 99 138 392
Q413 $ 5118601 $ 176168 $ 49080 99 138 384
Q114 $ 5312651 $ 181095 $ 51685 97 136 389
Q214 $ 5721521 $ 190574 $ 48172 100 133 337
Q314 $ 5483958 $ 182227 $ 44820 100 133 327
Q414 $ 5468637 $ 181977 $ 44459 101 133 325
Q115 $ 5743035 $ 181027 $ 50235 91 126 350
Q215 $ 5967898 $ 189238 $ 51413 92 127 345
Q315 $ 6048330 $ 191878 $ 51428 93 127 340
Q415 $ 5962874 $ 188491 $ 51250 92 126 344
Q116 $ 5988076 $ 186730 $ 51815 90 125 346
Q216 $ 5920030 $ 184469 $ 55779 87 125 377
Q316 $ 6265175 $ 193909 $ 57589 87 124 368
Q416 $ 6346361 $ 196714 $ 58631 87 124 370
Q117 $ 6505355 $ 200273 $ 58839 87 123 362
Q217 $ 6512100 $ 199522 $ 55871 88 123 343
Q317 $ 5985908 $ 184588 $ 53457 88 123 357
Q417 $ 6247581 $ 187794 $ 53035 86 120 340
Q118 $ 6700223 $ 193418 $ 53978 83 115 322
Q218 $ 6721360 $ 193988 $ 53979 83 115 321
Q318 $ 6787206 $ 200354 $ 54521 86 118 321
Q418 $ 7136627 $ 200027 $ 60348 78 112 338
Q119 $ 7449957 $ 195601 $ 60279 73 105 324
Pro-forma Q119 $ 7449957 $ 211501 $ 60279 81 114 324
NBV FE Fin Lease NBV Flight Equip + Fin Lease Lease Rentals Interest Inc Fin lease Collections on Fin Leases Total Lease Rent Collections Quarterly Lease rent Collections Cash Interest Loan and Contract Termination Fees included in Cash Interest Adj Cash Int NIM $ NIM Yield Cash Int
Month End Month End Month End Mo Avg Qtrly Avg MTD MTD QTD QTD QTD
DEC10 4065780 - 0 4065780
JAN11 3981690 - 0 3981690 4023735 - 0 47091 - 0 - 0 47091 - 0 - 0 - 0
FEB11 4051167 - 0 4051167 4016428 - 0 47264 - 0 - 0 47264 - 0 - 0 - 0
MAR11 4120309 - 0 4120309 4085738 4041967 46761 - 0 - 0 46761 141116 $ 41278 41278 99838 988
APR11 4125377 - 0 4125377 4122843 - 0 47211 - 0 - 0 47211 - 0 - 0 - 0
MAY11 4194987 - 0 4194987 4160182 - 0 47897 - 0 - 0 47897 - 0 - 0 - 0
JUN11 4099641 - 0 4099641 4147314 4143446 48248 - 0 - 0 48248 143356 $ 43217 $ 3196 40021 103335 998
JUL11 4271013 - 0 4271013 4185327 - 0 47994 - 0 - 0 47994 - 0 - 0 - 0
AUG11 4248242 - 0 4248242 4259628 - 0 49193 - 0 - 0 49193 - 0 - 0 - 0
SEP11 4196918 - 0 4196918 4222580 4222512 48704 - 0 - 0 48704 145890 $ 42066 42066 103824 984
OCT11 4430527 - 0 4430527 4313723 - 0 49054 - 0 - 0 49054 - 0 - 0 - 0
NOV11 4401782 - 0 4401782 4416155 - 0 50498 - 0 - 0 50498 - 0 - 0 - 0
DEC11 4387986 - 0 4387986 4394884 4374921 50297 - 0 - 0 50297 149848 $ 43041 43041 106807 977
JAN12 4391666 - 0 4391666 4389826 - 0 51034 - 0 - 0 51034 - 0 - 0 - 0
FEB12 4385360 - 0 4385360 4388513 - 0 49705 - 0 - 0 49705 - 0 - 0 - 0
MAR12 4386010 - 0 4386010 4385685 4388008 51503 - 0 - 0 51503 152242 $ 44969 44969 107273 978
APR12 4484956 - 0 4484956 4435483 - 0 50824 - 0 - 0 50824 - 0 - 0 - 0
MAY12 4570712 31500 4602212 4543584 - 0 51020 - 0 - 0 51020 - 0 - 0 - 0
JUN12 4604493 90024 4694518 4648365 4542477 51781 956 1476 54213 156057 $ 48798 48798 107259 944
JUL12 4572121 90739 4662860 4678689 - 0 52892 963 - 0 53855 - 0 - 0 - 0
AUG12 4665966 90332 4756298 4709579 - 0 52945 948 - 0 53893 - 0 - 0 - 0
SEP12 4532445 121533 4653978 4705138 4697802 53709 1608 565 55881 163630 $ 41373 41373 122257 1041
OCT12 4574055 120934 4694990 4674484 - 0 52277 1311 - 0 53588 - 0 - 0 - 0
NOV12 4645741 120345 4766086 4730538 - 0 52596 1321 - 0 53917 - 0 - 0 - 0
DEC12 4662661 119951 4782612 4774349 4726457 53217 1286 1811 56314 163820 $ 43461 43461 120359 1019
JAN13 4639414 119339 4758753 4770682 - 0 52957 1298 - 0 54255 - 0 - 0 - 0
FEB13 4614480 118707 4733187 4745970 - 0 51936 1277 - 0 53213 - 0 - 0 - 0
MAR13 4544773 129700 4674474 4703830 4740161 51697 1309 1845 54850 162319 $ 48591 48591 113728 960
APR13 4621392 128981 4750373 4712423 - 0 51363 1384 - 0 52747 - 0 - 0 - 0
MAY13 4915814 128237 5044051 4897212 - 0 53613 1359 - 0 54972 - 0 - 0 - 0
JUN13 4651553 127504 4779057 4911554 4840396 52942 1370 2207 56520 164239 $ 47869 $ 2954 44915 119324 986
JUL13 4668642 149932 4818574 4798816 - 0 52469 1372 - 0 53840 - 0 - 0 - 0
AUG13 4690154 149017 4839171 4828873 - 0 53339 1423 - 0 54763 - 0 - 0 - 0
SEP13 4938113 148005 5086118 4962645 4863444 55340 1327 2606 59273 167876 $ 47682 47682 120194 989
OCT13 4913184 147017 5060200 5073159 - 0 56643 1350 - 0 57993 - 0 - 0 - 0
NOV13 5011676 146076 5157752 5108976 - 0 56264 1361 - 0 57625 - 0 - 0 - 0
DEC13 5044410 145173 5189583 5173668 5118601 56367 1333 2850 60550 176168 $ 49080 49080 127088 993
JAN14 5015452 144256 5159708 5174646 - 0 58142 1337 - 0 59478 - 0 - 0 - 0
FEB14 5129035 143356 5272392 5216050 - 0 57572 1354 - 0 58926 - 0 - 0 - 0
MAR14 5679723 142400 5822123 5547257 5312651 58621 1297 2773 62691 181095 $ 51685 51685 129410 974
APR14 5605462 155551 5761013 5791568 - 0 61276 1329 - 0 62604 - 0 - 0 - 0
MAY14 5512769 154435 5667205 5714109 - 0 60998 1338 - 0 62336 - 0 - 0 - 0
JUN14 5577966 72600 5650566 5658886 5721521 60957 1231 3446 65634 190574 $ 48172 48172 142402 996
JUL14 5418990 71971 5490961 5570764 - 0 60509 484 - 0 60993 - 0 - 0 - 0
AUG14 5412453 71345 5483799 5487380 - 0 59617 488 - 0 60105 - 0 - 0 - 0
SEP14 5232940 70723 5303663 5393731 5483958 58760 491 1877 61129 182227 $ 44820 44820 137407 1002
OCT14 5340303 88360 5428663 5366163 - 0 59394 480 - 0 59874 - 0 - 0 - 0
NOV14 5374566 107667 5482233 5455448 - 0 59717 542 - 0 60259 - 0 - 0 - 0
DEC14 5579718 106651 5686369 5584301 5468637 59091 537 2216 61844 181977 $ 44459 44459 137518 1006 1331 325 134 99
JAN15 5642590 105896 5748487 5717428 - 0 59898 539 - 0 60437 - 0 - 0 - 0
FEB15 5623616 105155 5728770 5738628 - 0 58688 552 - 0 59240 - 0 - 0 - 0
MAR15 5712950 104377 5817327 5773049 5743035 58560 516 2274 61350 181027 $ 50235 50235 130792 911 1261 350
APR15 5778092 119625 5897717 5857522 - 0 60016 589 - 0 60605 - 0 - 0 - 0
MAY15 5940205 118903 6059108 5978412 - 0 61684 628 - 0 62311 - 0 - 0 - 0
JUN15 5953555 122855 6076411 6067759 5967898 63140 660 2521 66322 189238 $ 51413 51413 137825 924 1268 345
JUL15 5942037 122200 6064238 6070324 - 0 63838 625 - 0 64463 - 0 - 0 - 0
AUG15 5917660 121542 6039202 6051720 - 0 62322 623 - 0 62945 - 0 - 0 - 0
SEP15 5885807 120882 6006689 6022946 6048330 61877 620 1973 64470 191878 $ 51428 51428 140450 929 1269 340
OCT15 5829040 103074 5932114 5969402 - 0 61959 611 - 0 62570 - 0 - 0 - 0
NOV15 5801167 117861 5919028 5925571 - 0 60485 623 - 0 61108 - 0 - 0 - 0
DEC15 5867062 201211 6068273 5993651 5962874 60949 1072 2791 64812 188491 $ 51250 51250 137241 921 1264 344 127 92
JAN16 5836479 198445 6034923 6051598 - 0 60245 1141 - 0 61387 - 0 - 0 - 0
FEB16 5796230 213436 6009666 6022295 - 0 60098 1161 - 0 61259 - 0 - 0 - 0
MAR16 5558666 212336 5771002 5890334 5988076 59227 1195 3663 64085 186730 $ 53324 1509 51815 134915 901 1247 346
APR16 5654825 211354 5866179 5818591 - 0 58383 1160 - 0 59544 - 0 - 0 - 0
MAY16 5659238 265253 5924490 5895335 - 0 58787 1432 - 0 60218 - 0 - 0 - 0
JUN16 5875935 291903 6167838 6046164 5920030 58955 1582 4170 64707 184469 55779 55779 128690 870 1246 377
JUL16 5980982 290048 6271030 6219434 - 0 60301 1805 - 0 62107 - 0 - 0 - 0
AUG16 6017274 288131 6305405 6288218 - 0 60757 1744 - 0 62501 - 0 - 0 - 0
SEP16 6004489 265854 6270343 6287874 6265175 60917 1805 6580 69301 193909 57589 57589 136320 870 1238 368
OCT16 6025556 264389 6289945 6280144 - 0 61757 1413 63170 - 0 - 0 - 0
NOV16 6097520 262667 6360187 6325066 - 0 62824 1357 64181 - 0 - 0 - 0
DEC16 6246707 260853 6507560 6433874 6346361 62969 1394 5000 69363 196714 62082 3451 58631 138083 870 1240 370 124 88
JAN17 6219012 259264 6478276 6492918 - 0 63296 1359 64655 - 0
FEB17 6227957 257474 6485431 6481853 - 0 63575 1288 64863 - 0
MAR17 6297190 299969 6597159 6541295 6505355 63715 1426 5614 70755 200273 58839 58839 141434 870 1231 362
APR17 6269189 348327 6617516 6607338 64119 1814 65933
MAY17 6156371 377186 6533557 6575537 63186 2079 65265
JUN17 5818821 354474 6173295 6353426 6512100 61794 1985 4545 68324 199522 56859 988 55871 143651 882 1226 343
JUL17 5615695 352411 5968106 6070700 59464 1954 61418
AUG17 5523543 390140 5913683 5940895 56603 1917 58520
SEP17 5490164 488408 5978572 5946128 5985908 55621 2541 6488 64650 184588 54527 1070 53457 131131 876 1233 357
OCT17 5493432 549212 6042644 6010608 55282 2833 58115
NOV17 5789587 554117 6343704 6193174 56823 3248 60071
DEC17 6188469 545750 6734219 6538962 6247581 57826 3272 8511 69609 187794 53035 53035 134759 863 1202 340 122 87
JAN18 6163924 543311 6707235 6720727 59570 3212 62782
FEB18 6173766 514024 6687790 6697513 59177 3007 62184
MAR18 6143695 533373 6677067 6682429 6700223 58736 3222 6493 68451 193418 53978 53978 139440 832 1155 322
APR18 6120068 531077 6651145 6664106 58481 2936 61417
MAY18 6257826 528503 6786329 6718737 59975 3015 62990
JUN18 6249406 526738 6776144 6781236 6721360 60030 2918 6634 69582 193988 53979 53979 140009 833 1154 321 12 MONTH CALCULATION
JUL18 6261431 523491 6784922 6780533 60815 2990 63804 Yield NIM
AUG18 6250137 519066 6769203 6777062 60517 2927 63444 2014 134 99
SEP18 6321623 517221 6838844 6804023 6787206 60712 2876 9518 73106 200354 53683 -838 54521 145833 859 1181 321 2015 127 92
OCT18 6602809 515251 7118060 6978452 62875 2742 65617 2016 124 88
NOV18 6657588 512429 7170017 7144039 61402 2610 64012 2017 122 87
DEC18 6935585 469180 7404765 7287391 7136627 60405 2677 7316 70398 200027 60348 60348 139679 783 1121 338 115 83 2018 115 83
JAN19 6900489 509725 7410214 7407489 59462 2959 62421 LTM Q119 112 80
FEB19 6907294 507653 7414948 7412581 62458 2701 65158
MAR19 7138689 505964 7644653 7529800 7449957 59314 2783 5925 68022 195601 60279 60279 135322 727 1050 324 112 80
wCollections on Finance Leases 2019 2018 2017
Finance Lease Collections Finance Lease Collections Finance Lease Collections
Yield Cash Interest Net Spread Avg NBV Lease Rent Interest YTD 5925 YTD 29961 YTD 32184
Q117 1231 362 870 6505355 200273 $ 58839 Q119 5925 Q118 6493 Q117 5614
Q119 1050 324 727 7449957 195601 60279 Q219 Q218 6634 Q217 11571
-181 -038 -143 Change 145 -23 24 Q319 Q318 9518 Q317 6488
Q419 Q418 7316 Q417 8511
Yield Cash Interest Net Spread Avg NBV Lease Rent Interest Finance Lease Revenue Finance Lease Revenue Finance Lease Revenue
Q118 1155 322 832 6700223 193418 53978 Q119 8442 Q418 8029 Q417 9353
Q119 1050 324 727 7449957 195601 60279 January 2959 October 2742 October 2833
-104 001 -106 Change 112 11 117 February 2701 November 2610 November 3248
March 2783 December 2677 December 3272
Yield Cash Interest Net Spread Avg NBV Lease Rent Interest
Q418 1121 338 783 7136627 200027 60348 Collections on Finance Leases excludes $70 million of unusual payments received from KLM in Q217
Q119 1050 324 727 7449957 195601 60279
-071 -015 -056 Change 44 -22 -01
112 w$17mm added to Q119
11 Actual 1050 324 727
Revised 1141 324 818
091 091
wCollections on Finance Leases
Yield Cash Interest Net Spread
Q314 13292 3269 1002
Q316 12380 3677 870
-0911 0408 -132
Yield Cash Interest Net Spread
Q315 12690 3401 929
Q316 12380 3677 870
-0310 0276 -059
Yield Cash Interest Net Spread
Q216 12464 3769 870
Q316 12380 3677 870
-0084 -0092 001
Old Format
Yield Cash Interest Net Spread
Q314 13221 3312 991
Q316 12173 3852 832
-1047 -0540 -159
Yield Cash Interest Net Spread
Q315 12691 3471 922
Q316 12173 3852 832
-0518 -0381 -090
Yield Cash Interest Net Spread
Q216 12409 3930 8479
Q316 12173 3852 8321
Change -0236 0078 -0159
For the Three Months Ended March 31
2019 2018
Net Income $ 34810 $ 57547
(Gain) loss on mark-to-market of interest rate derivative contracts(1) 2080 (3174)
Non-cash share-based payment expense(2) 2726 2378
Adjusted Net Income $ 39616 $ 56751
For the Three Months Ended March 31
2019 2018
Net Income $ 34810 $ 57547
Loss on mark-to-market of interest rate derivative contracts(1) 2080 (3174)
Non-cash share-based payment expense(2) 2726 2378
Adjusted Net Income $ 39616 $ 56751
Three Mos Ended Dec 31
2019 2018
(Dollars in thousands)
Net income $ 34810 $ 57547
Depreciation 84735 75002
Amortization of lease premiums discounts and incentives 5711 3128
Interest net 63463 57108
Income tax provision 3098 (844)
EBITDA 191817 191941
Adjustments
Equity share of joint venture impairment 2724 -
Non-cash share based payment expense 2726 2378
(Gain) loss on MTM of interest rate derivative contracts 2080 (3174)
Adjusted EBITDA $ 199347 $ 191145
Three Mos Ended Dec 31
2019 2018
(Dollars in thousands)
Net income $ 34810 $ 57547
Depreciation 84735 75002
Amortization of lease premiums discounts and incentives 5711 3128
Interest net 63463 57108
Income tax provision 3098 (844)
EBITDA 191817 191941
Adjustments
Equity share of joint venture impairment 2724 - 0
Non-cash share based payment expense 2726 2378
(Gain) loss on MTM of interest rate derivative contracts 2080 (3174)
Adjusted EBITDA $ 199347 $ 191145

5FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Q119 Revenue Summary

Lease rental revenues of $1897 million up $28million vs Q118

Increase was driven by net fleet growth

Q119 rental revenues were $159 million lower due to the bankruptcies of Avianca Brazil and Jet Airways

Gain on sale up $62 millionSale of four aircraft resulted in a gain on sale of $83 million

$37 million of gain on sale due to reclassification of two other aircraft as direct financing and sales-type leases

Maintenance revenue of $164 million up $44 million due to transitions

Revenue Summary

$ in millions Q119 Q118

Lease Rental and Direct Financing and Sales-Type Lease Revenues $1897 $1869

Amortization of Lease Premiums Discounts and Incentives (57) (31)

Maintenance Revenue 164 120

Total Lease Revenue 2004 1958

Gain on Sale of Flight Equipment 120 58

Other Revenue 16 11

Total Revenues $2139 $2027

6FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Q119 Earnings Summary

Net income decreased $227million versus Q118 adjusted net income down $171 million

Primarily driven by $159 million of unrecognized rental revenue from Avianca Brazil and Jet Airways

Adjusted EBITDA was $1993million up $82 million from Q118

Reflects higher revenues of $112 million partially offset by higher maintenance and other costs of $64 million

Earnings Summary

$ in millions except per share amounts Q119 Q118

Net Income $348 $575

per diluted common share $046 $073

Adjusted Net Income1 $396 $568

per diluted common share $052 $072

EBITDA1 $1918 $1919

Adjusted EBITDA1 $1993 $1911

1 Refer to the selected financial Information accompanying this presentation for a reconciliation of GAAP to Non-GAAP numbers

7FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Q119 Acquisitions amp Sales

Acquired fourteen aircraft in Q119 for $445 million

Committed to acquire twelve additional aircraft for $385 million in 2019

Sold four aircraft for gain on sale of $83 million recognized $37 million of gains from the reclassification of two aircraft as direct financing and sales-type leases

Our 2019 placement task is nearly complete confirmed leases signed for ten Avianca Brazil A320s and seven Jet 737 family aircraft

Q119 Acquisitions amp Sales

Acquisitions1 Completed Sales

Investments Sales Proceeds $445 million $56 million

Total Number of Aircraft 14 4

1 Closed deals only through March 31 2019

8FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Robust Portfolio Management with an Active Asset Strategy

274 aircraft owned and managed at Q119

Since 2015

Acquired 227 aircraft

Sold 116 aircraft

Generated $201 million gains from sales and net proceeds of $25 billion

46

6068

39

14

31 3037

14

4

0

10

20

30

40

50

60

70

80

2015 2016 2017 2018 Q119

Num

ber o

f airc

raft

Purchases Sales

9FIRST QUARTER 2019 EARNINGS CALLbull 05022019

73 of the fleet now consists of more liquidnarrow-body aircraft

versus 36 five years ago

36

49

15

NBs WBs Freighters Classics

73

23

4

NBs WBs Freighters

9336

23

NBs WBs Freighters Classics

229

26

4

NBs WBs Freighters

Fleet EvolutionSignificant Fleet Risk Reduction

Since Q115 the number of wide-body freighter

and classic aircraft declined from a total of 59 aircraft to 30 aircraft

Q115 Aircraft Count Q119 Aircraft Count

Q115 Fleet Type (By NBV) Q119 Fleet Type (By NBV)

Aircastle continues to add in-demand narrow-bodies to the Companyrsquos fleet

10FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Portfolio Metrics

Since Q115 expanded owned fleet at a compound annual growth rate of 71

$ in billions Q115 Q119 Q119 vs Q115

Flight Equipment Held for Lease1 $58 $76 + $18

Wtd Avg Fleet Age (years)2 83 94 + 11

Wtd Avg Lease Term (years)2 56 45 - 11

Managed JV Aircraft1 $05 $07 + $02

1 Calculated using NBV at period end2 Weighted average by NBV

NBV as used throughout this presentation includes the net book value of flight equipment held for lease and the net investment in direct financing and sales-type leases

11FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Diversified Customer Base with Broad Geographic Distribution

86 airline customers in 47countries across the globe

Most top customers are large flag carriers and leading LCCs

Balanced distribution of the aircraft fleet by geographic region

Asia represents 37 of portfolio NBV followed by Europe at 29

South America represents 10 North America 9

Top Ten Lessees of NBV1 per

customer Customer Country Aircraft

gt6 IndiGo India 17

3-6

Lion Air Indonesia 11

LATAM Chile 3

TAP Portugal Portugal 8

Iberia Spain 15

SAA SouthAfrica 4

easyJet UnitedKingdom 20

Jeju Air SouthKorea 9

lt3Aerolineas Argentinas Argentina 5

Interjet Mexico 11

1 As of March 31 2019

Top Ten Countries

Country AC of NBV1

India 28 122

Indonesia 15 66

Russia 11 60

United Kingdom 30 52

South Korea 14 51

Portugal 8 45

Chile 3 44

USA 15 42

Mexico 16 42

Spain 16 41

12FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Leasing Activity and Portfolio Performance

Note Aircraft on-lease days as a percent of total days in period weighted by NBV

937 utilization during Q119 was below trend primarily due to the bankruptcies of Avianca Brazil and Jet Airways

We expect these aircraft to return to service in mid Q219 with utilization to begin normalizing

Three aircraft remaining to be sold or placed in 2019 represents 15 of NBV

Utilization Performance

Utilization has averaged 988 since Q115

80

82

84

86

88

90

92

94

96

98

100

Q1

15

Q1

16

Q1

17

Q1

18

Q1

19

13FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Rental Yields and Net Cash Interest Margins

Approximately 85bps of the reduction reflects unrecognized rental revenue from AviancaBrazil and Jet Airways

105 lease rental yield 12 and 73 net cash interest margin1

114 pro-forma3 lease rental yield12 81 and net cash interest margin13

We expect the net cash interest margin to rebound in the second half of 2019 as the Avianca Brazil and Jet Airways aircraft return to revenue service

0

2

4

6

8

10

12

14

Q1

15

Q2

15

Q3

15

Q4

15

Q1

16

Q2

16

Q3

16

Q4

16

Q1

17

Q2

17

Q3

17

Q4

17

Q1

18

Q2

18

Q3

18

Q4

18

Q1

19

Pro-

form

aQ

119

Lease Rental Yield Net Cash Interest Margin

105

73

1 Refer to the selected financial Information accompanying this presentation for a reconciliation of GAAP to Non-GAAP numbers

2 Lease Rental Yield = Operating and finance lease rental revenue plus direct financing and sales-typelease collections average monthly NBV including direct financing and sales-type leases for the period calculated on a quarterly basis annualized

3 Adds back $159 million of lease rental revenue in Q119 to show the impact of the bankruptcies of Avianca Brazil and Jet Airways on Lease Rental Yield and Net Cash Interest Margin

1 2 13

Pro-forma 23

114

Pro-forma 13

81

14FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Cash ROE Performance

Q119 118

AVG 140

Trailing twelve month Cash ROE1 was 118 versus 160 a year ago

GAAP ROE of 114

Cash flow from operations of $5100 million was $248million lower for LTM ended Q119 versus comparable period a year earlier

Q119 Pro-forma Cash ROE including unrecognized rental revenue of $159 million associated with Avianca Brazil and Jet Airways bankruptcies approximates 1262

1 Refer to the selected financial Information accompanying this presentation for a reconciliation of GAAP to Non-GAAP numbers

2 Adds $159 million of lease rental revenue to the last twelve months Cash Flow From Operations to show the estimated impact of the bankruptcies of AviancaBrazil and Jet Airways on Cash ROE

0

2

4

6

8

10

12

14

16

18

Q1

15

Q2

15

Q3

15

Q4

15

Q1

16

Q2

16

Q3

16

Q4

16

Q1

17

Q2

17

Q3

17

Q4

17

Q1

18

Q2

18

Q3

18

Q4

18

Q1

19

Cash

Ret

urn

on A

vera

ge S

hare

hold

errsquos

Equ

ity

15FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Q119 Capital Structure

Strong liquidity profile and low financial leverage minimal forward commitments

Net debt to equity of 24x84 of total debt was unsecured at quarter-end

Average remaining life of debt is 32 years$500 million note matures in 2019

$705 million in available revolver capacity $375 million drawn from a total of $108 billionUnrestricted cash of $93 million

$63 billion of unencumbered flight equipment ndash 228 aircraft

16FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Selected Financial Guidance Elements for Q219

Guidance Item Q219

Lease rental revenue1 $186 - $190

Direct financing and sales-type lease revenue $8 - $9

Amortization of lease premiums discounts and incentives $(5) - $(6)

Maintenance revenue2 $16 - $20

Gain on sale $4 - $8

Depreciation $87 - $90

Interest net $66 - $69

SGampA3 $18 - $19

Full year effective tax rate 7 - 9

1 Reflects the return to service of Avianca Brazil and Jet Airways aircraft commencing in Q219 2 Includes $101M of net maintenance revenue (maintenance reserves net of a transactional impairment) in connection with the early return of seven aircraft from Jet Airways3 Includes $32M of non-cash share based payment expense

17FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Appendix

18FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Q119 Capital Structure amp Liquidity Summary

Note The debt totals in the above table do not include debt issuance costs or discounts which are reflected in the net debt totals that are displayed on the consolidated balance sheet

Aircastles Capital Structure

As of Mar 31 2019 As of Dec 31 2018 As of Dec 31 2017($ in millions)Unrestricted cash and cash equivalents $ 93 $ 153 $ 212 Debt O S Rate1 O S Rate1 O S Rate1

ECA Term Financings 179 358 189 358 227 359Bank Financings 603 464 620 473 635 368

Total Secured Debt 783 440 809 446 863 365

Senior Notes due 2018 - - - - 400 463Senior Notes due 2019 500 625 500 625 500 625Senior Notes due 2020 300 763 300 763 300 763Senior Notes due 2021 500 513 500 513 500 513Senior Notes due 2022 500 550 500 550 500 550Senior 500 Notes due 2023 500 500 500 500 500 500Senior 440 Notes due 2023 650 440 650 440 - -Senior Notes due 2024 500 413 500 413 500 413Bank Revolvers 375 399 425 401 175 368Other Unsecured Bank Financings 335 424 120 434 120 359

Total Unsecured Debt 4160 506 3995 510 3495 521

Total Debt and Weighted Avg Rate 4943 496 4804 499 4358 490Shareholdersrsquo equity 2013 2009 1908 Total capitalization $ 6956 $ 6812 $ 6265

Net debt to equity 24 x 23 x 22 xUnsecured debt to total debt 84 83 80

19FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Supplemental Financial Information

Three Months Ended

March 31in thousands except per share amounts 2019 2018

Revenues $ 213927 $ 202680

EBITDA $ 191817 $ 191941

Adjusted EBITDA $ 199347 $ 191145

Net income $ 34810 $ 57547Net income allocable to common shares $ 34609 $ 57232

Per common share - Basic $ 046 $ 073Per common share - Diluted $ 046 $ 073

Adjusted net income $ 39616 $ 56751Adjusted net income allocable to common shares $ 39387 $ 56440

Per common share - Basic $ 053 $ 072Per common share - Diluted $ 052 $ 072

Basic common shares outstanding 74704 78367Diluted common shares outstanding 75274 78595

20FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Reconciliation of GAAP to Non-GAAP Measures ndash EBITDA and Adjusted EBITDA

We define EBITDA as income (loss) from continuing operations before income taxes interest expense and depreciation and amortization We use EBITDA to assess our consolidated financial and operating performance and we believe this non-US GAAP measure is helpful in identifying trends in our performance

This measure provides an assessment of controllable expenses and affords management the ability to make decisions which are expected to facilitate meeting current financial goals as well as achieving optimal financial performance It provides an indicator for management to determine if adjustments to current spending decisions are needed

EBITDA provides us with a measure of operating performance because it assists us in comparing our operating performance on a consistent basis as it removes the impact of our capital structure (primarily interest charges on our outstanding debt) and asset base (primarily depreciation and amortization) from our operating results

Accordingly this metric measures our financial performance based on operational factors that management can impact in the short-term namely the cost structure or expenses of the organization EBITDA is one of the metrics used by senior management and the board of directors to review the consolidated financial performance of our business

We define Adjusted EBITDA as EBITDA (as defined above) further adjusted to give effect to adjustments required in calculating covenant ratios and compliance as that term is defined in the indenture governing our senior unsecured notes Adjusted EBITDA is a material component of these covenants

2019 2018

Net income $ 34810 $ 57547

Depreciation 84735 75002

Amortization of lease premiums discounts and incentives 5711 3128

Interest net 63463 57108

Income tax provision 3098 (844)

EBITDA 191817 191941

Adjustments

Equity share of joint venture impairment 2724 -

Non-cash share based payment expense 2726 2378

(Gain) loss on MTM of interest rate derivative contracts 2080 (3174)

Adjusted EBITDA $ 199347 $ 191145

Three Mos Ended Dec 31

(Dollars in thousands)

Sheet1

Sheet2

Sheet3

21FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Reconciliation of GAAP to Non-GAAP Measures ndash Adjusted Net Income

Management believes that ANI when viewed in conjunction with the Companyrsquos results under US GAAP and the above reconciliation provides useful information about operating and period-over-period performance and provides additional information that is useful for evaluating the underlying operating performance of our business without regard to periodic reporting elements related to interest rate derivative accounting changes related to refinancing activity and non-cash share based payment expense

1 Included in Other income (expense)2 Included in Selling general and administrative expenses

Net Income Loss on mark-to-market of interest rate derivative contracts(1)

Non-cash share-based payment expense(2)

Adjusted Net Income2726 2378

39616$ 56751$

For the Three Months Ended March 31

2019 2018

34810$ 57547$ 2080 (3174)

Sheet1

22FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Reconciliation of GAAP to non-GAAP Measures - Cash Earnings and Cash ROE

Note LTM Average Shareholdersrsquo Equity is the average of the most recent five quarters period end Shareholdersrsquo Equity Management believes that the cash return on equity metric (ldquoCash ROErdquo) when viewed in conjunction with the Companyrsquos results under US GAAP and the above reconciliation provide useful information about operating and period-over-period performance and provide additional information that is useful for evaluating the underlying operating performance of our business without regard to periodic reporting impacts related to non-cash revenue and expense items and interest rate derivative accounting while recognizing the depreciating nature of our assets To reflect the expected sale of the assets in one of our joint ventures and to simplify the presentation of Cash ROE we are no longer adjusting for joint venture distributions in excess ofless than joint venture earnings recorded under the equity method of investment accounting

Pro-forma Q119 estimates the impact of the Avianca Brazil and Jet Airways bankruptcies on Cash ROE by adding $159 million to Cash Flow From Operations in the first quarter of 2019

Dollars in thousands

LTM Ended CFFO +Gain on Sale

of Eqt - Deprec =Cash

Earnings

Average Shareholders

Equity

Trailing 12 Month Cash

ROEQ115 $498536 $28289 $300284 $226541 $1682857 135Q116 $525569 $64597 $320584 $269582 $1769981 152Q117 $499768 $27052 $307743 $219077 $1804573 121Q118 $534771 $60176 $294492 $300455 $1881633 160Q119 $510008 $43000 $320583 $232425 $1976235 118

Pro-forma Q119 $525899 $43000 $320583 $248316 $1976235 126

23FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Net Cash Interest Margin Calculation

1 We define net cash interest margin as lease rentals from operating leases interest income and cash collections from direct financing and sales-type leases minus interest on borrowings net settlements on interest rate derivatives and other liabilities adjusted for loan termination payments divided by the average net book of flight equipment (which includes net investment in direct financing and sales-type leases) for the period calculated on a quarterly and annualized basis The second quarter of 2017 excludes a non-recurring $70 million accelerated collection received from a lessee in connection with a finance lease

2 Excludes loan termination payments of $15 million and $35 million in the first quarter and fourth quarter of 2016 respectively and loan termination payments of $10 million in both the second and third quarters of 2017 and an $08 million loan termination gain in the third quarter of 2018

Management believes that net cash interest margin when viewed in conjunction with the Companyrsquos results under US GAAP and the above reconciliation provides useful information about the effective deployment of our capital in the context of the yield on our aircraft assets the utilization of those assets by our lessees and our ability to borrow efficiently

Except for percentages all figures are $ in thousands

3 Pro-forma Q119 estimates the impact of the Avianca Brazil and Jet Airways bankruptcies on annualized net cash interest margin by adding $159 million to quarterly rental revenue in the first quarter of 2019

Average NBV

Quarterly Rental

Revenue1 Cash Interest2

Annualized Net Cash Interest

Margin12

Q115 5743035$ 181027$ 50235$ 91Q215 5967898$ 189238$ 51413$ 92Q315 6048330$ 191878$ 51428$ 93Q415 5962874$ 188491$ 51250$ 92Q116 5988076$ 186730$ 51815$ 90Q216 5920030$ 184469$ 55779$ 87Q316 6265175$ 193909$ 57589$ 87Q416 6346361$ 196714$ 58631$ 87Q117 6505355$ 200273$ 58839$ 87Q217 6512100$ 199522$ 55871$ 88Q317 5985908$ 184588$ 53457$ 88Q417 6247581$ 187794$ 53035$ 86Q118 6700223$ 193418$ 53978$ 83Q218 6721360$ 193988$ 53979$ 83Q318 6787206$ 200354$ 54521$ 86Q418 7136627$ 200027$ 60348$ 78Q119 7449957$ 195601$ 60279$ 73

Pro-forma Q119 7449957$ 211501$ 60279$ 81 33

Summary

Data

Chart in Powerpoint

Chart in Press Release

TABLE

24FIRST QUARTER 2019 EARNINGS CALLbull 05022019

As part of the Companyrsquos adoption of ASC 842 we were required to reclassify collections on direct financing and sales-type leases on our Consolidated Statement of Cash Flows for the three months ended March 31 2019 The presentation for the three months ended March 31 2018 has also been reclassified to conform to the current period presentation

Reclassification of Collections on Direct Financing and Sales-Type Leases

Three Months Ended March 31 2018

Net cash and restricted cash provided by operating activities as previously reported $142412

Collections on direct financing and sales-type leases 6493

Net cash and restricted cash provided by operating activities $148905

25FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Book Value Per Share Calculation

As of Mar 31Shares Issued and Outstanding (000)

Shareholders Equity ($000)

Book Value Per Share Change

2015 81181 $1753552 $2160 172016 78811 $1770884 $2247 402017 78718 $1856084 $2358 492018 78539 $1937454 $2467 462019 75078 $2012939 $2681 87

Q115-Q119 CAGR 56

26FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Supplemental Financial Information

Except for percentages all figures are in thousands1 For the three months ended March 31 2019 distributed and undistributed earnings to restricted shares was 058 of net income and adjusted net income The amount of restricted share

forfeitures for the period presented is immaterial to the allocation of distributed and undistributed earnings2 For all periods presented dilutive shares represented contingently issuable shares

Weighted-average shares Shares Percent2

Common shares outstanding ndash Basic 74704 9942Unvested restricted common shares 435 058Total weighted-average shares outstanding 75138 10000

Common shares outstanding ndash Basic 74704 9924Effect of dilutive shares1 570 076Common shares outstanding ndash Diluted 75274 10000

Net income allocationNet income $ 34810 10000Distributed and undistributed earnings allocated to unvested restricted shares (201) -058Earnings available to common shares $ 34609 9942

Adjusted net income allocationAdjusted net income $ 39616 10000Amounts allocated to unvested restricted shares (229) -058Amounts allocated to common shares $ 39387 9942

Three Months Ended March 31 2019

Sheet1

27FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Supplemental Financial Information

Except for percentages all figures are in thousands1 For the three months ended March 31 2018 distributed and undistributed earnings to restricted shares was 055 of net income and adjusted net income The amount of restricted share

forfeitures for the period presented is immaterial to the allocation of distributed and undistributed earnings2 For all periods presented dilutive shares represented contingently issuable shares

Weighted-average shares Shares Percent2

Common shares outstanding ndash Basic 78367 9945Unvested restricted common shares 431 055Total weighted-average shares outstanding 78798 10000

Common shares outstanding ndash Basic 78367 9971Effect of dilutive shares1 228 029Common shares outstanding ndash Diluted 78595 10000

Net income allocationNet income $ 57547 10000Distributed and undistributed earnings allocated to unvested restricted shares (315) -055Earnings available to common shares $ 57232 9945

Adjusted net income allocationAdjusted net income $ 56751 10000Amounts allocated to unvested restricted shares (311) -055Amounts allocated to common shares $ 56440 9945

Three Months Ended March 31 2018

Sheet1

28FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Limitations of EBITDA Adjusted EBITDA ANI Cash ROE and Net Cash Interest Margin

An investor or potential investor may find EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin important measures in evaluating our performance results of operations and financial position We use these non-US GAAP measures to supplement our US GAAP results in order to provide a more complete understanding of the factors and trends affecting our business

EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin have limitations as analytical tools and should not be viewed in isolation or as substitutes for US GAAP measures of earnings Material limitations in making the adjustments to ourearnings to calculate EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin and using these non-US GAAP measures as compared to US GAAP net income income from continuing operations and cash flows provided by or used in operations include

depreciation and amortization though not directly affecting our current cash position represent the wear and tear andor reduction in value of our aircraft which affects the aircraftrsquos availability for use and may be indicative of future needs for capital expenditures

the cash portion of income tax (benefit) provision generally represents charges (gains) which may significantly affect our financial results

elements of our interest rate derivative accounting may be used to evaluate the effectiveness of our hedging policy

hedge loss amortization charges related to Term Financing No 1 and Securitization No 1 and

adjustments required in calculating covenant ratios and compliance as that term is defined in the indenture governing our seniorunsecured notes

EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin are not alternatives to net income income from operations or cash flows provided by or used in operations as calculated and presented in accordance with US GAAP You should not rely on these non-US GAAP measures as a substitute for any such US GAAP financial measure We strongly urge you to review the reconciliations to US GAAP net income along with our consolidated financial statements included elsewhere in our Annual Report We also strongly urge you to not rely on any single financial measure to evaluate our business In addition because EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin are not measures of financial performance under US GAAP and are susceptible to varying calculations EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin as presented here may differ from and may not be comparable to similarly titled measures used by other companies

  • Slide Number 1
  • Slide Number 2
  • Slide Number 3
  • Slide Number 4
  • Slide Number 5
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
Three Months Ended March 31 2019 Three Months Ended March 31 2019
Weighted-average shares Shares Percent2 Weighted-average shares Shares Percent2
Common shares outstanding ndash Basic 74704 9942 Common shares outstanding ndash Basic 74704 9942
Unvested restricted common shares 435 058 Unvested restricted common shares 435 058
Total weighted-average shares outstanding 75138 10000 Total weighted-average shares outstanding 75138 10000
Common shares outstanding ndash Basic 74704 9924 Common shares outstanding ndash Basic 74704 9924
Effect of dilutive shares1 570 076 Effect of dilutive shares1 570 076
Common shares outstanding ndash Diluted 75274 10000 Common shares outstanding ndash Diluted 75274 10000
Net income allocation Net income allocation
Net income $ 34810 10000 Net income $ 34810 10000
Distributed and undistributed earnings allocated to unvested restricted shares (201) -058 Distributed and undistributed earnings allocated to unvested restricted shares (201) -058
Earnings available to common shares $ 34609 9942 Earnings available to common shares $ 34609 9942
Adjusted net income allocation Adjusted net income allocation
Adjusted net income $ 39616 10000 Adjusted net income $ 39616 10000
Amounts allocated to unvested restricted shares (229) -058 Amounts allocated to unvested restricted shares (229) -058
Amounts allocated to common shares $ 39387 9942 Amounts allocated to common shares $ 39387 9942
Three Months Ended March 31 2018 Three Months Ended March 31 2018
Weighted-average shares Shares Percent2 Weighted-average shares Shares Percent2
Common shares outstanding ndash Basic 78367 9945 Common shares outstanding ndash Basic 78367 9945
Unvested restricted common shares 431 055 Unvested restricted common shares 431 055
Total weighted-average shares outstanding 78798 10000 Total weighted-average shares outstanding 78798 10000
Common shares outstanding ndash Basic 78367 9971 Common shares outstanding ndash Basic 78367 9971
Effect of dilutive shares1 228 029 Effect of dilutive shares1 228 029
Common shares outstanding ndash Diluted 78595 10000 Common shares outstanding ndash Diluted 78595 10000
Net income allocation Net income allocation
Net income $ 57547 10000 Net income $ 57547 10000
Distributed and undistributed earnings allocated to unvested restricted shares (315) -055 Distributed and undistributed earnings allocated to unvested restricted shares (315) -055
Earnings available to common shares $ 57232 9945 Earnings available to common shares $ 57232 9945
Adjusted net income allocation Adjusted net income allocation
Adjusted net income $ 56751 10000 Adjusted net income $ 56751 10000
Amounts allocated to unvested restricted shares (311) -055 Amounts allocated to unvested restricted shares (311) -055
Amounts allocated to common shares $ 56440 9945 Amounts allocated to common shares $ 56440 9945
Three Months Ended March 31 2019 Three Months Ended March 31 2019
Weighted-average shares Shares Percent2 Weighted-average shares Shares Percent2
Common shares outstanding ndash Basic 74704 9942 Common shares outstanding ndash Basic 74704 9942
Unvested restricted common shares 435 058 Unvested restricted common shares 435 058
Total weighted-average shares outstanding 75138 10000 Total weighted-average shares outstanding 75138 10000
Common shares outstanding ndash Basic 74704 9924 Common shares outstanding ndash Basic 74704 9924
Effect of dilutive shares1 570 076 Effect of dilutive shares1 570 076
Common shares outstanding ndash Diluted 75274 10000 Common shares outstanding ndash Diluted 75274 10000
Net income allocation Net income allocation
Net income $ 34810 10000 Net income $ 34810 10000
Distributed and undistributed earnings allocated to unvested restricted shares (201) -058 Distributed and undistributed earnings allocated to unvested restricted shares (201) -058
Earnings available to common shares $ 34609 9942 Earnings available to common shares $ 34609 9942
Adjusted net income allocation Adjusted net income allocation
Adjusted net income $ 39616 10000 Adjusted net income $ 39616 10000
Amounts allocated to unvested restricted shares (229) -058 Amounts allocated to unvested restricted shares (229) -058
Amounts allocated to common shares $ 39387 9942 Amounts allocated to common shares $ 39387 9942
Three Months Ended March 31 2018 Three Months Ended March 31 2018
Weighted-average shares Shares Percent2 Weighted-average shares Shares Percent2
Common shares outstanding ndash Basic 78367 9945 Common shares outstanding ndash Basic 78367 9945
Unvested restricted common shares 431 055 Unvested restricted common shares 431 055
Total weighted-average shares outstanding 78798 10000 Total weighted-average shares outstanding 78798 10000
Common shares outstanding ndash Basic 78367 9971 Common shares outstanding ndash Basic 78367 9971
Effect of dilutive shares1 228 029 Effect of dilutive shares1 228 029
Common shares outstanding ndash Diluted 78595 10000 Common shares outstanding ndash Diluted 78595 10000
Net income allocation Net income allocation
Net income $ 57547 10000 Net income $ 57547 10000
Distributed and undistributed earnings allocated to unvested restricted shares (315) -055 Distributed and undistributed earnings allocated to unvested restricted shares (315) -055
Earnings available to common shares $ 57232 9945 Earnings available to common shares $ 57232 9945
Adjusted net income allocation Adjusted net income allocation
Adjusted net income $ 56751 10000 Adjusted net income $ 56751 10000
Amounts allocated to unvested restricted shares (311) -055 Amounts allocated to unvested restricted shares (311) -055
Amounts allocated to common shares $ 56440 9945 Amounts allocated to common shares $ 56440 9945
Q119 Q418 Q318 Q119 B (W) vs Q418
Average NBV for the 4th and 3rd Quarters of 2018 $ 7449957 $ 7136627 $ 6787206 $ 313330 Average NBV 44 higher Q418 to Q119
Operating and Finance Lease Revenues $ 189676 $ 192711 $ 190836 $ (3034)
Finance Lease Collections $ 5925 $ 7316 $ 9518 $ (1391)
Annualized Portfolio Yield 105 112 118 -07 Annualized yield 71bps lower
Cash Interest Expense $ 60279 $ 60348 $ 54521 $ 69
Annualized Cash Interest 32 34 32 01 Annualized cash int exp 15bps lower
Annualized Cash Net Interest Margin 73 78 86 -06 Annualized cash margin 56bps lower
Average NBV Quarterly Rental Revenue(1) Cash Interest(2) Annualized Net Cash Interest Margin(1)(2) Yield Cash Interest Expense
Q112 $ 4388008 $ 152242 $ 44969 98 139 410
Q212 $ 4542477 $ 156057 $ 48798 94 137 430
Q312 $ 4697802 $ 163630 $ 41373 104 139 352
Q412 $ 4726457 $ 163820 $ 43461 102 139 368
Q113 $ 4740161 $ 162319 $ 48591 96 137 410
Q213 $ 4840396 $ 164239 $ 44915 99 136 371
Q313 $ 4863444 $ 167876 $ 47682 99 138 392
Q413 $ 5118601 $ 176168 $ 49080 99 138 384
Q114 $ 5312651 $ 181095 $ 51685 97 136 389
Q214 $ 5721521 $ 190574 $ 48172 100 133 337
Q314 $ 5483958 $ 182227 $ 44820 100 133 327
Q414 $ 5468637 $ 181977 $ 44459 101 133 325
Q115 $ 5743035 $ 181027 $ 50235 91 126 350
Q215 $ 5967898 $ 189238 $ 51413 92 127 345
Q315 $ 6048330 $ 191878 $ 51428 93 127 340
Q415 $ 5962874 $ 188491 $ 51250 92 126 344
Q116 $ 5988076 $ 186730 $ 51815 90 125 346
Q216 $ 5920030 $ 184469 $ 55779 87 125 377
Q316 $ 6265175 $ 193909 $ 57589 87 124 368
Q416 $ 6346361 $ 196714 $ 58631 87 124 370
Q117 $ 6505355 $ 200273 $ 58839 87 123 362
Q217 $ 6512100 $ 199522 $ 55871 88 123 343
Q317 $ 5985908 $ 184588 $ 53457 88 123 357
Q417 $ 6247581 $ 187794 $ 53035 86 120 340
Q118 $ 6700223 $ 193418 $ 53978 83 115 322
Q218 $ 6721360 $ 193988 $ 53979 83 115 321
Q318 $ 6787206 $ 200354 $ 54521 86 118 321
Q418 $ 7136627 $ 200027 $ 60348 78 112 338
Q119 $ 7449957 $ 195601 $ 60279 73 105 324
Pro-forma Q119 $ 7449957 $ 211501 $ 60279 81 114 324
Average NBV Quarterly Rental Revenue1 Cash Interest2 Annualized Net Cash Interest Margin12 Yield Cash Interest Expense
Q113 $ 4740161 $ 162319 $ 48591 96 137 410
Q213 $ 4840396 $ 164239 $ 44915 99 136 371
Q313 $ 4863444 $ 167876 $ 47682 99 138 392
Q413 $ 5118601 $ 176168 $ 49080 99 138 384
Q114 $ 5312651 $ 181095 $ 51685 97 136 389
Q214 $ 5721521 $ 190574 $ 48172 100 133 337
Q314 $ 5483958 $ 182227 $ 44820 100 133 327
Q414 $ 5468637 $ 181977 $ 44459 101 133 325
Q115 $ 5743035 $ 181027 $ 50235 91 126 350
Q215 $ 5967898 $ 189238 $ 51413 92 127 345
Q315 $ 6048330 $ 191878 $ 51428 93 127 340
Q415 $ 5962874 $ 188491 $ 51250 92 126 344
Q116 $ 5988076 $ 186730 $ 51815 90 125 346
Q216 $ 5920030 $ 184469 $ 55779 87 125 377
Q316 $ 6265175 $ 193909 $ 57589 87 124 368
Q416 $ 6346361 $ 196714 $ 58631 87 124 370
Q117 $ 6505355 $ 200273 $ 58839 87 123 362
Q217 $ 6512100 $ 199522 $ 55871 88 123 343
Q317 $ 5985908 $ 184588 $ 53457 88 123 357
Q417 $ 6247581 $ 187794 $ 53035 86 120 340
Q118 $ 6700223 $ 193418 $ 53978 83 115 322
Q218 $ 6721360 $ 193988 $ 53979 83 115 321
Q318 $ 6787206 $ 200354 $ 54521 86 118 321
Q418 $ 7136627 $ 200027 $ 60348 78 112 338
Q119 $ 7449957 $ 195601 $ 60279 73 105 324
Pro-forma Q119 $ 7449957 $ 211501 $ 60279 81 114 324
NBV FE Fin Lease NBV Flight Equip + Fin Lease Lease Rentals Interest Inc Fin lease Collections on Fin Leases Total Lease Rent Collections Quarterly Lease rent Collections Cash Interest Loan and Contract Termination Fees included in Cash Interest Adj Cash Int NIM $ NIM Yield Cash Int
Month End Month End Month End Mo Avg Qtrly Avg MTD MTD QTD QTD QTD
DEC10 4065780 - 0 4065780
JAN11 3981690 - 0 3981690 4023735 - 0 47091 - 0 - 0 47091 - 0 - 0 - 0
FEB11 4051167 - 0 4051167 4016428 - 0 47264 - 0 - 0 47264 - 0 - 0 - 0
MAR11 4120309 - 0 4120309 4085738 4041967 46761 - 0 - 0 46761 141116 $ 41278 41278 99838 988
APR11 4125377 - 0 4125377 4122843 - 0 47211 - 0 - 0 47211 - 0 - 0 - 0
MAY11 4194987 - 0 4194987 4160182 - 0 47897 - 0 - 0 47897 - 0 - 0 - 0
JUN11 4099641 - 0 4099641 4147314 4143446 48248 - 0 - 0 48248 143356 $ 43217 $ 3196 40021 103335 998
JUL11 4271013 - 0 4271013 4185327 - 0 47994 - 0 - 0 47994 - 0 - 0 - 0
AUG11 4248242 - 0 4248242 4259628 - 0 49193 - 0 - 0 49193 - 0 - 0 - 0
SEP11 4196918 - 0 4196918 4222580 4222512 48704 - 0 - 0 48704 145890 $ 42066 42066 103824 984
OCT11 4430527 - 0 4430527 4313723 - 0 49054 - 0 - 0 49054 - 0 - 0 - 0
NOV11 4401782 - 0 4401782 4416155 - 0 50498 - 0 - 0 50498 - 0 - 0 - 0
DEC11 4387986 - 0 4387986 4394884 4374921 50297 - 0 - 0 50297 149848 $ 43041 43041 106807 977
JAN12 4391666 - 0 4391666 4389826 - 0 51034 - 0 - 0 51034 - 0 - 0 - 0
FEB12 4385360 - 0 4385360 4388513 - 0 49705 - 0 - 0 49705 - 0 - 0 - 0
MAR12 4386010 - 0 4386010 4385685 4388008 51503 - 0 - 0 51503 152242 $ 44969 44969 107273 978
APR12 4484956 - 0 4484956 4435483 - 0 50824 - 0 - 0 50824 - 0 - 0 - 0
MAY12 4570712 31500 4602212 4543584 - 0 51020 - 0 - 0 51020 - 0 - 0 - 0
JUN12 4604493 90024 4694518 4648365 4542477 51781 956 1476 54213 156057 $ 48798 48798 107259 944
JUL12 4572121 90739 4662860 4678689 - 0 52892 963 - 0 53855 - 0 - 0 - 0
AUG12 4665966 90332 4756298 4709579 - 0 52945 948 - 0 53893 - 0 - 0 - 0
SEP12 4532445 121533 4653978 4705138 4697802 53709 1608 565 55881 163630 $ 41373 41373 122257 1041
OCT12 4574055 120934 4694990 4674484 - 0 52277 1311 - 0 53588 - 0 - 0 - 0
NOV12 4645741 120345 4766086 4730538 - 0 52596 1321 - 0 53917 - 0 - 0 - 0
DEC12 4662661 119951 4782612 4774349 4726457 53217 1286 1811 56314 163820 $ 43461 43461 120359 1019
JAN13 4639414 119339 4758753 4770682 - 0 52957 1298 - 0 54255 - 0 - 0 - 0
FEB13 4614480 118707 4733187 4745970 - 0 51936 1277 - 0 53213 - 0 - 0 - 0
MAR13 4544773 129700 4674474 4703830 4740161 51697 1309 1845 54850 162319 $ 48591 48591 113728 960
APR13 4621392 128981 4750373 4712423 - 0 51363 1384 - 0 52747 - 0 - 0 - 0
MAY13 4915814 128237 5044051 4897212 - 0 53613 1359 - 0 54972 - 0 - 0 - 0
JUN13 4651553 127504 4779057 4911554 4840396 52942 1370 2207 56520 164239 $ 47869 $ 2954 44915 119324 986
JUL13 4668642 149932 4818574 4798816 - 0 52469 1372 - 0 53840 - 0 - 0 - 0
AUG13 4690154 149017 4839171 4828873 - 0 53339 1423 - 0 54763 - 0 - 0 - 0
SEP13 4938113 148005 5086118 4962645 4863444 55340 1327 2606 59273 167876 $ 47682 47682 120194 989
OCT13 4913184 147017 5060200 5073159 - 0 56643 1350 - 0 57993 - 0 - 0 - 0
NOV13 5011676 146076 5157752 5108976 - 0 56264 1361 - 0 57625 - 0 - 0 - 0
DEC13 5044410 145173 5189583 5173668 5118601 56367 1333 2850 60550 176168 $ 49080 49080 127088 993
JAN14 5015452 144256 5159708 5174646 - 0 58142 1337 - 0 59478 - 0 - 0 - 0
FEB14 5129035 143356 5272392 5216050 - 0 57572 1354 - 0 58926 - 0 - 0 - 0
MAR14 5679723 142400 5822123 5547257 5312651 58621 1297 2773 62691 181095 $ 51685 51685 129410 974
APR14 5605462 155551 5761013 5791568 - 0 61276 1329 - 0 62604 - 0 - 0 - 0
MAY14 5512769 154435 5667205 5714109 - 0 60998 1338 - 0 62336 - 0 - 0 - 0
JUN14 5577966 72600 5650566 5658886 5721521 60957 1231 3446 65634 190574 $ 48172 48172 142402 996
JUL14 5418990 71971 5490961 5570764 - 0 60509 484 - 0 60993 - 0 - 0 - 0
AUG14 5412453 71345 5483799 5487380 - 0 59617 488 - 0 60105 - 0 - 0 - 0
SEP14 5232940 70723 5303663 5393731 5483958 58760 491 1877 61129 182227 $ 44820 44820 137407 1002
OCT14 5340303 88360 5428663 5366163 - 0 59394 480 - 0 59874 - 0 - 0 - 0
NOV14 5374566 107667 5482233 5455448 - 0 59717 542 - 0 60259 - 0 - 0 - 0
DEC14 5579718 106651 5686369 5584301 5468637 59091 537 2216 61844 181977 $ 44459 44459 137518 1006 1331 325 134 99
JAN15 5642590 105896 5748487 5717428 - 0 59898 539 - 0 60437 - 0 - 0 - 0
FEB15 5623616 105155 5728770 5738628 - 0 58688 552 - 0 59240 - 0 - 0 - 0
MAR15 5712950 104377 5817327 5773049 5743035 58560 516 2274 61350 181027 $ 50235 50235 130792 911 1261 350
APR15 5778092 119625 5897717 5857522 - 0 60016 589 - 0 60605 - 0 - 0 - 0
MAY15 5940205 118903 6059108 5978412 - 0 61684 628 - 0 62311 - 0 - 0 - 0
JUN15 5953555 122855 6076411 6067759 5967898 63140 660 2521 66322 189238 $ 51413 51413 137825 924 1268 345
JUL15 5942037 122200 6064238 6070324 - 0 63838 625 - 0 64463 - 0 - 0 - 0
AUG15 5917660 121542 6039202 6051720 - 0 62322 623 - 0 62945 - 0 - 0 - 0
SEP15 5885807 120882 6006689 6022946 6048330 61877 620 1973 64470 191878 $ 51428 51428 140450 929 1269 340
OCT15 5829040 103074 5932114 5969402 - 0 61959 611 - 0 62570 - 0 - 0 - 0
NOV15 5801167 117861 5919028 5925571 - 0 60485 623 - 0 61108 - 0 - 0 - 0
DEC15 5867062 201211 6068273 5993651 5962874 60949 1072 2791 64812 188491 $ 51250 51250 137241 921 1264 344 127 92
JAN16 5836479 198445 6034923 6051598 - 0 60245 1141 - 0 61387 - 0 - 0 - 0
FEB16 5796230 213436 6009666 6022295 - 0 60098 1161 - 0 61259 - 0 - 0 - 0
MAR16 5558666 212336 5771002 5890334 5988076 59227 1195 3663 64085 186730 $ 53324 1509 51815 134915 901 1247 346
APR16 5654825 211354 5866179 5818591 - 0 58383 1160 - 0 59544 - 0 - 0 - 0
MAY16 5659238 265253 5924490 5895335 - 0 58787 1432 - 0 60218 - 0 - 0 - 0
JUN16 5875935 291903 6167838 6046164 5920030 58955 1582 4170 64707 184469 55779 55779 128690 870 1246 377
JUL16 5980982 290048 6271030 6219434 - 0 60301 1805 - 0 62107 - 0 - 0 - 0
AUG16 6017274 288131 6305405 6288218 - 0 60757 1744 - 0 62501 - 0 - 0 - 0
SEP16 6004489 265854 6270343 6287874 6265175 60917 1805 6580 69301 193909 57589 57589 136320 870 1238 368
OCT16 6025556 264389 6289945 6280144 - 0 61757 1413 63170 - 0 - 0 - 0
NOV16 6097520 262667 6360187 6325066 - 0 62824 1357 64181 - 0 - 0 - 0
DEC16 6246707 260853 6507560 6433874 6346361 62969 1394 5000 69363 196714 62082 3451 58631 138083 870 1240 370 124 88
JAN17 6219012 259264 6478276 6492918 - 0 63296 1359 64655 - 0
FEB17 6227957 257474 6485431 6481853 - 0 63575 1288 64863 - 0
MAR17 6297190 299969 6597159 6541295 6505355 63715 1426 5614 70755 200273 58839 58839 141434 870 1231 362
APR17 6269189 348327 6617516 6607338 64119 1814 65933
MAY17 6156371 377186 6533557 6575537 63186 2079 65265
JUN17 5818821 354474 6173295 6353426 6512100 61794 1985 4545 68324 199522 56859 988 55871 143651 882 1226 343
JUL17 5615695 352411 5968106 6070700 59464 1954 61418
AUG17 5523543 390140 5913683 5940895 56603 1917 58520
SEP17 5490164 488408 5978572 5946128 5985908 55621 2541 6488 64650 184588 54527 1070 53457 131131 876 1233 357
OCT17 5493432 549212 6042644 6010608 55282 2833 58115
NOV17 5789587 554117 6343704 6193174 56823 3248 60071
DEC17 6188469 545750 6734219 6538962 6247581 57826 3272 8511 69609 187794 53035 53035 134759 863 1202 340 122 87
JAN18 6163924 543311 6707235 6720727 59570 3212 62782
FEB18 6173766 514024 6687790 6697513 59177 3007 62184
MAR18 6143695 533373 6677067 6682429 6700223 58736 3222 6493 68451 193418 53978 53978 139440 832 1155 322
APR18 6120068 531077 6651145 6664106 58481 2936 61417
MAY18 6257826 528503 6786329 6718737 59975 3015 62990
JUN18 6249406 526738 6776144 6781236 6721360 60030 2918 6634 69582 193988 53979 53979 140009 833 1154 321 12 MONTH CALCULATION
JUL18 6261431 523491 6784922 6780533 60815 2990 63804 Yield NIM
AUG18 6250137 519066 6769203 6777062 60517 2927 63444 2014 134 99
SEP18 6321623 517221 6838844 6804023 6787206 60712 2876 9518 73106 200354 53683 -838 54521 145833 859 1181 321 2015 127 92
OCT18 6602809 515251 7118060 6978452 62875 2742 65617 2016 124 88
NOV18 6657588 512429 7170017 7144039 61402 2610 64012 2017 122 87
DEC18 6935585 469180 7404765 7287391 7136627 60405 2677 7316 70398 200027 60348 60348 139679 783 1121 338 115 83 2018 115 83
JAN19 6900489 509725 7410214 7407489 59462 2959 62421 LTM Q119 112 80
FEB19 6907294 507653 7414948 7412581 62458 2701 65158
MAR19 7138689 505964 7644653 7529800 7449957 59314 2783 5925 68022 195601 60279 60279 135322 727 1050 324 112 80
wCollections on Finance Leases 2019 2018 2017
Finance Lease Collections Finance Lease Collections Finance Lease Collections
Yield Cash Interest Net Spread Avg NBV Lease Rent Interest YTD 5925 YTD 29961 YTD 32184
Q117 1231 362 870 6505355 200273 $ 58839 Q119 5925 Q118 6493 Q117 5614
Q119 1050 324 727 7449957 195601 60279 Q219 Q218 6634 Q217 11571
-181 -038 -143 Change 145 -23 24 Q319 Q318 9518 Q317 6488
Q419 Q418 7316 Q417 8511
Yield Cash Interest Net Spread Avg NBV Lease Rent Interest Finance Lease Revenue Finance Lease Revenue Finance Lease Revenue
Q118 1155 322 832 6700223 193418 53978 Q119 8442 Q418 8029 Q417 9353
Q119 1050 324 727 7449957 195601 60279 January 2959 October 2742 October 2833
-104 001 -106 Change 112 11 117 February 2701 November 2610 November 3248
March 2783 December 2677 December 3272
Yield Cash Interest Net Spread Avg NBV Lease Rent Interest
Q418 1121 338 783 7136627 200027 60348 Collections on Finance Leases excludes $70 million of unusual payments received from KLM in Q217
Q119 1050 324 727 7449957 195601 60279
-071 -015 -056 Change 44 -22 -01
112 w$17mm added to Q119
11 Actual 1050 324 727
Revised 1141 324 818
091 091
wCollections on Finance Leases
Yield Cash Interest Net Spread
Q314 13292 3269 1002
Q316 12380 3677 870
-0911 0408 -132
Yield Cash Interest Net Spread
Q315 12690 3401 929
Q316 12380 3677 870
-0310 0276 -059
Yield Cash Interest Net Spread
Q216 12464 3769 870
Q316 12380 3677 870
-0084 -0092 001
Old Format
Yield Cash Interest Net Spread
Q314 13221 3312 991
Q316 12173 3852 832
-1047 -0540 -159
Yield Cash Interest Net Spread
Q315 12691 3471 922
Q316 12173 3852 832
-0518 -0381 -090
Yield Cash Interest Net Spread
Q216 12409 3930 8479
Q316 12173 3852 8321
Change -0236 0078 -0159
For the Three Months Ended March 31
2019 2018
Net Income $ 34810 $ 57547
(Gain) loss on mark-to-market of interest rate derivative contracts(1) 2080 (3174)
Non-cash share-based payment expense(2) 2726 2378
Adjusted Net Income $ 39616 $ 56751
For the Three Months Ended March 31
2019 2018
Net Income $ 34810 $ 57547
Loss on mark-to-market of interest rate derivative contracts(1) 2080 (3174)
Non-cash share-based payment expense(2) 2726 2378
Adjusted Net Income $ 39616 $ 56751
Three Mos Ended Dec 31
2019 2018
(Dollars in thousands)
Net income $ 34810 $ 57547
Depreciation 84735 75002
Amortization of lease premiums discounts and incentives 5711 3128
Interest net 63463 57108
Income tax provision 3098 (844)
EBITDA 191817 191941
Adjustments
Equity share of joint venture impairment 2724 -
Non-cash share based payment expense 2726 2378
(Gain) loss on MTM of interest rate derivative contracts 2080 (3174)
Adjusted EBITDA $ 199347 $ 191145
Three Mos Ended Dec 31
2019 2018
(Dollars in thousands)
Net income $ 34810 $ 57547
Depreciation 84735 75002
Amortization of lease premiums discounts and incentives 5711 3128
Interest net 63463 57108
Income tax provision 3098 (844)
EBITDA 191817 191941
Adjustments
Equity share of joint venture impairment 2724 - 0
Non-cash share based payment expense 2726 2378
(Gain) loss on MTM of interest rate derivative contracts 2080 (3174)
Adjusted EBITDA $ 199347 $ 191145

6FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Q119 Earnings Summary

Net income decreased $227million versus Q118 adjusted net income down $171 million

Primarily driven by $159 million of unrecognized rental revenue from Avianca Brazil and Jet Airways

Adjusted EBITDA was $1993million up $82 million from Q118

Reflects higher revenues of $112 million partially offset by higher maintenance and other costs of $64 million

Earnings Summary

$ in millions except per share amounts Q119 Q118

Net Income $348 $575

per diluted common share $046 $073

Adjusted Net Income1 $396 $568

per diluted common share $052 $072

EBITDA1 $1918 $1919

Adjusted EBITDA1 $1993 $1911

1 Refer to the selected financial Information accompanying this presentation for a reconciliation of GAAP to Non-GAAP numbers

7FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Q119 Acquisitions amp Sales

Acquired fourteen aircraft in Q119 for $445 million

Committed to acquire twelve additional aircraft for $385 million in 2019

Sold four aircraft for gain on sale of $83 million recognized $37 million of gains from the reclassification of two aircraft as direct financing and sales-type leases

Our 2019 placement task is nearly complete confirmed leases signed for ten Avianca Brazil A320s and seven Jet 737 family aircraft

Q119 Acquisitions amp Sales

Acquisitions1 Completed Sales

Investments Sales Proceeds $445 million $56 million

Total Number of Aircraft 14 4

1 Closed deals only through March 31 2019

8FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Robust Portfolio Management with an Active Asset Strategy

274 aircraft owned and managed at Q119

Since 2015

Acquired 227 aircraft

Sold 116 aircraft

Generated $201 million gains from sales and net proceeds of $25 billion

46

6068

39

14

31 3037

14

4

0

10

20

30

40

50

60

70

80

2015 2016 2017 2018 Q119

Num

ber o

f airc

raft

Purchases Sales

9FIRST QUARTER 2019 EARNINGS CALLbull 05022019

73 of the fleet now consists of more liquidnarrow-body aircraft

versus 36 five years ago

36

49

15

NBs WBs Freighters Classics

73

23

4

NBs WBs Freighters

9336

23

NBs WBs Freighters Classics

229

26

4

NBs WBs Freighters

Fleet EvolutionSignificant Fleet Risk Reduction

Since Q115 the number of wide-body freighter

and classic aircraft declined from a total of 59 aircraft to 30 aircraft

Q115 Aircraft Count Q119 Aircraft Count

Q115 Fleet Type (By NBV) Q119 Fleet Type (By NBV)

Aircastle continues to add in-demand narrow-bodies to the Companyrsquos fleet

10FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Portfolio Metrics

Since Q115 expanded owned fleet at a compound annual growth rate of 71

$ in billions Q115 Q119 Q119 vs Q115

Flight Equipment Held for Lease1 $58 $76 + $18

Wtd Avg Fleet Age (years)2 83 94 + 11

Wtd Avg Lease Term (years)2 56 45 - 11

Managed JV Aircraft1 $05 $07 + $02

1 Calculated using NBV at period end2 Weighted average by NBV

NBV as used throughout this presentation includes the net book value of flight equipment held for lease and the net investment in direct financing and sales-type leases

11FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Diversified Customer Base with Broad Geographic Distribution

86 airline customers in 47countries across the globe

Most top customers are large flag carriers and leading LCCs

Balanced distribution of the aircraft fleet by geographic region

Asia represents 37 of portfolio NBV followed by Europe at 29

South America represents 10 North America 9

Top Ten Lessees of NBV1 per

customer Customer Country Aircraft

gt6 IndiGo India 17

3-6

Lion Air Indonesia 11

LATAM Chile 3

TAP Portugal Portugal 8

Iberia Spain 15

SAA SouthAfrica 4

easyJet UnitedKingdom 20

Jeju Air SouthKorea 9

lt3Aerolineas Argentinas Argentina 5

Interjet Mexico 11

1 As of March 31 2019

Top Ten Countries

Country AC of NBV1

India 28 122

Indonesia 15 66

Russia 11 60

United Kingdom 30 52

South Korea 14 51

Portugal 8 45

Chile 3 44

USA 15 42

Mexico 16 42

Spain 16 41

12FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Leasing Activity and Portfolio Performance

Note Aircraft on-lease days as a percent of total days in period weighted by NBV

937 utilization during Q119 was below trend primarily due to the bankruptcies of Avianca Brazil and Jet Airways

We expect these aircraft to return to service in mid Q219 with utilization to begin normalizing

Three aircraft remaining to be sold or placed in 2019 represents 15 of NBV

Utilization Performance

Utilization has averaged 988 since Q115

80

82

84

86

88

90

92

94

96

98

100

Q1

15

Q1

16

Q1

17

Q1

18

Q1

19

13FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Rental Yields and Net Cash Interest Margins

Approximately 85bps of the reduction reflects unrecognized rental revenue from AviancaBrazil and Jet Airways

105 lease rental yield 12 and 73 net cash interest margin1

114 pro-forma3 lease rental yield12 81 and net cash interest margin13

We expect the net cash interest margin to rebound in the second half of 2019 as the Avianca Brazil and Jet Airways aircraft return to revenue service

0

2

4

6

8

10

12

14

Q1

15

Q2

15

Q3

15

Q4

15

Q1

16

Q2

16

Q3

16

Q4

16

Q1

17

Q2

17

Q3

17

Q4

17

Q1

18

Q2

18

Q3

18

Q4

18

Q1

19

Pro-

form

aQ

119

Lease Rental Yield Net Cash Interest Margin

105

73

1 Refer to the selected financial Information accompanying this presentation for a reconciliation of GAAP to Non-GAAP numbers

2 Lease Rental Yield = Operating and finance lease rental revenue plus direct financing and sales-typelease collections average monthly NBV including direct financing and sales-type leases for the period calculated on a quarterly basis annualized

3 Adds back $159 million of lease rental revenue in Q119 to show the impact of the bankruptcies of Avianca Brazil and Jet Airways on Lease Rental Yield and Net Cash Interest Margin

1 2 13

Pro-forma 23

114

Pro-forma 13

81

14FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Cash ROE Performance

Q119 118

AVG 140

Trailing twelve month Cash ROE1 was 118 versus 160 a year ago

GAAP ROE of 114

Cash flow from operations of $5100 million was $248million lower for LTM ended Q119 versus comparable period a year earlier

Q119 Pro-forma Cash ROE including unrecognized rental revenue of $159 million associated with Avianca Brazil and Jet Airways bankruptcies approximates 1262

1 Refer to the selected financial Information accompanying this presentation for a reconciliation of GAAP to Non-GAAP numbers

2 Adds $159 million of lease rental revenue to the last twelve months Cash Flow From Operations to show the estimated impact of the bankruptcies of AviancaBrazil and Jet Airways on Cash ROE

0

2

4

6

8

10

12

14

16

18

Q1

15

Q2

15

Q3

15

Q4

15

Q1

16

Q2

16

Q3

16

Q4

16

Q1

17

Q2

17

Q3

17

Q4

17

Q1

18

Q2

18

Q3

18

Q4

18

Q1

19

Cash

Ret

urn

on A

vera

ge S

hare

hold

errsquos

Equ

ity

15FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Q119 Capital Structure

Strong liquidity profile and low financial leverage minimal forward commitments

Net debt to equity of 24x84 of total debt was unsecured at quarter-end

Average remaining life of debt is 32 years$500 million note matures in 2019

$705 million in available revolver capacity $375 million drawn from a total of $108 billionUnrestricted cash of $93 million

$63 billion of unencumbered flight equipment ndash 228 aircraft

16FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Selected Financial Guidance Elements for Q219

Guidance Item Q219

Lease rental revenue1 $186 - $190

Direct financing and sales-type lease revenue $8 - $9

Amortization of lease premiums discounts and incentives $(5) - $(6)

Maintenance revenue2 $16 - $20

Gain on sale $4 - $8

Depreciation $87 - $90

Interest net $66 - $69

SGampA3 $18 - $19

Full year effective tax rate 7 - 9

1 Reflects the return to service of Avianca Brazil and Jet Airways aircraft commencing in Q219 2 Includes $101M of net maintenance revenue (maintenance reserves net of a transactional impairment) in connection with the early return of seven aircraft from Jet Airways3 Includes $32M of non-cash share based payment expense

17FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Appendix

18FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Q119 Capital Structure amp Liquidity Summary

Note The debt totals in the above table do not include debt issuance costs or discounts which are reflected in the net debt totals that are displayed on the consolidated balance sheet

Aircastles Capital Structure

As of Mar 31 2019 As of Dec 31 2018 As of Dec 31 2017($ in millions)Unrestricted cash and cash equivalents $ 93 $ 153 $ 212 Debt O S Rate1 O S Rate1 O S Rate1

ECA Term Financings 179 358 189 358 227 359Bank Financings 603 464 620 473 635 368

Total Secured Debt 783 440 809 446 863 365

Senior Notes due 2018 - - - - 400 463Senior Notes due 2019 500 625 500 625 500 625Senior Notes due 2020 300 763 300 763 300 763Senior Notes due 2021 500 513 500 513 500 513Senior Notes due 2022 500 550 500 550 500 550Senior 500 Notes due 2023 500 500 500 500 500 500Senior 440 Notes due 2023 650 440 650 440 - -Senior Notes due 2024 500 413 500 413 500 413Bank Revolvers 375 399 425 401 175 368Other Unsecured Bank Financings 335 424 120 434 120 359

Total Unsecured Debt 4160 506 3995 510 3495 521

Total Debt and Weighted Avg Rate 4943 496 4804 499 4358 490Shareholdersrsquo equity 2013 2009 1908 Total capitalization $ 6956 $ 6812 $ 6265

Net debt to equity 24 x 23 x 22 xUnsecured debt to total debt 84 83 80

19FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Supplemental Financial Information

Three Months Ended

March 31in thousands except per share amounts 2019 2018

Revenues $ 213927 $ 202680

EBITDA $ 191817 $ 191941

Adjusted EBITDA $ 199347 $ 191145

Net income $ 34810 $ 57547Net income allocable to common shares $ 34609 $ 57232

Per common share - Basic $ 046 $ 073Per common share - Diluted $ 046 $ 073

Adjusted net income $ 39616 $ 56751Adjusted net income allocable to common shares $ 39387 $ 56440

Per common share - Basic $ 053 $ 072Per common share - Diluted $ 052 $ 072

Basic common shares outstanding 74704 78367Diluted common shares outstanding 75274 78595

20FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Reconciliation of GAAP to Non-GAAP Measures ndash EBITDA and Adjusted EBITDA

We define EBITDA as income (loss) from continuing operations before income taxes interest expense and depreciation and amortization We use EBITDA to assess our consolidated financial and operating performance and we believe this non-US GAAP measure is helpful in identifying trends in our performance

This measure provides an assessment of controllable expenses and affords management the ability to make decisions which are expected to facilitate meeting current financial goals as well as achieving optimal financial performance It provides an indicator for management to determine if adjustments to current spending decisions are needed

EBITDA provides us with a measure of operating performance because it assists us in comparing our operating performance on a consistent basis as it removes the impact of our capital structure (primarily interest charges on our outstanding debt) and asset base (primarily depreciation and amortization) from our operating results

Accordingly this metric measures our financial performance based on operational factors that management can impact in the short-term namely the cost structure or expenses of the organization EBITDA is one of the metrics used by senior management and the board of directors to review the consolidated financial performance of our business

We define Adjusted EBITDA as EBITDA (as defined above) further adjusted to give effect to adjustments required in calculating covenant ratios and compliance as that term is defined in the indenture governing our senior unsecured notes Adjusted EBITDA is a material component of these covenants

2019 2018

Net income $ 34810 $ 57547

Depreciation 84735 75002

Amortization of lease premiums discounts and incentives 5711 3128

Interest net 63463 57108

Income tax provision 3098 (844)

EBITDA 191817 191941

Adjustments

Equity share of joint venture impairment 2724 -

Non-cash share based payment expense 2726 2378

(Gain) loss on MTM of interest rate derivative contracts 2080 (3174)

Adjusted EBITDA $ 199347 $ 191145

Three Mos Ended Dec 31

(Dollars in thousands)

Sheet1

Sheet2

Sheet3

21FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Reconciliation of GAAP to Non-GAAP Measures ndash Adjusted Net Income

Management believes that ANI when viewed in conjunction with the Companyrsquos results under US GAAP and the above reconciliation provides useful information about operating and period-over-period performance and provides additional information that is useful for evaluating the underlying operating performance of our business without regard to periodic reporting elements related to interest rate derivative accounting changes related to refinancing activity and non-cash share based payment expense

1 Included in Other income (expense)2 Included in Selling general and administrative expenses

Net Income Loss on mark-to-market of interest rate derivative contracts(1)

Non-cash share-based payment expense(2)

Adjusted Net Income2726 2378

39616$ 56751$

For the Three Months Ended March 31

2019 2018

34810$ 57547$ 2080 (3174)

Sheet1

22FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Reconciliation of GAAP to non-GAAP Measures - Cash Earnings and Cash ROE

Note LTM Average Shareholdersrsquo Equity is the average of the most recent five quarters period end Shareholdersrsquo Equity Management believes that the cash return on equity metric (ldquoCash ROErdquo) when viewed in conjunction with the Companyrsquos results under US GAAP and the above reconciliation provide useful information about operating and period-over-period performance and provide additional information that is useful for evaluating the underlying operating performance of our business without regard to periodic reporting impacts related to non-cash revenue and expense items and interest rate derivative accounting while recognizing the depreciating nature of our assets To reflect the expected sale of the assets in one of our joint ventures and to simplify the presentation of Cash ROE we are no longer adjusting for joint venture distributions in excess ofless than joint venture earnings recorded under the equity method of investment accounting

Pro-forma Q119 estimates the impact of the Avianca Brazil and Jet Airways bankruptcies on Cash ROE by adding $159 million to Cash Flow From Operations in the first quarter of 2019

Dollars in thousands

LTM Ended CFFO +Gain on Sale

of Eqt - Deprec =Cash

Earnings

Average Shareholders

Equity

Trailing 12 Month Cash

ROEQ115 $498536 $28289 $300284 $226541 $1682857 135Q116 $525569 $64597 $320584 $269582 $1769981 152Q117 $499768 $27052 $307743 $219077 $1804573 121Q118 $534771 $60176 $294492 $300455 $1881633 160Q119 $510008 $43000 $320583 $232425 $1976235 118

Pro-forma Q119 $525899 $43000 $320583 $248316 $1976235 126

23FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Net Cash Interest Margin Calculation

1 We define net cash interest margin as lease rentals from operating leases interest income and cash collections from direct financing and sales-type leases minus interest on borrowings net settlements on interest rate derivatives and other liabilities adjusted for loan termination payments divided by the average net book of flight equipment (which includes net investment in direct financing and sales-type leases) for the period calculated on a quarterly and annualized basis The second quarter of 2017 excludes a non-recurring $70 million accelerated collection received from a lessee in connection with a finance lease

2 Excludes loan termination payments of $15 million and $35 million in the first quarter and fourth quarter of 2016 respectively and loan termination payments of $10 million in both the second and third quarters of 2017 and an $08 million loan termination gain in the third quarter of 2018

Management believes that net cash interest margin when viewed in conjunction with the Companyrsquos results under US GAAP and the above reconciliation provides useful information about the effective deployment of our capital in the context of the yield on our aircraft assets the utilization of those assets by our lessees and our ability to borrow efficiently

Except for percentages all figures are $ in thousands

3 Pro-forma Q119 estimates the impact of the Avianca Brazil and Jet Airways bankruptcies on annualized net cash interest margin by adding $159 million to quarterly rental revenue in the first quarter of 2019

Average NBV

Quarterly Rental

Revenue1 Cash Interest2

Annualized Net Cash Interest

Margin12

Q115 5743035$ 181027$ 50235$ 91Q215 5967898$ 189238$ 51413$ 92Q315 6048330$ 191878$ 51428$ 93Q415 5962874$ 188491$ 51250$ 92Q116 5988076$ 186730$ 51815$ 90Q216 5920030$ 184469$ 55779$ 87Q316 6265175$ 193909$ 57589$ 87Q416 6346361$ 196714$ 58631$ 87Q117 6505355$ 200273$ 58839$ 87Q217 6512100$ 199522$ 55871$ 88Q317 5985908$ 184588$ 53457$ 88Q417 6247581$ 187794$ 53035$ 86Q118 6700223$ 193418$ 53978$ 83Q218 6721360$ 193988$ 53979$ 83Q318 6787206$ 200354$ 54521$ 86Q418 7136627$ 200027$ 60348$ 78Q119 7449957$ 195601$ 60279$ 73

Pro-forma Q119 7449957$ 211501$ 60279$ 81 33

Summary

Data

Chart in Powerpoint

Chart in Press Release

TABLE

24FIRST QUARTER 2019 EARNINGS CALLbull 05022019

As part of the Companyrsquos adoption of ASC 842 we were required to reclassify collections on direct financing and sales-type leases on our Consolidated Statement of Cash Flows for the three months ended March 31 2019 The presentation for the three months ended March 31 2018 has also been reclassified to conform to the current period presentation

Reclassification of Collections on Direct Financing and Sales-Type Leases

Three Months Ended March 31 2018

Net cash and restricted cash provided by operating activities as previously reported $142412

Collections on direct financing and sales-type leases 6493

Net cash and restricted cash provided by operating activities $148905

25FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Book Value Per Share Calculation

As of Mar 31Shares Issued and Outstanding (000)

Shareholders Equity ($000)

Book Value Per Share Change

2015 81181 $1753552 $2160 172016 78811 $1770884 $2247 402017 78718 $1856084 $2358 492018 78539 $1937454 $2467 462019 75078 $2012939 $2681 87

Q115-Q119 CAGR 56

26FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Supplemental Financial Information

Except for percentages all figures are in thousands1 For the three months ended March 31 2019 distributed and undistributed earnings to restricted shares was 058 of net income and adjusted net income The amount of restricted share

forfeitures for the period presented is immaterial to the allocation of distributed and undistributed earnings2 For all periods presented dilutive shares represented contingently issuable shares

Weighted-average shares Shares Percent2

Common shares outstanding ndash Basic 74704 9942Unvested restricted common shares 435 058Total weighted-average shares outstanding 75138 10000

Common shares outstanding ndash Basic 74704 9924Effect of dilutive shares1 570 076Common shares outstanding ndash Diluted 75274 10000

Net income allocationNet income $ 34810 10000Distributed and undistributed earnings allocated to unvested restricted shares (201) -058Earnings available to common shares $ 34609 9942

Adjusted net income allocationAdjusted net income $ 39616 10000Amounts allocated to unvested restricted shares (229) -058Amounts allocated to common shares $ 39387 9942

Three Months Ended March 31 2019

Sheet1

27FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Supplemental Financial Information

Except for percentages all figures are in thousands1 For the three months ended March 31 2018 distributed and undistributed earnings to restricted shares was 055 of net income and adjusted net income The amount of restricted share

forfeitures for the period presented is immaterial to the allocation of distributed and undistributed earnings2 For all periods presented dilutive shares represented contingently issuable shares

Weighted-average shares Shares Percent2

Common shares outstanding ndash Basic 78367 9945Unvested restricted common shares 431 055Total weighted-average shares outstanding 78798 10000

Common shares outstanding ndash Basic 78367 9971Effect of dilutive shares1 228 029Common shares outstanding ndash Diluted 78595 10000

Net income allocationNet income $ 57547 10000Distributed and undistributed earnings allocated to unvested restricted shares (315) -055Earnings available to common shares $ 57232 9945

Adjusted net income allocationAdjusted net income $ 56751 10000Amounts allocated to unvested restricted shares (311) -055Amounts allocated to common shares $ 56440 9945

Three Months Ended March 31 2018

Sheet1

28FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Limitations of EBITDA Adjusted EBITDA ANI Cash ROE and Net Cash Interest Margin

An investor or potential investor may find EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin important measures in evaluating our performance results of operations and financial position We use these non-US GAAP measures to supplement our US GAAP results in order to provide a more complete understanding of the factors and trends affecting our business

EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin have limitations as analytical tools and should not be viewed in isolation or as substitutes for US GAAP measures of earnings Material limitations in making the adjustments to ourearnings to calculate EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin and using these non-US GAAP measures as compared to US GAAP net income income from continuing operations and cash flows provided by or used in operations include

depreciation and amortization though not directly affecting our current cash position represent the wear and tear andor reduction in value of our aircraft which affects the aircraftrsquos availability for use and may be indicative of future needs for capital expenditures

the cash portion of income tax (benefit) provision generally represents charges (gains) which may significantly affect our financial results

elements of our interest rate derivative accounting may be used to evaluate the effectiveness of our hedging policy

hedge loss amortization charges related to Term Financing No 1 and Securitization No 1 and

adjustments required in calculating covenant ratios and compliance as that term is defined in the indenture governing our seniorunsecured notes

EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin are not alternatives to net income income from operations or cash flows provided by or used in operations as calculated and presented in accordance with US GAAP You should not rely on these non-US GAAP measures as a substitute for any such US GAAP financial measure We strongly urge you to review the reconciliations to US GAAP net income along with our consolidated financial statements included elsewhere in our Annual Report We also strongly urge you to not rely on any single financial measure to evaluate our business In addition because EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin are not measures of financial performance under US GAAP and are susceptible to varying calculations EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin as presented here may differ from and may not be comparable to similarly titled measures used by other companies

  • Slide Number 1
  • Slide Number 2
  • Slide Number 3
  • Slide Number 4
  • Slide Number 5
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
Three Months Ended March 31 2019 Three Months Ended March 31 2019
Weighted-average shares Shares Percent2 Weighted-average shares Shares Percent2
Common shares outstanding ndash Basic 74704 9942 Common shares outstanding ndash Basic 74704 9942
Unvested restricted common shares 435 058 Unvested restricted common shares 435 058
Total weighted-average shares outstanding 75138 10000 Total weighted-average shares outstanding 75138 10000
Common shares outstanding ndash Basic 74704 9924 Common shares outstanding ndash Basic 74704 9924
Effect of dilutive shares1 570 076 Effect of dilutive shares1 570 076
Common shares outstanding ndash Diluted 75274 10000 Common shares outstanding ndash Diluted 75274 10000
Net income allocation Net income allocation
Net income $ 34810 10000 Net income $ 34810 10000
Distributed and undistributed earnings allocated to unvested restricted shares (201) -058 Distributed and undistributed earnings allocated to unvested restricted shares (201) -058
Earnings available to common shares $ 34609 9942 Earnings available to common shares $ 34609 9942
Adjusted net income allocation Adjusted net income allocation
Adjusted net income $ 39616 10000 Adjusted net income $ 39616 10000
Amounts allocated to unvested restricted shares (229) -058 Amounts allocated to unvested restricted shares (229) -058
Amounts allocated to common shares $ 39387 9942 Amounts allocated to common shares $ 39387 9942
Three Months Ended March 31 2018 Three Months Ended March 31 2018
Weighted-average shares Shares Percent2 Weighted-average shares Shares Percent2
Common shares outstanding ndash Basic 78367 9945 Common shares outstanding ndash Basic 78367 9945
Unvested restricted common shares 431 055 Unvested restricted common shares 431 055
Total weighted-average shares outstanding 78798 10000 Total weighted-average shares outstanding 78798 10000
Common shares outstanding ndash Basic 78367 9971 Common shares outstanding ndash Basic 78367 9971
Effect of dilutive shares1 228 029 Effect of dilutive shares1 228 029
Common shares outstanding ndash Diluted 78595 10000 Common shares outstanding ndash Diluted 78595 10000
Net income allocation Net income allocation
Net income $ 57547 10000 Net income $ 57547 10000
Distributed and undistributed earnings allocated to unvested restricted shares (315) -055 Distributed and undistributed earnings allocated to unvested restricted shares (315) -055
Earnings available to common shares $ 57232 9945 Earnings available to common shares $ 57232 9945
Adjusted net income allocation Adjusted net income allocation
Adjusted net income $ 56751 10000 Adjusted net income $ 56751 10000
Amounts allocated to unvested restricted shares (311) -055 Amounts allocated to unvested restricted shares (311) -055
Amounts allocated to common shares $ 56440 9945 Amounts allocated to common shares $ 56440 9945
Three Months Ended March 31 2019 Three Months Ended March 31 2019
Weighted-average shares Shares Percent2 Weighted-average shares Shares Percent2
Common shares outstanding ndash Basic 74704 9942 Common shares outstanding ndash Basic 74704 9942
Unvested restricted common shares 435 058 Unvested restricted common shares 435 058
Total weighted-average shares outstanding 75138 10000 Total weighted-average shares outstanding 75138 10000
Common shares outstanding ndash Basic 74704 9924 Common shares outstanding ndash Basic 74704 9924
Effect of dilutive shares1 570 076 Effect of dilutive shares1 570 076
Common shares outstanding ndash Diluted 75274 10000 Common shares outstanding ndash Diluted 75274 10000
Net income allocation Net income allocation
Net income $ 34810 10000 Net income $ 34810 10000
Distributed and undistributed earnings allocated to unvested restricted shares (201) -058 Distributed and undistributed earnings allocated to unvested restricted shares (201) -058
Earnings available to common shares $ 34609 9942 Earnings available to common shares $ 34609 9942
Adjusted net income allocation Adjusted net income allocation
Adjusted net income $ 39616 10000 Adjusted net income $ 39616 10000
Amounts allocated to unvested restricted shares (229) -058 Amounts allocated to unvested restricted shares (229) -058
Amounts allocated to common shares $ 39387 9942 Amounts allocated to common shares $ 39387 9942
Three Months Ended March 31 2018 Three Months Ended March 31 2018
Weighted-average shares Shares Percent2 Weighted-average shares Shares Percent2
Common shares outstanding ndash Basic 78367 9945 Common shares outstanding ndash Basic 78367 9945
Unvested restricted common shares 431 055 Unvested restricted common shares 431 055
Total weighted-average shares outstanding 78798 10000 Total weighted-average shares outstanding 78798 10000
Common shares outstanding ndash Basic 78367 9971 Common shares outstanding ndash Basic 78367 9971
Effect of dilutive shares1 228 029 Effect of dilutive shares1 228 029
Common shares outstanding ndash Diluted 78595 10000 Common shares outstanding ndash Diluted 78595 10000
Net income allocation Net income allocation
Net income $ 57547 10000 Net income $ 57547 10000
Distributed and undistributed earnings allocated to unvested restricted shares (315) -055 Distributed and undistributed earnings allocated to unvested restricted shares (315) -055
Earnings available to common shares $ 57232 9945 Earnings available to common shares $ 57232 9945
Adjusted net income allocation Adjusted net income allocation
Adjusted net income $ 56751 10000 Adjusted net income $ 56751 10000
Amounts allocated to unvested restricted shares (311) -055 Amounts allocated to unvested restricted shares (311) -055
Amounts allocated to common shares $ 56440 9945 Amounts allocated to common shares $ 56440 9945
Q119 Q418 Q318 Q119 B (W) vs Q418
Average NBV for the 4th and 3rd Quarters of 2018 $ 7449957 $ 7136627 $ 6787206 $ 313330 Average NBV 44 higher Q418 to Q119
Operating and Finance Lease Revenues $ 189676 $ 192711 $ 190836 $ (3034)
Finance Lease Collections $ 5925 $ 7316 $ 9518 $ (1391)
Annualized Portfolio Yield 105 112 118 -07 Annualized yield 71bps lower
Cash Interest Expense $ 60279 $ 60348 $ 54521 $ 69
Annualized Cash Interest 32 34 32 01 Annualized cash int exp 15bps lower
Annualized Cash Net Interest Margin 73 78 86 -06 Annualized cash margin 56bps lower
Average NBV Quarterly Rental Revenue(1) Cash Interest(2) Annualized Net Cash Interest Margin(1)(2) Yield Cash Interest Expense
Q112 $ 4388008 $ 152242 $ 44969 98 139 410
Q212 $ 4542477 $ 156057 $ 48798 94 137 430
Q312 $ 4697802 $ 163630 $ 41373 104 139 352
Q412 $ 4726457 $ 163820 $ 43461 102 139 368
Q113 $ 4740161 $ 162319 $ 48591 96 137 410
Q213 $ 4840396 $ 164239 $ 44915 99 136 371
Q313 $ 4863444 $ 167876 $ 47682 99 138 392
Q413 $ 5118601 $ 176168 $ 49080 99 138 384
Q114 $ 5312651 $ 181095 $ 51685 97 136 389
Q214 $ 5721521 $ 190574 $ 48172 100 133 337
Q314 $ 5483958 $ 182227 $ 44820 100 133 327
Q414 $ 5468637 $ 181977 $ 44459 101 133 325
Q115 $ 5743035 $ 181027 $ 50235 91 126 350
Q215 $ 5967898 $ 189238 $ 51413 92 127 345
Q315 $ 6048330 $ 191878 $ 51428 93 127 340
Q415 $ 5962874 $ 188491 $ 51250 92 126 344
Q116 $ 5988076 $ 186730 $ 51815 90 125 346
Q216 $ 5920030 $ 184469 $ 55779 87 125 377
Q316 $ 6265175 $ 193909 $ 57589 87 124 368
Q416 $ 6346361 $ 196714 $ 58631 87 124 370
Q117 $ 6505355 $ 200273 $ 58839 87 123 362
Q217 $ 6512100 $ 199522 $ 55871 88 123 343
Q317 $ 5985908 $ 184588 $ 53457 88 123 357
Q417 $ 6247581 $ 187794 $ 53035 86 120 340
Q118 $ 6700223 $ 193418 $ 53978 83 115 322
Q218 $ 6721360 $ 193988 $ 53979 83 115 321
Q318 $ 6787206 $ 200354 $ 54521 86 118 321
Q418 $ 7136627 $ 200027 $ 60348 78 112 338
Q119 $ 7449957 $ 195601 $ 60279 73 105 324
Pro-forma Q119 $ 7449957 $ 211501 $ 60279 81 114 324
Average NBV Quarterly Rental Revenue1 Cash Interest2 Annualized Net Cash Interest Margin12 Yield Cash Interest Expense
Q113 $ 4740161 $ 162319 $ 48591 96 137 410
Q213 $ 4840396 $ 164239 $ 44915 99 136 371
Q313 $ 4863444 $ 167876 $ 47682 99 138 392
Q413 $ 5118601 $ 176168 $ 49080 99 138 384
Q114 $ 5312651 $ 181095 $ 51685 97 136 389
Q214 $ 5721521 $ 190574 $ 48172 100 133 337
Q314 $ 5483958 $ 182227 $ 44820 100 133 327
Q414 $ 5468637 $ 181977 $ 44459 101 133 325
Q115 $ 5743035 $ 181027 $ 50235 91 126 350
Q215 $ 5967898 $ 189238 $ 51413 92 127 345
Q315 $ 6048330 $ 191878 $ 51428 93 127 340
Q415 $ 5962874 $ 188491 $ 51250 92 126 344
Q116 $ 5988076 $ 186730 $ 51815 90 125 346
Q216 $ 5920030 $ 184469 $ 55779 87 125 377
Q316 $ 6265175 $ 193909 $ 57589 87 124 368
Q416 $ 6346361 $ 196714 $ 58631 87 124 370
Q117 $ 6505355 $ 200273 $ 58839 87 123 362
Q217 $ 6512100 $ 199522 $ 55871 88 123 343
Q317 $ 5985908 $ 184588 $ 53457 88 123 357
Q417 $ 6247581 $ 187794 $ 53035 86 120 340
Q118 $ 6700223 $ 193418 $ 53978 83 115 322
Q218 $ 6721360 $ 193988 $ 53979 83 115 321
Q318 $ 6787206 $ 200354 $ 54521 86 118 321
Q418 $ 7136627 $ 200027 $ 60348 78 112 338
Q119 $ 7449957 $ 195601 $ 60279 73 105 324
Pro-forma Q119 $ 7449957 $ 211501 $ 60279 81 114 324
NBV FE Fin Lease NBV Flight Equip + Fin Lease Lease Rentals Interest Inc Fin lease Collections on Fin Leases Total Lease Rent Collections Quarterly Lease rent Collections Cash Interest Loan and Contract Termination Fees included in Cash Interest Adj Cash Int NIM $ NIM Yield Cash Int
Month End Month End Month End Mo Avg Qtrly Avg MTD MTD QTD QTD QTD
DEC10 4065780 - 0 4065780
JAN11 3981690 - 0 3981690 4023735 - 0 47091 - 0 - 0 47091 - 0 - 0 - 0
FEB11 4051167 - 0 4051167 4016428 - 0 47264 - 0 - 0 47264 - 0 - 0 - 0
MAR11 4120309 - 0 4120309 4085738 4041967 46761 - 0 - 0 46761 141116 $ 41278 41278 99838 988
APR11 4125377 - 0 4125377 4122843 - 0 47211 - 0 - 0 47211 - 0 - 0 - 0
MAY11 4194987 - 0 4194987 4160182 - 0 47897 - 0 - 0 47897 - 0 - 0 - 0
JUN11 4099641 - 0 4099641 4147314 4143446 48248 - 0 - 0 48248 143356 $ 43217 $ 3196 40021 103335 998
JUL11 4271013 - 0 4271013 4185327 - 0 47994 - 0 - 0 47994 - 0 - 0 - 0
AUG11 4248242 - 0 4248242 4259628 - 0 49193 - 0 - 0 49193 - 0 - 0 - 0
SEP11 4196918 - 0 4196918 4222580 4222512 48704 - 0 - 0 48704 145890 $ 42066 42066 103824 984
OCT11 4430527 - 0 4430527 4313723 - 0 49054 - 0 - 0 49054 - 0 - 0 - 0
NOV11 4401782 - 0 4401782 4416155 - 0 50498 - 0 - 0 50498 - 0 - 0 - 0
DEC11 4387986 - 0 4387986 4394884 4374921 50297 - 0 - 0 50297 149848 $ 43041 43041 106807 977
JAN12 4391666 - 0 4391666 4389826 - 0 51034 - 0 - 0 51034 - 0 - 0 - 0
FEB12 4385360 - 0 4385360 4388513 - 0 49705 - 0 - 0 49705 - 0 - 0 - 0
MAR12 4386010 - 0 4386010 4385685 4388008 51503 - 0 - 0 51503 152242 $ 44969 44969 107273 978
APR12 4484956 - 0 4484956 4435483 - 0 50824 - 0 - 0 50824 - 0 - 0 - 0
MAY12 4570712 31500 4602212 4543584 - 0 51020 - 0 - 0 51020 - 0 - 0 - 0
JUN12 4604493 90024 4694518 4648365 4542477 51781 956 1476 54213 156057 $ 48798 48798 107259 944
JUL12 4572121 90739 4662860 4678689 - 0 52892 963 - 0 53855 - 0 - 0 - 0
AUG12 4665966 90332 4756298 4709579 - 0 52945 948 - 0 53893 - 0 - 0 - 0
SEP12 4532445 121533 4653978 4705138 4697802 53709 1608 565 55881 163630 $ 41373 41373 122257 1041
OCT12 4574055 120934 4694990 4674484 - 0 52277 1311 - 0 53588 - 0 - 0 - 0
NOV12 4645741 120345 4766086 4730538 - 0 52596 1321 - 0 53917 - 0 - 0 - 0
DEC12 4662661 119951 4782612 4774349 4726457 53217 1286 1811 56314 163820 $ 43461 43461 120359 1019
JAN13 4639414 119339 4758753 4770682 - 0 52957 1298 - 0 54255 - 0 - 0 - 0
FEB13 4614480 118707 4733187 4745970 - 0 51936 1277 - 0 53213 - 0 - 0 - 0
MAR13 4544773 129700 4674474 4703830 4740161 51697 1309 1845 54850 162319 $ 48591 48591 113728 960
APR13 4621392 128981 4750373 4712423 - 0 51363 1384 - 0 52747 - 0 - 0 - 0
MAY13 4915814 128237 5044051 4897212 - 0 53613 1359 - 0 54972 - 0 - 0 - 0
JUN13 4651553 127504 4779057 4911554 4840396 52942 1370 2207 56520 164239 $ 47869 $ 2954 44915 119324 986
JUL13 4668642 149932 4818574 4798816 - 0 52469 1372 - 0 53840 - 0 - 0 - 0
AUG13 4690154 149017 4839171 4828873 - 0 53339 1423 - 0 54763 - 0 - 0 - 0
SEP13 4938113 148005 5086118 4962645 4863444 55340 1327 2606 59273 167876 $ 47682 47682 120194 989
OCT13 4913184 147017 5060200 5073159 - 0 56643 1350 - 0 57993 - 0 - 0 - 0
NOV13 5011676 146076 5157752 5108976 - 0 56264 1361 - 0 57625 - 0 - 0 - 0
DEC13 5044410 145173 5189583 5173668 5118601 56367 1333 2850 60550 176168 $ 49080 49080 127088 993
JAN14 5015452 144256 5159708 5174646 - 0 58142 1337 - 0 59478 - 0 - 0 - 0
FEB14 5129035 143356 5272392 5216050 - 0 57572 1354 - 0 58926 - 0 - 0 - 0
MAR14 5679723 142400 5822123 5547257 5312651 58621 1297 2773 62691 181095 $ 51685 51685 129410 974
APR14 5605462 155551 5761013 5791568 - 0 61276 1329 - 0 62604 - 0 - 0 - 0
MAY14 5512769 154435 5667205 5714109 - 0 60998 1338 - 0 62336 - 0 - 0 - 0
JUN14 5577966 72600 5650566 5658886 5721521 60957 1231 3446 65634 190574 $ 48172 48172 142402 996
JUL14 5418990 71971 5490961 5570764 - 0 60509 484 - 0 60993 - 0 - 0 - 0
AUG14 5412453 71345 5483799 5487380 - 0 59617 488 - 0 60105 - 0 - 0 - 0
SEP14 5232940 70723 5303663 5393731 5483958 58760 491 1877 61129 182227 $ 44820 44820 137407 1002
OCT14 5340303 88360 5428663 5366163 - 0 59394 480 - 0 59874 - 0 - 0 - 0
NOV14 5374566 107667 5482233 5455448 - 0 59717 542 - 0 60259 - 0 - 0 - 0
DEC14 5579718 106651 5686369 5584301 5468637 59091 537 2216 61844 181977 $ 44459 44459 137518 1006 1331 325 134 99
JAN15 5642590 105896 5748487 5717428 - 0 59898 539 - 0 60437 - 0 - 0 - 0
FEB15 5623616 105155 5728770 5738628 - 0 58688 552 - 0 59240 - 0 - 0 - 0
MAR15 5712950 104377 5817327 5773049 5743035 58560 516 2274 61350 181027 $ 50235 50235 130792 911 1261 350
APR15 5778092 119625 5897717 5857522 - 0 60016 589 - 0 60605 - 0 - 0 - 0
MAY15 5940205 118903 6059108 5978412 - 0 61684 628 - 0 62311 - 0 - 0 - 0
JUN15 5953555 122855 6076411 6067759 5967898 63140 660 2521 66322 189238 $ 51413 51413 137825 924 1268 345
JUL15 5942037 122200 6064238 6070324 - 0 63838 625 - 0 64463 - 0 - 0 - 0
AUG15 5917660 121542 6039202 6051720 - 0 62322 623 - 0 62945 - 0 - 0 - 0
SEP15 5885807 120882 6006689 6022946 6048330 61877 620 1973 64470 191878 $ 51428 51428 140450 929 1269 340
OCT15 5829040 103074 5932114 5969402 - 0 61959 611 - 0 62570 - 0 - 0 - 0
NOV15 5801167 117861 5919028 5925571 - 0 60485 623 - 0 61108 - 0 - 0 - 0
DEC15 5867062 201211 6068273 5993651 5962874 60949 1072 2791 64812 188491 $ 51250 51250 137241 921 1264 344 127 92
JAN16 5836479 198445 6034923 6051598 - 0 60245 1141 - 0 61387 - 0 - 0 - 0
FEB16 5796230 213436 6009666 6022295 - 0 60098 1161 - 0 61259 - 0 - 0 - 0
MAR16 5558666 212336 5771002 5890334 5988076 59227 1195 3663 64085 186730 $ 53324 1509 51815 134915 901 1247 346
APR16 5654825 211354 5866179 5818591 - 0 58383 1160 - 0 59544 - 0 - 0 - 0
MAY16 5659238 265253 5924490 5895335 - 0 58787 1432 - 0 60218 - 0 - 0 - 0
JUN16 5875935 291903 6167838 6046164 5920030 58955 1582 4170 64707 184469 55779 55779 128690 870 1246 377
JUL16 5980982 290048 6271030 6219434 - 0 60301 1805 - 0 62107 - 0 - 0 - 0
AUG16 6017274 288131 6305405 6288218 - 0 60757 1744 - 0 62501 - 0 - 0 - 0
SEP16 6004489 265854 6270343 6287874 6265175 60917 1805 6580 69301 193909 57589 57589 136320 870 1238 368
OCT16 6025556 264389 6289945 6280144 - 0 61757 1413 63170 - 0 - 0 - 0
NOV16 6097520 262667 6360187 6325066 - 0 62824 1357 64181 - 0 - 0 - 0
DEC16 6246707 260853 6507560 6433874 6346361 62969 1394 5000 69363 196714 62082 3451 58631 138083 870 1240 370 124 88
JAN17 6219012 259264 6478276 6492918 - 0 63296 1359 64655 - 0
FEB17 6227957 257474 6485431 6481853 - 0 63575 1288 64863 - 0
MAR17 6297190 299969 6597159 6541295 6505355 63715 1426 5614 70755 200273 58839 58839 141434 870 1231 362
APR17 6269189 348327 6617516 6607338 64119 1814 65933
MAY17 6156371 377186 6533557 6575537 63186 2079 65265
JUN17 5818821 354474 6173295 6353426 6512100 61794 1985 4545 68324 199522 56859 988 55871 143651 882 1226 343
JUL17 5615695 352411 5968106 6070700 59464 1954 61418
AUG17 5523543 390140 5913683 5940895 56603 1917 58520
SEP17 5490164 488408 5978572 5946128 5985908 55621 2541 6488 64650 184588 54527 1070 53457 131131 876 1233 357
OCT17 5493432 549212 6042644 6010608 55282 2833 58115
NOV17 5789587 554117 6343704 6193174 56823 3248 60071
DEC17 6188469 545750 6734219 6538962 6247581 57826 3272 8511 69609 187794 53035 53035 134759 863 1202 340 122 87
JAN18 6163924 543311 6707235 6720727 59570 3212 62782
FEB18 6173766 514024 6687790 6697513 59177 3007 62184
MAR18 6143695 533373 6677067 6682429 6700223 58736 3222 6493 68451 193418 53978 53978 139440 832 1155 322
APR18 6120068 531077 6651145 6664106 58481 2936 61417
MAY18 6257826 528503 6786329 6718737 59975 3015 62990
JUN18 6249406 526738 6776144 6781236 6721360 60030 2918 6634 69582 193988 53979 53979 140009 833 1154 321 12 MONTH CALCULATION
JUL18 6261431 523491 6784922 6780533 60815 2990 63804 Yield NIM
AUG18 6250137 519066 6769203 6777062 60517 2927 63444 2014 134 99
SEP18 6321623 517221 6838844 6804023 6787206 60712 2876 9518 73106 200354 53683 -838 54521 145833 859 1181 321 2015 127 92
OCT18 6602809 515251 7118060 6978452 62875 2742 65617 2016 124 88
NOV18 6657588 512429 7170017 7144039 61402 2610 64012 2017 122 87
DEC18 6935585 469180 7404765 7287391 7136627 60405 2677 7316 70398 200027 60348 60348 139679 783 1121 338 115 83 2018 115 83
JAN19 6900489 509725 7410214 7407489 59462 2959 62421 LTM Q119 112 80
FEB19 6907294 507653 7414948 7412581 62458 2701 65158
MAR19 7138689 505964 7644653 7529800 7449957 59314 2783 5925 68022 195601 60279 60279 135322 727 1050 324 112 80
wCollections on Finance Leases 2019 2018 2017
Finance Lease Collections Finance Lease Collections Finance Lease Collections
Yield Cash Interest Net Spread Avg NBV Lease Rent Interest YTD 5925 YTD 29961 YTD 32184
Q117 1231 362 870 6505355 200273 $ 58839 Q119 5925 Q118 6493 Q117 5614
Q119 1050 324 727 7449957 195601 60279 Q219 Q218 6634 Q217 11571
-181 -038 -143 Change 145 -23 24 Q319 Q318 9518 Q317 6488
Q419 Q418 7316 Q417 8511
Yield Cash Interest Net Spread Avg NBV Lease Rent Interest Finance Lease Revenue Finance Lease Revenue Finance Lease Revenue
Q118 1155 322 832 6700223 193418 53978 Q119 8442 Q418 8029 Q417 9353
Q119 1050 324 727 7449957 195601 60279 January 2959 October 2742 October 2833
-104 001 -106 Change 112 11 117 February 2701 November 2610 November 3248
March 2783 December 2677 December 3272
Yield Cash Interest Net Spread Avg NBV Lease Rent Interest
Q418 1121 338 783 7136627 200027 60348 Collections on Finance Leases excludes $70 million of unusual payments received from KLM in Q217
Q119 1050 324 727 7449957 195601 60279
-071 -015 -056 Change 44 -22 -01
112 w$17mm added to Q119
11 Actual 1050 324 727
Revised 1141 324 818
091 091
wCollections on Finance Leases
Yield Cash Interest Net Spread
Q314 13292 3269 1002
Q316 12380 3677 870
-0911 0408 -132
Yield Cash Interest Net Spread
Q315 12690 3401 929
Q316 12380 3677 870
-0310 0276 -059
Yield Cash Interest Net Spread
Q216 12464 3769 870
Q316 12380 3677 870
-0084 -0092 001
Old Format
Yield Cash Interest Net Spread
Q314 13221 3312 991
Q316 12173 3852 832
-1047 -0540 -159
Yield Cash Interest Net Spread
Q315 12691 3471 922
Q316 12173 3852 832
-0518 -0381 -090
Yield Cash Interest Net Spread
Q216 12409 3930 8479
Q316 12173 3852 8321
Change -0236 0078 -0159
For the Three Months Ended March 31
2019 2018
Net Income $ 34810 $ 57547
(Gain) loss on mark-to-market of interest rate derivative contracts(1) 2080 (3174)
Non-cash share-based payment expense(2) 2726 2378
Adjusted Net Income $ 39616 $ 56751
For the Three Months Ended March 31
2019 2018
Net Income $ 34810 $ 57547
Loss on mark-to-market of interest rate derivative contracts(1) 2080 (3174)
Non-cash share-based payment expense(2) 2726 2378
Adjusted Net Income $ 39616 $ 56751
Three Mos Ended Dec 31
2019 2018
(Dollars in thousands)
Net income $ 34810 $ 57547
Depreciation 84735 75002
Amortization of lease premiums discounts and incentives 5711 3128
Interest net 63463 57108
Income tax provision 3098 (844)
EBITDA 191817 191941
Adjustments
Equity share of joint venture impairment 2724 -
Non-cash share based payment expense 2726 2378
(Gain) loss on MTM of interest rate derivative contracts 2080 (3174)
Adjusted EBITDA $ 199347 $ 191145
Three Mos Ended Dec 31
2019 2018
(Dollars in thousands)
Net income $ 34810 $ 57547
Depreciation 84735 75002
Amortization of lease premiums discounts and incentives 5711 3128
Interest net 63463 57108
Income tax provision 3098 (844)
EBITDA 191817 191941
Adjustments
Equity share of joint venture impairment 2724 - 0
Non-cash share based payment expense 2726 2378
(Gain) loss on MTM of interest rate derivative contracts 2080 (3174)
Adjusted EBITDA $ 199347 $ 191145

7FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Q119 Acquisitions amp Sales

Acquired fourteen aircraft in Q119 for $445 million

Committed to acquire twelve additional aircraft for $385 million in 2019

Sold four aircraft for gain on sale of $83 million recognized $37 million of gains from the reclassification of two aircraft as direct financing and sales-type leases

Our 2019 placement task is nearly complete confirmed leases signed for ten Avianca Brazil A320s and seven Jet 737 family aircraft

Q119 Acquisitions amp Sales

Acquisitions1 Completed Sales

Investments Sales Proceeds $445 million $56 million

Total Number of Aircraft 14 4

1 Closed deals only through March 31 2019

8FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Robust Portfolio Management with an Active Asset Strategy

274 aircraft owned and managed at Q119

Since 2015

Acquired 227 aircraft

Sold 116 aircraft

Generated $201 million gains from sales and net proceeds of $25 billion

46

6068

39

14

31 3037

14

4

0

10

20

30

40

50

60

70

80

2015 2016 2017 2018 Q119

Num

ber o

f airc

raft

Purchases Sales

9FIRST QUARTER 2019 EARNINGS CALLbull 05022019

73 of the fleet now consists of more liquidnarrow-body aircraft

versus 36 five years ago

36

49

15

NBs WBs Freighters Classics

73

23

4

NBs WBs Freighters

9336

23

NBs WBs Freighters Classics

229

26

4

NBs WBs Freighters

Fleet EvolutionSignificant Fleet Risk Reduction

Since Q115 the number of wide-body freighter

and classic aircraft declined from a total of 59 aircraft to 30 aircraft

Q115 Aircraft Count Q119 Aircraft Count

Q115 Fleet Type (By NBV) Q119 Fleet Type (By NBV)

Aircastle continues to add in-demand narrow-bodies to the Companyrsquos fleet

10FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Portfolio Metrics

Since Q115 expanded owned fleet at a compound annual growth rate of 71

$ in billions Q115 Q119 Q119 vs Q115

Flight Equipment Held for Lease1 $58 $76 + $18

Wtd Avg Fleet Age (years)2 83 94 + 11

Wtd Avg Lease Term (years)2 56 45 - 11

Managed JV Aircraft1 $05 $07 + $02

1 Calculated using NBV at period end2 Weighted average by NBV

NBV as used throughout this presentation includes the net book value of flight equipment held for lease and the net investment in direct financing and sales-type leases

11FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Diversified Customer Base with Broad Geographic Distribution

86 airline customers in 47countries across the globe

Most top customers are large flag carriers and leading LCCs

Balanced distribution of the aircraft fleet by geographic region

Asia represents 37 of portfolio NBV followed by Europe at 29

South America represents 10 North America 9

Top Ten Lessees of NBV1 per

customer Customer Country Aircraft

gt6 IndiGo India 17

3-6

Lion Air Indonesia 11

LATAM Chile 3

TAP Portugal Portugal 8

Iberia Spain 15

SAA SouthAfrica 4

easyJet UnitedKingdom 20

Jeju Air SouthKorea 9

lt3Aerolineas Argentinas Argentina 5

Interjet Mexico 11

1 As of March 31 2019

Top Ten Countries

Country AC of NBV1

India 28 122

Indonesia 15 66

Russia 11 60

United Kingdom 30 52

South Korea 14 51

Portugal 8 45

Chile 3 44

USA 15 42

Mexico 16 42

Spain 16 41

12FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Leasing Activity and Portfolio Performance

Note Aircraft on-lease days as a percent of total days in period weighted by NBV

937 utilization during Q119 was below trend primarily due to the bankruptcies of Avianca Brazil and Jet Airways

We expect these aircraft to return to service in mid Q219 with utilization to begin normalizing

Three aircraft remaining to be sold or placed in 2019 represents 15 of NBV

Utilization Performance

Utilization has averaged 988 since Q115

80

82

84

86

88

90

92

94

96

98

100

Q1

15

Q1

16

Q1

17

Q1

18

Q1

19

13FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Rental Yields and Net Cash Interest Margins

Approximately 85bps of the reduction reflects unrecognized rental revenue from AviancaBrazil and Jet Airways

105 lease rental yield 12 and 73 net cash interest margin1

114 pro-forma3 lease rental yield12 81 and net cash interest margin13

We expect the net cash interest margin to rebound in the second half of 2019 as the Avianca Brazil and Jet Airways aircraft return to revenue service

0

2

4

6

8

10

12

14

Q1

15

Q2

15

Q3

15

Q4

15

Q1

16

Q2

16

Q3

16

Q4

16

Q1

17

Q2

17

Q3

17

Q4

17

Q1

18

Q2

18

Q3

18

Q4

18

Q1

19

Pro-

form

aQ

119

Lease Rental Yield Net Cash Interest Margin

105

73

1 Refer to the selected financial Information accompanying this presentation for a reconciliation of GAAP to Non-GAAP numbers

2 Lease Rental Yield = Operating and finance lease rental revenue plus direct financing and sales-typelease collections average monthly NBV including direct financing and sales-type leases for the period calculated on a quarterly basis annualized

3 Adds back $159 million of lease rental revenue in Q119 to show the impact of the bankruptcies of Avianca Brazil and Jet Airways on Lease Rental Yield and Net Cash Interest Margin

1 2 13

Pro-forma 23

114

Pro-forma 13

81

14FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Cash ROE Performance

Q119 118

AVG 140

Trailing twelve month Cash ROE1 was 118 versus 160 a year ago

GAAP ROE of 114

Cash flow from operations of $5100 million was $248million lower for LTM ended Q119 versus comparable period a year earlier

Q119 Pro-forma Cash ROE including unrecognized rental revenue of $159 million associated with Avianca Brazil and Jet Airways bankruptcies approximates 1262

1 Refer to the selected financial Information accompanying this presentation for a reconciliation of GAAP to Non-GAAP numbers

2 Adds $159 million of lease rental revenue to the last twelve months Cash Flow From Operations to show the estimated impact of the bankruptcies of AviancaBrazil and Jet Airways on Cash ROE

0

2

4

6

8

10

12

14

16

18

Q1

15

Q2

15

Q3

15

Q4

15

Q1

16

Q2

16

Q3

16

Q4

16

Q1

17

Q2

17

Q3

17

Q4

17

Q1

18

Q2

18

Q3

18

Q4

18

Q1

19

Cash

Ret

urn

on A

vera

ge S

hare

hold

errsquos

Equ

ity

15FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Q119 Capital Structure

Strong liquidity profile and low financial leverage minimal forward commitments

Net debt to equity of 24x84 of total debt was unsecured at quarter-end

Average remaining life of debt is 32 years$500 million note matures in 2019

$705 million in available revolver capacity $375 million drawn from a total of $108 billionUnrestricted cash of $93 million

$63 billion of unencumbered flight equipment ndash 228 aircraft

16FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Selected Financial Guidance Elements for Q219

Guidance Item Q219

Lease rental revenue1 $186 - $190

Direct financing and sales-type lease revenue $8 - $9

Amortization of lease premiums discounts and incentives $(5) - $(6)

Maintenance revenue2 $16 - $20

Gain on sale $4 - $8

Depreciation $87 - $90

Interest net $66 - $69

SGampA3 $18 - $19

Full year effective tax rate 7 - 9

1 Reflects the return to service of Avianca Brazil and Jet Airways aircraft commencing in Q219 2 Includes $101M of net maintenance revenue (maintenance reserves net of a transactional impairment) in connection with the early return of seven aircraft from Jet Airways3 Includes $32M of non-cash share based payment expense

17FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Appendix

18FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Q119 Capital Structure amp Liquidity Summary

Note The debt totals in the above table do not include debt issuance costs or discounts which are reflected in the net debt totals that are displayed on the consolidated balance sheet

Aircastles Capital Structure

As of Mar 31 2019 As of Dec 31 2018 As of Dec 31 2017($ in millions)Unrestricted cash and cash equivalents $ 93 $ 153 $ 212 Debt O S Rate1 O S Rate1 O S Rate1

ECA Term Financings 179 358 189 358 227 359Bank Financings 603 464 620 473 635 368

Total Secured Debt 783 440 809 446 863 365

Senior Notes due 2018 - - - - 400 463Senior Notes due 2019 500 625 500 625 500 625Senior Notes due 2020 300 763 300 763 300 763Senior Notes due 2021 500 513 500 513 500 513Senior Notes due 2022 500 550 500 550 500 550Senior 500 Notes due 2023 500 500 500 500 500 500Senior 440 Notes due 2023 650 440 650 440 - -Senior Notes due 2024 500 413 500 413 500 413Bank Revolvers 375 399 425 401 175 368Other Unsecured Bank Financings 335 424 120 434 120 359

Total Unsecured Debt 4160 506 3995 510 3495 521

Total Debt and Weighted Avg Rate 4943 496 4804 499 4358 490Shareholdersrsquo equity 2013 2009 1908 Total capitalization $ 6956 $ 6812 $ 6265

Net debt to equity 24 x 23 x 22 xUnsecured debt to total debt 84 83 80

19FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Supplemental Financial Information

Three Months Ended

March 31in thousands except per share amounts 2019 2018

Revenues $ 213927 $ 202680

EBITDA $ 191817 $ 191941

Adjusted EBITDA $ 199347 $ 191145

Net income $ 34810 $ 57547Net income allocable to common shares $ 34609 $ 57232

Per common share - Basic $ 046 $ 073Per common share - Diluted $ 046 $ 073

Adjusted net income $ 39616 $ 56751Adjusted net income allocable to common shares $ 39387 $ 56440

Per common share - Basic $ 053 $ 072Per common share - Diluted $ 052 $ 072

Basic common shares outstanding 74704 78367Diluted common shares outstanding 75274 78595

20FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Reconciliation of GAAP to Non-GAAP Measures ndash EBITDA and Adjusted EBITDA

We define EBITDA as income (loss) from continuing operations before income taxes interest expense and depreciation and amortization We use EBITDA to assess our consolidated financial and operating performance and we believe this non-US GAAP measure is helpful in identifying trends in our performance

This measure provides an assessment of controllable expenses and affords management the ability to make decisions which are expected to facilitate meeting current financial goals as well as achieving optimal financial performance It provides an indicator for management to determine if adjustments to current spending decisions are needed

EBITDA provides us with a measure of operating performance because it assists us in comparing our operating performance on a consistent basis as it removes the impact of our capital structure (primarily interest charges on our outstanding debt) and asset base (primarily depreciation and amortization) from our operating results

Accordingly this metric measures our financial performance based on operational factors that management can impact in the short-term namely the cost structure or expenses of the organization EBITDA is one of the metrics used by senior management and the board of directors to review the consolidated financial performance of our business

We define Adjusted EBITDA as EBITDA (as defined above) further adjusted to give effect to adjustments required in calculating covenant ratios and compliance as that term is defined in the indenture governing our senior unsecured notes Adjusted EBITDA is a material component of these covenants

2019 2018

Net income $ 34810 $ 57547

Depreciation 84735 75002

Amortization of lease premiums discounts and incentives 5711 3128

Interest net 63463 57108

Income tax provision 3098 (844)

EBITDA 191817 191941

Adjustments

Equity share of joint venture impairment 2724 -

Non-cash share based payment expense 2726 2378

(Gain) loss on MTM of interest rate derivative contracts 2080 (3174)

Adjusted EBITDA $ 199347 $ 191145

Three Mos Ended Dec 31

(Dollars in thousands)

Sheet1

Sheet2

Sheet3

21FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Reconciliation of GAAP to Non-GAAP Measures ndash Adjusted Net Income

Management believes that ANI when viewed in conjunction with the Companyrsquos results under US GAAP and the above reconciliation provides useful information about operating and period-over-period performance and provides additional information that is useful for evaluating the underlying operating performance of our business without regard to periodic reporting elements related to interest rate derivative accounting changes related to refinancing activity and non-cash share based payment expense

1 Included in Other income (expense)2 Included in Selling general and administrative expenses

Net Income Loss on mark-to-market of interest rate derivative contracts(1)

Non-cash share-based payment expense(2)

Adjusted Net Income2726 2378

39616$ 56751$

For the Three Months Ended March 31

2019 2018

34810$ 57547$ 2080 (3174)

Sheet1

22FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Reconciliation of GAAP to non-GAAP Measures - Cash Earnings and Cash ROE

Note LTM Average Shareholdersrsquo Equity is the average of the most recent five quarters period end Shareholdersrsquo Equity Management believes that the cash return on equity metric (ldquoCash ROErdquo) when viewed in conjunction with the Companyrsquos results under US GAAP and the above reconciliation provide useful information about operating and period-over-period performance and provide additional information that is useful for evaluating the underlying operating performance of our business without regard to periodic reporting impacts related to non-cash revenue and expense items and interest rate derivative accounting while recognizing the depreciating nature of our assets To reflect the expected sale of the assets in one of our joint ventures and to simplify the presentation of Cash ROE we are no longer adjusting for joint venture distributions in excess ofless than joint venture earnings recorded under the equity method of investment accounting

Pro-forma Q119 estimates the impact of the Avianca Brazil and Jet Airways bankruptcies on Cash ROE by adding $159 million to Cash Flow From Operations in the first quarter of 2019

Dollars in thousands

LTM Ended CFFO +Gain on Sale

of Eqt - Deprec =Cash

Earnings

Average Shareholders

Equity

Trailing 12 Month Cash

ROEQ115 $498536 $28289 $300284 $226541 $1682857 135Q116 $525569 $64597 $320584 $269582 $1769981 152Q117 $499768 $27052 $307743 $219077 $1804573 121Q118 $534771 $60176 $294492 $300455 $1881633 160Q119 $510008 $43000 $320583 $232425 $1976235 118

Pro-forma Q119 $525899 $43000 $320583 $248316 $1976235 126

23FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Net Cash Interest Margin Calculation

1 We define net cash interest margin as lease rentals from operating leases interest income and cash collections from direct financing and sales-type leases minus interest on borrowings net settlements on interest rate derivatives and other liabilities adjusted for loan termination payments divided by the average net book of flight equipment (which includes net investment in direct financing and sales-type leases) for the period calculated on a quarterly and annualized basis The second quarter of 2017 excludes a non-recurring $70 million accelerated collection received from a lessee in connection with a finance lease

2 Excludes loan termination payments of $15 million and $35 million in the first quarter and fourth quarter of 2016 respectively and loan termination payments of $10 million in both the second and third quarters of 2017 and an $08 million loan termination gain in the third quarter of 2018

Management believes that net cash interest margin when viewed in conjunction with the Companyrsquos results under US GAAP and the above reconciliation provides useful information about the effective deployment of our capital in the context of the yield on our aircraft assets the utilization of those assets by our lessees and our ability to borrow efficiently

Except for percentages all figures are $ in thousands

3 Pro-forma Q119 estimates the impact of the Avianca Brazil and Jet Airways bankruptcies on annualized net cash interest margin by adding $159 million to quarterly rental revenue in the first quarter of 2019

Average NBV

Quarterly Rental

Revenue1 Cash Interest2

Annualized Net Cash Interest

Margin12

Q115 5743035$ 181027$ 50235$ 91Q215 5967898$ 189238$ 51413$ 92Q315 6048330$ 191878$ 51428$ 93Q415 5962874$ 188491$ 51250$ 92Q116 5988076$ 186730$ 51815$ 90Q216 5920030$ 184469$ 55779$ 87Q316 6265175$ 193909$ 57589$ 87Q416 6346361$ 196714$ 58631$ 87Q117 6505355$ 200273$ 58839$ 87Q217 6512100$ 199522$ 55871$ 88Q317 5985908$ 184588$ 53457$ 88Q417 6247581$ 187794$ 53035$ 86Q118 6700223$ 193418$ 53978$ 83Q218 6721360$ 193988$ 53979$ 83Q318 6787206$ 200354$ 54521$ 86Q418 7136627$ 200027$ 60348$ 78Q119 7449957$ 195601$ 60279$ 73

Pro-forma Q119 7449957$ 211501$ 60279$ 81 33

Summary

Data

Chart in Powerpoint

Chart in Press Release

TABLE

24FIRST QUARTER 2019 EARNINGS CALLbull 05022019

As part of the Companyrsquos adoption of ASC 842 we were required to reclassify collections on direct financing and sales-type leases on our Consolidated Statement of Cash Flows for the three months ended March 31 2019 The presentation for the three months ended March 31 2018 has also been reclassified to conform to the current period presentation

Reclassification of Collections on Direct Financing and Sales-Type Leases

Three Months Ended March 31 2018

Net cash and restricted cash provided by operating activities as previously reported $142412

Collections on direct financing and sales-type leases 6493

Net cash and restricted cash provided by operating activities $148905

25FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Book Value Per Share Calculation

As of Mar 31Shares Issued and Outstanding (000)

Shareholders Equity ($000)

Book Value Per Share Change

2015 81181 $1753552 $2160 172016 78811 $1770884 $2247 402017 78718 $1856084 $2358 492018 78539 $1937454 $2467 462019 75078 $2012939 $2681 87

Q115-Q119 CAGR 56

26FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Supplemental Financial Information

Except for percentages all figures are in thousands1 For the three months ended March 31 2019 distributed and undistributed earnings to restricted shares was 058 of net income and adjusted net income The amount of restricted share

forfeitures for the period presented is immaterial to the allocation of distributed and undistributed earnings2 For all periods presented dilutive shares represented contingently issuable shares

Weighted-average shares Shares Percent2

Common shares outstanding ndash Basic 74704 9942Unvested restricted common shares 435 058Total weighted-average shares outstanding 75138 10000

Common shares outstanding ndash Basic 74704 9924Effect of dilutive shares1 570 076Common shares outstanding ndash Diluted 75274 10000

Net income allocationNet income $ 34810 10000Distributed and undistributed earnings allocated to unvested restricted shares (201) -058Earnings available to common shares $ 34609 9942

Adjusted net income allocationAdjusted net income $ 39616 10000Amounts allocated to unvested restricted shares (229) -058Amounts allocated to common shares $ 39387 9942

Three Months Ended March 31 2019

Sheet1

27FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Supplemental Financial Information

Except for percentages all figures are in thousands1 For the three months ended March 31 2018 distributed and undistributed earnings to restricted shares was 055 of net income and adjusted net income The amount of restricted share

forfeitures for the period presented is immaterial to the allocation of distributed and undistributed earnings2 For all periods presented dilutive shares represented contingently issuable shares

Weighted-average shares Shares Percent2

Common shares outstanding ndash Basic 78367 9945Unvested restricted common shares 431 055Total weighted-average shares outstanding 78798 10000

Common shares outstanding ndash Basic 78367 9971Effect of dilutive shares1 228 029Common shares outstanding ndash Diluted 78595 10000

Net income allocationNet income $ 57547 10000Distributed and undistributed earnings allocated to unvested restricted shares (315) -055Earnings available to common shares $ 57232 9945

Adjusted net income allocationAdjusted net income $ 56751 10000Amounts allocated to unvested restricted shares (311) -055Amounts allocated to common shares $ 56440 9945

Three Months Ended March 31 2018

Sheet1

28FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Limitations of EBITDA Adjusted EBITDA ANI Cash ROE and Net Cash Interest Margin

An investor or potential investor may find EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin important measures in evaluating our performance results of operations and financial position We use these non-US GAAP measures to supplement our US GAAP results in order to provide a more complete understanding of the factors and trends affecting our business

EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin have limitations as analytical tools and should not be viewed in isolation or as substitutes for US GAAP measures of earnings Material limitations in making the adjustments to ourearnings to calculate EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin and using these non-US GAAP measures as compared to US GAAP net income income from continuing operations and cash flows provided by or used in operations include

depreciation and amortization though not directly affecting our current cash position represent the wear and tear andor reduction in value of our aircraft which affects the aircraftrsquos availability for use and may be indicative of future needs for capital expenditures

the cash portion of income tax (benefit) provision generally represents charges (gains) which may significantly affect our financial results

elements of our interest rate derivative accounting may be used to evaluate the effectiveness of our hedging policy

hedge loss amortization charges related to Term Financing No 1 and Securitization No 1 and

adjustments required in calculating covenant ratios and compliance as that term is defined in the indenture governing our seniorunsecured notes

EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin are not alternatives to net income income from operations or cash flows provided by or used in operations as calculated and presented in accordance with US GAAP You should not rely on these non-US GAAP measures as a substitute for any such US GAAP financial measure We strongly urge you to review the reconciliations to US GAAP net income along with our consolidated financial statements included elsewhere in our Annual Report We also strongly urge you to not rely on any single financial measure to evaluate our business In addition because EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin are not measures of financial performance under US GAAP and are susceptible to varying calculations EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin as presented here may differ from and may not be comparable to similarly titled measures used by other companies

  • Slide Number 1
  • Slide Number 2
  • Slide Number 3
  • Slide Number 4
  • Slide Number 5
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
Three Months Ended March 31 2019 Three Months Ended March 31 2019
Weighted-average shares Shares Percent2 Weighted-average shares Shares Percent2
Common shares outstanding ndash Basic 74704 9942 Common shares outstanding ndash Basic 74704 9942
Unvested restricted common shares 435 058 Unvested restricted common shares 435 058
Total weighted-average shares outstanding 75138 10000 Total weighted-average shares outstanding 75138 10000
Common shares outstanding ndash Basic 74704 9924 Common shares outstanding ndash Basic 74704 9924
Effect of dilutive shares1 570 076 Effect of dilutive shares1 570 076
Common shares outstanding ndash Diluted 75274 10000 Common shares outstanding ndash Diluted 75274 10000
Net income allocation Net income allocation
Net income $ 34810 10000 Net income $ 34810 10000
Distributed and undistributed earnings allocated to unvested restricted shares (201) -058 Distributed and undistributed earnings allocated to unvested restricted shares (201) -058
Earnings available to common shares $ 34609 9942 Earnings available to common shares $ 34609 9942
Adjusted net income allocation Adjusted net income allocation
Adjusted net income $ 39616 10000 Adjusted net income $ 39616 10000
Amounts allocated to unvested restricted shares (229) -058 Amounts allocated to unvested restricted shares (229) -058
Amounts allocated to common shares $ 39387 9942 Amounts allocated to common shares $ 39387 9942
Three Months Ended March 31 2018 Three Months Ended March 31 2018
Weighted-average shares Shares Percent2 Weighted-average shares Shares Percent2
Common shares outstanding ndash Basic 78367 9945 Common shares outstanding ndash Basic 78367 9945
Unvested restricted common shares 431 055 Unvested restricted common shares 431 055
Total weighted-average shares outstanding 78798 10000 Total weighted-average shares outstanding 78798 10000
Common shares outstanding ndash Basic 78367 9971 Common shares outstanding ndash Basic 78367 9971
Effect of dilutive shares1 228 029 Effect of dilutive shares1 228 029
Common shares outstanding ndash Diluted 78595 10000 Common shares outstanding ndash Diluted 78595 10000
Net income allocation Net income allocation
Net income $ 57547 10000 Net income $ 57547 10000
Distributed and undistributed earnings allocated to unvested restricted shares (315) -055 Distributed and undistributed earnings allocated to unvested restricted shares (315) -055
Earnings available to common shares $ 57232 9945 Earnings available to common shares $ 57232 9945
Adjusted net income allocation Adjusted net income allocation
Adjusted net income $ 56751 10000 Adjusted net income $ 56751 10000
Amounts allocated to unvested restricted shares (311) -055 Amounts allocated to unvested restricted shares (311) -055
Amounts allocated to common shares $ 56440 9945 Amounts allocated to common shares $ 56440 9945
Three Months Ended March 31 2019 Three Months Ended March 31 2019
Weighted-average shares Shares Percent2 Weighted-average shares Shares Percent2
Common shares outstanding ndash Basic 74704 9942 Common shares outstanding ndash Basic 74704 9942
Unvested restricted common shares 435 058 Unvested restricted common shares 435 058
Total weighted-average shares outstanding 75138 10000 Total weighted-average shares outstanding 75138 10000
Common shares outstanding ndash Basic 74704 9924 Common shares outstanding ndash Basic 74704 9924
Effect of dilutive shares1 570 076 Effect of dilutive shares1 570 076
Common shares outstanding ndash Diluted 75274 10000 Common shares outstanding ndash Diluted 75274 10000
Net income allocation Net income allocation
Net income $ 34810 10000 Net income $ 34810 10000
Distributed and undistributed earnings allocated to unvested restricted shares (201) -058 Distributed and undistributed earnings allocated to unvested restricted shares (201) -058
Earnings available to common shares $ 34609 9942 Earnings available to common shares $ 34609 9942
Adjusted net income allocation Adjusted net income allocation
Adjusted net income $ 39616 10000 Adjusted net income $ 39616 10000
Amounts allocated to unvested restricted shares (229) -058 Amounts allocated to unvested restricted shares (229) -058
Amounts allocated to common shares $ 39387 9942 Amounts allocated to common shares $ 39387 9942
Three Months Ended March 31 2018 Three Months Ended March 31 2018
Weighted-average shares Shares Percent2 Weighted-average shares Shares Percent2
Common shares outstanding ndash Basic 78367 9945 Common shares outstanding ndash Basic 78367 9945
Unvested restricted common shares 431 055 Unvested restricted common shares 431 055
Total weighted-average shares outstanding 78798 10000 Total weighted-average shares outstanding 78798 10000
Common shares outstanding ndash Basic 78367 9971 Common shares outstanding ndash Basic 78367 9971
Effect of dilutive shares1 228 029 Effect of dilutive shares1 228 029
Common shares outstanding ndash Diluted 78595 10000 Common shares outstanding ndash Diluted 78595 10000
Net income allocation Net income allocation
Net income $ 57547 10000 Net income $ 57547 10000
Distributed and undistributed earnings allocated to unvested restricted shares (315) -055 Distributed and undistributed earnings allocated to unvested restricted shares (315) -055
Earnings available to common shares $ 57232 9945 Earnings available to common shares $ 57232 9945
Adjusted net income allocation Adjusted net income allocation
Adjusted net income $ 56751 10000 Adjusted net income $ 56751 10000
Amounts allocated to unvested restricted shares (311) -055 Amounts allocated to unvested restricted shares (311) -055
Amounts allocated to common shares $ 56440 9945 Amounts allocated to common shares $ 56440 9945
Q119 Q418 Q318 Q119 B (W) vs Q418
Average NBV for the 4th and 3rd Quarters of 2018 $ 7449957 $ 7136627 $ 6787206 $ 313330 Average NBV 44 higher Q418 to Q119
Operating and Finance Lease Revenues $ 189676 $ 192711 $ 190836 $ (3034)
Finance Lease Collections $ 5925 $ 7316 $ 9518 $ (1391)
Annualized Portfolio Yield 105 112 118 -07 Annualized yield 71bps lower
Cash Interest Expense $ 60279 $ 60348 $ 54521 $ 69
Annualized Cash Interest 32 34 32 01 Annualized cash int exp 15bps lower
Annualized Cash Net Interest Margin 73 78 86 -06 Annualized cash margin 56bps lower
Average NBV Quarterly Rental Revenue(1) Cash Interest(2) Annualized Net Cash Interest Margin(1)(2) Yield Cash Interest Expense
Q112 $ 4388008 $ 152242 $ 44969 98 139 410
Q212 $ 4542477 $ 156057 $ 48798 94 137 430
Q312 $ 4697802 $ 163630 $ 41373 104 139 352
Q412 $ 4726457 $ 163820 $ 43461 102 139 368
Q113 $ 4740161 $ 162319 $ 48591 96 137 410
Q213 $ 4840396 $ 164239 $ 44915 99 136 371
Q313 $ 4863444 $ 167876 $ 47682 99 138 392
Q413 $ 5118601 $ 176168 $ 49080 99 138 384
Q114 $ 5312651 $ 181095 $ 51685 97 136 389
Q214 $ 5721521 $ 190574 $ 48172 100 133 337
Q314 $ 5483958 $ 182227 $ 44820 100 133 327
Q414 $ 5468637 $ 181977 $ 44459 101 133 325
Q115 $ 5743035 $ 181027 $ 50235 91 126 350
Q215 $ 5967898 $ 189238 $ 51413 92 127 345
Q315 $ 6048330 $ 191878 $ 51428 93 127 340
Q415 $ 5962874 $ 188491 $ 51250 92 126 344
Q116 $ 5988076 $ 186730 $ 51815 90 125 346
Q216 $ 5920030 $ 184469 $ 55779 87 125 377
Q316 $ 6265175 $ 193909 $ 57589 87 124 368
Q416 $ 6346361 $ 196714 $ 58631 87 124 370
Q117 $ 6505355 $ 200273 $ 58839 87 123 362
Q217 $ 6512100 $ 199522 $ 55871 88 123 343
Q317 $ 5985908 $ 184588 $ 53457 88 123 357
Q417 $ 6247581 $ 187794 $ 53035 86 120 340
Q118 $ 6700223 $ 193418 $ 53978 83 115 322
Q218 $ 6721360 $ 193988 $ 53979 83 115 321
Q318 $ 6787206 $ 200354 $ 54521 86 118 321
Q418 $ 7136627 $ 200027 $ 60348 78 112 338
Q119 $ 7449957 $ 195601 $ 60279 73 105 324
Pro-forma Q119 $ 7449957 $ 211501 $ 60279 81 114 324
Average NBV Quarterly Rental Revenue1 Cash Interest2 Annualized Net Cash Interest Margin12 Yield Cash Interest Expense
Q113 $ 4740161 $ 162319 $ 48591 96 137 410
Q213 $ 4840396 $ 164239 $ 44915 99 136 371
Q313 $ 4863444 $ 167876 $ 47682 99 138 392
Q413 $ 5118601 $ 176168 $ 49080 99 138 384
Q114 $ 5312651 $ 181095 $ 51685 97 136 389
Q214 $ 5721521 $ 190574 $ 48172 100 133 337
Q314 $ 5483958 $ 182227 $ 44820 100 133 327
Q414 $ 5468637 $ 181977 $ 44459 101 133 325
Q115 $ 5743035 $ 181027 $ 50235 91 126 350
Q215 $ 5967898 $ 189238 $ 51413 92 127 345
Q315 $ 6048330 $ 191878 $ 51428 93 127 340
Q415 $ 5962874 $ 188491 $ 51250 92 126 344
Q116 $ 5988076 $ 186730 $ 51815 90 125 346
Q216 $ 5920030 $ 184469 $ 55779 87 125 377
Q316 $ 6265175 $ 193909 $ 57589 87 124 368
Q416 $ 6346361 $ 196714 $ 58631 87 124 370
Q117 $ 6505355 $ 200273 $ 58839 87 123 362
Q217 $ 6512100 $ 199522 $ 55871 88 123 343
Q317 $ 5985908 $ 184588 $ 53457 88 123 357
Q417 $ 6247581 $ 187794 $ 53035 86 120 340
Q118 $ 6700223 $ 193418 $ 53978 83 115 322
Q218 $ 6721360 $ 193988 $ 53979 83 115 321
Q318 $ 6787206 $ 200354 $ 54521 86 118 321
Q418 $ 7136627 $ 200027 $ 60348 78 112 338
Q119 $ 7449957 $ 195601 $ 60279 73 105 324
Pro-forma Q119 $ 7449957 $ 211501 $ 60279 81 114 324
NBV FE Fin Lease NBV Flight Equip + Fin Lease Lease Rentals Interest Inc Fin lease Collections on Fin Leases Total Lease Rent Collections Quarterly Lease rent Collections Cash Interest Loan and Contract Termination Fees included in Cash Interest Adj Cash Int NIM $ NIM Yield Cash Int
Month End Month End Month End Mo Avg Qtrly Avg MTD MTD QTD QTD QTD
DEC10 4065780 - 0 4065780
JAN11 3981690 - 0 3981690 4023735 - 0 47091 - 0 - 0 47091 - 0 - 0 - 0
FEB11 4051167 - 0 4051167 4016428 - 0 47264 - 0 - 0 47264 - 0 - 0 - 0
MAR11 4120309 - 0 4120309 4085738 4041967 46761 - 0 - 0 46761 141116 $ 41278 41278 99838 988
APR11 4125377 - 0 4125377 4122843 - 0 47211 - 0 - 0 47211 - 0 - 0 - 0
MAY11 4194987 - 0 4194987 4160182 - 0 47897 - 0 - 0 47897 - 0 - 0 - 0
JUN11 4099641 - 0 4099641 4147314 4143446 48248 - 0 - 0 48248 143356 $ 43217 $ 3196 40021 103335 998
JUL11 4271013 - 0 4271013 4185327 - 0 47994 - 0 - 0 47994 - 0 - 0 - 0
AUG11 4248242 - 0 4248242 4259628 - 0 49193 - 0 - 0 49193 - 0 - 0 - 0
SEP11 4196918 - 0 4196918 4222580 4222512 48704 - 0 - 0 48704 145890 $ 42066 42066 103824 984
OCT11 4430527 - 0 4430527 4313723 - 0 49054 - 0 - 0 49054 - 0 - 0 - 0
NOV11 4401782 - 0 4401782 4416155 - 0 50498 - 0 - 0 50498 - 0 - 0 - 0
DEC11 4387986 - 0 4387986 4394884 4374921 50297 - 0 - 0 50297 149848 $ 43041 43041 106807 977
JAN12 4391666 - 0 4391666 4389826 - 0 51034 - 0 - 0 51034 - 0 - 0 - 0
FEB12 4385360 - 0 4385360 4388513 - 0 49705 - 0 - 0 49705 - 0 - 0 - 0
MAR12 4386010 - 0 4386010 4385685 4388008 51503 - 0 - 0 51503 152242 $ 44969 44969 107273 978
APR12 4484956 - 0 4484956 4435483 - 0 50824 - 0 - 0 50824 - 0 - 0 - 0
MAY12 4570712 31500 4602212 4543584 - 0 51020 - 0 - 0 51020 - 0 - 0 - 0
JUN12 4604493 90024 4694518 4648365 4542477 51781 956 1476 54213 156057 $ 48798 48798 107259 944
JUL12 4572121 90739 4662860 4678689 - 0 52892 963 - 0 53855 - 0 - 0 - 0
AUG12 4665966 90332 4756298 4709579 - 0 52945 948 - 0 53893 - 0 - 0 - 0
SEP12 4532445 121533 4653978 4705138 4697802 53709 1608 565 55881 163630 $ 41373 41373 122257 1041
OCT12 4574055 120934 4694990 4674484 - 0 52277 1311 - 0 53588 - 0 - 0 - 0
NOV12 4645741 120345 4766086 4730538 - 0 52596 1321 - 0 53917 - 0 - 0 - 0
DEC12 4662661 119951 4782612 4774349 4726457 53217 1286 1811 56314 163820 $ 43461 43461 120359 1019
JAN13 4639414 119339 4758753 4770682 - 0 52957 1298 - 0 54255 - 0 - 0 - 0
FEB13 4614480 118707 4733187 4745970 - 0 51936 1277 - 0 53213 - 0 - 0 - 0
MAR13 4544773 129700 4674474 4703830 4740161 51697 1309 1845 54850 162319 $ 48591 48591 113728 960
APR13 4621392 128981 4750373 4712423 - 0 51363 1384 - 0 52747 - 0 - 0 - 0
MAY13 4915814 128237 5044051 4897212 - 0 53613 1359 - 0 54972 - 0 - 0 - 0
JUN13 4651553 127504 4779057 4911554 4840396 52942 1370 2207 56520 164239 $ 47869 $ 2954 44915 119324 986
JUL13 4668642 149932 4818574 4798816 - 0 52469 1372 - 0 53840 - 0 - 0 - 0
AUG13 4690154 149017 4839171 4828873 - 0 53339 1423 - 0 54763 - 0 - 0 - 0
SEP13 4938113 148005 5086118 4962645 4863444 55340 1327 2606 59273 167876 $ 47682 47682 120194 989
OCT13 4913184 147017 5060200 5073159 - 0 56643 1350 - 0 57993 - 0 - 0 - 0
NOV13 5011676 146076 5157752 5108976 - 0 56264 1361 - 0 57625 - 0 - 0 - 0
DEC13 5044410 145173 5189583 5173668 5118601 56367 1333 2850 60550 176168 $ 49080 49080 127088 993
JAN14 5015452 144256 5159708 5174646 - 0 58142 1337 - 0 59478 - 0 - 0 - 0
FEB14 5129035 143356 5272392 5216050 - 0 57572 1354 - 0 58926 - 0 - 0 - 0
MAR14 5679723 142400 5822123 5547257 5312651 58621 1297 2773 62691 181095 $ 51685 51685 129410 974
APR14 5605462 155551 5761013 5791568 - 0 61276 1329 - 0 62604 - 0 - 0 - 0
MAY14 5512769 154435 5667205 5714109 - 0 60998 1338 - 0 62336 - 0 - 0 - 0
JUN14 5577966 72600 5650566 5658886 5721521 60957 1231 3446 65634 190574 $ 48172 48172 142402 996
JUL14 5418990 71971 5490961 5570764 - 0 60509 484 - 0 60993 - 0 - 0 - 0
AUG14 5412453 71345 5483799 5487380 - 0 59617 488 - 0 60105 - 0 - 0 - 0
SEP14 5232940 70723 5303663 5393731 5483958 58760 491 1877 61129 182227 $ 44820 44820 137407 1002
OCT14 5340303 88360 5428663 5366163 - 0 59394 480 - 0 59874 - 0 - 0 - 0
NOV14 5374566 107667 5482233 5455448 - 0 59717 542 - 0 60259 - 0 - 0 - 0
DEC14 5579718 106651 5686369 5584301 5468637 59091 537 2216 61844 181977 $ 44459 44459 137518 1006 1331 325 134 99
JAN15 5642590 105896 5748487 5717428 - 0 59898 539 - 0 60437 - 0 - 0 - 0
FEB15 5623616 105155 5728770 5738628 - 0 58688 552 - 0 59240 - 0 - 0 - 0
MAR15 5712950 104377 5817327 5773049 5743035 58560 516 2274 61350 181027 $ 50235 50235 130792 911 1261 350
APR15 5778092 119625 5897717 5857522 - 0 60016 589 - 0 60605 - 0 - 0 - 0
MAY15 5940205 118903 6059108 5978412 - 0 61684 628 - 0 62311 - 0 - 0 - 0
JUN15 5953555 122855 6076411 6067759 5967898 63140 660 2521 66322 189238 $ 51413 51413 137825 924 1268 345
JUL15 5942037 122200 6064238 6070324 - 0 63838 625 - 0 64463 - 0 - 0 - 0
AUG15 5917660 121542 6039202 6051720 - 0 62322 623 - 0 62945 - 0 - 0 - 0
SEP15 5885807 120882 6006689 6022946 6048330 61877 620 1973 64470 191878 $ 51428 51428 140450 929 1269 340
OCT15 5829040 103074 5932114 5969402 - 0 61959 611 - 0 62570 - 0 - 0 - 0
NOV15 5801167 117861 5919028 5925571 - 0 60485 623 - 0 61108 - 0 - 0 - 0
DEC15 5867062 201211 6068273 5993651 5962874 60949 1072 2791 64812 188491 $ 51250 51250 137241 921 1264 344 127 92
JAN16 5836479 198445 6034923 6051598 - 0 60245 1141 - 0 61387 - 0 - 0 - 0
FEB16 5796230 213436 6009666 6022295 - 0 60098 1161 - 0 61259 - 0 - 0 - 0
MAR16 5558666 212336 5771002 5890334 5988076 59227 1195 3663 64085 186730 $ 53324 1509 51815 134915 901 1247 346
APR16 5654825 211354 5866179 5818591 - 0 58383 1160 - 0 59544 - 0 - 0 - 0
MAY16 5659238 265253 5924490 5895335 - 0 58787 1432 - 0 60218 - 0 - 0 - 0
JUN16 5875935 291903 6167838 6046164 5920030 58955 1582 4170 64707 184469 55779 55779 128690 870 1246 377
JUL16 5980982 290048 6271030 6219434 - 0 60301 1805 - 0 62107 - 0 - 0 - 0
AUG16 6017274 288131 6305405 6288218 - 0 60757 1744 - 0 62501 - 0 - 0 - 0
SEP16 6004489 265854 6270343 6287874 6265175 60917 1805 6580 69301 193909 57589 57589 136320 870 1238 368
OCT16 6025556 264389 6289945 6280144 - 0 61757 1413 63170 - 0 - 0 - 0
NOV16 6097520 262667 6360187 6325066 - 0 62824 1357 64181 - 0 - 0 - 0
DEC16 6246707 260853 6507560 6433874 6346361 62969 1394 5000 69363 196714 62082 3451 58631 138083 870 1240 370 124 88
JAN17 6219012 259264 6478276 6492918 - 0 63296 1359 64655 - 0
FEB17 6227957 257474 6485431 6481853 - 0 63575 1288 64863 - 0
MAR17 6297190 299969 6597159 6541295 6505355 63715 1426 5614 70755 200273 58839 58839 141434 870 1231 362
APR17 6269189 348327 6617516 6607338 64119 1814 65933
MAY17 6156371 377186 6533557 6575537 63186 2079 65265
JUN17 5818821 354474 6173295 6353426 6512100 61794 1985 4545 68324 199522 56859 988 55871 143651 882 1226 343
JUL17 5615695 352411 5968106 6070700 59464 1954 61418
AUG17 5523543 390140 5913683 5940895 56603 1917 58520
SEP17 5490164 488408 5978572 5946128 5985908 55621 2541 6488 64650 184588 54527 1070 53457 131131 876 1233 357
OCT17 5493432 549212 6042644 6010608 55282 2833 58115
NOV17 5789587 554117 6343704 6193174 56823 3248 60071
DEC17 6188469 545750 6734219 6538962 6247581 57826 3272 8511 69609 187794 53035 53035 134759 863 1202 340 122 87
JAN18 6163924 543311 6707235 6720727 59570 3212 62782
FEB18 6173766 514024 6687790 6697513 59177 3007 62184
MAR18 6143695 533373 6677067 6682429 6700223 58736 3222 6493 68451 193418 53978 53978 139440 832 1155 322
APR18 6120068 531077 6651145 6664106 58481 2936 61417
MAY18 6257826 528503 6786329 6718737 59975 3015 62990
JUN18 6249406 526738 6776144 6781236 6721360 60030 2918 6634 69582 193988 53979 53979 140009 833 1154 321 12 MONTH CALCULATION
JUL18 6261431 523491 6784922 6780533 60815 2990 63804 Yield NIM
AUG18 6250137 519066 6769203 6777062 60517 2927 63444 2014 134 99
SEP18 6321623 517221 6838844 6804023 6787206 60712 2876 9518 73106 200354 53683 -838 54521 145833 859 1181 321 2015 127 92
OCT18 6602809 515251 7118060 6978452 62875 2742 65617 2016 124 88
NOV18 6657588 512429 7170017 7144039 61402 2610 64012 2017 122 87
DEC18 6935585 469180 7404765 7287391 7136627 60405 2677 7316 70398 200027 60348 60348 139679 783 1121 338 115 83 2018 115 83
JAN19 6900489 509725 7410214 7407489 59462 2959 62421 LTM Q119 112 80
FEB19 6907294 507653 7414948 7412581 62458 2701 65158
MAR19 7138689 505964 7644653 7529800 7449957 59314 2783 5925 68022 195601 60279 60279 135322 727 1050 324 112 80
wCollections on Finance Leases 2019 2018 2017
Finance Lease Collections Finance Lease Collections Finance Lease Collections
Yield Cash Interest Net Spread Avg NBV Lease Rent Interest YTD 5925 YTD 29961 YTD 32184
Q117 1231 362 870 6505355 200273 $ 58839 Q119 5925 Q118 6493 Q117 5614
Q119 1050 324 727 7449957 195601 60279 Q219 Q218 6634 Q217 11571
-181 -038 -143 Change 145 -23 24 Q319 Q318 9518 Q317 6488
Q419 Q418 7316 Q417 8511
Yield Cash Interest Net Spread Avg NBV Lease Rent Interest Finance Lease Revenue Finance Lease Revenue Finance Lease Revenue
Q118 1155 322 832 6700223 193418 53978 Q119 8442 Q418 8029 Q417 9353
Q119 1050 324 727 7449957 195601 60279 January 2959 October 2742 October 2833
-104 001 -106 Change 112 11 117 February 2701 November 2610 November 3248
March 2783 December 2677 December 3272
Yield Cash Interest Net Spread Avg NBV Lease Rent Interest
Q418 1121 338 783 7136627 200027 60348 Collections on Finance Leases excludes $70 million of unusual payments received from KLM in Q217
Q119 1050 324 727 7449957 195601 60279
-071 -015 -056 Change 44 -22 -01
112 w$17mm added to Q119
11 Actual 1050 324 727
Revised 1141 324 818
091 091
wCollections on Finance Leases
Yield Cash Interest Net Spread
Q314 13292 3269 1002
Q316 12380 3677 870
-0911 0408 -132
Yield Cash Interest Net Spread
Q315 12690 3401 929
Q316 12380 3677 870
-0310 0276 -059
Yield Cash Interest Net Spread
Q216 12464 3769 870
Q316 12380 3677 870
-0084 -0092 001
Old Format
Yield Cash Interest Net Spread
Q314 13221 3312 991
Q316 12173 3852 832
-1047 -0540 -159
Yield Cash Interest Net Spread
Q315 12691 3471 922
Q316 12173 3852 832
-0518 -0381 -090
Yield Cash Interest Net Spread
Q216 12409 3930 8479
Q316 12173 3852 8321
Change -0236 0078 -0159
For the Three Months Ended March 31
2019 2018
Net Income $ 34810 $ 57547
(Gain) loss on mark-to-market of interest rate derivative contracts(1) 2080 (3174)
Non-cash share-based payment expense(2) 2726 2378
Adjusted Net Income $ 39616 $ 56751
For the Three Months Ended March 31
2019 2018
Net Income $ 34810 $ 57547
Loss on mark-to-market of interest rate derivative contracts(1) 2080 (3174)
Non-cash share-based payment expense(2) 2726 2378
Adjusted Net Income $ 39616 $ 56751
Three Mos Ended Dec 31
2019 2018
(Dollars in thousands)
Net income $ 34810 $ 57547
Depreciation 84735 75002
Amortization of lease premiums discounts and incentives 5711 3128
Interest net 63463 57108
Income tax provision 3098 (844)
EBITDA 191817 191941
Adjustments
Equity share of joint venture impairment 2724 -
Non-cash share based payment expense 2726 2378
(Gain) loss on MTM of interest rate derivative contracts 2080 (3174)
Adjusted EBITDA $ 199347 $ 191145
Three Mos Ended Dec 31
2019 2018
(Dollars in thousands)
Net income $ 34810 $ 57547
Depreciation 84735 75002
Amortization of lease premiums discounts and incentives 5711 3128
Interest net 63463 57108
Income tax provision 3098 (844)
EBITDA 191817 191941
Adjustments
Equity share of joint venture impairment 2724 - 0
Non-cash share based payment expense 2726 2378
(Gain) loss on MTM of interest rate derivative contracts 2080 (3174)
Adjusted EBITDA $ 199347 $ 191145

8FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Robust Portfolio Management with an Active Asset Strategy

274 aircraft owned and managed at Q119

Since 2015

Acquired 227 aircraft

Sold 116 aircraft

Generated $201 million gains from sales and net proceeds of $25 billion

46

6068

39

14

31 3037

14

4

0

10

20

30

40

50

60

70

80

2015 2016 2017 2018 Q119

Num

ber o

f airc

raft

Purchases Sales

9FIRST QUARTER 2019 EARNINGS CALLbull 05022019

73 of the fleet now consists of more liquidnarrow-body aircraft

versus 36 five years ago

36

49

15

NBs WBs Freighters Classics

73

23

4

NBs WBs Freighters

9336

23

NBs WBs Freighters Classics

229

26

4

NBs WBs Freighters

Fleet EvolutionSignificant Fleet Risk Reduction

Since Q115 the number of wide-body freighter

and classic aircraft declined from a total of 59 aircraft to 30 aircraft

Q115 Aircraft Count Q119 Aircraft Count

Q115 Fleet Type (By NBV) Q119 Fleet Type (By NBV)

Aircastle continues to add in-demand narrow-bodies to the Companyrsquos fleet

10FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Portfolio Metrics

Since Q115 expanded owned fleet at a compound annual growth rate of 71

$ in billions Q115 Q119 Q119 vs Q115

Flight Equipment Held for Lease1 $58 $76 + $18

Wtd Avg Fleet Age (years)2 83 94 + 11

Wtd Avg Lease Term (years)2 56 45 - 11

Managed JV Aircraft1 $05 $07 + $02

1 Calculated using NBV at period end2 Weighted average by NBV

NBV as used throughout this presentation includes the net book value of flight equipment held for lease and the net investment in direct financing and sales-type leases

11FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Diversified Customer Base with Broad Geographic Distribution

86 airline customers in 47countries across the globe

Most top customers are large flag carriers and leading LCCs

Balanced distribution of the aircraft fleet by geographic region

Asia represents 37 of portfolio NBV followed by Europe at 29

South America represents 10 North America 9

Top Ten Lessees of NBV1 per

customer Customer Country Aircraft

gt6 IndiGo India 17

3-6

Lion Air Indonesia 11

LATAM Chile 3

TAP Portugal Portugal 8

Iberia Spain 15

SAA SouthAfrica 4

easyJet UnitedKingdom 20

Jeju Air SouthKorea 9

lt3Aerolineas Argentinas Argentina 5

Interjet Mexico 11

1 As of March 31 2019

Top Ten Countries

Country AC of NBV1

India 28 122

Indonesia 15 66

Russia 11 60

United Kingdom 30 52

South Korea 14 51

Portugal 8 45

Chile 3 44

USA 15 42

Mexico 16 42

Spain 16 41

12FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Leasing Activity and Portfolio Performance

Note Aircraft on-lease days as a percent of total days in period weighted by NBV

937 utilization during Q119 was below trend primarily due to the bankruptcies of Avianca Brazil and Jet Airways

We expect these aircraft to return to service in mid Q219 with utilization to begin normalizing

Three aircraft remaining to be sold or placed in 2019 represents 15 of NBV

Utilization Performance

Utilization has averaged 988 since Q115

80

82

84

86

88

90

92

94

96

98

100

Q1

15

Q1

16

Q1

17

Q1

18

Q1

19

13FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Rental Yields and Net Cash Interest Margins

Approximately 85bps of the reduction reflects unrecognized rental revenue from AviancaBrazil and Jet Airways

105 lease rental yield 12 and 73 net cash interest margin1

114 pro-forma3 lease rental yield12 81 and net cash interest margin13

We expect the net cash interest margin to rebound in the second half of 2019 as the Avianca Brazil and Jet Airways aircraft return to revenue service

0

2

4

6

8

10

12

14

Q1

15

Q2

15

Q3

15

Q4

15

Q1

16

Q2

16

Q3

16

Q4

16

Q1

17

Q2

17

Q3

17

Q4

17

Q1

18

Q2

18

Q3

18

Q4

18

Q1

19

Pro-

form

aQ

119

Lease Rental Yield Net Cash Interest Margin

105

73

1 Refer to the selected financial Information accompanying this presentation for a reconciliation of GAAP to Non-GAAP numbers

2 Lease Rental Yield = Operating and finance lease rental revenue plus direct financing and sales-typelease collections average monthly NBV including direct financing and sales-type leases for the period calculated on a quarterly basis annualized

3 Adds back $159 million of lease rental revenue in Q119 to show the impact of the bankruptcies of Avianca Brazil and Jet Airways on Lease Rental Yield and Net Cash Interest Margin

1 2 13

Pro-forma 23

114

Pro-forma 13

81

14FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Cash ROE Performance

Q119 118

AVG 140

Trailing twelve month Cash ROE1 was 118 versus 160 a year ago

GAAP ROE of 114

Cash flow from operations of $5100 million was $248million lower for LTM ended Q119 versus comparable period a year earlier

Q119 Pro-forma Cash ROE including unrecognized rental revenue of $159 million associated with Avianca Brazil and Jet Airways bankruptcies approximates 1262

1 Refer to the selected financial Information accompanying this presentation for a reconciliation of GAAP to Non-GAAP numbers

2 Adds $159 million of lease rental revenue to the last twelve months Cash Flow From Operations to show the estimated impact of the bankruptcies of AviancaBrazil and Jet Airways on Cash ROE

0

2

4

6

8

10

12

14

16

18

Q1

15

Q2

15

Q3

15

Q4

15

Q1

16

Q2

16

Q3

16

Q4

16

Q1

17

Q2

17

Q3

17

Q4

17

Q1

18

Q2

18

Q3

18

Q4

18

Q1

19

Cash

Ret

urn

on A

vera

ge S

hare

hold

errsquos

Equ

ity

15FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Q119 Capital Structure

Strong liquidity profile and low financial leverage minimal forward commitments

Net debt to equity of 24x84 of total debt was unsecured at quarter-end

Average remaining life of debt is 32 years$500 million note matures in 2019

$705 million in available revolver capacity $375 million drawn from a total of $108 billionUnrestricted cash of $93 million

$63 billion of unencumbered flight equipment ndash 228 aircraft

16FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Selected Financial Guidance Elements for Q219

Guidance Item Q219

Lease rental revenue1 $186 - $190

Direct financing and sales-type lease revenue $8 - $9

Amortization of lease premiums discounts and incentives $(5) - $(6)

Maintenance revenue2 $16 - $20

Gain on sale $4 - $8

Depreciation $87 - $90

Interest net $66 - $69

SGampA3 $18 - $19

Full year effective tax rate 7 - 9

1 Reflects the return to service of Avianca Brazil and Jet Airways aircraft commencing in Q219 2 Includes $101M of net maintenance revenue (maintenance reserves net of a transactional impairment) in connection with the early return of seven aircraft from Jet Airways3 Includes $32M of non-cash share based payment expense

17FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Appendix

18FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Q119 Capital Structure amp Liquidity Summary

Note The debt totals in the above table do not include debt issuance costs or discounts which are reflected in the net debt totals that are displayed on the consolidated balance sheet

Aircastles Capital Structure

As of Mar 31 2019 As of Dec 31 2018 As of Dec 31 2017($ in millions)Unrestricted cash and cash equivalents $ 93 $ 153 $ 212 Debt O S Rate1 O S Rate1 O S Rate1

ECA Term Financings 179 358 189 358 227 359Bank Financings 603 464 620 473 635 368

Total Secured Debt 783 440 809 446 863 365

Senior Notes due 2018 - - - - 400 463Senior Notes due 2019 500 625 500 625 500 625Senior Notes due 2020 300 763 300 763 300 763Senior Notes due 2021 500 513 500 513 500 513Senior Notes due 2022 500 550 500 550 500 550Senior 500 Notes due 2023 500 500 500 500 500 500Senior 440 Notes due 2023 650 440 650 440 - -Senior Notes due 2024 500 413 500 413 500 413Bank Revolvers 375 399 425 401 175 368Other Unsecured Bank Financings 335 424 120 434 120 359

Total Unsecured Debt 4160 506 3995 510 3495 521

Total Debt and Weighted Avg Rate 4943 496 4804 499 4358 490Shareholdersrsquo equity 2013 2009 1908 Total capitalization $ 6956 $ 6812 $ 6265

Net debt to equity 24 x 23 x 22 xUnsecured debt to total debt 84 83 80

19FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Supplemental Financial Information

Three Months Ended

March 31in thousands except per share amounts 2019 2018

Revenues $ 213927 $ 202680

EBITDA $ 191817 $ 191941

Adjusted EBITDA $ 199347 $ 191145

Net income $ 34810 $ 57547Net income allocable to common shares $ 34609 $ 57232

Per common share - Basic $ 046 $ 073Per common share - Diluted $ 046 $ 073

Adjusted net income $ 39616 $ 56751Adjusted net income allocable to common shares $ 39387 $ 56440

Per common share - Basic $ 053 $ 072Per common share - Diluted $ 052 $ 072

Basic common shares outstanding 74704 78367Diluted common shares outstanding 75274 78595

20FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Reconciliation of GAAP to Non-GAAP Measures ndash EBITDA and Adjusted EBITDA

We define EBITDA as income (loss) from continuing operations before income taxes interest expense and depreciation and amortization We use EBITDA to assess our consolidated financial and operating performance and we believe this non-US GAAP measure is helpful in identifying trends in our performance

This measure provides an assessment of controllable expenses and affords management the ability to make decisions which are expected to facilitate meeting current financial goals as well as achieving optimal financial performance It provides an indicator for management to determine if adjustments to current spending decisions are needed

EBITDA provides us with a measure of operating performance because it assists us in comparing our operating performance on a consistent basis as it removes the impact of our capital structure (primarily interest charges on our outstanding debt) and asset base (primarily depreciation and amortization) from our operating results

Accordingly this metric measures our financial performance based on operational factors that management can impact in the short-term namely the cost structure or expenses of the organization EBITDA is one of the metrics used by senior management and the board of directors to review the consolidated financial performance of our business

We define Adjusted EBITDA as EBITDA (as defined above) further adjusted to give effect to adjustments required in calculating covenant ratios and compliance as that term is defined in the indenture governing our senior unsecured notes Adjusted EBITDA is a material component of these covenants

2019 2018

Net income $ 34810 $ 57547

Depreciation 84735 75002

Amortization of lease premiums discounts and incentives 5711 3128

Interest net 63463 57108

Income tax provision 3098 (844)

EBITDA 191817 191941

Adjustments

Equity share of joint venture impairment 2724 -

Non-cash share based payment expense 2726 2378

(Gain) loss on MTM of interest rate derivative contracts 2080 (3174)

Adjusted EBITDA $ 199347 $ 191145

Three Mos Ended Dec 31

(Dollars in thousands)

Sheet1

Sheet2

Sheet3

21FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Reconciliation of GAAP to Non-GAAP Measures ndash Adjusted Net Income

Management believes that ANI when viewed in conjunction with the Companyrsquos results under US GAAP and the above reconciliation provides useful information about operating and period-over-period performance and provides additional information that is useful for evaluating the underlying operating performance of our business without regard to periodic reporting elements related to interest rate derivative accounting changes related to refinancing activity and non-cash share based payment expense

1 Included in Other income (expense)2 Included in Selling general and administrative expenses

Net Income Loss on mark-to-market of interest rate derivative contracts(1)

Non-cash share-based payment expense(2)

Adjusted Net Income2726 2378

39616$ 56751$

For the Three Months Ended March 31

2019 2018

34810$ 57547$ 2080 (3174)

Sheet1

22FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Reconciliation of GAAP to non-GAAP Measures - Cash Earnings and Cash ROE

Note LTM Average Shareholdersrsquo Equity is the average of the most recent five quarters period end Shareholdersrsquo Equity Management believes that the cash return on equity metric (ldquoCash ROErdquo) when viewed in conjunction with the Companyrsquos results under US GAAP and the above reconciliation provide useful information about operating and period-over-period performance and provide additional information that is useful for evaluating the underlying operating performance of our business without regard to periodic reporting impacts related to non-cash revenue and expense items and interest rate derivative accounting while recognizing the depreciating nature of our assets To reflect the expected sale of the assets in one of our joint ventures and to simplify the presentation of Cash ROE we are no longer adjusting for joint venture distributions in excess ofless than joint venture earnings recorded under the equity method of investment accounting

Pro-forma Q119 estimates the impact of the Avianca Brazil and Jet Airways bankruptcies on Cash ROE by adding $159 million to Cash Flow From Operations in the first quarter of 2019

Dollars in thousands

LTM Ended CFFO +Gain on Sale

of Eqt - Deprec =Cash

Earnings

Average Shareholders

Equity

Trailing 12 Month Cash

ROEQ115 $498536 $28289 $300284 $226541 $1682857 135Q116 $525569 $64597 $320584 $269582 $1769981 152Q117 $499768 $27052 $307743 $219077 $1804573 121Q118 $534771 $60176 $294492 $300455 $1881633 160Q119 $510008 $43000 $320583 $232425 $1976235 118

Pro-forma Q119 $525899 $43000 $320583 $248316 $1976235 126

23FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Net Cash Interest Margin Calculation

1 We define net cash interest margin as lease rentals from operating leases interest income and cash collections from direct financing and sales-type leases minus interest on borrowings net settlements on interest rate derivatives and other liabilities adjusted for loan termination payments divided by the average net book of flight equipment (which includes net investment in direct financing and sales-type leases) for the period calculated on a quarterly and annualized basis The second quarter of 2017 excludes a non-recurring $70 million accelerated collection received from a lessee in connection with a finance lease

2 Excludes loan termination payments of $15 million and $35 million in the first quarter and fourth quarter of 2016 respectively and loan termination payments of $10 million in both the second and third quarters of 2017 and an $08 million loan termination gain in the third quarter of 2018

Management believes that net cash interest margin when viewed in conjunction with the Companyrsquos results under US GAAP and the above reconciliation provides useful information about the effective deployment of our capital in the context of the yield on our aircraft assets the utilization of those assets by our lessees and our ability to borrow efficiently

Except for percentages all figures are $ in thousands

3 Pro-forma Q119 estimates the impact of the Avianca Brazil and Jet Airways bankruptcies on annualized net cash interest margin by adding $159 million to quarterly rental revenue in the first quarter of 2019

Average NBV

Quarterly Rental

Revenue1 Cash Interest2

Annualized Net Cash Interest

Margin12

Q115 5743035$ 181027$ 50235$ 91Q215 5967898$ 189238$ 51413$ 92Q315 6048330$ 191878$ 51428$ 93Q415 5962874$ 188491$ 51250$ 92Q116 5988076$ 186730$ 51815$ 90Q216 5920030$ 184469$ 55779$ 87Q316 6265175$ 193909$ 57589$ 87Q416 6346361$ 196714$ 58631$ 87Q117 6505355$ 200273$ 58839$ 87Q217 6512100$ 199522$ 55871$ 88Q317 5985908$ 184588$ 53457$ 88Q417 6247581$ 187794$ 53035$ 86Q118 6700223$ 193418$ 53978$ 83Q218 6721360$ 193988$ 53979$ 83Q318 6787206$ 200354$ 54521$ 86Q418 7136627$ 200027$ 60348$ 78Q119 7449957$ 195601$ 60279$ 73

Pro-forma Q119 7449957$ 211501$ 60279$ 81 33

Summary

Data

Chart in Powerpoint

Chart in Press Release

TABLE

24FIRST QUARTER 2019 EARNINGS CALLbull 05022019

As part of the Companyrsquos adoption of ASC 842 we were required to reclassify collections on direct financing and sales-type leases on our Consolidated Statement of Cash Flows for the three months ended March 31 2019 The presentation for the three months ended March 31 2018 has also been reclassified to conform to the current period presentation

Reclassification of Collections on Direct Financing and Sales-Type Leases

Three Months Ended March 31 2018

Net cash and restricted cash provided by operating activities as previously reported $142412

Collections on direct financing and sales-type leases 6493

Net cash and restricted cash provided by operating activities $148905

25FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Book Value Per Share Calculation

As of Mar 31Shares Issued and Outstanding (000)

Shareholders Equity ($000)

Book Value Per Share Change

2015 81181 $1753552 $2160 172016 78811 $1770884 $2247 402017 78718 $1856084 $2358 492018 78539 $1937454 $2467 462019 75078 $2012939 $2681 87

Q115-Q119 CAGR 56

26FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Supplemental Financial Information

Except for percentages all figures are in thousands1 For the three months ended March 31 2019 distributed and undistributed earnings to restricted shares was 058 of net income and adjusted net income The amount of restricted share

forfeitures for the period presented is immaterial to the allocation of distributed and undistributed earnings2 For all periods presented dilutive shares represented contingently issuable shares

Weighted-average shares Shares Percent2

Common shares outstanding ndash Basic 74704 9942Unvested restricted common shares 435 058Total weighted-average shares outstanding 75138 10000

Common shares outstanding ndash Basic 74704 9924Effect of dilutive shares1 570 076Common shares outstanding ndash Diluted 75274 10000

Net income allocationNet income $ 34810 10000Distributed and undistributed earnings allocated to unvested restricted shares (201) -058Earnings available to common shares $ 34609 9942

Adjusted net income allocationAdjusted net income $ 39616 10000Amounts allocated to unvested restricted shares (229) -058Amounts allocated to common shares $ 39387 9942

Three Months Ended March 31 2019

Sheet1

27FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Supplemental Financial Information

Except for percentages all figures are in thousands1 For the three months ended March 31 2018 distributed and undistributed earnings to restricted shares was 055 of net income and adjusted net income The amount of restricted share

forfeitures for the period presented is immaterial to the allocation of distributed and undistributed earnings2 For all periods presented dilutive shares represented contingently issuable shares

Weighted-average shares Shares Percent2

Common shares outstanding ndash Basic 78367 9945Unvested restricted common shares 431 055Total weighted-average shares outstanding 78798 10000

Common shares outstanding ndash Basic 78367 9971Effect of dilutive shares1 228 029Common shares outstanding ndash Diluted 78595 10000

Net income allocationNet income $ 57547 10000Distributed and undistributed earnings allocated to unvested restricted shares (315) -055Earnings available to common shares $ 57232 9945

Adjusted net income allocationAdjusted net income $ 56751 10000Amounts allocated to unvested restricted shares (311) -055Amounts allocated to common shares $ 56440 9945

Three Months Ended March 31 2018

Sheet1

28FIRST QUARTER 2019 EARNINGS CALLbull 05022019

Limitations of EBITDA Adjusted EBITDA ANI Cash ROE and Net Cash Interest Margin

An investor or potential investor may find EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin important measures in evaluating our performance results of operations and financial position We use these non-US GAAP measures to supplement our US GAAP results in order to provide a more complete understanding of the factors and trends affecting our business

EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin have limitations as analytical tools and should not be viewed in isolation or as substitutes for US GAAP measures of earnings Material limitations in making the adjustments to ourearnings to calculate EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin and using these non-US GAAP measures as compared to US GAAP net income income from continuing operations and cash flows provided by or used in operations include

depreciation and amortization though not directly affecting our current cash position represent the wear and tear andor reduction in value of our aircraft which affects the aircraftrsquos availability for use and may be indicative of future needs for capital expenditures

the cash portion of income tax (benefit) provision generally represents charges (gains) which may significantly affect our financial results

elements of our interest rate derivative accounting may be used to evaluate the effectiveness of our hedging policy

hedge loss amortization charges related to Term Financing No 1 and Securitization No 1 and

adjustments required in calculating covenant ratios and compliance as that term is defined in the indenture governing our seniorunsecured notes

EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin are not alternatives to net income income from operations or cash flows provided by or used in operations as calculated and presented in accordance with US GAAP You should not rely on these non-US GAAP measures as a substitute for any such US GAAP financial measure We strongly urge you to review the reconciliations to US GAAP net income along with our consolidated financial statements included elsewhere in our Annual Report We also strongly urge you to not rely on any single financial measure to evaluate our business In addition because EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin are not measures of financial performance under US GAAP and are susceptible to varying calculations EBITDA Adjusted EBITDA ANI Cash Earnings Cash ROE and Net Cash Interest Margin as presented here may differ from and may not be comparable to similarly titled measures used by other companies

  • Slide Number 1
  • Slide Number 2
  • Slide Number 3
  • Slide Number 4
  • Slide Number 5
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
Three Months Ended March 31 2019 Three Months Ended March 31 2019
Weighted-average shares Shares Percent2 Weighted-average shares Shares Percent2
Common shares outstanding ndash Basic 74704 9942 Common shares outstanding ndash Basic 74704 9942
Unvested restricted common shares 435 058 Unvested restricted common shares 435 058
Total weighted-average shares outstanding 75138 10000 Total weighted-average shares outstanding 75138 10000
Common shares outstanding ndash Basic 74704 9924 Common shares outstanding ndash Basic 74704 9924
Effect of dilutive shares1 570 076 Effect of dilutive shares1 570 076
Common shares outstanding ndash Diluted 75274 10000 Common shares outstanding ndash Diluted 75274 10000
Net income allocation Net income allocation
Net income $ 34810 10000 Net income $ 34810 10000
Distributed and undistributed earnings allocated to unvested restricted shares (201) -058 Distributed and undistributed earnings allocated to unvested restricted shares (201) -058
Earnings available to common shares $ 34609 9942 Earnings available to common shares $ 34609 9942
Adjusted net income allocation Adjusted net income allocation
Adjusted net income $ 39616 10000 Adjusted net income $ 39616 10000
Amounts allocated to unvested restricted shares (229) -058 Amounts allocated to unvested restricted shares (229) -058
Amounts allocated to common shares $ 39387 9942 Amounts allocated to common shares $ 39387 9942
Three Months Ended March 31 2018 Three Months Ended March 31 2018
Weighted-average shares Shares Percent2 Weighted-average shares Shares Percent2
Common shares outstanding ndash Basic 78367 9945 Common shares outstanding ndash Basic 78367 9945
Unvested restricted common shares 431 055 Unvested restricted common shares 431 055
Total weighted-average shares outstanding 78798 10000 Total weighted-average shares outstanding 78798 10000
Common shares outstanding ndash Basic 78367 9971 Common shares outstanding ndash Basic 78367 9971
Effect of dilutive shares1 228 029 Effect of dilutive shares1 228 029
Common shares outstanding ndash Diluted 78595 10000 Common shares outstanding ndash Diluted 78595 10000
Net income allocation Net income allocation
Net income $ 57547 10000 Net income $ 57547 10000
Distributed and undistributed earnings allocated to unvested restricted shares (315) -055 Distributed and undistributed earnings allocated to unvested restricted shares (315) -055
Earnings available to common shares $ 57232 9945 Earnings available to common shares $ 57232 9945
Adjusted net income allocation Adjusted net income allocation
Adjusted net income $ 56751 10000 Adjusted net income $ 56751 10000
Amounts allocated to unvested restricted shares (311) -055 Amounts allocated to unvested restricted shares (311) -055
Amounts allocated to common shares $ 56440 9945 Amounts allocated to common shares $ 56440 9945
Three Months Ended March 31 2019 Three Months Ended March 31 2019
Weighted-average shares Shares Percent2 Weighted-average shares Shares Percent2
Common shares outstanding ndash Basic 74704 9942 Common shares outstanding ndash Basic 74704 9942
Unvested restricted common shares 435 058 Unvested restricted common shares 435 058
Total weighted-average shares outstanding 75138 10000 Total weighted-average shares outstanding 75138 10000
Common shares outstanding ndash Basic 74704 9924 Common shares outstanding ndash Basic 74704 9924
Effect of dilutive shares1 570 076 Effect of dilutive shares1 570 076
Common shares outstanding ndash Diluted 75274 10000 Common shares outstanding ndash Diluted 75274 10000
Net income allocation Net income allocation
Net income $ 34810 10000 Net income $ 34810 10000
Distributed and undistributed earnings allocated to unvested restricted shares (201) -058 Distributed and undistributed earnings allocated to unvested restricted shares (201) -058
Earnings available to common shares $ 34609 9942 Earnings available to common shares $ 34609 9942
Adjusted net income allocation Adjusted net income allocation
Adjusted net income $ 39616 10000 Adjusted net income $ 39616 10000
Amounts allocated to unvested restricted shares (229) -058 Amounts allocated to unvested restricted shares (229) -058
Amounts allocated to common shares $ 39387 9942 Amounts allocated to common shares $ 39387 9942
Three Months Ended March 31 2018 Three Months Ended March 31 2018
Weighted-average shares Shares Percent2 Weighted-average shares Shares Percent2
Common shares outstanding ndash Basic 78367 9945 Common shares outstanding ndash Basic 78367 9945
Unvested restricted common shares 431 055 Unvested restricted common shares 431 055
Total weighted-average shares outstanding 78798 10000 Total weighted-average shares outstanding 78798 10000
Common shares outstanding ndash Basic 78367 9971 Common shares outstanding ndash Basic 78367 9971
Effect of dilutive shares1 228 029 Effect of dilutive shares1 228 029
Common shares outstanding ndash Diluted 78595 10000 Common shares outstanding ndash Diluted 78595 10000
Net income allocation Net income allocation
Net income $ 57547 10000 Net income $ 57547 10000
Distributed and undistributed earnings allocated to unvested restricted shares (315) -055 Distributed and undistributed earnings allocated to unvested restricted shares (315) -055
Earnings available to common shares $ 57232 9945 Earnings available to common shares $ 57232 9945
Adjusted net income allocation Adjusted net income allocation
Adjusted net income $ 56751 10000 Adjusted net income $ 56751 10000
Amounts allocated to unvested restricted shares (311) -055 Amounts allocated to unvested restricted shares (311) -055
Amounts allocated to common shares $ 56440 9945 Amounts allocated to common shares $ 56440 9945
Q119 Q418 Q318 Q119 B (W) vs Q418
Average NBV for the 4th and 3rd Quarters of 2018 $ 7449957 $ 7136627 $ 6787206 $ 313330 Average NBV 44 higher Q418 to Q119
Operating and Finance Lease Revenues $ 189676 $ 192711 $ 190836 $ (3034)
Finance Lease Collections $ 5925 $ 7316 $ 9518 $ (1391)
Annualized Portfolio Yield 105 112 118 -07 Annualized yield 71bps lower
Cash Interest Expense $ 60279 $ 60348 $ 54521 $ 69
Annualized Cash Interest 32 34 32 01 Annualized cash int exp 15bps lower
Annualized Cash Net Interest Margin 73 78 86 -06 Annualized cash margin 56bps lower
Average NBV Quarterly Rental Revenue(1) Cash Interest(2) Annualized Net Cash Interest Margin(1)(2) Yield Cash Interest Expense
Q112 $ 4388008 $ 152242 $ 44969 98 139 410
Q212 $ 4542477 $ 156057 $ 48798 94 137 430
Q312 $ 4697802 $ 163630 $ 41373 104 139 352
Q412 $ 4726457 $ 163820 $ 43461 102 139 368
Q113 $ 4740161 $ 162319 $ 48591 96 137 410
Q213 $ 4840396 $ 164239 $ 44915 99 136 371
Q313 $ 4863444 $ 167876 $ 47682 99 138 392
Q413 $ 5118601 $ 176168 $ 49080 99 138 384
Q114 $ 5312651 $ 181095 $ 51685 97 136 389
Q214 $ 5721521 $ 190574 $ 48172 100 133 337
Q314 $ 5483958 $ 182227 $ 44820 100 133 327
Q414 $ 5468637 $ 181977 $ 44459 101 133 325
Q115 $ 5743035 $ 181027 $ 50235 91 126 350
Q215 $ 5967898 $ 189238 $ 51413 92 127 345
Q315 $ 6048330 $ 191878 $ 51428 93 127 340
Q415 $ 5962874 $ 188491 $ 51250 92 126 344
Q116 $ 5988076 $ 186730 $ 51815 90 125 346
Q216 $ 5920030 $ 184469 $ 55779 87 125 377
Q316 $ 6265175 $ 193909 $ 57589 87 124 368
Q416 $ 6346361 $ 196714 $ 58631 87 124 370
Q117 $ 6505355 $ 200273 $ 58839 87 123 362
Q217 $ 6512100 $ 199522 $ 55871 88 123 343
Q317 $ 5985908 $ 184588 $ 53457 88 123 357
Q417 $ 6247581 $ 187794 $ 53035 86 120 340
Q118 $ 6700223 $ 193418 $ 53978 83 115 322
Q218 $ 6721360 $ 193988 $ 53979 83 115 321
Q318 $ 6787206 $ 200354 $ 54521 86 118 321
Q418 $ 7136627 $ 200027 $ 60348 78 112 338
Q119 $ 7449957 $ 195601 $ 60279 73 105 324
Pro-forma Q119 $ 7449957 $ 211501 $ 60279 81 114 324
Average NBV Quarterly Rental Revenue1 Cash Interest2 Annualized Net Cash Interest Margin12 Yield Cash Interest Expense
Q113 $ 4740161 $ 162319 $ 48591 96 137 410
Q213 $ 4840396 $ 164239 $ 44915 99 136 371
Q313 $ 4863444 $ 167876 $ 47682 99 138 392
Q413 $ 5118601 $ 176168 $ 49080 99 138 384
Q114 $ 5312651 $ 181095 $ 51685 97 136 389
Q214 $ 5721521 $ 190574 $ 48172 100 133 337
Q314 $ 5483958 $ 182227 $ 44820 100 133 327
Q414 $ 5468637 $ 181977 $ 44459 101 133 325
Q115 $ 5743035 $ 181027 $ 50235 91 126 350
Q215 $ 5967898 $ 189238 $ 51413 92 127 345
Q315 $ 6048330 $ 191878 $ 51428 93 127 340
Q415 $ 5962874 $ 188491 $ 51250 92 126 344
Q116 $ 5988076 $ 186730 $ 51815 90 125 346
Q216 $ 5920030 $ 184469 $ 55779 87 125 377
Q316 $ 6265175 $ 193909 $ 57589 87 124 368
Q416 $ 6346361 $ 196714 $ 58631 87 124 370
Q117 $ 6505355 $ 200273 $ 58839 87 123 362
Q217 $ 6512100 $ 199522 $ 55871 88 123 343
Q317 $ 5985908 $ 184588 $ 53457 88 123 357
Q417 $ 6247581 $ 187794 $ 53035 86 120 340
Q118 $ 6700223 $ 193418 $ 53978 83 115 322
Q218 $ 6721360 $ 193988 $ 53979 83 115 321
Q318 $ 6787206 $ 200354 $ 54521 86 118 321
Q418 $ 7136627 $ 200027 $ 60348 78 112 338
Q119 $ 7449957 $ 195601 $ 60279 73 105 324
Pro-forma Q119 $ 7449957 $ 211501 $ 60279 81 114 324
NBV FE Fin Lease NBV Flight Equip + Fin Lease Lease Rentals Interest Inc Fin lease Collections on Fin Leases Total Lease Rent Collections Quarterly Lease rent Collections Cash Interest Loan and Contract Termination Fees included in Cash Interest Adj Cash Int NIM $ NIM Yield Cash Int
Month End Month End Month End Mo Avg Qtrly Avg MTD MTD QTD QTD QTD
DEC10 4065780 - 0 4065780
JAN11 3981690 - 0 3981690 4023735 - 0 47091 - 0 - 0 47091 - 0 - 0 - 0
FEB11 4051167 - 0 4051167 4016428 - 0 47264 - 0 - 0 47264 - 0 - 0 - 0
MAR11 4120309 - 0 4120309 4085738 4041967 46761 - 0 - 0 46761 141116 $ 41278 41278 99838 988
APR11 4125377 - 0 4125377 4122843 - 0 47211 - 0 - 0 47211 - 0 - 0 - 0
MAY11 4194987 - 0 4194987 4160182 - 0 47897 - 0 - 0 47897 - 0 - 0 - 0
JUN11 4099641 - 0 4099641 4147314 4143446 48248 - 0 - 0 48248 143356 $ 43217 $ 3196 40021 103335 998
JUL11 4271013 - 0 4271013 4185327 - 0 47994 - 0 - 0 47994 - 0 - 0 - 0
AUG11 4248242 - 0 4248242 4259628 - 0 49193 - 0 - 0 49193 - 0 - 0 - 0
SEP11 4196918 - 0 4196918 4222580 4222512 48704 - 0 - 0 48704 145890 $ 42066 42066 103824 984
OCT11 4430527 - 0 4430527 4313723 - 0 49054 - 0 - 0 49054 - 0 - 0 - 0
NOV11 4401782 - 0 4401782 4416155 - 0 50498 - 0 - 0 50498 - 0 - 0 - 0
DEC11 4387986 - 0 4387986 4394884 4374921 50297 - 0 - 0 50297 149848 $ 43041 43041 106807 977
JAN12 4391666 - 0 4391666 4389826 - 0 51034 - 0 - 0 51034 - 0 - 0 - 0
FEB12 4385360 - 0 4385360 4388513 - 0 49705 - 0 - 0 49705 - 0 - 0 - 0
MAR12 4386010 - 0 4386010 4385685 4388008 51503 - 0 - 0 51503 152242 $ 44969 44969 107273 978
APR12 4484956 - 0 4484956 4435483 - 0 50824 - 0 - 0 50824 - 0 - 0 - 0
MAY12 4570712 31500 4602212 4543584 - 0 51020 - 0 - 0 51020 - 0