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Waha profits rise 43% on increased AerCap returns

February 5, 2014

Assets increase 18% to reach Dh5.24b up from Dh4.44b Waha Capital earned a net profit of Dh306.4 million for 2013, showing a growth of 43 per cent a year-on-year driven by increased returns from New York -listed aircraft leasing company AerCap Holdings and other ventures. Assets increased 18 percent as of 31 December, 2013 to reach Dh5.24 billion, up from Dh 4.44 billion a year earlier. Hussain Jasim Al Nowais , Chairman of Waha Capital , said: "Our strong track record helps position Waha Capital as the investment partner of choice in the region." Salem Rashid Al Noaimi , chief executive officer and managing director, Waha Capital , said: "Our return on equity is extremely encouraging, given the historical uncertainty in the global economy, and compares favourably with our peers.'' New York -listed AerCap Holdings NV , in which Waha Capital owns a 26.3 per cent stake, continued to position itself for long-term growth, making significant enhancements to the quality of its fleet and adding a net 45 aircraft during 2013. In December of 2013, AerCap announced its plans to acquire 100 per cent of the common stock of International Lease Finance Corporation (ILFC) from American International Group (AIG). The total consideration of the acquisition has a value of approximately $26 billion including the assumption of the outstanding ILFC net debt of $21 billion . The transaction is expected to close in the second quarter of 2014, at which point AIG will receive $3.0 billion in cash and 97.6 million newly issued AerCap shares. Existing AerCap shareholders will own approximately 54 per cent of the combined company, while AIG will own about 46 per cent of the combined company. Waha Capital's Board announced in December that it would vote in favour of the transaction. On the closing of the acquisition, the company will continue to own the same number of shares in Aercap ; because of the newly issued shares, its shareholding will be reduced to approximately 14 per cent through dilution. Waha Capital expects to gain immediate shareholder value through the dramatic increase in scale and earnings at AerCap . Dunia Finance, a UAE -based consumer finance company in which Waha Capital owns a 25 per cent stake, continued to demonstrate strong growth in 2013, further expanding its loan book by approximately 60 per cent annually. Finally, Waha Capital's industrial real estate development, Almarkaz, has seen strong leasing demand due to the project's high-quality infrastructure, strategic location, flexibility and scale. By the end of 2013, just over 60 per cent of the 90,000 square metres of warehouse and light industrial space had been leased. The project is on track to achieve 90 per cent occupancy during 2014.

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Source: Khaleej Times (United Arab Emirates)

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