Doric Nimrod Air One Limited Quarterly Fact Sheet (9829A)
October 01 2015 - 11:15AM
UK Regulatory
TIDMDNA
RNS Number : 9829A
Doric Nimrod Air One Limited
01 October 2015
QUARTERLY FACT SHEET
30 September 2015
DORIC NIMROD AIR ONE LIMITED
LSE: DNA
The Company
Doric Nimrod Air One Limited ("the Company") is a Guernsey
domiciled company, which was listed on the Specialist Fund Market
(SFM) of the London Stock Exchange and the Channel Islands Stock
Exchange on 13 December 2010. The Company has purchased one Airbus
A380-861 aircraft, manufacturer's serial number (MSN) 016, which it
has leased for an initial term of 12 years, with fixed lease
rentals for the duration, to Emirates Airline ("Emirates"), the
national carrier owned by the Investment Corporation of Dubai,
based in Dubai, United Arab Emirates.
Investment Strategy
The Company's investment objective is to obtain income returns
and a capital return for its shareholders by acquiring, leasing and
then selling a single aircraft. The Company receives income from
the lease and its directors are targeting a gross distribution to
the shareholders of 2.25 pence per share per quarter (9p per
annum). It is anticipated that income distributions will continue
to be made quarterly.
The total return for a shareholder investing today (30 September
2015) at the current share price consists of future income
distributions during the remaining lease duration and a return of
capital at dissolution of the Company. The latter payment is
subject to the future value and the respective sales proceeds of
the aircraft, quoted in US dollars and the USD/GBP exchange rate at
that point in time. Since launch three independent appraisers
provide the Company with their future values for the aircraft at
the end of each financial year. The latest appraisals available are
dated the end of March 2015. The table below summarizes the total
return components, calculated on different exchange rates and using
the average value of the aircraft as provided by the three
independent external appraisers. Regarding the following two
tables, there is no guarantee that the aircraft will be sold at
such a sale price or that such capital returns would be generated.
It is also assumed that the lessee will honour all its contractual
obligations during the entire anticipated lease term.
I. Implied Future Total Return Components Based on
Appraisals(1)
The implied return figures are not a forecast and assume the Company
has not incurred any unexpected costs.
Aircraft value at lease expiry according to
* Prospectus appraisal USD 110 million
* Latest appraisal USD 104 million
==============================================================================================
per Share Income Distributions Return of Capital Total Return(2)
--------------------- --------------------------- ---------------------------
Prospectus Latest Prospectus Latest
Appraisal Appraisal(3) Appraisal Appraisal(3)
--------------------- ----------- -------------- ----------- --------------
Prospectus
FX Rate(4) 68p 161p 152p 229p 220p
------------- --------------------- ----------- -------------- ----------- --------------
Current FX
Rate(5) 68p 169p 160p 236p 227p
------------- --------------------- ----------- -------------- ----------- --------------
(1) See final sentences of Investment Strategy
(2) Excluding earned dividend
(3) Average of the three appraisals as at the Company's year-end in
the expiry year of the lease
(4) 1.5900 USD/GBP
(5) 1.5166 USD/GBP (30 Sept. 2015)
II. Company Facts (30 September 2015)
Listing LSE
----------------------------- ----------------------------------------
Ticker DNA
----------------------------- ----------------------------------------
Current Share Price 105.25p (closing)
----------------------------- ----------------------------------------
Market Capitalisation GBP 44.7 million
----------------------------- ----------------------------------------
Initial Debt USD 122 million
----------------------------- ----------------------------------------
Outstanding Debt Balance USD 75.8 million (62% of Initial Debt)
----------------------------- ----------------------------------------
Current/Future Anticipated 2.25p per quarter (9p per annum)
Dividend
----------------------------- ----------------------------------------
Earned Dividends 40.50p
----------------------------- ----------------------------------------
Current Dividend Yield 8.55%
----------------------------- ----------------------------------------
Dividend Payment Dates April, July, October, January
----------------------------- ----------------------------------------
Expected Future Total 2.16 (based on the Current Share Price)
Cash Multiple(1)
----------------------------- ----------------------------------------
Currency GBP
----------------------------- ----------------------------------------
Launch Date/Price 13 December 2010 / 100p
----------------------------- ----------------------------------------
Remaining Lease Duration 7 years 3 months
----------------------------- ----------------------------------------
Incorporation Guernsey
----------------------------- ----------------------------------------
Aircraft Registration A6-EDC (16.12.2022)
Number (Lease Expiry Date)
----------------------------- ----------------------------------------
Asset Manager Doric GmbH
----------------------------- ----------------------------------------
Corp & Shareholder Advisor Nimrod Capital LLP
----------------------------- ----------------------------------------
Administrator JTC (Guernsey) Ltd
----------------------------- ----------------------------------------
Auditor Deloitte LLP
----------------------------- ----------------------------------------
Market Makers Jefferies International Ltd,
Numis Securities Ltd,
Shore Capital Ltd,
Winterflood Securities Ltd
----------------------------- ----------------------------------------
SEDOL, ISIN B4MF389, GG00B4MF3899
----------------------------- ----------------------------------------
Year End 31 March
----------------------------- ----------------------------------------
Stocks & Shares ISA Eligible
----------------------------- ----------------------------------------
Website www.dnairone.com
----------------------------- ----------------------------------------
(1) See final sentences of Investment Strategy
Asset Manager's Comment
1. The Doric Nimrod Air One Airbus A380
The Airbus A380 is registered in the United Arab Emirates under
the registration mark A6-EDC. For the period from original delivery
of the aircraft to Emirates in November 2008 until the end of
August 2015, a total of 3,533 flight cycles were logged. Total
flight hours were 29,624. This equates to an average flight
duration of approximately eight hours and 25 minutes.
The A380 owned by the Company visited Auckland, Brisbane,
Munich, New York, and Sydney during the third quarter of 2015.
Maintenance Status
Emirates maintains its A380 aircraft fleet based on a
maintenance programme according to which minor maintenance checks
are performed every 1,500 flight hours, and more significant
maintenance checks (C checks) at 24 month or 12,000 flight hour
intervals, whichever occurs sooner. The last heavy maintenance
check, which was the 6-year check, was completed in December
2014.
Emirates bears all costs (including for maintenance, repairs and
insurance) relating to the aircraft during the lifetime of the
lease.
Inspections
During the period under review no physical inspection of the
aircraft was conducted.
2. Market Overview
From January to July 2015 passenger demand, measured in revenue
passenger kilometres (RPKs), increased by 6.5% compared to the year
before. The recent softening in economic growth has had no adverse
impacts on RPK volumes so far. Lower fares were fueling demand in
air travel, particularly in the leisure travel segment. But
according to an IATA press release citing Tony Tyler, IATA's
Director General and CEO, slowing global trade and stock market
volatility may lead to some turbulence in the coming months.
Nevertheless, expectations for 2015 are broadly positive, due to
the continuing low oil price environment. In its latest forecast
released in June IATA expects an RPK growth of 6.7% for the current
year - an increase of 0.8 percentage points compared to last year's
growth rate. Between January and July 2015 airlines increased their
capacities, measured in available seat kilometres (ASKs), by 6.0%.
The Middle East (+15.5%) and Asia/Pacific (+7.2%) were the most
active regions in terms of capacity growth. The only shrinking
market was Africa again.
The average passenger load factor in the first seven months of
this year was 80.1%. This is an increase of 0.4 percentage points
compared to the same period the year before. IATA expects an
average worldwide passenger load factor of 80.2% for the full year
2015.
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