DAVY VIEW

While yesterday’s news on the vaccine front overshadowed Air Lease’s Q3 results, the underlying business remains in good shape. Key metrics (leverage, liquidity and placement activity) are all stable — the only blemish of note, $25m of contracted revenue that could not be recognised, is far from systematic. Rent deferral trends were positive ahead of yesterday’s mood-shift. The increasing likelihood of an effective vaccine has the potential to transform sentiment among airlines, travellers and investors. At these price-to-book multiples, that should draw attention to the deep value opportunities in the space over the coming months.