Good day. Welcome to the Aircastle Limited Third Quarter 2022 Financial Update call. Today's conference is being recorded. At this time, I would like to turn the conference over to James Connelly, Senior Vice President of Corporate Communications. Please go ahead, Mr. Connelly. Thank you. Good morning, everyone, welcome to Aircastle Limited's third quarter 2022 financial update call. With me today are Mike Inglese, Chief Executive Officer, and Roy Chandran, Chief Financial Officer. Other members of the management team are on the line, and they'll be available during Q&A. We'll begin the presentation shortly, but I'd like to remind everyone that this call is being recorded and a replay will be available through our website at www.aircastle.com. There, you can also find the press release and PowerPoint presentation that accompany this call. I'd like to point out that statements today which are not historical facts may be deemed forward-looking statements. Actual results may differ materially from the estimates or expectations expressed in those statements. Certain facts that could cause actual results to differ materially from Aircastle Limited's expectations are detailed in our SEC filings, which can also be found on our website. Direct you to Aircastle Limited's press release for the full forward-looking statement legend. With that, I'll now turn the call over to Mike. Thanks, Jim. Good morning, everyone. Thank Thank you for joining us. I'd like to start off by wishing everyone a happy and healthy 2023. As per our usual agenda, I'll kick off this call by sharing a few brief observations on the global aviation marketplace, along with some highlights from our third quarter. Roy will provide more detailed color on our financial results, after which we're happy to take some questions. Last month, IATA shared its global outlook for air transport, which forecasted airlines returning to profitability this year. Believe this optimism is rooted in the continued demand for travel and by the resiliency airlines have shown as they manage through significant economic headwinds. Earlier this week, IATA released their latest air passenger market analysis, reporting that industry-wide RPKs are at 75% pre-pandemic levels, with a 41% increase from 2021. Despite headwinds due to inflation, fuel prices, interest rates, and foreign exchange rates, airlines continue to find ways to meet growing demand for travel while managing their costs. Strong demand for travel is seen in North America, Latin America, Europe, India, and many parts of Asia, regions where Aircastle serves a significant number of customers. While the situation in China remains volatile, with local easing of restrictions being somewhat offset by new restrictions on Chinese travelers, the broader Asia-Pacific region experienced a 426% increase in international RPKS during our fiscal third quarter versus the same period in 2021. Creativity and resilience we're seeing from our customers is similar to what we observed during the 2008 financial crisis. Airlines weather challenging times because they're skilled operators who adapt to meet the continued demand for travel, allowing for the overall aviation sector to grow. We've seen more key evidence of this growth in the past few weeks. Major airlines and lessors have placed large orders for new narrow-body aircraft and wide-body aircraft with Boeing and Airbus, providing a strong indication of aviation's long-term growth trajectory. Although manufacturers are happy to take new orders, they continue to be impacted by supply chain issues for which there has been little measurable improvement. This means that airlines continue to look to leasing existing aircraft for lift, further proving the unique relevance of Aircastle's position in the market. Because demand exceeds supply for new narrow-body passenger aircraft, we're seeing steady requests for lease extensions on our planes. That said, it's still a challenging landscape for lessors and customers alike. Relatively strong U.S. dollar and high fuel prices prevent formidable headwinds. 2023 also presents the risk of recession as inflation and interest rates remain elevated. Favorable travel volumes continue despite these headwinds, I'm pleased to report that Aircastle achieved a very profitable quarter in our fiscal third quarter. We finished the third quarter with $50 million in net income, $258 million in total revenue, and Adjusted EBITDA of $240 million. Roy will provide more details on these results in a minute, I believe the deciding factor in this quarter's success was effective transaction execution by our team. As to be expected in an environment of interest rate spikes, increased debt costs have somewhat slowed the overall pace of aircraft trading. Despite this, we continue to see our momentum from the second quarter, acquiring another seven narrow-body aircraft, including E2s, two A321neos, an A320neo, and a 737 MAX 8. Clearly, our portfolio growth strategy is focused on new technology aircraft. Two-thirds of the acquisitions Aircastle has made over the last 12 months have been new tech. We've achieved a 55% net book value increase in the best new fuel-efficient emissions narrow-body aircraft sought by our customers. While the industry's Net Zero goals are ambitious and heavily focused on the use of Sustainable Aviation Fuel, the limited availability of SAF has forced airlines to add new tech aircraft to help reach sustainability goals. Acquiring new aircraft technology remains extremely competitive. Narrow-body aircraft attached to good credits attract many investors. I believe our ability to execute in such a challenging landscape is a testament to our experienced team and the strong relationships we've built among the sector's airlines and trading partners. Not having a large forward order book also gives us flexibility to deploy capital and pursue the most attractive assets in the market. Our competitive strengths are our ability to execute quickly and our reputation among counterparties for reliability and professionalism. On the portfolio management side, we sold eight aircraft and other flight equipment for a gain of $53 million. Among these were the sales of two 747 freighters and a 777. After these sales, our narrow body passenger aircraft make up 91% of our portfolio. Shifting from aircraft trading to finance, we announced a new $450 million secured financing facility in November, which bolsters our conservative debt profile during a challenging interest rate landscape. After many years of success in unsecured borrowings, our deep capital markets team has cultivated strong banking relationships. Lenders appreciate our track record, our investment-grade rating, and the opportunities afforded to us by our unique ownership structure with Marubeni Corporation and Mizuho Leasing. It's understood that there are near-term headwinds for aviation, but Aircastle's deep team, possessing multi-cycle experience, is well suited for whatever 2023 brings our way. We're confident we can creatively build aviation solutions for our customers while maintaining a risk-focused objectivity and broader aviation marketplace to ensure that we're always protecting our asset values. Our growing fleet of new technology aircraft keeps us abreast of the technology transition taking place across our customer base. We're strengthening the value of our portfolio while also helping customers achieve their sustainability goals. Because of our conservative balance sheet, our investment-grade rating, and the strong support of our shareholders, we continue to be well-positioned for the future. Now I'll pass the call over to Roy to go through our third quarter results. Thanks, Mike. Good morning, everyone. For the third quarter, we reported net income of $50 million and Adjusted EBITDA of $240 million. Total revenues were $258 million, including gains on sale of flight equipment of $53 million. We also successfully collected $24 million of outstanding letters of credits related to former Russian leases, basically everything that was still outstanding. Year-to-date operating cash flows of $344 million, a 27% improvement from prior year, reflects stabilized customer performance, as does our 39% decrease in AR over the same period. We invested $298 million this quarter for seven narrow body aircraft, six of which were new technology. The eight aircraft sales Mike mentioned brought in proceeds of $163 million. The average age of aircraft sold was 18 years. Transactional impairments were largely offset by related maintenance and other revenues, as well as the $24 million received from Russia-related letters of credit. Excluding the effect of impairments, expenses are down 3% compared to third quarter of 2021, primarily due to lower maintenance costs resulting from fewer assets on the ground. As Mike mentioned, we successfully closed a $450 million secured aircraft financing facility. This facility has a seven-year term. We expect it to be funded over the next three months. Continuing with our capital structure, our net debt to equity stood at 2.7x, down slightly from last quarter. We finished the quarter with total debt of $4.5 billion, of which 85% was unsecured. The weighted average rate on our debt was 4.24%, a slight uptick from last quarter. Continuing with liquidity, as of January 6th, we had total liquidity of $2.3 billion. This includes $1.7 billion of undrawn facilities, unrestricted cash of $100 million, $100 million in contracted sales, and projected 12-month adjusted operating cash flows of $400 million. Our next major debt repayment is in April, we expect to repay it sometime between now and maturity. Looking ahead to 2023, new technology narrow body aircraft will be a high priority for our portfolio. As we confidently trade in the market, we expect to adhere to our usual conservative leverage while maintaining forward commitments. With our long-term focused investment-grade-rated shareholders, we are optimistic about 2023. With that, operator, we're happy to open the call up to questions. Thank you. If you'd like to ask a question, please signal by pressing star one on your telephone keypad. If you're using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. Again, press star one to ask a question. We'll pause for just a moment to allow everyone an opportunity to signal for questions. Again, it's star one to ask a question. We'll take our first question from Mark Streeter from JP Morgan. Please go ahead. Great, thanks. Good morning. Roy, you mentioned the recent secured facility. I saw, I think you gave an interview in Air Finance Journal. You talked about the decision to add recourse to that. I'm sort of wondering if you can talk through, of your secured debt, how much has recourse, how much is non-recourse secured? It's very curious for an investment-grade company to borrow secured with recourse. We don't see that a lot, so I'm wondering if you can talk maybe about what that saved you by offering that recourse. Maybe you can just walk us through that. Sure. You know, I think that report was slightly off. I mean, all our secure financings are recourse. We've traditionally, you know, traded non-recourse for recourse and used, you know, effectively the benefit of recourse and our investment-grade status for some operational flexibility. I wouldn't say, you know, pricing obviously matters, but at the end of the day, for us, the flexibility around moving assets around, trading assets, not having to go back to, you know, our lenders for consent, I think was important. We have a very wide range of, like I say, operating flexibility within our terms. If you go back to all our financings effectively have been recourse. And we haven't done anything which is, you know, purely non-recourse. When you think about for this most recent transaction, you know, a secured recourse facility versus issuing, you know, similar duration unsecured bonds, how much do you think you saved going the secured route? I'd say given where when we did the transaction, my guess is somewhere between 100-150 basis points. That's a bit of a moving target, obviously, right? When we decided to enter the market, you know, the markets were much more volatile. Subsequent to that, there have been a couple of years have been to the market settle down. I'd say on average, we've always looked at the delta between, you know, unsecured bonds versus, you know, secured bank transactions. Usually in that range, 100-150 basis points. I know your spreads were obviously they were way too wide. They've come in a bunch. They're still probably too wide, certainly in your opinion, and I think I share that view. You know, when you think about the market now going forward for 2023, how much more flexibility do you think you have to issue secured? If you were to do a deal tomorrow, do you think it would be secured, or do you think are you getting more comfortable where unsecured yields are? How should we think about, you know, what's that next deal look like? Is it gonna be secured or unsecured? I think we're never comfortable where rates are, right? As an issuer, we always want it to be lower. There are some natural constraints on secure transactions. We've always adhered to trying to keep secured within, you know, sort of a boundary of less than 20%. Right now, we have 15. Theoretically, you know, we have some capacity. The flip side is, you know, we do want to be a frequent issuer in the unsecured market. The unsecured markets have got the deepest form of capital. I think, you know, all things being equal, we have enough capacity to deal with our near-term maturity. You know, we'll look at the markets and plan sort of to be in the market at some point, you know, in the next six months. When and exactly when, I don't know. Really we as a, you know, reasonably frequently sure we are prepared to kind of go at short notice. You know, I think we'll wait for the market will settle down a little bit more. I'd say that would be our first port of call. We're also looking at some alternative financing in other markets. I think first priority is always to maintain some liquidity in unsecured markets. Great. Thanks. Last question from me. Mike, you sort of mentioned, you know, average age of the portfolio, right, continues to come down, long-term trend at least, right? It came down this quarter. Yeah. How important is it that you continue to drive down the average age? You know, you still have your midlife strategy, but obviously more of what you're buying is newer generation technology and so forth, almost all of what you're buying. I'm just sort of wondering how you're thinking about the average age of the portfolio and where that may evolve to? Yeah. I think in practically speaking, as we're begin investing in new tech over the last year or so, and as the technology in the marketplace will grow, you know, simplistically thinking, if we add new tech and some old tech and you roll forward, you know, at reasonable investment levels for four or five years, that may change your mix. Because, if you think about three or four years from now, there'll be mid-aged new tech aircraft, which will probably become the focus of our investment target. The age of what we're buying will probably increase as market penetration of new tech increases. Realistically, going from somewhere between 10 and 11 down to somewhere around nine to 10 is sort of how I think we'll most likely wind up. We're not going from 10 to two, and we're probably not going from 10 to five. Okay. That's helpful. Thanks very much and hope to run into you in Dublin next week. Safe travels. Thank you. Our next question comes from Doug Runte from Deutsche Bank. Please go ahead. Yes, good morning. A question on the very impressive gain on sale. I believe you said it was two 747s and a 777. That's correct. Was that a net gain on sale? Is there some triggering that created what looks like a $30 million impairment in the quarter? Yeah, the gain on sale of the 747 and one of the 747s and the 777 were assets that came out of Russia. Ah. previously impaired, so. Okay. Just to be clear, it's different accounting period realities for those assets. Okay. That's helpful. It looks like in the quarter, there was a pretty sharp uptick in maintenance revenue relative to overall lease rental. Is that simply a function of utilization improving? Are you seeing a higher percentage of your assets being maintenance payers? Maybe a little bit more color on maintenance revenue. Yeah, I think typically for us, Doug, the maintenance revenue that gets recognized is more driven by transactional activity and one lease ending and another lease beginning. Okay. -or the sale of an asset. It wasn't, it wasn't reflective of a change necessarily in the quarter of maintenance collections from all of our customers who are. Okay. maintenance payers. A quick last question on operations. Very impressive utilization number. At this point in the COVID cycle, I guess, you know, to what extent do you still have airlines that have significant deferrals? Are most of them back to where they should be? What do you expect going forward, particularly with Asia Pacific reopening? When I think about deferrals in the context of our customer base, two of our significant customers in Southeast Asia, we did, you know, in essence, lease restructurings that will defer- Okay. A collection of revenue over a long period of time. With what's happening in that part of the world most recently, which has been the part of the world that has lagged from a recovery, we're seeing good positive momentum in the context of those airlines getting back on track. Great. Maybe a last question, linked to Mark's question earlier. Your average debt tenor, 2.4 years. Your lease term now, average lease term extended nicely to 5.1. Conceptually, should those two numbers be a little bit closer, or are you somehow, I guess, getting comfort with your shareholders that that works? No, Doug, I mean, I think, you know, conceptually that those two numbers should be closer. At the end of the day, I think we've always tried to push out debt maturities, you know, as far as we can. In terms of financings, end of the day it's, you know, how steep is the curve, you know, going from, you know, sort of 3 to 5, 5 to 7, and ultimately 7 to 10, right? Our long-term game plan is to try to continue to push that out, and, you know, bring those two things, you know, more in sync. In a perfect world, you want them to be, you know, close, but that's tough to do. Right. Understood. Well, I'll save the rest of my questions for Dublin. Thanks very much for the presentation and the granular information. Thanks, Doug. Thanks. As a reminder, it's star one to ask a question. It appears that there are no additional questions at this time. I'll turn the conference back to James Connelly for any additional remarks. I just wanna thank everyone for joining today. Please reach out if you have any questions, and hope you have a great day. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.