Good afternoon. My name is Leah, and I will be your conference operator today. At this time, I would like to welcome everyone to the Sumisho Air Lease Q2 2026 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now turn the call over to Mr. Jason Arnold, Head of Investor Relations. Mr. Arnold, you may now begin your conference. Good afternoon, everyone, and welcome to Sumisho Air Lease Corporation second quarter 2026 earnings call. This is Jason Arnold, and I am joined today by David Swan, our Chief Commercial Officer, and Sabrina Lemmens, our Chief Financial Officer. Earlier today, we published our second quarter 2026 results. A copy of our earnings release and the accompanying presentation are available on the investors section of our website at sumisho.aero. This conference call is being webcast today, Monday, August 10th, 2026, and a transcript will be available on our website. At this time, all participants to this call are in listen-only mode. Before we begin, please note that certain statements in this conference call, including certain answers to your questions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. This includes, without limitation, statements regarding the state of the airline industry, our aircraft sales pipeline, the SMBC Aviation Capital financing platform, and our future operations and performance. These statements and any projections as to our future performance represent management's current estimates and speak only as of today's date. These estimates involve risks and uncertainties that could cause actual results to differ materially from expectations. Please refer to our filings with the Securities and Exchange Commission for a more detailed description of risk factors that may affect our results. Sumisho Air Lease Corporation assumes no obligation to update any forward-looking statements or information in light of new information or future events. In addition, although US GAAP requires that we report our results for the predecessor period before the merger and the successor period after the merger separately, our discussion of our second quarter results reflect the non-GAAP combined results of the predecessor and successor periods in order to compare and discuss such results with our second quarter 2025 results. The combined results for second quarter of 2026 represent the sum of the reported amounts for the predecessor period from April 1st, 2026, through April 7th, 2026, and the successor period from April 8th, 2026, through June 30th, 2026. These combined results of operations are not considered to be prepared in accordance with US GAAP and have not been prepared as pro forma results under applicable regulations. The non-GAAP combined results do not reflect the actual results we would have achieved had the acquisition occurred at the beginning of the fiscal year 2026 and are not necessarily indicative of future results. We may also discuss certain financial measures, such as adjusted net income before income taxes and adjusted debt to equity, which are non-GAAP measures. A description for our reasons of utilizing these non-GAAP measures, as well as our definition of them and the reconciliation to corresponding GAAP measures, can be found in the presentation and 10-Q we issued today. These materials can be found in the investors section of our website. Lastly, as a reminder, unauthorized recording of this conference call is not permitted. I will now turn the call over to our Chief Commercial Officer, David Swan. David? Thank you, Jason. Good afternoon, everyone, and thank you for joining us today for our second quarter earnings call. I am pleased to report that our adjusted net income before tax for the second quarter was $126 million, which excludes non-recurring merger-related expenses, amortization of fair value adjustments, and other once-off items. After adjusting for these items, our financial performance and business operations remain solid, reflecting one of the highest quality fleets and lessee customer bases in the market, with a continued high utilization rate of 99.5%. Beginning on slide four, our relationship with SMBC Aviation Capital as both a shareholder and our servicer remains a key driving force in the successful future of our business. We see significant competitive advantages of being an integral part of what is now the largest aircraft financing platform in the market by asset value. This industry-leading milestone of over $100 billion of owned, serviced, and committed aircraft was achieved following the orders for 200 Airbus A320neo and Boeing 737 MAX aircraft by SMBC Aviation Capital, which were announced at the Farnborough Airshow last month. We believe the scale, reach, and product strength of the SMBC Aviation Capital platform is unmatched and means we are in an ever stronger position to meet the evolving needs of our customers, further reinforcing our long-term competitive position in this consolidating industry. As I have said since the acquisition of Air Lease was announced, consolidation will continue at a pace in this industry because scale increasingly matters and is now a key competitive differentiator. This dynamic is borne out by the recent M&A announcements by DAE Macquarie, GE, Telesis, and Genesis, [RX and AerFin, and ACG and Tokyo Century. Market-leading scale, combined with the financial support of our shareholders, Sumitomo Corporation, SMBC Aviation Capital, Apollo, and Brookfield, means we are particularly well-positioned for the opportunities that the future will bring. Next, on slide five, I would like to cover a few key business highlights for you from the last quarter. First, I am happy to report that the integration process continues to proceed well, and we are very pleased with what we have achieved in the first three months. Servicing activities by SMBC Aviation Capital are in place and are functioning well. To have the lion's share of the integration process well underway at this juncture is a testament to the hard work by both the Sumitomo and SMBC Aviation Capital teams over the months pre- and post-acquisition. I'm impressed every day by the collaboration, ingenuity, and resilience of my colleagues in L.A. and in Dublin to deliver seamlessly for our customers as we implement this innovative new operating model. We are pleased to have completed the preliminary purchase price accounting work required as part of this acquisition, which was an immense task given the scale of the business. I want to acknowledge the entire Sumisho Air Lease finance team, led by Sabrina, for their expertise, diligence, and long hours that they've put in to get this completed in an incredibly short amount of time. The SMBC Aviation Capital finance team also for their substantial efforts and support in this process. Next, onto the operating environment. Despite the ongoing geopolitical and oil price volatility, commercial aircraft demand remains strong, particularly for the young, new technology, fuel-efficient aircraft types that make up the vast majority of our fleet. The main reason for this is the supply-demand dynamic, particularly for new technology aircraft, due to continued OEM constraints, which has been well documented by many market commentators and something you have heard a lot of on other lessor earnings calls recently. However, unlike previous periods of fuel and geopolitical disruption, because of this supply-demand dynamic, we have seen no notable increase in aircraft retirement rates, always a leading indicator of market weakness. While storage rates rose initially earlier this year, they have fallen back below pre-conflict levels with aircraft demand, airlines' strong preference for extensions or outright purchases, and lease rates all holding up well. Undoubtedly, ongoing geopolitical turmoil could have further impact on our sector, as well as the broader economy, and we expect this will be reflected in some airlines' profitability following some record years of profits post-COVID. Overall, as we heard at the IATA AGM in June, the airline industry remains in good health with air travel growth globally expected to continue for the foreseeable future. Trading demand also remains very strong, driven by the same supply-demand market fundamentals. I am happy to share that, again, working with our colleagues at SMBC Aviation Capital, we have converted two large portfolio LOIs I mentioned on our last earnings call for the sale of $4.4 billion of aircraft into binding sales contracts. With our total sales pipeline now sitting at $5.1 billion. This is an important milestone on our journey post-acquisition, as these sales will be integral to bringing our adjusted leverage in line with our long-term target of three times in the coming quarters, while also improving our portfolio quality in terms of average age, aircraft type, and lessee and geographical concentrations. Sabrina will go into this in more detail later in the call. Perseus and Castlelake are the two portfolio buyers, and as most of you know, they are strong and well-established players in this industry, and on a personal level, counterparties I've had very positive dealings with for many years, both at SMBC Aviation Capital and now at Sumisho Air Lease. Their credibility with airlines, experience in getting deals done efficiently, and their abundant access to capital provides us a real confidence in their ability to execute on these large-scale transactions in a timely manner. I will now hand you over to our Chief Financial Officer, Sabrina Lemmens, to talk you through the details of our financial performance for the period. Thank you, David, and good afternoon, everyone. Turning to slide six, Sumisho Air Lease delivered solid underlying performance in the second quarter. On a non-GAAP combined successor/predecessor basis, total revenue for the quarter was $641 million, and net income to common stockholders was $7 million. That combined net income reflects a number of deal-related items, such as transaction costs of $65 million and $26 million of stock-based compensation tied to the acceleration of converted equity awards from our previously announced workforce reduction. We also recorded roughly $31 million in amortization of fair value adjustments. Excluding these larger items, adjusted net income before income taxes for the quarter was $126 million. These non-GAAP combined results also reflect the impact of purchase price accounting, which requires us to record all assets and liabilities at fair value as of the transaction date. This affects a number of line items across our income statement and balance sheet, and it will continue to do so in future periods. One example is how we will report accounting gains on our existing sales pipeline, which, as David noted, currently stands at $5.1 billion. Because these assets are now carried at fair value, these sales will generate no accounting gain as we close them out over the coming quarters. This can also be observed in our combined results this quarter. Sales proceeds for the full quarter totaled $423 million from the sale of nine aircraft, with accounting gains concentrated in the predecessor period. Importantly, this accounting treatment does not reflect any change in the underlying economic value of these aircraft. We continue to see very attractive pricing for our aircraft in the secondary market. Turning now to slide seven. We have a few key highlights on our balance sheet. Sumisho Air Lease continues to maintain a strong and robust financial position. At June 30th, we had 99% unsecured debt and approximately $3.5 billion of available liquidity, including $3.1 billion of undrawn capacity under our revolving credit facility and approximately $370 million of cash. SMBC Bank remains our single largest provider of liquidity in our revolving credit facility. We enjoy the benefit of strong investment grade ratings as reflected by our triple B rating with S&P and Fitch, and A- rating with Kroll. With respect to leverage, our adjusted debt to equity ratio was 3.5x at quarter end. While leverage remains elevated following the acquisition financing, we believe we have a clear path to deleveraging, supported by a strong aircraft sales pipeline totaling $5.1 billion. We expect these sales to close by the end of the first quarter of 2027, with most of them expected to close in the back half of this period. Given the expected timing of aircraft sale closings, we raised approximately $1.2 billion of incremental financings at an attractive rate of SOFR plus 90 basis points in late July. These financings provide additional flexibility while we execute on our planned asset sales and reduce leverage. Our composite funding rate at the end of this quarter was 4.33%, up only modestly as compared to 4.28% in the prior year period. Turning now to slide eight, and we will look at our portfolio sales in more detail. A key objective for our first year post-acquisition is to bring adjusted leverage in line with our longer-term target of three times. Our plan, as communicated on recent calls, is to capitalize on the strong backdrop for trading aircraft with a view to applying the proceeds generated toward debt reduction. As highlighted by David, we now have signed contracts in place for the sale of two large portfolios with Perseus and Castlelake, two well-established and well-capitalized players, comprising 68 aircraft with carrying values totaling $4.4 billion. We are making solid progress in achieving our de-leveraging objective. Trading this volume of aircraft and within the timeline we are targeting is no small undertaking. It requires significant efficiency and expertise on the side of both the buyer and seller. Through our servicing agreement with SMBC Aviation Capital, we benefit from access to one of the largest aircraft trading teams in the industry. This not only ensures efficiency of process, we believe it will also significantly lower execution risk. In addition to reducing leverage, we believe the asset mix of these portfolios will also enable us to derive real portfolio optimization benefits. This is reflected in the average age of the portfolios of approximately seven years and their high concentration of wide body aircraft, which represents approximately 56% of the aircraft by carrying value. Taking these two portfolio sales into account, as is effective at the end of the second quarter of 2026, the share of new technology aircraft in our fleet would be 87%, up from 85% as reported and 83% at the first quarter of 2026. A meaningfully higher component of new technology aircraft. This is in addition to the reduction of certain asset, customer, and geographic concentrations. I will hand you back over now to David to conclude today's presentation. Thank you, Sabrina. Now turning to slide nine. In summary, setting aside acquisition-related costs, we are very pleased to report another quarter of strong underlying performance and have closed out a number of key strategic objectives, including preliminary purchase price allocation accounting work associated with the acquisition, transition of the majority of the servicing activities to SMBC Aviation Capital, and signing binding sale contracts for two large-scale portfolio trades with strong and credible buyers. Reducing leverage via asset sales is a key near-term objective, and you can expect to see us report continued progress on this over the coming quarters. Upon completion of our de-leveraging process, we will continue utilizing the velocity of our balance sheet as an active buyer and seller of aircraft, optimizing to market conditions for enhanced shareholder returns whilst remaining a top-tier global lessor within the largest aircraft financing platform in the industry. Thank you for your attention. I will now hand you back over to the operator to take a few questions you may have. At this time, I would like to remind everyone, if you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. Please limit yourself to one question and one follow-up. Your first question comes from the line of Mark Streeter with JP Morgan. Your line is open. Please go ahead. Okay, great. Thanks, Jason and David and Sabrina, appreciate the time. Big picture question, I'll throw a few parts out there at you both. Trying to understand, and I haven't gone through all the details with the release this afternoon. On the purchase accounting allocation, one of the knocks against legacy Air Lease was they were carrying some 777s and some other wide bodies at aggressive book values that at one point were underwater, but came back and so forth. When you went through the purchase accounting allocation and so forth, I'm wondering if you have any stories about, it really gets to your underwriting, which happened when you set a price for this well over a year ago now. Market's gone up. You've allocated purchase price accounting to aircraft. You're selling $4 billion you have under contract. I'm just trying to get a sense for what's the gain that you're selling these aircraft for? Or is there an example, maybe not on a specific airplane, but give us a sense for maybe there's some 777s in this portfolio that you're selling for a gain over your allocated price. It really all ties into what you paid for the platform and what you're able to execute now as you're selling down airplanes. Any color you can add there? Sure. Hi, Mark. Thanks for the questions. I think first, regarding your question on aircraft value. For the aircraft values, it really depends on a lot of different inputs when we were looking at the purchase accounting. We do prefer not to get into that detail on a type-by-type discussion, mainly because there's a lot of value variability within each aircraft type and the different families. Yeah. Mark, if I could just comment on two elements. It's David here. Hi, hope you're having a good summer. One is from the four shareholders and how they're feeling basically after buying the business, and the other is you mentioned 777s. One, overall, the shareholders are very pleased with this acquisition. There's three elements to any large-scale M&A like this. It's right price, right time, and the right business, of course, and all of those have stacked up. The market remains very solid. Every month we're in this business, we see more and more quality of both the company assets, the leases, and the people. The pricing, I think, speaks for itself. The pace of integration has gone very well. Overall, the shareholders are very happy and ahead of expectations of what they thought before the acquisition. On the 777s, I remember thinking about these assets as we looked at the business, particularly. The demand for these aircraft has just continued to strengthen, and ahead of expectations, I would say. Each week, we get calls from both the underlying incumbent airlines and investors wanting to buy these aircraft, and same for the older A330s. Hope that answers your question. It's helpful. Just on the $4 billion in the pipeline, or the $5 billion in the pipeline, given the fact that the market's gone up since you underwrote the portfolio, you've gone through the purchase accounting process and so forth, are these $5 billion of aircraft being sold for a gain relative to your new purchase accounting allocated book value? Yeah. From a GAAP accounting standpoint, when we have this purchase accounting, as you mentioned, it requires us to mark our fleet to fair value. Because everything's marked to fair value, there isn't an accounting gain that's going to be associated with these two portfolio sales that you would see running through our P&L. However, the market Okay. That is helpful. For those aircraft is very good. Pricing is very good. Okay. That is helpful. Just trying to understand, because I think there is some confusion about how this works, and just because of the underwriting a year ago, and that is when you agreed on a price, and market has gone up. Okay. I do not want to beat the horse dead. The second question is, or second topic is, David, you mentioned sort of getting back to playing offense or being more active once the de-leveraging process reaches its target. So when we pro forma it out, when does that happen, and when will we see Sumitomo participate in the growing SMBC Aviation Capital group order book? Thanks. Thanks, Mark. When will it happen? From next year. Our priority at the moment is to execute on those sales, to get ourselves down to three times. I just want to reiterate this. The investment grade ratings that we have are really important, and we want to retain those. Getting the leverage to that long-term target as soon as possible is key. Thereafter, we will be buying and selling aircraft, as I said earlier. I do not see ourselves and SMBC Aviation Capital in isolation. We are part of one group. Our two main shareholders are the same. The growth in SMBC Aviation Capital will be part of our growth. Whether it is the order book or the big deals that they are doing, this will all be, I suppose, one of the many options that we will have going forward on the buy side. As Sabrina said earlier, we have a lot of great wider expertise now on the trading side, which we will execute on. That will all, the buy side starting from next year in summary. Yeah, I think that is great. I think we are all just anxious to see how it is going to work in terms of that order book and what is happening at sort of the SMBC side and how that gets allocated down. We will stay tuned. Thank you for your time today. Appreciate the answers. Thank you. Cheers. Thanks, Mark. Your next question comes from the line of Doug Runte with Deutsche Bank. Your line is open. Please go ahead. Yes. Thanks very much. It may be a little bit repetitive because I think Mark, I, and others are still trying to figure out what the shape of Sumisho Air Lease is going to be going forward. I am wondering if during the period, especially since the close, you have obviously been very busy with lots of different things, but have there been any aircraft purchases? There seem to have been some incremental increases in individual aircraft types in your results, but I assume that is mostly legacy aircraft that arrived pre-April. Hi, Doug. Yeah, equally, I hope you are having a good summer. It is David. No, there has not been purchases because our priority is to sell aircraft to reduce our debt, to get down to three times as soon as possible, and all the focus is on that. The long-term context, I will say this many times, is that we will remain a top-tier large-scale lessor of quality and scale. With good young average age, good diversification that we have today, top quality. Just that the way we grow will be different than the past. We have got many different options on the buy side and the sell side going forward. The actual amounts that we are going to buy and sell each year, and this will be the same answer you will get from any other leasing company, really depends on what the market opportunities are. You see a lot of discipline from other lessors when there is not good opportunities. We will have more options than we had in the past to get better deals and access to more airlines with our partnership with now the biggest platform in the business, which is a great milestone. Yes, quite a dramatic sale. I guess you mentioned that part of this is portfolio pruning, 56% wide-bodies. Air Lease has always had a history of being disproportionately wide-body relative to its peer group. Do you imagine that that continues to come down at the Sumisho Air Lease portfolio basis where you continue to use aircraft sales to, say, harmonize your existing fleet at Sumitomo to more match the industry norms? Yeah. First of all, the two big trades were beneficial not just for pricing, but also in terms of reducing our average age and the wide-body content. The wide-bodies in those sales were more predominantly older wide-bodies, helping on the average age. Yes, I would see our wide-body and narrow-body comparison coming into the industry average, which I saw for many years at SMBC Aviation Capital, that having that mix is more optimal. Most importantly, to keep a young average age and well diversification in terms of lessees and countries. Great. Maybe just a quick last one. The aircraft ABS market is clearly wide open, Perseus and Castlelake able to take advantage of that. Do you think there will be further significant, call it benchmark sales to these two entities and others? Are there other ways that you could use the aircraft ABS market more directly? Hi Doug. I like the ABS market, and once the E-notes are involved and you can get a true sale, it's a really good option along with all the other options that we have. It's probably one of the best trading markets I can remember. That continues, which is great, post a big acquisition like this. But I think it's more appropriate probably for Sabrina to talk to the ABS because she herself and the Head of Capital Markets, Shirley Lu, face into the capital markets. Yeah. Hi, Doug. As David mentioned, the ABS market continues to strengthen. Spreads are tightening on deals, and ABS equity investors have been increasingly involved. However, our focus has been on the unsecured markets for our balance sheet, since that does provide us with the greatest flexibility, the lowest cost of funding. But the ABS could also be appealing for portfolio sales, so we're always open to options. Great. Thanks for that, and I look forward to welcoming the team to the Deutsche Bank Aviation Forum in September. Thanks very much. Thank you. Thanks, Doug. We are looking forward to it, too. Thank you for your time today. There are no further questions at this time. Mr. Arnold, I will now turn the call back over to you. Thank you very much, Leah, and thank you all for participating in our second quarter call. We look forward to speaking to you again next quarter. Please disconnect the line, Leah. Thank you very much. This concludes today's conference call. You may now disconnect.