Higher container lease income for Textainer
Bermuda-based Textainer Group Holdings Limited, one of the world's largest lessors of intermodal containers, has reported net income of $64.7 million for the third quarter.
That compares with net income of $73.8 million in the second quarter of the year.
The average and ending utilisation rate for the third quarter was 99.8 per cent.
The company said that it invested $622 million in containers delivered during the third quarter, for a total $1.7 billion delivered through the first nine months of the year, virtually all of which are currently on lease with tenors in excess of 12 years.
Textainer said that it repurchased 523,662 shares of common stock at an average price of $31.63 per share during the third quarter.
As of the end of the quarter, the remaining authority under the company’s share repurchase programme totalled $77.5 million.
Textainer's board of directors declared a $0.25 per common share cash dividend in the third quarter, payable on December 15 to holders of record as of December 3.
Olivier Ghesquiere, president and chief executive officer, said: "We are proud to deliver yet another quarter of very positive results, which reflect the consistent execution of our strategy to maximise the current favourable market opportunities and drive profitable organic growth with a focus on optimised capex as well as continued operational and financial efficiencies.
“For the quarter, lease rental income increased to $196 million, a 31 per cent increase over the same quarter last year driven by continued fleet growth in a strong demand environment.
“Adjusted ebitda increased to $184 million, a 55 per cent increase from the same quarter last year, and adjusted net income was $77 million, or $1.52 per diluted share, which represents an annualised ROE of 22 per cent.”
He added: “The current market environment remains favourable, as trade volumes and global supply-chain bottlenecks have continued to drive container demand.
“Furthermore, new container prices remain strong as we continue to successfully renew and extend expiring leases into life-cycle leases, with maturities extending through the remaining useful life of the containers.
“The overall lease duration across the entirety of our fleet averages six years, thereby further securing stable future cash flows and mitigating possible future market cyclicality."