Willis Lease Finance signs agreement to acquire Florida properties for $118 million
Willis Lease Finance signs agreement to acquire Florida properties for $118 million
Willis Lease Finance Corp (NASDAQ:WLFC) has entered into a purchase and sale agreement to acquire three commercial buildings in Coconut Creek, Florida, for $118 million, according to a statement released in a recent SEC filing. The acquisition represents roughly 8% of the company’s $1.39 billion market capitalization. InvestingPro data shows the company maintains a healthy current ratio of 1.54, with liquid assets exceeding short-term obligations—a solid position for funding the expansion.
The agreement, executed Monday, covers properties totaling 375,000 square feet. Willis Lease Finance plans to use the buildings to support its expanding operations. The company intends to utilize the new facilities for its corporate headquarters, spare parts business, maintenance repair and overhaul services, as well as preservation and engine storage.
The closing of the acquisition remains subject to customary closing conditions. The company did not disclose a specific closing date. According to InvestingPro analysis, WLFC currently trades below its Fair Value, placing it among opportunities on the most undervalued stocks list.
The information is based on a press release statement included in the SEC filing.
In other recent news, Willis Lease Finance Corp. reported its second-quarter financial results, revealing a mixed performance. The company achieved a revenue of $194 million, surpassing analysts’ expectations of $178 million. This increase was driven by lease rent, asset sales, and management fees. Despite this revenue beat, the company’s diluted earnings per share (EPS) fell short, coming in at $1.31, significantly below the anticipated $3.26. The shortfall in profit was attributed to increased costs and financing charges. Adjusted EBITDA saw a 4% rise to $120.7 million, indicating ongoing operational momentum. Additionally, assets under management grew to $4.4 billion, compared to $3.6 billion the previous year. About 60% of Willis Lease Finance’s portfolio now consists of modern engines, such as LEAP, GTF, and GEnx, reflecting the company’s strategic focus on newer technology.