Investments

12 Months Ended

Dec. 31, 2024

In 2011, the Company entered into an agreement with Mitsui & Co., Ltd. to participate in a joint venture formed as a Dublin-based Irish limited company, WMES, for the purpose of acquiring and leasing jet engines. Each partner holds a 50% interest in the joint venture, and the Company uses the equity method in recording investment activity. As of December 31, 2024, WMES owned a lease portfolio of 50 engines with a net book value of $328.9 million.

In 2014, the Company entered into an agreement with China Aviation Supplies Import & Export Corporation (“CASC”) to participate in a joint venture named CASC Willis Lease Finance Company Limited (“CASC Willis”), a joint venture based in Shanghai, China. Each partner holds a 50% interest in the joint venture and the Company uses the equity method in recording investment activity. CASC Willis acquires and leases jet engines to Chinese airlines and concentrates on the demand for leased commercial aircraft engines and aviation assets in the People’s Republic of China. As of December 31, 2024, CASC Willis owned a lease portfolio of four engines with a net book value of $37.3 million.


	WMES		CASC Willis		Total
	(in thousands)
Investment in joint ventures as of December 31, 2022	$	41,014	$	15,175	$	56,189
Income (loss) from joint ventures	(437)		3,345		2,908
Foreign currency translation adjustment	—		(523)		(523)
Other comprehensive loss from joint ventures	(530)		—		(530)
Investment in joint ventures as of December 31, 2023	40,047		17,997		58,044
Income from joint ventures	7,670		577		8,247

Distribution	(2,756)		(246)		(3,002)
Foreign currency translation adjustment	—		(414)		(414)
Other comprehensive loss from joint ventures	(205)		—		(205)
Investment in joint ventures as of December 31, 2024	$	44,756	$	17,914	$	62,670

As of December 31, 2024 and 2023, the currency translation adjustment balance was $2.1 million and $1.8 million, respectively.

“Other revenue” on the Consolidated Statements of Income includes management fees earned of $4.8 million and $2.4 million during the years ended December 31, 2024 and 2023, respectively, related to the servicing of engines for the WMES lease portfolio.

During 2024, the Company sold four engines to WMES for $50.5 million, which resulted in a net gain of $12.7 million for the Company. During 2023, WMES sold one engine to the Company for $22.3 million, and the Company sold two engines to WMES for $28.8 million, which resulted in a net gain of $6.5 million for the Company.

The Company subleases a WMES engine to a third party, with WMES as the head lessor. As of December 31, 2024 and 2023, the ROU asset and lease liability balances under this lease were $1.6 million, each, and $3.3 million, each, respectively.

Unaudited summarized financial information for 100% of WMES is presented in the following table:


	Years Ended December 31,
	2024		2023
	(in thousands)
Revenue	$	75,551	$	47,617
Expenses	60,484		46,317
WMES net income	$	15,067	$	1,300


	As of December 31,
	2024		2023
	(in thousands)
Total assets	$	352,783	$	236,732
Total liabilities	256,055		150,604
Total WMES net equity	$	96,728	$	86,128

The difference between the Company’s investment in WMES and 50% of total WMES net equity, as well as the difference between the Company’s income or loss from WMES and 50% of total WMES net income, is primarily attributable to the recognition of deferred gains, which are related to engines sold by WMES to the Company, and prior to the adoption of ASU 2017-05, related to engines sold by the Company to WMES.