Exchange Income Corporation (EIF)

GlassHouse Research published on Exchange Income Corporation (Toronto: EIF — CAD$5.58 billion), a Canadian aerospace and manufacturing acquisition company. GlassHouse raised concerns about Exchange Income Corporation’s ownership of Regional One, an international aircraft leasing company that lends aircraft to “high-risk counterparties” in developing countries and allegedly has “roughly 30-50 aircraft parked in desert storage facilities in Arizona.” GlassHouse summarized:

> “This is not a boring Canadian dividend aristocrat. It is a capital intensive, international asset recycler that allows physical assets to deteriorate quietly, monetizes what remains through accounting discretion, and uses external capital to sustain a payout.”