Textainer Group Holdings Limited, the world's largest lessor of intermodal containers based on fleet size, reported strong third quarter 2013 results. Market analysts were pleased to see that the company's underlying business fundamentals remained solid so far in 2013, as Textainer achieved more than 8 percent growth in revenue, compared to the 2012 third quarter. It is also important to note that the company's lease rental income grew by 21 percent to $118 million, compared to the same time period a year ago.
Despite the fact that container demand was softer than expected in 2013, due to lower than projected international trade growth and the inability of shipping lines to successfully implement and maintain general freight rate increases, Textainer has continued to invest in new and used containers; bringing the company's fleet to nearly 3 million TEU. Moreover, the company has reported that they are beginning to see signs of a steady increase in demand for shipping containers, and company officials say they are pleased with their container investments and current market positioning.
On October 31, 2013, to the delight of investors, Textainer's board of directors approved a quarterly cash dividend of $0.47 per share; payable on Textainer's issued and outstanding common shares. This dividend represents a payout of 66 percent of the Q3 2013 adjusted net income.
"Our dividend reflects our continued confidence in the long-term outlook for our business and in our strong cash flow. We continue to target a dividend level of around 50 percent of adjusted net income … We remain committed to our current dividend level, as we believe it enables us to balance investing for growth in the business and providing attractive ongoing returns to our shareholders."- President and Chief Executive Officer of Textainer
The container transport company is recognized as one of the largest purchasers of new shipping containers, as well as one of the largest sellers of used containers, in the world. Textainer supplies cargo containers to approximately 400 shipping lines and other lessees, with more than 80 percent of its fleet on long-term and finance leases. The shipping industry leader also sells shipping containers to more than 1,200 customers worldwide.