** Shares of aircraft lessor FTAI Aviation FTAI.O fall 25.2% to $114.44 in afternoon trade

** Muddy Waters says it is short on FTAI, claiming financial reporting at the company to be "highly misleading"

** Short seller alleges that FTAI's revenue from true maintenance and individual off-the-rack module sales are materially lower than reported

** "FTAI, in our view, is misleading investors by reporting one-time engine sales as Maintenance Repair & Overhaul $(MRO)$ revenue in its Aerospace Products $(AP)$ segment" - Muddy Waters

** Company did not immediately respond to a Reuters request for comment

** According to data compiled by LSEG, 3.79% of FTAI's float was sold short as of Dec. 31, 2024

** FTAI shares soared 210.4% in 2024

** Twelve of 13 brokerages rate the stock "buy" or higher, and one rates it "hold"; their median PT is $182.57

** FTAI beat topline estimates but marginally missed bottomline when it reported Q3 results in October; it is scheduled to report its Q4 results on Feb. 20

(Reporting by Abhinav Parmar in Bengaluru)

((Abhinav.Parmar@thomsonreuters.com;))