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SEATTLE - Weyerhaeuser Company (NYSE: WY), a prominent player in the Specialized REITs industry with a market capitalization of $18.4 billion, has entered into an agreement to purchase approximately 117,000 acres of timberland in North Carolina and Virginia from Roanoke Timberlands LLC, a subsidiary of Roseburg Forest Products. According to InvestingPro data, the company has maintained dividend payments for 55 consecutive years, demonstrating consistent shareholder returns. The $375 million deal, announced today, is expected to enhance Weyerhaeuser’s Southern Timberlands portfolio and deliver substantial cash flows.
The newly acquired lands, located in regions with robust sawlog and fiber markets, consist predominantly of planted pine acreage with high productivity and accessible logging conditions. The average annual harvest over the first five years is projected at 7.4 tons per acre, contributing to an anticipated average annual timber free cash flow yield of 5.1 percent. The company’s current free cash flow yield stands at 4%, with a healthy current ratio of 2.04, indicating strong liquidity management. InvestingPro analysis reveals 10 additional key financial insights available to subscribers.
Weyerhaeuser’s President and CEO, Devin W. Stockfish, expressed confidence in the strategic value of the acquisition, highlighting the company’s disciplined approach to portfolio management and growth. This acquisition is part of Weyerhaeuser’s broader strategy, having acquired over $1.1 billion in high-quality timberlands since early 2022.
The acquisition, expected to close in the third quarter, will bring Weyerhaeuser’s holdings to approximately 744,000 acres in North Carolina and 150,000 acres in Virginia. The transaction is set to be funded primarily through the divestiture of non-core timberlands, which the company aims to complete in a tax-efficient manner.
Weyerhaeuser, founded in 1900, owns or controls approximately 10.4 million acres of timberlands in the U.S. and operates under sustainable forestry standards. In 2024, the company reported $7.1 billion in net sales and employed around 9,400 people. The company’s common stock is traded on the New York Stock Exchange. Based on InvestingPro’s Fair Value analysis, the stock appears slightly overvalued at current levels, with analysts setting price targets ranging from $30 to $38 per share. A comprehensive Pro Research Report, available to subscribers, provides detailed analysis of the company’s valuation and growth prospects.
The details in this article are based on a press release statement. The forward-looking statements regarding the acquisition’s financial and operational contributions, as well as the funding strategy, are subject to risks and uncertainties, including the ability to complete the transaction and achieve the anticipated benefits.
In other recent news, Weyerhaeuser Company has agreed to sell its Princeton, British Columbia sawmill to the Gorman Group for approximately $86 million USD. This transaction, expected to close in the third quarter of 2025, includes the manufacturing facility and associated timber licenses. The sale is part of Weyerhaeuser’s strategy to optimize its operations by divesting high-cost assets, thereby potentially improving its cost structure. Analysts from DA Davidson have maintained a Buy rating on Weyerhaeuser stock with a $36 price target, expressing confidence in the company’s strategic direction despite the sale price being lower than recent market averages.
The Princeton mill represents a significant portion of Weyerhaeuser’s lumber capacity in Canada, and its sale is anticipated to result in a gain, though it will also incur a tax liability of approximately $15 million CAD. RBC has noted that the mill’s valuation was influenced by potential increases in softwood lumber duties and tariffs. In other developments, Weyerhaeuser’s shareholders have approved executive compensation and elected the board of directors for one-year terms, while also ratifying KPMG LLP as the independent registered public accounting firm for 2025. DA Davidson analysts have pointed out that Weyerhaeuser’s recent financial performance has been bolstered by an improving lumber pricing environment, particularly benefiting its Timberland segment. Despite uncertainties in the housing market, DA Davidson remains optimistic about the company’s prospects, highlighting stable timberland values and favorable lumber price conditions.
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