Rayonier at Nareit REITweek: Embracing Land-Based Solutions

On Wednesday, 04 June 2025, Rayonier Inc. (NYSE:RYN) presented its strategic vision at the Nareit REITweek: 2025 Investor Conference. The company is transitioning from traditional timber operations to focus on land-based solutions. While emphasizing the potential for significant value uplift, Rayonier also acknowledged challenges such as environmental risks and market uncertainties.

Key Takeaways

• Rayonier is shifting from timber operations to alternative land uses like solar and carbon capture.
• The company is executing a $1.45 billion asset disposition program to enhance shareholder value.
• Rayonier’s EBITDA in 2024 was primarily driven by timber segments, with real estate contributing 30%.
• The New Zealand business sale is set to close by year-end, reducing Rayonier’s acreage significantly.
• Share buybacks are prioritized due to a perceived stock price discount.

Financial Results

• EBITDA Breakdown (2024): Timber segments accounted for 70% of adjusted EBITDA, while real estate contributed 30%.
• HBU Premiums: Average price per acre rose to $4,500 (2021-2024) from $2,800 (2015-2017).
• Asset Disposition Program: Rayonier completed or announced $1.4 billion in dispositions, surpassing the $1 billion target.
• Cash Position: Expected to hold approximately $1 billion after the New Zealand transaction.

Operational Updates

• New Zealand Divestiture: Sale to close by year-end, reducing acreage by 400,000 acres and sustainable yield by 2.5 million tons.
• Timberland Holdings: Rayonier owns or leases 2.5 million acres, with 1.8 million in the US South.
• Land-Based Solutions: Solar options increased to 39,000 acres by 2024; CCS leases grew to over 150,000 acres.

Future Outlook

• Strategic Priorities: Optimize timber operations, expand land-based solutions, and leverage real estate for premium returns.
• Capital Allocation: Focus on share buybacks due to stock price discount; remain open to acquisition opportunities.
• Market Trends: Anticipate growing demand for land and timber, driven by energy transitions and US housing market outlook.

Q&A Highlights

• New Zealand Divestiture Rationale: Lack of synergy and complex joint venture structure prompted the sale.
• Private Market Valuation: Rayonier views its portfolio as above-average quality, especially in the US South.
• Tariffs and Lumber Production: Expected increase in duties may boost US sawtimber prices.

For further insights, readers are encouraged to refer to the full conference call transcript.

Full transcript - Nareit REITweek: 2025 Investor Conference:

Buck Horn, Raymond James housing analyst, Raymond James: I see our green light’s on so I’m going go ahead and get it started so we stay and keep the trains running on time. Appreciate everybody’s participation. My name is Buck Horn, the Raymond James housing analyst also covering all things residential but timber as well and happy to have the team from Rayonier to talk timber, trees and tariffs and all sorts of other fun stuff. I wish I had better news to report on the housing market but it’s been a slog and you’ve seen the turbulence and consumer sentiment and volatile mortgage rates and kind of seem to have a kind of a housing starts pattern that seems kind of stuck in neutral at the moment.

But with that all being said, we think it’s created some interesting pricing dislocations in the timber REITs with stocks like Rayonier’s trading north of 30% discounts to our estimated net asset value, one of the deepest discounts I think we’ve seen historically on record quite frankly for the stock. So really compelling value, interesting time to be talking about it. With that, I’m going to we’ve got Mark McHugh to my left, April Tice to his left and then Colin Mings over there. And we’ll do some opening, I guess presentation and then we’ll have time for Q and So let me turn it over to Mark.

Mark McHugh, Rayonier: Alright. Thanks, Buck, for hosting us today. Thanks for everybody joining here at NAREIT as well as those joining on the webcast. I’m gonna start by providing a high level overview of Rainier for those that are less familiar with the story, and then we’ll leave plenty of time for Q and A. And as I flip through the slides here, I’m going be referencing the investor conference presentation that’s available on our website as the featured presentation.

All right, so diving in on Page three, here we provided a brief snapshot of where Rayonier is today. We are one of three publicly traded timber REITs, but we tend to think of ourselves as the only pure play timber REIT and that we don’t have exposure to downstream wood products manufacturing assets. And that’s generally going to translate to less cyclical volatility in our cash flows over time relative to the peers. The company was founded in 1926, so almost a one hundred year history. Today, we own or lease about 2,500,000 acres of timberland, generating a sustainable yield of about 10,000,000 tons annually.

Of course, we recently announced an agreement to sell our New Zealand business. So once this transaction closes, that will reduce our acreage by about 400,000 acres and our sustainable yield by about 2,500,000 tons. The chart on the right here shows our adjusted EBITDA breakdown in 2024. As you can see, about 70% of our adjusted EBITDA came from our timber segments, with the balance of 30% coming from our real estate segment. And that’s been pretty consistent over time where typically we’re generating anywhere from two thirds to three quarters of our adjusted EBITDA from timber with the balance coming from real estate.

That said, with the pending New Zealand disposition, we do expect that, that weighting will shift a bit heavier to real estate sales going forward. So that’s a snapshot of where we are today, but I want to spend the next few minutes talking about how we see our business evolving into the future. And it starts with a couple of major trends that we believe are going to drive increased demand for land and timber over the long term. And the first is the energy transition. The need for renewable power and decarbonization solutions, it continues to grow.

And that’s especially true today with the rapid development and deployment of AI and the power hungry data centers required to support this technology. So despite some near term political uncertainty around renewable energy incentives, We do see this as a long term secular trend that we think is going to drive increased demand for land based solutions going forward. The second trend is the favorable long term outlook for The U. S. Housing market.

As Buck discussed, we’re certainly facing some near term headwinds, but The U. S. Housing sector remains significantly under built. Depending on what study you look at, by most accounts, there’s anywhere from 3,000,000 to 6,000,000 units of under built supply in the market. So despite the challenging financing environment that we currently find ourselves in, we do think that the long term outlook and trajectory of housing starts will be quite constructive.

So as these trends reshape our industry, they’re also really reshaping how we think about our business and our portfolio. Increasingly, we’ve come to see ourselves as not just a timber company, but really more of a land resources company. And as a land resources company, we become increasingly focused on maximizing the value of our portfolio and our lands in a multitude of different ways. And in particular, we think that over time, a small portion of our lands will become much more valuable for alternative land uses, such as land based solutions as well as, real estate development. So why does this matter?

This next slide six illustrates why we’re so about these new opportunities. And what this chart shows is the potential value uplift that we believe can be achieved from transitioning land use. So for example, if you take an acre of US South Timberland that has an average value today of say, dollars 2,000 to $3,000 per acre, and you’re able to transition that acre into a carbon capture and storage lease, that has the potential to lift the value of that acre by up to 5x. If you’re able to transition that acre into a solar lease or an unimproved development use, that has a potential lift the value of that acre by up to 10x. And lastly, if we’re able to transition that acre into an improved development use, we think that that has a potential to increase the value of that acre by up to 15x.

So we see significant value creation potential from optimizing land use across the portfolio. And as we grow the number of acres within our portfolio that can be converted into these higher value uses, we really see this translating into significant value creation for us over the long term. So moving on to Page seven, we’ve laid out our vision for Rayonier, and it’s really pretty simple. Our vision is to realize the full potential of our land resources in meeting the needs of society. And what that really means is that we want to be in a position execute on the highest value end use for every acre within our portfolio, whether that is timber production, land based solutions or higher and better use real estate.

And again, we think if we can achieve this, that there’s tremendous value creation potential across the portfolio. So moving on to Slide eight, I want to briefly touch on some of our key competitive advantages. First, Rayonier has a best in class timberland portfolio located in some of the most attractive timber markets in the world. Second, we have a differentiated real estate platform with a demonstrated track record of optimizing HBU values and premiums across our footprint. And third, we believe our portfolio is uniquely well positioned to capture these transformative land based solutions opportunities over time.

So let me drill down in each of these in a bit more detail. Slide nine provides an overview of our Timberland holdings by region. As I noted earlier, we own or lease roughly 2,500,000 acres on some of the most attractive softwood markets world. And that includes 1,800,000 acres on The U. S.

South, about 310,000 acres in the Pacific Northwest and about 410,000 acres in New Zealand. Now as it relates to our New Zealand portfolio, again, we announced an agreement earlier this year to sell this business, and we expect this transaction to close by the end of the year, which part our portfolio will be exclusively focused in The U. S, in The U. S. South and the Pacific Northwest.

So moving on, another key feature of our portfolio is our concentration in some of the best markets in The U. S. South. As you can see on Slide 10, over 70% of our timberlands are located in The U. S.

South and the majority of these lands are located in top quartile markets as measured by TimberMart South composite average pricing. The chart on the right here shows our EBITDA per acre performance relative to the Nacreave South Index. As you can see over the past six years, our average EBITDA per acre has been over 40% higher than the Nacreve South Index. So again, this chart really highlights that relative quality differential of our Southern portfolio. Now turning to our real estate platform.

Slide 11 shows a range of real estate categories that we participate in. The first two, non strategic and rural, these are really the bread and butter of our real estate business. Historically, we’ve sold anywhere from 1% to 2% of our Southern land annually, typically at premiums ranging from 50% to 100% above timberland value. And that really forms the core of that recurring HBU business. The next two categories, unimproved development and improved development, this is really the area where we see the most significant growth opportunity longer term.

Unimproved development consists of properties where we’ve invested in entitlements and some land use planning, but we haven’t made that next step of investing in horizontal infrastructure improvements. And we tend to do this in areas where we have high value lands, but they tend to be relatively isolated parcels. Alternatively, also within improved development, these are areas where we’ve actually taken that next step and invested in horizontal infrastructure improvements. And we really do that in order to catalyze value creation across a very large footprint of land. And again, we only make those investments in areas where we tend to have large land holdings like Northeast Florida and Southeast Georgia.

And so these are the major categories that comprise our real estate business. Now moving on to our performance in the HBU business on Slide 12. The chart on the left here shows how our HBU values and premiums have evolved over the last decade. As you can see, we generated a significant increase in both our average HBU price per acre as well as a premium to day creef index. So that value per acre went from about $2,800 per acre on the period from 2015 to 2017 to $4,500 per acre in this most recent period from 2021 to 2024.

We also generated a significant increase in the premium. That premium went from 55% to almost 120% over those same time periods. We’ve also seen a significant uptick in the shift I’m sorry, a shift in the mix of the development sales, those higher value development sales. They’ve gone from just over 15% on 2015 to 2017 to about 44% in the last four years. And what’s really driving this mix shift is the momentum that we’ve gained in our Wildlight and Hartwood development projects.

Slide 13 provides a high level overview of our 120,000 acre development pipeline as well as a map of our holdings in Northeast Florida and Southeast Georgia. Again, we only pursue these improved development projects in areas that have both strong market ready demand as well as areas where we have a significant landholding. And the two primary areas where we’ve done this are in Wildlight, our project North Of Jacksonville, Florida as well as Hartwood, our project South Of Savannah, Georgia. So for example, in Wildlight, we own about 25,000 acres within a five mile radius of the epicenter of that project and about 50,000 acres within a 10 mile radius. So again, the strategy here is really about creating a catalyst for value creation and demand across a very large footprint of land.

So now let’s shift gears and talk about land based solutions. This next slide illustrates the global path to achieve net zero by 02/1950, and it shows what’s going to be required in terms of reduction of carbon emissions as well as carbon offsetting. You know, the reality is is, as we all know, we’re not currently on this path, and I don’t think anybody knows exactly what this path is going to look like over the next twenty five years. But what we do know is that there’s significant global action underway currently to reduce carbon emissions. Over 70% of countries and over 50% of the 2,000 largest global companies have made net zero commitments.

And as a result, there’s a tremendous amount of capital currently being put to work to decarbonize the economy and to create sources of renewable energy. So for example, between 2020 and 02/1930, utility scale solar capacity is projected to grow by seven times. Carbon capture and storage demand is projected to grow by 11x. And voluntary carbon market issuance is projected to grow by 6x. So as a large owner of Timberlands, which also comprise a massive carbon sink, we really think that this creates a significant opportunity for our company.

As we talk about land based solutions, what exactly do we mean? Slide 15 provides an overview of how we broadly think about this business. We generally think of land based solutions as falling into three categories. The first is alternative and additional land use. And so that would include things like leasing land for solar or leasing land for wind farms.

It would also include leasing land and pore space for carbon capture and storage, which we tend to think of as an alternative land use I’m sorry, an additional land use because we continue to operate the surface for timber production. The second category would be carbon markets, and that would include regulated markets like the New Zealand emissions trading scheme that we participate in there, as well as voluntary markets where where corporations can purchase carbon offsets to to meet their net zero claims. And that’s primarily what we’re dealing with here in The US. And the third category is fiber for bioenergy and biofuels. So that would include things like using wood fiber for bioenergy with carbon capture and storage or BECs or using wood fiber for the production of biofuels such as sustainable aviation fuel, SAF, or green methanol.

Long term, we actually think that all of these different categories present a pretty significant opportunity. That said, we really see solar and CCS as being the most meaningful near term opportunities for Rayonier. So let me spend a few minutes and drill into those in a bit more detail. Slide 16 highlights the projected growth in utility solar development as well as the underlying land use math for utility solar. As you can see in the chart on the right, we’re expecting about 30 to 35 gigawatts of new utility solar capacity additions per year through 02/1930.

Now in terms of land use, each megawatt of utility solar capacity requires about seven acres of land. So to put that in context, that pace of solar development translates into an incremental land use need of about 200,000 to 200,000 acres annually, or that implies about 1,500,000 acres through 2030 that will need to be converted into utility solar. So again, there’s a big opportunity here for large landowners like us. Moving ahead to slide 18, this chart shows here on the right how our pipeline of solar options has grown over the past few years. As you can see in 2021, we only had about 7,000 acres under option for solar development.

At year end 2024, that number had grown to about 39,000 acres. So we feel really good about how this pipeline is developing. As some of these options start converting into leases over the next few years, we really see that translating into pretty significant cash flow growth over time. So now let’s shift gears and talk about carbon capture and storage. Slide 19 highlights our projected growth trajectory for CCS demand.

As you can see, CCS demand in The U. S. Is projected to grow from about 25,000,000 tons today to over 300,000,000 tons over the next decade. Of course, this is going to require a lot of suitable land and poor space, and that’s really where we come in. On Slide 20, we’ve outlined the key considerations for cost effective CCS.

So essentially you need three things for CCS to work. You need a concentrated source of high purity emissions that can be cost effectively captured. You need suitable geologic storage capacity to store the carbon, and you need access to pipeline infrastructure to move liquefied carbon from the point of capture to the point of storage. And as you can see here, Rainier has significant ownership across our land base that checks these three boxes. If you look at kind of where that demand exists, initial interest in our land has been within Louisiana and Texas primarily.

But we’ve also seen more recently that interest expand to Alabama and Georgia. So again, optimistic about how the pipeline is evolving here. Skipping ahead to Slide 22, here we’ve shown how our CCS leases have grown over the last couple of years. And this is something that, again, we’re very encouraged by. Over the last two years, we’ve gone from having essentially no acreage under CCS lease in 2022 to having over 150,000 acres at year end 2024.

So again, we’re very encouraged by the interest that we’ve seen in our land base and like solar, we’re quite optimistic about the long term cash flow growth potential of this business for us. On the interest of time, I won’t go into detail on carbon markets and bioenergy here, but suffice it to say, we see meaningful longer term opportunities here as well. With respect to carbon markets, I note that we continue to evaluate a range of opportunities. We’re actively engaged on a handful of pilot projects that we expect will come to fruition over the next couple of years. So I’m going to skip ahead to Slide 28 now, and I’ll touch briefly on some of the key results as it relates to our asset disposition program.

Recall that in November of twenty twenty three, we announced an asset disposition and capital structure realignment plan along with a $1,000,000,000 disposition target. And there are really two key factors that drove us to this decision. First, we wanted to reduce our target leverage from 4.5 times net debt to EBITDA to three times net debt to EBITDA in anticipation of what we saw as a higher for longer interest rate environment at that point in time. Second, we felt that our stock was trading at a pretty wide disconnect relative to our view of private market value and we wanted to take advantage of that arbitrage opportunity. Overall, we’ve been very pleased with how this program has evolved over the course of the last eighteen months.

To date, we’ve completed or announced about $1,400,000,000 worth of dispositions at multiples that are well in excess of where our stock has been trading over that period of time. So we really believe we’ve captured a significant value arbitrage opportunity here and we’ve also generated significant CAD and NAV accretion along the way. So I’m just going to skip ahead now to Slide 32 and I’ll wrap up by just reiterating strategy. Again, we have three key focus areas in our business. First, we’re focused on continuing to optimize our core timber operations.

Second, we’re focused on growing our land based solutions business with a near term focus on solar and CCS and a longer term focus on carbon markets and bioenergy. And third, we’re focused on leveraging our real estate platform really to maximize those real estate premium realizations across our land base. And ultimately, we believe as we execute on these strategies that this is really going to translate to value optimization and value creation across the portfolio. So that’s a very quick flyover of our business and I’m happy to open it up for questions.

Buck Horn, Raymond James housing analyst, Raymond James: Sounds good, great overview. Thanks for the time Mark. I want to back up a little bit to New Zealand and just talk through maybe just help us understand the background of that transaction, the thought process and rationale for why to exit New Zealand now. And of course, they freeze up a lot of capacity on the balance. You’re going to get a significant influx of cash from that.

So what are the priorities for that capital allocation? Is it can you almost deploy almost all of it back into repurchases and win?

Mark McHugh, Rayonier: Great questions. Just in terms of the strategic logic of divesting New Zealand, I’d start by saying that the collection of assets we have in New Zealand, it really is a strong set of assets. We’ve got a fantastic team in New Zealand managing those assets. But as we are looking at the best areas to potentially divest within the portfolio, we recognize that there’s really not a lot of synergy between our New Zealand business and the balance of our portfolio. It largely operated independently of our U.

S. Business. Again, we’ve got a great team there managing that asset, but we really didn’t see the synergy in continuing to own it. It was also owned through a joint venture structure, so it had some governance complexities. And when you put that together, I think The U.

S. Public markets didn’t really have never really fully appreciated that asset. I think it was a source of complexity in our story. Again, we’re the only public company that owns New Zealand Timberland assets. And so I think it was a part of our portfolio that just wasn’t that well understood.

And so we ultimately determined that we would look at divestiture opportunities for that portfolio. We ultimately were able to secure a transaction that we thought made sense both for Rayonier as well as the New Zealand business the buyer of that business. Again, we think that there are great longer term opportunities there, but just didn’t really fit with our portfolio or a public form of ownership. As it relates to how we intend to deploy that cash, you recall that we set out with a 1,000,000,000 disposition target when we laid out the plan back in November of twenty twenty three. With the New Zealand transaction, we ultimately landed at total announced divestitures of $1,450,000,000 And New Zealand was always going to be the big swing factor in terms of where that landed.

And so we by the end of twenty twenty four, we had divested about $750,000,000 of assets in The U. S. And so then when we announced New Zealand, that obviously took us well over that original target. I think we’re encouraged by just the flexibility that’s going to afford us going forward. After we close New Zealand, before any special distribution associated with New Zealand, we expect to be sitting on roughly $1,000,000,000 of cash.

And right now, we think share buybacks continue to be a very compelling opportunity and a very compelling use of capital given the disconnect that you alluded to earlier, Buck, by I think by your math, we’re trading in excess of a 30% discount to a private market view of NAV. And so I’d say that, that’s certainly the near term priority. We announced on our last call that we completed our last earnings call. We completed some buybacks through April, and we’ve also alluded to a 10b5-one plan that we put in place to be able to kind of act opportunistically on that through different periods of time. And so again, very encouraged about the value creation opportunity there.

And I’d say buybacks continue to be a priority. But we’re going to continue to be flexible and opportunistic as we think about capital allocation. I wouldn’t foreclose acquisition opportunities. But again, the bar is relatively high right now kind of given that opportunity on buybacks.

Buck Horn, Raymond James housing analyst, Raymond James: Makes sense. One of your competitors is out there actually doing some acquisitions recently and just maybe a lay of the land in terms of this disconnect in terms of pricing I think the public market has a hard time seeing through timber transactions and or the effective pricing you get a price per acre in one region but it has it compared to another region and sometimes you get you know different stocking levels and weird comparisons out there. But you know what’s the a good basis or thought process on where you think the private market is at and you know what is it that the private market is seeing in the value of timber that the public market is not?

Mark McHugh, Rayonier: Yes, it’s a great question. Look, when you’re comparing public market valuations to the private market, it can always be a bit challenging because I think there tends to be the lowest common denominator tends to be per acre values, but recognize that those per acre values can range pretty widely depending on the quality of any individual tract of timberland. And so we on average in The U. S. South, we tend to look to the Nacreif Index as being reasonably indicative of average quality Southern Timberland values.

That’s a private equity based index comprised of I think 8,000,000 or 9,000,000 acres or about $17,000,000,000 18 billion dollars of value. So it is probably the most broad based and kind of best reflection of a portfolio of average quality timberland because there is a reversion to the mean when you’re talking about millions of acres. I think at year end 2024, the average per acre value of the Nacreif Index sat just over $2,200 an acre. And as we kind of think about the relative portfolio quality, our relative portfolio quality as well as when we’re looking at acquisitions, again, are a number of factors that go into that. It’s where what in what market those assets are located.

Like I said earlier, the majority of our assets are located in top quartile markets from a pricing standpoint. You’d also look at the productivity the underlying productivity of the land, which again can range from probably three tons per acre per year, probably up to five tons per acre per year for more productive lands. And so all those factor into kind of how to think about the per acre value of land. But by almost any measure, again, you’d kind of look at where the timber REITs are trading today relative to any objective measure of where the private market is, and you’d say there’s a pretty pronounced disconnect there. Again, it’s going to vary pretty widely in the Northwest as well.

But as we kind of look at our portfolio, we think, a, we have a well above average portfolio quality in The U. S. South. We think with the divestitures we’ve completed in the Northwest, we really brought up the average portfolio quality there as well. And then we have a real estate development business that we think has really grown in value over time also.

And so like I said, we think that there’s a pretty significant disconnect with where the stock price is trading right now. And we’ve been capitalizing that through our buyback program.

Buck Horn, Raymond James housing analyst, Raymond James: Definitely agree.

Mark McHugh, Rayonier: Let me just

Buck Horn, Raymond James housing analyst, Raymond James: go to the thought process around environmental climate change risk in terms of just managing timber. You absorbed a hurricane last year and that created an influx of damaged trees and damaged sawlogs. Where are we at in terms of like the salvage activity and how do hurricanes play into your forecasting going forward and or even fire risks? How do you manage for potential fire risk when you’re managing millions of acres of forestry?

Mark McHugh, Rayonier: Yes, I’d say the biggest natural mitigant to any kind of casualty loss within a large portfolio of timberlands is just the geographic dispersion of those assets. When you hear a number like 1,800,000 acres, you tend to think the scale of that is just being enormous and you tend to think of these big blocked up chunks of land. And the reality is if you look at any large timberland owners portfolio and you actually look at a map of those lands, it more often looks like you sprinkled sand on a map. And so these are quite geographically dispersed lands and acreage. And so we deal with casualty risk all the time.

We deal with hurricanes, we deal with forest fires. But when we have had impacts, they’ve tended to be relatively minor. I think in the last twenty five years, Rayonier has had two casualty events that were just over $10,000,000 in aggregate each. And again, that’s a twenty five year history, dollars 5,000,000,000, dollars 6 billion, 7 billion portfolio of lands. And again, we deal with these risks.

They’re not unfortunately insurable risks, but they tend to be relatively minor in terms of how they actually impact us. You alluded to Hurricane Helene, and we’ve certainly seen impacts from Hurricane Helene, but they weren’t direct impacts. We actually had relatively minor direct impacts to our portfolio. The impact that we’ve seen is just that caused a lot of devastation of timberlands in that area. And so what that’s translated to is an elevated level of salvage volume in the market currently.

There’s a shelf life to that salvage volume. We tend when we have these casualty events, there tends to be six to nine month shelf life to go and salvage and harvest that timber. And then the longer term impact is that that timber has now come out of the market, it needs to be replanted, there’s going be a long period of time before it becomes harvestable again. So we’ll often see a pretty meaningful bounce back when you kind of get through those salvage activities. But that’s certainly what we’ve been contending with in Georgia here recently.

But we do think that longer term, we’re going to see those markets normalize.

Buck Horn, Raymond James housing analyst, Raymond James: Got a minute left, it’s going be a lightning round question for you on tariffs and the impacts and things like that. I guess the question is related to we have duties coming theoretically countervailing and antidumping which should raise the production costs on Canadian producers. Potential Section two thirty two could be applied at some point, we’ll see. But it feels like Canadian supply is going to be challenged in terms of lumber production, but that means there’s just been more production shifts to The U. S.

South. When do you think we kind of reach an inflection point in terms of like seeing that increased production or taking advantage of the increased capacity in The U. S. South and having that actually translate to better pricing power for sawlogs and pulp?

Mark McHugh, Rayonier: I certainly think that the increase in duties, countervailing and the antidumping duties that’s expected to come into place later this year, that’s expected to go from 14% currently, I think to roughly 30%. So we certainly think that that’s going to have an impact on the market. And the net effect of that should be less lumber production in Canada and more lumber production in The U. S, which should bode well for demand for sawtimber and sawtimber prices. ’s obviously talk of incremental tariffs around the Section two thirty two investigation and that remains to be seen, when or if those come into play.

But kind of irrespective of the Section two thirty two tariffs, we do think that as these duties come into play later in the year that that should be a tailwind for the for sawtimber prices.

Buck Horn, Raymond James housing analyst, Raymond James: Sounds good. We’ll have to leave it there. Thank you everyone for participating and joining. Thanks again to the Rainier team. Thank you.

Thank you.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.