Weyerhaeuser at Nareit REITweek: Strategic Moves and Market Dynamics

On Tuesday, 03 June 2025, Weyerhaeuser (NYSE:WY) presented at the Nareit REITweek: 2025 Investor Conference, outlining its strategic initiatives amid fluctuating market conditions. The company, a leading private owner of timberlands in North America, emphasized its focus on acquisitions, cost reductions, and shareholder returns, while also addressing challenges such as housing market trends and potential tariff impacts.

Key Takeaways

• Weyerhaeuser announced a $375 million timberland acquisition in North Carolina and Virginia, expected to close in Q3.
• The company is on track to achieve a $100 million annual EBITDA target for its Natural Climate Solutions business by the end of 2025.
• A $500 million investment in the Timber Strand project in Arkansas is projected to generate $100 million in EBITDA annually.
• Potential tariff increases on Canadian lumber could significantly impact market dynamics, with duties possibly rising from 14% to 34%.
• Weyerhaeuser has returned approximately $5.7 billion to shareholders through dividends and share repurchases.

Financial Results

• Timberland Acquisitions: Weyerhaeuser has exceeded its $1 billion target set in 2021, with the recent $375 million acquisition adding approximately 115,000 acres.
• Natural Climate Solutions: The company delivered $84 million in EBITDA last year and is on track to reach $100 million annually by the end of 2025.
• Operational Expense Reduction: Weyerhaeuser is progressing towards $175 million to $250 million in cost reductions and margin improvements.
• Shareholder Returns: Since launching its new program, the company has returned $5.7 billion to shareholders, completing a $1 billion share repurchase program in May and initiating another.

Operational Updates

• Timberlands Portfolio: The new acquisitions in North Carolina and Virginia are expected to yield over seven tons per acre, with a cash flow yield of over 5%.
• Princeton Mill Disposition: The sale was due to wood cost and availability issues, with the new owner expected to enhance the mill’s profitability.
• Lumber Production: Weyerhaeuser plans to increase lumber production to meet its 1 billion board foot growth target.
• Market Conditions: Single-family housing starts were below expectations, while multifamily housing showed strength. The repair and remodel market has remained flat.

Future Outlook

• Housing Market: Weyerhaeuser anticipates potential improvements in the housing market later this year, depending on favorable interest rates.
• Natural Climate Solutions: The company expects a significant increase in forest carbon sales and remains optimistic about renewables and carbon capture.
• Timber Strand Expansion: The Monticello facility is a focus, with potential for replication in other U.S. South locations if successful.
• Lumber Production: Plans to increase production align with the 1 billion board foot growth target.

Q&A Highlights

• Timberland Acquisition: Emphasized the importance of return on investment over price per acre, noting the strong cash return profile of the new properties.
• Deal Sourcing: The acquisition was facilitated by industry relationships and Weyerhaeuser’s ability to offer quick cash and close deals rapidly.
• Lumber Production Ramp-Up: Confirmed plans to increase production, leveraging existing capacity and improved market conditions.
• Natural Climate Solutions Outlook: Expressed optimism about growth despite current political challenges.

In conclusion, Weyerhaeuser’s presentation at the Nareit REITweek: 2025 Investor Conference highlighted its strategic focus on acquisitions, operational efficiency, and shareholder returns. For further details, readers are encouraged to refer to the full transcript.

Full transcript - Nareit REITweek: 2025 Investor Conference:

Buckhorn, Raymond James housing analyst, Raymond James: Alright. We are good to go and live for the webcast. So I wanna thank everyone for joining us for the three 03:15 session. My name is Buckhorn. I’m the Raymond James housing analyst also covering all residential REITs and timber REITs, that includes Weyerhaeuser.

And really thrilled to be able to, to my left, I’ve got Devin Stockfish, the CEO and Davey Wohl, the CFO of Weyerhaeuser to talk timber and a lot of interesting things that have been going on at the company. Obviously, housing market has not cooperated as well as we would have anticipated or liked to start the year, but things are I think hopefully bottoming out here. So we’ll get the update from Devin here and they’re certainly not sitting on their hands in this environment. That’s the good news. So lots of things to talk about and I’ll turn it over for a few intro remarks and then we’ll dive into some Q and A.

Devin Stockfish, CEO, Weyerhaeuser: Great. Thanks Buck. Well I’ll keep it pretty brief. We don’t have a lot of time so we want to make sure we have plenty of time for Q and A. Here’s a quick overview for those that don’t follow the company as closely.

We are the largest private owner of timberlands in North America. We have about 10,500,000 acres of high quality timberlands across the Pacific Northwest, The U. S. South and the Northeast. We’re also one of the largest manufacturers of wood products.

We make lumber oriented strand board, a variety of engineered wood products. We have a distribution facility as well. And then our final business segment is real estate, energy and natural resources, and that’s really all about making sure that we’re capturing the maximum value from every acre we own. We do that through real estate, a variety of other activities, including our Natural Climate Solutions business, which I suspect we’ll talk about a little bit here today. Maybe I’ll just really quickly give an update on how we’re progressing against the multiyear targets that we laid out a few years ago.

One of our targets that we laid out back in 2021 was a $1,000,000,000 of Timberland acquisitions over a multiyear period. We just recently announced an acquisition in North Carolina and Virginia. With that acquisition, which we expect to close in Q3, we’ll be at about $1,100,000,000 acquisitions over this period. We also announced a goal to grow a natural climate solutions business, which covers everything from carbon, carbon capture and sequestration, solar renewables, mitigation banking to grow that business to $100,000,000 per year of EBITDA by the end of twenty twenty five. Last year, we delivered $84,000,000 against that goal.

We’re on track to hit the $100,000,000 by the end of this year. We’re making good progress against our multiyear OpEx goal. We had set out a target to take out around $175,000,000 to $250,000,000 of cost and other margin improvement initiatives over the course of that period. I think we’re tracking quite well to hit that target by the end of this year. And then just lastly around cash returns.

Since we laid out our new program, we’ve returned approximately $5,700,000,000 of cash through a variety of dividends and share repurchase. In fact, we just closed out our $1,000,000,000 share repurchase program at the May, put a new $1,000,000,000 program in place and continue to make progress against that. So a lot of activity. Buck, I probably will leave it there so we have lots of time to cover some of the things we’ve been doing here lately.

Buckhorn, Raymond James housing analyst, Raymond James: There is a lot going on here. Obviously, guys are very active in the market right now. So let’s dive into the acquisition a little bit. The North Carolina and Virginia deal opened quite a few eyes I think in terms of the pricing. But what are the characteristics of that particular deal?

What made it attractive right now? And kind of compare and contrast the opportunities in terms of the capital cost.

Davey Wohl, CFO, Weyerhaeuser: Sure. Well, Buck, as you know, we have a team of people that are focused all the time on sourcing deals. I don’t think there’s anybody else in this space that’s got the resources both in terms of people as well as the tools and technology to be approaching the timberlands market. And so when we think about the investable universe of timberlands using those technological tools that we have, we can really hone in on the acres that we want to own. And so anytime you see us look at an off market transaction, it’s very likely that we really desired those timberlands.

And when we look at these particular acres, as Devin mentioned, located in North Carolina and Virginia, about 115,000 acres, about $375,000,000 on the purchase price. These are immediately going to be some of the best timberlands in our portfolio, probably the best among our U. S. South timberlands. When we think about metrics like harvest tons per acre up over seven tons per acre is what we anticipate.

When we think about the timber only cash flow yield of a little over 5%, those are phenomenal metrics and immediately, again, become some of the best in our portfolio. So as we mentioned in our press release, we’re looking to divest some other timberlands to pay for this. So we really look at this as upgrading the quality of our portfolio and thinking about how can we make sure we’re maximizing the cash yield across our portfolio. In the past, when we’ve done transactions like this on both the buy and sell side, we’d expect to add a couple points from a cash flow yield perspective in making those swaps. So very excited about the opportunity, unique opportunity in the off market manner and again very pleased to add it to our portfolio.

Buckhorn, Raymond James housing analyst, Raymond James: Yes. And speaking to that, so you mentioned it was sourced off market. You reached the deal with this particular seller. What is the state of the M and A market? What would it have been like if you think this acreage had come to market in an auction process?

I mean what’s the what is the bid like in the private market for high quality timber?

Davey Wohl, CFO, Weyerhaeuser: Sure. Yeah. Our observation is that the market remains very strong, especially for high quality timberlands. We saw some transactions last year that maybe struggled a little bit, some lower quality packages where we had to maybe the seller had to recalibrate expectations in terms of what the market was offering for some of those lower quality deals, having seen some high price per acre on some of the better quality deals. But really for the high quality packages, we haven’t observed much of a change in how those are trading.

And in fact, I’d say they’ve continued to be quite strong. There’s a lot of capital that’s out there pursuing those, a lot of capital that’s been raised over the last couple of years. And so last year was still a relatively normal year, a little over $2,000,000,000 or so in Timberland transactions. This year, we expect to be another normal year. There’s a couple of packages out there.

So again, for those high quality deals, we expect to see continued strong interest, really reflecting the recognition of all the different things that you can do with timberlands, all the optionality that’s inherent and certainly that’s a big part of our growth in the natural climate solutions space.

Buckhorn, Raymond James housing analyst, Raymond James: Well, can think of one high quality timber portfolio that’s on sale right now, it’s your own stock. So when I think of on my numbers, you’re certainly north of a 30% NAV discount. I’m not sure exactly where consensus is, but I don’t think it’s that far off. How do you weigh and balance the opportunity for whether you’re doing this particular type of acquisition versus more repurchases? Is it yes to both?

It kind of seems like that may be the answer, but how do you frame the trade off there?

Davey Wohl, CFO, Weyerhaeuser: Yeah. On the Timberland side, I would just emphasize again that we really view this as a way to upgrade the quality of our portfolio. And so we viewed that transaction as so unique that we felt like we really needed to pursue that one. And again, we’ll fund that through some divestitures of other timberlands. So we really think about that bucket separately from how we think about share repurchase.

You’re right. At the trading levels right now, it’s a very attractive lever to be out there repurchasing our shares, and that is why we leaned in in the second quarter, wrapped up that first billion dollar authorization, and announced the next billion dollar authorization. So we’ll continue to evaluate that, but we do have some growth opportunities that we’re evaluating. Our Timber Strand facility, the new facility that we announced in Monticello, Arkansas, is something that we’re going to be deploying capital towards over the next couple of years. So really it’s a matter of weighing all the opportunities and allocating our cash in a way that creates the most value for shareholders.

Buckhorn, Raymond James housing analyst, Raymond James: Let’s talk about one source of capital, maybe this recent disposition in Princeton in one of your Canadian mill operations recently selling. Can you talk about like the thought process around what led you to this particular deal and who’s the buyer is and what kind of the economics look like for that transaction?

Davey Wohl, CFO, Weyerhaeuser: Sure. So the Princeton mill has been a phenomenal mill for us. Great people, great assets, but it is unfortunately located in a very challenging wood basket. I think many of you have heard about the challenges. There’s been fire.

There’s been pests. There’s been government restrictions on harvest levels. And so as we look out into the future, the wood cost and availability is something that’s going to limit the ability for that mill to be profitable over time. And fortunately, the buyer of the facility is somebody that’s local in that area, committed to that mill. They have been a long customer of the Princeton mill.

They take that product and remanufacture it into a higher quality product that has a different market, different profile, so some different dynamics there associated with their business. And they’ll be uniquely situated to drive value over that facility over time in a way that maybe is different from us. So really pleased with our ability to capture that capital and reallocate it into other places.

Buckhorn, Raymond James housing analyst, Raymond James: And maybe we can just dive a little bit into the kind of the high level housing overview and kind of where your end markets are at in terms of what your customers are telling you either on the single family side or the R and R side. How has the year played out relative to expectations and kind of how do you see this playing through the rest of the year?

Devin Stockfish, CEO, Weyerhaeuser: Yes, I mean really at a high level, one of the big demand drivers for most of our products is single family housing. And we had certainly expected things to be a little bit stronger than it has turned out to be the case. It’s not horrible, it’s just not as strong as we would have expected. The underlying macro dynamics around underbuilding demographics, etcetera, are still very much there. This has just been a challenging year in terms of interest rates are still a little on the high end from a mortgage rate standpoint.

And there’s just been a lot going on, the daily news around we have tariffs, we don’t have tariffs and just a lot of uncertainty. And I think that’s really kept a lot of people that otherwise would be in the market to purchase new homes on the sidelines And so it’s been a little below where we had expected. The April starts numbers were down around 924,000 in that general vicinity. Although the new home sales numbers that were announced just a couple of weeks ago were a little higher than expected.

So maybe a little mixed message. We certainly haven’t thrown in the towel for housing this year. To the extent that we can get a little certainty or a little help on interest rates, I think there’s still an opportunity for housing to pick up a little bit over the course of the year. But given where we are today, certainly a little bit below our expectations coming into the year. On the flip side of that, the multifamily space, which doesn’t use as much wood as single family, so it’s not as important.

We have seen a little bit more life in that space here recently, and so maybe there’s a little bit of a rebound going on there. Our expectations coming into the year was multifamily probably wasn’t going to pick up meaningfully until toward the end of this year, maybe even as early as as late as early next year. So that’s been a little bit surprising to the positive. Repair and remodel, that’s been pretty steady. We have line of sight into that market through our sales into the home improvement warehouse stores, Lowe’s, Home Depot.

So we have pretty good visibility on how sales are tracking there, and that’s been more or less flat year over year to date. We do think there’s some opportunity for upside over the back half of the year in R and R, and so that may be a little bit of a tailwind as we get a little bit further into the year. So net net, we’re probably down just a little bit relative to where we thought we would be primarily just as a result of single family. But I do think that there are some dynamics that are probably going to come into play on the regulatory side, and maybe we’ll get there here in a moment with duties and tariffs and some things of that that have the potential to shake things up a

Buckhorn, Raymond James housing analyst, Raymond James: You’re teeing it up for me pretty nicely there. So let’s just jump into tariffs and was part of the I think you saw the stock was outperforming quite nicely into the fourth quarter. And I think there was a thought process that well with these new tariffs and potential impact on Canadian lumber, Weyerhaeuser and the rest of the timber industry could be a prime beneficiary of that. And then we kind of got whipsawed on the implementation or the exemptions of how those tariffs would be rolled out. But then for those that aren’t as familiar, there’s what we call the Section two thirty two tariffs, but there’s also these countervailing and antidumping duties, which are kind of separate and distinct.

And it feels like those are going to actually come to fruition in the back half and yet the market is not pricing in anything relative to that. So how do you see all this playing out? Give us the breakdown.

Devin Stockfish, CEO, Weyerhaeuser: Yes. I mean, look, it is a complex landscape when you’re talking about tariffs right now and we’ve certainly had a lot of back and forth. I will just say at the outset and we’ll kind of get into the details. The one thing I would say as a backdrop, this administration is very supportive of our industry. I think if you go back in time, you very rarely heard a president talk about lumber and timber as much as President Trump.

And that’s really true across the administration and the different agencies. They are trying to be supportive of the domestic manufacturing of a strong U. S. Forest products industry. And so there is, I think, a desire and a willingness to be supportive and try to find ways to help our industry.

So that’s great. We appreciate that. As you think about the duties and the tariffs, I’ll start with duties. That is one area where I think we do have some more clarity. We know at some point, dates still TBD, anywhere from July through September, the duties on lumber coming in from Canada are going to go up from 14% to 34%.

That is a very steep increase. We really haven’t seen a jump of that magnitude in a very long time. That is going to have an impact, Right? And so when those duties do come into effect, they will announce that any day now. We’ll have a little bit more clarity.

And I think to your point, we really haven’t seen buying activity or buying behavior change because people don’t know when that new duty rate is going to come into effect. My assumption is you probably anywhere between two to four weeks before the effective date, you’re really going to start seeing buying activity and buying behavior change in anticipation of that. If you sort of step back and think about it from a Canadian standpoint, prices are going to have to go up enough to make the Canadian manufacturing base, at the very least, cash flow breakeven. And so you should see when those come into effect some increase in particularly SPF lumber prices, and I would anticipate the other species would follow along behind that. So that’s one thing that we know.

You know, the broader tariff environment, it is challenging to determine exactly how that’s going to play out. For reference, there is what they call a two thirty two investigation going on right now with the Commerce Department, and that very well could result in some additional tariffs for wood products entering The U. S. So that would be presumably over and above the tariffs on Canadian lumber coming in would pick up lumber coming in from Europe and other markets as well if that’s the direction that ultimately goes. So I think the dynamic is going to be a little bit more certain as we get deeper into the summertime, and would expect it would change the buying behavior in the market.

Buckhorn, Raymond James housing analyst, Raymond James: Absolutely. I mean a 20 percentage point increase in the duties and going into directly into the cost of so maybe help us understand to your understanding, I mean what capacity would some of these Canadian producers have to eat some of that tariff incremental duty to offset that or is it really just going to have to get strictly passed through straight to The U. S. Consumer? Or how do you think that, that gets

Devin Stockfish, CEO, Weyerhaeuser: There’s a little margin in the system to eat some of that increase in duty, but some of that’s going to have to be passed on for them to remain cash flow breakeven. So I think as we look out into the back half of the year, you’re going to have to see prices go up

Buckhorn, Raymond James housing analyst, Raymond James: some most Canadian producers’ costs cash production costs are probably either close to or right at $500 per thousand board feet.

Devin Stockfish, CEO, Weyerhaeuser: That’s right. That’s right. And it’s differential by province. Obviously, in British Columbia, it’s a little bit higher. Alberta, a little bit lower.

But on average, you’re not far off.

Buckhorn, Raymond James housing analyst, Raymond James: Theoretically, I mean, you add these 20 percentage points. I mean, they’re going to be certainly north of 500, right?

Devin Stockfish, CEO, Weyerhaeuser: Well, mean lumber prices are hard to predict, so I’ll just start with that. But directionally, they would seem to go up And remember, for us, we have a lot of leverage to lumber prices. For every $10 of lumber price, that’s $50,000,000 of EBITDA for our company. And so to the extent that you see a move in lumber prices as we get into the fall, that can have a pretty significant impact on our cash flow.

Buckhorn, Raymond James housing analyst, Raymond James: Can we talk just a minute about OSB pricing and just kind of how what’s going on in the OSB market that maybe is a little bit different than the lumber side?

Devin Stockfish, CEO, Weyerhaeuser: Yes. I mean OSB has a little bit different end market, and that’s more focused on the single family space. And so as we’ve seen single family maybe not having as much momentum year to date as we would have expected, you’ve also had a little bit of capacity that’s come online from some new OSB mills. It’s just gotten that supply demand balance a little bit out of whack. And the challenge with OSB is there’s a fairly narrow band around that supply demand equilibrium.

And when you get too far above or too far below, you can see prices move. And that’s really you need something to kind of shake that loose whether that’s an increase in demand or some supply dynamic change that plays out over the back half of the year.

Buckhorn, Raymond James housing analyst, Raymond James: Got you. Got you. We circle back to something Davey mentioned about this timber strand project, the decision to go forward with an entirely new facility, it’s a multiyear build out. It’s going to be several hundred million dollars, but what’s the thought process behind this particular product and its location? What are the opportunities for Yes.

Devin Stockfish, CEO, Weyerhaeuser: I mean it’s one of the most exciting projects we’ve done in a very long time. We haven’t done a greenfield project in many, many years. And it all starts with our optimism and our excitement around the Timber Strand technology. One of the things when you think about engineered wood products, a lot of the products that are in the engineered space come from gluing veneer together. It makes a great product.

But the challenge with veneer is veneer logs are really expensive. The thing that makes timber strands so unique is we make this product out of logs that otherwise would have gone into the pulp log pile. So the input costs are dramatically lower than the input costs for making engineered wood out of veneer. And so when we think about this, we currently have one facility in Kenora, Ontario, great mill. It’s always sold out.

We really haven’t had the opportunity to grow market share. So we’re business. We’re seeing a timber, and an area, by the way, that’s had several pulp and paper mills closed down over the last five or ten years. So it’s a market that really could use some pulp log demand. So there is an immediate benefit for our timberlands business by putting this facility in.

It’s going to use a lot of pulp log fiber in that region, which should cause pulp log prices to go up. So there’s a synergy benefit we get with the timberlands business. But over and above that, we’re investing $500,000,000 in this project. We expect to generate about $100,000,000 of EBITDA when it comes up online fully. This product has a lot of optionality in terms of end markets.

You can on one end of the spectrum, you can use timber strand as a replacement for 2x4s in high value homes because they never crook, they never twist, they never they are a very precise product. And so these are higher end homes that would use it for that purpose. In a regular single family home, there are all kinds of different usages from beams and headers and just a whole bunch of different things you can do in a single family house. You can use it in industrial applications, and we do sell some of that out of our Canora facility, all the way to on the mass timber space. I think there’s some very interesting applications in mass timber for this product.

So we’re really excited about it. Davey and I in two weeks are going to be down in Arkansas at the groundbreaking. It’s progressing well and we’re really excited to bring this online. And I think we’ve got a lot of new product innovation on top of that that will really be based off of this technology.

Buckhorn, Raymond James housing analyst, Raymond James: But you had a very successful facility in Ontario, but this is the first time you’ve someone and so tried to use Southern Yellow Pine as a for doing this. I guess what have you guys figured out that no one else has quite figured out and what’s different about this type of product?

Devin Stockfish, CEO, Weyerhaeuser: Yeah. I mean, nobody’s figured out how to make this kind of product out of softwood generally. It’s typically made out of hardwood species. Softwood is a little bit more challenging because it degrades, and so you have to get the length and the width really dialed in. But the thing that Weyerhaeuser has going for us, we have some of the most brilliant wood scientists on the planet, and we’ve dialed it in.

And so we’re going to make this product out of southern yellow pine. It will be very hard for anyone to replicate this, both because it’s hard to make timber strand to begin with, but then on top of that making it out of a softwood is very challenging technically. But we’ve got some great people that have figured it out and it’s going be exciting

Buckhorn, Raymond James housing analyst, Raymond James: for us. It sounds exciting. It sounds like there’s a tremendous amount of applications which demand for it would be huge, would think. What kind of economics are you thinking of? What kind of projected EBITDA yields?

Devin Stockfish, CEO, Weyerhaeuser: Yes. Again, so $500,000,000 investment, dollars 100,000,000 of EBITDA from the mill that does not include the synergies that we’re going to drive from the Timberland space both in terms of logistics benefits because it’s going to be located right in the middle of a bunch of our timberlands as well as uplift on pulp log prices. So really attractive returns for us.

Buckhorn, Raymond James housing analyst, Raymond James: One of the big challenges for the entire U. S. South industry has been the weakness in pulp logs due to all the pulp mill shutdowns, which has occurred. Could this be something that could be replicated across different parts of The U. S.

South?

Devin Stockfish, CEO, Weyerhaeuser: Yeah. Mean we’re going to do this one first. So not committing to the next mill yet, but we’re really excited about this product. I have a high degree of confidence that we’re going to be able to sell this mill out, at which point we’ll look at what’s next. But certainly, we have a lot more optimism than just one mill around the opportunity set.

Outstanding. Yes, good question. So with respect to your first question, I’ll answer with respect to Weyerhaeuser specifically and then maybe comment industry more broadly. So for us, we can ramp up production and I think you will see us ramping up lumber production this year. We have been doing a lot of work building capacity over the last several years as part of our billion board foot growth plan.

Because the market was really challenged last year, you didn’t really see a lot of that. You’re going to see us ramping up lumber production this year and again next year to really get close to that 1,000,000,000 board feet. So we have more opportunity. I think the industry as a whole in The U. S.

Has an opportunity to ramp up production. Just because of the market dynamics that we’ve seen over the last twelve to eighteen months, a lot of mills and this is true in the South, it’s true in the Pacific Northwest to some extent as well have been running at operating rates that are below where they could otherwise So there is some capacity in the system to ramp that up as needed if the economics make sense. With respect to the natural climate solutions, we have a whole host of different solutions that we offer in that business from forest carbon, which is what I think you’re referring to, renewables, carbon capture and sequestration. I think at a high level, there’s no question that the commentary with the current administration is a little less supportive, to say the least, of some of these programs. But nevertheless, we look at our various solutions, whether it’s forest carbon renewables, carbon capture and sequestration, we’re still seeing good momentum.

Forest carbon, for example, that’s a process that we’ve been working on growing that pipeline over a number of years. This year, you’re going to see a healthy jump in our forest carbon sales. Last year, we sold about 50,000 units at, call it, north of $30 per ton. This year, we expect to increase that by five to 10x, depending on how quickly we can get some of these through the approval process, and that pipeline continues to build. So we still feel good about the growth of that.

Renewables, there’s a lot of debate going on right now around tax credits and that to some degree could impact things in the short term. But the longer term, I think trajectory of renewables is we need that power when you look at the demand and particularly with respect to data centers, you’re going to need that power. And so we expect that to continue to grow. And that’s been what we’ve been seeing from our vendors. And then lastly on carbon capture and sequestration, there is a tax provision that’s supportive of that.

It remains available coming out of the House reconciliation bill. We think that’s going to be the case with the Senate too. As long as that stays in place, we expect that business to continue to grow. So the commentary and the rhetoric are a little different at present, but we think the underlying fundamentals are still positive.

Buckhorn, Raymond James housing analyst, Raymond James: Yes, go ahead.

Devin Stockfish, CEO, Weyerhaeuser: So the way I would you know, so the one thing that’s always tricky when you’re looking at Timberlands deals is if you just look at the price per acre, I don’t think that necessarily tells the story. It’s all about what kind of return on the investment you can get. And so whether it’s 2,000, 3 thousand, 4 thousand, for us, it’s all about how can you dial in the return profile. From a cash on cash basis, strictly timber, this is a very strong cash return profile property. It’s got a relatively mature age class, which means you’re going to get a lot of that harvest over the first five, ten, fifteen years.

It’s in a good market, good stocking, well managed. So the cash return profile just from timber is on the high end of what we own in The U. S. South. You layer on top of that, which we didn’t necessarily underwrite and that’s not part of the 5.1% cash on cash return that we highlighted in the news release, real estate, natural climate solutions, solar.

It has some synergies with our mill. We have a sawmill that’s in relatively close proximity. There are a lot of other things that go on top of that. This is really one of the best deals we’ve had an opportunity to participate in, in quite some time. So yes, you’re absolutely right.

The price per acre was on the high end, but the return thresholds and the return profile are also on the high end. And you said it was an off market transaction, so it means it wasn’t marked. Correct. It didn’t come to auction. It was a private conversation between our company and Roseburg.

And so just we know everybody in the industry, and so we’re always in the market having conversations. And for properties that we covet, we make sure that the people who currently own those properties know if you’re ever interested in selling, come talk to us first. And that doesn’t always work. And typically, people are inclined to go out and market it to a broader group of folks. But a warehouse usually compare a fair price, and we can do deals quickly.

We can come up with cash quickly and move to close in an expedited manner. And so in many instances, that’s how we can get these deals done without them going to auction.

Buckhorn, Raymond James housing analyst, Raymond James: All right. Thanks everyone. I’m going have to leave it there. Thank you, Devin. Thank you, Davey.

Appreciate everybody’s questions and participation. Thank you.

Devin Stockfish, CEO, Weyerhaeuser: Thanks everyone.

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