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Timberland Investment
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Sponsored by...

Sponsored by... | Timberland Investment | Scoop.it

Prentiss & Carlisle  is one of the largest timberland asset managers in North America. P&C provides ongoing management services on approximately 1.75 million acres of timberland located in Maine, Michigan, New York, Vermont, Wisconsin, Ontario and Quebec. Nearly every acre under management is certified by the Forest Stewardship Council through either our clients or through P&C itself, which holds FSC certificates for both Forest Management and Chain-of-Custody.


P&C provides turnkey land management from long-range forest planning through on-ground forestry, marketing of forest products, harvesting, transportation, road construction and maintenance, stump-to-mill accounting and reporting, client cash management, administration of third-party relationships, public advocacy/representation and strategic asset planning. P&C also provides specialized consulting services in related areas of expertise:

  • Timber inventory design, execution and analysis
  • G&Y modeling and timber harvest scheduling
  • GIS mapping and data management services
  • Timberland valuations and appraisals
  • Acquisition and disposition due diligence
  • Market studies
  • Timber supply modeling


About this magazine

Our aim is to provide a gathering place for news and opinion about timberland investing. We cover both publicly traded issues including listed timber companies, real estate investment trusts (REIT's), and exchange traded funds (ETF's), and the more private world of institutional investing in timberland. Our focus is on: the rationale for investing in timberland; performance of publicly traded timber investments; timberland deals and transactions; timber supply, demand and prices, and; public policy issues that impact timberland investing. Not interested in all of these topics? You can easily filter the stories by using the Tags button above.


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Some useful links


Stock quotes, news and financial metrics

These links take you to customized Google Finance pages for timber REITS, indexes and other publicly traded companies of interest:


Prentiss & Carlisle newsletters

Quarterly updates on conditions in our operating regions


Timber Mart North 

Lake States price reporting service published by P&C


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Non-U.S. Companies Should Use Caution When Investing in U.S. “Agricultural Land”

Non-U.S. Companies Should Use Caution When Investing in U.S. “Agricultural Land” | Timberland Investment | Scoop.it

A non-U.S. company that buys or sells U.S. real estate that is or once was used for agricultural purposes may face reporting requirements in connection with such transactions. These reporting obligations might apply whether or not the non-U.S. company typically engages in real estate transactions, and whether or not a specific transaction was centered on the transfer of real estate.
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The reporting obligations described above are contained in the Agricultural Foreign Investment and Disclosure Act (AFIDA), which is administered by the U.S. Department of Agriculture’s Farm Service Agency (FSA).
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Among other reporting triggers, a “foreign person” must file a report within 90 days of acquiring or transferring (i.e., selling) any interest in U.S. “agricultural land.” A foreign person also must file a report when it (i) holds or acquires any interest in agricultural land when not a foreign person, and subsequently becomes a foreign person; or (ii) holds or acquires any interest in land when such land is not agricultural land, and such land subsequently becomes agricultural land.
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Under the AFIDA regulations, “agricultural land” means land (i) used for forestry production or (ii) within the last five years, used for farming, ranching, or timber production (with limited exceptions). Further, an “interest” in agricultural land includes fee interests and leasehold interests of 10 years or more; it notably does not include contingent future interests (i.e., options).

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Lumber Prices Head Upward Along With Homebuilding

Lumber Prices Head Upward Along With Homebuilding | Timberland Investment | Scoop.it
Prices for lumber futures contracts are beginning to rise, after drifting down for months. China's homebuilding contraction and a winter hiatus knocked down prices, but they should jump dramatically as U.S. homebuilding surges.
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Forisk U.S. Housing Starts Forecast Updated

Forisk U.S. Housing Starts Forecast Updated | Timberland Investment | Scoop.it

Each quarter when updating our Forisk Research Quarterly forecast models, we review prior projections to learn. In 2014, total housing starts increased 7.3% over 2013. Looking forward, Forisk projects growth of 12.5% in 2015. Forisk’s Housing Starts Outlook combines independent forecasts from professionals in the housing industry. These include Fannie Mae, Freddie Mac, Mesirow Financial, the National Association of Home Builders (NAHB), The Conference Board, and Wells Fargo (Figure).


Overall, Forisk projects 2015 housing starts of 1.13 million, down 4.9% from 1.18 million as of January 2015. Forisk’s 2015 Base Case peaks at 1.59 million housing starts in 2019 before returning to a long-term trend approaching 1.51 million. For comparison, our August 2014 Base Case peaked at 1.58 million housing starts in 2019.

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SEC to expand alternative investment examination program to include timber

SEC to expand alternative investment examination program to include timber | Timberland Investment | Scoop.it

Securities & Exchange Commission plans to expand its ongoing alternative investment examination program to other alternative investment managers including credit advisers, infrastructure and timber managers, said Marc Wyatt, acting director of the SEC's office of compliance inspections and examinations, in a speech on Wednesday at the Private Equity International Compliance Forum in New York.


The OCIE unit has now completed presence exams of 25% of the newly-registered private fund managers including private equity and hedge funds, he said. It also started examinations on real estate firms last year.
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In exams that started last year, SEC officials have discovered that some real estate managers that also provide property management, construction management, and leasing services to properties they manage for their limited partners charge the cost of the employees who provide those services to investors. Many times investors have agreed to these charges based on the understanding that investors will be charged below market rates. However, SEC officials have found that real estate managers often cannot adequately substantiate those claims.

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Risk management is biggest concern for institutional investors — survey

Risk management is biggest concern for institutional investors — survey | Timberland Investment | Scoop.it

Increased complexity in risk management is the biggest concern for institutional investors across the globe, a new survey shows.


Commissioned by BNP Paribas Securities Services and conducted by polling firm YouGov, the survey found the idea that risk management will become more complex is the biggest concern for 23% of respondents.

The survey spoke to 177 asset owners representing $6 trillion in total assets. A further 14% said the biggest concern was hiring and retaining talent; and 11% each said the ability to efficiently manage costs and the ability to efficiently use capital were the biggest concerns.
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Respondents were made up of 34% from insurance companies; 33% from pension funds; 14% from official institutions including central banks, supranational agencies and sovereign wealth funds; and the rest from corporations. Geographically, 41% of respondents were from Europe, the Middle East and Africa; 32% from the Asia-Pacific region; 16% from North America; and the rest from South America.

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Apple Partners With World Wildlife Fund on China Forest Initiative

Apple Partners With World Wildlife Fund on China Forest Initiative | Timberland Investment | Scoop.it
Apple is expanding its environmental protection and renewable energy push in China, announcing that it has partnered with World Wildlife Fund to protect up to a million acres of sustainable forest land in China to produce the fiber used in Apple packaging and products.

The deal will put the WWF in charge of managing as much as 1 million acres of forest in China as Apple works to achieve a net zero impact on the environment for all of the virgin paper products that it uses.

Apple is also partnering with several Chinese power companies to create two more solar farms. The company’s first solar project in China, started only three weeks ago, will produce enough power to run all of Apple’s corporate offices and retail stores in the country.
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A billion-dollar wildfire season looms, with new homes sprouting in its path

A billion-dollar wildfire season looms, with new homes sprouting in its path | Timberland Investment | Scoop.it

As most of Minnesota remained at high risk of forest and grassland fire this week, the nation’s wildfire fighter-in-chief told Congress that he’s expecting another unusually tough, billion-dollar, possibly budget-busting year.


And not just in the typically hot zones of California, Arizona and Colorado: “We anticipate another active fire year as above normal wildland fire potential exists across the north central United States,” Tom Tidwell, chief of the U.S. Forest Service, told a Senate committee on Tuesday, “and above-normal wildland fire potential will threaten many parts of the West this summer.”


The service’s middle-of-the-road prediction for its costs in the coming 2015 fire season is $1.225 billion, with a 10 percent chance of exceeding $1.6 billion (and also, to be fair, a 10 percent chance of coming in under $800 million).


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Plum Creek Timber (PCL) Rick R. Holley on Q1 2015 Results

Plum Creek Timber (PCL) Rick R. Holley on Q1 2015 Results | Timberland Investment | Scoop.it

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Steven Chercover - D.A. Davidson & Co.
Okay. And then second, I don't think I've ever seen you buy back stock at $42. We can round up the last $0.03. Is that the highest price ever, and can you give us some – I thought it was interesting you said that your southern land is worth $600 an acre more than it was before. I mean what kind of discount to NAV do you think is appropriate?

Rick R. Holley - Chief Executive Officer & Director
Well, as you know, we don't provide NAV, but we do it internally. We don't provide it externally. But clearly at $42, we thought that was a significant discount to our NAV and therefore, willing to buy shares back at that price. And yes, that's the highest price we've paid in our share repurchase program that has been in place over the years.
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Chip A. Dillon - Vertical Research Partners LLC

Okay. I got you. Now, you mentioned also that the sales, that the pace of timberland sales this year, would likely be quite low and in that vein, you mentioned supply constraints of lands on the marketplace. Does that present an opportunity for Plum Creek to perhaps think about maybe being a seller? You had mentioned on previous calls that in recent quarters that you thought some timberland transactions were being done at unusually low cap rates and maybe that would present an opportunity.

Rick R. Holley - Chief Executive Officer & Director

Yeah. We're going to look at – certainly, as we mentioned in our comments and throughout the number, $100 million. But again, we'll be very opportunistic given the demand in the marketplace, lack of supply. If we see excellent prices, clearly, $100 million plus of what we'll view as core timberlands, but less strategic and non-strategic core timberlands, we'll move into the market. We just think...

Chip A. Dillon - Vertical Research Partners LLC

And that could happen this year conceivably, right?

Rick R. Holley - Chief Executive Officer & Director

Yes, probably in the second half of the year.

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Who Will Own the Forest 11 now open for registration

Who Will Own the Forest 11 now open for registration | Timberland Investment | Scoop.it

Institutional investors have been allocating part of their portfolios to timberland as they seek diversification, inflation protection, and potentially higher rates of return than the bond or equity markets.

The Who Will Own the Forest? conferences offer a wide range of perspectives on institutional timberland investing, both domestically and overseas.  We invite you to join our discussions as we address this maturing and evolving asset class, and examine the issues that will impact the demand for commercial timber, diversify values from forestland, and maximize returns to investors. 

This 2½ day conference offers both networking and educational benefits, including continuing education credits for certified foresters, appraisers, attorneys, and CPAs.  Day One is focused North American issues, while Day Two covers the global and emerging markets landscape.

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DCNR to add 17,000 acres to Elk State Forest

DCNR to add 17,000 acres to Elk State Forest | Timberland Investment | Scoop.it

Acting [Pennsylvania] Department of Conservation and Natural Resources (DCNR) Secretary Cindy Adams Dunn announced Friday that the department is adding more than 17,000 acres of wooded land and waterways to the adjacent Elk State Forest — the largest land addition to the state forest system in 65 years.

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The state invested $7.2 million to purchase the land, which came a fund from mitigation payments for rights-of-way and other transactions that is intended for the acquisition of new state forest lands, according to the DCNR.  

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The property was purchased from Forest Investment Associates (FIA). The company will retain the timber rights for 35 years and continue harvesting timber — supporting local forest management companies and sawmills — under an agreement that requires sustainable forest management practices, according to the DCNR. The timber rights will revert to DCNR in the future, which will continue to ensure it is well-managed for the health of the forest and to support jobs that pay in the forest products industry, the DCNR states.

Sam Radcliffe's insight:

Approximately $425 per acre

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NCREIF Timberland Index updated for Q1 2015

NCREIF Timberland Index updated for Q1 2015 | Timberland Investment | Scoop.it

The first quarter 2015 rate of return for all properties was 1.75%, higher than any first quarter since 2008.

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Timberland Investment Regions and Considerations in the U.S. North

Timberland Investment Regions and Considerations in the U.S. North | Timberland Investment | Scoop.it

Unlike the simple set of core pine products – sawtimber, chip-n-saw and pulpwood – that drive most timber markets across the South, the hardwood markets of the North feature varying species and grades across clumpy, seasonal markets that use different log scales that complicate comparisons across space and time.
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These markets, in total, have at least 421 open hardwood lumber mills that average less than 5 million board feet in annual production each. That means lots of small, lower volume markets dot the landscape, and each has particular preferences and priorities for the types, grades and volumes of logs they buy. This helps explain why the three markets discussed here have distinct profiles with respect to core species, pricing and mills. For example:

  • The Lake States region has the largest number of mills, and the highest percent of cottonwood and aspen hardwood forest inventories. In 2014, red oak, maple and yellow birch logs traded at five-year highs.
  • In comparison, the Middle Atlantic region has the most hardwood sawmill capacity (and a larger average mill size). Soft maple, red oak and hard maple account for nearly half of the total hardwood forest inventory on timberland. In 2014, hard maple traded near its five-year high.
  • New England, on the other hand, has the smallest hardwood sawmill market and largest wood bioenergy market of the three. Soft maple, red oak and hard maple account for more than half of the hardwood inventory. In 2014, red oak, hard maple and ash traded near five-year highs.

For timberland investors interested in hardwoods, these realities and differences simply highlight the importance of understanding (1) the exact species and grades of logs growing on the candidate properties relative to (2) the specific preferences and health of the hardwood mills operating within an economically feasible distance for doing business.

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Stafford Capital Partners Closes on $484M Timberland PE Fund

Stafford Capital Partners Closes on $484M Timberland PE Fund | Timberland Investment | Scoop.it

Stafford today announced a final close on Stafford International Timberland VII Fund of $484 million from investors in the UK, Europe and Australia.  The new fund's final close exceeded the target fund size of $400 million, according to a press release.


The new fund is a specialist timberland fund of funds which will acquire secondary positions in existing timberland funds as well as invest in primary timberland funds and co-investments.


“We are very pleased with the support we continue to receive from existing investors and grateful for the confidence new investors have given us," noted Angus Whiteley, Stafford’s Group CEO, in the release.
"To assist in the investment of this latest fund, we have increased our investment team with the addition of two investment managers and a further analyst to support the finance function, as well as plans to open an office in Latin America in the third quarter of this year.”


The fund, Stafford's seventh, has already made two secondary investments, one co-investment and a primary commitment, all with leading timberland investment managers. When added to a further co-investment and a primary commitment made recently, the fund will have already deployed nearly 21% of committed capital.

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Tracking the Top Timberland Owners in the U.S. and Canada, 2015 Update

Tracking the Top Timberland Owners in the U.S. and Canada, 2015 Update | Timberland Investment | Scoop.it

In the United States, “industrial” timberlands, or privately owned acres managed to maximize wood volume and cash flows, comprise 9% to 14% of all U.S. forests. In Canada, only 7% of all forest area is privately owned, and but a fraction of this would qualify as investable timberlands for institutional and timber REIT investors. 

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Currently, the List includes over 300 private organizations in the United States and Canada that each own or manage 10,000 timberland acres or more. These include private individuals, corporations and institutions that own or manage over 100 million acres of private timberlands. Of the 103.3 million timberland acres captured here, 96.5 million (93%) acres are with 120 organizations that own or manage 100,000 acres or more each. The figure [above] breaks down the 100,000+ acre owners by type.

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Moody's upgrades TimberStar's certificates on new timberland appraisal

Moody's upgrades TimberStar's certificates on new timberland appraisal | Timberland Investment | Scoop.it

Moody's Investors Service has upgraded the ratings on the certificates issued by TimberStar Trust I, a securitization of approximately 900,000 acres of timberlands in Louisiana, Texas and Arkansas. Hancock Timber Resource Group (HTRG), a division of Hancock Natural Resource Group, Inc., manages the property on behalf of its investors. Hancock Natural Resource Group is a wholly owned subsidiary of Manulife Financial Corporation.
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The rating actions are prompted by the growth in the valuation of the timberlands collateral for this transaction. The most recent appraisal report provided by Sizemore & Sizemore valued the timberlands at approximately $1.5 billion, a 27% increase from the market value of $1.18 billion at deal closing. The higher valuation has resulted in a stronger loan-to-value (LTV) ratio, which represents the outstanding balance of the certificates to the appraised value of the timberlands, for each class of the certificates. Although the transaction's cash flows have been weaker than Moody's expected because HTRG has intentionally reduced the amount of timber it harvested during a period of weak demand for timber and timber prices (caused by the collapse of the housing market during the recent recession), the value of the underlying timberlands has continued to increase. In addition, in anticipation of new housing construction activities returning to the historical norms of approximately 1.5 million homes per year, investors have shown growing interest in the timberlands market. This interest improves liquidity of the timberlands and the ability of HTRG to sell the timberland collateral in a relatively short time if needed.

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New Breed of Endowment Managers Beats Harvard at Its Own Game

New Breed of Endowment Managers Beats Harvard at Its Own Game | Timberland Investment | Scoop.it

The Ivy League is losing its historic lead on one of education’s most important playing fields: endowment investing.


In the heart of the Iowa prairie, tiny Grinnell College last year beat all its Eastern rivals, with a 20.4 percent return, according to an exclusive Bloomberg ranking of endowment performance. It tied for No. 1 with another heartland institution, the University of Minnesota, a public system better known for its top-ranked Golden Gophers men’s hockey team.
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Harvard, the oldest U.S. college, the world’s richest and long considered among the savviest investors, ranked No. 65. Over a decade, Bowdoin College in Maine is starting to challenge Yale University, long the name to beat.


Those are some of the findings of the Bloomberg ranking of the wealthiest U.S. colleges’ investment performance. Yale and Harvard pioneered a high-risk strategy of boosting returns with long-term bets on exotic investments, such as private equity, commodities and timber. That approach has become commonplace; others now challenge and, in some cases, surpass the leaders.

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Calpers Puts Portion of Timber Holdings Up for Sale

Calpers Puts Portion of Timber Holdings Up for Sale | Timberland Investment | Scoop.it

The California Public Employees’ Retirement System, or Calpers, is seeking buyers for roughly 300,000 acres of forestry largely in Louisiana amid a broader review of its timber holdings, according to people familiar with the matter. The woodland represents about one-fifth of roughly 1.3 million U.S. acres controlled by the Sacramento-based fund.

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A decision to sell the Louisiana assets follows an announcement last September that Calpers would exit from a $4 billion investment in hedge funds due to concerns about complexity, costs and whether the commitment was large enough to affect overall returns.


“We continue to look through the entire portfolio to make sure that all programs fit with our current strategic priorities and our efforts to reduce costs and complexity,” a Calpers spokesman said. He added “no decisions have been made,” and there is no deadline for completion of the pension fund’s internal review of forestry holdings.


Any move Calpers makes away from the timber industry will likely influence other investors because of its size and history as an early adopter of alternatives to stocks and bonds.
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Calpers’s first investments in timber happened in the mid-1980s, but much of its $2.3 billion in forests was purchased when land prices were still high before the last housing bust. Since the financial crisis, timber has been Calpers’s weakest-performing asset, according to a May filing. Forestlands lost 0.4% over the past five years, while Calpers’s overall fund rose 9.4%.
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Calpers has an additional one million acres in east Texas it may consider selling if the Louisiana sale goes well, one of the people said. Those Louisiana assets could fetch several hundred million dollars, the people said. One of Calpers’s external timber managers, Campbell Group LLC of Portland, Ore., has hired UBS AG to run the sale.


The size of Calpers’s timber holdings is another reason the portfolio is under review. It represents only about 1% of total assets at Calpers, and Mr. Junkin added in his letter to Mr. Jones that “it could be argued” the allocation “is not large enough to have a significant impact” on overall returns.


Nearly 80% of Calpers’s timber holdings are in the U.S., with the rest in Latin America and the Asia Pacific area. One option under consideration for the U.S. timber portfolio is to leave it completely, but there are no immediate plans to sell any portion of the international forestry assets in Latin America and the Asia-Pacific region, according to people familiar with the matter.

Sam Radcliffe's insight:

See Jack Bridge's frank comments at "Risk-Adjusted Returns" http://sco.lt/5dvwmn


What the article doesn't say: the market for large timberland properties is pretty frothy right now, so what better time to sell? As Jack Lutz notes, this will easily be absorbed by the full-of-dry-powder TIMO's, although some may need buying partners if this is offered as a single transaction.


The timber REIT's have been buying back shares because they represent the cheapest timberland they can find. We'll see what they think of this opportunity...

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BTG Pactual asset unit raises $860 mln for new fund

BTG Pactual asset unit raises $860 mln for new fund | Timberland Investment | Scoop.it
Grupo BTG Pactual SA's asset management unit on Tuesday closed fundraising for a new timberland fund, collecting $860 million from investors increasingly interested in forestry assets across Latin America.

The fund, known as BTG Pactual Brazil Timberland Fund I, will invest in timberland, forestry and related assets in the country and other countries in Latin America, according to a statement. Some of the fund's members include large global and Brazilian institutional investment firms.

The so-called Timberland Investment Group at BTG Pactual Asset Management currently manages over $3 billion in timberland assets. BTG Pactual Asset Management is Brazil's largest independent money manager and the nation's fourth biggest with over 167 billion reais ($55 billion) under management. ($1 = 3.0509 Brazilian reais)
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Rayonier (RYN) David L. Nunes on Q1 2015 Results - Earnings Call Transcript

Rayonier (RYN) David L. Nunes on Q1 2015 Results - Earnings Call Transcript | Timberland Investment | Scoop.it

Collin P. Mings - Raymond James & Associates, Inc.
Hey. Good morning, guys. I guess my first question, both for Dave and Mark, just as it relates to the balance sheet and cap allocation priorities, clearly you bought some more Timberland during the quarter, but just given the weakness in the stock price, you're down 7% year-to-date. What's the latest thinking as far as maybe looking at buying back some stock?

Mark McHugh - Chief Financial Officer, SVP & IR Contact
Yeah, Collin, we don't currently have a buyback authorization in place, but with our stock around $26 per share, we certainly believe that it's trading well below net asset value. So, share buybacks are something that we are actively evaluating.

Ultimately, we have to evaluate share buybacks versus other uses of capital like acquisitions and make judgments about where we believe we have the best opportunities to drive shareholder return. We recognize that from a pure NAV standpoint, our current stock price implies a value per acre that is cheaper than where we can acquire Timberlands in the M&A market today.
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Collin P. Mings - Raymond James & Associates, Inc.
Okay. And then well, I guess just going back to this theme, Dave, of value that's being implied by the public markets right now versus what we're seeing on private deals that are getting done. Just any thoughts about how you think about the potential M&A in this space, the Timber REITS, a couple of the other timber-focused companies that are out there and just maybe just your thoughts about the NAV disconnect right now we're seeing in the marketplace?

David L. Nunes - President, Chief Executive Officer & Director
Well, I think that you have to be very careful in an environment like this where we've seen less deal flow as we've started 2015 relative to where we started 2014. And so you have to be really careful drawing too many conclusions from that because you've got quite a wide range of quality in terms of the properties and so I don't pay as much attention to those few comparable sales because they just not representative of broad market averages, and I think I'd repeat what Mark talked about.
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Paul C. Quinn - RBC Dominion Securities, Inc.
Yes. Thanks very much. Good morning. Just a question on the M&A front, you guys were successful with the 12,000 plus acres in Q1. How was that done? Were those auction processes and what's your assessment of the current competitive landscape out there?

David L. Nunes - President, Chief Executive Officer & Director
We continue to have a mix of participation in both negotiated and auction deals. That particular one was through an auction process. And again, our view is that we're going to be more competitive on transactions that have a fair bit of complexity to them. We have a strong HBU rural land sales effort. And so, whenever we have a property we will have our Real Estate sales guys assess it as part of our due-diligence efforts. And we think in that particular example that helped us be more competitive.

We are also, we also are tending to look for properties that we've got an existing presence from a geographic standpoint to keep our management costs low. And so most of the acquisitions that we've done over the last year, year and a half have all been in areas that are – I would consider to some degree bolt-on transactions.

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Catchmark Timber Trust's (CTT) CEO Jerry Barag on Q1 2015 Results

Catchmark Timber Trust's (CTT) CEO Jerry Barag on Q1 2015 Results | Timberland Investment | Scoop.it
Dave Rodgers - Robert W. Baird
I am sure I heard the comments about the acquisitions and opportunities in the market but I was wondering if you could dig a little bit deeper into what you are seeing in the acquisition pipeline if you got anything under contract today or anything in the near-term that we can expect you to close?

Jerry Barag - President and CEO
As I noted in my comments, we've kind of got a bifurcated market that's been going on after a very active 2014 from a market perspective, we started to see some offering as it come out at the beginning of this year or although the timing of that has seem to be a little bit odd. What's coming for the market has been either very large transactions and the number of small transactions that either have come into the market that we've sourced directly. And from an opportunity standpoint the smaller transactions have been much better price, much better productivity, much more complementary to our business plan and so we've -- while it takes a lot of effort to do that they are very accretive properties for us and are very consistent with what our plans are here and so we closed 7,700 acres of that, there is some more that is under contract. But again from a significant standpoint those aren’t going be things that really move the dial in any individual deal. There at least three very large 100,000 plus acre transactions that are in the marketplace that we've looked at and evaluated. It's kind of hard to draw any conclusion, they're all part of processes that are underway that are going to take some time.

I will tell you for the most part of the kind of landscape of what's out there today is that the sellers of large properties have seem to have pretty lumpy expectations of what properties might or should be trading at, and for right now it appears that the market is staying fairly disciplined around pricing, which we like which we're happy about. And so we'll see how those processes end up. But there is nothing eminent on a large scale basis that’s going on.
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Weyerhaeuser's (WY) CEO Doyle Simons Discusses Q1 2015 Results

Weyerhaeuser's (WY) CEO Doyle Simons Discusses Q1 2015 Results | Timberland Investment | Scoop.it

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Mark Wilde - BMO Capital
Okay. And then over on to timberlands, I wondered Doyle if you can just talk a little bit about sort of what you see out there in terms of the timberland acquisition markets, how you are kind of seeing values right now. And just how you think about Weyerhaeuser’s timberland portfolio going forward, you are pretty heavily skewed right now in terms of your earnings to the Pacific Northwest, you want to shift that over time?

Doyle Simons - Chief Executive Officer
So Mark, in terms of the deal flows overall, it was low in the first quarter in both the South and the West, as we have previously said we expect that to increase as we move through the year. And I will tell you there is still a lot of money chasing deals going forward. In terms of our specific portfolio, as you know we have got 4 million acres in the South, 2.7 million acres in the Pacific Northwest. We would like to grow both areas. We like the positions where we are. We will look at growing both the South and the Pacific Northwest. But with that said, we are going to continue to be very disciplined in terms of our approach and make sure that any acquisition opportunity that we look at meets our specific criteria of having appropriate cash flow on returns, both in the near-term and long-term, strong market access and ability for us to add value or synergies and I think the Longview acquisition is a good example of where we were but able to add synergies as a result of that transaction. So we will look to grow both in the West and in the South we like our position in both of those, but we will be very disciplined in the approach that we take.

Mark Wilde - BMO Capital
And Doyle how do you think about international timberlands, because at one point this was a big growth focus for Weyerhaeuser and I think you have peeled that quite – back quite a bit, how does that sort of fit in the situation now?

Doyle Simons - Chief Executive Officer
Yes. I think our biggest opportunities for growth going forward, Mark, will be domestic. We will continue to look internationally. As you know, we have Timberland Uruguay. That is a really good timberland. We have got a good team in place there. The growth rates there are really encouraging. So, we understand international timberland, but I think on a risk-adjusted basis I think our bigger opportunities going forward will be domestic as opposed to international.

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Latest Report from Forest Research Group

Sam Radcliffe's insight:

As usual, interesting stuff from Jack Lutz. His observations are essentially the rationale for price adjustments made in the comparable sales approach to valuation of timberlands.

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Potlatch Corporation's (PCH) CEO Mike Covey on Q1 2015 Results -- Earnings Call Transcript

Potlatch Corporation's (PCH) CEO Mike Covey on Q1 2015 Results -- Earnings Call Transcript | Timberland Investment | Scoop.it

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Collin Mings - Raymond James
Okay. I guess on that front, Mike, just curious, given some of your peers have highlighted the potential to sell off some assets, kind of prove out NAV and recognizing your portfolio's a little bit different but have you guys considered at all maybe unlocking value if you will, maybe some of the Idaho Timberland or maybe even some of the legacy Arkansas to maybe generate some cash to then buyback stocks at these levels, kind of serving the dual purpose of proving out asset value while also gaining a little bit more flexibility on the share repurchase front.


Mike Covey - Chairman & CEO
Well I would agree it's an attractive arbitrage given where our stock price is today and what we think are still very high underlying values of our timberland. But you have to think about it on an after-tax basis as well. We are not in a position to get past the time period of built in gains tasks like some of the other timber REITs are. So the 10 year timeframe in our REIT conversion is up next year and until that time if we sell timberland out of the REIT we have a responsibility for a built in gain tax of 40% or to reinvest in timberland which is really not your point. So I think for those reasons, we don't find it as compelling at this point in time to pull the trigger on kind of an arbitrage option that you described.


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World's largest sovereign wealth fund takes stand against deforestation

World's largest sovereign wealth fund takes stand against deforestation | Timberland Investment | Scoop.it
Norway's Government Pension Fund Global — the world's largest sovereign wealth fund — is adopting standards to avoid investing in companies linked to tropical deforestation, sending a strong signal that forest destruction is not an acceptable...
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