Timberland Investment
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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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Guggenheim Transitions Spin-Off and Timber ETFs to New Indices

Guggenheim Transitions Spin-Off and Timber ETFs to New Indices | Timberland Investment | Scoop.it

Effective today, Guggenheim Investments, the global asset management and investment advisory business of Guggenheim Partners, will change the underlying indices for Guggenheim Spin-Off ETF (CSD) and Guggenheim Timber ETF (CUT). The name of each ETF also will be changed to reflect its new underlying index. The ticker symbol of each ETF will remain the same.

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[CUT will change its benchmark index from the Beacon Global Index to the MSCI ACWI IMI Timber Select Capped Index. Its name will change to Guggenheim MSCI Global Timber ETF.]  http://goo.gl/AmlYQk

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The MSCI Index is a rules-based index comprised of, as of February 29, 2016, approximately 90 securities of companies in developed and emerging markets that own and/or manage forests and timberlands and produce wood-based products.

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The State Of Oregon’s Timber Industry

The State Of Oregon’s Timber Industry | Timberland Investment | Scoop.it
Oregon’s once-booming timber industry has fallen off sharply since the 1990s, when the federal government listed the spotted owl as threatened, and timber production was halted where it interfered with owl habitat.

Here & Now’s Jeremy Hobson takes a walk through a forest in Oregon City with Mike Cloughesy of the Oregon Forest Resources Institute to look at how the industry has changed over the years. He also stopped by the town of Estacada, which saw a boom of logging activity decades ago but has since struggled.
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Research Initiative Offers Insights Into State Of Wisconsin's Forest Products Industry

Research Initiative Offers Insights Into State Of Wisconsin's Forest Products Industry | Timberland Investment | Scoop.it

A multifaceted research initiative looking at Wisconsin's forests and the industry they support is starting to bear fruit. This spring, researchers have been presenting their findings from various projects that are part of the Wisconsin Forest Practices Study — the result of $600,000 in funding that lawmakers set aside in 2013 to research how policies and regulations are affecting the state's multi-billion-dollar forest products industry in Wisconsin.

 

Steve Prisley, director of the Center for Natural Resources Assessment and Decision Support at Virginia Tech University, conducted an overall assessment of the state’s forest products industry. He said the results show Wisconsin is growing more trees than are being harvested. "There is something like 3.2 million tons more being grown every year than is being removed for harvest. That’s very positive," said Prisley. However, he said there are some imbalances. Notably, there’s more pulpwood being harvested than is being grown.
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Forrest Gibeault also conducted research as part of the study. His work focused on how wood supply-chain costs in the state compare to other regions of the U.S. Gibeault, an analysis and investment operations director with Steigerwaldt Land Services of Tomahawk, said the state is most competitive with aspen when compared to the Northeast. But, he said harvesting and freight costs are higher in Great Lakes states than in the southern U.S.
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Wisconsin mills and loggers are also paying more money to buy timber stands than those in other regions. One reason is that whole-tree harvesting is more common in the south unlike Wisconsin’s shortwood system, which cuts logs into smaller pieces before hauling them to mills. Gibeault said the difference in harvesting methods makes the south more efficient and cost-effective.
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The research, which was presented to the Wisconsin Council on Forestry, will now be evaluated by subcommittees. Council Chair Henry Schienebeck hopes the committees will develop recommendations for the Legislature by July.

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Ethical Forestry Investor Group gains momentum in wake of timber investment’s liquidation as pressure mounts for an SFO investigation

Ethical Forestry Investor Group gains momentum in wake of timber investment’s liquidation as pressure mounts for an SFO investigation | Timberland Investment | Scoop.it

Unhappy and concerned investors in troubled Costa Rican timber investment Ethical Forestry have continued to unify in the form of a growing online Ethical Forestry investor group forum, with intensifying calls for the SFO to get involved.

The Ethical Forestry Investor group, which was established shortly after the appointment of Joint Liquidators from HJS solutions back in December 2015, has since swelled to over 300 investors who are still waiting to discover the fate of their money, much of which was invested via a SIPP, or Self-Invested Personal Pension to give it its full name.

Bournemouth based Ethical Forestry went into liquidation back in December 2015, and as of yet there has been no clear reason provided to investors as to why this has happened.

Featuring a minimum investment of £18,000 to buy a plot of 600 trees, glossy brochures and advice from IFAs indicated that investors could look forward to returns over £100,000 in around 12 years once the trees were harvested and sold on the global timber market.

Supposedly SIPP friendly, Ethical Forestry was an unregulated investment and therefore did NOT fall under the watchful jurisdiction of the FCA (Financial Conduct Authority), meaning that worried investors cannot benefit from the FSCS safety net should the investment fail, leaving them high-and-dry should the trees not pay their promised returns.

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Farmland continues to outperform timber

Farmland continues to outperform timber | Timberland Investment | Scoop.it
Since 2007, the NCREIF Farmland index cumulatively has returned more than 200%. Farmland’s return significantly outpaced both the NCREIF Timberland index and Bloomberg Commodities index, which returned 77.11% and -52.66%, respectively. In the first quarter of 2016, timber returned -0.26%, while farmland returned 1.38%.
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India To Spend $6 Billion To Create New Forests

India To Spend $6 Billion To Create New Forests | Timberland Investment | Scoop.it

India plans to spend an equivalent of $6.2 billion to increase the country's green cover.

 

Earlier this week, lawmakers in the lower house have passed the Compensatory Afforestation Fund Bill, 2015, which aims to increase the forest cover in the country from 21.34 percent of the total land to 33 percent.

 

The bill, which now awaits to be approved by the upper house, ensures the expeditious use of the unspent Rs 40,000 crore (about $6.2 billion), which has accumulated and lie idle with an ad-hoc central body for more than a decade, to create new forests.

 

The money comes from the amount paid to the government by companies and other entities since 2006 for letting them set up projects on forest land.

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MORE FOREST PESTS THAN EVER ARE ENTERING THE U.S., AND IT’S COSTING THE PUBLIC A FORTUNE

MORE FOREST PESTS THAN EVER ARE ENTERING THE U.S., AND IT’S COSTING THE PUBLIC A FORTUNE | Timberland Investment | Scoop.it

In the 20th century, chestnut blight and Dutch elm disease decimated billions of U.S. trees, in forests and along urban and suburban streets. The tree diseases, caused by invasive pests, effectively changed the face of one American city landscape after another—chestnut trees were virtually wiped out and elms diminished to but a few locations—and cost local governments and homeowners a fortune.

 

A paper published May 10 in the journal Ecological Applications illustrates how American homeowners today bear the brunt of the burden posed by current invasive forest pests. The emerald ash borer, hemlock woolly adelgid and others are costing Americans well over $2 billion dollars a year. Gary Lovett, a forest ecologist at the Cary Institute of Ecosystem Studies, based in Millbrook, New York, was inspired to pursue the study after realizing that in his field work he was coming across more and more hemlock and other Eastern U.S. trees that were dead or destroyed by forest pests.
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Lovett calls forest pests, present in all 50 states, the most pressing and underappreciated forest health issue today. Working with 15 other scientists to synthesize information found in previous scientific studies of invasive pests, Lovett found that, on average, 25 new pests become established in the country every decade. The scientists say efforts that exist to prevent new forest pests from entering the country are far too weak to keep up with escalating trade and an increased reliance on shipping containers—25 million enter the U.S. each year.

 

More than 90 percent of wood boring insects that have recently invaded the U.S. entered on wood packaging materials, mostly within shipping containers. And while the federal government does require that wood packaging material be treated to prevent pest importation and that plants are inspected upon entry to the U.S., there are simply too many shipments coming in each day to inspect everything.
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Lovett says we've been lucky not to have yet encountered an imported pest destructive to the Southeast’s loblolly pine or the Northwest’s Douglas fir, two of the country’s most commercially important trees. He estimates the economic damages would then be far greater than they already are.

 

However, the stakes are already higher than most people realize. Forest pests are the only threat that can decimate an entire tree species within just decades, as they did the American elm and chestnut.

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New softwood duties inevitable, forestry conference told 

New softwood duties inevitable, forestry conference told  | Timberland Investment | Scoop.it
Canadian forest companies are no longer debating whether they will be hit with a softwood lumber duty, but how much pain the duties will cause, forest products analyst Paul Quinn told an international wood products conference Thursday.


Although Canadian Prime Minister Justin Trudeau and U.S. President Barack Obama told negotiators last March that they have 100 days to resolve the lumber impasse between the two countries, Quinn said that mid-June deadline is likely to pass with no resolution.


“I am pretty pessimistic on them finding a deal,” he said. “The history on this file is very difficult, and there are lots of issues.”

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Global Timber and Wood Products Market Update

Global Timber and Wood Products Market Update | Timberland Investment | Scoop.it
Softwood log imports to China picked up in March to the highest level in 12 months. The total import volume for the first quarter of 2016 was just over seven million m3, which was about two percent higher than in the 1Q/15, as reported in the Wood Resource Quarterly (WRQ). With declining log inventories at the Chinese ports (about 40% lower this year than the same time last year), and an uptick in demand for wood in the domestic market, importation of logs has been trending upward since last fall when import volumes were the lowest in almost three years.

The real estate market in China has been strong so far in 2016, and the sector has been the fastest-growing sector in a relatively shaky economy. Newly built houses in the largest cities in March were up almost 30% as compared to the same month of 2015. Although China does not use as much wood per housing start as is the case in North America, Europe or in Japan, there are still large volumes of wood consumed, particularly lumber for concrete forming.

New Zealand and Russia continue to be the major suppliers of logs to China, together accounting for almost 70 percent of all imports. In the 4Q/15 and 1Q/16, New Zealand fell behind Russia after having been the major supply source for almost three years.
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'Perfect Storm' of Factors Makes Fort McMurray Wildfire a Powerful Force

'Perfect Storm' of Factors Makes Fort McMurray Wildfire a Powerful Force | Timberland Investment | Scoop.it
The raging wildfire that has forced the evacuation of Fort McMurray, Alta., and engulfed parts of the community is the kind of blaze that firefighters dread, but could become more common, according to experts. 


Alternatively described by officials as "catastrophic," a "multi-headed monster" and a "dirty, nasty" fire, the blaze is at least 80,000 hectares in area and has destroyed more than 1,600 structures. It could threaten the entire town, the fire chief told reporters. 


The wildfire became so intense Tuesday that the heat limited air operations over the affected areas. More than 150 firefighters are battling it on multiple fronts, with hundreds more from other provinces scheduled to arrive in the coming days.  

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Trump touts timber industry, has protester removed from Oregon rally

Trump touts timber industry, has protester removed from Oregon rally | Timberland Investment | Scoop.it
Donald Trump made it clear in his Eugene rally Friday night that he was reaching out to Republicans in rural Oregon, parts of which are struggling economically.

“Timber is a crucial industry” in parts of Oregon but “it is being hammered by federal regulations,” he told his cheering supporters.
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Nippon Paper Eyes 'Roasted' Wood Pellets as Earnings Source

Nippon Paper Eyes 'Roasted' Wood Pellets as Earnings Source | Timberland Investment | Scoop.it
Nippon Paper Industries will begin tests next spring on a process it plans to use to mass-produce efficient-burning wood pellets as a biomass fuel for electricity generation starting in fiscal 2018.
     The so-called torrefied wood gets its name from torrefaction, a process similar to coffee roasting. Wood is heated at relatively low temperatures for less than an hour to yield a substance that burns with double the heat volume of wood chips, effectively doubling the power generation efficiency.
     Despite global research on torrefied wood as a biomass fuel, few companies have taken the next step to develop a means of mass production. Nippon Paper intends to leverage its papermaking experience to quickly establish this as a source of earnings for its energy business.
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Opinion: Douglas County forestland a bargain

Opinion: Douglas County forestland a bargain | Timberland Investment | Scoop.it

The state Natural Resources Board will be asked Wednesday to approve purchase of an easement on 7,090 acres in Douglas County for $3.5 million. The request by the state Department of Natural Resources is a smart investment that will serve the resource, industry and those who love the outdoors. It also builds on a historic transaction that comprises more than 100 square miles and continues Wisconsin's tradition of preserving natural spaces for future generations.

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The agreements spell out requirements for continued logging, which will be managed by the Lyme Timber Co., and keep land open for hunting, fishing, hiking and other activities. The agreements also prohibit construction, deforestation and subdividing the land.

 

Preservation of forest land as well as jobs in the logging industry. What's not to like? Make this purchase.

 

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Model predicts how forests will respond to climate change 

Model predicts how forests will respond to climate change  | Timberland Investment | Scoop.it

Drought could render the U.S. Northeast’s mixed forests unsustainable after 2050 while Washington’s Cascade Mountains may require tropical and subtropical forest species, according to researchers using a new type of mathematical model at Washington State University.
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WSU Vancouver mathematicians Jean Liénard and Nikolay Strigul, and ecologist John Harrison, predict the Pacific Northwest’s climate may be warmer and wetter, requiring the establishment of forest types seen in places like southeastern China, southern Brazil or sub-Saharan Africa.

 

Predicted forest types in the U.S. for projected climates determined by the WSU tolerance model.
In the northeastern U.S., the model projects forests of maple/beech/birch, spruce/fir and white/red/jack pine combinations will be ill-suited to withstand predicted drought conditions by the latter half of the 21st century. Other forested areas that were identified as being at risk from drought included the northern Great Plains and the higher elevations of the Rocky Mountains.

 

Meanwhile, low altitude areas of Texas may eventually host tropical dry forests similar to regions of eastern Mexico. Moist, deciduous forests found in locations like Cuba could one day thrive along the U.S. Gulf Coast.

 

“Until now, our ability to predict exactly how and where forest characteristics and distributions are likely to be altered as a result of climate change has been rather limited,” said Liénard, a postdoctoral researcher and the paper’s first author. “With our model, it is possible to identify which forests are at the greatest risk from future environmental stressors. Forest managers and private landowners could then take steps like planting drought tolerant seedlings and saplings to prepare.”

Sam Radcliffe's insight:

While this is an innovative way to model response to environmental changes, how accurately we predict forest impacts ultimately depends on how accurately future environmental changes are estimated. I am not convinced that scientists are very close to predicting the future climate very accurately, particularly for sub-continental regions.

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Nuveen Hires Bill Stout to Drive Alternative Investments Growth

Nuveen Hires Bill Stout to Drive Alternative Investments Growth | Timberland Investment | Scoop.it

Nuveen Investments, an operating division of TIAA Global Asset Management, today announced the appointment of Bill Stout as Managing Director and Head of Alternative Investments Business Development.
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Nuveen draws heavily from TIAA Global Asset Management’s industry-leadingi TIAA Global Real Assets is ranked as the largest real estate manager of U.S. tax-exempt assets, the largest manager of real estate assets in farmland, and one of the top ten managers of real estate assets in timber according to Pensions & Investments, October 19, 2015.

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Forest and timberland markets ripe for investment

Forest and timberland markets ripe for investment | Timberland Investment | Scoop.it
Institutional investors’ appetite for forestry and timberland is on the rise across the globe, due in part to their searching for alternative income sources following the flatlining of other, more traditional investment classes.

With the world’s timber industry beginning to adapt to institutional capital’s stewarding requirements and the environmental, social and governance of the arena, more than ever before the sector seems ripe for the picking.

With underlying demand for forest and wood products continuing to increase across the globe, the growth in the investor marketplace comes as no surprise. What is a surprise, however, is just how fast investors are flocking in, driven by major growth for these products in powerhouses such as China, despite the country’s recent economic stagnation. Bob Flynn, director, international timber at RISI, told IPE Real Estate: “Even with the recent slowdown in China’s economy and construction, Chinese demand for wood is still increasing. China is the major driver of international trade in forest products.”

“Whether investors are growing trees in New Zealand, Australia, western North America, or Latin America, they are often producing wood whose end-market will be in China,” added Mr Flynn.

IPE Real Estate also reported that there was around $1 billion of institutional capital linked to the timber sector 10 years ago. Indeed, scale will continue to matter as timber will remain a concentrated marketplace despite its growth, with the next few years likely to see a wider range of timber and forest-product strategies being offered by investment managers.

RISI, a Boston-based forestland research and consulting firm confirmed that the world’s top 30 timber investment management organisations hold around $57 billion of managed assets between them, discounting the real estate investment trusts also held by them. Of those, the five biggest firms make up more than half – 54 per cent – of the total, with the biggest 10 of these organisations accounting for around 76 per cent of total assets.
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BMO’s Timber & Wood Products Summit in Seattle:
Trip Notes  

BMO’s Timber & Wood Products Summit in Seattle:<br/>Trip Notes   | Timberland Investment | Scoop.it

Timberland values remain very strong and institutional appetite for timberland remains healthy. As a result, many observers have noted a "big property premium" in timberland transactions. Most participants suggested that discount rates remain in the 5.0-5.5% range. However, several also noted that reverse-engineered analysis on some recent deals implies discount rates of 4% or below. 2015 data on returns from NCREIF point to EBITDA returns in the 2.5-3.0% range across the entire U.S. Capital appreciation was strongest in the Northwest (+5.4%). To our eye, the biggest question mark – and, perhaps, the greatest risk – is the continued upward momentum in southern valuations. Capital appreciation is outpacing cashflow growth. Timberland investors continue to underwrite a strong rebound in southern sawlog pricing in their valuation assumptions. This "reversion to trend" analysis assumes that south-wide sawlog prices rebound from current levels in the mid-$20s per ton to approximately $40 per ton (a level last seen in 2005). After bottoming in the low-$20s/ton range during the recession and then rallying modestly to the mid-$20s, sawtimber prices have been going sideways.
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To be clear: we're not arguing that prices can't rebound sharply. But after a decade of sub-trend pricing, perhaps we need to reconsider the trendline.

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Full report available at: http://goo.gl/h4CBSJ

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Weyerhaeuser (WY) Doyle R. Simons on Q1 2016 Results - Earnings Call Transcript

Weyerhaeuser (WY) Doyle R. Simons on Q1 2016 Results - Earnings Call Transcript | Timberland Investment | Scoop.it

Collin P. Mings - Raymond James & Associates, Inc.

First question for me. Just as far as acquisition opportunities from here, Doyle, can you maybe just touch on the final terms with the Twin Creeks JV? And, obviously, we've seen a few larger Timberland deals here announced in the last few weeks. Maybe just your take on the current acquisition environment.

Doyle R. Simons - President, Chief Executive Officer & Director

Yeah. So, let me comment on the current acquisition environment and then I'll ask Russell to comment on Twin Creeks. So, in terms of the current acquisition environment, there continues to be a lot of interest in this asset class and, frankly, a lot of money chasing deals. As we've seen announced recently, there have been some deals that are happening. I would highlight on the West some transaction announced at $4,300 an acre and then in the South, of course, our Twin Creeks transaction at $2,150 an acre, and then I think I saw just last night CatchMark announced something at $2,000 an acre. So, I would tell you, as I've said, a lot of increased activity, a lot of interest in the asset class. And I would say, good values being paid for high-quality property. And, now, let me turn it over to Russell to comment on Twin Creeks.

Russell S. Hagen - Chief Financial Officer & Senior Vice President

So, Collin, as we announced, we closed the Twin Creeks transaction on April 1. And that was a deal that was put together prior to the merger, obviously. And we delayed the close so that we could sit down with the investors and make sure that we'd structured it appropriately, given Weyerhaeuser's differences to Plum Creek. So, the real key items are, the property management agreement under the Plum Creek structure was 15 years. We've shortened that to three years under the Weyerhaeuser, as amended. And then the equity ownership dropped from 25% to 21%. Those are probably the two biggest items that changed in the transaction.
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Collin P. Mings - Raymond James & Associates, Inc.

Okay. And then just one other follow-up on Anthony's question, just as it relates to the Real Estate business. I think, Doyle, you've suggested in the past may be 15% to 20% of the combined companies could potentially be Real Estate. Is that still how you're thinking about, again recognizing you're still relatively early in that review process? But would that be fair as we start thinking about 2017 to the comment that it's going to step-up materially?

Doyle R. Simons - President, Chief Executive Officer & Director

That's exactly right, Collin. We are still comfortable with that guidance of 15% to 20%. And as I mentioned, we anticipate real estate activity will ramp-up second half of 2016 and into 2017 to get us to that range.
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Mark William Wilde - BMO Capital Markets (United States)

Yeah. Doyle, I have a couple of portfolio questions. I think one of them you've answered already, and that is just, any potential portfolio repositioning within the Timberlands, maybe concentrating more going forward on plantations in the South and in the Northwest?

Doyle R. Simons - President, Chief Executive Officer & Director

Yes. As I mentioned, Mark, as part of the integration process we're going to – it's going to involve a review of the overall Timberlands portfolio. And again, as I mentioned with 13-plus million acres and no built-in gains tax we've got lots of flexibility as to how we create the most value for our shareholders going forward. So, that work is ongoing.

Mark William Wilde - BMO Capital Markets (United States)

Okay, and is it fair to say that the focus is going to be kind of plantation forestry, Doyle?

Doyle R. Simons - President, Chief Executive Officer & Director

I don't want to exclude anything at this point, Mark. Let us do the work and figure out exactly what we want the portfolio to look like as we move forward.

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Hurricanes Boost Carbon Storage in Southeastern Forests

Hurricanes Boost Carbon Storage in Southeastern Forests | Timberland Investment | Scoop.it

Hurricanes hitting the Southeast coast can supercharge the region’s forests, spurring them to store more than 100 times the carbon released annually by all vehicles in the U.S., Duke University researchers have found.

Rainfall associated with hurricanes acts as fuel for photosynthesis, drastically increasing trees’ carbon absorption rates, according to a recent study published in the journal Biogeosciences. Forests hit by tropical cyclones account for 9 percent of the warm season forest carbon sequestration in the region, the study said.

The researchers studied the Southeast coast because it is the target of more hurricanes and tropical storms than any other part of the U.S. It also harbors massive forests that absorb large amounts of carbon.

Scientists are unsure how a changing climate will affect the intensity and frequency of hurricanes, but studies suggest that the Southeast coast could see more tropical storms and hurricanes in a warming world along with more frequent drought due to warmer temperatures.

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Quantum Global backs Angolan timber with $50mln

Quantum Global backs Angolan timber with $50mln | Timberland Investment | Scoop.it
In a deal with the Government of Angola, Quantum Global is leasing over 80,000 hectares to develop large-scale wood fiber plantations in the country’s Planalto region. As part of the 60-year concession, Quantum aims to invest $50 million over the next 5 years in establishing new plantations, infrastructure and wood processing industries.

Through this acquisition, Quantum Global aims to realize risk-adjusted returns for the timberland asset class, whilst implementing sustainable forestry practices and facilitating conservation protection on the investments. The Planalto region has large areas of fertile land that are currently underutilized, low population pressure limited natural forests. These factors, combined with sufficient water resources and access to transport infrastructure are suitable for the development of large-scale wood fiber plantations.
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How a Maine paper mill learned to love not making paper

How a Maine paper mill learned to love not making paper | Timberland Investment | Scoop.it

Sappi Paper’s mill in Westbrook has remained standing in the 21st century by learning to let go. The mill staked its future on paper with the key of not sticking to things, allowing paper-backed patterns to be pressed into synthetic materials, laminate flooring, leather and other products.

 

The mill has shed thousands of jobs since hitting peak employment levels in the 1950s but carved a path to profitability through a spate of tough times and recent closures in the industry.
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During the early 2000s, the Westbrook mill completed a long shift away from publishing markets, converting lower efficiency, turn-of-the-century paper machines to what’s called release paper, research that began when the mill was still in the hands of S.D. Warren Co. That paper, coated with various textures, can be used to create a range of products, including patterned car interiors, flooring, shoes and soccer balls.
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Mike Standel, the mill’s managing director, said the company’s market research focuses now on forecasting quickly changing fashion trends. Those quick changes, he said, give it an advantage in competing with other methods for pressing textures into a material, such as using stainless steel belts or plates. “It’s always important to be first, and we can provide something unique that can let our customers have exclusivity or be first to market,” Standel said.

 

The Westbrook mill produces about 40 percent of the global market for release paper, according to Standel, who said Europe and China are key markets in the business for which about 92 percent of its product is exported.

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Top 100 global investors

Top 100 global investors | Timberland Investment | Scoop.it

The top 100 global investors are ranked by size of real estate assets under management at the end of 2014. Numbers are calculated by S&P Capital IQ MMD.

Sam Radcliffe's insight:

This article contains a list of the top 150 investors in real estate globally. Only two in the top ten are US entities, both California public pension funds.

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Tracking the Top Timberland Owners and Managers in the U.S. and Canada, 2016 Update

Tracking the Top Timberland Owners and Managers in the U.S. and Canada, 2016 Update | Timberland Investment | Scoop.it

While the 87 million acres of “investable” timberlands account for less than 4% of the total U.S. land area, they represent over 24% of all private timberlands. This speaks to the concentration of ownership in the United States, with a relatively short list of organizations specializing in the ownership and management of productive, industrial timberlands. This differs from Canada, where only 7% of all forest area is privately owned, and only a fraction of this would qualify as investable timberlands for institutional and timber REIT investors.Click here to edit the content

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Corrugated and paperboard demand to rise 2.6%

Corrugated and paperboard demand to rise 2.6% | Timberland Investment | Scoop.it
Demand for corrugated and paperboard boxes in the U.S. is forecast to increase 2.6 per cent per year to US$41.2 billion in 2020, as both nondurable goods manufacturing and retail sales post healthy gains, according to The Freedonia Group.

E-commerce and retail-ready applications will drive growth for corrugated boxes while folding carton demand will be sustained by the foodservice, carryout and pharmaceutical markets, Freedonia analysts say.

The group predicts value gains for corrugated and paperboard boxes will be stimulated by the increased adoption of value-added features such as high-quality printing, easy-open tear strips, and special coatings. Volume growth, they say, will be held back by lightweighting trends and market maturity.
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Catchmark Timber Trust to Acquire Prime South Carolina Timberlands for $101.8M

Catchmark Timber Trust to Acquire Prime South Carolina Timberlands for $101.8M | Timberland Investment | Scoop.it
In the company's single, largest acquisition to date since its listing on the NYSE, CatchMark Timber Trust, Inc. (NYSE: CTT) announced today an agreement to acquire 51,700 acres of prime timberlands in South Carolina for $101.8 million, excluding closing costs, from funds managed by Forest Investment Associates. The acquisition of the Carolinas Midlands III timberlands will expand significantly CatchMark's recent entry into North Carolina and South Carolina from 17,600 to 69,300 acres, and will increase the company's total acreage in the U.S. South to 480,400 acres. Closing of the transaction is expected by the end of the second quarter or early third quarter 2016.

Adding approximately 2.1 million tons1 to CatchMark's merchantable inventory, the acquisition comprises 70% pine acres and a 52%/48% pulpwood to sawtimber mix with significant diversity in topography, creating a range of seasonal harvest options to meet changing market demand. The transaction's productivity is expected to be 4.8 to 5.8 tons per acre per year, adding approximately 250,000 to 300,000 tons per year to CatchMark's harvest over the next decade.
Sam Radcliffe's insight:

Is $2000/acre the new benchmark for the US South?

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