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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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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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The Sustainable Forestry Initiative welcomes four new board members representing environmental, social and economic interests

The Sustainable Forestry Initiative welcomes four new board members representing environmental, social and economic interests | Timberland Investment | Scoop.it
The Sustainable Forestry Initiative Inc. (SFI) is pleased to announce that four leaders have been elected to the independent Board of Directors. Joining the board are Mary Klein, President and CEO, NatureServe; Guy Gleysteen, Senior VP, Time Inc.; Bettina Ring, State Forester, Virginia; and Steve Bullard, Dean, Arthur Temple College of Forestry and Agriculture, Stephen F. Austin State University.
“We are so pleased to welcome Mary, Guy, Bettina, and Steve. As a conservationist, a brand manager, a state forester and an academic, their respective experience in the environmental, public and private sectors will be an important asset to our diverse SFI Board,” said Kathy Abusow, President and CEO of SFI Inc. “They will help SFI further enhance the vital link between healthy forests, responsible purchasing, and sustainable communities.”
SFI’s 18-member, multi-stakeholder Board of Directors comprises three chambers, representing environmental, economic and social interests equally. In addition to the appointment of four new members, Craig Blair, President and CEO of Resources Management Service, LLC, has been elected as Chair and Greg Siekaniec, CEO of Ducks Unlimited Canada, as Vice-Chair of the Board. The SFI Board’s diversity and independence allows it to play a meaningful role at the intersection of sustainable forests and thriving communities
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Timbervest provides insight on pellet production, export activity

Timbervest provides insight on pellet production, export activity | Timberland Investment | Scoop.it
Timbervest LLC, an Atlanta-based company that manages timberland assets and investments, has been actively selling and purchasing timberland acreage in a variety of states.

“We just completed investing our last Timbervest Partners III fund, which was a $410 million fund,” said Bill Boden, chief investment officer with Timbervest. “We’re now back in acquisition mode, looking for different deals around the country that meet our investment criteria.”

This year, the company has also been selling assets from its TVP I investment fund. Over the last year, Timbervest sold over 40,000 acres of assets primarily in Florida, Georgia, New York, Pennsylvania, South Carolina and Vermont for a combined $65 million. “We’re excited to be able to take advantage of strengthening markets to sell certain properties and complete these high-value transactions,” Boden said. “Each property contained high-quality timberland, which provided consistent cash flow and excellent wood harvesting opportunities.”

According to Boden, Timbervest currently manages around $1.2 billion in assets in forested lands across roughly 16 U.S. states. Timbervest invests in the land, and makes it available to a variety of buyers, including purchasers of wood for pellets. Boden believes an increasing amount of woody material has been used for the pellet export market. “For the last couple of years we’ve made a fair amount of acquisitions on properties in the U.S. South, U.S. West Gulf, even mid-Atlantic states that were by design with some export-centric theme to them,” Boden said. “That has served us well because the pricing on that material has been very strong, particularly on the younger product—the pulpwood classes and even the small sawtimber classes—and I think that has been a direct response to the demand elements coming out of foreign markets, particularly Europe for pelletized wood.”
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Commissioner warns of forest fragmentation

Commissioner warns of forest fragmentation | Timberland Investment | Scoop.it
For the first time in a century, Vermont is losing forestland and the existing forests are being broken into smaller, fragmented parcels that threaten the state’s cherished relationship with those forests, Vermont’s top forestry official told lawmakers Thursday.

Michael Snyder, commissioner of forest parks and recreation, told members of five legislative committees that more than 80 percent of that land is owned privately, the landowners are getting older and 75 percent of Vermont is forested — making it the fourth most forested state in the country.

As forest parcels get smaller through development and the splitting up of family parcels, managing forestland for things like timber or animal habitat gets harder.

“Simply put, practicing forestry becomes operationally impractical, economically non-viable and, I would argue, culturally unacceptable in heavily fragmented forest landscapes,” Snyder said.
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Apple to invest in Maine timberland

Apple to invest in Maine timberland | Timberland Investment | Scoop.it

Technology giant Apple is partnering with The Conservation Fund to preserve more than 32,400 acres of timberland in Aroostook County.
The Arlington, Va.-based nonprofit announced Thursday that Apple's "precedent-setting" investment will help preserve Reed Forest as a working forest, ensuring that it will continue to produce a steady supply of sustainably harvested timber for paper and pulp mills. The forest, also known as Reed Plantation, is located in southern Aroostook County on the Mattawamkeag River, near the border of Penobscot and Washington counties.

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Apple's initiative with The Conservation Fund also includes the preservation of more than 3,600 acres of timberland in Brunswick County, N.C.


Apple's investment will allow The Conservation Fund to purchase both forests, place conservation easements on them and then sell both forests to buyers that will adhere to sustainable forestry practices, Robin Murphy, a spokesman for The Conservation Fund, told Mainebiz. The sale proceeds are then used to invest in preserving other forests, he added.

While Apple may not source its paper from either forests in the future, Murphy said, the technology company's investment will help neutralize the impact of its paper consumption by increasing the country's supply of sustainable wood fiber. He said the production capacity of the two forests is equivalent to about half of the wood fiber used last year in packaging for Apple's products, including the iPhone, iPad and over devices.

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Michigan Sells Treaty-Protected, Pristine Public Land for Limestone Mine

Michigan Sells Treaty-Protected, Pristine Public Land for Limestone Mine | Timberland Investment | Scoop.it
A group of American Indians in Michigan have lost their bid to block a land transfer of nearly 9,000 acres to a company proposing a limestone mine—the “largest single public land deal in Michigan history,” according to the Detroit Free Press.

The attempted injunction was the last legal line of defense against the mine, which would cover as many as 13,000 acres, according to the Detroit Free Press. In the deal, which was approved in March, the state will sell 8,810 acres of “surface land or underground mineral rights” to Graymont, a Canadian mining company, for $4.53 million so it can build the limestone mine in the Upper Peninsula, the Detroit Free Press said.
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Lloyd's of London offers Oregon wildfire coverage with $50 million deductible

Lloyd's of London offers Oregon wildfire coverage with $50 million deductible | Timberland Investment | Scoop.it
The state of Oregon has a chance to continue its unique insurance policy that helps pay for fighting wildfires in big burning years — but at a higher premium and deductible.
Lloyd’s of London has offered to cover up to $25 million of wildfire costs this season, after the state pays a deductible of $50 million, The Bulletin newspaper of Bend reported Friday.
After last year’s tough season, the premium the Oregon Department of Forestry and private landowners would pay has nearly doubled: from $2 million to $3.75 million. The deductible is more than twice last year’s $20 million.
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Direct Investing with a Twist

Direct Investing with a Twist | Timberland Investment | Scoop.it

The institutional investment community has been captivated by “disintermediation” for the past five years. This is understandable, as insourcing does (we now know) improve investment performance. But while direct investing remains a hot topic among the Giants, there’s something new reverberating in the industry. The buzzword of the moment is now “platforms.” Everywhere I go, I seem to hear CIOs talking about launching platforms for infrastructure, real estate, agriculture, and a variety of other private (though normally real) assets.
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The direct investment trend began in the late 1990s with Canadian pensions, but the widespread appeal really only began after the global financial crisis (“GFC”). The GFC appeared to illustrate, in rather stark terms, that much of the asset management industry was not operating in the interest of their clients. So much so that some asset owners asked, “Hey, can’t we do at least some of this ourselves, for a fraction of the cost, and get better outcomes?”
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It’s in this context that I think platforms have become increasingly popular, as they offer a hybrid approach to insourcing and outsourcing — one that allows for many of the in-sourcing benefits without subjecting internal organizations to the high burdens of end-to-end in-house asset management.
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To the Giants, platforms generally refer to independent companies operating in attractive investment niches. They are particularly common in emerging markets, and in acquiring and maintaining real assets, such as ports, dams, airports, timberland, energy, toll roads, and sometimes even specialized industrial companies, among other things. The idea here is for a financial partner — the Giant — to take a meaningful position (ideally a control position) in a company and then use that company to make follow-on investments or acquisitions in other assets within a certain niche. The Giant provides capital to help roll up a variety of operating and development assets, while the company sources, screens, and invests in the assets while simultaneously managing them. The best platforms are those in which the Giant has an existing and trust-based corporate relationship and knows a team possesses appropriate expertise and experience. After solidifying this relationship, the idea is then to scale it, injecting additional capital in the platform and asking the team to seek out more assets.
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From the perspective of these investors, platforms offer a cheaper and more aligned access point to attractive assets. This is particularly true for long-duration investments, where the exit is not easily anticipated at the time of the deal closing. It also offers the investor valuable governance rights, as the Giant is often a big player in the company (rather than a small shareholder in a fund). This may include a right of first refusal on all deals, or oversight of internal budgets and compensation.
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Clearly, a platform is not simply a replacement to a fund manager that lets you allocate and close your eyes. You really do have to engage in the sector to identify the companies that could be platforms. Moreover, you have to be engaged in the companies themselves to make them work. So, ironically, adopting this hybrid approach to direct and external investing actually demands quite a lot of internal investment expertise. At the same time, platforms help to extend the reach of internal investment teams, bolstering capabilities in ways that no pension fund could have internally otherwise.

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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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Three investment lessons from the trees

Three investment lessons from the trees | Timberland Investment | Scoop.it

...as winter retreats and spring takes hold, it's a good time to look at trees. And, while there aren't 13 investment themes to take from trees, there are three and they're good ones.


I. Lumber prices are a good predictor of stock market volatility.

This may sound farfetched, but it's the subject of an award-winning paper titled "Lumber: Worth Its Weight in Gold - Offense and Defense in Active Portfolio Management," by Michael Gayed and Charlie Bilello of Pension Partners. In a nutshell: When lumber outperforms gold over the previous 13 weeks, you should be more aggressive in the stock market, and when gold outperforms, you should be more defensive.


Why lumber? Lumber prices are a good indicator of the housing market which, in turn, is a good indicator of the economy as a whole.
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Gold, on the other hand, is a good measure of fear. People buy gold when they think bad things will happen. "In multiple cycles, when lumber outperforms gold, the stock market tends to be less volatile," Bilello says. "The economy is improving and in an expansionary phase. And it's the opposite when lumber is underperforming." What is timber telling us now? "From the end of last year, lumber has been underperforming gold," Bilello says. "It doesn't mean that stocks have to go down it simply means that there is a higher probability of volatility rising."

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II. Invest in timber for the long term.

GMO LLC, a respected Boston money manager, periodically issues a forecast for various types of investments over the next seven years, adjusted for inflation. Their most recent outlook is fairly gloomy: U.S. large-company stocks will lose 2% a year, and high-quality stocks will gain just 0.5% a year. The standout: Timber, which GMO forecasts will gain 4.8% a year, after inflation.


"The fundamental case is that the returns from timber for patient investors should be steady," says Eva Greger, head of GMO's renewable resources group. It doesn't mean that timber will be, well, growing rapidly. "The thing about timber is that it doesn't move around a lot," she says. Timber looks look better than stocks not because timber is soaring, but because stocks are expensive.
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III. You need a lot of patience and land to make money growing timber on your own.

Sam Radcliffe's insight:

Interesting thesis on lumber and gold, but like many on Wall Street (and Main Street), the author misses the distinction between lumber and timber.

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Hancock NZ upbeat on outlook for timber as local units post mixed results

Hancock NZ upbeat on outlook for timber as local units post mixed results | Timberland Investment | Scoop.it
Hancock Forest Management (NZ), the local division of the world's largest timberland investment manager, is confident about the outlook for New Zealand timber.
"The domestic market right now is on a pretty firm footing. There is some pretty solid construction activity in New Zealand right now," said Bill McCallum, general manager of Hancock's local unit, which sells 70 percent of its volume domestically. "We're very confident in the outlook for timber and New Zealand's ability to produce timber on a sustainable basis so our investors are confident about the outlook."
New Zealand residential building consents rose to a seven year high in 2014, led by the rebuilding of earthquake damaged Christchurch and a shortage of housing in the nation's largest city of Auckland, although residential consents have declined for the latest three months. Christchurch still appeared to be in the early phases of rebuilding with activity set to continue for some years, while building activity in Auckland would likely have to continue or strengthen to meet demand for housing, McCallum said.
Hancock, a unit of US based Hancock Natural Resource Group, is the largest owner or manager of planted forests in New Zealand, with more than 200,000 hectares of forest under management, according to industry figures published on the New Zealand Forest Owners Association website.
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Timber family buys 30,000 acres of forest near Gualala

Timber family buys 30,000 acres of forest near Gualala | Timberland Investment | Scoop.it
A swath of coveted timberland near the town of Gualala is being sold to a Northern California family whose existing forest product interests include the Redwood Empire sawmills in Philo and Cloverdale, where logs from the site have been processed for some 30 years.

The Roger Burch family, owner of Redwood Empire and its parent corporation, Pacific States Industries Inc. in San Jose, is expected to close escrow on the property in June, taking possession of nearly 30,000 acres of mixed redwood and Douglas fir at the mouth of the Gualala River currently owned by Gualala Redwoods Inc.

Burch, who has long had timber holdings in Sonoma and Mendocino counties as well as the Bay Area, said he intends to continue what he called GRI’s intelligent management of the site.

“We think that property has been managed as well as any property in California — better than any property that we’re aware of elsewhere — and it’s our intention to practice the same forestry that’s been practiced there,” he said.

Reaction to the sale has been mixed, however, with some expressing disappointment the land will remain in the hands of a commercial timber company rather than conservation interests that made an unsuccessful bid for the property.
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Video: popular misconceptions about the timber industry

Discover the truths to popular misconceptions about the timber industry.

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Ontario adopts cap-and-trade system to reduce greenhouse gases

Ontario adopts cap-and-trade system to reduce greenhouse gases | Timberland Investment | Scoop.it

Ontario will adopt a cap-and-trade system to reduce greenhouse gas emissions, Premier Kathleen Wynne said Monday before she travelled to Quebec to sign a deal with that province. Wynne offered scant details on how the system would work and said specifics will come later. "It would be irresponsible of us to speculate on exactly what the costs are going to be when we haven't worked to design the mechanism yet," she said in Toronto. That will come in the next six months, she added.


Her announcement comes seven years after Ontario first signed onto the Western Climate Initiative with Quebec and California.

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Under a cap-and-trade system, businesses will have a greenhouse gas quota and be able to sell credits to reward efficiency and innovation, Wynne said. Companies that want to burn more fossil fuels can buy carbon credits from those that burn less than they are allowed. Money raised through the system will be reinvested in green technology and green infrastructure, the premier said.

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Jerome Clave's curator insight, April 16, 5:33 AM

This is an interesting sign: despite all their shortcomings cap and trade systems provide a rationale for pricing the cost of limiting greenhouse gases emissions which is much lower than fossile energy producers often claims at least in comparison of these energy price swings.  The carbon right markets also demonstrate that it is far more economically efficient to save on energy consumption than to invest in very costly renewable energy projects. Last but not least these systems are economically counter cyclic, meaning that when economy is bad, prices go down hence pressure on industry is lower , and reversely when the economy is robust.

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How do you plant 1 billion trees a year? With drones, of course

How do you plant 1 billion trees a year? With drones, of course | Timberland Investment | Scoop.it

Instead of doing surveillance or carrying out military missions, the drones from BioCarbon Engineering are taking on a decidedly more progressive task: planting trees and reversing deforestation.


Drones, or unmanned aerial vehicles (UAVs), have taken off in popularity recently, with hobbyists and professionals alike using these small remotely-guided devices for everything from delivering packages to surveying wildlife populations, but one startup has a very ambitious plan for their drones, and one that could have a huge positive impact on global deforestation.


"We are going to counter industrial scale deforestation using industrial scale reforestation. Destruction of global forests from lumber, mining, agriculture, and urban expansion destroys 26 billion trees each year. We believe that this industrial scale deforestation is best combated using the latest automation technologies." - BioCarbon Engineering


BioCarbon Engineering, based in the UK, has developed a system of planting trees with drones, at just a fraction of the cost (15%) of traditional reforestation methods, and at a speed that manual planting can't match - up to 10s of thousands of trees planted per day - and aims to plant 1 billion trees per year using this technology.


This approach, using an industrial-scale reforestation method, isn't quite ready for prime-time, but its prototype, which won £20k in funding from the Skoll Centre for Social Entrepreneurship last year, is expected to be built into a fully functioning platform by the end of the year.


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