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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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South leads U.S. timber industry

South leads U.S. timber industry | Timberland Investment | Scoop.it

The Great Northwest has the reputation, the history and the swagger, when it comes to timber. But the Southeast is the place to be.
That was the message last week from Brooks Mendell, president of Forisk Consulting, which tracks the forestry industry. Mendell was one of the speakers last week at a dinner at Thomas Cotton Gin, hosted jointly by AgSouth Credit and Southeastern Land Sales.

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Mendell said that the South has a decided advantage because the bulk of its timber is privately owned. The South has more than 200 million acres of timberland, and 90 percent of it is privately held. By contrast, the Pacific Northwest has less than 50 million acres of timberland, and most of that is public land. Cutting timber in public land inevitably involves bureaucracy.


Another asset for the South is the cost of delivering the product to the sawmill. Southern timber reaches the mill at less than half the cost of Pacific Northwest timber, when contrasting pine with hemlock and Douglas fir.

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Forest Fragmentation Threatens More Than Just Trees

Forest Fragmentation Threatens More Than Just Trees | Timberland Investment | Scoop.it
Seventy percent of the world's forest are located within just one kilometer of the forest edge. That's a result of centuries of forest fragmentation, done in the name of agricultural clearing, urban development, and other human interference. As bad as that sounds, the consequences for biodiversity are perhaps even most distressing. A review of fragmentation experiments on five continents over three and a half decades shows how forest fragmentation can reduce biodiversity by up to 75 percent.

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"Fragmentation experiments—some of the largest and longest-running experiments in ecology—provide clear evidence of strong and typically degrading impacts of habitat fragmentation on biodiversity and ecological processes," the team writes today in Science Advances. That includes some surprising effects, such as surges for some species and long periods of time before fragmentation's effects become detectable. "In light of these conclusions and ongoing debates, we suggest that fragmentation’s consistency, pervasiveness, and long-term degrading effect on biodiversity and ecosystem function have not been fully appreciated," they write.

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NC State refocuses on conservation of Hofmann Forest

NC State refocuses on conservation of Hofmann Forest | Timberland Investment | Scoop.it
Three months after a controversial sale of Hofmann Forest fell through, North Carolina State University officials said Tuesday that they would retain control of most of the 79,000-acre research forest near the coast.

The Endowment Fund of N.C. State and the Natural Resources Foundation said the change in direction would protect much of the land from intensive development, maintaining a sustainable working forest and access to it for students and faculty.
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Stumpage Market Trends in the US South: Sale and Harvest Data

Stumpage Market Trends in the US South: Sale and Harvest Data | Timberland Investment | Scoop.it
In 2014, stumpage prices increased for all roundwood products across the US South. Recovery in the US economy and strong export demand for hardwood sawlogs pushed prices higher. In addition to price increases, interesting trends in sales and harvests emerged.
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Forestry: See the money for the trees

Forestry: See the money for the trees | Timberland Investment | Scoop.it

Money doesn’t grow on trees, but this could be missing the point. As some institutional investors have found, the trees themselves are valuable. And they tend to become more valuable over time as they increase in height and volume, making their lumber suitable for a wider array of purposes.
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It is a significant market, with the total value of global investable core timberland standing at an estimated $125bn, according to Pension Consulting Alliance’s (PCA) June 2014 review of major asset classes. Institutional investment in timberland totalled $45bn as of 2011, according to Hancock Timber Resource Group, a unit of Manulife Asset Management. While there are investable forests around the world, the single largest market is the US, which accounts for 62% of the value, with Latin America a distant second with a 19% share, followed by New Zealand, Canada, Australia and the Finland/Sweden market with about 5% each.
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The risk-reward profile of timberland has been attractive, with returns negatively correlated to US equities over the past 10 years, PCA says. Timberland returns have increased each year for the past five years, according to the National Council of Real Estate Investment Fiduciaries (NCREIF). Reflecting better economic conditions, NCREIF’s Timberland Index posted a total return for 2014 of 10.48%, consisting of 2.86% from income and 7.46% from price appreciation.
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While performance has been on the upswing, the volatility of timberland declined slightly through the end of June 2014, from an annualised standard deviation of 5.9% over the past 10 years, to 4.7% in the year through June, according to PCA. During that time, the volatility of timberland was only slightly above the Barclays Capital Aggregate Bond index, which posted a 2.4% annualised standard deviation for the first half of the year, with timber producing a 9.9% return, against a 4.4% return for bonds, the consultancy says.
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There are two principal ways in the US to access timberland. On the private side, direct investments in land and forests are made through TIMOs, specialised timber investment management organisations, which are predominantly closed-ended commingled blind pool vehicles with 10-15-year terms, or separate accounts that typically require $100m minimum investments.
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On the public side are timber REITs, which typically invest in related assets beyond land. The timber REIT sector is dominated by four companies – Plum Creek, Weyerhaeuser, Potlatch, and Rayonier – but while REITs offer liquidity, being exchange-traded adds equity-market volatility.
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As a low-volatility diversifier with low correlation to core equity and fixed-income holdings, private timberland can fit in a wide range of allocation buckets. Consultants say timber is commonly placed in an institution’s real estate portfolio, but it can also be held in an alternative or specialty investment portfolio, and larger institutional investors may find a home for timberland in a natural resource or broad real assets allocation.
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Traditional investment managers are also investing in sustainable timber expertise. In 2012, TIAA-CREF bought a controlling majority stake in GreenWood Resources. Based in Portland, Oregon, the heartland of America’s sustainable economy, GreenWood specialises in fast-growing species such as poplar, which is used in paper production and as inexpensive lumber for shipping pallets.

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Timberland Investment Challenges and Timber REIT Performance

Timberland Investment Challenges and Timber REIT Performance | Timberland Investment | Scoop.it
Timberland investment vehicles, while continuing to generate positive returns, lagged both the S&P 500 and the publicly traded real estate sector. The National Council of Real Estate Investment Fiduciaries (NCREIF) reported 2014 total returns for private U.S. timberlands of 10.48%, which marks the fourth consecutive year of improved returns. The figure below compares by year, for 2012 through 2014, the performance of indices tracking the S&P 500, all publicly traded real estate investment trusts (NAREIT), private timberlands (NCREIF) and publicly- traded timberland-owning REITs (Forisk Timber REIT Index (FTR)). Timber REITs in the FTR Index for 2012 and 2013 include Plum Creek (PCL), Potlatch (PCH), Rayonier (RYN) and Weyerhaeuser (WY). The 2014 figures also include CatchMark Timber Trust (CTT).
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A Harvest of Land-Related Tax Breaks

A Harvest of Land-Related Tax Breaks | Timberland Investment | Scoop.it
Taxpayers who use land to grow timber can find benefits beyond the property-tax break. “Timberland is great for wealth preservation,” says Joel Shapiro, the chief executive of Timbervest, a timberland investment-management firm based in Atlanta. Even when land values or the demand for timber falls off, the number and size of the trees continue to grow.

Timber’s growth provides an annual return of between 2% and 6% a year, says Timbervest’s CIO Bill Boden, adding that once you sell the timber, profits are taxed at capital-gains rates, rather than higher income-tax rates. Only if you turn the timber into other products, such as pulp or poles, do you face income taxes.
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Tropical forests may be vanishing even faster than previously thought

Tropical forests may be vanishing even faster than previously thought | Timberland Investment | Scoop.it

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According to the United Nations’ Intergovernmental Panel on Climate Change, recent years have seen “decreasing deforestation rates and increased afforestation” — and thus, less carbon dioxide pouring into to the atmosphere from this source. Similarly, a 2010 report from the U.N.’s Food and Agriculture Organization found that while 16 million hectares of forest per year were lost in the 1990s, only 13 million per year were lost in the 2000s. It noted in particular that two countries that have seen major tropical deforestation — Brazil and Indonesia — “have significantly reduced their rate of loss.”

But according to a new study just out in the journal Geophysical Research Letters, the U.N. has it wrong. The study, by the University of Maryland, College Park, geographer Do-Hyung Kim and two colleagues, uses satellite imagery to examine how tropical forests in particular are faring. And their answer is far from heartening.

“Our estimates indicate a 62% acceleration in net deforestation in the humid tropics from the 1990s to the 2000s,” write the authors.

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California Carbon Auction Brings In $1 Billion! And Protects Forests

California Carbon Auction Brings In $1 Billion! And Protects Forests | Timberland Investment | Scoop.it
California raked in $1 billion in first cap-and-trade auction of the year, and since they take place every quarter, it can look forward to raising about $4 billion this year.

December's auction brought in $400 million, so why so much more now? As of January 1, transportation fuels are included in the program. 

This is a big deal. Until now, the program applied to a few hundred major stationary polluters - utilities, manufacturers and food processors. Now, it includes mobile sources - transportation fuels - which accounts for 40%  of California's emissions, expanding it dramatically. 

Refineries and fuel wholesalers have to pay for emissions tied to fuel sales. They passed the cost to motorists, raising gas prices about 10 cents a gallon at the pump. 

Even with the number of permits raised substantially, prices held steady at $12.21 per carbon credit, which gives companies the right to emit 1 ton of carbon this year.

Last year, Quebec joined the program, so the province will get a  share. When Quebec on board the program became the  Western Climate Initiative. 
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Round Valley First Forest Carbon Offset Project on Native Trust Land for California

Round Valley First Forest Carbon Offset Project on Native Trust Land for California | Timberland Investment | Scoop.it
Round Valley and New Forests on Tuesday announced the regulatory approval of the first forest carbon offset project developed on Native American trust land for the California carbon market.

Carbon offsetting, according to carbonneutral.com, “is the use of carbon credits to enable businesses to compensate for their emissions, meet their carbon reduction goals and support the move to a low carbon economy.”

The offsetting provides funding for renewable energy, forestry and resource conservation projects that generate reductions in greenhouse gas emissions.

The Daily Astorian reports that Carbon-dioxide emissions are the most prevalent greenhouse gas from human activity and are tied to global warming.

The Round Valley Indian Tribes Improved Forest Management Project earlier this month received approval from the California Air Resources Board (ARB) for more than 540,000 ARB offset credits – these credits can be used for compliance in the California greenhouse gas cap and trade program.
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Oregon might lose wildfire insurance

Oregon might lose wildfire insurance | Timberland Investment | Scoop.it
Private timberland owners and the state officials charged with protecting those lands are both in the dark over how consecutive bad fire seasons will change the way Oregon pays to fight catastrophic wildfires.

For nearly four decades, Oregon has purchased an insurance policy that kicks in when wildfires are catastrophic. It’s a unique setup similar to car insurance.

The state has paid a premium of around $1 million and a $25 million deductible before the company chips in. The policy has saved the state as much as $46 million since 1973.

With a month left before spring, the only thing that is certain is that the state and landowners most likely will have to pony up if they want the insurance this year, if Oregon gets a policy at all.

The state sent its top forester, Doug Decker, across the Atlantic to meet face to face with brokers from Lloyd’s of London early this month.

Even now, Decker says, the future is uncertain.

“They’ll be asking themselves the question what can they afford to provide, and we’ll be asking the question what can we afford to pay,” Decker said.
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Singapore company buys 197K acres of timberland in Southern Oregon

Singapore company buys 197K acres of timberland in Southern Oregon | Timberland Investment | Scoop.it
Editor's note: The price of this transaction has been removed from the original story pending verification.
A Singapore-based investor has purchased a major Southern Oregon timber tract.
Whitefish Cascade Forest Resources LLC secured 197,000 acres in Klamath and Deschutes counties in Oregon's High Desert.
Fidelity National Financial Ventures (NYSE: FNFV) announced the deal on Wednesday. The company said it covered all of the assets of its portfolio company, Cascade Timberlands LLC.
FNFV received a cash distribution of approximately $63 million.
"We are excited to monetize the value of Cascade for our shareholders," said FNF Chairman William P. Foley, II. "We have been owners of Cascade for approximately eight years and believe it is in the best interest of our shareholders to monetize the value of this land at this time and seek another use for this cash in the hopes of maximizing the value of our FNFV assets."
Whitefish Cascade Forest Resources is registered as an Oregon company with a Salem address, but its principal address is in Singapore and its mailing address is in Seattle.
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Institutions raise exposure to renewables

Institutions raise exposure to renewables | Timberland Investment | Scoop.it
The proportion of European institutional investors with exposure to renewable energy assets has almost doubled over the last year, according to research by alternative asset manager, Aquila Capital.

The survey carried out in February this year found 39% of European institutional investors now have some exposure to renewable energy assets or infrastructure, up from 21% last year. The proportion investing in farmland has also risen sharply, to 14% from only 3% last year.

In general, of the 61 institutional investors surveyed across Europe, 73% said they were optimistic about real assets, compared to 41% a year ago. Furthermore, the proportion that were “very positive” nearly doubled.

Aquila Capital’s research says real estate is the most popular type of real asset, with 86% of investors in the survey holding some exposure to it.
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Carbon-storing Amazon forest is losing its touch

Carbon-storing Amazon forest is losing its touch | Timberland Investment | Scoop.it

The Amazon has long been seen as a life preserver of sorts in the global warming fight, its lush forest storing billions of tons of carbon.

But now a paper published in Nature Wednesday says that the Amazon is losing its capacity to serve as a carbon sink. In a 30-year study of the South American tropical forest, an international team found that the Amazon has gone from storing 2 billion tons of carbon dioxide each year in the 1990s to half that now.
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"Climate change models that include vegetation responses assume that as long as carbon dioxide levels keep increasing, then the Amazon will continue to accumulate carbon," he said. "Our study shows that this may not be the case and that tree mortality processes are critical in this system."

William R. L. Anderegg, a NOAA Climate & Global Change Postdoctoral Fellow at the Princeton Environmental Institute who did not take part in the study, said the findings were "big news" and showed the potential limits of forests as a solution for combating global warming.

"Scientists have known for a long time that eventually forests would saturate and their carbon uptake would decline to zero over time as mortality of trees caught up with the increased growth rates," Anderegg said. "But what's really stunning to me is that we thought this saturation would occur decades from now, even towards or beyond the end of the century. This study shows that it really seems to have started in the 2000s. That's decades before we expected. This is bad news, because forests are currently one of the most effective carbon sinks."

Sam Radcliffe's insight:

Of course carbon uptake will decline to zero if you let the forest progress to a steady state where growth = mortality. But if you are able to harvest mortality and fix that carbon in solid wood products, increased growth rates will accelerate carbon storage. Do the climate models assume unmanaged forests in the vegetation response? I don't know the answer but let's say I'm skeptical that these models are dynamic enough to incorporate a man-initiated feedback response.

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Investors eye timber plantation listings

Investors eye timber plantation listings | Timberland Investment | Scoop.it
A SLEW of medium-sized ­timber plantations will hit the market as institutional investors look to aggregate smaller allotments and gain a foothold in the strong softwood market.

CBRE head of timberland transactions David Smith said he expected properties valued at a combined $50 million to be listed in the next month.
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Duke brings back Timberland Investments short course

Duke brings back Timberland Investments short course | Timberland Investment | Scoop.it

AUDIENCE

Timberland-investment professionals in developmental stages of their careers and forestry, accounting, legal, and conservation professionals who interact with them; investment analysts, portfolio managers, financial planners, and trust officers who make decisions regarding timberland assets; and public-policy officials who desire to better understand institutional timberland managers.

TUITION

Tuition fees include course tuition, all course materials, lunch both days, Thursday dinner, in-class refreshments and light refreshments at social.  Overnight accommodations, transportation to/from Durham, and personal expenses are not included.


Early Registration on or before April 1, 2015 - $1250.00

Standard Registration on or after April 2, 2015 - $1500.00

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AFM to Auction Large WV Property

AFM to Auction Large WV Property | Timberland Investment | Scoop.it


Logan Timberlands is located in Lincoln, Logan, Mingo, and Wayne Counties, West Virginia. This ±88,333 acreage property is an excellent investment opportunity situated in an area with numerous forest products markets and growing demand for recreational properties.

The acreage is dominated by a diverse species mix of Appalachian hardwood stands growing on productive sites that are positioned for strong biological growth, product shifts and price appreciation. Most importantly, the property contains an exceptionally high percentage of merchantable acreage, with some 75% of the property in merchantable hardwood and 12% in pre-merchantable hardwood. The predominant tree species include Poplar, Red Oak, Chestnut Oak, White Oak, Hickory, and Maple. In total, these species consist of over 86% of the total sawtimber volume on the property. The balance of the acreage is in roads, utilities, and open areas. The timberlands were re-inventoried in November 2014.

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Brookfield's Q4 Research Report

Sam Radcliffe's insight:

Reid Carter always has some frank insights into the TIMO/REIT space.

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Drax publishes biomass supply data in bid to address sustainability concerns

Drax publishes biomass supply data in bid to address sustainability concerns | Timberland Investment | Scoop.it
Energy giant Drax has sought to alleviate concerns about the environmental impact of its ambitious plans to shift from coal to biomass power, publishing comprehensive new sustainability data alongside its annual report last week.
The company last week confirmed that pre-tax profits rose last year to £166m, as the company continued work on “Europe’s largest decarbonisation project whilst producing eight per cent of the UK’s electricity”.
The report revealed that a third of the power plant’s generating capacity is now the result of biomass generation, adding that its third converted biomass unit is due to come online in the third quarter of this year.
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AXA Real Estate completes acquisition of 3,700 hectares of forest land in Finland with UPM

AXA Real Estate completes acquisition of 3,700 hectares of forest land in Finland with UPM | Timberland Investment | Scoop.it

AXA Real Estate Investment Managers (“AXA Real Estate”), the leading real estate portfolio and asset manager in Europe has completed the acquisition of three forest estates in Finland, covering 3,700 hectares in total, for a consideration of 11,2 million EUR with UPM, one of the leading forest industry companies in Europe and a major forest owner in Finland. AXA Real Estate has undertaken the acquisition on behalf of AXA Insurance Company.

The transaction is AXA Real Estate’s first forest acquisition, on behalf of its clients, outside of France and marks the beginning of its strategy to diversify its portfolio in geographies where forestry-related industries account for a significant proportion of GDP. The acquisition brings AXA Real Estate’s total forestry assets under management to 100 million EUR, comprising over 17,600 hectares in total. UPM will continue to provide forest management and timber harvesting services to ensure sustainable management of these forests.

Christophe Lebrun, Head of Forest Investment at AXA Real Estate, commented: “Investor appetite for alternative asset classes has seen a marked increase in recent years while demand remains for strong and sustainable returns.

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Angola’s Sovereign Wealth Fund Targets Mine, Timber Investments

Angola’s Sovereign Wealth Fund Targets Mine, Timber Investments | Timberland Investment | Scoop.it
Angola’s $5 billion sovereign wealth fund is seeking investments in mining, timber, health and agriculture as it seeks to diversify its asset base and increase returns.
“A large portion of the portfolio is invested in international securities,” Jose Filomeno dos Santos, the fund’s chairman, said in an interview with Bloomberg Television in Cape Town on Thursday. “We are looking at several opportunities. We wouldn’t want to give away these opportunities by disclosing what they are before they are completely settled.”
The fund, which is managed by Zug, Switzerland-based Quantum Global Investment Management Ltd., was established to invest surplus state funds and promote development in Africa’s largest crude oil producer after Nigeria. It has allocated $1.1 billion toward investing in toll roads, ports and other infrastructure projects and $500 million toward hotels. It also plans to spend about $250 million on agriculture projects.
“We are really long-term investors and not looking for quick wins,” Dos Santos said. “All of our funds have a 10-year horizon. What we find in our region of the world, in Africa, particularly in Angola, is that the safest way to invest is as the project starts. That’s when potential mistakes regarding the viability assessments of such projects can be made and when more care should be taken regarding the implementation.”
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The $64 trillion question: Convergence in asset management

The $64 trillion question: Convergence in asset management | Timberland Investment | Scoop.it

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Institutions managing more than $2 billion are moving down the liquidity spectrum to embrace more specialized private-market exposures, especially to real assets. Two-thirds of these investors report that they plan to increase allocations to agriculture, energy, infrastructure, real estate, and timber; they seek to move beyond relative investment performance toward more defined investment outcomes and extract liquidity premiums while gaining exposure to hard-to-access forms of beta. More specifically, large public pensions have come to see alternatives as critical “outcome oriented” building blocks for their portfolio (for example, as infrastructure for long-dated income and private equity to extract illiquidity premiums). Smaller investors (those with less than $2 billion in AUM, invested by small teams of generalists) say they seek the enhanced performance and diversification that alternatives can potentially deliver (for example, unconstrained bond strategies as a replacement for core fixed-income holdings). Smaller pension plans are contemplating a shift to the “endowment model” of more aggressive and direct allocations to alternatives (versus the historical emphasis on traditional asset classes or allocations via funds of funds). Investors are also diverging in their investment priorities and manager preferences (Exhibit 3). Large investors that we surveyed indicated a desire to take greater control over their alternative investing activities. These institutions prioritize the sourcing of coinvestments and often seek to consolidate their relationships with investment managers into a smaller and more strategic set; often, they also seek assistance in building capabilities. These large, sophisticated institutions are becoming more differentiated, frequently leaning toward specialist boutiques (rather than large, generalist managers) for their ability to deliver unique capabilities and customized exposures, often in the form of separate accounts.

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2015 Housing Starts Outlook and the Sensitivity of Lumber

2015 Housing Starts Outlook and the Sensitivity of Lumber | Timberland Investment | Scoop.it

Looking forward, what do we assume for US housing markets? Forisk’s Housing Starts Outlook combines independent forecasts from professionals in the housing industry. Currently, these include Fannie Mae, Freddie Mac, Mesirow Financial, the National Association of Home Builders (NAHB), The Conference Board, and Wells Fargo, as well as long-term assumptions from the Congressional Budget Office (CBO).


Forisk’s 2015 Base Case peaks at 1.60 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.


Overall, Forisk’s housing start projections total 1.176 million for 2015.

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Three key sources supply most softwood lumber used in the United States: the U.S. South, the Pacific Northwest, and Canadian imports. These three account for 95% of the softwood lumber consumed in the United States. So how we view the capacity and production – the availability and health – of softwood lumber mills in each region critically affects our view of future timber prices and wood costs relative to actual housing starts.


Forisk’s Base Case assumes 1.176 million housing starts in the U.S. This corresponds to an estimated 46.08 billion board feet of softwood lumber consumption, an increase of 7.5% over 2014. If housing starts approach 1.3 million in 2015 instead of 1.2 million (you never know), this would require an additional 1.5-1.8 billion board feet of softwood lumber. To fill this demand, production in the U.S. South, instead of increasing 8.5% would need to grow production over 14% above 2014. Alternately, a slower housing market, one that hovers below 1.1 million housing starts, depresses wood demand and timber price growth.


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Potlatch Taps Mark Bice to Manage Land Acquisitions and Sales in Southern US

Potlatch Taps Mark Bice to Manage Land Acquisitions and Sales in Southern US | Timberland Investment | Scoop.it
Potlatch Corporation (Nasdaq:PCH) announced today that it has hired Mark Bice as Real Estate and Acquisition Manager effective March 2nd. Bice will be responsible for all Real Estate activity including timberland acquisitions and small parcel sales for the company in Alabama, Arkansas and Mississippi. Bice will be located in Birmingham, Alabama.
"Potlatch is pleased to bring someone on board with such deep knowledge and experience in land transactions in the US Southeast," said Mike Covey, chairman and chief executive officer for Potlatch Corporation. "Timberland acquisition in the US Southeast is a key part of our growth strategy, especially where opportunities exist to 'bolt on' to our recent Alabama and Mississippi acquisitions," added Covey.
Bice comes to us from BTG Pactual Timberland Investment group (formerly Regions Timberland Group), a Timberland Investment Management Organization headquartered in Atlanta, Georgia. Bice is a recognized 30-year plus industry veteran having negotiated and closed over $1 billion in timberland transactions, in the US south as well as other regions in the country. Potlatch purchased 201,000 acres in Alabama and Mississippi in December of 2014. The company believes acquiring timberland in the US Southeast is timely given the expectation that housing starts will continue to increase in the coming years and that incremental volume to meet housing growth will mostly come from southern timber markets.
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