Timberland Investment
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Rayonier will separate into two publicly traded companies this year

Rayonier will separate into two publicly traded companies this year | Timberland Investment | Scoop.it

Rayonier Inc. said it plans to separate its performance fibers business from its forest resources and real estate operations to form two publicly traded companies this year.


The Jacksonville, Fla., company disclosed the plans to spin off the performance fibers business to shareholders, along with better-than-expected fourth-quarter earnings, sending its shares higher in midday trading Monday.

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"Everything lined up at the perfect time to launch these two businesses," Chief Executive Paul Boynton said in an interview with The Wall Street Journal on Monday.


Mr. Boynton will serve as CEO of the performance fibers business. The still-unnamed company recorded revenue of more than $1 billion last year and has about 675,000 metric tons of cellulose specialties capacity between its Florida and Georgia facilities.

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The forest resources and real-estate operations, meanwhile, will retain the Rayonier name and has 2.6 million acres of timberlands.

Mr. Boynton said he expects a boost in housing starts to drive growth at that company.


"We're expecting [housing starts] to move back to 1.5 million starts per year," Mr. Boynton said. "We think that will be a significant driver. We're on the rebound economically in the U.S."

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The forest resources business posted $382 million in sales last year, while its real estate arm booked $149 million in sales. The company is searching for a chief executive to lead that operation, and current board member Richard Kincaid will serve as chairman.

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Institution Driven Investing: A new model for pension funds, endowments

Institution Driven Investing: A new model for pension funds, endowments | Timberland Investment | Scoop.it
In a world marked by so many unknowns and potential pitfalls, institutional and pension fund managers need a new way to look at investing — one that starts with the characteristics of the institution and then works up from there.

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[Editor: This article cites a commercial real estate solution, but could not timberland serve the same purpose?]

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St. Joe Board Approves New Real Estate Investment Strategy

St. Joe Board Approves New Real Estate Investment Strategy | Timberland Investment | Scoop.it

"...As part of this repositioning, the company expects properties may be sold in bulk, in undeveloped parcels, or at lower price points."


St. Joe owns 577,000 acres in the Florida panhandle.


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RISI VIEWPOINT: Chinese outward investment and forest resources

RISI VIEWPOINT: Chinese outward investment and forest resources | Timberland Investment | Scoop.it

Is expanded investment in forest assets by Chinese state-owned companies an opportunity for or a threat to TIMOs6 involved in international forestry? While some TIMOs may find themselves bidding for assets in competition with Chinese firms, we note that the other owner of Wenita (38%) is the US-based TIMO GMO Renewable Resources. And we know that other TIMOs have been having conversations with Chinese firms to discuss possible collaboration. Whether Chinese state-owned companies will choose to work with established forest asset managers, or try to invest directly, will likely depend on the particular projects, whether processing facilities are to be included, history of the enterprise, and so on. But we have little doubt that Chinese capital will be playing an increasing role in the international timberland investment markets in the next several years. This will add an interesting dynamic to the timberland markets, as Chinese firms are not known for spending much time or money in carefully dissecting potential investments with Western style analysis. Their preferred strategy of "shoot first, aim later" will no doubt lead to a few more failures, but will also lead to some more positive results, especially for those Chinese companies who pair up with the right partners in the right locations.

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Profiles of Florida's Top 10 Private Landowners

Profiles of Florida's Top 10 Private Landowners | Timberland Investment | Scoop.it

Combined, the 10 companies own more than 5,000 square miles of Florida — roughly a tenth of the state's total land area. The large privately owned swaths are vital to Florida's future — from their environmental importance for protecting the state's freshwater resources and wildlife habitats to their economic significance for preserving agriculture and developing new business sectors.

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Like Plum Creek, most of the companies on the top 10 list plan to remain primarily agricultural businesses — whether raising cattle in central Florida, growing sugar cane and citrus in the southern part of the state or planting trees in the north. In addition to use for lumber and pulp, pines grown by Plum Creek, St. Joe Co., Foley Timber, Rayonier Timber and others soon will become part of the biofuels boom...

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But Plum Creek and most of the others also are moving to develop strategic pieces of their Florida holdings.

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