WILDLIGHT, Fla.--(BUSINESS WIRE)--Rayonier Inc. (the "Company†or "Rayonier†) (NYSE:RYN) announced today the results of shareholder elections relating to the special dividend declared by its Board of Directors on October 14, 2025. The dividend of $1.40 per common share will be paid on December 12, 2025, to shareholders of record on October 24, 2025. Shareholders of record on October 24, 2025 were asked to make an election to receive the dividend all in cash or all in common shares, with the total cash dist ...

Core Insights - Albert Anthony is a Croatian-American business author and analyst contributing to Seeking Alpha and other financial platforms, with a focus on Real Estate Investment Trusts (REITs) [1] - He has a background in business information systems and experience at Charles Schwab, which supports his analytical capabilities in equities research [1] - Anthony operates his own boutique equities research firm, Albert Anthony & Company, remotely from Texas, and is actively involved in the REIT investment space [1] Company Background - Albert Anthony & Company is a Texas-registered business that provides market commentary and research based on publicly available data [1] - The firm does not manage client funds or provide personalized financial advisory services, focusing instead on general market insights [1] Author's Qualifications - Anthony holds a B.A. in Political Science and is certified in Microsoft Fundamentals and CompTIA Project+ [1] - He is pursuing ongoing certifications in Capital Markets & Securities Analyst (CMSA) and business intelligence/data analysis through the Corporate Finance Institute [1] Media Presence - Anthony has a growing presence on YouTube, where he discusses REITs and shares insights from his investment portfolio [1] - He has participated in numerous business and innovation conferences, enhancing his visibility in the financial community [1]

Core Insights - Albert Anthony is a Croatian-American business author and analyst contributing to Seeking Alpha and other financial platforms, with a focus on Real Estate Investment Trusts (REITs) [1] - He has a background in business information systems and experience at Charles Schwab, which supports his analytical capabilities in equities research [1] - Anthony operates his own boutique equities research firm, Albert Anthony & Company, remotely from Texas, and is actively involved in the REIT investment space [1] Company Background - Albert Anthony & Company is a Texas-registered business that provides market commentary and research based on publicly available data [1] - The firm does not manage client funds or provide personalized financial advisory services, focusing instead on general market insights [1] Author's Credentials - Anthony holds a B.A. in Political Science from Drew University and is certified in Microsoft Fundamentals and CompTIA Project+ [1] - He is pursuing ongoing certifications in Capital Markets & Securities Analyst (CMSA) and business intelligence/data analysis through the Corporate Finance Institute [1] Media Presence - Anthony has a growing presence on YouTube, where he discusses REITs and shares insights from his investment portfolio [1] - He has participated in numerous business and innovation conferences, enhancing his visibility in the financial community [1]

Group 1 - Rayonier (RYN) closed at $22.21, with a 0.6% gain over the past four weeks, and analysts set a mean price target of $28.4, indicating a 27.9% upside potential [1] - The average of five short-term price targets ranges from a low of $24.00 to a high of $37.00, with a standard deviation of $5.03, suggesting variability in estimates [2] - Analysts show strong agreement in revising earnings estimates higher, with the Zacks Consensus Estimate for the current year increasing by 29% over the past month [11][12] Group 2 - RYN has a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] - A tight clustering of price targets, indicated by a low standard deviation, suggests a high degree of agreement among analysts regarding the stock's price movement [9] - While price targets should not be the sole basis for investment decisions, they can provide a useful starting point for further research [10][14]

Group 1 - The company has received over 500 five-star reviews from satisfied members, indicating strong customer satisfaction and perceived value [1] - The company invests significant resources, over $100,000 annually, into researching profitable investment opportunities, particularly in real estate strategies [1] - New members can gain immediate access to the latest top investment picks and receive a discount of $100 upon joining [2] Group 2 - Jussi Askola, the President of Leonberg Capital, is a recognized expert in REIT investing, having authored award-winning academic papers and passed all three CFA exams [3] - Leonberg Capital provides consulting services to hedge funds, family offices, and private equity firms, focusing on value-oriented investment strategies [3] - The investing group High Yield Landlord, led by Jussi Askola, offers features such as multiple portfolios, buy/sell alerts, and direct access to analysts for real-time investment insights [3]

Core Insights - Current market conditions suggest it is a favorable time to invest in Real Estate Investment Trusts (REITs) due to stable core and headline inflation rates at 3.0% [1] - A significant majority, 75% of investors, anticipate a decrease in the Fed Funds rate, which could further enhance the attractiveness of REIT investments [1] Investment Focus - The article emphasizes the importance of investing in income-producing asset classes, particularly REITs, which provide reliable income, diversification, and act as a hedge against inflation [1]

Financial Performance - Rayonier Inc. reported sales of $177.5 million for the three months ended September 30, 2025, a 43% increase from $124.1 million in the same period of 2024[18]. - Operating income for the three months ended September 30, 2025, was $41.7 million, compared to $18.8 million for the same period in 2024, reflecting a 121% increase[18]. - Net income attributable to Rayonier Inc. for the nine months ended September 30, 2025, was $448.5 million, significantly up from $32.0 million in the same period of 2024[18]. - Rayonier Inc. achieved a comprehensive income of $494.4 million for the nine months ended September 30, 2025, compared to $35.2 million in the same period of 2024[18]. - Net income for the nine months ended September 30, 2025, was $454.2 million, a significant increase from $35.8 million in the same period of 2024, representing a growth of 1165%[31]. - Operating income for the third quarter of 2025 was $41.7 million, compared to $18.8 million in the third quarter of 2024, reflecting a year-over-year increase of 121%[38]. - The company reported a net income of $454,231,000 for the nine months ended September 30, 2025, which includes a gain on the sale of discontinued operations of $404,463,000[90]. Earnings and Dividends - Rayonier Inc. reported a basic earnings per share of $0.28 for the three months ended September 30, 2025, up from $0.19 in the same period of 2024[18]. - The company paid dividends totaling $195.4 million for the nine months ended September 30, 2025, compared to $158.1 million in 2024, representing an increase of 23.5%[31]. - Dividends declared were $0.2725 per share, totaling $42,595,000 for the quarter[23]. - The company declared a one-time special dividend of $1.40 per common share, payable on December 12, 2025, to holders of record on October 24, 2025[67]. Assets and Liabilities - The company’s total assets increased to $3.49 billion as of September 30, 2025, compared to $3.47 billion at the end of 2024[20]. - Cash and cash equivalents rose to $919.6 million as of September 30, 2025, compared to $303.1 million at the end of 2024[20]. - The company’s total current liabilities decreased to $282.6 million as of September 30, 2025, from $388.7 million at the end of 2024[20]. - Total current assets increased to $972,921 thousand as of September 30, 2025, up from $436,893 thousand at December 31, 2024, representing a growth of 123%[40]. - Total liabilities decreased to $1,155,883 thousand as of September 30, 2025, down from $1,215,370 thousand at December 31, 2024, a reduction of approximately 5%[40]. - Long-term debt decreased to $845,119 thousand from $1,044,410 thousand, reflecting a decline of 19%[40]. Cash Flow - Cash provided by operating activities for the nine months ended September 30, 2025, was $204.9 million, compared to $173.8 million in 2024, marking an increase of 17.9%[31]. - The balance of cash, cash equivalents, and restricted cash at the end of the period was $920.3 million, a significant increase from $77.2 million at the end of the same period in 2024[31]. - Cash provided by investing activities was $642,880,000 for the nine months ended September 30, 2025, contrasting with cash used of $74,845,000 in 2024[31]. Shareholder Equity - As of September 30, 2025, the total shareholders' equity was $2,302,217,000, with retained earnings of $545,087,000[23]. - Shareholders' equity increased to $2.28 billion as of September 30, 2025, compared to $1.77 billion at the end of 2024[20]. - The company’s retained earnings increased to $514.2 million as of September 30, 2025, from $257.3 million at the end of 2024[20]. Discontinued Operations - Rayonier Inc. reported a gain on the sale of discontinued operations amounting to $404.5 million for the nine months ended September 30, 2025[18]. - The company reported a net income from discontinued operations of $404,415,000 for the quarter ending March 31, 2025[22]. - Rayonier's operating income from discontinued operations for the nine months ended September 30, 2025, was $1.9 million, compared to $21.9 million in 2024, reflecting a decline of 91.4%[71]. Segment Performance - For the three months ended September 30, 2025, total sales reached $177,531,000, with Southern Timber contributing $66,834,000 and Pacific Northwest Timber contributing $19,941,000[83]. - For the nine months ended September 30, 2025, total sales were $366,990,000, with Southern Timber at $171,102,000 and Real Estate at $130,355,000[90]. - Total timber sales for the nine months ended September 30, 2025, were $197,720, with Southern Timber at $137,856 and Pacific Northwest Timber at $59,864[108]. Financial Commitments and Debt Management - The company had available borrowings of $192.4 million under the Revolving Credit Facility as of September 30, 2025, net of $7.6 million securing outstanding letters of credit[136]. - The covenant EBITDA to consolidated interest expense ratio was 10.9 to 1 as of September 30, 2025, significantly exceeding the requirement of 2.5 to 1[137]. - Interest expense for the nine months ended September 30, 2025, was $13,654,000, down from $21,379,000 in the same period of 2024[145]. Taxation - Rayonier's income tax expense for continuing operations was $291,000 for the nine months ended September 30, 2025, compared to a benefit of $981,000 for the same period in 2024[180]. - The company's annualized effective tax rate after discrete items for the nine months ended September 30, 2025, was 0.6%, significantly lower than the 7.6% rate for the same period in 2024[181].

Financial Data and Key Metrics Changes - The company generated adjusted EBITDA of $114 million in Q3 2025, which is approximately double compared to the prior year quarter, driven by strong performance in the real estate segment and improved results in the southern timber segment [5][10] - Pro forma net income for the quarter was $50 million, or $0.32 per share, compared to $43 million, or $0.28 per share, in the prior year [9][10] - Sales totaled $178 million, with operating income at $42 million [9] Business Line Data and Key Metrics Changes - Southern Timber segment adjusted EBITDA was $43 million, up 13% from the prior year, with a 24% increase in harvest volumes [6][13] - Pacific Northwest Timber segment adjusted EBITDA was $6 million, down approximately $2 million from the prior year, due to a 34% decline in harvest volumes [7][18] - Real estate segment adjusted EBITDA was $74 million, significantly up from the prior year, reflecting a large conservation sale in Florida and strong results in real estate development [8][20] Market Data and Key Metrics Changes - The company noted challenging market conditions in the Pacific Northwest, with higher log prices offset by lower harvest volumes [7][18] - The southern timber market saw increased harvest volumes due to drier weather and normalization of green block demand [6][13] - The company expects supply-side tightening in the southern markets due to the impact of hurricanes on timber supply [16] Company Strategy and Development Direction - The proposed merger with PotlatchDeltic is expected to create a premier land resources company with an estimated $40 million in run-rate synergies [3][4][29] - The company is focused on optimizing financial results while advancing strategic initiatives and capital allocation for long-term value creation [26][27] - The company is exploring opportunities in land-based solutions, including solar and carbon capture projects, to unlock additional value [27][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for increased U.S. lumber production due to higher duty rates and anticipated improvements in housing demand [26][27] - The company is on track to achieve full-year adjusted EBITDA at or above the higher end of prior guidance, driven by strong momentum in the real estate business [8][24] - Management acknowledged ongoing challenges in the pulpwood market but highlighted potential for improved operating rates as mills adjust to recent closures [17][68] Other Important Information - The company declared a special dividend of $1.40 per share, to be paid in December, reflecting taxable gains from the sale of its New Zealand joint venture interest [12] - The company repurchased 1.2 million shares at an average price of $24.55 per share during the third quarter [10] Q&A Session Summary Question: Update on sustainability of increased real estate activity - Management noted that real estate sales can be lumpy and highlighted a significant conservation sale that took a year to finalize, indicating that such activity may not be regular [32][33] Question: Alternative demand sources for pulpwood - Management mentioned renewed export activity to Europe and ongoing negotiations for regulatory relief to boost timber exports, alongside interest in sustainable fuel and biofuels [34][35][36] Question: Impact of hurricane damage on timber supply - Management acknowledged significant damage but could not quantify the exact percentage of reduced supply, indicating it would impact the market in the near term [41][42] Question: Differences in rural real estate sales by geography - Management confirmed that Texas and Florida remain the strongest markets for HBU (Highest and Best Use) real estate [42] Question: Drivers of non-timber sales increase - Management attributed the uptick in non-timber sales to pipeline easements, which are episodic but expected to continue due to growth in related industries [46][47] Question: Timing for new pulpwood demand sources - Management indicated that traditional manufacturing adjustments would be short-term, while biofuel projects could take five years to materialize [49][50] Question: Capital allocation thoughts going into year-end - Management emphasized a flexible approach to capital allocation, focusing on maintaining an investment-grade balance sheet and considering share buybacks post-merger [56][57] Question: Pulpwood market dynamics and mill closures - Management noted that while closures impact demand, remaining mills may increase utilization rates, and regional dynamics could help balance supply and demand [64][68]

Financial Performance - Q3 2025 - Sales reached $1775 million in Q3 2025, compared to $1241 million in Q3 2024[10] - Operating income was $417 million in Q3 2025, significantly higher than $188 million in Q3 2024[10] - Adjusted EBITDA increased to $1143 million in Q3 2025 from $572 million in Q3 2024[10] - Net income attributable to Rayonier Inc was $432 million in Q3 2025, compared to $288 million in Q3 2024[10] Year-to-Date (YTD) Performance - Q3 2025 - Cash provided by operating activities was $2049 million for the nine months ended September 30, 2025, compared to $1738 million for the same period in 2024[10] - Cash available for distribution (CAD) was $1535 million for the nine months ended September 30, 2025, compared to $771 million in 2024[10] - Adjusted EBITDA reached $1862 million YTD in 2025, up from $1352 million YTD in 2024[17] Segment Performance - Q3 2025 - Southern Timber segment's operating income was $225 million in Q3 2025, compared to $198 million in Q3 2024[12] - Pacific Northwest Timber segment's operating income was $18 million in Q3 2025, compared to $08 million in Q3 2024[12] - Real Estate segment's operating income was $264 million in Q3 2025, compared to $86 million in Q3 2024[12]

Core Viewpoint - Rayonier reported quarterly earnings of $0.32 per share, exceeding the Zacks Consensus Estimate of $0.23 per share, and showing a significant increase from $0.12 per share a year ago, representing an earnings surprise of +39.13% [1][2] Financial Performance - The company achieved revenues of $177.5 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 8.67%, although this is a decline from year-ago revenues of $195 million [2] - Over the last four quarters, Rayonier has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times as well [2] Stock Performance and Outlook - Rayonier shares have declined approximately 16.5% since the beginning of the year, contrasting with the S&P 500's gain of 15.1% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] Estimate Revisions and Rankings - Prior to the earnings release, the estimate revisions trend for Rayonier was unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] - The current consensus EPS estimate for the upcoming quarter is $0.13 on revenues of $129.67 million, and for the current fiscal year, it is $0.38 on revenues of $482.27 million [7] Industry Context - The Building Products - Wood industry, to which Rayonier belongs, is currently ranked in the bottom 5% of over 250 Zacks industries, suggesting that the industry outlook could significantly impact the stock's performance [8]