Company Overview - Rayonier's FY24 sales were $1,263.0 million[8] - Rayonier's FY24 Adjusted EBITDA was $298.8 million[8] - Rayonier manages approximately 2.5 million total acres of timberland[8] - Timber segments accounted for 68% of Rayonier's business[8] Real Estate Strategy - From 2021-2024, Rayonier's average HBU price per acre was $4,468, representing a 117% premium to NCREIF[35] - Rayonier has a high-value real estate development pipeline with development potential on approximately 120,000 acres[37] Land-Based Solutions - Rayonier reached approximately 39,000 acres under solar option by year-end 2024[58] - Rayonier reached approximately 154,000 acres under CCS lease by year-end 2024[74] - Utility solar installations are projected to require approximately 1.5 million acres through 2030[48] Financial Performance and Capital Allocation - Rayonier completed or announced $1.45 billion in dispositions[88] - Rayonier targets a net debt to Adjusted EBITDA ratio of ≤3.0x[88, 97] - Rayonier's pro forma net debt to 2025E Adjusted EBITDA is 0.6x[88, 95]

Rayonier (RYN) 2025 Conference Summary Company Overview - Rayonier is one of three publicly traded timber REITs, positioning itself as a pure play timber REIT without exposure to downstream wood products manufacturing [4][3] - The company owns or leases approximately 2,500,000 acres of timberland, generating a sustainable yield of about 10,000,000 tons annually [4][5] - A recent agreement to sell its New Zealand business will reduce acreage by about 400,000 acres and sustainable yield by approximately 2,500,000 tons [5][4] Financial Performance - In 2024, approximately 70% of adjusted EBITDA came from timber segments, with the remaining 30% from real estate [5][6] - The company has seen significant pricing dislocations in timber REITs, with Rayonier trading at over a 30% discount to estimated net asset value [2][2] Market Trends and Opportunities - The energy transition and the need for renewable power are expected to drive increased demand for land and timber [6][7] - The U.S. housing market is significantly underbuilt, with estimates of 3,000,000 to 6,000,000 units of underbuilt supply, suggesting a constructive long-term outlook for housing starts [8][7] - Rayonier is evolving into a land resources company, focusing on maximizing the value of its portfolio through alternative land uses and real estate development [9][10] Land Use Optimization - Transitioning land use can significantly increase value; for example, converting timberland into carbon capture and storage leases could increase value by up to 5x, while solar leases could increase it by up to 10x, and improved development use could increase it by up to 15x [9][10] - Rayonier aims to execute the highest value end use for every acre, whether for timber production, land-based solutions, or real estate [10][11] Competitive Advantages - Rayonier has a best-in-class timberland portfolio located in attractive markets, particularly in the U.S. South [11][12] - The company has a differentiated real estate platform with a strong track record of optimizing high and better use (HBU) values [11][12] Real Estate Development - The company has seen significant growth in HBU values, with average prices per acre increasing from about $2,800 to $4,500 from 2015-2017 to 2021-2024 [20][19] - Rayonier's development pipeline includes 120,000 acres in Northeast Florida and Southeast Georgia, focusing on areas with strong market demand [21][21] Land-Based Solutions - The demand for carbon capture and storage (CCS) is projected to grow significantly, with U.S. demand expected to increase from 25 million tons to over 300 million tons in the next decade [30][29] - Rayonier has expanded its solar development options from 7,000 acres in 2021 to 39,000 acres by the end of 2024, indicating strong growth potential in this area [28][27] Asset Disposition Strategy - Rayonier announced a $1,000,000,000 asset disposition target, with total announced divestitures reaching $1,450,000,000, exceeding the original target [34][42] - The company plans to use proceeds from the New Zealand sale for share buybacks, which are seen as a compelling opportunity given the stock's discount to private market value [44][43] Environmental and Risk Management - Rayonier manages risks associated with natural disasters through geographic dispersion of its assets, which minimizes the impact of events like hurricanes and forest fires [55][54] - The company has experienced minor impacts from past hurricanes, with salvage activities expected to normalize markets in the long term [57][58] Tariffs and Market Dynamics - Anticipated increases in duties on Canadian lumber production are expected to shift production to the U.S. South, potentially improving pricing power for sawtimber and pulp [60][61]

Company Overview - Rayonier shares have increased by approximately 0.8% since the last earnings report, underperforming the S&P 500 [1] - Recent estimates for Rayonier have trended downward, with the consensus estimate shifting by -80% [2] Performance Metrics - Rayonier has a poor Growth Score of F and a similar score for momentum, with a value grade of D, placing it in the bottom 40% for this investment strategy [3] - The overall VGM Score for Rayonier is F, indicating a weak performance across multiple investment strategies [3] Outlook - The downward trend in estimates suggests a negative outlook for Rayonier, currently holding a Zacks Rank 3 (Hold), indicating an expectation of in-line returns in the coming months [4] Industry Comparison - Rayonier is part of the Zacks Building Products - Wood industry, where Weyerhaeuser, a competitor, has gained 0.9% over the past month [5] - Weyerhaeuser reported revenues of $1.76 billion for the last quarter, reflecting a year-over-year decline of -1.8% [5] - Weyerhaeuser's expected earnings for the current quarter are $0.19 per share, representing a year-over-year decrease of -9.5% [6]

Core Viewpoint - The research service "Asia Value & Moat Stocks" targets value investors looking for Asia-listed stocks that exhibit a significant disparity between market price and intrinsic value, focusing on deep value balance sheet bargains and wide moat stocks [1] Group 1: Investment Focus - The service emphasizes deep value balance sheet bargains, which include net cash stocks, net-nets, low price-to-book (P/B) stocks, and sum-of-the-parts discounts [1] - It also highlights wide moat stocks, which are characterized by strong earnings power at a discount, including high-quality businesses and hidden champions [1] Group 2: Market Emphasis - The primary focus of the investment ideas is on the Hong Kong market, providing a range of watch lists with monthly updates for investors [1]

Financial Performance - Rayonier Inc. reported sales of $82,922 thousand for the three months ended March 31, 2025, a decrease of 27.1% compared to $113,704 thousand in the same period of 2024 [18]. - The operating income for the first quarter of 2025 was $59 thousand, significantly down from $8,632 thousand in Q1 2024 [18]. - The net loss attributable to Rayonier Inc. was $3,424 thousand for Q1 2025, compared to a net income of $1,357 thousand in Q1 2024, marking a shift in performance [18]. - Rayonier Inc. reported a comprehensive loss of $7,300 thousand for Q1 2025, compared to a comprehensive loss of $1,153 thousand in Q1 2024 [18]. - Rayonier Inc. reported a basic loss per share of $0.02 for Q1 2025, compared to earnings of $0.01 per share in Q1 2024 [18]. - For the three months ended March 31, 2025, Rayonier reported a net loss of $3,085,000 compared to a net income of $2,306,000 for the same period in 2024 [29]. - Cash provided by operating activities was $27,699,000 for Q1 2025, down from $52,298,000 in Q1 2024, reflecting a decline of about 47% [29]. - Rayonier's comprehensive loss attributable to unitholders was $7,398,000 in Q1 2025, compared to a comprehensive loss of $1,170,000 in Q1 2024 [35]. - The company reported a basic loss per unit attributable to continuing operations of $0.04 for Q1 2025, compared to a loss of $0.03 for Q1 2024 [35]. - The company reported a loss from continuing operations before income taxes of $5,501 for the three months ended March 31, 2025 [84]. Assets and Liabilities - Total current assets increased to $767,388 thousand as of March 31, 2025, from $436,893 thousand at the end of 2024, primarily due to an increase in current assets of discontinued operations [20]. - Total assets decreased to $3,351,353 thousand as of March 31, 2025, down from $3,474,419 thousand at December 31, 2024 [20]. - The company’s retained earnings decreased to $204,180 thousand as of March 31, 2025, from $257,254 thousand at the end of 2024 [20]. - The balance of cash and cash equivalents decreased to $216,242 thousand as of March 31, 2025, from $303,065 thousand as of December 31, 2024, a decline of 28.7% [37]. - Total liabilities of the New Zealand operations increased to $227,991 thousand as of March 31, 2025, from $218,176 thousand as of December 31, 2024, a rise of 4.0% [66]. - Current liabilities rose to $49.33 million in Q1 2025, compared to $47.34 million in Q4 2024, reflecting a 4.2% increase [66]. Capital Expenditures and Investments - Rayonier's capital expenditures from continuing operations were $12,023,000 in Q1 2025, down from $15,260,000 in Q1 2024, indicating a reduction of approximately 21% [29]. - Capital expenditures for the three months ended March 31, 2025, were $12,023, down from $15,260 in the same period of 2024, representing a decline of approximately 21.5% [78]. - Capital expenditures for New Zealand operations decreased to $2.65 million in Q1 2025, down 26.4% from $3.61 million in Q1 2024 [66]. Dividends and Shareholder Returns - Rayonier Inc. issued a special dividend of $1.80 per common share, resulting in the issuance of 7,560,983 common shares [22][23]. - Dividends paid on common shares increased to $110,442,000 in Q1 2025 from $72,258,000 in Q1 2024, marking an increase of approximately 53% [29]. - Distributions on units for the three months ended March 31, 2025, totaled $111,905 thousand, compared to $73,343 thousand in 2024, an increase of 52.6% [43]. Foreign Operations - Rayonier's New Zealand operations generated sales of $56,760 thousand in Q1 2025, up from $54,392 thousand in Q1 2024, representing a 4.5% increase [63]. - Operating income from discontinued operations in New Zealand was $4,549 thousand in Q1 2025, down from $7,578 thousand in Q1 2024, a decline of 40.4% [63]. - The company reported net income from discontinued operations attributable to Rayonier Inc. of $2,094 thousand in Q1 2025, compared to $5,792 thousand in Q1 2024, a decrease of 63.8% [63]. - Rayonier entered into a purchase and sale agreement to sell its 77% interest in New Zealand operations for $710 million, expected to close in 2025 [61]. Debt and Financing - The company’s long-term debt remained stable at $1,044,635 thousand as of March 31, 2025, compared to $1,044,410 thousand at the end of 2024 [20]. - Total principal debt as of March 31, 2025, was $1,050,000,000, with total long-term debt amounting to $1,044,635,000 after accounting for unamortized discounts and deferred financing costs [105]. - Rayonier Inc. had available borrowings of $293.0 million under its Revolving Credit Facility as of March 31, 2025 [108]. - The company maintained a covenant EBITDA to consolidated interest expense ratio of 7.2 to 1, significantly exceeding the requirement of 2.5 to 1 [111]. - The debt to covenant net worth plus covenant debt ratio was 36%, well below the maximum requirement of 65% [111]. Other Financial Metrics - Adjusted EBITDA for the total company was $27,061 thousand for Q1 2025, reflecting the performance across all segments [74]. - Adjusted EBITDA for the three months ended March 31, 2025, was $44,648, compared to $44,801 in the same period of 2024, indicating a slight decrease of 0.3% [84]. - The net income for the three months ended March 31, 2025, was $2,306, compared to a loss of $4,510 in the same period of 2024 [84]. - The company reported a foreign currency translation adjustment of $3,633 thousand for the three months ended March 31, 2025 [39]. - The company’s effective tax rate for the three months ended March 31, 2025, was -5.5%, significantly lower than the 18.0% rate for the same period in 2024 [151].

Core Viewpoint - Rayonier, Inc. reported a pro-forma net loss of 2 cents per share for Q1 2025, missing the Zacks Consensus Estimate of 8 cents and down from a net income of 1 cent per share in the prior year [1] Financial Performance - Total revenues for Q1 2025 were $82.9 million, falling short of the Zacks Consensus Estimate of $157 million and representing a 27.1% decrease year-over-year [2] - Adjusted EBITDA for the quarter was $27.1 million, down from $44.6 million in the prior-year period [2] Segment Performance - Southern Timber segment reported pro-forma operating income of $10.1 million, a decline of 56.1% from the prior-year quarter due to lower net stumpage realizations and higher costs [4] - Pacific Northwest Timber segment showed pro-forma operating income of $0.7 million, recovering from a loss of $4.4 million a year ago, attributed to lower costs and higher net stumpage realizations [5] - Real Estate segment incurred a pro-forma operating loss of $1 million compared to a $0.1 million loss in the previous year, driven by fewer acres sold [6] Balance Sheet - Rayonier ended Q1 2025 with $216.2 million in cash and cash equivalents, down from $303.1 million as of December 31, 2024 [7] Future Outlook - For Q2 2025, management anticipates net income attributable to Rayonier to be between $3 million and $8 million, with pro forma EPS expected to range from 1 cent to 4 cents [8] - Full-year net income guidance has been revised to $424 million to $458 million, significantly up from the previous guidance of $79 million to $100 million, reflecting anticipated gains from the sale of the New Zealand joint venture [9] - Adjusted EBITDA for the full year is projected to be between $215 million and $235 million, down from prior guidance of $270 million to $300 million [10]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $27 million for the first quarter, a 39% decline compared to the prior year quarter, primarily due to lower results in the Southern Timber and Real Estate segments [9][10] - The net loss attributable to the company was $3 million, or $0.02 per share, reflecting a challenging start to the year [15][16] - Cash available for distribution (CAD) decreased to $20 million from $31 million in the prior year period, driven by lower adjusted EBITDA [16] Business Line Data and Key Metrics Changes - In the Southern Timber segment, adjusted EBITDA was $27 million, down from the prior year, with harvest volumes declining by 21% and weighted average net stumpage realizations down 19% [10][19] - The Pacific Northwest Timber segment saw adjusted EBITDA increase to $6 million, despite an 18% decrease in harvest volumes, due to lower costs and higher net stumpage realizations [11][24] - The Real Estate segment generated adjusted EBITDA of $2 million, down from $5 million in the prior year, driven by fewer acres sold [12][26] Market Data and Key Metrics Changes - The Southern Timber segment faced challenging market conditions, with lower demand from mills and a shift in geographic mix to lower-priced regions [10][20] - In the Pacific Northwest, average delivered domestic sawlog pricing increased by 7% to $91 per ton, reflecting stronger demand from sawmills [24] - The company anticipates improved pricing in the second half of the year as salvage efforts moderate and operating conditions normalize [11][35] Company Strategy and Development Direction - The company is focused on enhancing shareholder value through the sale of its New Zealand business for $710 million, which will allow for capital concentration in core markets with favorable long-term growth prospects [5][8] - The proceeds from the New Zealand sale are expected to be used for debt reduction and shareholder returns through share repurchases and a special dividend [8][9] - The company aims to streamline its portfolio and improve financial reporting, positioning itself for future growth opportunities in the U.S. [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of the year, expecting improvements in timber pricing and demand as the impact of salvage volume subsides [35][36] - The company remains focused on long-term value creation despite current economic uncertainties, with a positive outlook for housing demand and timber pricing driven by an underbuilt housing market [70][71] - Management highlighted the importance of navigating market headwinds while advancing strategic initiatives to build long-term shareholder value [34][37] Other Important Information - The company has completed or announced pending dispositions totaling $1.45 billion, significantly exceeding its original target of $1 billion [9] - The company plans to provide high-level quarterly guidance for adjusted EBITDA and EPS moving forward to manage expectations around variability in real estate segment results [33] Q&A Session Summary Question: How significant are labor constraints in logging and hauling today? - Management acknowledged that labor is a constant concern but noted improvements in productivity and long-term relationships with loggers could provide a competitive advantage if demand increases [40][42] Question: Can you provide more color around the attractiveness of options for the New Zealand proceeds? - Management indicated that share repurchases are viewed as a compelling use of capital, with significant remaining authorization for buybacks post-New Zealand transaction [43][44] Question: What is the outlook for lumber prices in response to higher Canadian import duties? - Management noted positive sentiment among sawmill customers, with some taking steps to secure more volume, but emphasized that current market uncertainty tempers immediate actions [50][52] Question: Can you elaborate on the negative mix shift within Southern Timber? - Management explained that the negative mix shift was due to a higher percentage of lower-priced Gulf Region timber and a shift towards pulpwood, impacting overall pricing [56][59] Question: Any updates on natural climate solutions like solar or carbon capture? - Management reported ongoing optimism regarding carbon capture storage opportunities and continued interest in solar leasing, with significant potential for future revenue streams [75][78]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $27 million for the first quarter, a 39% decline compared to the prior year quarter, primarily due to lower results in the Southern Timber and Real Estate segments [8][9][14] - The net loss attributable to Rayonier was $3 million, or $0.02 per share, reflecting a challenging start to the year [13][14] - Cash available for distribution (CAD) decreased to $20 million from $31 million in the prior year period, driven by lower adjusted EBITDA [14][17] Business Line Data and Key Metrics Changes - In the Southern Timber segment, adjusted EBITDA was $27 million, down 21% in harvest volumes and 19% in weighted average net stumpage realizations [9][18] - The Pacific Northwest Timber segment saw adjusted EBITDA increase to $6 million, despite an 18% decrease in harvest volumes, due to lower costs and higher net stumpage realizations [10][22] - The Real Estate segment generated adjusted EBITDA of $2 million, down from $5 million in the prior year, attributed to fewer acres sold [11][26] Market Data and Key Metrics Changes - The Southern Timber segment faced challenging market conditions, with a 21% decline in harvest volumes and a 19% decrease in weighted average stumpage prices due to softer demand and increased salvage volume [9][19] - In the Pacific Northwest, average delivered domestic sawlog pricing increased by 7% to $91 per ton, driven by stronger demand from sawmills [22] - The overall market for timber remains impacted by economic uncertainty, with expectations for improved pricing in the second half of the year as salvage volume declines [20][34] Company Strategy and Development Direction - The company is focused on enhancing shareholder value through the sale of its New Zealand business for $710 million, which will allow for capital concentration in core U.S. markets [4][5] - Rayonier plans to use at least 50% of the sale proceeds to reduce leverage and return capital to shareholders through share repurchases and a special dividend [6][7] - The company aims to streamline its portfolio and capitalize on growth opportunities in the U.S. timber market while reducing exposure to log export markets [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for improved market conditions in the second half of the year as salvage efforts moderate and operating conditions normalize [10][34] - The company anticipates full-year adjusted EBITDA guidance of $215 million to $235 million, excluding New Zealand operations, reflecting a generally stable outlook despite a slow start [12][29] - Management highlighted the long-term potential for growth in housing starts and lumber demand, despite current economic uncertainties [70][71] Other Important Information - The company has completed or announced asset dispositions totaling $1.45 billion, exceeding its original target of $1 billion [8] - The weighted average cost of debt was approximately 2.4%, with no debt maturities until 2026, positioning the company well for future capital allocation [17] Q&A Session Summary Question: How significant are labor constraints in logging and hauling today? - Management acknowledged that labor is a constant concern but noted improvements in productivity and sufficient labor availability to meet current demand [40][42] Question: Can you provide more color around the attractiveness of options for the New Zealand proceeds? - Management indicated that share repurchases remain a compelling use of capital, with $280 million remaining on the current repurchase authorization [43][44] Question: What is the outlook for lumber prices in response to higher Canadian import duties? - Management reported positive sentiment among sawmill customers, with some mills looking to secure more volume and potential price increases observed in recent negotiations [50][54] Question: Can you provide an update on natural climate solutions? - Management confirmed ongoing efforts in carbon capture and solar initiatives, with optimism about future developments in these areas [76][80]

Q1 2025 Financial Supplement April 2025 Safe Harbor Statement Forward-Looking Statements - Certain statements in this presentation regarding anticipated financial outcomes including Rayonier's earnings guidance, if any, business and market conditions, outlook, expected dividend rate, Rayonier's business strategies, expected harvest schedules, timberland acquisitions and dispositions, the anticipated benefits of Rayonier's business strategies, including the proposed sale of the entities holding Rayonier's in ...

Group 1: Earnings Performance - Rayonier reported a quarterly loss of $0.02 per share, missing the Zacks Consensus Estimate of $0.08, compared to earnings of $0.05 per share a year ago, representing an earnings surprise of -125% [1] - The company posted revenues of $82.9 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 47.20%, and down from year-ago revenues of $168.1 million [2] - Over the last four quarters, Rayonier has surpassed consensus EPS estimates just once and topped consensus revenue estimates only once [2] Group 2: Stock Performance and Outlook - Rayonier shares have lost about 6.1% since the beginning of the year, while the S&P 500 has declined by -5.5% [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] - The current consensus EPS estimate for the coming quarter is $0.13 on $165 million in revenues, and $0.55 on $677.23 million in revenues for the current fiscal year [7] Group 3: Industry Context - The Building Products - Wood industry, to which Rayonier belongs, is currently in the bottom 32% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that tracking these revisions can be beneficial for investors [5] - The estimate revisions trend for Rayonier is currently favorable, resulting in a Zacks Rank 1 (Strong Buy) for the stock, indicating expectations of outperforming the market in the near future [6]