Rayonier to Sell its Stake in New Zealand JV to TRG for $710M

Core Insights - Rayonier Inc. has agreed to sell its 77% stake in a New Zealand joint venture to Ents LP for $710 million, with the transaction expected to close in 2025, pending regulatory approvals [1][2] - The sale will reduce Rayonier's exposure to log export markets and allow the company to focus on core U.S. markets with better long-term growth prospects [2][3] - The transaction is expected to be modestly accretive to pro forma CAD per share and significantly reduce pro forma Net Debt to Adjusted EBITDA to nearly 0.3X [3][4] Transaction Details - The sales price implies an enterprise value of $922 million for the New Zealand joint venture, which manages approximately 287,000 productive acres of timberlands as of December 31, 2024 [3] - Proceeds from the transaction will be used to reduce leverage, return capital to shareholders, and fund other capital allocation priorities, including a special dividend projected between $1.00 to $1.40 per share for 2025 [4][5] Management Commentary - Rayonier's management has successfully completed or announced pending dispositions totaling $1.45 billion, exceeding the original target of $1 billion, which has allowed for significant leverage reduction and enhanced shareholder value [5][6] - The company aims to capitalize on the disconnect between public and private timberland values while reducing leverage in a high-interest rate environment [6]