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]