Financial Highlights - Total Adjusted EBITDDA reached a record of $195 million, driven by strong lumber markets[4] - The company's Cash Available for Distribution (CAD) for the trailing twelve months ended March 31, 2021, was $4131 million[7] - The company has a strong liquidity position with $761 million available[13] Segment Performance - Timberlands Adjusted EBITDDA was $679 million, with 13 million tons harvested[12] - Wood Products Adjusted EBITDDA was $1255 million, with 258 MMBF of lumber shipped[12] - Real Estate Adjusted EBITDDA was $166 million, including the sale of 7K rural acres, 51 residential lots, and 11 commercial acres[12] Timberlands - Northern Timberlands Adjusted EBITDDA was $542 million, with sawlog harvest volume of 427 thousand tons and a price of $178 per ton[26, 29] - Southern Timberlands Adjusted EBITDDA was $137 million, with sawlog harvest volume of 508 thousand tons and a price of $44 per ton[34, 37] Wood Products - Wood Products Adjusted EBITDDA was $1255 million, with lumber shipments of 258 MMBF and an average lumber price of $890 per MBF[12, 44] - The average lumber price realizations increased 41% to $890 per MBF in Q1 2021[42] Real Estate - Real Estate Adjusted EBITDDA was $166 million, with 7,083 acres of rural land sold at an average price of $1,415 per acre[12, 53] - 51 residential lots were sold at an average price of $99,000 per lot[53] Outlook - The company anticipates Q2 2021 Total Adjusted EBITDDA will be higher than Q1 2021, potentially setting a new quarterly record[68]

Financial Data and Key Metrics Changes - Total adjusted EBITDA for the first quarter of 2025 was $63 million, an increase of $10 million from $53 million in the fourth quarter of 2024, reflecting improved performance across all business segments [22][3][21] - The Timberlands segment's adjusted EBITDA rose from $34 million in Q4 to $42 million in Q1, driven by higher harvest volumes and increased sawlog prices [23][22] - Wood Products adjusted EBITDA increased from $9 million in Q4 to $12 million in Q1, attributed to slightly higher average lumber prices [25][22] Business Line Data and Key Metrics Changes - Timberlands harvested 1.968 million tons in Q1, exceeding plans, with Idaho sawlog prices increasing by 9% per ton [23][24] - Wood Products shipped 290 million board feet of lumber in Q1, surpassing guidance by 10 million board feet, primarily due to the Waldo sawmill's performance [10][26] - Real Estate segment generated adjusted EBITDA of $23 million in Q1, up from $19 million in Q4, with over 7,000 acres sold at an average price of $3,300 per acre [27][22] Market Data and Key Metrics Changes - Lumber markets faced tepid demand, with Southern yellow pine prices remaining firm while SPF prices increased due to tariff discussions [5][4] - U.S. housing starts remained stable at nearly 1.4 million units, with single-family homebuilding starts resilient near 1 million units [16][17] - The multifamily homebuilding segment faced challenges due to restrictive financing and oversupply [18] Company Strategy and Development Direction - The company is focused on natural climate solutions, expanding solar option contracts and exploring lithium development opportunities [12][14] - A balanced capital allocation strategy is maintained, with share repurchases prioritized over timberland acquisitions due to stock trading at a discount to net asset value [15][14] - The company anticipates a favorable long-term outlook despite near-term volatility, with expectations for lumber demand to improve as housing affordability constraints ease [20][21] Management's Comments on Operating Environment and Future Outlook - Management noted that while the near-term environment is uncertain, long-term fundamentals in the industry remain strong, driven by demographic shifts and housing undersupply [20][21] - The company expects second-quarter total adjusted EBITDA to be lower than Q1 due to seasonally lower harvest volumes and higher forest management costs [33][32] - Management expressed confidence in the Waldo sawmill's contribution to future EBITDA growth, despite current pricing challenges [57][56] Other Important Information - The company has $447 million in liquidity, including $147 million in cash, and plans to refinance $100 million of maturing debt [29][30] - Capital expenditures in Q1 totaled $23 million, with a full-year CapEx forecast of $60 million to $65 million [30][29] Q&A Session Summary Question: Can you talk about demand trends in the new IT channel and R&R channel? - Management described the current lumber market as decent, with the South performing better than the North, and noted that prices are higher in the South [36][38] Question: How would you characterize channel inventories? - Management indicated that the industry operates at relatively low inventory levels, with some northern species experiencing inventory hangover from tariff concerns [41][42] Question: What impact did the recent tariff announcements have on order books? - Management stated that there was no significant change in end consumer demand, although some advanced ordering may have occurred [48][50] Question: What is the expected impact of higher Canadian lumber duties? - Management anticipates that some Canadian competitors may absorb costs, while smaller operators may face challenges, potentially leading to mill closures [51][52] Question: Can you provide insights on cedar log prices? - Management noted that cedar prices are driven by regional demand and that customers have been short on cedar, leading to price increases [93] Question: What is the timeline for solar and lithium opportunities? - Management expects that one or two solar deals may close next year, with option periods typically lasting three to five years [83][84] Question: How does the company reconcile increased production with tepid demand? - Management clarified that increased production does not necessarily indicate falling demand, as the overall market is expected to grow modestly [110]

Financial Data and Key Metrics Changes - Total adjusted EBITDA increased by $10 million, rising from $53 million in the fourth quarter to $63 million in the first quarter [24][5][6] - The Timberlands segment's adjusted EBITDA increased from $34 million in the fourth quarter to $42 million in the first quarter [25][24] - Wood Products adjusted EBITDA rose from $9 million in the fourth quarter to $12 million in the first quarter [27][24] Business Line Data and Key Metrics Changes - Timberlands harvested 1.968 million tons in the first quarter, exceeding the Q1 plan by almost 170,000 tons [26][25] - Wood Products shipped 290 million board feet of lumber, which was 10 million board feet over the upper range of Q1 guidance [12][28] - Real Estate segment generated adjusted EBITDA of $23 million in the first quarter compared to $19 million in the fourth quarter [28][24] Market Data and Key Metrics Changes - The Random Lengths Western SPF composite price rose by $60 during the quarter, while Southern yellow pine markets remained relatively firm [6][7] - U.S. housing starts averaged nearly 1.4 million units, with single-family homebuilding starts near 1 million units [20][19] - Existing home inventory has risen, but sales remain on pace with last year's low levels due to elevated interest rates [21][20] Company Strategy and Development Direction - The company is focused on natural climate solutions, including solar and lithium development, with an estimated net present value of around $475 million for solar options [14][15] - The capital allocation strategy remains balanced, with share repurchases prioritized over timberland acquisitions due to the stock trading at a significant discount to net asset value [17][18] - The company anticipates a favorable long-term outlook despite near-term volatility, driven by structural tailwinds in the housing market [22][23] Management's Comments on Operating Environment and Future Outlook - Management noted that the current lumber market is characterized by tepid demand, but expects price risks to be to the upside in the latter half of the year [41][40] - The company plans to harvest between 1.6 million and 1.7 million tons in the second quarter, with expectations for stable Southern sawlog pricing [32][33] - Management expressed confidence in the long-term fundamentals of the industry, despite current economic uncertainties [22][23] Other Important Information - The company has $447 million in liquidity, including $147 million in cash, and plans to refinance $100 million of debt maturing in August [30][24] - Capital expenditures totaled $23 million in the first quarter, with an anticipated full-year spend of $60 million to $65 million [31][24] Q&A Session Summary Question: Can you talk about demand trends in the new IT channel and the R&R channel? - Management described the current market environment for lumber as decent, with the South on firmer footing than the North, and noted that prices are higher in the South [37][38] Question: How would you characterize channel inventories? - Management indicated that the industry is operating at relatively low inventory levels, with some northern species experiencing a slight inventory hangover [42][43] Question: What impact did the recent tariffs have on order books? - Management stated that there was no significant change in end consumer demand, although some advanced ordering may have occurred [51][52] Question: What do you expect regarding Canadian lumber volumes with increased duties? - Management expects a mix of outcomes, with larger competitors potentially absorbing costs while smaller operators may face challenges [55][56] Question: Can you discuss the performance of the Waldo mill? - Management noted that the mill is running well, but pricing has not yet reached desired levels, with expectations for improvement as the year progresses [60][62] Question: What is the outlook for larger real estate transactions? - Management indicated that while smaller transactions are strong, larger transactions may see increased activity as clarity on NCS opportunities improves [66][68] Question: What is the timeline for solar and lithium opportunities? - Management anticipates that one or two deals may close next year, with option periods ranging from three to five years [85][86] Question: Are homebuilders switching to yellow pine due to potential duties? - Management confirmed that substitution has been occurring and is expected to continue as Southern yellow pine production grows [90][91] Question: What is the impact of cedar log prices in Idaho? - Management noted that cedar prices are driven by regional demand and customers being short on cedar [93][94] Question: How will Section 232 tariffs impact timberland valuations? - Management stated that the impact is uncertain and depends on the size and duration of the tariffs [95][94]