Core Insights - Longleaf Partners Fund reported a return of -0.33% in Q3 2025, underperforming the S&P 500's 8.12% and the Russell 1000 Value's 5.33% [1] - The fund focuses on investments in real assets and brands that generate growing free cash flow (FCF) per share, with expectations of an increase in FCF multiple from ~10x to the mid-teens [1] - The fund highlighted PotlatchDeltic Corporation as a key investment, which has a market capitalization of $3.27 billion and a one-month return of 5.57% [2] Investment Highlights - PotlatchDeltic Corporation is a Real Estate Investment Trust (REIT) owning nearly 2.1 million acres of timberlands, with shares gaining 0.50% over the last 52 weeks [2] - The fund expressed excitement over the merger of PotlatchDeltic Corporation and Rayonier, viewing it as a win/win scenario with real synergies that enhance the value per share of the combined entity [3] - Both PotlatchDeltic and Rayonier were acquired at large discounts, presenting multiple avenues for growth [3]

Core Insights - PotlatchDeltic Corp. is a real estate investment trust focused on timberlands, wood product manufacturing, and real estate development [1] Financial Performance - The company is set to report Q3 2025 earnings on November 3, with analysts expecting EPS of $0.23, an increase from $0.04 in the prior-year period [2] - Quarterly revenue is anticipated to reach $296.42 million, up from $255.13 million a year earlier [2] - For Q2 2025, PotlatchDeltic reported adjusted EPS of $0.09, below the consensus estimate of $0.15, while revenues of $274.99 million exceeded the consensus of $265.35 million [7] Historical Investment Performance - If an investor had purchased PotlatchDeltic stock 10 years ago at approximately $29.60 per share, a $10,000 investment would have grown to $14,368 based on stock price appreciation alone [3] - The company has paid about $26.22 in dividends per share over the last 10 years, resulting in $8,858 from dividends alone [4] - The total value of the investment after 10 years would be $23,226, representing a total return of 132.26%, which is significantly lower than the S&P 500 total return of 288.90% for the same period [5] Dividend Information - PotlatchDeltic's current dividend yield is 4.28% [4] Future Outlook - The company has a consensus rating of "Buy" with a price target of $49.25, indicating a potential upside of nearly 16% from the current stock price [7] - CEO Eric Cremers expressed confidence in the long-term fundamentals supporting demand for their products, despite challenges in the wood products segment due to soft demand [8]

Core Insights - Greif, Inc. has successfully completed the sale of its timberlands business to Molpus Woodlands Group for $462 million, which will aid in debt reduction and enhance capital efficiency [1][2][7] Group 1: Timberlands Sale - The sale involves approximately 173,000 acres of timberlands located in the Southeastern United States [2][7] - This divestiture is part of Greif's ongoing portfolio optimization strategy, allowing the company to concentrate on its core business and invest in higher-margin markets [2][4] Group 2: Portfolio Optimization - In September, Greif also sold its containerboard business to Packaging Corporation of America, which includes two mills with a production capacity of 800,000 tons [3] - The cash proceeds from both sales are expected to reduce Greif's leverage ratio to below 1.2X, strengthening its balance sheet and generating interest savings [5][7] Group 3: Strategic Goals - The timberlands sale aligns with Greif's "Build to Last" strategy, marking a significant step towards improved capital efficiency and accelerated growth [4] - The company aims to reduce recurring capital expenditures, thereby unlocking value-creation opportunities [4] Group 4: Stock Performance - Greif's stock has increased by 0.7% over the past year, contrasting with a 14.3% decline in the industry [6]

Core Viewpoint - Weyerhaeuser Company has announced an agreement to acquire approximately 117,000 acres of high-quality timberlands in North Carolina and Virginia for $375 million, enhancing its Southern Timberlands portfolio and expected to deliver immediate cash flows [1][2]. Acquisition Details - The acquisition includes mature, productive timberlands that will integrate well with existing operations in North Carolina and expand into southeastern Virginia markets [1][2]. - This transaction is part of a broader strategy, with Weyerhaeuser having acquired over $1.1 billion in timberlands since early 2022, aligning with its growth targets [2]. Financial Aspects - The cash for the acquisition will primarily come from divestitures of non-core timberlands, which are expected to be completed in a tax-efficient manner [2]. - Upon completion, Weyerhaeuser will manage approximately 744,000 acres in North Carolina and 150,000 acres in Virginia, along with three mills and two distribution centers [2]. Operational Insights - The acquired timberlands are located in strong markets, with 81% planted pine acreage and an expected average annual harvest of 7.4 tons per acre over the first five years [4]. - The anticipated average annual timber free cash flow yield from the acquisition is projected to be 5.1% over the same period [4]. Company Background - Weyerhaeuser is one of the largest private owners of timberlands, managing approximately 10.4 million acres in the U.S. and has been a leader in sustainable forestry for over a century [3]. - In 2024, the company reported $7.1 billion in net sales and employed around 9,400 people [3].