Rayonier Inc. recently announced completed and pending timberland dispositions totaling ~200,000 acres for an aggregate purchase price of $495 million (~$2,475/acre) as part of its previously announced asset disposition and capital structure realignment plan.
The dispositions consist of approximately 91,000 acres in Southeast Oklahoma and 109,000 acres on the Olympic Peninsula in Northwest Washington. The properties were sold through four separate transactions to high-caliber institutional investors. Three of these transactions (comprising ~75% of total proceeds) have already closed during the fourth quarter, and the remaining transaction is expected to close before the end of the year.
“I’m very pleased with how our team is executing our strategy to create value for shareholders as well as right-size our leverage to the current market environment,” said Mark McHugh, President and Chief Executive Officer. “Since introducing our Initiatives to Enhance Shareholder Value last November, we have now completed or announced pending timberland dispositions totaling $737 million—roughly three-quarters of our original $1 billion target. Consistent with our goals when we announced the plan, these asset sales have allowed us to capitalize on the public-private disconnect in timberland values, reduce the Company’s leverage, return capital to shareholders, and improve the Company’s competitive positioning and long-term growth profile.”
Rayonier is a leading timberland real estate investment trust with assets located in some of the most productive softwood timber growing regions in the United States and New Zealand.