Rayonier Inc. has completed two strategic timberland transactions with Resource Management Service, LLC, selling about 36,000 acres in southwest Washington for $145 million and concurrently acquiring about 57,000 acres in Alabama and Texas for $146 million. The deals were structured as a tax-efficient, like-kind exchange and are expected to be accretive to cash flow on a timber-only basis, with further upside potential from higher-and-better-use real estate sales and land-based solutions. The company estimates the transactions will generate incremental Adjusted EBITDA of approximately $3 million annually from timber operations over the next ten years, excluding potential contributions from HBU real estate sales and land-based solutions. The acquired properties are highly productive, with an estimated 69% plantable and an average expressed site index of 75 feet, and are complementary to Rayonier's existing U.S. South footprint. President and CEO Mark McHugh said the off-market deal aligns with the company's focus on concentrating capital in markets with strong cash flow attributes and favorable long-term growth prospects.
Rayonier IncCompletes tax-efficient timberland swap expected to be accretive to cash flow and generate incremental EBITDA
Royal Bank of Canada