Rayonier Completes Timberland Transactions Across Three States

On Wednesday, Rayonier Inc. announced the completion of two strategic timberland transactions with Resource Management Service, LLC, advancing the company’s portfolio optimization strategy.

Rayonier sold approximately 36,000 acres of timberlands in southwest Washington for $145 million and concurrently acquired approximately 57,000 acres in Alabama and Texas for $146 million. The final price of each transaction remains subject to customary closing costs, adjustments, and prorations.

The transactions were structured as a tax-efficient, like-kind exchange and are expected to increase cash flow on a timber-only basis. Rayonier also sees potential upside from higher-and-better-use real estate sales and land-based solutions.

Rayonier estimates that 69% of the acquired timberlands are plantable, with an average expressed site index of 75 feet. The combined transactions are expected to generate approximately $3 million in incremental adjusted EBITDA annually from timber operations over the next 10 years (i.e., excluding potential contributions from real estate sales and land-based solutions).

Rayonier President and CEO Mark McHugh said:

“These transactions reflect our continued focus on portfolio optimization, as we look to concentrate our capital in markets with strong cash flow attributes and favorable long-term growth prospects. We were pleased to collaborate with RMS on this negotiated, off-market deal that aligned well with the strategic priorities of each organization.”