Profile: Rayonier Inc (RYN)
21 May 2019
Rayonier Inc. (Rayonier), incorporated on December 3, 1993, is a timberland real estate investment trust (REIT) with assets located in some of the timber growing regions in the United States and New Zealand. The Company operates through five segments: Southern Timber, Pacific Northwest Timber, New Zealand Timber, Real Estate and Trading. The Southern Timber, Pacific Northwest Timber and New Zealand Timber segments reflect all activities related to the harvesting of timber and other activities, such as recreational leases, within each respective geography. Its New Zealand Timber segment also reflects land sales that occur within its New Zealand portfolio. Its Real Estate segment reflects the United States land sales. Its Trading segment reflects the log trading activities that support its New Zealand operations. The Company owned, leased or managed approximately 2.7 million acres of timberlands located in the United States South, the United States Pacific Northwest and New Zealand, as of December 31, 2016. In addition, the Company is engaged in the trading of logs from New Zealand and Australia to Pacific Rim markets, primarily to support its New Zealand export operations.
The Company's Southern timberlands acreage consisted of approximately 1.85 million acres, including approximately 238,000 acres of leased lands, located in Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, Oklahoma, Tennessee and Texas, as of December 31, 2016. Approximately two-thirds of this land supported managed plantations of primarily loblolly and slash pine, as of December 31, 2016. The other one-third of this land was too wet to support pine plantations, but supported productive natural stands, which consisted a range of hardwood species, as of December 31, 2016. In the Southern region, rotation ages ranged from 21 to 28 years for pine plantations and from 35 to 60 years for natural stands, as of December 31, 2016. The Company's consumers for timber include pulp, paper, wood products and biomass facilities.
Pacific Northwest Timber
The Company's Pacific Northwest timberlands consisted of approximately 378,000 acres located in Oregon and Washington, of which approximately 294,000 acres were designated as productive acres, as of December 31, 2016. These timberlands primarily include second and third rotation western hemlock and Douglas-fir, as well as a small amount of other softwood species, such as western red cedar. A small percentage also consists of natural hardwood stands of primarily red alder. In the Pacific Northwest, rotation ages ranged from 35 to 50 years, as of December 31, 2016. The Company's product mix in the Pacific Northwest is weighted to sawtimber, which is sold to domestic wood products facilities, as well as into exports markets primarily serving the Pacific Rim.
New Zealand Timber
The Company's New Zealand timberlands consisted of approximately 433,000 acres, including approximately 254,000 acres of leased lands, of which approximately 299,000 acres, including approximately 164,000 acres of leased lands) were designated as productive or plantation acres, as of December 31, 2016. The Company owns interest in Matariki Forestry Group, a joint venture (New Zealand JV). Rayonier's subsidiary, Rayonier New Zealand Limited (RNZ) serves as the manager of the New Zealand JV forests. The Company's New Zealand timberlands serve a domestic sawmilling market and also export logs to Pacific Rim markets.
The Company's Real Estate segment includes the United States land sales, including higher and better use (HBU) and non-HBU. The Company's Real Estate sales include over five categories: Improved Development, Unimproved Development, Rural, Non-Strategic/Timberlands and Large Dispositions. The Improved Development category consists of properties sold for development for which Rayonier, through a taxable REIT subsidiary, has invested in site improvements, such as infrastructure, roadways, utilities, amenities and/or other improvements. The Unimproved Development category consists of properties sold for development, which Rayonier has not invested in site improvements, such as infrastructure. The Rural category consists of properties sold in rural markets to buyers interested in the property for rural residential or recreational use. The Non-Strategic/Timberland category includes sales of non-core timberlands, sales of core timberlands, and sales of properties to conservation interests that preserve the land for habitat, public recreation, natural growth, buffer zones or other environmental purposes. The Large Dispositions category included sales of timberland that exceed over $20 million in size and do not have any identified HBU premium relative to timberland value, as of December 31, 2016.
The Company's trading activities are categorized as either managed export services or procured logs. For managed export services, the New Zealand JV does not take title to the log cargo but arranges sales, shipping and export documentation services for other forest owners for an agreed commission. For procured logs, the New Zealand JV buys logs directly from other forest owners at New Zealand ports and exports them in its own name. The Company's trading volume was approximately 1.7 million cubic meters of logs, as of December 31, 2016.
The Company competes with Weyerhaeuser Company, CatchMark Timber Trust, Hancock Timber Resource Group, Resource Management Service, Forest Investment Associates, Campbell Global, Green Diamond Resource Company, Port Blakely Tree Farms, Pope Resources, the State of Washington Department of Natural Resources, the Bureau of Indian Affairs, Hancock Natural Resources Group, Kaingaroa Timberlands and Ernslaw One.
1 Rayonier Way
YULEE FL 32097-0002