Q3 2024 Rayonier Inc Earnings Call Transcript
Key Points
- Rayonier Inc (RYN) announced timberland dispositions totaling 200,000 acres for $495 million, expected to generate a 9% accretion in CAD per share.
- The company has completed or announced pending timberland dispositions totaling $737 million, achieving roughly three-quarters of its $1 billion target.
- Rayonier Inc (RYN) expects a reduction in leverage to approximately 2.8 times net debt to pro forma adjusted EBITDA following the dispositions.
- The real estate segment showed strong performance with third-quarter adjusted EBITDA of $20 million, driven by higher average per acre prices.
- The company is advancing its land-based solutions business, with 76,000 acres under lease for carbon capture and storage and 40,000 acres under option for solar development by year-end.
- Third-quarter adjusted EBITDA decreased to $72 million from $79 million in the prior year, primarily due to lower contributions from the New Zealand timber segment.
- The New Zealand timber segment faced a $9 million decrease in adjusted EBITDA due to lower carbon credit sales and elevated shipping costs.
- Southern timber segment experienced a 13% decline in harvest volumes and a 3% decrease in weighted average net stumpage realizations.
- Pacific Northwest timber segment saw a 7% decrease in weighted average net stumpage realizations despite increased harvest volumes.
- The company revised its full-year adjusted EBITDA guidance to $275 million to $290 million, reflecting the impact of completed and pending dispositions.
Welcome and thank you for joining Rayonier's third-quarter 2024 conference call. (Operator Instructions) Today's conference is being recorded. If you have any objections, you may disconnect at this time.
Now, I will turn the meeting over to Mr. Collin Mings, Vice President, Capital Markets and Strategic Planning. You may go ahead.
Thank you and good morning. Welcome to Rayonier's investor teleconference, covering third quarter earnings. Our earnings statements and financial supplement were released yesterday afternoon and are available on our website at rayonier.com.
I would like to remind you that in these presentations, we include forward-looking statements made pursuant to the safe hard provisions of federal securities laws. Our earnings release and forms 10-K and 10-Q filed with the SEC list, some of the factors that may cause actual results to differ materially from the forward-looking statements we may make.
They are also referenced on page 2,
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