WILDLIGHT, Fla., December 19, 2022–(BUSINESS WIRE)–Rayonier Inc. (NYSE:RYN) accomplished its beforehand introduced acquisitions of high-quality business timberlands positioned in Texas, Georgia, Alabama, and Louisiana (the “Acquisitions”) from Manulife Funding Administration on December 15, 2022 for an combination buy worth of roughly $454 million, after customary buy worth changes at closing. The Acquisitions comprise roughly 137,800 acres of well-stocked and extremely productive timberlands positioned in a number of the strongest timber markets within the U.S. South.
The entire acquired acreage consists of payment possession. Rayonier not anticipates buying the roughly 34,500-acre long-term lease positioned in Georgia, as the vendor and Rayonier mutually agreed to extract this portion of the property from the transaction as a way to obtain the vendor’s goal of closing by 12 months finish. In consequence, Rayonier now expects the Acquisitions to contribute a mean annual harvest quantity of roughly 725,000 tons and a mean annual Adjusted EBITDA* contribution from timberland operations of roughly $23 million over the subsequent 10 years.
Rayonier financed the Acquisitions with money available and proceeds from incremental borrowings by the Farm Credit score System. Borrowing charges on the brand new, five-year $250 million time period mortgage are variable. The corporate has entered into an rate of interest swap settlement to repair $100 million of the brand new time period mortgage at an all-in efficient price of roughly 4.6%, internet of estimated patronage refunds.
“We’re happy to have efficiently closed on this assortment of premier high quality timberland property,” stated David Nunes, President and CEO. “We count on to combine these properties into our portfolio instantly and stay up for managing them for long-term worth creation.”
* “Adjusted EBITDA” is a non-GAAP monetary measure. See “Non-GAAP Monetary Measures” under. These targets are primarily based on assumptions and are topic to important uncertainties, a lot of that are outdoors of the Firm’s management. Whereas administration believes these targets and the underlying assumptions are affordable, they aren’t ensures of future efficiency. Precise outcomes will fluctuate, and people variations could also be materials. Please seek the advice of the Ahead-Wanting Statements dialogue under for a number of the elements that will trigger variations. Nothing herein is a illustration by any person who these targets shall be achieved, and the Firm undertakes no responsibility to replace its targets.
About Rayonier
Rayonier is a number one timberland actual property funding belief with property positioned in a number of the most efficient softwood timber rising areas in the US and New Zealand. As of September 30, 2022, Rayonier owned or leased underneath long-term agreements roughly 2.7 million acres of timberlands positioned within the U.S. South (1.79 million acres), U.S. Pacific Northwest (486,000 acres) and New Zealand (417,000 acres). Extra data is on the market at www.rayonier.com.
Ahead-Wanting Statements – Sure statements on this press launch relating to anticipated monetary and different advantages of Acquisitions, and different comparable statements regarding Rayonier’s future occasions, developments or monetary or operational efficiency or outcomes, are “forward-looking statements” made pursuant to the protected harbor provisions of the Non-public Securities Litigation Reform Act of 1995 and different federal securities legal guidelines. These forward-looking statements are recognized by way of phrases resembling “could,” “will,” “ought to,” “count on,” “estimate,” “imagine,” “intend,” “venture,” “anticipate” and different comparable language. Nevertheless, the absence of those or comparable phrases or expressions doesn’t imply {that a} assertion is just not forward-looking. Whereas administration believes that these forward-looking statements are affordable when made, forward-looking statements aren’t ensures of future efficiency or occasions and undue reliance shouldn’t be positioned on these statements.
The next necessary elements, amongst others, may trigger precise outcomes or occasions to vary materially from these expressed in forward-looking statements that will have been made on this doc: our skill to comprehend the anticipated monetary and different advantages of the Acquisitions; the cyclical and aggressive nature of the industries during which we function; fluctuations in demand for, or provide of, our forest merchandise and actual property choices, together with any downturn within the housing market; entry of latest opponents into our markets; modifications in international financial situations and world occasions, together with the conflict in Ukraine; enterprise disruptions arising from public well being crises and outbreaks of communicable illnesses, together with the present outbreak of the virus referred to as the novel coronavirus; fluctuations in demand for our merchandise in Asia, and particularly China; the uncertainties of potential impacts of climate-related initiatives; the associated fee and availability of third occasion logging, trucking and ocean freight companies; the geographic focus of a good portion of our timberland; our skill to establish, finance and full timberland acquisitions; modifications in environmental legal guidelines and rules relating to timber harvesting, delineation of wetlands, endangered species and growth of actual property typically, that will prohibit or adversely affect our skill to conduct our enterprise, or enhance the price of doing so; hostile climate situations, pure disasters and different catastrophic occasions resembling hurricanes, wind storms and wildfires; the prolonged, unsure and expensive course of related to the possession, entitlement and growth of actual property, particularly in Florida and Washington, together with modifications in legislation, coverage and political elements past our management; the provision and value of financing for actual property growth and mortgage loans; modifications in tariffs, taxes or treaties regarding the import and export of our merchandise or these of our opponents; modifications in key administration and personnel; and our skill to fulfill all needed authorized necessities to proceed to qualify as an actual property funding belief (“REIT”) and modifications in tax legal guidelines that would adversely have an effect on useful tax remedy.
For added elements that would affect future outcomes, please see Merchandise 1A – Danger Elements within the Firm’s most up-to-date Annual Report on Kind 10-Ok and comparable dialogue included in different experiences that we subsequently file with the Securities and Trade Fee (the “SEC”). Ahead-looking statements are solely as of the date they’re made, and the Firm undertakes no responsibility to replace its forward-looking statements besides as required by legislation. You’re suggested, nevertheless, to assessment any additional disclosures we make on associated topics in our subsequent experiences filed with the SEC.
Non-GAAP Monetary Measures – To complement Rayonier’s monetary statements offered in accordance with typically accepted accounting ideas in the US (“GAAP”), Rayonier has offered forward-looking statements relating to “Adjusted EBITDA,” which is outlined as earnings earlier than curiosity, taxes, depreciation, depletion, amortization, the non-cash price of land and improved growth, non-operating revenue and expense, working revenue (loss) attributable to noncontrolling curiosity in Timber Funds, the acquire on funding in timber funds, Fund II Timberland Inclinations, prices associated to the merger with Pope Assets, timber write-offs ensuing from casualty occasions, prices associated to shareholder litigation, acquire on overseas foreign money derivatives, inside assessment and restatement prices, and Massive Inclinations. Adjusted EBITDA is a non-GAAP measure that administration makes use of to make strategic selections in regards to the enterprise and that traders can use to judge the operational efficiency of the property underneath administration. It excludes particular objects that administration believes aren’t indicative of the Firm’s ongoing working outcomes. Rayonier is unable to current a quantitative reconciliation of forward-looking Adjusted EBITDA to its most immediately comparable forward-looking GAAP monetary measures as a result of such data is just not accessible, and administration can not reliably predict all the needed parts of such GAAP measures with out unreasonable effort or expense. As well as, we imagine such reconciliations would indicate a level of precision that may be complicated or deceptive to traders. The unavailable data may have a big affect on Rayonier’s future monetary outcomes. These non-GAAP monetary measures are preliminary estimates and are topic to dangers and uncertainties, together with, amongst others, modifications in reference to quarter-end and year-end changes. Any variation between the corporate’s precise outcomes and preliminary monetary information set forth above could also be materials.
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Contacts
Traders: Collin Mings, investorrelations@rayonier.com, 904-357-9100
Media: Alejandro Barbero, alejandro.barbero@rayonier.com
