Rayonier Completes Previously Announced Disposition of Oregon Properties
December 18 2023 - 4:15PM
Business Wire
Rayonier Inc. (NYSE:RYN) today announced the completion of its
previously announced disposition of 55,000 acres of timberland in
Oregon to Manulife Investment Management on behalf of clients for
$242 million (~$4,400 per acre), subject to customary prorations
and closing costs. The Company has used $150 million of the
proceeds to pay down its only floating rate debt and plans to use
approximately $30 million for a special dividend to be paid in
January 2024 (as announced in a separate press release today). The
remaining proceeds are being retained for further debt reduction
and/or other capital allocation purposes.
“Successfully closing on this asset sale is an important step
toward effectuating the asset disposition and capital structure
realignment plan that we announced on November 1st, targeting $1
billion of select asset sales over 18 months,” said David Nunes,
Chief Executive Officer. “We are actively working to bring
additional timberland assets to market as we execute on our plan to
capture the disparity between public and private timberland values,
position our balance sheet for a higher interest rate environment,
and return meaningful capital to shareholders.”
About Rayonier
Rayonier is a leading timberland real estate investment trust
with assets located in some of the most productive softwood timber
growing regions in the United States and New Zealand. As of
September 30, 2023, Rayonier owned or leased under long-term
agreements approximately 2.8 million acres of timberlands located
in the U.S. South (1.90 million acres), U.S. Pacific Northwest
(474,000 acres) and New Zealand (419,000 acres). More information
is available at www.rayonier.com.
Forward-Looking Statements – Certain statements in this
communication regarding anticipated financial outcomes including
Rayonier’s planned asset dispositions, use of proceeds, impact on
debt and leverage levels and targets, impact on EBITDA and CAD
trading multiples and expected cost of debt, earnings guidance, if
any, business and market conditions, outlook, expected dividend
rate, Rayonier’s business strategies, expected harvest schedules,
timberland acquisitions and dispositions, the anticipated benefits
of Rayonier’s business strategies, and other similar statements
relating to Rayonier’s future events, developments or financial or
operational performance or results, are “forward-looking
statements” made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995 and other federal
securities laws. These forward-looking statements are identified by
the use of words such as “may,” “will,” “should,” “expect,”
“estimate,” “believe,” “intend,” “project,” “anticipate” and other
similar language. However, the absence of these or similar words or
expressions does not mean that a statement is not forward-looking.
While management believes that these forward-looking statements are
reasonable when made, forward-looking statements are not guarantees
of future performance or events and undue reliance should not be
placed on these statements.
The following important factors, among others, could cause
actual results or events to differ materially from those expressed
in forward-looking statements that may have been made in this
document: the risk that we will not be able to reduce our existing
debt in accordance with the capital structure realignment plan (the
“Plan”); the risk that we will not be able to achieve our revised
leverage target in accordance with the Plan; the risk that we will
not be able to deploy net proceeds from the asset dispositions
contemplated by the Plan in the manner and timeframe we anticipate,
including the risk that such proceeds will not be sufficient to
achieve the target leverage ratio described in the Plan or to
return capital to shareholders; the risk that we will otherwise not
be able to execute on the Plan; the uncertain outcome, impact,
effects and results of the Plan or the announcement or execution of
the Plan, including the diversion of management time and attention;
the cyclical and competitive nature of the industries in which we
operate; fluctuations in demand for, or supply of, our forest
products and real estate offerings, including any downturn in the
housing market; entry of new competitors into our markets; changes
in global economic conditions and world events, including the war
in Ukraine; conflict in the Middle East and escalating tensions
between China and Taiwan; business disruptions arising from public
health crises and outbreaks of communicable diseases; fluctuations
in demand for our products in Asia, and especially China; the
uncertainties of potential impacts of climate-related initiatives;
the cost and availability of third party logging, trucking and
ocean freight services; the geographic concentration of a
significant portion of our timberland; our ability to identify,
finance and complete timberland acquisitions; changes in
environmental laws and regulations regarding timber harvesting,
delineation of wetlands, endangered species and development of real
estate generally, that may restrict or adversely impact our ability
to conduct our business, or increase the cost of doing so; adverse
weather conditions, natural disasters and other catastrophic events
such as hurricanes, wind storms and wildfires; the lengthy,
uncertain and costly process associated with the ownership,
entitlement and development of real estate, especially in Florida
and Washington, including changes in law, policy and political
factors beyond our control; the availability of financing for real
estate development and mortgage loans; changes in tariffs, taxes or
treaties relating to the import and export of our products or those
of our competitors; changes in key management and personnel; and
our ability to meet all necessary legal requirements to continue to
qualify as a real estate investment trust and changes in tax laws
that could adversely affect beneficial tax treatment.
For additional factors that could impact future results, please
see Item 1A – Risk Factors in the Company’s most recent Annual
Report on Form 10-K and similar discussion included in other
reports that we subsequently file with the Securities and Exchange
Commission (the “SEC”). Forward-looking statements are only as of
the date they are made, and the Company undertakes no duty to
update its forward-looking statements except as required by law.
You are advised, however, to review any further disclosures we make
on related subjects in our subsequent reports filed with the
SEC.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231218300187/en/
Investors: Collin Mings, investorrelations@rayonier.com,
904-357-9100 Media: Alejandro Barbero,
alejandro.barbero@rayonier.com
Rayonier (NYSE:RYN)
Historical Stock Chart
From Apr 2024 to May 2024
Rayonier (NYSE:RYN)
Historical Stock Chart
From May 2023 to May 2024