ATLANTA, Aug. 11, 2021 /PRNewswire/ -- CatchMark Timber
Trust, Inc. (NYSE: CTT) today announced that it had
completed the sale of 18,063 acres of prime Oregon timberlands – known as the Bandon property – for $100 million in cash, or approximately
$5,536 per acre, to Roseburg
Resources Co. The property had been purchased in August 2018 for $88.8
million or $4,916 per
acre.
The company recognized a gain on the sale of approximately
$23 million. CatchMark
increased its guidance for full-year net income to a range of
$13 to $17
million to reflect the sale but has not made any other
adjustments to its full year 2021 guidance. CatchMark had harvested
approximately 80% of its targeted full-year 2021 volume for the
Bandon property by transaction
close.
CatchMark Chief Executive Officer Brian
M. Davis said: "Coming off an exceptionally strong second
quarter when we generated record revenues, cash from operations,
and Adjusted EBITDA and our second highest quarter of net income,
this disposition demonstrates our ability to execute accretive
capital recycling transactions and further strengthens CatchMark's
capital position. It also allows us to concentrate our activities
in the U.S. South where we have a very robust operations
platform and see the greatest opportunity for future growth. Most
of the sale proceeds will be used to pay down existing debt. Our
simple strategy remains focused on investing in prime timberlands
in the nation's leading mill markets, employing delivered wood
sales as well as opportunistic stumpage sales to provide
predictable and stable cash flow, help cover our dividend, and
create long-term shareholder value."
AFM Real Estate acted as CatchMark's broker for the
transaction.
About CatchMark
CatchMark (NYSE: CTT) seeks to deliver
consistent and growing per share cash flow from disciplined
acquisitions and superior management of prime timberlands located
in high demand U.S. mill markets. Concentrating on maximizing
cash flows throughout business cycles, the company strategically
harvests its high-quality timberlands to produce durable revenue
growth and takes advantage of proximate mill markets, which provide
a reliable outlet for merchantable inventory. Headquartered in
Atlanta and focused exclusively on timberland ownership and
management, CatchMark began operations in 2007 and owns interests
in 1.5 million acres* of timberlands located in Alabama, Georgia, Oregon, South Carolina and Texas. For more information, visit
www.catchmark.com.
* As of June 30, 2021
About Roseburg
Founded in 1936, Roseburg Forest Products is a privately-owned
company and one of North America's
leading producers of particleboard, medium density fiberboard and
thermally fused laminates. Roseburg also manufactures softwood and
hardwood plywood, lumber, LVL and I-joists. The company owns and
sustainably manages more than 600,000 acres of timberland in
Oregon, North Carolina and Virginia, as well as an export wood chip
terminal facility in Coos Bay,
Ore. Roseburg products are
shipped throughout North America
and the Pacific Rim. To learn more
about the company please visit www.roseburg.com.
About American Forest
Management
American Forest
Management offers a suite of services including land and
habitat management, timberland inventory and sales, environmental
practices and technical services. AFM Real Estate, as subsidiary,
offers real estate acquisition and disposition services.
Headquartered in Charlotte, N.C.,
American Forest Management serves
clients across the country with 50+ regional offices and oversees
more than 6 million acres of land. For over fifty years, it has
been the industry's leading company, coordinating land transactions
valued at over $3.2 billion.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, as amended.
Such forward-looking statements can generally be identified by our
use of forward-looking terminology such as "may," "will," "expect,"
"intend," "anticipate," "estimate," "believe," "continue," or other
similar words. However, the absence of these or similar words or
expressions does not mean that a statement is not forward-looking.
Forward-looking statements are not guarantees of performance and
are based on certain assumptions, discuss future expectations,
describe plans and strategies, contain projections of results of
operations or of financial condition or state other forward-looking
information. Forward-looking statements in this press release
include, but are not limited to, that we see the greatest
opportunity for future growth in the U.S. South, that most of the
sale proceeds will be used to pay down existing debt, and that our
strategy remains focused on investing in prime timberlands in the
nation's leading mill markets, employing delivered wood sales as
well as opportunistic stumpage sales to provide predictable and
stable cash flow, help cover our dividend, and create long-term
shareholder value. Risks and uncertainties that could
cause our actual results to differ from these forward-looking
statements include, but are not limited to, that (i) the supply of
timberlands available for acquisition that meet our investment
criteria may be less than we currently anticipate and therefore it
may take us longer to reinvest the proceeds from the transaction
than we currently anticipate; (ii) we may be unsuccessful in
winning bids for timberland that are sold through an auction
process; (iii) we may not be able to make large dispositions of
timberland in capital recycling transactions at prices that are
attractive to us or at all; (iv) we may not be able to access
external sources of capital at attractive rates or at all; (v)
potential increases in interest rates could have a negative impact
on our business; (vi) we may not generate the harvest volumes from
our timberlands that we currently anticipate; (vii) the demand for
our timber may not increase at the rate we currently anticipate or
could decline due to changes in general economic and business
conditions in the geographic regions where our timberlands are
located, including as a result of the COVID-19 pandemic and the
measures taken as a response thereto; (viii) a downturn in the real
estate market, including decreases in demand and valuations, may
adversely impact our ability to generate income and cash flow from
sales of higher-and-better use properties; (ix) timber prices may
not increase at the rate we currently anticipate or could decline,
which would negatively impact our revenues; (x) our share
repurchase program may not be successful in improving stockholder
value over the long-term; (xi) our joint venture strategy may not
enable us to access non-dilutive capital and enhance our ability to
make acquisitions; (xii) we may not be successful in effectively
managing the Triple T joint venture and the anticipated benefits of
the joint venture may not be realized, including that our asset
management fee could be deferred or decreased and our investment in
the joint venture may lose some or all of its value; and (xiii) the
factors described in Part I, Item 1A. Risk Factors of our Annual
Report on Form 10-K for the fiscal year ended December 31, 2020 and our other filings with the
Securities and Exchange Commission. Accordingly, readers are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date of this press release.
We undertake no obligation to update our forward-looking
statements, except as required by law.
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SOURCE CatchMark Timber Trust, Inc.