Rayonier Completes Transactions to Optimize Timberland Portfolio
Rayonier Inc. (NYSE:RYN) announced today the completion of two strategic timberland transactions with Resource Management Service, LLC (RMS), further advancing the Company’s portfolio optimization strategy.
The transactions comprised the sale of approximately 36,000 acres of timberlands in southwest Washington for $145 million and the concurrent acquisition of approximately 57,000 acres of timberlands in Alabama and Texas for $146 million. The final price for each transaction is subject to customary closing costs, adjustments and prorations. The transactions were structured as a tax-efficient, like-kind exchange and are expected to be accretive to cash flow on a timber-only basis, with further upside potential from higher-and-better use (HBU) real estate sales and land-based solutions.
Key attributes of the newly acquired timberlands in Alabama and Texas include the following:
Highly productive timberlands – we estimate that 69% of the acquired timberlands are plantable with an average expressed site index of 75 feet.
