{"id":4338,"date":"2019-05-30T12:45:53","date_gmt":"2019-05-30T16:45:53","guid":{"rendered":"https:\/\/nationalland.com\/blog\/?p=4338"},"modified":"2023-01-25T15:01:29","modified_gmt":"2023-01-25T20:01:29","slug":"timberland-investing-key-lessons-and-top-owners-and-managers","status":"publish","type":"post","link":"https:\/\/nationalland.com\/blog\/timberland-investing-key-lessons-and-top-owners-and-managers\/","title":{"rendered":"Timberland Investing Tips and Lessons"},"content":{"rendered":"

Introduction<\/strong><\/p>\n

Capital continues to flow into private timberlands, including publicly-traded timberland-owning firms. The benefits of timberland continue to speak to investors during periods of uncertainty: they secure wealth and produce cash through the cycle and over time. And part of managing these investments requires consistent attention to market data and perspectives from industry executives.<\/p>\n

Top Timberland Owners and Managers in the U.S. and Canada<\/strong><\/p>\n

Top 10 lists grab our eye and interest, from the Leader Board at The Masters Golf Tournament to businesses on the Fortune 500. Forisk tracks and collects timberland ownership and management information. Currently, this research covers nearly 100 million timberland acres, including 336 private organizations in the United States and Canada that each own or manage 10,000 timberland acres or more.<\/p>\n

Figure 1 lists the 2019 top 10 timberland owners in North America. Cracking the top 10 required owning at least 900,000 acres. Weyerhaeuser, which also tops in 2018, still leads with 12.3 million acres, about the same as the next six firms combined. J.D. Irving\u2019s 1.2 million acres in Maine secure its place at number 7 in the U.S., and its 1.9 million acres in New Brunswick and Nova Scotia make it the second-largest owner on the continent. Rayonier, Sierra Pacific, PotlatchDeltic, and Green Diamond also remain in the same slots as last year.<\/p>\n

Figure 1. Top 10 Timberland Owners in the U.S. and Canada<\/strong><\/p>\n

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Source: Forisk 2019 North American Timberland Owner & Manager List.<\/figcaption><\/figure>\n

Figure 2 looks separately at the top 10 timberland managers in North America, or those firms that manage forest activities on behalf of their clients. Timberland investment management organizations (TIMOs), who manage timber assets on behalf of institutional investors and large private investors, hold six slots; these six TIMOs manage 15.5 million acres, or 58% of the 26.8 million acres managed by the top 10 firms. Four forestry consulting and management firms, including the largest organization on this list (American Forest Management), account for the balance.<\/p>\n

Figure 2. Top 10 Timberland Managers in the U.S. and Canada<\/strong><\/p>\n

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Source: Forisk 2019 North American Timberland Owner & Manager List.<\/figcaption><\/figure>\n

Perspectives from Forest Industry Executives<\/strong><\/p>\n

How do forest industry executives \u201cdeploy capital\u201d and make investment decisions? In December 2018, Forisk hosted its second \u201cWood Flows & Cash Flows<\/em>\u201d conference. In addition to industry analysis, the event included a panel on forest industry investments. Participants included:<\/p>\n