UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~September 30, 2023~~March 31, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


			For the transition period from to

RAYONIER INC.

(Exact name of registrant as specified in its charter)

North Carolina

1-6780

13-2607329

(State or other Jurisdiction of incorporation or organization)

(Commission File Number)

(I.R.S. Employer Identification Number)

Rayonier, L.P.

(Exact name of registrant as specified in its charter)

Delaware

333-237246

91-1313292

(State or other Jurisdiction of incorporation or organization)

(Commission File Number)

(I.R.S. Employer Identification Number)

1 RAYONIER WAY

WILDLIGHT, FL 32097

(Principal Executive Office)

Telephone Number: (904) 357-9100

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:


Title of each class	Trading Symbol	Exchange
Common Shares, no par value, of Rayonier Inc.	RYN	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Rayonier Inc. Yes ☒ No ☐ Rayonier, L.P. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Rayonier Inc. Yes ☒ No ☐ Rayonier, L.P. Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Rayonier Inc.

Large Accelerated Filer

☒

Accelerated Filer

☐

Non-accelerated Filer

☐

Smaller Reporting Company

☐

Emerging Growth Company

☐

Rayonier, L.P.

Large Accelerated Filer

☐

Accelerated Filer

☐

Non-accelerated Filer

☒

Smaller Reporting Company

☐

Emerging Growth Company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Rayonier Inc. ☐ Rayonier, L.P. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Rayonier Inc. Yes ☐ No ☒ Rayonier, L.P. Yes ☐ No ☒

As of ~~October 27, 2023,~~April 26, 2024, Rayonier Inc. had ~~148,292,759~~148,877,048 Common Shares outstanding. As of ~~October 27, 2023,~~April 26, 2024, Rayonier, L.P. had ~~2,447,848~~2,091,364 Units outstanding.

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EXPLANATORY NOTE

This report combines the quarterly reports on Form 10-Q for the quarterly period ended ~~September 30, 2023~~March 31, 2024 of Rayonier Inc., a North Carolina corporation, and Rayonier, L.P., a Delaware limited partnership. Unless stated otherwise or the context otherwise requires, references to “Rayonier” or “the Company” mean Rayonier Inc. and references to the “Operating Partnership” mean Rayonier, L.P. References to “we,” “us,” and “our” mean collectively Rayonier Inc., the Operating Partnership and entities/subsidiaries owned or controlled by Rayonier Inc. and/or the Operating Partnership.

Rayonier Inc. has elected to be taxed as a real estate investment trust, or REIT, under the Internal Revenue Code of 1986, as amended, commencing with its taxable year ended December 31, 2004. The Company is structured as an umbrella partnership REIT (“UPREIT”) under which substantially all of its business is conducted through the Operating Partnership. Rayonier Inc. is the sole general partner of the Operating Partnership. On May 8, 2020, Rayonier, L.P. acquired Pope Resources, a Delaware Limited Partnership (“Pope Resources”) and issued approximately 4.45 million operating partnership units (“OP Units” or “Redeemable Operating Partnership Units”) of Rayonier, L.P. as partial merger consideration. These OP Units are generally considered to be economic equivalents to Rayonier common shares and receive distributions equal to the dividends paid on Rayonier common shares.

As of ~~September 30, 2023,~~March 31, 2024, the Company owned a ~~98.4%~~98.6% interest in the Operating Partnership, with the remaining ~~1.6%~~1.4% interest owned by limited partners of the Operating Partnership. As the sole general partner of the Operating Partnership, Rayonier Inc. has exclusive control of the day-to-day management of the Operating Partnership.

Rayonier Inc. and the Operating Partnership are operated as one business. The management of the Operating Partnership consists of the same members as the management of Rayonier Inc. As general partner with control of the Operating Partnership, Rayonier Inc. consolidates Rayonier, L.P. for financial reporting purposes, and has no material assets or liabilities other than its investment in the Operating Partnership.

We believe combining the quarterly reports of Rayonier Inc. and Rayonier, L.P. into this single report results in the following benefits:

•Strengthens investors’ understanding of Rayonier Inc. and the Operating Partnership by enabling them to view the business as a single operating unit in the same manner as management views and operates the business;

•Creates efficiencies for investors by reducing duplicative disclosures and providing a single comprehensive document; and

•Generates time and cost savings associated with the preparation of the reports when compared to preparing separate reports for each entity.

There are a few important differences between Rayonier Inc. and the Operating Partnership in the context of how Rayonier Inc. operates as a consolidated company. The Company itself does not conduct business, other than through acting as the general partner of the Operating Partnership and issuing equity or equity-related instruments from time to time. The Operating Partnership holds, directly or indirectly, substantially all of the Company’s assets. Likewise, all debt is incurred by the Operating Partnership or entities/subsidiaries owned or controlled by the Operating Partnership. The Operating Partnership conducts substantially all of the Company’s business and is structured as a partnership with no publicly traded equity.

To help investors understand the significant differences between the Company and the Operating Partnership, this report includes:

•Separate Consolidated Financial Statements for Rayonier Inc. and Rayonier, L.P.;

•A combined set of Notes to the Consolidated Financial Statements with separate discussions of per share and per unit information, noncontrolling interests and shareholders’ equity and partners’ capital, as applicable;

•A combined Management’s Discussion and Analysis of Financial Condition and Results of Operations which includes specific information related to each reporting entity;

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•A separate Part I, Item 4. Controls and Procedures related to each reporting entity;

•A separate Part II, Item 2. Unregistered Sales of Equity Securities and Use of ~~Proceeds, and Issuer Purchases of Equity Securities section related to each reporting entity;~~Proceeds; and

•Separate Exhibit 31 and 32 certifications for each reporting entity within Part II, Item 6.

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TABLE OF CONTENTS


Item	Item		Page
		PART I - FINANCIAL INFORMATION
Item
Item
		PART I - FINANCIAL INFORMATION
		PART I - FINANCIAL INFORMATION
		PART I - FINANCIAL INFORMATION
1.	1.	Financial Statements (unaudited)	1
		Rayonier Inc.:
		Consolidated Statements of Income and Comprehensive Income for the Three and Nine Months Ended September 30, 2023 and 2022	1
		Consolidated Balance Sheets as of September 30, 2023 and December 31, 2022	2
		Consolidated Statements of Changes in Shareholders’ Equity for the Quarters and Nine Months Ended September 30, 2023 and 2022	3
		Consolidated Statements of Cash Flows for the Nine Months Ended Sept ember 30, 2023 and 2022	7
		Rayonier, L.P.:
		Consolidated Statements of Income and Comprehensive Income for the Three and Nine Months Ended September 30, 2023 and 2022	8
		Consolidated Balance Sheets as of September 30, 2023 and December 31, 2022	9
		Consolidated Statements of Changes in Capital for the Quarters and Nine Months Ended September 30, 2023 and 2022	10
		Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2023 and 2022	12
		Notes to Consolidated Financial Statements	13
1.
1.
		Rayonier Inc.:
		Rayonier Inc.:
		Rayonier Inc.:
		Consolidated Statements of Income and Comprehensive Income (Loss) for the Three Months Ended March 31, 2024 and 2023
		Consolidated Statements of Income and Comprehensive Income (Loss) for the Three Months Ended March 31, 2024 and 2023
		Consolidated Statements of Income and Comprehensive Income (Loss) for the Three Months Ended March 31, 2024 and 2023
		Consolidated Balance Sheets as of March 31 , 202 4 and December 31, 202 3
		Consolidated Balance Sheets as of March 31 , 202 4 and December 31, 202 3
		Consolidated Balance Sheets as of March 31 , 202 4 and December 31, 202 3
		Consolidated Statements of Changes in Shareholders’ Equity for the Quarters Ended March 3 1 , 202 4 and 20 23
		Consolidated Statements of Changes in Shareholders’ Equity for the Quarters Ended March 3 1 , 202 4 and 20 23
		Consolidated Statements of Changes in Shareholders’ Equity for the Quarters Ended March 3 1 , 202 4 and 20 23
		Consolidated Statements of Cash Flows for the Three Months Ended March 31 , 202 4 and 202 3
		Consolidated Statements of Cash Flows for the Three Months Ended March 31 , 202 4 and 202 3
		Consolidated Statements of Cash Flows for the Three Months Ended March 31 , 202 4 and 202 3
		Rayonier, L.P.:
		Rayonier, L.P.:
		Rayonier, L.P.:
		Consolidated Statements of Income and Comprehensive Income (Loss) for the Three Months Ended March 31, 2024 and 2023
		Consolidated Statements of Income and Comprehensive Income (Loss) for the Three Months Ended March 31, 2024 and 2023
		Consolidated Statements of Income and Comprehensive Income (Loss) for the Three Months Ended March 31, 2024 and 2023
		Consolidated Balance Sheets as of March 31, 202 4 and December 31, 202 3
		Consolidated Balance Sheets as of March 31, 202 4 and December 31, 202 3
		Consolidated Balance Sheets as of March 31, 202 4 and December 31, 202 3
		Consolidated Statements of Changes in Capital for the Quarters Ended March 3 1 , 202 4 and 202 3
		Consolidated Statements of Changes in Capital for the Quarters Ended March 3 1 , 202 4 and 202 3
		Consolidated Statements of Changes in Capital for the Quarters Ended March 3 1 , 202 4 and 202 3
		Consolidated Statements of Cash Flows for the Three Months Ended March 3 1 , 202 4 and 202 3
		Consolidated Statements of Cash Flows for the Three Months Ended March 3 1 , 202 4 and 202 3
		Consolidated Statements of Cash Flows for the Three Months Ended March 3 1 , 202 4 and 202 3
		Notes to Consolidated Financial Statements
		Notes to Consolidated Financial Statements
		Notes to Consolidated Financial Statements
2.
2.
2.	2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	38
3.	3.	Quantitative and Qualitative Disclosures about Market Risk	62
3.
3.
4.	4.	Controls and Procedures	64
		PART II - OTHER INFORMATION
4.
4.
		PART II - OTHER INFORMATION
		PART II - OTHER INFORMATION
		PART II - OTHER INFORMATION
1.
1.
1.	1.	Legal Proceedings	64

2.	2.	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	65

2.

2.
5.
5.
5.	5.	Other Information	66
6.	6.	Exhibits	67
		Signatures	68
6.
6.
		Signatures
		Signatures
		Signatures

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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

RAYONIER INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

AND COMPREHENSIVE INCOME (LOSS)

(Unaudited)

(Dollars in thousands, except per share amounts)


		Three Months Ended September 30,			Nine Months Ended September 30,
			Three Months Ended March 31,
			Three Months Ended March 31,
			Three Months Ended March 31,
		2023	2022		2023	2022		2024	2023
SALES (NOTE 3)	SALES (NOTE 3)	$201,579	$195,287		$589,526	$663,674
Costs and Expenses	Costs and Expenses						Costs and Expenses
Cost of sales	Cost of sales	(145,622)	(152,079)		(463,197)	(507,381)
Selling and general expenses	Selling and general expenses	(18,947)	(16,886)		(54,677)	(49,002)
Other operating (expense) income, net (Note 14)		(1,654)	14,581		(5,571)	14,398
		(166,223)	(154,384)		(523,445)	(541,985)
Other operating income (expense), net (Note 14)
				(151,887)
OPERATING INCOME	OPERATING INCOME	35,356	40,903		66,081	121,689
Interest expense, net	Interest expense, net	(12,598)	(9,056)		(36,755)	(26,476)
Interest and other miscellaneous income, net		529	1,252		21,725	990
Interest and other miscellaneous (expense) income, net
INCOME BEFORE INCOME TAXES	INCOME BEFORE INCOME TAXES	23,287	33,099		51,051	96,203
Income tax expense (Note 16)		(547)	(1,238)		(1,777)	(8,056)
Income tax benefit (expense) (Note 16)
NET INCOME	NET INCOME	22,740	31,861		49,274	88,147
Less: Net income attributable to noncontrolling interests in the operating partnership	Less: Net income attributable to noncontrolling interests in the operating partnership	(320)	(455)		(811)	(1,670)
Less: Net income attributable to noncontrolling interests in consolidated affiliates		(3,183)	(10,828)		(1,902)	(12,478)
Less: Net (income) loss attributable to noncontrolling interests in consolidated affiliates
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	NET INCOME ATTRIBUTABLE TO RAYONIER INC.	19,237	20,578		46,561	73,999
OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation adjustment, net of income tax effect of $0, $0, $0 and $0		(4,413)	(25,392)		(17,350)	(55,220)
Cash flow hedges, net of income tax effect of $75, $2,488, $322 and $5,677		7,379	20,147		7,002	66,329
Amortization of pension and postretirement plans, net of income tax expense of $0, $0, $0 and $0		2	188		4	564
Total other comprehensive income (loss)		2,968	(5,057)		(10,344)	11,673
COMPREHENSIVE INCOME		25,708	26,804		38,930	99,820
Less: Comprehensive income attributable to noncontrolling interests in the operating partnership		(373)	(490)		(592)	(2,147)
Less: Comprehensive income attributable to noncontrolling interests in consolidated affiliates		(2,906)	(8,029)		(884)	(6,670)
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.		$22,429	$18,285		$37,454	$91,003
OTHER COMPREHENSIVE (LOSS) INCOME
Foreign currency translation adjustment, net of income tax effect of $0 and $0
Foreign currency translation adjustment, net of income tax effect of $0 and $0
Foreign currency translation adjustment, net of income tax effect of $0 and $0
Cash flow hedges, net of income tax effect of $1,866 and $312
Pension and postretirement benefit plans, net of income tax effect of $1,222 and $0
Total other comprehensive loss
COMPREHENSIVE LOSS
Less: Comprehensive loss attributable to noncontrolling interests in the operating partnership
Less: Comprehensive loss attributable to noncontrolling interests in consolidated affiliates
COMPREHENSIVE LOSS ATTRIBUTABLE TO RAYONIER INC.
EARNINGS PER COMMON SHARE (NOTE 5)	EARNINGS PER COMMON SHARE (NOTE 5)
Basic earnings per share attributable to Rayonier Inc.	Basic earnings per share attributable to Rayonier Inc.	$0.13	$0.14		$0.31	$0.51
Basic earnings per share attributable to Rayonier Inc.
Basic earnings per share attributable to Rayonier Inc.
Diluted earnings per share attributable to Rayonier Inc.	Diluted earnings per share attributable to Rayonier Inc.	$0.13	$0.14		$0.31	$0.50

See Notes to Consolidated Financial Statements.

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RAYONIER INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Dollars in thousands)
September 30, 2023 December 31, 2022
ASSETS
CURRENT ASSETS
Cash and cash equivalents $107,784 $114,255
Trade receivables, less allowance for doubtful accounts of $217 and $74 31,447 27,837
Other receivables 9,894 14,701
Inventory (Note 13)
33,139 23,729
Prepaid expenses 20,415 20,573
Assets held for sale (Note 19)
18,320 713
Other current assets 1,929 573
Total current assets 222,928 202,381
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION 3,138,136 3,230,904
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT
INVESTMENTS (NOTE 12)
106,657 115,097
PROPERTY, PLANT AND EQUIPMENT
Land 6,453 6,453
Buildings 30,121 31,020
Machinery and equipment 6,581 6,568
Construction in progress 1,331 653
Total property, plant and equipment, gross 44,486 44,694
Less — accumulated depreciation (18,478) (17,505)
Total property, plant and equipment, net 26,008 27,189
RESTRICTED CASH (NOTE 18)
1,804 1,152
RIGHT-OF-USE ASSETS 92,736 97,167
OTHER ASSETS 119,480 115,481
TOTAL ASSETS $3,707,749 $3,789,371
LIABILITIES, NONCONTROLLING INTERESTS IN THE OPERATING PARTNERSHIP AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable $25,960 $22,100
Accrued taxes 8,920 3,734
Accrued payroll and benefits 10,443 12,564
Accrued interest 10,605 5,920
Deferred revenue 23,835 22,762
Other current liabilities 30,856 28,247
Total current liabilities 110,619 95,327
LONG-TERM DEBT, NET (NOTE 6)
1,511,470 1,514,721
PENSION AND OTHER POSTRETIREMENT BENEFITS (NOTE 15)
8,356 8,510
LONG-TERM LEASE LIABILITY 85,111 88,756
LONG-TERM DEFERRED REVENUE 11,317 6,895
OTHER NON-CURRENT LIABILITIES 78,744 88,687
CONTINGENCIES (NOTE 9)
NONCONTROLLING INTERESTS IN THE OPERATING PARTNERSHIP (NOTE 4)
69,820 105,763
SHAREHOLDERS’ EQUITY
Common Shares, 480,000,000 shares authorized, 148,287,338 and 147,282,631 shares issued and outstanding 1,493,511 1,462,945
Retained earnings 295,096 366,637
Accumulated other comprehensive income (Note 17)
27,504 35,813
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY 1,816,111 1,865,395
Noncontrolling interests in consolidated affiliates (Note 4)
16,201 15,317
TOTAL SHAREHOLDERS’ EQUITY 1,832,312 1,880,712
TOTAL LIABILITIES, NONCONTROLLING INTERESTS IN THE OPERATING PARTNERSHIP AND SHAREHOLDERS’ EQUITY $3,707,749 $3,789,371


	March 31, 2024	December 31, 2023
ASSETS
CURRENT ASSETS



Cash and cash equivalents	$159,903	$207,696


Trade receivables, less allowance for doubtful accounts of $202 and $210	35,309	28,652
Other receivables	5,145	11,517
Inventory (N ote 13)	43,541	31,017

Prepaid expenses	20,148	19,070
Assets held for sale (Note 19)	10,025	9,932
Other current assets	5,873	9,074
Total current assets	279,944	316,958
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	2,959,052	3,004,316
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS (NOTE 12)	106,403	105,595
PROPERTY, PLANT AND EQUIPMENT
Land	6,453	6,453
Buildings	31,147	31,251
Machinery and equipment	6,633	6,523
Construction in progress	1,895	1,841
Total property, plant and equipment, gross	46,128	46,068
Less — accumulated depreciation	(19,638)	(19,059)
Total property, plant and equipment, net	26,490	27,009
RESTRICTED CASH (NOTE 18)	677	678
RIGHT-OF-USE ASSETS	90,319	95,474
OTHER ASSETS	106,872	97,555
TOTAL ASSETS	$3,569,757	$3,647,585
LIABILITIES, NONCONTROLLING INTERESTS IN THE OPERATING PARTNERSHIP AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$34,134	$26,561



Accrued taxes	5,567	4,394

Accrued payroll and benefits	6,680	14,215
Accrued interest	9,913	7,094
Pension and other postretirement benefits (N ote 15)	1,223	8,444
Dividend and distribution payable	—	30,148
Deferred revenue	20,900	19,012

Other current liabilities	35,339	30,409
Total current liabilities	113,756	140,277
LONG-TERM DEBT, NET (NOTE 6)	1,361,985	1,365,773

PENSION AND OTHER POSTRETIREMENT BENEFITS, NON-CURRENT (NOTE 15)	1,448	1,441
LONG-TERM LEASE LIABILITY	82,932	87,684
LONG-TERM DEFERRED REVENUE	15,349	11,294
OTHER NON-CURRENT LIABILITIES	79,051	81,863
CONTINGENCIES (NOTE 9)
NONCONTROLLING INTERESTS IN THE OPERATING PARTNERSHIP (NOTE 4)	69,589	81,651
SHAREHOLDERS’ EQUITY
Common Shares, 480,000,000 shares authorized, 148,649,321 and 148,299,117 shares issued and outstanding	1,512,339	1,497,641
Retained earnings	296,533	338,244
Accumulated other comprehensive income (Note 17)	22,370	24,651
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY	1,831,242	1,860,536
Noncontrolling interests in consolidated affiliates (Note 4)	14,405	17,066
TOTAL SHAREHOLDERS’ EQUITY	1,845,647	1,877,602
TOTAL LIABILITIES, NONCONTROLLING INTERESTS IN THE OPERATING PARTNERSHIP AND SHAREHOLDERS’ EQUITY	$3,569,757	$3,647,585

See Notes to Consolidated Financial Statements.

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RAYONIER INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(Unaudited)

(Dollars in thousands, except share data)
Common Shares Retained
Earnings Accumulated
Other
Comprehensive Income Noncontrolling Interests in Consolidated Affiliates Shareholders’
Equity
Shares Amount
Balance, January 1, 2023 147,282,631 $1,462,945 $366,637 $35,813 $15,317 $1,880,712
Net income (loss) — — 8,474 — (1,037) 7,437
Net income attributable to noncontrolling interests in the operating partnership — — (174) — — (174)
Dividends ($0.285 per share) (a) — — (42,172) — — (42,172)
Issuance of shares under the “at-the-market” equity offering, net of commissions and offering costs of $24 400 (10) — — — (10)
Issuance of shares under incentive stock plans 1,564 — — — — —
Stock-based compensation — 2,499 — — — 2,499
Repurchase of common shares (1,167) (41) — — — (41)
Adjustment of noncontrolling interests in the operating partnership — — (2,376) — — (2,376)
Conversion of units into common shares 729,551 23,881 — — — 23,881
Amortization of pension and postretirement plan liabilities — — — 1 — 1
Foreign currency translation adjustment — — — (3,552) (181) (3,733)
Cash flow hedges — — — (12,504) 185 (12,319)
Allocation of other comprehensive loss to noncontrolling interests in the operating partnership — — — 1,110 — 1,110
Balance, March 31, 2023 148,012,979 $1,489,274 $330,389 $20,868 $14,284 $1,854,815
Net income — — 19,341 — (245) 19,096
Net income attributable to noncontrolling interests in the operating partnership — — (318) — — (318)
Dividends ($0.285 per share) (a) — — (42,279) — — (42,279)
Costs associated with the “at-the-market” (ATM) equity offering program — (71) — — — (71)
Issuance of shares under incentive stock plans 372,149 — — — — —
Stock-based compensation — 4,336 — — — 4,336
Repurchase of common shares (126,788) (4,147) — — — (4,147)
Adjustment of noncontrolling interests in the operating partnership — — 4,296 — — 4,296
Conversion of units into common shares 10,103 304 — — — 304
Amortization of pension and postretirement plan liabilities — — — 2 — 2
Foreign currency translation adjustment — — — (8,790) (413) (9,203)
Cash flow hedges — — — 12,273 (331) 11,942
Allocation of other comprehensive income to noncontrolling interests in the operating partnership — — — (58) — (58)
Balance, June 30, 2023 148,268,443 $1,489,696 $311,429 $24,295 $13,295 $1,838,715

~~Table of Contents~~

								RAYONIER INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (CONTINUED) (Unaudited) (Dollars in thousands, except share data)
		Common Shares		Retained Earnings	Accumulated Other Comprehensive Income	Noncontrolling Interests in Consolidated Affiliates	Shareholders’ Equity		Common Shares	Retained Earnings	Accumulated Other Comprehensive Income	Noncontrolling Interests in Consolidated Affiliates	Shareholders’ Equity
		Shares	Amount

Balance, June 30, 2023		148,268,443	$1,489,696	$311,429	$24,295	$13,295	$1,838,715
Balance, January 1, 2024
Balance, January 1, 2024
Balance, January 1, 2024
Net income	Net income	—	—	19,557	—	3,183	22,740
Net income attributable to noncontrolling interests in the operating partnership	Net income attributable to noncontrolling interests in the operating partnership	—	—	(320)	—	—	(320)
Dividends ($0.285 per share) (a)	Dividends ($0.285 per share) (a)	—	—	(42,460)	—	—	(42,460)

Issuance of shares under incentive stock plans	Issuance of shares under incentive stock plans	3,959	—	—	—	—	—
Issuance of shares under incentive stock plans
Issuance of shares under incentive stock plans
Stock-based compensation	Stock-based compensation	—	3,365	—	—	—	3,365
Repurchase of common shares	Repurchase of common shares	(968)	(29)	—	—	—	(29)

Adjustment of noncontrolling interests in the operating partnership	Adjustment of noncontrolling interests in the operating partnership	—	—	6,890	—	—	6,890
Conversion of common units to common shares		15,904	479	—	—	—	479
Amortization of pension and postretirement plan liabilities		—	—	—	2	—	2
Adjustment of noncontrolling interests in the operating partnership
Adjustment of noncontrolling interests in the operating partnership
Conversion of units into common shares
Pension and postretirement benefit plans
Foreign currency translation adjustment	Foreign currency translation adjustment	—	—	—	(4,180)	(233)	(4,413)
Cash flow hedges	Cash flow hedges	—	—	—	7,423	(44)	7,379
Allocation of other comprehensive income to noncontrolling interests in the operating partnership		—	—	—	(36)	—	(36)
Allocation of other comprehensive loss to noncontrolling interests in the operating partnership
Distributions to noncontrolling interests in consolidated affiliates
Balance, March 31, 2024

Balance, September 30, 2023		148,287,338	$1,493,511	$295,096	$27,504	$16,201	$1,832,312

(a)For information regarding distributions to noncontrolling interests in the operating partnership, see the Rayonier Inc. Consolidated Statements of Cash Flows and Note 4 — Noncontrolling Interests.

Table of Contents

RAYONIER INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (CONTINUED)

(Unaudited)

(Dollars in thousands, except share data)

Common Shares Retained
Earnings Accumulated
Other
Comprehensive Income (Loss) Noncontrolling Interests in Consolidated Affiliates Shareholders’
Equity
Shares Amount
Balance, January 1, 2022 145,372,961 $1,389,073 $402,307 ($19,604) $43,802 $1,815,578
Net income — — 29,986 — 1,012 30,998
Net income attributable to noncontrolling interests in the operating partnership — — (669) — — (669)
Dividends ($0.27 per share) (a) — — (39,902) — — (39,902)
Issuance of shares under the “at-the-market” equity offering, net of commissions and offering costs of $339 726,248 29,771 — — — 29,771
Issuance of shares under incentive stock plans 11,364 415 — — — 415
Stock-based compensation — 2,797 — — — 2,797
Repurchase of common shares (5,420) (214) — — — (214)
Adjustment of noncontrolling interests in the operating partnership — — (2,645) — — (2,645)
Conversion of units into common shares 2,535 104 — — — 104
Amortization of pension and postretirement plan liabilities — — — 188 — 188
Foreign currency translation adjustment — — — 5,668 790 6,458
Cash flow hedges — — — 39,822 605 40,427
Allocation of other comprehensive income to noncontrolling interests in the operating partnership — — — (101) — (101)
Distributions to noncontrolling interests in consolidated affiliates — — — — (1,566) (1,566)
Balance, March 31, 2022 146,107,688 $1,421,946 $389,077 $25,973 $44,643 $1,881,639
Net income — — 24,650 — 637 25,287
Net income attributable to noncontrolling interests in the operating partnership — — (546) — — (546)
Dividends ($0.285 per share) (a) — — (42,098) — — (42,098)
Costs associated with the “at-the-market” (ATM) equity offering program — (63) — — — (63)
Issuance of shares under incentive stock plans 304,887 1,983 — — — 1,983
Stock-based compensation — 4,412 — — — 4,412
Repurchase of common shares (91,820) (3,991) — — — (3,991)
Adjustment of noncontrolling interests in the operating partnership — — 11,412 — — 11,412
Conversion of units into common shares 977 42 — — — 42
Amortization of pension and postretirement plan liabilities — — — 188 — 188
Foreign currency translation adjustment — — — (34,373) (1,912) (36,285)
Cash flow hedges — — — 8,247 (2,492) 5,755
Allocation of other comprehensive loss to noncontrolling interests in the operating partnership — — — 575 — 575
Noncontrolling interests in consolidated affiliates redemption of shares — — — — (27,860) (27,860)
Balance, June 30, 2022 146,321,732 $1,424,329 $382,495 $610 $13,016 $1,820,450

~~Table of Contents~~

								RAYONIER INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (CONTINUED) (Unaudited) (Dollars in thousands, except share data)
		Common Shares		Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Noncontrolling Interests in Consolidated Affiliates	Shareholders’ Equity
		Shares	Amount						Common Shares	Retained Earnings	Accumulated Other Comprehensive Income	Noncontrolling Interests in Consolidated Affiliates	Shareholders’ Equity
Balance, June 30, 2022		146,321,732	td,424,329	$382,495	$610	td3,016	td,820,450
Net income		—	—	21,033	—	10,828	31,861

Balance, January 1, 2023
Balance, January 1, 2023
Balance, January 1, 2023

Net income (loss)
Net income (loss)
Net income (loss)
Net income attributable to noncontrolling interests in the operating partnership	Net income attributable to noncontrolling interests in the operating partnership	—	—	(455)	—	—	(455)
Dividends ($0.285 per share) (a)	Dividends ($0.285 per share) (a)	—	—	(42,052)	—	—	(42,052)
Costs associated with the “at-the-market” (ATM) equity offering program		—	(38)	—	—	—	(38)
Issuance of shares under the “at-the-market” equity offering, net of commissions and offering costs of $24
Issuance of shares under incentive stock plans	Issuance of shares under incentive stock plans	760	19	—	—	—	19
Stock-based compensation	Stock-based compensation	—	2,636	—	—	—	2,636
Repurchase of common shares	Repurchase of common shares	(569)	(20)	—	—	—	(20)

Adjustment of noncontrolling interests in the operating partnership	Adjustment of noncontrolling interests in the operating partnership	—	—	23,363	—	—	23,363
Conversion of common units to common shares		100,902	3,696	—	—	—	3,696
Amortization of pension and postretirement plan liabilities		—	—	—	188	—	188
Adjustment of noncontrolling interests in the operating partnership
Adjustment of noncontrolling interests in the operating partnership
Conversion of units into common shares
Pension and postretirement benefit plans
Foreign currency translation adjustment	Foreign currency translation adjustment	—	—	—	(24,065)	(1,327)	(25,392)
Cash flow hedges	Cash flow hedges	—	—	—	21,619	(1,472)	20,147

Allocation of other comprehensive loss to noncontrolling interests in the operating partnership	Allocation of other comprehensive loss to noncontrolling interests in the operating partnership	—	—	—	49	—	49
Distributions to noncontrolling interests in consolidated affiliates		—	—	—	—	(9,789)	(9,789)
Allocation of other comprehensive loss to noncontrolling interests in the operating partnership
Allocation of other comprehensive loss to noncontrolling interests in the operating partnership

Balance, September 30, 2022		146,422,825	$1,430,622	$384,384	($1,599)	$11,256	$1,824,663
Balance, March 31, 2023
Balance, March 31, 2023
Balance, March 31, 2023

See Notes to Consolidated Financial Statements.

Table of Contents

RAYONIER INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(Dollars in thousands)

Nine Months Ended September 30,

Three Months Ended March 31,

2023

2022

2024

2023

OPERATING ACTIVITIES

Net income

$49,274

$88,147

Net income

Adjustments to reconcile net income to cash provided by operating activities:

Depreciation, depletion and amortization

114,281

114,221

Non-cash cost of land and improved development

20,189

20,289

Stock-based incentive compensation expense

10,201

9,844

Stock-based incentive compensation expense

Deferred income taxes

(2,855)

(6,678)

Amortization of losses from pension and postretirement plans

564

Pension settlement charge

Timber write-offs resulting from casualty events

2,302

1,088

Other

7,822

(2,854)

Other

Changes in operating assets and liabilities:

Receivables

251

(12,845)

Inventories

(1,190)

(6,238)

Accounts payable

3,630

6,833

All other operating activities

5,027

(2,482)

All other operating activities

CASH PROVIDED BY OPERATING ACTIVITIES

208,936

209,889

INVESTING ACTIVITIES

Capital expenditures

(53,128)

(48,211)

Capital expenditures

Real estate development investments

(18,757)

(10,935)

Real estate development investments

Purchase of timberlands

(13,988)

(3,242)

Other

6,197

6,531

Other

CASH USED FOR INVESTING ACTIVITIES

(79,676)

(55,857)

FINANCING ACTIVITIES

Issuance of debt

—

406,842

Repayment of debt

—

(531,842)

Dividends paid on common shares

(127,587)

(123,619)

Distributions to noncontrolling interests in the operating partnership

(2,265)

(2,754)

Proceeds from the issuance of common shares under incentive stock plan

—

2,580

Dividends paid on common shares (a)

Distributions to noncontrolling interests in the operating partnership (b)

Proceeds from the issuance of common shares under the “at-the-market” (ATM) equity offering program, net of commissions and offering costs

(82)

31,877

Proceeds from the issuance of common shares under the “at-the-market” (ATM) equity offering program, net of commissions and offering costs

Repurchase of common shares to pay withholding taxes on vested incentive stock awards

(4,217)

(4,225)

Distributions to noncontrolling interests in consolidated affiliates

—

(16,472)

Distributions to noncontrolling interests in consolidated affiliates

CASH USED FOR FINANCING ACTIVITIES

(134,151)

(237,613)

EFFECT OF EXCHANGE RATE CHANGES ON CASH

(928)

(6,038)

CASH, CASH EQUIVALENTS AND RESTRICTED CASH

Change in cash, cash equivalents and restricted cash

(5,819)

(89,619)

Balance, beginning of year

115,407

369,139

Balance, end of period

$109,588

$279,520

(a)The three months ended March 31, 2024 includes an additional cash dividend of $0.20 per common share, totaling $29.8 million. The additional dividend was paid on January 12, 2024, to shareholders of record on December 29, 2023.

(b)The three months ended March 31, 2024 includes an additional cash distribution of $0.20 per operating partnership unit, totaling $0.5 million. The additional distribution was paid on January 12, 2024, to holders of record on December 29, 2023.

Three Months Ended March 31,

2024

2023

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

Cash paid during the period:

Interest (a)

Income taxes

Non-cash investing activity:

Capital assets purchased on account

Nine Months Ended September 30,

2023

2022

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

Cash paid during the period:

Interest (a)

$31,556

$24,161

Income taxes (b)

4,651

14,627

Non-cash investing activity:

Capital assets purchased on account

5,161

4,882

Non-cash financing activity:

Noncontrolling interests in consolidated affiliates redemption of shares (c)

—

27,860

(a)Interest paid is presented net of patronage payments received of ~~$6.2~~$8.1 million and ~~$6.0~~$6.1 million for the ~~nine~~three months ended ~~September 30,~~March 31, 2024 and March 31, 2023, ~~and September 30, 2022,~~ respectively. For additional information on patronage payments, see Note 7 — Debt in the ~~2022~~2023 Form 10-K.

~~(b)Income taxes paid in 2022 were elevated due to timing of required tax payments for the New Zealand subsidiary following a full utilization of its net operating losses.~~

~~(c)~~

In the second quarter of 2022, the New Zealand subsidiary made a capital distribution in order to redeem certain equity interests, resulting in the recording of a loan payable by the New Zealand subsidiary in the amount of $27.9 million.

See Notes to Consolidated Financial Statements.

Table of Contents

RAYONIER, L.P. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

AND COMPREHENSIVE INCOME (LOSS)

(Unaudited)

(Dollars in thousands, except per unit amounts)


		Three Months Ended September 30,			Nine Months Ended September 30,
			Three Months Ended March 31,
			Three Months Ended March 31,
			Three Months Ended March 31,
		2023	2022		2023	2022	2024	2023
SALES (NOTE 3)	SALES (NOTE 3)	$201,579	$195,287		$589,526	$663,674
Costs and Expenses	Costs and Expenses
Cost of sales	Cost of sales	(145,622)	(152,079)		(463,197)	(507,381)
Cost of sales
Cost of sales
Selling and general expenses	Selling and general expenses	(18,947)	(16,886)		(54,677)	(49,002)
Other operating (expense) income, net (Note 14)		(1,654)	14,581		(5,571)	14,398
		(166,223)	(154,384)		(523,445)	(541,985)
Other operating income (expense), net (Note 14)
				(151,887)
OPERATING INCOME	OPERATING INCOME	35,356	40,903		66,081	121,689
Interest expense, net	Interest expense, net	(12,598)	(9,056)		(36,755)	(26,476)
Interest and other miscellaneous income, net		529	1,252		21,725	990
Interest and other miscellaneous (expense) income), net
INCOME BEFORE INCOME TAXES	INCOME BEFORE INCOME TAXES	23,287	33,099		51,051	96,203
Income tax expense (Note 16)		(547)	(1,238)		(1,777)	(8,056)
Income tax benefit (expense) (Note 16)
NET INCOME	NET INCOME	22,740	31,861		49,274	88,147
Less: Net income attributable to noncontrolling interests in consolidated affiliates		(3,183)	(10,828)		(1,902)	(12,478)
Less: Net (income) loss attributable to noncontrolling interests in consolidated affiliates
NET INCOME ATTRIBUTABLE TO RAYONIER, L.P. UNITHOLDERS	NET INCOME ATTRIBUTABLE TO RAYONIER, L.P. UNITHOLDERS	19,557	21,033		47,372	75,669
NET INCOME ATTRIBUTABLE TO UNITHOLDERS ATTRIBUTABLE TO:	NET INCOME ATTRIBUTABLE TO UNITHOLDERS ATTRIBUTABLE TO:
Limited Partners	Limited Partners	19,361	20,823		46,898	74,912
Limited Partners
Limited Partners
General Partners	General Partners	196	210		474	757
Net income attributable to unitholders	Net income attributable to unitholders	19,557	21,033		47,372	75,669
OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation adjustment, net of income tax effect of $0, $0, $0 and $0		(4,413)	(25,392)		(17,350)	(55,220)
Cash flow hedges, net of income tax effect of $75, $2,488, $322 and $5,677		7,379	20,147		7,002	66,329
Amortization of pension and postretirement plans, net of income tax expense of $0, $0, $0 and $0		2	188		4	564
Total other comprehensive income (loss)		2,968	(5,057)		(10,344)	11,673
COMPREHENSIVE INCOME		25,708	26,804		38,930	99,820
Less: Comprehensive income attributable to noncontrolling interests in consolidated affiliates		(2,906)	(8,029)		(884)	(6,670)
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER, L.P. UNITHOLDERS		$22,802	$18,775		$38,046	$93,150
OTHER COMPREHENSIVE (LOSS) INCOME
Foreign currency translation adjustment, net of income tax effect of $0 and $0
Foreign currency translation adjustment, net of income tax effect of $0 and $0
Foreign currency translation adjustment, net of income tax effect of $0 and $0
Cash flow hedges, net of income tax effect of $1,866 and $312
Pension and postretirement benefit plans, net of income tax expense of $1,222 and $0
Total other comprehensive loss
COMPREHENSIVE LOSS
Less: Comprehensive loss attributable to noncontrolling interests in consolidated affiliates
COMPREHENSIVE LOSS ATTRIBUTABLE TO RAYONIER, L.P. UNITHOLDERS
EARNINGS PER UNIT (NOTE 5)	EARNINGS PER UNIT (NOTE 5)
Basic earnings per unit attributable to Rayonier, L.P.	Basic earnings per unit attributable to Rayonier, L.P.	$0.13	$0.14		$0.31	$0.51
Basic earnings per unit attributable to Rayonier, L.P.
Basic earnings per unit attributable to Rayonier, L.P.
Diluted earnings per unit attributable to Rayonier, L.P.	Diluted earnings per unit attributable to Rayonier, L.P.	$0.13	$0.14		$0.31	$0.50

See Notes to Consolidated Financial Statements.

Table of Contents

RAYONIER, L.P. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Dollars in thousands)
September 30, 2023 December 31, 2022
ASSETS
CURRENT ASSETS
Cash and cash equivalents $107,784 $114,255
Trade receivables, less allowance for doubtful accounts of $217 and $74 31,447 27,837
Other receivables 9,894 14,701
Inventory (Note 13)
33,139 23,729
Prepaid expenses 20,415 20,573
Assets held for sale (Note 19)
18,320 713
Other current assets 1,929 573
Total current assets 222,928 202,381
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION 3,138,136 3,230,904
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT
INVESTMENTS (NOTE 12)
106,657 115,097
PROPERTY, PLANT AND EQUIPMENT
Land 6,453 6,453
Buildings 30,121 31,020
Machinery and equipment 6,581 6,568
Construction in progress 1,331 653
Total property, plant and equipment, gross 44,486 44,694
Less — accumulated depreciation (18,478) (17,505)
Total property, plant and equipment, net 26,008 27,189
RESTRICTED CASH (NOTE 18)
1,804 1,152
RIGHT-OF-USE ASSETS 92,736 97,167
OTHER ASSETS 119,480 115,481
TOTAL ASSETS $3,707,749 $3,789,371
LIABILITIES, REDEEMABLE OPERATING PARTNERSHIP UNITS AND CAPITAL
CURRENT LIABILITIES
Accounts payable $25,960 $22,100
Accrued taxes 8,920 3,734
Accrued payroll and benefits 10,443 12,564
Accrued interest 10,605 5,920
Deferred revenue 23,835 22,762
Other current liabilities 30,856 28,247
Total current liabilities 110,619 95,327
LONG-TERM DEBT, NET (NOTE 6)
1,511,470 1,514,721
PENSION AND OTHER POSTRETIREMENT BENEFITS (NOTE 15)
8,356 8,510
LONG-TERM LEASE LIABILITY 85,111 88,756
LONG-TERM DEFERRED REVENUE 11,317 6,895
OTHER NON-CURRENT LIABILITIES 78,744 88,687
CONTINGENCIES (NOTE 9)
REDEEMABLE OPERATING PARTNERSHIP UNITS (NOTE 4) 2,453,269 and 3,208,827 Units outstanding, respectively
69,820 105,763
CAPITAL
General partners’ capital 17,852 18,251
Limited partners’ capital 1,767,335 1,806,895
Accumulated other comprehensive income (Note 17)
30,924 40,249
TOTAL CONTROLLING INTEREST CAPITAL 1,816,111 1,865,395
Noncontrolling interests in consolidated affiliates (Note 4)
16,201 15,317
TOTAL CAPITAL 1,832,312 1,880,712
TOTAL LIABILITIES, REDEEMABLE OPERATING PARTNERSHIP UNITS AND CAPITAL $3,707,749 $3,789,371


	March 31, 2024	December 31, 2023
ASSETS
CURRENT ASSETS



Cash and cash equivalents	$159,903	$207,696


Trade receivables, less allowance for doubtful accounts of $202 and $210	35,309	28,652
Other receivables	5,145	11,517
Inventory (Note 13)	43,541	31,017

Prepaid expenses	20,148	19,070
Assets held for sale (Note 19)	10,025	9,932
Other current assets	5,873	9,074
Total current assets	279,944	316,958
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	2,959,052	3,004,316
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS (NOTE 12)	106,403	105,595
PROPERTY, PLANT AND EQUIPMENT
Land	6,453	6,453
Buildings	31,147	31,251
Machinery and equipment	6,633	6,523
Construction in progress	1,895	1,841
Total property, plant and equipment, gross	46,128	46,068
Less — accumulated depreciation	(19,638)	(19,059)
Total property, plant and equipment, net	26,490	27,009
RESTRICTED CASH (NOTE 18)	677	678
RIGHT-OF-USE ASSETS	90,319	95,474
OTHER ASSETS	106,872	97,555
TOTAL ASSETS	$3,569,757	$3,647,585
LIABILITIES, REDEEMABLE OPERATING PARTNERSHIP UNITS AND CAPITAL
CURRENT LIABILITIES
Accounts payable	$34,134	$26,561



Accrued taxes	5,567	4,394

Accrued payroll and benefits	6,680	14,215
Accrued interest	9,913	7,094
Pension and other postretirement benefits (Note 1 5)	1,223	8,444
Distribution payable	—	30,148
Deferred revenue	20,900	19,012

Other current liabilities	35,339	30,409
Total current liabilities	113,756	140,277
LONG-TERM DEBT, NET (NOTE 6)	1,361,985	1,365,773

PENSION AND OTHER POSTRETIREMENT BENEFITS (NOTE 15)	1,448	1,441
LONG-TERM LEASE LIABILITY	82,932	87,684
LONG-TERM DEFERRED REVENUE	15,349	11,294
OTHER NON-CURRENT LIABILITIES	79,051	81,863

CONTINGENCIES (NOTE 9)
REDEEMABLE OPERATING PARTNERSHIP UNITS (NOTE 4) 2,093,522 and 2,443,898 Units outstanding, respectively	69,589	81,651
CAPITAL
General partners’ capital	18,057	18,325
Limited partners’ capital	1,787,713	1,814,193
Accumulated other comprehensive income (Note 17)	25,472	28,018
TOTAL CONTROLLING INTEREST CAPITAL	1,831,242	1,860,536
Noncontrolling interests in consolidated affiliates (Note 4)	14,405	17,066
TOTAL CAPITAL	1,845,647	1,877,602
TOTAL LIABILITIES, REDEEMABLE OPERATING PARTNERSHIP UNITS AND CAPITAL	$3,569,757	$3,647,585

See Notes to Consolidated Financial Statements.

Table of Contents

RAYONIER, L.P. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN CAPITAL

(Unaudited)

(Dollars in thousands, except share data)


	Units

	Units

	Units



Balance, January 1, 2024
Balance, January 1, 2024
Balance, January 1, 2024
Net income
Net income
Net income
Distributions on units ($0.285 per unit)
Distributions on units ($0.285 per unit)
Distributions on units ($0.285 per unit)

Stock-based compensation

Stock-based compensation

Stock-based compensation
Repurchase of units
Repurchase of units
Repurchase of units
Adjustment of Redeemable Operating Partnership Units
Adjustment of Redeemable Operating Partnership Units
Adjustment of Redeemable Operating Partnership Units
Conversion of units into common shares
Conversion of units into common shares
Conversion of units into common shares

Pension and postretirement benefit plans

Pension and postretirement benefit plans

Pension and postretirement benefit plans
Foreign currency translation adjustment
Foreign currency translation adjustment
Foreign currency translation adjustment
Cash flow hedges
Cash flow hedges
Cash flow hedges
Distributions to noncontrolling interests in consolidated affiliates
Distributions to noncontrolling interests in consolidated affiliates
Distributions to noncontrolling interests in consolidated affiliates
Balance, March 31, 2024
Balance, March 31, 2024
Balance, March 31, 2024

	Units			Accumulated Other Comprehensive Income	Noncontrolling Interests in Consolidated Affiliates	Total Capital
		General Partners’ Capital	Limited Partners’ Capital
Balance, January 1, 2023		$18,251	$1,806,895	$40,249	$15,317	$1,880,712
Net income (loss)		85	8,389	—	(1,037)	7,437
Distributions on units ($0.285 per unit)		(431)	(42,602)	—	—	(43,033)
Issuance of units under the “at-the-market” equity offering, net of commissions and offering costs of $24		—	(10)	—	—	(10)

Stock-based compensation		25	2,474	—	—	2,499
Repurchase of units		—	(41)	—	—	(41)
Adjustment of Redeemable Operating Partnership Units		(6)	(573)	—	—	(579)
Conversion of units into common shares		239	23,642	—	—	23,881

Amortization of pension and postretirement plan liabilities		—	—	1	—	1
Foreign currency translation adjustment		—	—	(3,552)	(181)	(3,733)
Cash flow hedges		—	—	(12,504)	185	(12,319)

Balance, March 31, 2023		$18,163	$1,798,174	$24,194	$14,284	$1,854,815
Net income		193	19,148	—	(245)	19,096
Distributions on units ($0.285 per unit)		(429)	(42,555)	—	—	(42,984)
Costs associated with the “at-the-market” (ATM) equity offering program		(1)	(70)	—	—	(71)

Stock-based compensation		43	4,293	—	—	4,336
Repurchase of units		(41)	(4,106)	—	—	(4,147)
Adjustment of Redeemable Operating Partnership Units		46	4,579	—	—	4,625
Conversion of units into common shares		3	301	—	—	304

Amortization of pension and postretirement plan liabilities		—	—	2	—	2
Foreign currency translation adjustment		—	—	(8,790)	(413)	(9,203)
Cash flow hedges		—	—	12,273	(331)	11,942

Balance, June 30, 2023		$17,977	$1,779,764	$27,679	$13,295	$1,838,715

Net income		196	19,361	—	3,183	22,740
Distributions on units ($0.285 per unit)		(432)	(42,727)	—	—	(43,159)

Stock-based compensation		34	3,331	—	—	3,365
Repurchase of units		—	(29)	—	—	(29)
Adjustment of Redeemable Operating Partnership Units		72	7,161	—	—	7,233
Conversion of units into common shares		5	474	—	—	479

Amortization of pension and postretirement plan liabilities		—	—	2	—	2
Foreign currency translation adjustment		—	—	(4,180)	(233)	(4,413)
Cash flow hedges		—	—	7,423	(44)	7,379

Balance, September 30, 2023		$17,852	$1,767,335	$30,924	$16,201	$1,832,312


	Units		Accumulated Other Comprehensive Income	Noncontrolling Interests in Consolidated Affiliates	Total Capital
	General Partners’ Capital	Limited Partners’ Capital
Balance, January 1, 2023	$18,251	$1,806,895	$40,249	$15,317	$1,880,712
Net income (loss)	85	8,389	—	(1,037)	7,437
Distributions on units ($0.285 per unit)	(431)	(42,602)	—	—	(43,033)
Issuance of units under the “at-the-market” equity offering, net of commissions and offering costs of $24	—	(10)	—	—	(10)

Stock-based compensation	25	2,474	—	—	2,499
Repurchase of units	—	(41)	—	—	(41)
Adjustment of Redeemable Operating Partnership Units	(6)	(573)	—	—	(579)
Conversion of units into common shares	239	23,642	—	—	23,881

Pension and postretirement benefit plans	—	—	1	—	1
Foreign currency translation adjustment	—	—	(3,552)	(181)	(3,733)
Cash flow hedges	—	—	(12,504)	185	(12,319)

Balance, March 31, 2023	$18,163	$1,798,174	$24,194	$14,284	$1,854,815

~~Table of Contents~~

Units Accumulated
Other
Comprehensive
Income (Loss) Noncontrolling Interests in Consolidated Affiliates Total Capital
General Partners’ Capital Limited Partners’ Capital
Balance, January 1, 2022 $17,872 $1,769,367 ($15,463) $43,802 $1,815,578
Net income 300 29,686 — 1,012 30,998
Distributions on units ($0.27 per unit) (408) (40,388) — — (40,796)
Issuance of units under the “at-the-market” equity offering, net of commissions and offering costs of $339 298 29,473 — — 29,771
Issuance of units under incentive stock plans 4 411 — — 415
Stock-based compensation 28 2,769 — — 2,797
Repurchase of units (2) (212) — — (214)
Adjustment of Redeemable Operating Partnership Units (25) (2,496) — — (2,521)
Conversion of units into common shares 1 103 — — 104
Amortization of pension and postretirement plan liabilities — — 188 — 188
Foreign currency translation adjustment — — 5,668 790 6,458
Cash flow hedges — — 39,822 605 40,427
Distributions to noncontrolling interests in consolidated affiliates — — — (1,566) (1,566)
Balance, March 31, 2022 $18,068 $1,788,713 $30,215 $44,643 $1,881,639
Net income 246 24,404 — 637 25,287
Distributions on units ($0.285 per unit) (430) (42,612) — — (43,042)
Costs associated with the “at-the-market” (ATM) equity offering program (1) (62) — — (63)
Issuance of units under incentive stock plans 20 1,963 — — 1,983
Stock-based compensation 44 4,368 — — 4,412
Repurchase of units (40) (3,951) — — (3,991)
Adjustment of Redeemable Operating Partnership Units 124 12,261 — — 12,385
Conversion of units into common shares — 42 — — 42
Amortization of pension and postretirement plan liabilities — — 188 — 188
Foreign currency translation adjustment — — (34,373) (1,912) (36,285)
Cash flow hedges — — 8,247 (2,492) 5,755
Noncontrolling interests in consolidated affiliates redemption of shares — — — (27,860) (27,860)
Balance, June 30, 2022 $18,031 $1,785,126 $4,277 $13,016 $1,820,450
Net income 210 20,823 — 10,828 31,861
Distributions on units ($0.285 per unit) (430) (42,537) — — (42,967)
Costs associated with the “at-the-market” (ATM) equity offering program (1) (37) — — (38)
Issuance of units under incentive stock plans — 19 — — 19
Stock-based compensation 27 2,609 — — 2,636
Repurchase of units — (20) — — (20)
Adjustment of Redeemable Operating Partnership Units 239 23,633 — — 23,872
Conversion of units into common shares 37 3,659 — — 3,696
Amortization of pension and postretirement plan liabilities — — 188 — 188
Foreign currency translation adjustment — — (24,065) (1,327) (25,392)
Cash flow hedges — — 21,619 (1,472) 20,147
Distributions to noncontrolling interests in consolidated affiliates — — — (9,789) (9,789)
Balance, September 30, 2022 $18,113 $1,793,275 $2,019 $11,256 $1,824,663

See Notes to Consolidated Financial Statements.

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RAYONIER, L.P. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(Dollars in thousands)
Nine Months Ended September 30,
2023 2022
OPERATING ACTIVITIES
Net income $49,274 $88,147
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation, depletion and amortization 114,281 114,221
Non-cash cost of land and improved development 20,189 20,289
Stock-based incentive compensation expense 10,201 9,844
Deferred income taxes (2,855) (6,678)
Amortization of losses from pension and postretirement plans 4 564
Timber write-offs resulting from casualty events 2,302 1,088
Other 7,822 (2,854)
Changes in operating assets and liabilities:
Receivables 251 (12,845)
Inventories (1,190) (6,238)
Accounts payable 3,630 6,833
All other operating activities 5,027 (2,482)
CASH PROVIDED BY OPERATING ACTIVITIES 208,936 209,889
INVESTING ACTIVITIES
Capital expenditures (53,128) (48,211)
Real estate development investments (18,757) (10,935)
Purchase of timberlands (13,988) (3,242)
Other 6,197 6,531
CASH USED FOR INVESTING ACTIVITIES (79,676) (55,857)
FINANCING ACTIVITIES
Issuance of debt — 406,842
Repayment of debt — (531,842)
Distributions on units (129,852) (126,373)
Proceeds from the issuance of units under incentive stock plan — 2,580
Proceeds from the issuance of units under the “at-the-market” (ATM) equity offering program, net of commissions and offering costs (82) 31,877
Repurchase of units to pay withholding taxes on vested incentive stock awards (4,217) (4,225)
Distributions to noncontrolling interests in consolidated affiliates — (16,472)
CASH USED FOR FINANCING ACTIVITIES (134,151) (237,613)
EFFECT OF EXCHANGE RATE CHANGES ON CASH (928) (6,038)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH
Change in cash, cash equivalents and restricted cash (5,819) (89,619)
Balance, beginning of year 115,407 369,139
Balance, end of period $109,588 $279,520

Nine Months Ended September 30,
2023 2022
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during the period:
Interest (a) $31,556 $24,161
Income taxes (b) 4,651 14,627
Non-cash investing activity:
Capital assets purchased on account 5,161 4,882
Non-cash financing activity:
Noncontrolling interests in consolidated affiliates redemption of shares (c) — 27,860


	Three Months Ended March 31,
	2024	2023
OPERATING ACTIVITIES
Net income	$2,306	$7,437
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation, depletion and amortization	37,083	37,599
Non-cash cost of land and improved development	2,953	4,208
Stock-based incentive compensation expense	3,218	2,499
Deferred income taxes	(1,004)	(1,155)
Pension settlement charge	5,673	—

Timber write-offs resulting from casualty events	—	2,302





Other	1,899	578
Changes in operating assets and liabilities:
Receivables	(7,493)	3,730
Inventories	565	(4,098)
Accounts payable	8,537	8,913

All other operating activities	(1,439)	1,938
CASH PROVIDED BY OPERATING ACTIVITIES	52,298	63,951
INVESTING ACTIVITIES
Capital expenditures	(18,868)	(18,746)

Real estate development investments	(5,483)	(7,753)

Purchase of timberlands	—	(8,729)






Other	302	3,029
CASH USED FOR INVESTING ACTIVITIES	(24,049)	(32,199)
FINANCING ACTIVITIES


Distributions on units (a)	(73,343)	(43,010)

Proceeds from the issuance of units under the “at-the-market” (ATM) equity offering program, net of commissions and offering costs	—	(10)


Repurchase of units to pay withholding taxes on vested incentive stock awards	(31)	(41)





Distributions to noncontrolling interests in consolidated affiliates	(1,713)	—


CASH USED FOR FINANCING ACTIVITIES	(75,087)	(43,061)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	(956)	(362)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH
Change in cash, cash equivalents and restricted cash	(47,794)	(11,671)
Balance, beginning of year	208,374	115,407
Balance, end of period	$160,580	$103,736

(a)The three months ended March 31, 2024 includes an additional cash distribution of $.20 per operating partnership unit, totaling $30.2 million. The additional distribution was paid on January 12, 2024, to holders of record on December 29, 2023.


	Three Months Ended March 31,
	2024	2023
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during the period:
Interest (a)	$800	$3,802
Income taxes	1,845	2,203
Non-cash investing activity:
Capital assets purchased on account	7,330	5,689

~~(b)Income taxes paid in 2022 were elevated due to timing of required tax payments for the New Zealand subsidiary following a full utilization of its net operating losses.~~

~~(c)~~

See Notes to Consolidated Financial Statements.

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RAYONIER, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

1.BASIS OF PRESENTATION

The unaudited consolidated financial statements and notes thereto of Rayonier Inc. and its subsidiaries and Rayonier, L.P. have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”).

The Rayonier Inc. and Rayonier, L.P. year-end balance sheet information was derived from audited financial statements not included herein. In the opinion of management, these financial statements and notes reflect any adjustments (all of which are normal recurring adjustments) necessary for a fair presentation of the results of operations, financial position and cash flows for the periods presented. These statements and notes should be read in conjunction with the financial statements and supplementary data included in our Annual Report on Form 10-K for the year ended December 31, ~~2022,~~2023, as filed with the SEC (the ~~“2022~~“2023 Form 10-K”).

SUMMARY OF UPDATES TO SIGNIFICANT ACCOUNTING POLICIES

For a full description of our other significant accounting policies, see Note 1 — Summary of Significant Accounting Policies in our ~~2022~~2023 Form 10-K.

~~REVENUE RECOGNITION~~ACCOUNTING STANDARDS ISSUED BUT NOT YET ADOPTED

~~NON-TIMBER SALES~~

~~Carbon Capture~~In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and ~~Storage Sales~~

~~Carbon capture~~a description of other segment items (the difference between segment revenue less the segment expenses disclosed under the significant expense principle and ~~storage (“CCS”) sales are primarily comprised~~each reported measure of revenue generated from granting land access and the right to inject, sequester and permanently store carbon dioxide in a subsurface area. CCS contracts contain variable consideration arrangements, which may include variable durations, rates, access acres and carbon volumes. The determinationsegment profit or loss) by reportable segment, as well as disclosure of the ~~transaction price~~title and ~~the allocation~~position of the ~~transaction price~~entity’s CODM and an explanation of how the CODM uses the reported measures of segment profit or loss in assessing segment performance and deciding how to allocate resources. The pronouncement is effective for annual reporting periods in fiscal years beginning after December 15, 2023, and for interim periods in fiscal years beginning after December 15, 2024. We do not expect the adoption of this pronouncement to impact our consolidated financial statements.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires enhanced annual income tax disclosures, primarily through changes to the ~~performance obligations may require significant judgment~~rate reconciliation and income taxes paid reconciliation. The pronouncement is ~~based on management’s estimate~~effective for annual reporting periods in fiscal years beginning after December 15, 2024. Early adoption and retrospective application are permitted. We do not expect the adoption of ~~the most likely amount of consideration we expect~~this pronouncement to ~~receive as of the reporting date.~~impact our consolidated financial statements.

Variable consideration is included in the transaction price only to the extent that it is probable that a significant reversal of the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The estimation of variable consideration requires us to make certain judgments and assumptions regarding the amount and timing of future payments, which may be impacted by factors such as changes in market conditions, competition or other factors beyond our control. As a result, actual amounts of variable consideration could differ from our estimates.

We regularly review our estimates of variable consideration and, if necessary, adjust the transaction price and related revenue recognition accordingly. Any such adjustments are recorded in the period in which the estimate is revised.

~~NEW ACCOUNTING STANDARDS~~

~~There have been no recently~~Recent accounting pronouncements adopted or pending ~~accounting pronouncements which~~adoption not discussed above are either not applicable or are not expected to have a material impact on our consolidated financial condition, results of operations, or cash flows.

~~Table of Contents~~

~~RAYONIER INC. AND SUBSIDIARIES~~

~~RAYONIER, L.P. AND SUBSIDIARIES~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

~~(Unaudited)~~

~~(Dollar amounts in thousands unless otherwise stated)~~

SUBSEQUENT EVENTS

~~Announcement~~We have evaluated events occurring from March 31, 2024 to the date of ~~Oregon Disposition~~

~~As disclosed in our Current Report on Form 8-K filed with the SEC on November 2, 2023, we entered into an agreement~~issuance of these Consolidated Financial Statements for ~~the sale of approximately 55,000 acres of timberland in Oregon to Manulife Investment Management on behalf of clients for $242 million (~$4,400 per acre). The transaction is expected to close~~potential recognition or disclosure in the ~~fourth quarter of 2023, and $150 million of the proceeds are expected to be used to repay the unhedged portion of our 2022 Incremental Term Loan borrowings.See~~ ~~Note 6 – Debt~~ ~~for additional information.~~

~~Defined Benefit Pension Plan Distributions~~

~~In connection with the termination of the Company’s Defined Benefit Plan (“the Plan”), payments~~consolidated financial statements. No events were disbursed to plan participants who chose the lump sum distribution option on October 31, 2023. The lump sum disbursements were sourced from Plan assets. We expect to make cash contributions to fund the Defined Benefit Plan on a plan termination basis in 2024. See ~~Note 15 – Employee Benefit Plans~~ ~~for additional information.~~identified that warranted recognition or disclosure.

2. SEGMENT AND GEOGRAPHICAL INFORMATION

Sales between operating segments are made based on estimated fair market value, and intercompany sales, purchases and profits (losses) are eliminated in consolidation. We evaluate financial performance based on segment operating income and Adjusted Earnings Before Interest, Taxes, Depreciation, Depletion and Amortization ~~(“Adjusted EBITDA”). Asset information is not reported by segment, as we do not produce asset information by segment internally.~~

Operating income as presented in the Consolidated Statements of Income and Comprehensive Income is equal to segment income. Certain income (loss) items in the Consolidated Statements of Income and Comprehensive Income are not allocated to segments. These items, which include interest expense, miscellaneous income (expense) and income tax benefit (expense), are not considered by management to be part of segment operations and are included under “unallocated interest expense and other.”

~~The following tables summarize the segment information for the three and nine months ended September 30, 2023 and 2022:~~

Three Months Ended September 30, Nine Months Ended September 30,
SALES 2023 2022 2023 2022
Southern Timber $63,973 $64,549 $204,125 $207,584
Pacific Northwest Timber 29,325 34,397 96,061 119,834
New Zealand Timber 70,435 72,452 175,438 202,723
Real Estate 31,175 12,435 79,492 81,032
Trading 6,782 11,582 34,767 52,727
Intersegment Eliminations (a) (111) (128) (357) (226)
Total $201,579 $195,287 $589,526 $663,674

~~(a)Primarily consists of log marketing fees paid to our Trading segment from our Southern Timber and Pacific Northwest Timber segments for marketing log export sales.~~

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RAYONIER INC. AND SUBSIDIARIES

RAYONIER, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

Three Months Ended September 30, Nine Months Ended September 30,
OPERATING INCOME 2023 2022 2023 2022
Southern Timber $18,634 $22,474 $62,565 $76,883
Pacific Northwest Timber (a) (557) 2,179 (6,475) 11,729
New Zealand Timber (b) 17,555 9,280 19,265 22,653
Real Estate (c) 9,187 15,749 18,720 36,953
Trading (52) 177 356 84
Corporate and Other (9,411) (8,956) (28,350) (26,613)
Total Operating Income 35,356 40,903 66,081 121,689
Unallocated interest expense and other (d) (12,069) (7,804) (15,030) (25,486)
Total Income before Income Taxes $23,287 $33,099 $51,051 $96,203
(“Adjusted EBITDA”). Asset information is not reported by segment, as we do not produce asset information by segment internally.

Operating income as presented in the Consolidated Statements of Income and Comprehensive Income (Loss) is equal to segment income. Certain income (loss) items in the Consolidated Statements of Income and Comprehensive Income (Loss) are not allocated to segments. These items, which include interest expense, interest and miscellaneous (expense) income and income tax benefit (expense), are not considered by management to be part of segment operations and are included under “unallocated interest expense and other.”

The following tables summarize the segment information for the three months ended March 31, 2024 and 2023:


	Three Months Ended March 31,
SALES		2024	2023
Southern Timber		$69,978	$71,842
Pacific Northwest Timber		25,192	34,419
New Zealand Timber		45,700	44,105

Real Estate		15,564	16,276
Trading		11,774	12,569

Intersegment Eliminations (a)		(111)	(129)
Total		$168,097	$179,082

(a)Primarily consists of log marketing fees paid to our Trading segment from our Southern Timber and Pacific Northwest Timber segments for marketing log export sales.


	Three Months Ended March 31,
OPERATING INCOME (LOSS)		2024	2023
Southern Timber		$23,005	$22,223
Pacific Northwest Timber		(4,360)	(3,543)
New Zealand Timber (a)		7,430	(663)

Real Estate		(128)	883
Trading		41	341

Corporate and Other		(9,778)	(8,619)
Total Operating Income		16,210	10,622
Unallocated interest expense and other (b)		(14,736)	(2,146)
Total Income before Income Taxes		$1,474	$8,476

(a)The three ~~and nine~~ months ended ~~September 30, 2022 include $1.1~~March 31, 2023 includes $2.3 million of timber write-offs resulting from casualty events. Timber write-offs resulting from casualty events are recorded within the Consolidated Statements of Income and Comprehensive Income (Loss) under the caption “Cost of Sales.”

(b)The ~~nine~~three months ended ~~September 30,~~March 31, 2024 includes $5.7 million of pension settlement charges and $1.3 million of net costs associated with legal settlements. The three months ended March 31, 2023 includes a $2.3 million timber write-off resulting from a casualty event. Timber write-offs resulting from casualty events are recorded within the Consolidated Statements of Income and Comprehensive Income under the caption “Cost of Sales.”

~~(c)~~The three and nine months ended September 30, 2022 include an $11.5 million gain associated with the multi-family apartment complex sale attributable to noncontrolling interests (“NCI”). The gain associated with the multi-family apartment complex sale attributable to noncontrolling interests are recorded within the Consolidated Statements of Income and Comprehensive Income under the caption “Other operating (expense) income, net.”

~~(d)The nine months ended September 30, 2023 includes $20.5~~$9.1 million of net recoveries associated with legal settlements.




		Three Months Ended September 30,		Nine Months Ended September 30,			Three Months Ended March 31,
DEPRECIATION, DEPLETION AND AMORTIZATION	DEPRECIATION, DEPLETION AND AMORTIZATION	2023	2022	2023	2022	DEPRECIATION, DEPLETION AND AMORTIZATION		2024	2023
Southern Timber	Southern Timber	$19,153	$14,116	$61,631	$46,832
Pacific Northwest Timber	Pacific Northwest Timber	8,330	9,356	28,221	35,587
New Zealand Timber	New Zealand Timber	5,952	6,302	16,335	18,192

Real Estate	Real Estate	3,088	961	6,826	12,671
Real Estate
Real Estate

Corporate and Other	Corporate and Other	444	316	1,268	939

Corporate and Other

Corporate and Other
Total	Total	$36,967	$31,051	$114,281	$114,221

Three Months Ended September 30, Nine Months Ended September 30,
NON-CASH COST OF LAND AND IMPROVED DEVELOPMENT 2023 2022 2023 2022
Real Estate $6,586 $3,149 $20,189 $20,289
Total $6,586 $3,149 $20,189 $20,289

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RAYONIER INC. AND SUBSIDIARIES

RAYONIER, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)


	Three Months Ended March 31,
NON-CASH COST OF LAND AND IMPROVED DEVELOPMENT		2024	2023




Real Estate		$2,953	$4,208


Total		$2,953	$4,208

3. REVENUE

PERFORMANCE OBLIGATIONS

We recognize revenue when control of promised goods or services (“performance obligations”) is transferred to customers, in an amount that reflects the consideration expected in exchange for those goods or services (“transaction price”). Unsatisfied performance obligations as of ~~September 30, 2023~~March 31, 2024 are primarily due to advances on stumpage contracts, unearned license revenue, unearned carbon capture and storage revenue and post-closing obligations on real estate sales. Of these performance obligations, ~~$23.8~~$20.9 million is expected to be recognized within the next twelve months, with the remaining ~~$11.3~~$15.3 million expected to be recognized thereafter as we satisfy our

~~Table of Contents~~

~~RAYONIER INC. AND SUBSIDIARIES~~

~~RAYONIER, L.P. AND SUBSIDIARIES~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

~~(Unaudited)~~

~~(Dollar amounts in thousands unless otherwise stated)~~

performance obligations. We generally collect payment within a year of satisfying performance obligations and therefore have elected not to adjust revenues for a financing component.

CONTRACT BALANCES

The timing of revenue recognition, invoicing and cash collections results in trade receivables and deferred revenue (contract liabilities) on the Consolidated Balance Sheets. Trade receivables are recorded when we have an unconditional right to consideration for completed performance under the contract. Contract liabilities relate to payments received in advance of performance under the contract. Contract liabilities are recognized as revenue as (or when) we perform under the contract.

The following table contains contract balances recorded in the Consolidated Balance Sheets at ~~September 30, 2023~~March 31, 2024 and December 31, ~~2022:~~2023:

September 30, 2023

December 31, 2022

Balance Sheet Location

March 31, 2024

December 31, 2023

Balance Sheet Location

Contract assets

Trade receivables, net (a)

$31,447

$27,837

Trade receivables

Trade receivables, net (a)

$35,309

$28,652

Trade receivables

Contract liabilities

Deferred revenue, current (b)

23,835

22,762

Deferred revenue

Deferred revenue, current (b)

20,900

19,012

Deferred revenue

Deferred revenue, non-current (c)

11,317

6,895

Long-term deferred revenue

Deferred revenue, non-current (c)

15,349

11,294

Long-term deferred revenue

(a)The increase in trade receivables was primarily driven by timing of sales in our timber segments.

(b)The increase in deferred revenue, current is driven by the ~~timing of renewals of hunting contracts and the~~ current portion of a carbon capture and storage contract entered into in the first quarter of ~~2023,~~2024, partially offset by the satisfaction of post-closing obligations on real estate sales and ~~stumpage~~the timing of renewals of hunting contracts.

(c)The increase in deferred revenue, non-current is primarily driven by a carbon capture and storage contract entered into in the first quarter of ~~2023.~~2024.

The following table summarizes revenue recognized during the three ~~and nine~~ months ended ~~September 30,~~March 31, 2024 and 2023 ~~and 2022~~ that was included in the contract liability balance at the beginning of each year:

Three Months Ended September 30, Nine Months Ended September 30,
2023 2022 2023 2022
Revenue recognized from contract liability balance at the beginning of the year (a) $2,216 $1,957 $19,950 $14,458


	Three Months Ended March 31,
		2024	2023
Revenue recognized from contract liability balance at the beginning of the year (a)		$10,235	$11,400

(a) Revenue recognized was primarily from hunting licenses, the use of advances on pay-as-cut timber sales and the satisfaction of post closing obligations on real estate sales.

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RAYONIER INC. AND SUBSIDIARIES

RAYONIER, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

The following tables present our revenue from contracts with customers disaggregated by product type for the three ~~and nine~~ months ended ~~September 30, 2023~~March 31, 2024 and ~~2022:~~2023:

Three Months Ended Southern Timber Pacific Northwest Timber New Zealand Timber Real Estate Trading Elim. Total
September 30, 2023
Pulpwood $25,514 $1,440 $6,507 — $447 — $33,908
Sawtimber 27,274 26,401 48,356 — 5,954 — 107,985
Hardwood 1,343 — — — — — 1,343
Total Timber Sales 54,131 27,841 54,863 — 6,401 — 143,236
License Revenue, Primarily from Hunting 7,178 439 90 — — — 7,707
Other Non-Timber/Carbon Revenue 2,664 1,045 15,482 — — — 19,191
Agency Fee Income — — — — 270 — 270
Total Non-Timber Sales 9,842 1,484 15,572 — 270 — 27,168
Improved Development — — — 3,120 — — 3,120
Unimproved Development — — — 114 — — 114
Rural — — — 20,461 — — 20,461
Timberland & Non-Strategic — — — 1,055 — — 1,055
Deferred Revenue/Other (a) — — — 5,981 — — 5,981
Total Real Estate Sales — — — 30,731 — — 30,731
Revenue from Contracts with Customers 63,973 29,325 70,435 30,731 6,671 — 201,135
Lease Revenue — — — 444 — — 444
Intersegment — — — — 111 (111) —
Total Revenue $63,973 $29,325 $70,435 $31,175 $6,782 ($111) $201,579
Three Months Ended Southern Timber Pacific Northwest Timber New Zealand Timber Real Estate Trading Elim. Total
September 30, 2022
Pulpwood $32,564 $2,989 $7,645 — $1,112 — $44,310
Sawtimber 20,943 29,630 58,412 — 10,053 — 119,038
Hardwood 4,221 — — — — — 4,221
Total Timber Sales 57,728 32,619 66,057 — 11,165 — 167,569
License Revenue, Primarily from Hunting 5,141 326 118 — — — 5,585
Other Non-Timber/Carbon Revenue 1,680 1,452 6,277 — — — 9,409
Agency Fee Income — — — — 289 — 289
Total Non-Timber Sales 6,821 1,778 6,395 — 289 — 15,283
Improved Development — — — 2,296 — — 2,296
Rural — — — 6,964 — — 6,964
Deferred Revenue/Other (a) — — — 2,769 — — 2,769
Total Real Estate Sales — — — 12,029 — — 12,029
Revenue from Contracts with Customers 64,549 34,397 72,452 12,029 11,454 — 194,881
Lease Revenue — — — 406 — — 406
Intersegment — — — — 128 (128) —
Total Revenue $64,549 $34,397 $72,452 $12,435 $11,582 ($128) $195,287


Three Months Ended	Southern Timber	Pacific Northwest Timber	New Zealand Timber	Real Estate	Trading	Elim.	Total
March 31, 2024
Pulpwood	$25,931	$1,551	$7,754	—	$1,138	—	$36,374
Sawtimber	33,740	22,677	34,405	—	10,195	—	101,017
Hardwood	1,195	—	—	—	—	—	1,195
Total Timber Sales	60,866	24,228	42,159	—	11,333	—	138,586
License Revenue, Primarily From Hunting	5,275	95	51	—	—	—	5,421
Land-Based Solutions (a)	1,710	—	—	—	—	—	1,710
Other Non-Timber/Carbon Credit Revenue	2,127	869	3,490	—	—	—	6,486
Agency Fee Income	—	—	—	—	330	—	330

Total Non-Timber Sales	9,112	964	3,541	—	330	—	13,947
Improved Development	—	—	—	1,825	—	—	1,825

Rural	—	—	—	8,728	—	—	8,728
Timberland & Non-Strategic	—	—	—	610	—	—	610

Deferred Revenue/Other (b)	—	—	—	4,112	—	—	4,112

Total Real Estate Sales	—	—	—	15,275	—	—	15,275

Revenue from Contracts with Customers	69,978	25,192	45,700	15,275	11,663	—	167,808
Lease Revenue	—	—	—	289	—	—	289
Intersegment	—	—	—	—	111	(111)	—
Total Revenue	$69,978	$25,192	$45,700	$15,564	$11,774	($111)	$168,097

Three Months Ended	Southern Timber	Pacific Northwest Timber	New Zealand Timber	Real Estate	Trading	Elim.	Total
March 31, 2023
Pulpwood	$26,783	$3,715	$6,081	—	$1,439	—	$38,018
Sawtimber	34,543	29,781	37,683	—	10,667	—	112,674
Hardwood	1,120	—	—	—	—	—	1,120
Total Timber Sales	62,446	33,496	43,764	—	12,106	—	151,812
License Revenue, Primarily from Hunting	5,222	136	55	—	—	—	5,413
Land-Based Solutions (a)	835	—	—	—	—	—	835
Other Non-Timber/Carbon Credit Revenue	3,339	787	286	—	—	—	4,412
Agency Fee Income	—	—	—	—	334	—	334

Total Non-Timber Sales	9,396	923	341	—	334	—	10,994
Improved Development	—	—	—	4,802	—	—	4,802

Rural	—	—	—	6,499	—	—	6,499
Timberland & Non-Strategic	—	—	—	1,637	—	—	1,637

Deferred Revenue/Other (b)	—	—	—	3,093	—	—	3,093

Total Real Estate Sales	—	—	—	16,031	—	—	16,031

Revenue from Contracts with Customers	71,842	34,419	44,105	16,031	12,440	—	178,837
Lease Revenue	—	—	—	245	—	—	245
Intersegment	—	—	—	—	129	(129)	—
Total Revenue	$71,842	$34,419	$44,105	$16,276	$12,569	($129)	$179,082

(a) Consists of sales from carbon capture and storage (“CCS”), solar and wind energy contracts.

(b) Includes deferred revenue adjustments, revenue true-ups and marketing fees related to Improved Development sales.

~~Table of Contents~~

~~RAYONIER INC. AND SUBSIDIARIES~~

~~RAYONIER, L.P. AND SUBSIDIARIES~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

~~(Unaudited)~~

~~(Dollar amounts in thousands unless otherwise stated)~~

Nine Months Ended Southern Timber Pacific Northwest Timber New Zealand Timber Real Estate Trading Elim. Total
September 30, 2023
Pulpwood $76,152 $7,358 $20,953 — $3,328 — $107,791
Sawtimber 95,663 83,963 137,868 — 30,130 — 347,624
Hardwood 3,169 — — — — — 3,169
Total Timber Sales 174,984 91,321 158,821 — 33,458 — 458,584
License Revenue, Primarily From Hunting 17,632 780 212 — — — 18,624
Other Non-Timber/Carbon Revenue 11,509 3,960 16,405 — — — 31,874
Agency Fee Income — — — — 952 — 952
Total Non-Timber Sales 29,141 4,740 16,617 — 952 — 51,450
Improved Development — — — 20,155 — — 20,155
Unimproved Development — — — 114 — — 114
Rural — — — 42,587 — — 42,587
Timberland & Non-Strategic — — — 2,947 — — 2,947
Deferred Revenue/Other (a) — — — 12,642 — — 12,642
Total Real Estate Sales — — — 78,445 — — 78,445
Revenue from Contracts with Customers 204,125 96,061 175,438 78,445 34,410 — 588,479
Lease Revenue — — — 1,047 — — 1,047
Intersegment — — — — 357 (357) —
Total Revenue $204,125 $96,061 $175,438 $79,492 $34,767 ($357) $589,526
Nine Months Ended Southern Timber Pacific Northwest Timber New Zealand Timber Real Estate Trading Elim. Total
September 30, 2022
Pulpwood $100,945 $9,478 $26,091 — $5,636 — $142,150
Sawtimber 70,203 106,155 164,759 — 45,910 — 387,027
Hardwood 15,776 — — — — — 15,776
Total Timber Sales 186,924 115,633 190,850 — 51,546 — 544,953
License Revenue, Primarily from Hunting 16,322 571 266 — — — 17,159
Other Non-Timber/Carbon Revenue 4,338 3,630 11,607 — — — 19,575
Agency Fee Income — — — — 955 — 955
Total Non-Timber Sales 20,660 4,201 11,873 — 955 — 37,689
Improved Development — — — 18,828 — — 18,828
Rural — — — 47,333 — — 47,333
Timberland & Non-Strategic — — — 11,400 — — 11,400
Deferred Revenue/Other (a) — — — 2,498 — — 2,498
Total Real Estate Sales — — — 80,059 — — 80,059
Revenue from Contracts with Customers 207,584 119,834 202,723 80,059 52,501 — 662,701
Lease Revenue — — — 973 — — 973
Intersegment — — — — 226 (226) —
Total Revenue $207,584 $119,834 $202,723 $81,032 $52,727 ($226) $663,674

~~(a) Includes deferred revenue adjustments, revenue true-ups and marketing fees related to Improved Development sales.~~

1813

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RAYONIER, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

The following tables present our timber sales disaggregated by contract type for the three ~~and nine~~ months ended ~~September 30, 2023~~March 31, 2024 and ~~2022:~~2023:

Three Months Ended Southern Timber Pacific Northwest Timber New Zealand Timber Trading Total
September 30, 2023
Stumpage Pay-as-Cut $25,454 — — — $25,454
Stumpage Lump Sum — 969 — — 969
Total Stumpage 25,454 969 — — 26,423
Delivered Wood (Domestic) 26,907 24,085 15,265 10 66,267
Delivered Wood (Export) 1,770 2,787 39,598 6,391 50,546
Total Delivered 28,677 26,872 54,863 6,401 116,813
Total Timber Sales $54,131 $27,841 $54,863 $6,401 $143,236
September 30, 2022
Stumpage Pay-as-Cut $21,111 — — — $21,111
Stumpage Lump Sum 288 121 — — 409
Total Stumpage 21,399 121 — — 21,520
Delivered Wood (Domestic) 33,010 30,837 18,825 260 82,932
Delivered Wood (Export) 3,319 1,661 47,232 10,905 63,117
Total Delivered 36,329 32,498 66,057 11,165 146,049
Total Timber Sales $57,728 $32,619 $66,057 $11,165 $167,569

~~Table of Contents~~

~~RAYONIER INC. AND SUBSIDIARIES~~

~~RAYONIER, L.P. AND SUBSIDIARIES~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

~~(Unaudited)~~

~~(Dollar amounts in thousands unless otherwise stated)~~


Nine Months Ended		Southern Timber	Pacific Northwest Timber	New Zealand Timber	Trading	Total
September 30, 2023
Three Months Ended
Three Months Ended
Three Months Ended							Southern Timber	Pacific Northwest Timber	New Zealand Timber	Trading	Total
March 31, 2024
Stumpage Pay-as-Cut
Stumpage Pay-as-Cut
Stumpage Pay-as-Cut	Stumpage Pay-as-Cut	$86,424	—	—	—	$86,424
Stumpage Lump Sum	Stumpage Lump Sum	387	1,592	—	—	1,979

Total Stumpage	Total Stumpage	86,811	1,592	—	—	88,403
Total Stumpage
Total Stumpage

Delivered Wood (Domestic)
Delivered Wood (Domestic)
Delivered Wood (Domestic)	Delivered Wood (Domestic)	81,757	80,249	39,419	501	201,926
Delivered Wood (Export)	Delivered Wood (Export)	6,416	9,480	119,402	32,957	168,255
Total Delivered	Total Delivered	88,173	89,729	158,821	33,458	370,181

Total Timber Sales	Total Timber Sales	$174,984	$91,321	$158,821	$33,458	$458,584
Total Timber Sales
Total Timber Sales

September 30, 2022
March 31, 2023
March 31, 2023
March 31, 2023
Stumpage Pay-as-Cut
Stumpage Pay-as-Cut
Stumpage Pay-as-Cut	Stumpage Pay-as-Cut	$78,643	—	—	—	$78,643
Stumpage Lump Sum	Stumpage Lump Sum	378	5,593	—	—	5,971

Total Stumpage	Total Stumpage	79,021	5,593	—	—	84,614
Total Stumpage
Total Stumpage

Delivered Wood (Domestic)
Delivered Wood (Domestic)
Delivered Wood (Domestic)	Delivered Wood (Domestic)	98,386	104,239	50,358	1,989	254,972
Delivered Wood (Export)	Delivered Wood (Export)	9,517	5,801	140,492	49,557	205,367
Total Delivered	Total Delivered	107,903	110,040	190,850	51,546	460,339

Total Timber Sales	Total Timber Sales	$186,924	$115,633	$190,850	$51,546	$544,953
Total Timber Sales
Total Timber Sales

2014

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RAYONIER INC. AND SUBSIDIARIES

RAYONIER, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

4. NONCONTROLLING INTERESTS

NONCONTROLLING INTERESTS IN CONSOLIDATED AFFILIATES

Matariki Forestry Group

We maintain a 77% controlling financial interest in Matariki Forestry Group (the “New Zealand subsidiary”), a joint venture that owns or leases approximately ~~419,000~~422,000 legal acres of New Zealand timberland. Accordingly, we consolidate the New Zealand subsidiary’s balance sheet and results of operations. Income attributable to the New Zealand subsidiary’s 23% noncontrolling interests is reflected as an adjustment to income in our Consolidated Statements of Income and Comprehensive Income (Loss) under the caption “Net income attributable to noncontrolling interests in consolidated affiliates.” Rayonier New Zealand Limited (“RNZ”), a wholly-owned subsidiary, serves as the manager of the New Zealand subsidiary.

NONCONTROLLING INTERESTS IN THE OPERATING PARTNERSHIP

Noncontrolling interests in the operating partnership relate to the third-party ownership of ~~Redeemable Operating Partnership Units.~~redeemable operating partnership units. Net income attributable to the noncontrolling interests in the operating partnership is computed by applying the weighted average ~~Redeemable Operating Partnership Units~~redeemable operating partnership units outstanding during the period as a percentage of the weighted average total units outstanding to the Operating Partnership’s net income for the period. If a noncontrolling unitholder redeems a unit for a registered common share of Rayonier or cash, the noncontrolling interests in the operating partnership will be reduced and the Company’s share in the ~~Operating Partnership~~operating partnership will be increased by the fair value of each security at the time of redemption.

The following table sets forth the Company’s noncontrolling interests in the operating partnership:

Three Months Ended September 30, Nine Months Ended
September 30,
2023 2022 2023 2022
Beginning noncontrolling interests in the operating partnership $77,532 $123,811 $105,763 $133,823
Adjustment of noncontrolling interests in the operating partnership (6,890) (23,363) (8,810) (32,131)
Conversions of Redeemable Operating Partnership Units to Common Shares (479) (3,696) (24,663) (3,842)
Net Income attributable to noncontrolling interests in the operating partnership 320 455 811 1,670
Other Comprehensive Income (Loss) attributable to noncontrolling interests in the operating partnership 36 (49) (1,016) (523)
Distributions to noncontrolling interests in the operating partnership (699) (915) (2,265) (2,754)
Total noncontrolling interests in the operating partnership $69,820 $96,243 $69,820 $96,243


	Three Months Ended March 31,
		2024	2023
Beginning noncontrolling interests in the operating partnership		$81,651	$105,763

Adjustment of noncontrolling interests in the operating partnership		291	2,376
Conversions of redeemable operating partnership units to common shares		(11,511)	(23,881)
Net income attributable to noncontrolling interests in the operating partnership		20	174
Other comprehensive loss attributable to noncontrolling interests in the operating partnership		(265)	(1,110)
Distributions to noncontrolling interests in the operating partnership		(597)	(861)
Total noncontrolling interests in the operating partnership		$69,589	$82,461

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

5. EARNINGS PER SHARE AND PER UNIT

Basic earnings per common share (“EPS”) is calculated by dividing net income attributable to Rayonier Inc. by the weighted average number of common shares outstanding. Diluted EPS is calculated by dividing net income attributable to Rayonier Inc., before net income attributable to noncontrolling interests in the operating partnership by the weighted average number of common shares outstanding adjusted to include the potentially dilutive effect of outstanding stock options, performance shares, restricted shares, restricted stock units and noncontrolling interests in operating partnership units.

The following table provides details of the calculations of basic and diluted earnings per common share of the Company:


		Three Months Ended September 30,		Nine Months Ended September 30,
			Three Months Ended March 31,
			Three Months Ended March 31,
			Three Months Ended March 31,
		2023	2022	2023	2022	2024	2023
Earnings per common share - basic	Earnings per common share - basic
Numerator:	Numerator:
Numerator:
Numerator:
Net Income
Net Income
Net Income	Net Income	$22,740	$31,861	$49,274	$88,147
Less: Net income attributable to noncontrolling interests in the operating partnership	Less: Net income attributable to noncontrolling interests in the operating partnership	(320)	(455)	(811)	(1,670)
Less: Net income attributable to noncontrolling interests in consolidated affiliates		(3,183)	(10,828)	(1,902)	(12,478)
Less: Net (income) loss attributable to noncontrolling interests in consolidated affiliates
Net income attributable to Rayonier Inc.	Net income attributable to Rayonier Inc.	$19,237	$20,578	$46,561	$73,999
Denominator:	Denominator:
Denominator for basic earnings per common share - weighted average shares
Denominator for basic earnings per common share - weighted average shares
Denominator for basic earnings per common share - weighted average shares	Denominator for basic earnings per common share - weighted average shares	148,274,209	146,370,340	147,959,983	146,022,718
Basic earnings per common share attributable to Rayonier Inc.:	Basic earnings per common share attributable to Rayonier Inc.:	$0.13	$0.14	$0.31	$0.51
Earnings per common share - diluted	Earnings per common share - diluted
Numerator:	Numerator:
Numerator:
Numerator:
Net Income	Net Income	$22,740	$31,861	$49,274	$88,147
Less: Net income attributable to noncontrolling interests in consolidated affiliates		(3,183)	(10,828)	(1,902)	(12,478)
Net Income
Net Income
Less: Net (income) loss attributable to noncontrolling interests in consolidated affiliates

Net income attributable to Rayonier Inc., before net income attributable to noncontrolling interests in the operating partnership
Net income attributable to Rayonier Inc., before net income attributable to noncontrolling interests in the operating partnership
Net income attributable to Rayonier Inc., before net income attributable to noncontrolling interests in the operating partnership	Net income attributable to Rayonier Inc., before net income attributable to noncontrolling interests in the operating partnership	$19,557	$21,033	$47,372	$75,669
Denominator:	Denominator:
Denominator for basic earnings per common share - weighted average shares	Denominator for basic earnings per common share - weighted average shares	148,274,209	146,370,340	147,959,983	146,022,718
Denominator for basic earnings per common share - weighted average shares
Denominator for basic earnings per common share - weighted average shares
Add: Dilutive effect of:	Add: Dilutive effect of:
Stock options
Stock options
Stock options	Stock options	—	3,271	629	6,200
Performance shares, restricted shares and restricted stock units	Performance shares, restricted shares and restricted stock units	299,613	620,316	394,006	693,954
Noncontrolling interests in operating partnership units	Noncontrolling interests in operating partnership units	2,462,431	3,238,962	2,676,911	3,288,409
Denominator for diluted earnings per common share - adjusted weighted average shares	Denominator for diluted earnings per common share - adjusted weighted average shares	151,036,253	150,232,889	151,031,529	150,011,281
Diluted earnings per common share attributable to Rayonier Inc.:	Diluted earnings per common share attributable to Rayonier Inc.:	$0.13	$0.14	$0.31	$0.50


		Three Months Ended March 31,
		Three Months Ended March 31,
		Three Months Ended March 31,
			2024			2024	2023
Anti-dilutive shares excluded from the computations of diluted earnings per common share:
Stock options, performance shares, restricted shares and restricted stock units
Stock options, performance shares, restricted shares and restricted stock units
Stock options, performance shares, restricted shares and restricted stock units

	Three Months Ended September 30,			Nine Months Ended September 30,
	2023	2022		2023	2022
Anti-dilutive shares excluded from the computations of diluted earnings per common share:
Stock options, performance shares, restricted shares and restricted stock units	164,521	126,132		156,835	78,634

Total	164,521	126,132		156,835	78,634

2216

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RAYONIER, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

Basic earnings per unit (“EPU”) is calculated by dividing net income available to unitholders of Rayonier, L.P. by the weighted average number of units outstanding. Diluted EPU is calculated by dividing net income available to unitholders of Rayonier, L.P. by the weighted average number of units outstanding adjusted to include the potentially dilutive effect of outstanding unit equivalents, including stock options, performance shares, restricted shares and restricted stock units

The following table provides details of the calculations of basic and diluted earnings per unit of the Operating Partnership:


		Three Months Ended September 30,		Nine Months Ended September 30,
			Three Months Ended March 31,
			Three Months Ended March 31,
			Three Months Ended March 31,
		2023	2022	2023	2022	2024	2023
Earnings per unit - basic	Earnings per unit - basic
Numerator:	Numerator:
Numerator:
Numerator:
Net Income	Net Income	$22,740	$31,861	$49,274	$88,147
Less: Net income attributable to noncontrolling interests in consolidated affiliates		(3,183)	(10,828)	(1,902)	(12,478)
Net Income
Net Income
Less: Net (income) loss attributable to noncontrolling interests in consolidated affiliates
Net income available to unitholders	Net income available to unitholders	$19,557	$21,033	$47,372	$75,669
Denominator:	Denominator:
Denominator for basic earnings per unit - weighted average units
Denominator for basic earnings per unit - weighted average units
Denominator for basic earnings per unit - weighted average units	Denominator for basic earnings per unit - weighted average units	150,736,640	149,609,302	150,636,894	149,311,127
Basic earnings per unit attributable to Rayonier, L.P.:	Basic earnings per unit attributable to Rayonier, L.P.:	$0.13	$0.14	$0.31	$0.51
Earnings per unit - diluted	Earnings per unit - diluted
Numerator:	Numerator:
Numerator:
Numerator:
Net Income	Net Income	$22,740	$31,861	$49,274	$88,147
Less: Net income attributable to noncontrolling interests in consolidated affiliates		(3,183)	(10,828)	(1,902)	(12,478)
Net Income
Net Income
Less: Net (income) loss attributable to noncontrolling interests in consolidated affiliates
Net income available to unitholders	Net income available to unitholders	$19,557	$21,033	$47,372	$75,669
Denominator:	Denominator:
Denominator for basic earnings per unit - weighted average units	Denominator for basic earnings per unit - weighted average units	150,736,640	149,609,302	150,636,894	149,311,127
Denominator for basic earnings per unit - weighted average units
Denominator for basic earnings per unit - weighted average units
Add: Dilutive effect of unit equivalents:	Add: Dilutive effect of unit equivalents:
Stock options
Stock options
Stock options	Stock options	—	3,271	629	6,200
Performance shares, restricted shares and restricted stock units	Performance shares, restricted shares and restricted stock units	299,613	620,316	394,006	693,954
Denominator for diluted earnings per unit - adjusted weighted average units	Denominator for diluted earnings per unit - adjusted weighted average units	151,036,253	150,232,889	151,031,529	150,011,281
Diluted earnings per unit attributable to Rayonier, L.P.:	Diluted earnings per unit attributable to Rayonier, L.P.:	$0.13	$0.14	$0.31	$0.50


		Three Months Ended March 31,
		Three Months Ended March 31,
		Three Months Ended March 31,
			2024			2024	2023
Anti-dilutive unit equivalents excluded from the computations of diluted earnings per unit:
Stock options, performance shares, restricted shares and restricted stock units
Stock options, performance shares, restricted shares and restricted stock units
Stock options, performance shares, restricted shares and restricted stock units

	Three Months Ended September 30,			Nine Months Ended September 30,
	2023	2022		2023	2022
Anti-dilutive unit equivalents excluded from the computations of diluted earnings per unit:
Stock options, performance shares, restricted shares and restricted stock units	164,521	126,132		156,835	78,634

Total	164,521	126,132		156,835	78,634

2317

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RAYONIER, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

6. DEBT

Our debt consisted of the following at ~~September 30, 2023:~~March 31, 2024:


			~~September 30, 2023~~March 31, 2024
Debt


Senior Notes due 2031 at a fixed interest rate of 2.75%			$450,000
2015 Term Loan borrowings due 2028 at a variable interest rate of ~~7.00%~~7.01%			350,000


2021 Incremental Term Loan borrowings due 2029 at a variable interest rate of 6.96%			200,000

2016 Incremental Term Loan borrowings due 2026 at a variable interest rate of 7.06%			200,000
2022 Incremental Term Loan borrowings due 2027 at a variable interest rate of ~~7.00%~~7.01%			~~250,000~~100,000
~~2016 Incremental Term Loan borrowings due 2026 at a variable interest rate of 7.05%~~			~~200,000~~


~~2021 Incremental Term Loan borrowings due 2029 at a variable interest rate of 6.95%~~			~~200,000~~

New Zealand subsidiary noncontrolling interests shareholder loan due 2026 at a fixed interest rate of 3.64% (a)			~~24,161~~24,040
New Zealand subsidiary noncontrolling interests shareholder loan due 2027 at a fixed interest rate of 6.48% (a)			~~24,161~~24,040
New Zealand subsidiary noncontrolling interests shareholder loan due 2025 at a fixed interest rate of 2.95% (a)			~~20,709~~20,605






Total principal debt			~~1,519,031~~1,368,685

Less: Unamortized discounts			~~(2,857)~~(2,688)

Less: Deferred financing costs			~~(4,704)~~(4,012)

















Total long-term debt			$~~1,511,470~~1,361,985

(a) Except for changes in the New Zealand foreign exchange rate, there have been no adjustments to the carrying value of the shareholder loans since inception.

The following table contains information on the outstanding variable rate debt as of ~~September 30, 2023:~~March 31, 2024:

Debt

Periodic Interest Rate (a)

Effective Fixed Interest Rate (b)

2015 Term Loan

Daily Simple SOFR + 1.70%

~~3.03~~3.01

2022 Incremental Term Loan

Daily Simple SOFR + 1.70%

~~5.53~~4.55

2016 Incremental Term Loan

Daily Simple SOFR + 1.75%

~~2.40~~2.38

2021 Incremental Term Loan

Daily Simple SOFR + 1.65%

~~1.46~~1.45

(a) Includes credit spread adjustment of 0.1%.

(b) Effective interest rate is after consideration of interest rate swaps and estimated ~~patronage refunds.~~patronage.

Principal payments due during the next five years and thereafter are as follows:


		Total
2023		—
		Total
		Total
		Total
2024
2024
2024	2024	—
2025	2025	20,709
2025
2025
2026
2026
2026	2026	224,161
2027	2027	274,161
2027
2027
2028
2028
2028
Thereafter
Thereafter
Thereafter	Thereafter	1,000,000
Total Debt	Total Debt	$1,519,031
Total Debt
Total Debt

2418

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RAYONIER, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

~~2023~~2024 DEBT ACTIVITY

U.S. Debt

During the ~~nine~~three months ended ~~September 30, 2023,~~March 31, 2024, we made no borrowings or repayments on our Revolving Credit Facility. At ~~September 30, 2023,~~March 31, 2024, we had available borrowings of ~~$296.2~~$293.0 million under the Revolving Credit Facility, net of ~~$3.8~~$7.0 million to secure our outstanding letters of credit.

~~See~~ ~~Note 1~~ ~~- Basis of Presentation~~ ~~for information regarding subsequent events related to our 2022 Incremental Term Loan borrowings.~~

New Zealand Debt

~~In July 2023, the New Zealand subsidiary renewed its NZ$20 million working capital facility, extending its maturity date to June 30, 2024.~~ During the ~~nine~~three months ended ~~September 30, 2023,~~March 31, 2024, the New Zealand subsidiary made no borrowings or repayments on its working capital facility (the “New Zealand Working Capital Facility”). At ~~September 30, 2023,~~March 31, 2024, the New Zealand subsidiary had NZ$20.0 million of available borrowings under its working capital facility.

DEBT COVENANTS

In connection with our 2015 Term Loan ~~Facility,~~Agreement, 2016 Incremental Term Loan ~~Facility,~~Agreement, 2021 Incremental Term Loan Agreement, 2022 Incremental Term Loan Agreement and Revolving Credit Facility, customary covenants must be met, the most significant of which include interest coverage and leverage ratios.

The covenants listed below, which are the most significant financial covenants in effect as of ~~September 30, 2023,~~March 31, 2024, are calculated on a trailing 12-month basis:


		Covenant Requirement		Actual Ratio		Favorable
	Covenant Requirement										Covenant Requirement			Actual Ratio			Favorable
Covenant EBITDA to consolidated interest expense should not be less than	Covenant EBITDA to consolidated interest expense should not be less than	2.5 to 1		6.9 to 1		4.4		Covenant EBITDA to consolidated interest expense should not be less than	2.5 to 1			11.7 to 1			9.2
Covenant debt to covenant net worth plus covenant debt shall not exceed	Covenant debt to covenant net worth plus covenant debt shall not exceed	65	%	46	%	19	%	Covenant debt to covenant net worth plus covenant debt shall not exceed	65	%		43	%		22	%

In addition to the financial covenants listed above, the Senior Notes due 2031, 2015 Term Loan ~~Facility,~~Agreement, 2016 Incremental Term Loan ~~Facility,~~Agreement, 2021 Incremental Term Loan Agreement, 2022 Incremental Term Loan Agreement, and Revolving Credit Facility include customary covenants that limit the incurrence of debt and the disposition of assets, among others. At ~~September 30, 2023,~~March 31, 2024, we were in compliance with all applicable covenants.

7. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

We are exposed to market risk related to potential fluctuations in foreign currency exchange rates and interest rates. We use derivative financial instruments to mitigate the financial impact of exposure to these risks.

Accounting for derivative financial instruments is governed by ASC Topic 815, Derivatives and Hedging, (“ASC 815”). In accordance with ASC 815, we record our derivative instruments at fair value as either assets or liabilities in the Consolidated Balance Sheets. Changes in the instruments’ fair value are accounted for based on their intended use. Gains and losses on derivatives that are designated and qualify for cash flow hedge accounting are recorded as a component of accumulated other comprehensive income (“AOCI”) and reclassified into earnings when the hedged transaction materializes. Gains and losses on derivatives that are designated and qualify for net investment hedge accounting are recorded as a component of AOCI and will not be reclassified into earnings until the investment is partially or completely liquidated. The changes in the fair value of derivatives not designated as hedging instruments and those which are no longer effective as hedging instruments, are recognized immediately in earnings.

FOREIGN CURRENCY EXCHANGE AND OPTION CONTRACTS

Our New Zealand subsidiary’s domestic sales and operating expenses are predominately denominated in New Zealand dollars, while its export sales, shareholder distributions and ocean freight payments are predominately denominated in U.S. dollars. To the extent New Zealand dollar costs exceed New Zealand dollar revenues (the

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~~(Dollar amounts in thousands unless otherwise stated)~~

~~“foreign~~ “foreign exchange exposure”), the New Zealand subsidiary manages the foreign exchange exposure through the use of derivative financial instruments. It typically hedges a portion of export sales receipts to cover 50% to 90% of the projected foreign exchange exposure for the following 12 months, up to 75% for the forward 12 to 18 months and up to 50% for the forward 18 to 24 months. Additionally, it will occasionally hedge export sales receipts to cover up to 50% of the foreign exchange exposure for the forward 24 to 36 months and up to 25% of the foreign exchange

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exposure for the forward 36 to 48 months when the the New Zealand dollar is at a cyclical low versus the U.S. dollar. The New Zealand subsidiary’s trading operations typically hedge a portion of export sales receipts to cover the projected foreign exchange exposure for the following three months. As of ~~September 30, 2023,~~March 31, 2024, foreign currency exchange contracts and foreign currency option contracts had maturity dates through ~~September 2026 and July 2026, respectively.~~March 2027.

Foreign currency exchange and option contracts hedging foreign currency risk qualify for cash flow hedge accounting. We may de-designate these cash flow hedge relationships in advance or at the occurrence of the forecasted transaction. The portion of gains or losses on the derivative instrument previously in AOCI for de-designated hedges remains in AOCI until the forecasted transaction affects earnings. Changes in the value of derivative instruments after de-designation are recorded in earnings.

INTEREST RATE PRODUCTS

We are exposed to cash flow interest rate risk on our variable-rate debt and on anticipated debt issuances. We use variable-to-fixed interest rate swaps and forward-starting interest rate swap agreements to hedge this exposure. For these derivative instruments, we report the gains/losses from the fluctuations in the fair market value of the hedges in AOCI and reclassify them to earnings as interest expense in the same period in which the hedged interest payments affect earnings.

To the extent we de-designate or terminate a cash flow hedging relationship and the associated hedged item continues to exist, any unrealized gain or loss of the cash flow hedge at the time of de-designation remains in AOCI and is amortized using the straight-line method through interest expense over the remaining life of the hedged item. To the extent the associated hedged item is no longer effective, the gain or loss is reclassified out of AOCI to earnings immediately.

INTEREST RATE SWAPS

The following table contains information on the outstanding interest rate swaps as of ~~September 30, 2023:~~March 31, 2024:


Outstanding Interest Rate Swaps (a)	Outstanding Interest Rate Swaps (a)										Outstanding Interest Rate Swaps (a)
Date Entered Into	Date Entered Into	Term	Notional Amount	Related Debt Facility	Fixed Rate of Swap		Bank Margin on Debt (b)		Total Effective Interest Rate (c)		Date Entered Into	Term	Notional Amount	Related Debt Facility		Fixed Rate of Swap		Bank Margin on Debt (b)		Total Effective Interest Rate (c)
August 2015	August 2015	9 years	$170,000	Term Credit Agreement	2.10	%	1.70	%	3.80	%	August 2015	9 years	$170,000	2015 Term Loan	2015 Term Loan	2.10	%	1.70	%	3.80	%
August 2015	August 2015	9 years	180,000	Term Credit Agreement	2.26	%	1.70	%	3.96	%	August 2015	9 years	180,000	2015 Term Loan	2015 Term Loan	2.26	%	1.70	%	3.96	%
April 2016	April 2016	10 years	100,000	Incremental Term Loan	1.50	%	1.75	%	3.25	%	April 2016	10 years	100,000	2016 Incremental Term Loan	2016 Incremental Term Loan	1.50	%	1.75	%	3.25	%
April 2016	April 2016	10 years	100,000	Incremental Term Loan	1.51	%	1.75	%	3.26	%	April 2016	10 years	100,000	2016 Incremental Term Loan	2016 Incremental Term Loan	1.51	%	1.75	%	3.26	%
May 2021	May 2021	7 years	200,000	2021 Incremental Term Loan Facility	0.67	%	1.65	%	2.32	%	May 2021	7 years	200,000	2021 Incremental Term Loan	2021 Incremental Term Loan	0.67	%	1.65	%	2.32	%
December 2022	December 2022	5 years	100,000	2022 Incremental Term Loan Facility	3.72	%	1.70	%	5.42	%	December 2022	5 years	100,000	2022 Incremental Term Loan	2022 Incremental Term Loan	3.72	%	1.70	%	5.42	%

(a)All interest rate swaps have been designated as interest rate cash flow hedges and qualify for hedge accounting.

(b)Includes the SOFR Credit Spread Adjustment component of 0.1%.

(c)Rate is before estimated patronage payments.

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FORWARD-STARTING INTEREST RATE SWAPS

In March 2023, we modified our benchmark rates from LIBOR to Daily Simple SOFR for our forward-starting interest rates swaps, resulting in slightly favorable fixed rates. In May 2023, we entered into a new $50 million

The following table contains information on the outstanding forward-starting interest rate ~~swap, benchmarked~~swaps as of March 31, 2024:

Outstanding Forward-Starting Interest Rate Swaps (a)

Date Entered Into

Term

Notional Amount

Fixed Rate of Swap

Related Debt Facility

Forward Date

Maximum Period Ending for Forecasted Issuance Date

April 2020

4 years

$100,000

0.78

2015 Term Loan

August 2024

N/A

May 2020

4 years

50,000

0.64

2015 Term Loan

August 2024

N/A

May 2023

4 years

50,000

3.29

2015 Term Loan

August 2024

N/A

(a)All forward-starting interest rate swaps have been designated as interest rate cash flow hedges and qualify for hedge accounting.

The following table demonstrates the impact, gross of tax, of our derivatives on the Consolidated Statements of Income and Comprehensive Income (Loss) for the three months ended March 31, 2024 and 2023:


		Three Months Ended March 31,
	Income Statement Location	2024	2023
Derivatives designated as cash flow hedges:
Foreign currency exchange contracts	Other comprehensive (loss) income	($5,490)	$3,813
	Other operating income (expense), net	459	(2,429)
Foreign currency option contracts	Other comprehensive (loss) income	(1,638)	(270)
	Other operating income (expense), net	8	—
Interest rate products	Other comprehensive (loss) income	15,041	(9,660)
	Interest expense, net	(7,278)	(3,463)

During the next 12 months, the amount of the March 31, 2024 AOCI balance, net of tax, expected to ~~Daily Simple SOFR.~~be reclassified into earnings is a gain of approximately $22.5 million. The following table contains details of the expected reclassified amounts into earnings:


			Amount expected to be reclassified into earnings in next 12 months

Derivatives designated as cash flow hedges:
Foreign currency exchange contracts			($1,034)
Foreign currency option contracts			(121)
Interest rate products (a)			23,625
Total estimated net gain on derivatives contracts			$22,470

(a) These reclassified amounts are expected to fully offset variable interest rate payments made to debt holders, resulting in no net impact on our earnings or cash flows.

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(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

~~The following table contains information on the outstanding forward-starting interest rate swaps as of September 30, 2023:~~

Outstanding Forward-Starting Interest Rate Swaps (a)
Date Entered Into Term Notional Amount Fixed Rate of Swap Related Debt Facility Forward Date Maximum Period Ending for Forecasted Issuance Date
April 2020 4 years $100,000 0.78 % Term Credit Agreement August 2024 N/A
May 2020 4 years 50,000 0.64 % Term Credit Agreement August 2024 N/A
May 2023 4 years 50,000 3.29 % Term Credit Agreement August 2024 N/A

~~(a)All forward-starting interest rate swaps have been designated as interest rate cash flow hedges and qualify for hedge accounting.~~

The following tables demonstrate the impact, gross of tax, of our derivatives on the Consolidated Statements of Income and Comprehensive Income for the three and nine months ended September 30, 2023 and 2022:

Three Months Ended
September 30,
Income Statement Location 2023 2022
Derivatives designated as cash flow hedges:
Foreign currency exchange contracts Other comprehensive income (loss) $1,752 ($4,464)
Other operating (expense) income, net (1,796) (2,669)
Foreign currency option contracts Other comprehensive income (loss) (26) (1,754)
Other operating (expense) income, net (196) —
Interest rate products Other comprehensive income (loss) 12,381 26,607
Interest expense, net (4,810) (62)

Nine Months Ended
September 30,
Income Statement Location 2023 2022
Derivatives designated as cash flow hedges:
Foreign currency exchange contracts Other comprehensive income (loss) $5,753 ($15,373)
Other operating (expense) income, net (5,801) (2,598)
Foreign currency option contracts Other comprehensive income (loss) (858) (2,304)
Other operating (expense) income, net (244) —
Interest rate products Other comprehensive income (loss) 20,416 76,372
Interest expense, net (12,587) 4,555

~~During the next 12 months, the amount of the September 30, 2023 AOCI balance, net of tax, expected to be reclassified into earnings is a gain of approximately $24.7 million. The following table contains details of the expected reclassified amounts into earnings:~~


			~~Amount expected to be reclassified into earnings in next 12 months~~

~~Derivatives designated as cash flow hedges:~~
~~Foreign currency exchange contracts~~			~~($2,763)~~
~~Foreign currency option contracts~~			~~(279)~~
~~Interest rate products (a)~~			~~27,734~~
~~Total estimated gain on derivatives contracts~~			~~$24,692~~

~~(a) These reclassified amounts are expected to fully offset variable interest rate payments made to debt holders, resulting in no net impact on our earnings or cash flows.~~

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~~(Unaudited)~~

~~(Dollar amounts in thousands unless otherwise stated)~~

The following table contains the notional amounts of the derivative financial instruments recorded in the Consolidated Balance Sheets:

Notional Amount

September 30, 2023

December 31, 2022

Notional Amount

March 31, 2024

Derivatives designated as cash flow hedges:

Foreign currency exchange contracts

$127,200

$138,250

Foreign currency exchange contracts

Foreign currency option contracts

86,000

78,000

Interest rate swaps

850,000

Interest rate swaps

Forward-starting interest rate swaps

200,000

150,000

The following table contains the fair values of the derivative financial instruments recorded in the Consolidated Balance Sheets at ~~September 30, 2023~~March 31, 2024 and December 31, ~~2022.~~2023. Changes in balances of derivative financial instruments are recorded as operating activities in the Consolidated Statements of Cash Flows:

Location on Balance Sheet

Fair Value Assets / (Liabilities) (a)

September 30, 2023

December 31, 2022

Location on Balance Sheet

Fair Value Assets / (Liabilities) (a)

March 31, 2024

December 31, 2023

Derivatives designated as cash flow hedges:

Foreign currency exchange contracts

Other current assets

$63

$25

Other assets

391

1,303

Other current liabilities

(3,900)

(5,457)

Other non-current liabilities

(1,139)

(410)

Foreign currency exchange contracts

Other assets

Other current liabilities

Other non-current liabilities

Foreign currency option contracts

Other current assets

Other assets

1,032

2,131

Other current liabilities

(464)

(347)

Other non-current liabilities

(1,179)

(1,281)

Other assets

Other current liabilities

Other non-current liabilities

Interest rate swaps

Other assets

62,520

60,843

Other assets

Other non-current liabilities

Forward-starting interest rate swaps

Other non-current liabilities

—

(51)

Forward-starting interest rate swaps

Other assets

17,501

11,939

Total derivative contracts:

Other current assets

$140

$91

Other current assets

Other assets

81,444

76,216

Total derivative assets

$81,584

$76,307

Other current liabilities

(4,364)

(5,804)

Other current liabilities

Other non-current liabilities

(2,318)

(1,742)

Total derivative liabilities

($6,682)

($7,546)

(a) See Note 8 — Fair Value Measurements for further information on the fair value of our derivatives including their classification within the fair value hierarchy.

OFFSETTING DERIVATIVES

Derivative financial instruments are presented at their gross fair values in the Consolidated Balance Sheets. Our derivative financial instruments are not subject to master netting arrangements, which would allow the right of offset.

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8. FAIR VALUE MEASUREMENTS

FAIR VALUE OF FINANCIAL INSTRUMENTS

A three-level hierarchy that prioritizes the inputs used to measure fair value was established in the Accounting Standards Codification as follows:

Level 1 — Quoted prices in active markets for identical assets or liabilities.

Level 2 — Observable inputs other than quoted prices included in Level 1.

Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The following table presents the carrying amount and estimated fair values of our financial instruments as of ~~September 30, 2023~~March 31, 2024 and December 31, ~~2022,~~2023, using market information and what we believe to be appropriate valuation methodologies under GAAP:


		September 30, 2023			December 31, 2022				March 31, 2024			December 31, 2023
Asset (Liability) (a)	Asset (Liability) (a)	Carrying Amount	Fair Value		Carrying Amount	Fair Value		Asset (Liability) (a)	Carrying Amount	Fair Value			Carrying Amount	Fair Value
			Level 1	Level 2		Level 1	Level 2			Level 1	Level 2			Level 1	Level 2
Cash and cash equivalents	Cash and cash equivalents	$107,784	$107,784	—	$114,255	$114,255	—

Restricted cash (b)	Restricted cash (b)	1,804	1,804	—	1,152	1,152	—

Restricted cash (b)

Restricted cash (b)

Long-term debt (c)

Long-term debt (c)

Long-term debt (c)	Long-term debt (c)	(1,511,470)	—	(1,422,224)	(1,514,721)	—	(1,438,736)

Interest rate swaps (d)	Interest rate swaps (d)	62,520	—	62,520	60,792	—	60,792
Interest rate swaps (d)
Interest rate swaps (d)

Forward-starting interest rate swaps (d)
Forward-starting interest rate swaps (d)
Forward-starting interest rate swaps (d)	Forward-starting interest rate swaps (d)	17,501	—	17,501	11,939	—	11,939
Foreign currency exchange contracts (d)	Foreign currency exchange contracts (d)	(4,585)	—	(4,585)	(4,539)	—	(4,539)
Foreign currency option contracts (d)	Foreign currency option contracts (d)	(534)	—	(534)	569	—	569

Noncontrolling interests in the operating partnership (e)	Noncontrolling interests in the operating partnership (e)	69,820	—	69,820	105,763	—	105,763

Noncontrolling interests in the operating partnership (e)

Noncontrolling interests in the operating partnership (e)

(a)We did not have Level 3 assets or liabilities at ~~September 30, 2023~~March 31, 2024 and December 31, ~~2022.~~2023.

(b)Restricted cash represents proceeds from like-kind exchange sales deposited with a third-party intermediary and cash held in escrow. See Note 18 — Restricted Cash for additional information.

(c)The carrying amount of long-term debt is presented net of deferred financing costs and unamortized discounts on non-revolving debt. See Note 6 — Debt for additional information.

(d)See Note 7 — Derivative Financial Instruments and Hedging Activities for information regarding the Consolidated Balance Sheets classification of our derivative financial instruments.

(e)Noncontrolling interests in the operating partnership is neither an asset nor liability and is classified as temporary equity in the Company’s Consolidated Balance Sheets. This relates to the ownership of Rayonier, L.P. units by various individuals and entities other than the Company. See Note 4 — Noncontrolling Interests for additional information.

We use the following methods and assumptions in estimating the fair value of our financial instruments:

Cash and cash equivalents and Restricted cash — The carrying amount is equal to fair market value.

Debt — The fair value of fixed rate debt is based upon quoted market prices for debt with similar terms and maturities. The variable rate debt adjusts with changes in the market rate, therefore the carrying value approximates fair value.

Interest rate swap agreements — The fair value of interest rate contracts is determined by discounting the expected future cash flows, for each instrument, at prevailing interest rates.

Foreign currency exchange contracts — The fair value of foreign currency exchange contracts is determined by a mark-to-market valuation, which estimates fair value by discounting the difference between the contracted forward price and the current forward price for the residual maturity of the contract using a risk-free interest rate.

Foreign currency option contracts — The fair value of foreign currency option contracts is based on a mark-to-market calculation using the Black-Scholes option pricing model.

Noncontrolling interests in the operating partnership — The fair value of noncontrolling interests in the operating partnership is determined based on the period-end closing price of Rayonier Inc. common shares.

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(Dollar amounts in thousands unless otherwise stated)

9. CONTINGENCIES

We have been named as a defendant in various lawsuits and claims arising in the normal course of business. While we have procured reasonable and customary insurance covering risks normally occurring in connection with our businesses, we have in certain cases retained some risk through the operation of large deductible insurance plans, primarily in the areas of executive risk, property, automobile and general liability. These pending lawsuits and claims, either individually or in the aggregate, are not expected to have a material adverse effect on our financial position, results of operations, or cash flow.

10. ENVIRONMENTAL AND NATURAL RESOURCE DAMAGE LIABILITIES

Various federal and state environmental laws in the states in which we operate place cleanup or restoration liability on the current and former owners of affected real estate. These laws are often a source of “strict liability,” meaning that an owner or operator need not necessarily have caused, or even been aware of, the release of contaminated materials. Similarly, there are certain environmental laws that allow state, federal, and tribal trustees (collectively, the “Trustees”) to bring suit against property owners to recover damage for injuries to natural resources. Like the liability that attaches to current property owners in the cleanup context, liability for natural resource damages (“NRD”) can attach to a property simply because an injury to natural resources resulted from releases of contaminated materials on or from the owner’s property, regardless of culpability for the release.

Changes in environmental and NRD liabilities from December 31, ~~2022~~2023 to ~~September 30, 2023~~March 31, 2024 are shown below:


			Port Gamble, WA






Non-current portion at December 31, ~~2022~~2023			$~~14,418~~4,785
Plus: Current portion			~~1,175~~11,793
Total Balance at December 31, ~~2022~~2023			~~15,593~~16,578
Expenditures charged to liabilities			~~(304)~~(171)
Increase to liabilities (a)			~~411~~2,667
Total Balance at ~~September 30, 2023~~March 31, 2024			~~15,700~~19,074
Less: Current portion			~~(6,689)~~(14,414)
Non-current portion at ~~September 30, 2023~~March 31, 2024			$~~9,011~~4,660

(a)~~Reflects~~The increase in liabilities reflects revised environmental and NRD cost estimates recorded during the ~~nine~~three months ended ~~September 30, 2023.~~March 31, 2024.

It is expected that the upland mill site cleanup and NRD restoration will occur over the next one to two years, while the monitoring of Port Gamble Bay, mill site, and landfills will continue for an additional 15 to 20 years. NRD costs are subject to change as the scope of the restoration projects become more clearly defined. It is reasonably possible that these components of the liability may increase as the project progresses. Management continues to monitor the Port Gamble cleanup process and will make adjustments as needed. Should any future circumstances result in a change to the estimated cost of the project, we will record an appropriate adjustment to the liability in the period it becomes known and when we can reasonably estimate the amount. ~~For further information on the timing and amount of future payments related to our environmental remediation liabilities, see Note 10 -~~ ~~Commitments~~ ~~in our 2022 Form 10-K.~~

We do not currently anticipate any material loss in excess of the amounts accrued; however, we are not able to estimate a possible loss or range of loss, if any, in excess of the established liabilities. Our future remediation expenses may be affected by a number of uncertainties including, but not limited to, the difficulty in estimating the extent and method of remediation, the evolving nature of environmental regulations, and the availability and application of technology. We do not expect the resolution of such uncertainties to have a material adverse effect on our consolidated financial position or liquidity.

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(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

11. GUARANTEES

We provide financial guarantees as required by creditors, insurance programs, and various governmental agencies.

As of ~~September 30, 2023,~~March 31, 2024, the following financial guarantees were outstanding:

Financial Commitments (a)

Maximum Potential
Payment

Standby letters of credit (b)

$~~3,779~~6,996

Surety bonds (c)

~~23,605~~9,985

Total financial commitments

$~~27,384~~16,981

(a)We have not recorded any liabilities for these financial commitments in our Consolidated Balance Sheets. The guarantees are not subject to measurement as the guarantees are dependent on our own performance.

(b)Approximately ~~$2.9~~$6.3 million of the standby letters of credit serve as credit support for real estate construction in our Wildlight development project. The remaining letters of credit support various insurance related ~~agreements, primarily workers’ compensation.~~agreements. These letters of credit will expire at various dates during ~~2023 and~~ 2024 and will be renewed as required.

(c)Surety bonds are issued primarily to secure performance obligations related to various operational activities and to provide collateral for our Wildlight development project in Nassau County, Florida and our Heartwood development project in Richmond Hill, Georgia. These surety bonds expire at various dates during ~~2023,~~ 2024, 2025, and ~~2025~~2026 and are expected to be renewed as required.

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(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

12. HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS

We routinely assess potential alternative uses of our timberlands, as some properties may become more valuable for development, residential, recreation or other purposes. We periodically transfer, via a sale or contribution from the real estate investment trust (“REIT”) entities to taxable REIT subsidiaries (“TRS”), higher and better use (“HBU”) timberlands to enable land-use entitlement, development or marketing activities. We also acquire HBU properties in connection with timberland acquisitions. These properties are managed as timberlands until sold or developed. While the majority of HBU sales involve rural and recreational land, we also selectively pursue various land-use entitlements on certain properties for residential, commercial and industrial development in order to enhance the long-term value of such properties. For selected development properties, we also invest in targeted infrastructure improvements, such as roadways and utilities, to accelerate the marketability and improve the value of such properties.

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~~(Unaudited)~~

~~(Dollar amounts in thousands unless otherwise stated)~~

Changes in higher and better use timberlands and real estate development investments from December 31, ~~2022~~2023 to ~~September 30, 2023~~March 31, 2024 are shown below:


	Higher and Better Use Timberlands and Real Estate Development Investments						Higher and Better Use Timberlands and Real Estate Development Investments
		Higher and Better Use Timberlands and Real Estate Development Investments			Land and Timber	Development Investments		Total
		Land and Timber	Development Investments	Total
Non-current portion at December 31, 2022		$91,374	$23,723	$115,097
Non-current portion at December 31, 2023
Plus: Current portion (a)	Plus: Current portion (a)	408	17,501	17,909
Total Balance at December 31, 2022		91,782	41,224	133,006
Total Balance at December 31, 2023
Non-cash cost of land and improved development	Non-cash cost of land and improved development	(1,998)	(13,711)	(15,709)
Amortization of parcel real estate development investments	Amortization of parcel real estate development investments	—	(7,689)	(7,689)
Timber depletion from harvesting activities and basis of timber sold in real estate sales	Timber depletion from harvesting activities and basis of timber sold in real estate sales	(1,556)	—	(1,556)
Capitalized real estate development investments (b)	Capitalized real estate development investments (b)	—	24,038	24,038
Capital expenditures (silviculture)	Capital expenditures (silviculture)	23	—	23

Intersegment transfers	Intersegment transfers	554	—	554
Intersegment transfers
Intersegment transfers

Total Balance at September 30, 2023		88,805	43,862	132,667
Total Balance at March 31, 2024
Total Balance at March 31, 2024
Total Balance at March 31, 2024
Less: Current portion (a)	Less: Current portion (a)	(1,601)	(24,409)	(26,010)
Non-current portion at September 30, 2023		$87,204	$19,453	$106,657
Non-current portion at March 31, 2024

(a)The current portion of Higher and Better Use Timberlands and Real Estate Development Investments is recorded in Inventory. See Note 13 — Inventory for additional information.

(b)Capitalized real estate development investments include ~~$0.6~~$0.3 million of capitalized interest and ~~$5.3~~$2.4 million of parcel real estate development investments. Parcel real estate development investments represent investments made for specific lots and/or commercial parcels that are currently under contract or expected to be ready for market within aone year.

13. INVENTORY

As of ~~September 30, 2023~~March 31, 2024 and December 31, ~~2022,~~2023, our inventory consisted entirely of finished goods, as follows:

September 30, 2023

December 31, 2022

March 31, 2024

December 31, 2023

Finished goods inventory

Real estate inventory (a)

$26,010

$17,909

Real estate inventory (a)

Log inventory

6,831

5,347

Carbon unit inventory (b)

298

473

Total inventory

$33,139

$23,729

(a)Represents the cost of HBU real estate (including capitalized development investments) under contract to be sold as well as the cost of HBU real estate deferred until post-closing obligations are satisfied. See Note 12 — Higher And Better Use Timberlands and Real Estate Development Investments for additional information.

(b)Represents the basis in New Zealand carbon units intended to be sold in the next 12 months.

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RAYONIER, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

14. OTHER OPERATING INCOME (EXPENSE) ~~INCOME,~~, NET

Other operating income (expense) ~~income,~~, net consisted of the following:

Three Months Ended September 30, Nine Months Ended September 30,
2023 2022 2023 2022
Loss on foreign currency remeasurement, net of cash flow hedges ($1,555) ($1,158) ($5,713) ($481)
Gain on sale or disposal of property and equipment — 9 37 40
Equity income related to Bainbridge Landing LLC joint venture (a) — 15,848 — 15,477
Miscellaneous (expense) income, net (99) (118) 105 (638)
Total ($1,654) $14,581 ($5,571) $14,398


	Three Months Ended March 31,
		2024	2023
Gain (loss) on foreign currency remeasurement, net of cash flow hedges		$242	($2,484)
Gain on sale or disposal of property and equipment		10	2






Miscellaneous income (expense), net		19	(34)
Total		$271	($2,516)

~~(a)~~

The three and nine months ended September 30, 2022 include $16.0 million of equity income from the sale of a multi-family apartment complex in Bainbridge Island, Washington. As the equity investment was co-owned with outside investors, $4.5 million of the equity income was attributable to Rayonier.

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RAYONIER INC. AND SUBSIDIARIES

RAYONIER, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

15. EMPLOYEE BENEFIT PLANS

We have one qualified non-contributory defined benefit pension plan covering a portion of our employees and an unfunded plan that provides benefits in excess of amounts allowable under current tax law in the qualified plans. We closed enrollment in the pension plans to salaried employees hired after December 31, 2005. Effective December 31, 2016, we froze benefits for all employees participating in the pension plan. In lieu of the pension plan, we provide those employees with an enhanced 401(k) plan match similar to what is currently provided to employees hired after December 31, 2005. Employee benefit plan liabilities are calculated using actuarial estimates and management assumptions. These estimates are based on historical information, along with certain assumptions about future events. Changes in assumptions, as well as changes in actual experience, could cause the estimates to change.

In December 2022, the Rayonier Board of Directors approved the resolution to terminate the Defined Benefit Plan and notified impacted parties of the termination and alternative distribution options. The Defined Benefit Plan was terminated on February 28, 2023. On July 20, 2023, the Rayonier Board of Directors approved the resolution to terminate the unfunded plan and will distribute all benefits in accordance with Section 409A of the Internal Revenue Code. The unfunded plan was terminated on July 31, 2023. ~~We expect~~In the fourth quarter of 2023, distributions were made to ~~recognize pre-tax non-cash pension settlement charges related to~~settle the ~~actuarial losses currently~~obligation with participants in ~~AOCI upon settlement of the obligations of~~ the Defined Benefit ~~and Excess~~Plan electing the lump sum distribution option. In March 2024, the remaining Defined Benefit ~~Plans. These charges are currently expected to occur in 2023 and 2024,~~Plan liability was settled with the ~~specific timing and final amounts dependent upon several factors.~~

purchase of annuity contracts from a third-party insurance company. We ~~expect to make~~made a cash ~~contributions~~contribution of ~~approximately $7.6~~$2.7 million during the settlement process in order to fund the Defined Benefit Plan on a plan termination basis. We recognized a pre-tax non-cash pension settlement charge of $5.7 million related to the actuarial losses in AOCI.

The Defined Benefit Plan will be settled upon completion of lump sum distributions and purchase of annuity contracts. The settlement is expected to be completed by the end of Q2 2024. The Excess Benefit Planunfunded plan will be settled entirely with lump sum cash payments ~~with~~estimated at $1.2 million. We expect to recognize additional pre-tax non-cash pension settlement charges related to the actuarial losses currently in AOCI upon settlement of the remaining obligations of the unfunded plan. These payments and charges are currently expected ~~cash contributions~~to occur in 2024, ~~of approximately $1.3 million.~~with the specific timing and final amounts dependent upon several factors. Projected cash contributions are an estimate, as actual amounts ~~will be~~and timing are dependent upon ~~the nature and timing of participant settlements and interest rates, as well as prevailing market conditions.~~several factors. See Note ~~1 – Basis of Presentation~~17 - Accumulated Other Comprehensive Income for ~~information regarding subsequent events related to the Defined Benefit Pension Plan.~~additional information.

The net pension and postretirement benefit ~~(credits)~~(credit) costs that have been recorded are shown in the following table:

Components of Net Periodic Benefit (Credit) Cost Income Statement Location Pension Postretirement
Three Months Ended
September 30, Three Months Ended
September 30,
2023 2022 2023 2022
Service cost Selling and general expenses — — $1 $2
Interest cost Interest and other miscellaneous income, net 844 609 17 13
Expected return on plan assets (a) Interest and other miscellaneous income, net (887) (872) — —
Amortization of losses Interest and other miscellaneous income, net 1 184 — 4
Net periodic benefit (credit) cost ($42) ($79) $18 $19


Components of Net Periodic Benefit (Credit) Cost	Components of Net Periodic Benefit (Credit) Cost	Income Statement Location	Pension		Postretirement		Components of Net Periodic Benefit (Credit) Cost	Income Statement Location	Pension		Postretirement
			Nine Months Ended September 30,		Nine Months Ended September 30,				Three Months Ended March 31,		Three Months Ended March 31,
			2023	2022	2023	2022			2024	2023		2024	2023
Service cost	Service cost	Selling and general expenses	—	—	$3	$5
Interest cost	Interest cost	Interest and other miscellaneous income, net	2,533	1,826	52	39
Expected return on plan assets (a)	Expected return on plan assets (a)	Interest and other miscellaneous income, net	(2,663)	(2,615)	—	—

Amortization of losses	Amortization of losses	Interest and other miscellaneous income, net	4	553	—	11

Pension settlement loss
Net periodic benefit (credit) cost	Net periodic benefit (credit) cost		($126)	($236)	$55	$55

(a)~~The~~Prior to remeasurement of the Defined Benefit Plan due to the pension settlement, the weighted-average expected long-term rate of return on plan assets used in computing ~~2023~~2024 net periodic benefit cost for benefits was 5.0%. Following the pension settlement, the expected long-term rate of return on plan assets used in computing 2024 net periodic benefit cost for pension ~~benefit~~sbenefits is ~~5.0%~~3.1%.

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RAYONIER INC. AND SUBSIDIARIES

RAYONIER, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

16. INCOME TAXES

Rayonier is a REIT under the Internal Revenue Code and therefore generally does not pay U.S. federal or state income tax. As of ~~September 30, 2023,~~March 31, 2024, Rayonier owns a ~~98.4%~~98.6% interest in the Operating Partnership and conducts substantially all of its timberland operations through the Operating Partnership. The taxable income or loss generated by the Operating Partnership is passed through and reported to its unit holders (including the Company) on a Schedule K-1 for inclusion in each unitholder’s income tax return.

Certain operations, including log trading and certain real estate activities, such as the entitlement, development and sale of HBU properties, are conducted through our TRS. The TRS subsidiaries are subject to United States federal and state corporate income tax. The New Zealand timber operations are conducted by the New Zealand subsidiary, which is subject to corporate-level tax at 28% in New Zealand and is treated as a partnership for U.S. income tax purposes.

PROVISION FOR INCOME TAXES

The Company’s tax expense is principally related to corporate-level tax in New Zealand and non-resident withholding tax on repatriation of earnings from New Zealand. The following table contains the income tax expense recognized on the Consolidated Statements of Income and Comprehensive ~~Income:~~Income (Loss):

Three Months Ended
September 30, Nine Months Ended
September 30,
2023 2022 2023 2022
Income tax expense ($547) ($1,238) ($1,777) ($8,056)


	Three Months Ended March 31,
		2024	2023
Income tax benefit (expense) (a)		$832	($1,039)

(a)The three months ended March 31, 2024 includes a $1.2 million income tax benefit related to the pension settlement.

ANNUAL EFFECTIVE TAX RATE

The Company’s effective tax rate after discrete items is below the 21.0% U.S. statutory rate due to tax benefits associated with being a REIT. The following table contains the Company’s annualized effective tax rate after discrete items:

Nine Months Ended
September 30,
2023 2022
Annualized effective tax rate after discrete items 3.1 % 7.9 %


	Three Months Ended March 31,
		2024		2023
Annualized effective tax rate after discrete items		9.8	%	7.9	%

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RAYONIER INC. AND SUBSIDIARIES

RAYONIER, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

17. ACCUMULATED OTHER COMPREHENSIVE INCOME ~~(LOSS)~~

The following table summarizes the changes in AOCI by component for the ~~nine~~three months ended ~~September 30, 2023~~March 31, 2024 and the year ended December 31, ~~2022.~~2023. All amounts are presented net of tax and exclude portions attributable to noncontrolling interests.

Foreign currency translation (loss) gains Net investment hedges of New Zealand subsidiary Cash flow hedges Employee benefit plans Total Rayonier, L.P. Allocation to Operating Partnership Total Rayonier Inc.
Balance as of December 31, 2021 $4,215 $1,321 ($9,163) ($11,836) ($15,463) ($4,141) ($19,604)
Other comprehensive income (loss) before reclassifications (22,282) — 78,166 (a) 874 56,758 (1,323) 55,435
Amounts reclassified from accumulated other comprehensive income (loss) — — (1,799) 753 (b) (1,046) 1,028 (18)
Net other comprehensive income (loss) (22,282) — 76,367 1,627 55,712 (295) 55,417
Balance as of December 31, 2022 ($18,067) $1,321 $67,204 ($10,209) $40,249 ($4,436) $35,813
Other comprehensive income (loss) before reclassifications (16,522) — 23,131 (a) — 6,609 (62) 6,547
Amounts reclassified from accumulated other comprehensive income — — (15,938) 4 (b) (15,934) 1,078 (14,856)
Net other comprehensive income (loss) (16,522) — 7,193 4 (9,325) 1,016 (8,309)
Balance as of
September 30, 2023
($34,589) $1,321 $74,397 ($10,205) $30,924 ($3,420) $27,504


	Foreign currency translation (losses) gains	Net investment hedges of New Zealand subsidiary	Cash flow hedges		Employee benefit plans		Total Rayonier, L.P.	Allocation of Operating Partnership	Total Rayonier Inc.
Balance as of December 31, 2022	($18,067)	$1,321	$67,204		($10,209)		$40,249	($4,436)	$35,813
Other comprehensive (loss) income before reclassifications	(1,466)	—	10,537	(a)	(1,449)		7,622	(75)	7,547
Amounts reclassified from accumulated other comprehensive income	—	—	(21,895)		2,042	(b)	(19,853)	1,144	(18,709)
Net other comprehensive (loss) Income	(1,466)	—	(11,358)		593		(12,231)	1,069	(11,162)
Balance as of December 31, 2023	($19,533)	$1,321	$55,846		($9,616)		$28,018	($3,367)	$24,651
Other comprehensive (loss) income before reclassifications	(16,178)	—	11,090	(a)	5,110		22	—	22
Amounts reclassified from accumulated other comprehensive income	—	—	(7,020)		4,452	(b)	(2,568)	265	(2,303)
Net other comprehensive (loss) income	(16,178)	—	4,070		9,562		(2,546)	265	(2,281)
Balance as of March 31, 2024	($35,711)	$1,321	$59,916		($54)		$25,472	($3,102)	$22,370

(a)The ~~nine~~three months ended ~~September 30, 2023~~March 31, 2024 includes $~~20.4~~15.0 million of other comprehensive income related to interest rate products. The year ended December 31, ~~2022~~2023 included ~~$75.0~~$10.3 million of other comprehensive income related to interest rate products. See Note 7 — Derivative Financial Instruments and Hedging Activities for additional information.

(b)This component of other comprehensive income is included in the computation of net periodic pension and post-retirement costs. The three months ended March 31, 2024 includes a pension settlement charge of $4.5 million, net of tax of $1.2 million. The year ended December 31, 2023 includes a $2.0 million pension settlement charge. See Note 15 — Employee Benefit Plans for additional information.

The following table presents details of the amounts reclassified in their entirety from AOCI to net income for the ~~nine~~three months ended ~~September 30, 2023~~March 31, 2024 and ~~September 30, 2022:~~March 31, 2023:
Details about accumulated other comprehensive income (loss) components Amount reclassified from accumulated other comprehensive income (loss) Affected line item in the Income Statement
September 30, 2023 September 30, 2022
Realized gain on foreign currency exchange contracts ($5,801) ($2,598) Other operating expense (income), net
Realized gain on foreign currency option contracts (244) — Other operating expense (income), net
Noncontrolling interests 1,391 598 Comprehensive income attributable to noncontrolling interests
Realized (gain) loss on interest rate contracts (12,587) 4,555 Interest expense, net
Income tax effect from net gain on foreign currency contracts 1,303 560 Income tax expense
Net (gain) loss on cash flow hedges reclassified from accumulated other comprehensive income ($15,938) $3,115


Details about accumulated other comprehensive income components	Amount reclassified from accumulated other comprehensive income		Affected line item in the Income Statement
	March 31, 2024	March 31, 2023
Realized loss (gain) on foreign currency exchange contracts	$459	($2,429)	Other operating income (expense), net
Realized loss on foreign currency option contracts	8	—	Other operating income (expense), net
Noncontrolling interests	(108)	559	Comprehensive loss attributable to noncontrolling interests
Realized gain on interest rate contracts	(7,278)	(3,463)	Interest expense, net
Income tax effect from net (loss) gain on foreign currency contracts	(101)	525	Income tax benefit (expense)


Net gain on cash flow hedges reclassified from accumulated other comprehensive income	($7,020)	($4,808)

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RAYONIER INC. AND SUBSIDIARIES

RAYONIER, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

18. RESTRICTED CASH

Restricted cash ~~excluding Timber Funds~~ includes cash deposited with a like-kind exchange (“LKE”) intermediary. In order to qualify for LKE treatment, the proceeds from real estate sales must be deposited with a third-party intermediary. These proceeds are accounted for as restricted cash until a suitable replacement property is acquired. In the event LKE purchases are not completed, the proceeds are returned to the Company after 180 days and reclassified as available cash. Additionally, restricted cash ~~excluding Timber Funds,~~ includes cash balances held in escrow as collateral for certain contractual obligations related to our Heartwood development project as well as cash held in escrow for real estate sales.

~~Restricted cash, Timber Funds includes the portion of proceeds from Fund II Timberland Dispositions required to be distributed to noncontrolling interests.~~

The following table provides a reconciliation of cash, cash equivalents and restricted cash in the Consolidated Balance Sheets that sum to the total of the same such amounts in the Consolidated Statements of Cash Flows for the ~~nine~~three months ended ~~September 30, 2023~~March 31, 2024 and ~~2022:~~2023:


	Three Months Ended March 31,					Three Months Ended March 31,
				2024	2023
		Nine Months Ended September 30,
Restricted cash:
Restricted cash:
Restricted cash:
Restricted cash deposited with LKE intermediary
Restricted cash deposited with LKE intermediary
Restricted cash deposited with LKE intermediary
Restricted cash held in escrow
Total restricted cash
		2023	2022

Restricted cash, excluding Timber Funds:
Restricted cash deposited with LKE intermediary		$2	$15,627
Restricted cash held in escrow		1,802	625
Total restricted cash, excluding Timber Funds		1,804	16,252
Restricted cash, Timber Funds		—	1,464
Cash and cash equivalents

Cash and cash equivalents

Cash and cash equivalents	Cash and cash equivalents	107,784	261,804

Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows	Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows	$109,588	$279,520

Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows

Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows

19. ASSETS HELD FOR SALE

Assets held for sale is composed of properties not included in inventory which are under contract and expected to be sold within 12 months that also meet the other relevant held-for-sale criteria in accordance with ASC 360-10-45-9. As of ~~September 30, 2023~~March 31, 2024 and December 31, ~~2022,~~2023, the basis in properties meeting this classification was ~~$18.3~~$10.0 million and ~~$0.7~~$9.9 million, respectively. Since the basis in these properties was less than the fair value, including costs to sell, no impairment was recognized.

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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (“MD&A”)

When we refer to “Rayonier” or “the Company” we mean Rayonier Inc. and its consolidated subsidiaries. References to the “Operating Partnership” mean Rayonier, L.P. and its consolidated subsidiaries. References to “we,” “us,” or “our,” mean collectively Rayonier Inc., the Operating Partnership and entities/subsidiaries owned or controlled by Rayonier Inc. and/or the Operating Partnership. References herein to “Notes to Financial Statements” refer to the Notes to Consolidated Financial Statements of Rayonier Inc. and Rayonier, L.P. included in Item 1 of this report.

This MD&A is intended to provide a reader of our financial statements with a narrative from the perspective of management on our financial condition, results of operations, liquidity, and certain other factors which may affect future results. Our MD&A should be read in conjunction with our Consolidated Financial Statements included in Item 1 of this report, our Annual Report on Form 10-K for the year ended December 31, ~~2022~~2023 (the ~~“2022~~“2023 Form 10-K”) and information contained in our subsequent reports filed with the Securities and Exchange Commission (the “SEC”).

FORWARD-LOOKING STATEMENTS

Certain statements in this document regarding anticipated financial outcomes, including our earnings guidance, if any, business and market conditions, outlook, expected dividend rate, our business strategies, expected harvest schedules, timberland acquisitions and dispositions, the anticipated benefits of our business strategies, and other similar statements relating to our 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 risk factors contained in Item 1A — Risk Factors in our ~~2022~~2023 Form 10-K, and similar discussions included in other reports that we subsequently file with the SEC, among others, could cause actual results or events to differ materially from our historical experience and those expressed in forward-looking statements made in this document.

Forward-looking statements are only as of the date they are made, and we undertake no duty to update our forward-looking statements except as required by law. You are advised, however, to review any subsequent disclosures we make on related subjects in subsequent reports filed with the SEC.

NON-GAAP MEASURES

To supplement our financial statements presented in accordance with generally accepted accounting principles in the United States (“GAAP”), we use certain non-GAAP measures, including “Cash Available for Distribution,” and “Adjusted EBITDA,” which are defined and further explained in Performance and Liquidity Indicators below. Reconciliation of such measures to the nearest GAAP measures can also be found in Performance and Liquidity Indicators below. Our definitions of these non-GAAP measures may differ from similarly titled measures used by others. These non-GAAP measures should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP.

OBJECTIVE

The objective of the Management’s Discussion and Analysis is to detail material information, events, uncertainties and other factors impacting the Company and the Operating Partnership and to provide investors an understanding of “Management’s perspective.” Item 2, Management’s Discussion and Analysis highlights the critical areas for evaluating our performance which includes a discussion on the reportable segments, liquidity and capital, and critical accounting estimates. The MD&A is provided as a supplement to, and should be read in conjunction with, our financial statements and notes.

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OUR COMPANY

We are a leading timberland real estate investment trust (“REIT”) with assets located in some of the most productive softwood timber growing regions in the United States and New Zealand. We invest in timberlands and actively manage them to provide current income and attractive long-term returns to our shareholders. We conduct our business through an umbrella partnership real estate investment trust (“UPREIT”) structure in which our assets are owned by our Operating Partnership and its subsidiaries. Rayonier manages the Operating Partnership as its sole general partner. Our revenues, operating income and cash flows are primarily derived from the following core business segments: Southern Timber, Pacific Northwest Timber, New Zealand Timber, Real Estate, and Trading. As of ~~September 30, 2023,~~March 31, 2024, we owned or leased under long-term agreements approximately ~~2.8~~2.7 million acres of timberlands located in the U.S. South ~~(1.90~~(1.85 million acres), U.S. Pacific Northwest ~~(474,000~~(418,000 acres) and New Zealand ~~(419,000~~(422,000 gross acres or ~~298,000~~297,000 net plantable acres).

SEGMENT INFORMATION

The Southern Timber, Pacific Northwest Timber and New Zealand Timber segments include all activities related to the harvesting of timber and other ~~non-timber income~~value-added activities such as the licensing of properties for hunting, ~~granting land access for carbon capture and storage,~~ the leasing of properties for mineral extraction and cell towers, the sale of carbon credits, and revenue from land-based solutions such as carbon ~~credit sales.~~capture and storage, solar, and wind energy. Our New Zealand operations are conducted by Matariki Forestry Group, a joint venture (the “New Zealand subsidiary”), in which we maintain a 77% ownership interest. See Note 4 - Noncontrolling Interests for additional information regarding our noncontrolling interests in the New Zealand Timber segment.

The Real Estate segment includes all U.S. and New Zealand land or leasehold sales disaggregated into six sales categories: Improved Development, Unimproved Development, Rural, Timberland & Non-Strategic, Conservation Easements and Large Dispositions. It also includes residential and commercial lease activity, primarily in the town of Port Gamble, Washington.

The Trading segment primarily reflects log trading activities in New Zealand and Australia conducted by our New Zealand subsidiary. It also includes log trading activities conducted from the U.S. South and Pacific Northwest. Our Trading segment activities include an export services joint venture with a third-party forest manager in which Matariki Forests Trading Ltd maintains a 50% ownership interest. The Trading segment complements the New Zealand Timber segment by providing added market intelligence, increasing the scale of export operations and achieving cost savings that directly benefit the New Zealand Timber segment. This additional market intelligence also benefits our Southern and Pacific Northwest export log marketing.

ENVIRONMENTAL MATTERS

For a full description of our environmental matters, see Item 1 - “Business” in our Annual Report on Form 10-K for the year ended December 31, ~~2022~~2023 and our sustainability report located at our Responsible Stewardship webpage.

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INDUSTRY AND MARKET CONDITIONS

The demand for timber is directly related to the underlying demand for pulp, paper, packaging, lumber and other wood products. The significant majority of timber sold in our Southern Timber segment is consumed domestically. With a higher proportion of pulpwood, our Southern Timber segment relies heavily on downstream markets for pulp and paper, and to a lesser extent wood pellet markets. Our Pacific Northwest Timber segment relies primarily on domestic customers but also exports ~~a significant volume of~~ timber ~~particularly~~ to ~~Japan~~China and ~~China.~~Japan. The Southern Timber and Pacific Northwest Timber segments rely on the strength of U.S. lumber markets as well as underlying housing starts. Our New Zealand Timber segment sells timber to domestic New Zealand wood products mills and also exports a significant portion of its volume to Asian markets, particularly in China and South Korea. In addition to market dynamics in the Pacific Rim, the New Zealand Timber segment is subject to foreign exchange fluctuations, which can impact the operating results of the segment in U.S. dollar terms.

~~During 2023, each of~~Pricing in our timber segments ~~have experienced challenging~~is influenced by macroeconomic factors, including residential construction activity, and can also vary considerably on a local level based on weather, the available inventory of logs, mill demand, and export market ~~conditions due to ongoing market headwinds and weaker end-market demand relative to the prior year.~~access. In our Southern Timber segment, ~~weaker demand for pulp~~weather-related constraints on competing supply benefited first quarter harvest volumes and ~~lumber coupled with drier weather conditions has resulted in lower~~ net stumpage ~~prices.~~realizations. In our Pacific Northwest Timber segment, ~~softer~~weighted-average delivered log prices remain under pressure due to weaker domestic ~~lumber~~ demand and ~~decreased competition from~~reduced export ~~markets has negatively impacted sawtimber prices.~~market tension. In our New Zealand Timber segment, ~~weaker demand~~lower levels of construction activity in China ~~has driven lower~~continue to negatively impact export market demand and ~~domestic sawtimber~~ prices.

We are also subject to the risk of price fluctuations in certain of our cost components, primarily logging and transportation (cut and haul), ocean freight and demurrage costs. Other major components of our cost of sales are the cost basis of timber sold (depletion) and the cost basis of real estate sold. Depletion includes the amortization of capitalized site preparation, planting and fertilization, real estate taxes, timberland lease payments and certain payroll costs. The cost basis of real estate sold includes the cost basis in land and costs directly associated with the development and construction of identified real estate projects, such as infrastructure, roadways, utilities, amenities and/or other improvements. Other costs include amortization of capitalized costs related to road and bridge construction and software, depreciation of fixed assets and equipment, road maintenance, severance and excise taxes, fire prevention and real estate commissions and closing costs.

Our Real Estate segment is exposed to changes in interest and mortgage rates as higher rates could negatively impact buyer demand for the properties we sell. However, ~~current demand for~~ our ~~rural~~improved development projects, specifically Wildlight, our development project north of Jacksonville, Florida, and Heartwood, our development ~~real estate properties has not yet been significantly impacted by~~project south of Savannah, Georgia, continue to benefit from favorable migration and demographic trends, which have thus far outweighed the impacts of higher interest ~~rate environment.~~rates.

For additional information on market conditions impacting our business, see Results of Operations.

CRITICAL ACCOUNTING ESTIMATES

The preparation of financial statements requires us to make estimates, assumptions and judgments that affect our assets, liabilities, revenues and expenses, and disclosure of contingent assets and liabilities. We base these estimates and assumptions on historical data and trends, current fact patterns, expectations and other sources of information we believe are reasonable. Actual results may differ from these estimates. For a full description of our critical accounting policies, see Item 7 — Management’s Discussion and Analysis of Financial Condition and Results of Operations in our ~~2022~~2023 Form 10-K.

~~REVENUE RECOGNITION~~ACCOUNTING STANDARDS ISSUED BUT NOT YET ADOPTED

See Note 1 –— Basis of Presentation. for a summary of recently issued accounting standards.

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DISCUSSION OF TIMBER INVENTORY AND SUSTAINABLE YIELD

See Item 1 — Business — Discussion of Timber Inventory and Sustainable Yield in our ~~2022~~2023 Form 10-K.

OUR TIMBERLANDS

Our timber operations are disaggregated into three geographically distinct segments: Southern Timber, Pacific Northwest Timber and New Zealand Timber. The following tables provide a breakdown of our timberland holdings as of ~~September 30, 2023~~March 31, 2024 and December 31, ~~2022:~~2023:


(acres in 000s)	(acres in 000s)	As of September 30, 2023			As of December 31, 2022
		Owned	Leased	Total	Owned	Leased	Total
(acres in 000s)

(acres in 000s)
		Owned
		Owned
		Owned
Southern
Southern
Southern	Southern
Alabama	Alabama	256	5	261	258	14	272
Alabama
Alabama
Arkansas
Arkansas
Arkansas	Arkansas	—	2	2	—	2	2
Florida	Florida	362	50	412	347	47	394
Florida
Florida
Georgia	Georgia	623	65	688	647	64	711
Georgia
Georgia
Louisiana
Louisiana
Louisiana	Louisiana	147	—	147	148	—	148

Oklahoma	Oklahoma	91	—	91	91	—	91

Oklahoma

Oklahoma
South Carolina
South Carolina
South Carolina	South Carolina	16	—	16	16	—	16

Texas	Texas	282	—	282	285	—	285
		1,777	122	1,899	1,792	127	1,919
Texas

Texas
		1,756
		1,756
		1,756

Pacific Northwest

Pacific Northwest

Pacific Northwest	Pacific Northwest
Oregon	Oregon	61	—	61	61	—	61
Oregon
Oregon
Washington	Washington	410	3	413	410	3	413
Washington
Washington
		414
		414
		414
		471	3	474	471	3	474
New Zealand (a)

New Zealand (a)

New Zealand (a)	New Zealand (a)	188	231	419	188	229	417
Total	Total	2,436	356	2,792	2,451	359	2,810
Total
Total

(a)Represents legal acres owned and leased by the New Zealand subsidiary, in which we own a 77% interest. As of ~~September 30, 2023,~~March 31, 2024, legal acres in New Zealand consisted of ~~298,000~~297,000 plantable acres and ~~121,000~~125,000 non-productive acres.

4135

The following tables detail activity for owned and leased acres in our timberland holdings by state from December 31, ~~2022~~2023 to ~~September 30, 2023:~~March 31, 2024:


(acres in 000s)	(acres in 000s)	Acres Owned					(acres in 000s)	Acres Owned
		December 31, 2022	Acquisitions	Sales	Other (a)	September 30, 2023
	December 31, 2023								December 31, 2023	Acquisitions	Sales	Other	March 31, 2024
Southern	Southern
Alabama
Alabama
Alabama	Alabama	258	—	(1)	(1)	256
Florida	Florida	347	2	(2)	15	362
Georgia	Georgia	647	—	(1)	(23)	623
Louisiana	Louisiana	148	—	(1)	—	147

Oklahoma	Oklahoma	91	—	—	—	91
Oklahoma
Oklahoma
South Carolina	South Carolina	16	—	—	—	16

Texas	Texas	285	1	(5)	1	282
		1,792	3	(10)	(8)	1,777
Texas
Texas
	1,759

Pacific Northwest	Pacific Northwest
Pacific Northwest
Pacific Northwest
Oregon
Oregon
Oregon	Oregon	61	—	—	—	61
Washington	Washington	410	—	—	—	410
	414
		471	—	—	—	471

New Zealand (b)		188	—	—	—	188
New Zealand (a)
New Zealand (a)
New Zealand (a)
Total	Total	2,451	3	(10)	(8)	2,436

(a)~~Includes adjustments for land mapping reviews.~~

~~(b)~~Represents legal acres owned by the New Zealand subsidiary, in which we have a 77% interest.


(acres in 000s)	(acres in 000s)	Acres Leased					(acres in 000s)	Acres Leased
		December 31, 2022	New Leases	Sold/Expired Leases (a)	Other (b)	September 30, 2023
	December 31, 2023								December 31, 2023	New Leases	Sold/Expired Leases	Other (a)	March 31, 2024
Southern	Southern
Alabama
Alabama
Alabama	Alabama	14	—	(9)	—	5
Arkansas	Arkansas	2	—	—	—	2
Florida	Florida	47	—	—	3	50
Georgia	Georgia	64	—	—	1	65

		127	—	(9)	4	122
		93
		93
		93

Pacific Northwest	Pacific Northwest
Washington (c)		3	—	—	—	3
Pacific Northwest
Pacific Northwest
Washington (b)
Washington (b)
Washington (b)

New Zealand (d)		229	—	—	2	231
New Zealand (c)
New Zealand (c)
New Zealand (c)
Total	Total	359	—	(9)	6	356

(a)~~Includes acres previously under lease that have been harvested and activity for the relinquishment of leased acres.~~

~~(b)~~Includes adjustments for land mapping reviews.

~~(c)~~(b)Primarily timber reservations acquired in the merger with Pope Resources.

~~(d)~~(c)Represents legal acres leased by the New Zealand subsidiary, in which we have a 77% interest.

4236

RESULTS OF OPERATIONS

CONSOLIDATED RESULTS

The following table provides key financial information by segment and on a consolidated basis:


		Three Months Ended September 30,		Nine Months Ended September 30,
			Three Months Ended March 31,
			Three Months Ended March 31,
			Three Months Ended March 31,
Financial Information (in millions)	Financial Information (in millions)	2023	2022	2023	2022	Financial Information (in millions)	2024	2023
Sales	Sales
Southern Timber
Southern Timber
Southern Timber	Southern Timber	$64.0	$64.5	$204.1	$207.6
Pacific Northwest Timber	Pacific Northwest Timber	29.3	34.4	96.1	119.8
New Zealand Timber	New Zealand Timber	70.4	72.5	175.4	202.7

Real Estate	Real Estate
Real Estate
Real Estate
Improved Development	Improved Development	3.1	2.3	20.2	18.8
Unimproved Development		0.1	—	0.1	—
Improved Development
Improved Development

Rural
Rural
Rural	Rural	20.5	7.0	42.6	47.3
Timberland & Non-Strategic	Timberland & Non-Strategic	1.1	—	2.9	11.4

Deferred Revenue/Other (a)	Deferred Revenue/Other (a)	6.4	3.2	13.7	3.5
Deferred Revenue/Other (a)
Deferred Revenue/Other (a)

Total Real Estate
Total Real Estate
Total Real Estate	Total Real Estate	31.2	12.4	79.5	81.0
Trading	Trading	6.8	11.6	34.8	52.7
Intersegment Eliminations	Intersegment Eliminations	(0.1)	(0.1)	(0.4)	(0.2)
Total Sales	Total Sales	$201.6	$195.3	$589.5	$663.7

Operating Income (Loss)	Operating Income (Loss)
Operating Income (Loss)
Operating Income (Loss)
Southern Timber	Southern Timber	$18.6	$22.5	$62.6	$76.9
Pacific Northwest Timber (b)		(0.6)	2.2	(6.5)	11.7
New Zealand Timber (c)		17.6	9.3	19.3	22.7
Southern Timber
Southern Timber
Pacific Northwest Timber
New Zealand Timber (b)

Real Estate (a)(d)		9.2	15.7	18.7	37.0
Real Estate
Real Estate
Real Estate
Trading	Trading	(0.1)	0.2	0.4	0.1
Corporate and Other	Corporate and Other	(9.4)	(9.0)	(28.3)	(26.6)
Operating Income	Operating Income	35.4	40.9	66.1	121.7
Interest expense, interest income and other (e)		(12.1)	(7.8)	(15.0)	(25.5)
Income tax expense		(0.6)	(1.2)	(1.8)	(8.1)
Interest expense, net
Interest and other miscellaneous (expense) income, net (c)
Income tax benefit (expense) (d)
Net Income	Net Income	22.7	31.9	49.3	88.1
Less: Net income attributable to noncontrolling interests in consolidated affiliates		(3.2)	(10.8)	(1.9)	(12.4)
Less: Net (income) loss attributable to noncontrolling interests in consolidated affiliates
Net Income Attributable to Rayonier, L.P.	Net Income Attributable to Rayonier, L.P.	$19.5	$21.1	$47.4	$75.7
Less: Net income attributable to noncontrolling interests in the operating partnership	Less: Net income attributable to noncontrolling interests in the operating partnership	(0.3)	(0.5)	(0.8)	(1.7)
Net Income Attributable to Rayonier Inc.	Net Income Attributable to Rayonier Inc.	$19.2	$20.6	$46.6	$74.0

Adjusted EBITDA (f)
Adjusted EBITDA (e)
Adjusted EBITDA (e)
Adjusted EBITDA (e)
Southern Timber
Southern Timber
Southern Timber	Southern Timber	$37.8	$36.6	$124.2	$123.7
Pacific Northwest Timber	Pacific Northwest Timber	7.8	12.6	21.7	48.4
New Zealand Timber	New Zealand Timber	23.5	15.6	37.9	40.8

Real Estate
Real Estate
Real Estate	Real Estate	18.9	8.4	45.8	58.4
Trading	Trading	(0.1)	0.2	0.4	0.1
Corporate and Other	Corporate and Other	(9.0)	(8.6)	(27.1)	(25.7)
Total Adjusted EBITDA	Total Adjusted EBITDA	$78.9	$64.7	$202.9	$245.8

(a)Includes deferred revenue adjustments, revenue true-ups and marketing fees related to Improved Development sales in addition to residential and commercial lease revenue.

(b)The three ~~and nine~~ months ended ~~September 30, 2022~~March 31, 2023 includes ~~a $1.1~~$2.3 million of timber ~~write-off~~write-offs resulting from a casualty ~~event.~~events.

(c)The ~~nine~~three months ended ~~September 30,~~March 31, 2024 includes $5.7 million of pension settlement charges and $1.3 million of net costs associated with legal settlements. The three months ended March 31, 2023 includes ~~a $2.3 million timber write-off resulting from a casualty event.~~

~~(d)The three and nine months ended September 30, 2022 includes $16.0 million of equity income related to the multi-family apartment complex sale in Bainbridge Island, Washington.~~

~~(e)The nine months ended September 30, 2023 includes $20.5~~$9.1 million of net recoveries associated with legal settlements.

~~(f)~~(d)The three months ended March 31, 2024 includes a $1.2 million income tax benefit related to the pension settlement.

(e)Adjusted EBITDA is a non-GAAP measure defined and reconciled in Performance and Liquidity Indicators.

4337


		Three Months Ended September 30,				Nine Months Ended September 30,
		Three Months Ended March 31,
		Three Months Ended March 31,
		Three Months Ended March 31,
Southern Timber Overview
Southern Timber Overview
Southern Timber Overview	Southern Timber Overview	2023		2022		2023		2022
Sales Volume (in thousands of tons)	Sales Volume (in thousands of tons)
Sales Volume (in thousands of tons)
Sales Volume (in thousands of tons)
Pine Pulpwood
Pine Pulpwood
Pine Pulpwood	Pine Pulpwood	995		965		3,010		3,098
Pine Sawtimber	Pine Sawtimber	745		449		2,563		1,529
Pine Sawtimber
Pine Sawtimber
Total Pine Volume
Total Pine Volume
Total Pine Volume	Total Pine Volume	1,740		1,414		5,574		4,627
Hardwood	Hardwood	69		85		138		291
Hardwood
Hardwood
Total Volume
Total Volume
Total Volume	Total Volume	1,809		1,499		5,712		4,918

% Delivered Volume (vs. Total Volume)	% Delivered Volume (vs. Total Volume)	35	%	47	%	34	%	43	%

% Delivered Volume (vs. Total Volume)

% Delivered Volume (vs. Total Volume)
% Pine Sawtimber Volume (vs. Total Pine Volume)	% Pine Sawtimber Volume (vs. Total Pine Volume)	43	%	32	%	46	%	33	%
% Pine Sawtimber Volume (vs. Total Pine Volume)
% Pine Sawtimber Volume (vs. Total Pine Volume)
% Export Volume (vs. Total Volume) (a)
% Export Volume (vs. Total Volume) (a)
% Export Volume (vs. Total Volume) (a)	% Export Volume (vs. Total Volume) (a)	1	%	2	%	1	%	2	%

Net Stumpage Pricing (dollars per ton)	Net Stumpage Pricing (dollars per ton)

Net Stumpage Pricing (dollars per ton)

Net Stumpage Pricing (dollars per ton)
Pine Pulpwood
Pine Pulpwood
Pine Pulpwood	Pine Pulpwood	$16.54		$22.77		$16.53		$22.88
Pine Sawtimber	Pine Sawtimber	28.85		33.31		29.87		34.40
Pine Sawtimber
Pine Sawtimber
Weighted Average Pine
Weighted Average Pine
Weighted Average Pine	Weighted Average Pine	$21.81		$26.12		$22.67		$26.69
Hardwood	Hardwood	13.16		20.59		13.98		24.33
Hardwood
Hardwood
Weighted Average Total
Weighted Average Total
Weighted Average Total	Weighted Average Total	$21.48		$25.80		$22.46		$26.55

Summary Financial Data (in millions of dollars)	Summary Financial Data (in millions of dollars)

Summary Financial Data (in millions of dollars)

Summary Financial Data (in millions of dollars)
Timber Sales
Timber Sales
Timber Sales	Timber Sales	$54.1		$57.7		$175.0		$186.9
Less: Cut and Haul	Less: Cut and Haul	(14.4)		(17.3)		(43.4)		(50.5)
Less: Cut and Haul
Less: Cut and Haul
Less: Port and Freight
Less: Port and Freight
Less: Port and Freight	Less: Port and Freight	(0.9)		(1.6)		(3.6)		(5.7)
Net Stumpage Sales	Net Stumpage Sales	$38.8		$38.8		$128.0		$130.7
Net Stumpage Sales
Net Stumpage Sales

Non-Timber Sales		9.8		6.8		29.1		20.7
Land-Based Solutions (b)

Land-Based Solutions (b)

Land-Based Solutions (b)
Other Non-Timber Sales
Other Non-Timber Sales
Other Non-Timber Sales
Total Sales
Total Sales
Total Sales	Total Sales	$64.0		$64.5		$204.1		$207.6

Operating Income	Operating Income	$18.6		$22.5		$62.6		$76.9

Operating Income

Operating Income

(+) Depreciation, depletion and amortization	(+) Depreciation, depletion and amortization	19.2		14.1		61.6		46.8
Adjusted EBITDA (b)		$37.8		$36.6		$124.2		$123.7

(+) Depreciation, depletion and amortization

(+) Depreciation, depletion and amortization
Adjusted EBITDA (c)
Adjusted EBITDA (c)
Adjusted EBITDA (c)

Other Data

Other Data

Other Data	Other Data

Period-End Acres (in thousands)	Period-End Acres (in thousands)	1,899		1,789		1,899		1,789

Period-End Acres (in thousands)

Period-End Acres (in thousands)

(a)Estimated percentage of export volume, which includes volumes sold to third-party exporters in addition to direct exports through our log export program.

(b)Consists of sales from carbon capture and storage (“CCS”), solar and wind energy contracts.

(c)Adjusted EBITDA is a non-GAAP measure defined and reconciled in Performance and Liquidity Indicators.

4438


		Three Months Ended March 31,
		Three Months Ended March 31,
		Three Months Ended March 31,
Pacific Northwest Timber Overview
Pacific Northwest Timber Overview
Pacific Northwest Timber Overview
Sales Volume (in thousands of tons)
Sales Volume (in thousands of tons)
Sales Volume (in thousands of tons)
Pulpwood
Pulpwood
Pulpwood
Domestic Sawtimber (a)
Domestic Sawtimber (a)
Domestic Sawtimber (a)
Export Sawtimber
Export Sawtimber
Export Sawtimber

		Three Months Ended September 30,				Nine Months Ended September 30,
Pacific Northwest Timber Overview		2023		2022		2023		2022
Sales Volume (in thousands of tons)
Pulpwood		43		59		181		214
Domestic Sawtimber (a)		226		230		760		911
Export Sawtimber		21		18		65		63
Total Volume

Total Volume

Total Volume	Total Volume	290		307		1,006		1,188

% Delivered Volume (vs. Total Volume)	% Delivered Volume (vs. Total Volume)	94	%	100	%	97	%	90	%

% Delivered Volume (vs. Total Volume)

% Delivered Volume (vs. Total Volume)
% Sawtimber Volume (vs. Total Volume)	% Sawtimber Volume (vs. Total Volume)	85	%	81	%	82	%	82	%
% Sawtimber Volume (vs. Total Volume)
% Sawtimber Volume (vs. Total Volume)
% Export Volume (vs. Total Volume) (b)
% Export Volume (vs. Total Volume) (b)
% Export Volume (vs. Total Volume) (b)	% Export Volume (vs. Total Volume) (b)	11	%	12	%	11	%	10	%

Delivered Log Pricing (in dollars per ton)	Delivered Log Pricing (in dollars per ton)

Delivered Log Pricing (in dollars per ton)

Delivered Log Pricing (in dollars per ton)
Pulpwood
Pulpwood
Pulpwood	Pulpwood	$33.09		$50.74		$40.67		$44.44
Domestic Sawtimber	Domestic Sawtimber	108.20		120.08		98.89		114.20
Domestic Sawtimber
Domestic Sawtimber
Export Sawtimber (c)	Export Sawtimber (c)	131.15		90.23		146.58		92.15
Export Sawtimber (c)
Export Sawtimber (c)
Weighted Average Log Price
Weighted Average Log Price
Weighted Average Log Price	Weighted Average Log Price	$98.79		$104.97		$91.44		$100.18

Summary Financial Data (in millions of dollars)	Summary Financial Data (in millions of dollars)

Summary Financial Data (in millions of dollars)

Summary Financial Data (in millions of dollars)
Timber Sales
Timber Sales
Timber Sales	Timber Sales	$27.8		$32.6		$91.3		$115.6
Less: Cut and Haul	Less: Cut and Haul	(12.1)		(13.9)		(44.8)		(46.7)
Less: Cut and Haul
Less: Cut and Haul
Less: Port and Freight	Less: Port and Freight	(1.1)		(0.2)		(3.8)		(0.7)
Less: Port and Freight
Less: Port and Freight
Net Stumpage Sales
Net Stumpage Sales
Net Stumpage Sales	Net Stumpage Sales	$14.7		$18.5		$42.7		$68.3

Non-Timber Sales	Non-Timber Sales	1.5		1.8		4.7		4.2

Non-Timber Sales

Non-Timber Sales
Total Sales
Total Sales
Total Sales	Total Sales	$29.3		$34.4		$96.1		$119.8

Operating (Loss) Income		($0.6)		$2.2		($6.5)		$11.7
(+) Timber write-offs resulting from a casualty event (d)		—		1.1		—		1.1
Operating Loss

Operating Loss

Operating Loss

(+) Depreciation, depletion and amortization	(+) Depreciation, depletion and amortization	8.3		9.4		28.2		35.6
Adjusted EBITDA (e)		$7.8		$12.6		$21.7		$48.4

(+) Depreciation, depletion and amortization

(+) Depreciation, depletion and amortization
Adjusted EBITDA (d)
Adjusted EBITDA (d)
Adjusted EBITDA (d)

Other Data

Other Data

Other Data	Other Data

Period-End Acres (in thousands)	Period-End Acres (in thousands)	474		486		474		486
Sawtimber (in dollars per MBF) (f)		$726		$860		$722		$866

Period-End Acres (in thousands)

Period-End Acres (in thousands)
Sawtimber (in dollars per MBF) (e)
Sawtimber (in dollars per MBF) (e)
Sawtimber (in dollars per MBF) (e)

(a)Includes volumes sold to third-party exporters.

(b)Estimated percentage of export volume, which includes volumes sold to third-party exporters in addition to direct exports through our log export program.

(c)~~Prior to Q4 2022, pricing reflects the transfer of logs on an FOB basis. Beginning in Q4 2022, pricing~~Pricing is reported on a CFR basis (i.e., inclusive of export costs and freight).

(d)~~Timber write-offs resulting from a casualty event include the write-off of merchantable and pre-merchantable timber volume damaged by casualty events which cannot be salvaged.~~

~~(e)~~Adjusted EBITDA is a non-GAAP measure defined and reconciled in Performance and Liquidity Indicators.

~~(f)~~(e)Delivered Sawtimber excluding chip-n-saw.

4539


		Three Months Ended September 30,				Nine Months Ended September 30,
		Three Months Ended March 31,
		Three Months Ended March 31,
		Three Months Ended March 31,
New Zealand Timber Overview
New Zealand Timber Overview
New Zealand Timber Overview	New Zealand Timber Overview	2023		2022		2023		2022
Sales Volume (in thousands of tons)	Sales Volume (in thousands of tons)
Sales Volume (in thousands of tons)
Sales Volume (in thousands of tons)
Domestic Pulpwood (Delivered)
Domestic Pulpwood (Delivered)
Domestic Pulpwood (Delivered)	Domestic Pulpwood (Delivered)	58		103		163		302
Domestic Sawtimber (Delivered)	Domestic Sawtimber (Delivered)	211		221		502		544
Domestic Sawtimber (Delivered)
Domestic Sawtimber (Delivered)
Export Pulpwood (Delivered)	Export Pulpwood (Delivered)	55		38		167		129
Export Pulpwood (Delivered)
Export Pulpwood (Delivered)
Export Sawtimber (Delivered)
Export Sawtimber (Delivered)
Export Sawtimber (Delivered)	Export Sawtimber (Delivered)	367		349		1,012		954

Total Volume	Total Volume	690		712		1,844		1,929

Total Volume

Total Volume

% Delivered Volume (vs. Total Volume)

% Delivered Volume (vs. Total Volume)

% Delivered Volume (vs. Total Volume)	% Delivered Volume (vs. Total Volume)	100	%	100	%	100	%	100	%
% Sawtimber Volume (vs. Total Volume)	% Sawtimber Volume (vs. Total Volume)	84	%	80	%	82	%	78	%
% Sawtimber Volume (vs. Total Volume)
% Sawtimber Volume (vs. Total Volume)
% Export Volume (vs. Total Volume) (a)
% Export Volume (vs. Total Volume) (a)
% Export Volume (vs. Total Volume) (a)	% Export Volume (vs. Total Volume) (a)	61	%	54	%	64	%	56	%

Delivered Log Pricing (in dollars per ton)	Delivered Log Pricing (in dollars per ton)

Delivered Log Pricing (in dollars per ton)

Delivered Log Pricing (in dollars per ton)
Domestic Pulpwood
Domestic Pulpwood
Domestic Pulpwood	Domestic Pulpwood	$32.92		$33.13		$34.60		$34.20
Domestic Sawtimber	Domestic Sawtimber	63.45		69.69		67.46		73.72
Domestic Sawtimber
Domestic Sawtimber
Export Sawtimber	Export Sawtimber	95.23		123.07		102.93		130.71
Export Sawtimber
Export Sawtimber
Weighted Average Log Price
Weighted Average Log Price
Weighted Average Log Price	Weighted Average Log Price	$79.47		$92.76		$86.15		$98.92

Summary Financial Data (in millions of dollars)	Summary Financial Data (in millions of dollars)

Summary Financial Data (in millions of dollars)

Summary Financial Data (in millions of dollars)
Timber Sales	Timber Sales	$54.9		$66.1		$158.8		$190.9
Less: Cut and Haul		(22.8)		(25.8)		(64.5)		(71.6)
Less: Port and Freight		(15.9)		(23.1)		(47.5)		(69.8)
Timber Sales
Timber Sales
Less: Cut and Haul (b)
Less: Cut and Haul (b)
Less: Cut and Haul (b)
Less: Port and Freight (b)
Less: Port and Freight (b)
Less: Port and Freight (b)
Net Stumpage Sales
Net Stumpage Sales
Net Stumpage Sales	Net Stumpage Sales	$16.2		$17.2		$46.8		$49.4

Non-Timber Sales / Carbon Credits		15.6		6.4		16.6		11.9
Carbon Credit Sales

Carbon Credit Sales

Carbon Credit Sales
Other Non-Timber Sales
Other Non-Timber Sales
Other Non-Timber Sales
Total Sales
Total Sales
Total Sales	Total Sales	$70.4		$72.5		$175.4		$202.7

Operating Income		$17.6		$9.3		$19.3		$22.7
(+) Timber write-off resulting from a casualty event (b)		—		—		2.3		—
Operating Income (Loss)

Operating Income (Loss)

Operating Income (Loss)
(+) Timber write-offs resulting from casualty events (c)
(+) Timber write-offs resulting from casualty events (c)
(+) Timber write-offs resulting from casualty events (c)

(+) Depreciation, depletion and amortization	(+) Depreciation, depletion and amortization	6.0		6.3		16.3		18.2

Adjusted EBITDA (c)		$23.5		$15.6		$37.9		$40.8
(+) Depreciation, depletion and amortization

(+) Depreciation, depletion and amortization

Adjusted EBITDA (d)

Adjusted EBITDA (d)

Adjusted EBITDA (d)

Other Data	Other Data
New Zealand Dollar to U.S. Dollar Exchange Rate (d)		0.6084		0.6223		0.6166		0.6479

Other Data

Other Data
New Zealand Dollar to U.S. Dollar Exchange Rate (e)
New Zealand Dollar to U.S. Dollar Exchange Rate (e)
New Zealand Dollar to U.S. Dollar Exchange Rate (e)
Net Plantable Period-End Acres (in thousands)
Net Plantable Period-End Acres (in thousands)
Net Plantable Period-End Acres (in thousands)	Net Plantable Period-End Acres (in thousands)	298		297		298		297
Export Sawtimber (in dollars per JAS m3)	Export Sawtimber (in dollars per JAS m3)	$110.72		$143.09		$119.68		$151.98
Export Sawtimber (in dollars per JAS m3)
Export Sawtimber (in dollars per JAS m3)
Domestic Sawtimber (in $NZD per tonne)	Domestic Sawtimber (in $NZD per tonne)	$114.72		$123.19		$120.34		$125.16
Domestic Sawtimber (in $NZD per tonne)
Domestic Sawtimber (in $NZD per tonne)

(a)Percentage of export volume reflects direct exports through our log export program.

(b)Prior period has been restated to reclassify certain export related costs from cut and haul to port and freight.

(c)Timber ~~write-off~~write-offs resulting from a casualty ~~event~~events includes the write-off of merchantable and pre-merchantable timber volume damaged by a casualty ~~event which~~events that cannot be salvaged.

~~(c)~~(d)Adjusted EBITDA is a non-GAAP measure defined and reconciled in Performance and Liquidity Indicators.

~~(d)~~(e)Represents the period-average rate.

4640


		Three Months Ended September 30,		Nine Months Ended September 30,
			Three Months Ended March 31,
			Three Months Ended March 31,
			Three Months Ended March 31,
Real Estate Overview	Real Estate Overview	2023	2022	2023	2022	Real Estate Overview	2024	2023
Sales (in millions of dollars)	Sales (in millions of dollars)
Improved Development (a)	Improved Development (a)	$3.1	$2.3	$20.2	$18.8
Unimproved Development		0.1	—	0.1	—
Improved Development (a)
Improved Development (a)

Rural
Rural
Rural	Rural	20.5	7.0	42.6	47.3
Timberland & Non-Strategic	Timberland & Non-Strategic	1.1	—	2.9	11.4

Deferred Revenue/Other (b)	Deferred Revenue/Other (b)	6.4	3.2	13.7	3.5

Deferred Revenue/Other (b)

Deferred Revenue/Other (b)

Total Sales
Total Sales
Total Sales	Total Sales	$31.2	$12.4	$79.5	$81.0

Acres Sold	Acres Sold

Acres Sold

Acres Sold
Improved Development (a)	Improved Development (a)	6.9	19.0	302.2	95.9
Unimproved Development		10	—	10	—
Improved Development (a)
Improved Development (a)

Rural
Rural
Rural	Rural	3,799	1,809	8,740	11,194
Timberland & Non-Strategic	Timberland & Non-Strategic	466	—	1,070	3,966

Total Acres Sold	Total Acres Sold	4,281	1,828	10,122	15,256

Total Acres Sold

Total Acres Sold

Gross Price per Acre (dollars per acre)

Gross Price per Acre (dollars per acre)

Gross Price per Acre (dollars per acre)	Gross Price per Acre (dollars per acre)
Improved Development (a)	Improved Development (a)	$454,810	$121,106	$66,694	$196,311
Unimproved Development		11,250	—	11,250	—
Improved Development (a)
Improved Development (a)

Rural
Rural
Rural	Rural	5,386	3,848	4,872	4,228
Timberland & Non-Strategic	Timberland & Non-Strategic	2,266	—	2,755	2,874

Weighted Average (Total)

Weighted Average (Total)

Weighted Average (Total)	Weighted Average (Total)	$5,781	$5,064	$6,501	$5,084
Weighted Average (Adjusted) (c)	Weighted Average (Adjusted) (c)	$5,060	$3,848	$4,648	$3,874

Operating Income		$9.2	$15.7	$18.7	$37.0
Operating (Loss) Income

Operating (Loss) Income

Operating (Loss) Income
(+) Depreciation, depletion and amortization	(+) Depreciation, depletion and amortization	3.1	1.0	6.8	12.7

(+) Non-cash cost of land and improved development
(+) Non-cash cost of land and improved development
(+) Non-cash cost of land and improved development	(+) Non-cash cost of land and improved development	6.6	3.1	20.2	20.3

(–) Gain associated with the multi-family apartment complex sale attributable to NCI (d)		—	(11.5)	—	(11.5)

Adjusted EBITDA (e)		$18.9	$8.4	$45.8	$58.4

Adjusted EBITDA (d)

Adjusted EBITDA (d)

Adjusted EBITDA (d)

(a)Reflects land with capital invested in infrastructure improvements.

(b)Includes deferred revenue adjustments, revenue true-ups and marketing fees related to Improved Development sales in addition to residential and commercial lease revenue.

(c)Excludes Improved Development.

(d)Gain associated with the multi-family apartment complex sale attributable to NCI represents the gain recognized in connection with the sale of property by the Bainbridge Landing joint venture attributable to noncontrolling interests.

~~(e)~~Adjusted EBITDA is a non-GAAP measure defined and reconciled in Performance and Liquidity Indicators.

4741


		Three Months Ended September 30,		Nine Months Ended September 30,
			Three Months Ended March 31,
			Three Months Ended March 31,
			Three Months Ended March 31,
Trading Overview	Trading Overview	2023	2022	2023	2022	Trading Overview	2024	2023
Sales Volume (in thousands of tons)	Sales Volume (in thousands of tons)
U.S.
U.S.
U.S.	U.S.	19	11	49	54
NZ	NZ	42	84	252	361

Total Volume	Total Volume	61	95	301	415

Total Volume

Total Volume

Summary Financial Data (in millions of dollars)	Summary Financial Data (in millions of dollars)
Summary Financial Data (in millions of dollars)
Summary Financial Data (in millions of dollars)
Trading Sales
Trading Sales
Trading Sales	Trading Sales	$6.4	$11.2	$33.5	$51.5
Non-Timber Sales	Non-Timber Sales	0.4	0.4	1.3	1.2
Total Sales	Total Sales	$6.8	$11.6	$34.8	$52.7

Operating (Loss) Income		($0.1)	$0.2	$0.4	$0.1
Operating Income
Operating Income
Operating Income

Adjusted EBITDA (a)	Adjusted EBITDA (a)	($0.1)	$0.2	$0.4	$0.1
Adjusted EBITDA (a)
Adjusted EBITDA (a)

(a)Adjusted EBITDA is a non-GAAP measure defined and reconciled in Performance and Liquidity Indicators.

4842


		Three Months Ended September 30,		Nine Months Ended September 30,
		Three Months Ended March 31,
		Three Months Ended March 31,
		Three Months Ended March 31,
Capital Expenditures By Segment (in millions of dollars)
Capital Expenditures By Segment (in millions of dollars)
Capital Expenditures By Segment (in millions of dollars)	Capital Expenditures By Segment (in millions of dollars)	2023	2022	2023	2022
Timber Capital Expenditures	Timber Capital Expenditures
Timber Capital Expenditures
Timber Capital Expenditures
Southern Timber
Southern Timber
Southern Timber	Southern Timber

Reforestation, silviculture and other capital expenditures	Reforestation, silviculture and other capital expenditures	$4.0	$5.4	$17.6	$11.5

Reforestation, silviculture and other capital expenditures

Reforestation, silviculture and other capital expenditures
Property taxes
Property taxes
Property taxes	Property taxes	2.0	1.9	6.0	5.6
Lease payments	Lease payments	0.1	0.1	0.7	1.0
Lease payments
Lease payments
Allocated overhead
Allocated overhead
Allocated overhead	Allocated overhead	1.5	1.2	4.2	3.6
Subtotal Southern Timber	Subtotal Southern Timber	$7.5	$8.6	$28.4	$21.7
Subtotal Southern Timber
Subtotal Southern Timber
Pacific Northwest Timber
Pacific Northwest Timber
Pacific Northwest Timber	Pacific Northwest Timber

Reforestation, silviculture and other capital expenditures	Reforestation, silviculture and other capital expenditures	1.6	2.3	6.6	7.5

Reforestation, silviculture and other capital expenditures

Reforestation, silviculture and other capital expenditures
Property taxes
Property taxes
Property taxes	Property taxes	0.3	0.3	0.8	0.8

Allocated overhead	Allocated overhead	1.5	1.3	4.1	4.0

Allocated overhead

Allocated overhead
Subtotal Pacific Northwest Timber
Subtotal Pacific Northwest Timber
Subtotal Pacific Northwest Timber	Subtotal Pacific Northwest Timber	$3.3	$3.9	$11.5	$12.3

New Zealand Timber	New Zealand Timber

New Zealand Timber

New Zealand Timber
Reforestation, silviculture and other capital expenditures
Reforestation, silviculture and other capital expenditures
Reforestation, silviculture and other capital expenditures	Reforestation, silviculture and other capital expenditures	3.1	3.2	7.6	8.7
Property taxes	Property taxes	0.2	0.2	0.6	0.6
Property taxes
Property taxes
Lease payments
Lease payments
Lease payments	Lease payments	1.3	1.4	2.6	2.8
Allocated overhead	Allocated overhead	0.6	0.6	2.0	2.0
Allocated overhead
Allocated overhead
Subtotal New Zealand Timber	Subtotal New Zealand Timber	$5.2	$5.4	$12.9	$14.0
Subtotal New Zealand Timber
Subtotal New Zealand Timber
Total Timber Segments Capital Expenditures
Total Timber Segments Capital Expenditures
Total Timber Segments Capital Expenditures	Total Timber Segments Capital Expenditures	$16.1	$17.8	$52.8	$48.0

Real Estate	Real Estate	—	0.1	0.2	0.2

Real Estate

Real Estate
Corporate	Corporate	0.2	—	0.2	—
Corporate
Corporate
Total Capital Expenditures
Total Capital Expenditures
Total Capital Expenditures	Total Capital Expenditures	$16.3	$17.9	$53.1	$48.2

Timberland Acquisitions	Timberland Acquisitions

Timberland Acquisitions

Timberland Acquisitions
Southern Timber
Southern Timber
Southern Timber	Southern Timber	$4.7	—	$10.4	$3.2
Pacific Northwest Timber	Pacific Northwest Timber	—	—	3.6	—
Pacific Northwest Timber
Pacific Northwest Timber

Timberland Acquisitions

Timberland Acquisitions

Timberland Acquisitions	Timberland Acquisitions	$4.7	—	$14.0	$3.2

Real Estate Development Investments (a)	Real Estate Development Investments (a)	$4.0	$4.9	$18.8	$10.9

Real Estate Development Investments (a)

Real Estate Development Investments (a)

(a)Represents investments in master infrastructure or entitlements in our real estate development projects. Real Estate Development Investments are amortized as the underlying properties are sold and included in Non-Cash Cost of Land and Improved Development.

4943

The following tables summarize sales, operating income (loss) and Adjusted EBITDA variances for ~~September 30,~~March 31, 2024 versus March 31, 2023 ~~versus September 30, 2022~~ (millions of dollars):

Sales Southern Timber Pacific Northwest Timber New Zealand Timber Real Estate Trading Intersegment Eliminations Total
Three Months Ended
September 30, 2022
$64.5 $34.4 $72.5 $12.4 $11.6 ($0.1) $195.3
Volume 8.0 (1.0) (2.0) 11.9 (3.9) — 13.0
Price (7.8) (2.4) (0.7) 3.1 (0.8) — (8.6)
Non-timber sales 3.0 (0.3) 9.3 — — — 12.0
Foreign exchange (a) — — (0.6) — — — (0.6)
Other (3.7) (b) (1.4) (b) (8.1) (c) 3.8 (d) (0.1) — (9.5)
Three Months Ended
September 30, 2023
$64.0 $29.3 $70.4 $31.2 $6.8 ($0.1) $201.6


Sales	Southern Timber		Pacific Northwest Timber		New Zealand Timber		Real Estate		Trading	Intersegment Eliminations	Total
Three Months Ended March 31, 2023	$71.8		$34.4		$44.1		$16.3		$12.6	($0.1)	$179.1
Volume	2.7		(2.6)		(0.1)		(0.9)		0.1	—	(0.8)
Price	(1.9)		(0.4)		(1.7)		(1.0)		(0.9)	—	(5.9)
Non-timber sales	(0.3)		—		3.2		—		—	—	2.9
Foreign exchange (a)	—		—		(0.3)		—		—	—	(0.3)
Other	(2.3)	(b)	(6.2)	(b)	0.5	(c)	1.2	(d)	—	—	(6.9)
Three Months Ended March 31, 2024	$70.0		$25.2		$45.7		$15.6		$11.8	($0.1)	$168.1

(a) Net of currency hedging impact.

(b) Includes variance due to stumpage versus delivered sales.

(d) Includes deferred revenue adjustments, revenue true-ups and marketing fees related to Improved Development sales in addition to residential and commercial lease revenue.

Sales Southern Timber Pacific Northwest Timber New Zealand Timber Real Estate Trading Intersegment Eliminations Total
Nine Months Ended
September 30, 2022
$207.6 $119.8 $202.7 $81.0 $52.7 ($0.2) $663.7
Volume 21.1 (10.4) (8.3) (25.0) (14.2) — (36.8)
Price (23.4) (15.3) (2.2) 14.0 (3.9) — (30.8)
Non-timber sales 8.5 0.5 5.4 — 0.1 — 14.5
Foreign exchange (a) — — (3.2) — — — (3.2)
Other (9.7) (b) 1.5 (b) (19.0) (c) 9.5 (d) 0.1 (0.2) (17.8)
Nine Months Ended
September 30, 2023
$204.1 $96.1 $175.4 $79.5 $34.8 ($0.4) $589.5


Operating Income (Loss)	Southern Timber	Pacific Northwest Timber	New Zealand Timber	Real Estate	Trading	Corporate and Other	Total
Three Months Ended March 31, 2023	$22.2	($3.5)	($0.7)	$0.9	$0.3	($8.6)	$10.6
Volume	1.5	(0.2)	—	(0.5)	—	—	0.8
Price (a)	(1.9)	(0.4)	(1.7)	(1.0)	—	—	(5.0)
Cost	1.7	—	0.5	(0.4)	(0.3)	(1.1)	0.4
Non-timber income (b)	(0.5)	—	3.3	—	—	—	2.8
Foreign exchange (c)	—	—	3.4	—	—	—	3.4
Depreciation, depletion & amortization	—	(0.3)	0.3	(0.3)	—	(0.1)	(0.4)
Non-cash cost of land and improved development	—	—	—	0.8	—	—	0.8
Other (d)	—	—	2.3	0.4	—	—	2.8
Three Months Ended March 31, 2024	$23.0	($4.4)	$7.4	($0.1)	—	($9.8)	$16.2

~~(a) Net of currency hedging impact.~~

~~(b) Includes variance due to stumpage versus delivered sales.~~

~~(c) Includes variance due to domestic versus export sales.~~

~~(d) Includes deferred revenue adjustments, revenue true-ups and marketing fees related to Improved Development sales in addition to residential and commercial lease revenue.~~

Operating Income Southern Timber Pacific Northwest Timber New Zealand Timber Real Estate Trading Corporate and Other Total
Three Months Ended
September 30, 2022
$22.5 $2.2 $9.3 $15.7 $0.2 ($9.0) $40.9
Volume 5.0 (0.4) (0.3) 6.7 — — 11.0
Price (a) (7.8) (2.4) (0.7) 3.1 — — (7.8)
Cost (1.7) (1.2) — (2.6) (0.3) (0.4) (6.2)
Non-timber income (b) 2.8 (0.3) 9.3 — — — 11.8
Depreciation, depletion & amortization (2.2) 0.4 — (1.0) — — (2.8)
Non-cash cost of land and improved development — — — 2.5 — — 2.5
Other (c) — 1.1 — (15.2) — — (14.1)
Three Months Ended
September 30, 2023
$18.6 ($0.6) $17.6 $9.2 ($0.1) ($9.4) $35.4

(a)For Timber segments, price reflects net stumpage realizations (i.e., net of cut and haul and shipping costs). For Real Estate, price is presented net of cash closing costs.

(b)For the ~~New Zealand~~Southern Timber segment, includes income from carbon ~~credit sales.~~

~~(c)~~Pacific Northwest Timber includes a $1.1 million timber write-off resulting from a casualty event in Q3 2022. Real Estate includes a gain associated with the multi-family apartment complex sale attributable to NCI in Q3 2022, deferred revenue adjustments, revenue true-upscapture and ~~marketing fees related to Improved Development sales in addition to residential~~storage (“CCS”), solar and ~~commercial lease revenue.~~

Operating Income Southern Timber Pacific Northwest Timber New Zealand Timber Real Estate Trading Corporate and Other Total
Nine Months Ended
September 30, 2022
$76.9 $11.7 $22.7 $37.0 $0.1 ($26.6) $121.7
Volume 13.3 (3.8) (1.5) (13.7) — — (5.7)
Price (a) (23.4) (15.3) (2.2) 14.0 — — (26.9)
Cost (4.4) (2.8) (0.9) (5.7) 0.3 (1.4) (14.9)
Non-timber income (b) 7.5 0.5 5.3 — — — 13.3
Foreign exchange (c) — — (2.0) — — — (2.0)
Depreciation, depletion & amortization (7.3) 2.1 0.2 1.8 — (0.3) (3.5)
Non-cash cost of land and improved development — — — (3.5) — — (3.5)
Other (d) — 1.1 (2.3) (11.2) — — (12.5)
Nine Months Ended
September 30, 2023
$62.6 ($6.5) $19.3 $18.7 $0.4 ($28.3) $66.1

~~(a)For Timber segments, price reflects net stumpage realizations (i.e., net of cut and haul and shipping costs). For Real Estate, price is presented net of cash closing costs.~~

~~(b)~~wind energy contracts. For the New Zealand Timber segment, includes income from carbon credit sales.

(c)Net of currency hedging impact.

(d)~~Pacific Northwest Timber includes a $1.1 million timber write-off resulting from a casualty event in Q3 2022.~~ New Zealand Timber includes a $2.3 million of timber ~~write-off~~write-offs resulting from a casualty ~~event~~events in Q1 2023. Real Estate includes ~~a gain associated with the multi-family apartment complex sale attributable to NCI in Q3 2022,~~ deferred revenue adjustments, revenue true-ups and marketing fees related to Improved Development sales in addition to residential and commercial lease revenue.

Adjusted EBITDA (a) Southern Timber Pacific Northwest Timber New Zealand Timber Real Estate Trading Corporate and Other Total
Three Months Ended
September 30, 2022
$36.6 $12.6 $15.6 $8.4 $0.2 ($8.6) $64.7
Volume 7.9 (0.9) (0.6) 11.9 — — 18.3
Price (b) (7.8) (2.4) (0.7) 3.1 — — (7.8)
Cost (1.7) (1.2) — (2.6) (0.3) (0.4) (6.2)
Non-timber income (c) 2.8 (0.3) 9.3 — — — 11.8
Foreign exchange (d) — — (0.1) — — — (0.1)
Other (e) — — — (1.9) — — (1.9)
Three Months Ended
September 30, 2023
$37.8 $7.8 $23.5 $18.9 ($0.1) ($9.0) $78.9


Adjusted EBITDA (a)	Southern Timber	Pacific Northwest Timber	New Zealand Timber	Real Estate	Trading	Corporate and Other	Total
Three Months Ended March 31, 2023	$42.8	$7.1	$6.1	$6.6	$0.3	($8.2)	$54.7
Volume	2.7	(2.0)	(0.1)	(0.9)	—	—	(0.3)
Price (b)	(1.9)	(0.4)	(1.7)	(1.0)	—	—	(5.0)
Cost	1.7	—	0.5	(0.4)	(0.3)	(1.1)	0.4
Non-timber income (c)	(0.5)	—	3.3	—	—	—	2.8
Foreign exchange (d)	—	—	3.3	—	—	—	3.3
Other (e)	—	—	—	0.3	—	—	0.3
Three Months Ended March 31, 2024	$44.8	$4.7	$11.4	$4.6	—	($9.3)	$56.2

(a)Adjusted EBITDA is a non-GAAP measure defined and reconciled in Performance and Liquidity Indicators below.

(b)For Timber segments, price reflects net stumpage realizations (i.e., net of cut and haul and shipping costs). For Real Estate, price is presented net of cash closing costs.

(c)For the Southern Timber segment, includes income from carbon capture and storage (“CCS”), solar and wind energy contracts. For the New Zealand Timber segment, includes income from carbon credit sales.

(d)Net of currency hedging impact.

(e)Real Estate includes deferred revenue adjustments, revenue true-ups and marketing fees related to Improved Development sales in addition to residential and commercial lease revenue. ~~The prior year period included a $4.5 million gain associated with a multi-family apartment complex sale attributable to Rayonier.~~

Adjusted EBITDA (a) Southern Timber Pacific Northwest Timber New Zealand Timber Real Estate Trading Corporate and Other Total
Nine Months Ended
September 30, 2022
$123.7 $48.4 $40.8 $58.4 $0.1 ($25.7) $245.8
Volume 20.8 (9.1) (2.3) (25.0) — — (15.6)
Price (b) (23.4) (15.3) (2.2) 14.0 — — (26.9)
Cost (4.4) (2.8) (0.9) (5.7) 0.3 (1.4) (14.9)
Non-timber income (c) 7.5 0.5 5.3 — — — 13.3
Foreign exchange (d) — — (2.8) — — — (2.8)
Other (e) — — — 4.1 — — 4.1
Nine Months Ended
September 30, 2023
$124.2 $21.7 $37.9 $45.8 $0.4 ($27.1) $202.9

~~(a)Adjusted EBITDA is a non-GAAP measure defined and reconciled in~~ ~~Performance and Liquidity Indicatorsbelow.~~

~~(b)For Timber segments, price reflects net stumpage realizations (i.e., net of cut and haul and shipping costs). For Real Estate, price is presented net of cash closing costs.~~

~~(c)For the New Zealand Timber segment, includes carbon credit sales.~~

~~(d)Net of currency hedging impact.~~

~~(e)~~Real Estate includes deferred revenue adjustments, revenue true-ups and marketing fees related to Improved Development sales in addition to residential and commercial lease revenue. The prior year period included a $4.5 million gain associated with a multi-family apartment complex sale attributable to Rayonier.

SOUTHERN TIMBER

~~Third~~ First quarter sales of ~~$64.0~~$70.0 million decreased ~~$0.6~~$1.9 million, or 1%3%, versus the prior year ~~period~~.period. Harvest volumes increased ~~21%~~6% to ~~1.81~~2.01 million tons versus ~~1.50~~1.89 million ~~tons in~~ ~~the prior year period, primarily driven by additional volume from acquisitions completed in the fourth quarter of 2022. Average pine sawtimber stumpage realizations decreased 13% to $28.85 per ton versus $33.31 per ton in~~ ~~the prior year period~~, primarily due to drier weather conditions, softer demand from sawmills, and decreased competition from pulp mills for chip-n-saw volume. Average pine pulpwood stumpage realizations decreased 27% to $16.54 per ton versus $22.77 per ton in ~~the prior year period due to~~ ~~weaker end-market demand and drier weather conditions. Overall, weighted-average stumpage realizations (including hardwood) decreased 17% to $21.48 per ton versus $25.80 per ton in~~ ~~the prior year period. Operating income of $18.6 million decreased $3.8 million versus~~ ~~the prior year period~~ due to lower net stumpage realizations ($7.8 million), higher depletion rates ($2.2 million), and higher overhead and other costs ($1.7 million), partially offset by higher volumes ($5.0 million) and higher non-timber income ($2.8 million). Third quarter Adjusted EBITDA of $37.8 million was 3%, or $1.2 million, above ~~the prior year period~~.

~~Year-to-date sales of $204.1 million decreased $3.5 million, or 2%, versus~~ ~~the prior year period. Harvest volumes increased 16% to 5.71 million tons versus 4.92 million tons in~~ ~~the prior year period~~, primarily driven by the additional volume contributions from acquisitions completed in the fourth quarter of 2022. Average pine sawtimber stumpage realizations decreased 13% to $29.87 per ton versus $34.40 per ton in ~~the prior year period~~, primarily due to drier weather conditions, softer demand from sawmills, and decreased competition from pulp mills for chip-n-saw volume. Average pine pulpwood stumpage realizations decreased 28% to $16.53 per ton versus $22.88 per ton in ~~the prior year period~~ as weaker end-market demand, drier weather conditions, extended maintenance outages at pulp mills, and unfavorable geographical mix all contributed to softer market conditions. Overall, weighted-average stumpage realizations (including hardwood) decreased 15% to $22.46 per ton versus $26.55 per ton in ~~the prior year period. Operating income of $62.6 million decreased $14.3 million versus~~ ~~the prior year period~~ due to lower net stumpage realizations ($23.4 million), higher depletion rates ($7.3 million), and higher overhead and other costs ($4.4 million), partially offset by higher volumes ($13.3 million) and higher non-timber income ($7.5 million). Year-to-date Adjusted EBITDA of $124.2 million was $0.5 million above ~~the prior year period~~.

~~PACIFIC NORTHWEST TIMBER~~

~~Third quarter sales of $29.3 million decreased $5.1 million, or 15%, versus~~ ~~the prior year period. Harvest volumes decreased 6% to 290,000 tons versus 307,000~~ tons in the prior year period, as ~~some planned harvests~~we benefited from weather-related constraints on competing supply. Average pine sawtimber stumpage realizations decreased 3% to $30.62 per ton versus $31.57 per ton in the prior year period, primarily due to a less favorable geographic mix. Average pine pulpwood stumpage realizations decreased 2% to $16.89 per ton versus $17.32 per ton in the prior year period, which was also primarily driven by an unfavorable geographic mix. Overall, weighted-average net stumpage realizations (including hardwood) decreased 4% to $23.07 per ton versus $24.03 per ton in the prior year period. Non-timber sales of $9.1 million decreased 3% versus the prior year period, as lower pipeline easement revenues were ~~deferred~~partially offset by growth in ~~response~~our land-based solutions business. Operating income of $23.0 million increased $0.8 million versus the prior year period due to ~~soft market conditions.~~favorable costs ($1.7 million) and higher volumes ($1.5 million), partially offset by lower net stumpage realizations ($1.9 million) and lower non-timber income ($0.5 million). First quarter Adjusted EBITDA of $44.8 million was 5%, or $2.0 million, above the prior year period.

PACIFIC NORTHWEST TIMBER

First quarter sales of $25.2 million decreased $9.2 million, or 27%, versus the prior year period. Harvest volumes decreased 17% to 317,000 tons versus 384,000 tons in the prior year period, primarily due to the Large Disposition we completed in Oregon in late 2023. Average delivered prices for domestic sawtimber decreased ~~10%~~9% to ~~$108.20~~$84.31 per ton versus ~~$120.08~~$93.12 per ton in the prior year period due to a combination of weaker demand from domestic ~~and~~lumber mills, reduced export market ~~demand.~~tension, and an unfavorable species mix, as a lower proportion of Douglas-Fir sawtimber was harvested in the current year period. Average delivered pulpwood prices decreased ~~35%~~39% to ~~$33.09~~$29.31 per ton versus ~~$50.74~~$48.23 per ton in the prior year period, as supply constraints and strong end-market demand significantly benefited the prior year ~~period benefited from much stronger end-market demand.~~period. An operating loss of ~~$0.6~~$4.4 million versus an operating ~~income~~loss of ~~$2.2~~$3.5 million in the prior year period was driven by lower net stumpage

realizations ($~~2.4~~0.4 million), higher ~~costs~~depletion expense ($~~1.2~~0.3 million), and lower volumes ($~~0.4 million) and lower non-timber income ($0.3 million), partially offset by lower depletion rates ($0.4 million) and the prior year period write-off of timber basis due to a fire in Washington ($1.1~~0.2 million). ~~Third~~First quarter Adjusted EBITDA of ~~$7.8~~$4.7 million was ~~38%~~34%, or ~~$4.8 million, below the prior year period.~~

~~Year-to-date sales of $96.1 million decreased $23.8 million, or 20%, versus~~ ~~the prior year period~~. Harvest volumes decreased 15% to 1.01 million tons versus 1.19 million tons in the prior year period as some planned harvests have been deferred in response to soft market conditions. Average delivered prices for domestic sawtimber decreased 13% to $98.89 per ton versus $114.20 per ton in ~~the prior year period~~ ~~due to weaker domestic and export market demand, as well as less competition from export markets. Average delivered pulpwood prices decreased 8% to $40.67 per ton versus $44.44 per ton in~~ ~~the prior year period as the~~ prior year period benefited from stronger end-market demand. Operating loss of $6.5 million decreased $18.2 million versus the prior year period due to lower net stumpage realizations ($15.3 million), lower volumes ($3.8 million), and higher costs ($2.8 million), partially offset by lower depletion rates ($2.1 million), the prior year period write-off of timber basis due to a fire in Washington ($1.1 million), and higher non-timber income ($0.5 million). Year-to-date Adjusted EBITDA of $21.7 million was 55%, or $26.7$2.4 million, below the prior year period.

NEW ZEALAND TIMBER

~~Third~~ First quarter sales of ~~$70.4~~$45.7 million ~~decreased $2.0~~increased $1.6 million, or 3%4%, versus the prior year ~~period. Harvest~~period. Sales volumes ~~decreased 3% to 690,000~~of 480,000 tons ~~versus 712,000 tons in~~ ~~the prior year period, as some planned harvests~~ were ~~deferred in response to soft market conditions. Average delivered prices for export sawtimber decreased 23% to $95.23 per ton versus $123.07 per ton in~~ ~~the prior year period~~, primarily due to weaker demand in China and increased supply from Cyclone Gabrielle salvage volume. Despite the significant decline in delivered pricing, export sawtimber net stumpage realizations were down only 4% due to significantly lower port and freight costsrelatively flat versus the prior year period. Average delivered prices for ~~domestic~~export sawtimber ~~declined 9%~~decreased 4% to ~~$63.45~~$108.72 per ton versus ~~$69.69~~$112.97 per ton in the prior year period,. driven by weaker construction demand in China. Average delivered prices for domestic sawtimber declined 5% to $68.13 per ton versus $71.58 per ton in the prior year period. The decrease in domestic sawtimber prices ~~(in U.S. dollar terms)~~ was primarily driven ~~in part~~ by weaker domestic demand and decreased competition from export markets, coupled with the decline in the NZ$/US$ exchange rate (US$~~0.61~~0.62 per NZ$1.00 versus US$~~0.62~~0.63 per NZ$1.00). Excluding the impact of foreign exchange rates, domestic sawtimber prices decreased 7%3% versus the prior year ~~period, reflecting weaker domestic demand and decreased competition from export markets. Third~~period. First quarter non-timber / carbon

credit sales totaled ~~$15.6~~$3.5 million versus ~~$6.4~~$0.3 million in the prior year ~~period, as increased volumes were sold into the market following a significant uptick in NZU pricing.~~period. Operating income of ~~$17.6~~$7.4 million increased ~~$8.3~~$8.1 million versus the prior year period ~~primarily~~ due to favorable foreign exchange impacts ($3.4 million), higher carbon credit ~~sales~~income ($~~9.3~~3.3 million), ~~partially offset by lower net stumpage realizations ($0.7 million) and lower volumes ($0.3 million). Third quarter Adjusted EBITDA of $23.5 million was 51%, or $7.9 million, above~~ the prior year ~~period~~.

~~Year-to-date sales~~write-off of ~~$175.4 million decreased $27.3 million, or 13%, versus~~ ~~the prior year period. Harvest volumes decreased 4% to 1.84 million tons versus 1.93 million tons in~~ ~~the prior year period, primarily~~timber basis due to lost production days resulting from Cyclone Gabrielle in the first quarter and the deferral of planned harvests in response to soft market conditions. Average delivered prices for export sawtimber decreased 21% to $102.93 per ton versus $130.71 per ton in ~~the prior year period, driven by increased salvage volume from Cyclone Gabrielle and weaker demand in China. Average delivered prices for domestic sawtimber decreased 8% to $67.46 per ton versus $73.72 per ton in~~ ~~the prior year period~~. The decrease in domestic sawtimber prices (in U.S. dollar terms) was partially driven by the decline in the NZ$/US$ exchange rate (US$0.62 per NZ$1.00 versus US$0.65 per NZ$1.00). Excluding the impact of foreign exchange rates, domestic sawtimber prices decreased 4% versus ~~the prior year period, reflecting weaker domestic demand and decreased competition from export markets. Operating income of $19.3 million decreased $3.4 million versus~~ ~~the prior year period~~ ~~due to a timber write-off resulting from~~ a tropical cyclone casualty event ($2.3 million), lower ~~net stumpage realizations ($2.2 million), unfavorable foreign exchange impacts ($2.0 million), lower volumes ($1.5 million), and higher~~ costs ($~~0.9~~0.5 million), ~~partially offset by higher carbon credit sales ($5.3 million)~~ and lower depletion rates ($~~0.2~~0.3 million), partially offset by lower net stumpage realizations ($1.7 million). ~~Year-to-date~~First quarter Adjusted EBITDA of ~~$37.9~~$11.4 million was 7%88%, or ~~$2.9~~$5.4 million, ~~below~~ above the prior year ~~period~~.period.

REAL ESTATE

~~Third~~First quarter sales of ~~$31.2 million increased $18.7 million versus~~ ~~the prior year period, while operating income of $9.2~~$15.6 million decreased ~~$6.6~~$0.7 million ~~versus~~ ~~the prior year period~~. Prior year third quarter operating income included an $11.5 million gain attributable to noncontrolling interests associated with the Bainbridge Island multi-family apartment complex sale. Sales increased versus the prior year period, ~~primarily~~while operating loss of $0.1 million decreased $1.0 million versus the prior year period. Sales and operating income decreased versus the prior year period due to ~~a higher number of~~fewer acres sold ~~(4,281~~(1,933 acres sold versus ~~1,828~~2,087 acres sold in the prior year period) and ~~an increase in~~lower weighted-average prices ($~~5,781~~5,774 per acre versus ~~$5,064~~$6,200 per acre in the prior year ~~period~~).

period), partially offset by favorable deferred revenue adjustments.

Improved Development sales of ~~$3.1 million included~~ $1.8 million ~~from~~consisted of two transactions in the Heartwood development project south of Savannah, Georgia, including a 3.1-acre multi-tenant retail parcel for $1.0 million ($321,000 per acre) and ~~$1.4 million from the Wildlight development project north of Jacksonville, Florida. Sales in Heartwood consisted of 24~~18 finished residential lots for ~~$1.1~~$0.8 million ~~($45,000~~(a base price before true-up of $46,000 per lot or $290,000 per acre) and a 1.3-acre commercial parcel to be used for a quick-service restaurant for $0.7 million ($531,000 per acre). Sales in Wildlight consisted of a 2-acre commercial parcel to be used for a convenience store for $1.4 million ($735,000$284,000 per acre). This compares to Improved Development sales of ~~$2.3~~$4.8 million ~~in the prior year period.~~

~~Unimproved Development sales of $0.1 million consisted of a 10-acre transaction for $11,250 per acre. There were no Unimproved Development sales~~ in the prior year period.

Rural sales of ~~$20.5~~$8.7 million consisted of ~~3,799~~1,498 acres at an average price of ~~$5,386~~$5,828 per acre. This compares to prior year period sales of ~~$7.0~~$6.5 million, which consisted of ~~1,809~~1,531 acres at an average price of ~~$3,848~~$4,245 per acre.

Timberland & Non-Strategic sales of ~~$1.1~~$0.6 million consisted of ~~466 acres at an average price of $2,266~~a 430-acre transaction for $1,421 per acre. ~~There were no Timberland & Non-Strategic sales in the~~This compares to prior year ~~period.~~period sales of $1.6 million, which consisted of a 528-acre transaction for $3,100 per acre.

~~Third~~First quarter Adjusted EBITDA of ~~$18.9 million increased $10.5 million versus~~ ~~the prior year period~~.

~~Year-to-date sales of $79.5~~$4.6 million decreased ~~$1.5 million versus~~ ~~the prior year period, while operating income of $18.7 million decreased $18.2 million versus~~ ~~the prior year period~~. Prior year period operating income included an $11.5 million gain attributable to noncontrolling interests associated with the Bainbridge Island multi-family apartment complex sale. Sales and operating income decreased in the first nine months primarily due to lower volumes (10,122 acres sold versus 15,256 acres sold in the prior year period), partially offset by higher weighted-average prices ($6,501 per acre versus $5,084 per acre in the prior year period). Year-to-date Adjusted EBITDA of $45.8 million decreased $12.7$2.0 million versus the prior year period.

TRADING

~~Third~~First quarter sales of ~~$6.8~~$11.8 million decreased ~~$4.8 million versus~~ ~~the prior year period~~ ~~due to lower volumes and prices. Sales volumes decreased 35% to 61,000 tons versus 95,000 tons in~~ ~~the prior year period. The Trading segment generated an operating loss of $0.1 million versus operating income of $0.2 million in~~ ~~the prior year period.~~

~~Year-to-date sales of $34.8 million decreased $18.0~~$0.8 million versus the prior year period, primarily due to lower ~~volumes and~~ prices. Sales volumes ~~decreased 28% to 301,000~~of 105,000 tons remained flat versus ~~415,000 tons~~the prior year period. The Trading segment generated breakeven results versus operating income of $0.3 million in the prior year ~~period. Year-to-date operating income and Adjusted EBITDA of $0.4 million increased $0.3 million versus the prior year~~ period ~~as improved margins more than offset reduced trading volume.~~.

OTHER ITEMS

CORPORATE AND OTHER EXPENSE / ELIMINATIONS

~~Third~~ First quarter corporate and other operating expenses of ~~$9.4~~$9.8 million increased ~~$0.5~~$1.2 million ~~versus~~ ~~the prior year period, primarily driven by higher compensation and benefits expenses.~~

~~Year-to-date corporate and other operating expenses of $28.3 million increased $1.7 million versus~~ ~~the prior year period, primarily due to higher compensation and benefits expenses.~~

~~INTEREST EXPENSE~~

~~Third quarter and year-to-date interest expense of $12.6 million and $36.7 million increased $3.5 million and $10.3 million, respectively,~~ versus the prior year period, primarily due to higher compensation and benefits expenses and professional services fees. Compensation and benefits expenses were elevated versus the prior year quarter primarily due to the acceleration of equity compensation expense for retirement-eligible employees.

INTEREST EXPENSE

First quarter interest expense of $9.7 million decreased $2.0 million versus the prior year period, primarily due to lower average outstanding ~~debt and a higher weighted-average interest rate.~~debt.

INTEREST AND OTHER MISCELLANEOUS (EXPENSE) INCOME, NET

~~Year-to-date~~ First quarter interest and other miscellaneous (expense) income includes ~~$20.5~~a $5.7 million pension settlement charge and $1.3 million of net costs associated with legal settlements. The prior year period includes $9.1 million of net recoveries associated with legal ~~settlements~~.settlements.

INCOME TAX ~~EXPENSE~~BENEFIT (EXPENSE)

~~Third~~First quarter ~~and year-to-date~~net income tax benefit of $0.8 million versus income tax expense of ~~$0.6~~$1.1 million ~~and $1.8 million decreased $0.7 million and $6.3 million, respectively, versus~~in the prior year ~~period. The New Zealand subsidiary is~~period was primarily due to a $1.2 million tax benefit associated with the ~~primary driver of income tax expense.~~pension termination and settlement.

5446

OUTLOOK

In our Southern Timber segment, we anticipate lower quarterly harvest volumes for the remainder of the year. We expect that pine stumpage realizations will decrease modestly over the remainder of the year due to a less favorable geographic mix and a relatively higher proportion of thinning volume. Further, we continue to expect higher non-timber income for full-year ~~2023 as compared~~2024 relative to full-year ~~2022,~~2023 driven by growth in our ~~Land-Based Solutions businesses.~~ land-based solutions business.

In our Pacific Northwest Timber segment, we expect ~~continued softness in end-market demand for~~harvest volumes to increase during the ~~balance~~second half of the year. We believe that market conditions have generally stabilized, and we expect that end-market demand will improve modestly over the course of the year. We further expect weighted-average delivered log prices will increase modestly into the second half of the year as mill inventories continue to normalize.

In our New Zealand Timber segment, we anticipate higher quarterly harvest volumes for the remainder of the year. We expect weighted-average log prices to ~~remain active~~decline modestly in the near term before rebounding in the second half of the year due to lower expected log supply into China. Following the recent pull back in carbon ~~market following~~credit pricing, we now anticipate the ~~uptick in NZU pricing during the third quarter; however, we anticipate a lower~~full-year contribution from carbon credit sales ~~relative~~ to be comparable with the ~~third quarter.~~ prior year.

In our Real Estate segment, ~~the demand for HBU properties~~we expect higher transaction volume and ~~timberland assets has remained strong despite the higher interest rate environment. We expect a significant contribution from our Real Estate segment~~operating results in the ~~fourth quarter based on transaction volume expected to close.~~second quarter.

LIQUIDITY AND CAPITAL RESOURCES

Our principal source of cash is cash flow from operations, primarily the harvesting of timber and sales of real estate. As an UPREIT, our main use of cash is dividends and unitholder distributions. We also use cash to maintain the productivity of our timberlands through replanting and silviculture. Our operations have generally produced consistent cash flow and required limited capital resources. Short-term borrowings have helped fund working capital needs, while acquisitions of timberlands generally require funding from external sources or Large Dispositions.

UPDATE ON INITIATIVES TO ENHANCE SHAREHOLDER VALUE

We are continuing to make progress toward our $1 billion disposition target, and we are actively evaluating several large-scale transactions. Specifically, we are currently marketing approximately 115,000 acres in Washington state, and we have further identified approximately 100,000 acres in the U.S. South that may be suitable for disposition. In addition, we are evaluating strategic alternatives for our New Zealand joint venture interest and have engaged a financial advisor to assist us with this process. We expect to provide additional information as it becomes available.

SUMMARY OF LIQUIDITY AND FINANCING COMMITMENTS


		September 30,		December 31,
	March 31,								March 31,			December 31,
(millions of dollars)	(millions of dollars)	2023		2022		(millions of dollars)	2024			2023
Cash and cash equivalents	Cash and cash equivalents	$107.8		$114.3

Total debt (a)
Total debt (a)
Total debt (a)	Total debt (a)	1,519.0		1,523.1
Noncontrolling interests in the operating partnership	Noncontrolling interests in the operating partnership	69.8		105.8
Shareholders’ equity	Shareholders’ equity	1,832.3		1,880.7

Total capitalization (total debt plus permanent and temporary equity)	Total capitalization (total debt plus permanent and temporary equity)	3,421.1		3,509.6
Total capitalization (total debt plus permanent and temporary equity)
Total capitalization (total debt plus permanent and temporary equity)
Debt to capital ratio	Debt to capital ratio	44	%	43	%	Debt to capital ratio	42	%		41	%
Net debt to enterprise value (b)(c)	Net debt to enterprise value (b)(c)	25	%	22	%	Net debt to enterprise value (b)(c)	19	%		19	%

(a)Total debt as of ~~September 30, 2023~~March 31, 2024 and December 31, ~~2022~~2023 reflects principal on long-term debt, gross of deferred financing costs and unamortized discounts.

(b)Net debt is calculated as total debt less cash and cash equivalents.

(c)Enterprise value based on market capitalization (including Rayonier, L.P. “OP” units) plus net debt based on Rayonier’s share price of ~~$28.46~~$33.24 and ~~$32.96~~$33.41 as of ~~September 30, 2023~~March 31, 2024 and December 31, ~~2022,~~2023, respectively.

AT-THE-MARKET (“ATM”) EQUITY OFFERING PROGRAM

On November 4, 2022 we entered into a new distribution agreement with a group of sales agents through which we may sell common shares, from time to time, having an aggregate sales price of up to $300 million (the “2022 ATM Program”). As of ~~September 30, 2023,~~March 31, 2024, $269.7 million remains available for issuance under the ~~program.~~2022 ATM Program.

The following table outlines common share issuances pursuant to our ATM program (dollars in millions):

Three Months Ended
September 30, Nine Months Ended September 30,
2023 2022 2023 2022
Shares of common stock issued under the ATM program — — 400 726,248
Average price per share sold under the ATM program — — $34.03 $41.46
Gross proceeds from common shares issued under the ATM program — — — $30.1


	Three Months Ended March 31,
		2024	2023
Common shares issued under the ATM program		—	400
Average price of common shares issued under the ATM program		—	$34.03
Gross proceeds from common shares issued under the ATM program		—	—
Commissions		—	—

CASH FLOWS

The following table summarizes our cash flows from operating, investing and financing activities for the ~~nine~~three months ended ~~September 30, 2023~~March 31, 2024 and ~~2022:~~2023:


(millions of dollars)	(millions of dollars)	2023	2022	(millions of dollars)	2024	2023
Cash provided by (used for):	Cash provided by (used for):
Operating activities	Operating activities	$208.9	$209.9
Operating activities
Operating activities
Investing activities	Investing activities	(79.7)	(55.9)
Financing activities	Financing activities	(134.2)	(237.6)

CASH PROVIDED BY OPERATING ACTIVITIES

Cash provided by operating activities decreased ~~$1.0~~$11.7 million from the prior year period primarily due to ~~lower operating results and~~ changes in working capital.

CASH USED FOR INVESTING ACTIVITIES

Cash used for investing activities ~~increased $23.8~~decreased $8.2 million from the prior year period due to ~~higher~~lower cash used for timberland acquisitions ($~~10.7~~8.7 million)~~, higher~~ and lower real estate development investments ($~~7.8~~2.3 million), ~~higher capital expenditures ($4.9 million), and~~partially offset by lower proceeds from other investing activities ($~~0.3~~2.7 million) and higher capital expenditures ($0.1 million).

CASH USED FOR FINANCING ACTIVITIES

Cash used for financing activities ~~decreased $103.5~~increased $32.0 million from the prior year period. This is primarily due to ~~lower net repayments~~higher dividends paid on common shares ($~~125.0~~30.1 million), ~~lower~~higher distributions to noncontrolling interests in consolidated affiliates ($~~16.5~~1.7 million), and ~~lower~~higher distributions to noncontrolling interests in the operating partnership ($~~0.5~~0.3 million), partially offset by lower net proceeds from the issuance of common shares under the ATM equity offering program ($32.0 million), higher dividends paid on common shares ($4.0 million), and lower proceeds from the issuance of common shares under the Company’s incentive stock plan ($2.6 million).

FUTURE USES OF CASH

We expect future uses of cash to include working capital requirements, principal and interest payments on long-term debt, lease payments, capital expenditures, real estate development investments, timberland acquisitions, dividends on Rayonier Inc. common shares and distributions on Rayonier, L.P. units, distributions to noncontrolling interests, and repurchases of the Company’s common shares to satisfy other commitments.

Significant long-term uses of cash include the following (in millions):


Future uses of cash (in millions)	Future uses of cash (in millions)	Total	Payments Due by Period				Future uses of cash (in millions)	Total	Payments Due by Period
			2023	2024-2025	2026-2027	Thereafter			2024	2025-2026	2027-2028	Thereafter

Long-term debt (a)

Long-term debt (a)

Long-term debt (a)	Long-term debt (a)	$1,519.0	—	$20.7	$498.3	$1,000.0
Interest payments on long-term debt (b)	Interest payments on long-term debt (b)	408.7	24.6	171.8	143.2	69.1
Operating leases — timberland (c)	Operating leases — timberland (c)	182.4	4.1	16.1	14.4	147.8
Operating leases — PP&E, offices (c)	Operating leases — PP&E, offices (c)	6.0	0.4	2.0	0.9	2.7
Commitments — real estate projects	Commitments — real estate projects	40.3	11.1	19.0	2.3	7.9
Commitments — derivatives (d)	Commitments — derivatives (d)	5.1	1.6	3.0	0.5	—
Commitments — environmental remediation (e)	Commitments — environmental remediation (e)	15.7	1.7	9.7	1.3	3.0
Commitments — other (f)	Commitments — other (f)	10.3	0.1	10.2	—	—
Total	Total	$2,187.5	$43.6	$252.5	$660.9	$1,230.5

(a)The book value of long-term debt, net of deferred financing costs and unamortized discounts, is currently recorded at ~~$1,511.5~~$1,362.0 million on our Consolidated Balance Sheets, but upon maturity the liability will be ~~$1,519.0~~$1,368.7 million. See Note 6 - Debt for additional information.

(b)Projected interest payments for variable-rate debt were calculated based on outstanding principal amounts and interest rates as of ~~September 30, 2023.~~March 31, 2024 and excludes the impact of hedging.

(c)Excludes anticipated renewal options.

(d)Commitments — derivatives represent payments expected to be made on derivative financial instruments (foreign exchange contracts). See Note 7 — Derivative Financial Instruments and Hedging Activities for additional information.

(e)Commitments — environmental remediation represents our estimate of potential liability associated with environmental contamination and Natural Resource Damages in Port Gamble, Washington. See Note 10 - Environmental and Natural Resource Damage Liabilities for additional information.

(f)Commitments — other includes ~~$8.9~~$1.2 million related to the pension plan termination. See Note 15 - Employee Benefit Plans for additional information.

We expect to fund future uses of cash with a combination of existing cash balances, cash generated by operating activities, the remaining issuances available under the Company’s ATM Program, Large Dispositions and the use of our revolving credit facilities. We believe we have sufficient sources of funding to meet our business requirements for the next 12 months and in the longer term.

EXPECTED ~~2023~~2024 EXPENDITURES

Capital expenditures in ~~2023~~2024 are expected to be between $83 million and ~~$87~~$88 million, excluding any strategic timberland acquisitions we may make. Capital expenditures are expected to primarily consist of seedling planting, fertilization and other silvicultural activities, property taxes, lease payments, allocated overhead and other capitalized costs. Aside from capital expenditures, we may also acquire timberland as we actively evaluate acquisition opportunities.

We anticipate real estate development investments in ~~2023~~2024 to be between ~~$20~~$30 million and ~~$23~~$34 million, net of reimbursements from community development bonds. Expected real estate development investments are primarily related to Wildlight, our mixed-use community development project located north of Jacksonville, Florida and Heartwood, our mixed-use development project located in Richmond Hill just south of Savannah, Georgia.

Our ~~2023~~2024 dividend payments on Rayonier Inc. common shares and distributions to Rayonier, L.P. unitholders, excluding the additional dividend and distribution paid on January 12, 2024 to shareholders of record on December 29, 2023, are expected to be approximately ~~$170~~$171 million and $3$2 million, respectively, assuming no change in the quarterly dividend rate of $0.285 per share or partnership unit, or material changes in the number of shares or partnership units outstanding.

Future share repurchases, if any, will depend on the Company’s liquidity and cash flow, as well as general market conditions and other considerations including capital allocation priorities.

We made cash contributions in 2024 of $2.7 million in order to fund the Defined Benefit Plan on a plan termination basis. Additionally, we anticipate settling the Excess Benefit Plan with lump sum payments upon termination of the Defined Benefit Plan with cash contributions of approximately $1.2 million. See Note 15 — Employee Benefit Plans for additional information.

Full-year ~~2023~~2024 cash tax payments are expected to be between $5.0 million and ~~$7.0~~$8.0 million, primarily related to the New Zealand subsidiary.

~~See~~ ~~Note 1 – Basis of Presentation~~ ~~for information regarding subsequent events that are expected to impact our future sources and uses of cash.~~

OFF-BALANCE SHEET ARRANGEMENTS

We utilize off-balance sheet arrangements to provide credit support for certain suppliers and vendors in case of their default on critical obligations, and collateral for outstanding claims under our previous workers’ compensation self-insurance programs. These arrangements consist of standby letters of credit and surety bonds. As part of our ongoing operations, we also periodically issue guarantees to third parties. Off-balance sheet arrangements are not considered a source of liquidity or capital resources and do not expose us to material risks or material unfavorable financial impacts. See Note 11 — Guarantees for details on the letters of credit and surety bonds as of ~~September 30, 2023.~~March 31, 2024.

SUMMARY OF GUARANTOR FINANCIAL INFORMATION

In May 2021, Rayonier, L.P. issued $450 million of 2.75% Senior Notes due 2031 (the “Senior Notes due 2031”). Rayonier TRS Holdings Inc., Rayonier Inc., and Rayonier Operating Company, LLC agreed to irrevocably, fully and unconditionally guarantee jointly and severally, the obligations of Rayonier, L.P. in regards to the Senior Notes due 2031. As a general partner of Rayonier, L.P., Rayonier Inc. consolidates Rayonier, L.P. and has no material assets or liabilities other than its interest in Rayonier, L.P. These notes are unsecured and unsubordinated and will rank equally with all other unsecured and unsubordinated indebtedness from time to time outstanding.

Rayonier, L.P. is a limited partnership, in which Rayonier Inc. is the general partner. The operating subsidiaries of Rayonier, L.P. conduct all of our operations. Rayonier, L.P.’s most significant assets are its interest in operating subsidiaries, which have been excluded in the table below to eliminate intercompany transactions between the issuer and guarantors and to exclude investments in non-guarantors. As a result, our ability to make required payments on the notes depends on the performance of our operating subsidiaries and their ability to distribute funds to us. There are no material restrictions on dividends from the operating subsidiaries.

The summarized balance sheet information for the consolidated obligor group of debt issued by Rayonier, L.P. for the ~~nine~~three months ended ~~September 30, 2023~~March 31, 2024 and year ended December 31, ~~2022~~2023 are provided in the table below:

(in millions)

September 30, 2023

December 31, 2022

(in millions)

March 31, 2024

December 31, 2023

Current assets

$89.9

$112.2

Non-current assets

128.3

122.8

Current liabilities

21.7

19.8

Non-current liabilities

2,223.3

2,001.9

Due to non-guarantors

747.5

520.4

The summarized results of operations information for the consolidated obligor group of debt issued by Rayonier, L.P. for the ~~nine~~three months ended ~~September 30, 2023~~March 31, 2024 and year ended December 31, ~~2022~~2023 are provided in the table below:

(in millions)

September 30, 2023

December 31, 2022

(in millions)

March 31, 2024

December 31, 2023

Cost and expenses

($23.5)

($28.9)

Operating loss

(23.4)

(28.9)

Net loss

(50.9)

(54.3)

Revenue from non-guarantors

641.5

977.9

PERFORMANCE AND LIQUIDITY INDICATORS

The discussion below is presented to enhance the reader’s understanding of our operating performance, liquidity, and ability to generate cash and satisfy rating agency and creditor requirements. This information includes two measures of financial results: Adjusted Earnings before Interest, Taxes, Depreciation, Depletion and Amortization (“Adjusted EBITDA”) and Cash Available for Distribution (“CAD”). These measures are not defined by Generally Accepted Accounting Principles (“GAAP”), and the discussion of Adjusted EBITDA and CAD is not intended to conflict with or change any of the GAAP disclosures described above.

Management uses CAD as a liquidity measure. CAD is a non-GAAP measure of cash generated during a period that is available for common share dividends, distributions to operating partnership unitholders, distributions to noncontrolling interests, repurchase of the Company’s common shares, debt reduction, timberland acquisitions and real estate development investments. CAD is defined as cash provided by operating activities adjusted for capital spending (excluding timberland acquisitions and real estate development investments) and working capital and other balance sheet changes. CAD is not necessarily indicative of the CAD that may be generated in future periods.

Management uses Adjusted EBITDA as a performance measure. Adjusted EBITDA is a non-GAAP measure that management uses to make strategic decisions about the business and that investors can use to evaluate the operational performance of the assets under management. It excludes specific items that management believes are not indicative of the Company’s ongoing operating results. We define Adjusted EBITDA as earnings before interest, taxes, depreciation, depletion, amortization, the non-cash cost of land and improved development, non-operating income and expense, ~~the gain associated with the multi-family apartment complex sale attributable to noncontrolling interests,~~ timber write-offs resulting from casualty events and Large Dispositions.

We reconcile Adjusted EBITDA to Net Income for the consolidated Company and to Operating Income for the segments, as those are the most comparable GAAP measures for each. The following table provides a reconciliation of Net Income to Adjusted EBITDA for the respective periods (in millions of dollars):


		Three Months Ended March 31,
		Three Months Ended March 31,
		Three Months Ended March 31,

		Three Months Ended September 30,		Nine Months Ended September 30,
		2023	2022	2023	2022
Net Income to Adjusted EBITDA Reconciliation	Net Income to Adjusted EBITDA Reconciliation
Net Income to Adjusted EBITDA Reconciliation
Net Income to Adjusted EBITDA Reconciliation
Net Income
Net Income
Net Income	Net Income	$22.7	$31.9	$49.3	$88.1

Interest, net and miscellaneous income	Interest, net and miscellaneous income	12.0	7.9	35.5	25.0
Income tax expense		0.6	1.2	1.8	8.1

Interest, net and miscellaneous income

Interest, net and miscellaneous income
Income tax (benefit) expense (a)
Income tax (benefit) expense (a)
Income tax (benefit) expense (a)
Depreciation, depletion and amortization
Depreciation, depletion and amortization
Depreciation, depletion and amortization	Depreciation, depletion and amortization	37.0	31.1	114.3	114.2
Non-cash cost of land and improved development	Non-cash cost of land and improved development	6.6	3.1	20.2	20.3
Gain associated with the multi-family apartment complex sale attributable to NCI (a)		—	(11.5)	—	(11.5)
Non-cash cost of land and improved development
Non-cash cost of land and improved development

Timber write-offs resulting from casualty events (b)

Timber write-offs resulting from casualty events (b)

Timber write-offs resulting from casualty events (b)	Timber write-offs resulting from casualty events (b)	—	1.1	2.3	1.1
Non-operating expense (income) (c)	Non-operating expense (income) (c)	0.1	(0.1)	(20.5)	0.5
Non-operating expense (income) (c)
Non-operating expense (income) (c)
Adjusted EBITDA	Adjusted EBITDA	$78.9	$64.7	$202.9	$245.8
Adjusted EBITDA
Adjusted EBITDA

(a)~~Gain associated with~~The three months ended March 31, 2024 includes a $1.2 million income tax benefit related to the ~~multi-family apartment complex sale attributable to NCIrepresents the gain recognized in connection with the sale of property by the Bainbridge Landing joint venture attributable to noncontrolling interests.~~pension settlement.

(b)Timber write-offs resulting from casualty events includes the write-off of merchantable and pre-merchantable timber volume damaged by casualty events which cannot be salvaged.

(c)The ~~nine~~three months ended ~~September 30,~~March 31, 2024 includes $5.7 million of pension settlement charges and $1.3 million of net costs associated with legal settlements. The three months ended March 31, 2023 includes ~~$20.5~~$9.1 million of net recoveries associated with legal settlements.

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The following tables provide a reconciliation of Operating Income (Loss) by segment to Adjusted EBITDA by segment for the respective periods (in millions of dollars):


Three Months Ended	Three Months Ended	Southern Timber	Pacific Northwest Timber	New Zealand Timber	Real Estate	Trading	Corporate and Other	Total
September 30, 2023
Three Months Ended
Three Months Ended									Southern Timber	Pacific Northwest Timber	New Zealand Timber	Real Estate	Trading	Corporate and Other	Total
March 31, 2024
Operating income (loss)
Operating income (loss)
Operating income (loss)	Operating income (loss)	$18.6	($0.6)	$17.6	$9.2	($0.1)	($9.4)	$35.4

Depreciation, depletion and amortization

Depreciation, depletion and amortization

Depreciation, depletion and amortization	Depreciation, depletion and amortization	19.2	8.3	6.0	3.1	—	0.4	37.0
Non-cash cost of land and improved development	Non-cash cost of land and improved development	—	—	—	6.6	—	—	6.6

Adjusted EBITDA	Adjusted EBITDA	$37.8	$7.8	$23.5	$18.9	($0.1)	($9.0)	$78.9

September 30, 2022
Operating income		$22.5	$2.2	$9.3	$15.7	$0.2	($9.0)	$40.9

Adjusted EBITDA

Gain associated with the multi-family apartment complex sale attributable to NCI (a)		—	—	—	(11.5)	—	—	(11.5)
Adjusted EBITDA

March 31, 2023
March 31, 2023
March 31, 2023
Operating income (loss)
Operating income (loss)
Operating income (loss)

Timber write-off resulting from a casualty event (b)		—	1.1	—	—	—	—	1.1

Timber write-offs resulting from casualty events (a)

Timber write-offs resulting from casualty events (a)

Timber write-offs resulting from casualty events (a)
Depreciation, depletion and amortization	Depreciation, depletion and amortization	14.1	9.4	6.3	1.0	—	0.3	31.1
Non-cash cost of land and improved development	Non-cash cost of land and improved development	—	—	—	3.1	—	—	3.1

Adjusted EBITDA	Adjusted EBITDA	$36.6	$12.6	$15.6	$8.4	$0.2	($8.6)	$64.7

Adjusted EBITDA

Adjusted EBITDA

(a)~~Gain associated with the multi-family apartment complex sale attributable to NCIrepresents the gain recognized in connection with the sale of property by the Bainbridge Landing joint venture attributable to noncontrolling interests.~~

~~(b)~~Timber ~~write-off~~write-offs resulting from a casualty ~~event~~events includes the write-off of merchantable and pre-merchantable timber volume damaged by a casualty ~~event~~events which cannot be salvaged.

Nine Months Ended Southern Timber Pacific Northwest Timber New Zealand Timber Real Estate Trading Corporate
and
Other Total
September 30, 2023
Operating income (loss) $62.6 ($6.5) $19.3 $18.7 $0.4 ($28.3) $66.1
Timber write-off resulting from a casualty event (a) — — 2.3 — — — 2.3
Depreciation, depletion and amortization 61.6 28.2 16.3 6.8 — 1.3 114.3
Non-cash cost of land and improved development — — — 20.2 — — 20.2
Adjusted EBITDA $124.2 $21.7 $37.9 $45.8 $0.4 ($27.1) $202.9
September 30, 2022
Operating income $76.9 $11.7 $22.7 $37.0 $0.1 ($26.6) $121.7
Gain associated with the multi-family apartment complex sale attributable to NCI (b) — — — (11.5) — — (11.5)
Timber write-off resulting from casualty event (a) — 1.1 — — — — 1.1
Depreciation, depletion and amortization 46.8 35.6 18.2 12.7 — 0.9 114.2
Non-cash cost of land and improved development — — — 20.3 — — 20.3
Adjusted EBITDA $123.7 $48.4 $40.8 $58.4 $0.1 ($25.7) $245.8

~~(a)Timber write-off resulting from a casualty event includes the write-off of merchantable and pre-merchantable timber volume damaged by a casualty event which cannot be salvaged.~~

~~(b)~~Gain associated with the apartment complex sale attributable to NCI represents the gain recognized in connection with the sale of property by the Bainbridge Landing joint venture attributable to noncontrolling interests.

The following table provides a reconciliation of Cash Provided by Operating Activities to Adjusted CAD (in millions of dollars):


		Nine Months Ended September 30,
	Three Months Ended March 31,					Three Months Ended March 31,
		2023	2022	2024	2023
Cash provided by operating activities	Cash provided by operating activities	$208.9	$209.9
Capital expenditures (a)	Capital expenditures (a)	(53.1)	(48.2)
Net recoveries on legal settlements		(20.5)	—
Net cost (recovery) on legal settlements (b)

Working capital and other balance sheet changes
Working capital and other balance sheet changes
Working capital and other balance sheet changes	Working capital and other balance sheet changes	(21.8)	(2.9)
CAD	CAD	$113.5	$158.8
Mandatory debt repayments	Mandatory debt repayments	—	—
CAD after mandatory debt repayments	CAD after mandatory debt repayments	$113.5	$158.8


Cash used for investing activities	Cash used for investing activities	($79.7)	($55.9)
Cash used for financing activities	Cash used for financing activities	($134.2)	($237.6)

(a)Capital expenditures exclude timberland acquisitions ~~of $14.0 million~~ and ~~$3.2 million during~~real estate development investments.

(b)Net cost (recovery) on legal settlements reflects the ~~nine months ended September 30, 2023 and September 30, 2022, respectively.~~net loss (gain) from litigation regarding insurance claims.

The following table provides supplemental cash flow data (in millions of dollars):


		Nine Months Ended September 30,
	Three Months Ended March 31,					Three Months Ended March 31,
		2023	2022	2024	2023
Purchase of timberlands	Purchase of timberlands	($14.0)	($3.2)
Real Estate Development Investments	Real Estate Development Investments	(18.8)	(10.9)
Distributions to noncontrolling interests in consolidated affiliates	Distributions to noncontrolling interests in consolidated affiliates	—	(16.5)

LIQUIDITY FACILITIES

~~2023~~2024 DEBT ACTIVITY

See Note 6 — Debt for additional information.

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Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are exposed to various market risks, including changes in interest rates, commodity prices and foreign exchange rates. Our objective is to minimize the economic impact of these market risks. We use derivatives in accordance with policies and procedures approved by the Audit Committee of the Board of Directors. Derivatives are managed by a senior executive committee whose responsibilities include initiating, managing and monitoring resulting exposures. We do not enter into financial instruments for trading or speculative purposes.

Interest Rate Risk

Due to the discontinuation of LIBOR on June 30, 2023, we amended our outstanding variable rate debt agreements and active interest rate swaps to change the interest rate benchmark from LIBOR to Daily Simple SOFR in December 2022. In March 2023, we modified our benchmark rates from LIBOR to Daily Simple SOFR for our forward-starting interest rates swaps. We are exposed to interest rate risk through our variable rate debt due to changes in SOFR. However, we use interest rate swaps to manage our exposure to interest rate movements on our term credit agreements by swapping existing and anticipated future borrowings from floating rates to fixed rates. As of ~~September 30, 2023,~~March 31, 2024, we had ~~$1 billion~~$850 million of U.S. long-term variable rate debt outstanding on our term credit agreements.

The notional amount of outstanding interest rate swap contracts with respect to our term credit agreements at ~~September 30, 2023~~March 31, 2024 was also $850 million. The $350 million 2015 Term Loan ~~Facility~~Agreement matures in April 2028, with the associated interest rate swaps maturing in August 2024. We have entered into forward starting interest rate swaps to cover $200 million of the 2015 Term Loan ~~Facility~~Agreement through the extended maturity date. The 2016 Incremental Term Loan ~~Facility~~Agreement and associated interest rate swaps mature in May 2026, and the 2021 Incremental Term Loan ~~Facility~~Agreement and associated interest rate swaps mature in June 2029. We have entered into an interest rate swap agreement to cover $100 million of borrowings under the 2022 Incremental Term Loan ~~Facility~~Agreement through the maturity date in December 2027. At this current borrowing and derivatives level, a hypothetical one-percentage point increase/decrease in interest rates would result in ano corresponding increase/decrease in interest payments and expense ~~of approximately $1.5 million~~ over a 12-month period.

The fair market value of our fixed interest rate debt is also subject to interest rate risk. The estimated fair value of our fixed rate debt at ~~September 30, 2023~~March 31, 2024 was ~~$422.2~~$449.4 million compared to the ~~$519.0~~$518.7 million principal amount. We use interest rates of debt with similar terms and maturities to estimate the fair value of our debt. Generally, the fair market value of fixed-rate debt will increase as interest rates fall and decrease as interest rates rise. A hypothetical one-percentage point increase/decrease in prevailing interest rates at ~~September 30, 2023~~March 31, 2024 would result in a corresponding decrease/increase in the fair value of our fixed rate debt of approximately $24 million and $26 million, respectively.

We estimate the periodic effective interest rate on our U.S. long-term fixed and variable rate debt to be approximately ~~3.1%~~2.7% after consideration of interest rate swaps and estimated patronage ~~refunds,~~and excluding unused commitment fees on the revolving credit facility.

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The following table summarizes our outstanding debt, interest rate swaps and average interest rates, by year of expected maturity and their fair values at ~~September 30, 2023:~~March 31, 2024:


(Dollars in thousands)	(Dollars in thousands)	2023	2024		2025		2026		2027		Thereafter		Total		Fair Value	(Dollars in thousands)	2024	2025	2026	2027	2028	Thereafter	Total	Fair Value
Variable rate debt:	Variable rate debt:
Principal amounts	Principal amounts	—	—		—		$200,000		$250,000		$550,000		$1,000,000		$1,000,000
Principal amounts
Principal amounts
Average interest rate (a)(b)	Average interest rate (a)(b)	—	—		—		7.05	%	7.00	%	6.99	%	7.00	%
Fixed rate debt:	Fixed rate debt:
Fixed rate debt:
Fixed rate debt:
Principal amounts
Principal amounts
Principal amounts	Principal amounts	—	—		$20,709		$24,161		$24,161		$450,000		$519,030		$422,224
Average interest rate (b)	Average interest rate (b)	—	—		2.95	%	3.64	%	6.48	%	2.75	%	2.97	%

Interest rate swaps:	Interest rate swaps:

Interest rate swaps:

Interest rate swaps:
Notional amount
Notional amount
Notional amount	Notional amount	—	$350,000		—		$200,000		$100,000		$200,000		$850,000		$62,520
Average pay rate (b)	Average pay rate (b)	—	2.18	%	—		1.50	%	3.72	%	0.67	%	1.85	%
Average receive rate (b)		—	5.30	%	—		5.30	%	5.30	%	5.30	%	5.30	%
Average receive rate (c)
Average receive rate (c)
Average receive rate (c)

Forward-starting interest rate swaps

Forward-starting interest rate swaps

Forward-starting interest rate swaps	Forward-starting interest rate swaps
Notional amount	Notional amount	—	—		—		—		—		$200,000		$200,000		$17,501
Notional amount
Notional amount
Average pay rate (b)	Average pay rate (b)	—	—		—		—		—		1.37	%	1.37	%
Average receive rate (b)		—	—		—		—		—		5.30	%	5.30	%
Average receive rate (c)
Average receive rate (c)
Average receive rate (c)

(a) Excludes estimated patronage refunds.

(b) Interest rates as of ~~September 30, 2023.~~March 31, 2024.

Foreign Currency Exchange Rate Risk

The New Zealand subsidiary’s export sales are predominately denominated in U.S. dollars, and therefore its cash flows are affected by fluctuations in the exchange rate between the New Zealand dollar and the U.S. dollar. This exposure is partially managed by a natural currency hedge, as ocean freight payments and shareholder distributions are also paid in U.S. dollars. We manage any excess foreign exchange exposure through the use of derivative financial instruments.

Foreign Exchange Exposure

At ~~September 30, 2023,~~March 31, 2024, the New Zealand subsidiary had foreign currency exchange contracts with a notional amount of ~~$127.2~~$127 million and foreign currency option contracts with a notional amount of ~~$86.0~~$106 million outstanding related to foreign export sales. The amount hedged represents a portion of forecasted U.S. dollar denominated export timber and log trading sales proceeds over the next 36 months and next 2 months, respectively.

The following table summarizes our outstanding foreign currency exchange rate risk contracts at ~~September 30, 2023:~~March 31, 2024:


(Dollars in thousands)	(Dollars in thousands)	0-1 months	1-2 months	2-3 months	3-6 months	6-12 months	12-18 months	18-24 months	24-36 months	Total	Fair Value	(Dollars in thousands)	0-1 months	1-2 months		2-3 months		3-6 months		6-12 months		12-18 months		18-24 months		24-36 months		Total		Fair Value
Foreign exchange contracts to sell U.S. dollar for New Zealand dollar	Foreign exchange contracts to sell U.S. dollar for New Zealand dollar
Notional amount	Notional amount	$8,500	$6,200	$5,000	$15,000	$34,000	$14,500	$12,000	$32,000	$127,200	($4,585)
Notional amount
Notional amount													$8,750	$9,200		$6,000		$16,000		$18,500		$22,000		$17,000		$30,000		$127,450		($2,116)
Average contract rate	Average contract rate	1.5225	1.5312	1.5350	1.5403	1.6136	1.6836	1.6572	1.6521	1.6135

Foreign currency option contracts to sell U.S. dollar for New Zealand dollar	Foreign currency option contracts to sell U.S. dollar for New Zealand dollar

Foreign currency option contracts to sell U.S. dollar for New Zealand dollar

Foreign currency option contracts to sell U.S. dollar for New Zealand dollar
Notional amount
Notional amount
Notional amount	Notional amount	$2,000	$2,000	$2,000	$6,000	$12,000	$24,000	$24,000	$14,000	$86,000	($534)	—			—		$8,000		$24,000		$28,000		$10,000		$36,000		$106,000		($59)
Average strike price	Average strike price	1.4946	1.4969	1.5243	1.5684	1.6347	1.6446	1.7150	1.6680	1.6517

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Item 4. CONTROLS AND PROCEDURES

Rayonier Inc.

DISCLOSURE CONTROLS AND PROCEDURES

~~Rayonier Inc.~~

Rayonier’s management is responsible for establishing and maintaining adequate disclosure controls and procedures. Disclosure controls and procedures (as defined in Rule 13a-15(e)) under the Securities Exchange Act of 1934 (the “Exchange Act”), are designed with the objective of ensuring information required to be disclosed by the Company in reports filed under the Exchange Act, such as this quarterly report on Form 10-Q, is (1) recorded, processed, summarized and reported or submitted within the time periods specified in the SEC’s rules and forms and (2) accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

Because of the inherent limitations in all control systems, no control evaluation can provide absolute assurance that all control exceptions and instances of fraud have been prevented or detected on a timely basis. Even systems determined to be effective can provide only reasonable assurance that their objectives are achieved.

Based on an evaluation of the Company’s disclosure controls and procedures as of the end of the period covered by this quarterly report on Form 10-Q, our management, including the Chief Executive Officer and Chief Financial Officer, concluded the design and operation of the disclosure controls and procedures were effective as of ~~September 30, 2023.~~March 31, 2024.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

In the quarter ended ~~September 30, 2023,~~March 31, 2024, based upon the evaluation required by Rule 13a-15(d) under the Exchange Act, there were no changes in our internal control over financial reporting that would materially affect or are reasonably likely to materially affect our internal control over financial reporting.

Rayonier, L.P.

DISCLOSURE CONTROLS AND PROCEDURES

The Operating Partnership is responsible for establishing and maintaining adequate disclosure controls and procedures. Disclosure controls and procedures (as defined in Rule 13a-15(e)) under the Securities Exchange Act of 1934 (the “Exchange Act”), are designed with the objective of ensuring information required to be disclosed by Rayonier, L.P. in reports filed under the Exchange Act, such as this quarterly report on Form 10-Q, is (1) recorded, processed, summarized and reported or submitted within the time periods specified in the SEC’s rules and forms and (2) accumulated and communicated to our management, including Rayonier’s Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

Based on an evaluation of the Operating Partnership’s disclosure controls and procedures as of the end of the period covered by this quarterly report on Form 10-Q, our management, including Rayonier’s Chief Executive Officer and Chief Financial Officer, concluded the design and operation of the disclosure controls and procedures were effective as of ~~September 30, 2023.~~March 31, 2024.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

In the quarter ended ~~September 30, 2023,~~March 31, 2024, based upon the evaluation required by Rule 13a-15(d) under the Exchange Act, there were no changes in internal ~~controls~~control over financial reporting that would materially affect or are reasonably likely to materially affect internal ~~controls~~control over financial reporting.

PART II. OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS

The information set forth in Note 9 — Contingencies and in Note 10 –— Environmental and Natural Resource Damage Liabilities in the “Notes to Consolidated Financial Statements” under Item 1 of Part I of this report is incorporated herein by reference.

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Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS ~~AND ISSUER PURCHASES OF EQUITY SECURITIES~~

Rayonier Inc.

REGISTERED SALES OF EQUITY SECURITIES

From time to time, the Company may issue ~~its~~ common shares in exchange for units in the Operating Partnership. Such shares are issued based on an exchange ratio of one common share for each unit in the Operating Partnership. During the quarter ended ~~September 30, 2023,~~March 31, 2024, the Company issued ~~15,904~~350,376 common shares in exchange for an equal number of units in the Operating Partnership pursuant to the agreement of the Operating Partnership.

ISSUER ~~PURCHASES~~REPURCHASES OF EQUITY SECURITIES

In February 2016, the Board of Directors approved the repurchase of up to $100 million of Rayonier’s common shares (the “share repurchase program”) to be made at management’s discretion. The program has no time limit and may be suspended or discontinued at any time. There were no shares repurchased under this program in the ~~third~~first quarter of ~~2023.~~2024. As of ~~September 30, 2023,~~March 31, 2024, there was $87.7 million, or approximately ~~3,082,518~~2,639,243 shares based on the period-end closing stock price of ~~$28.46,~~$33.24, remaining under this program.

The following table provides information regarding our purchases of Rayonier common shares during the quarter ended ~~September 30, 2023:~~March 31, 2024:

Period Total Number of Shares Purchased (a) Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (b) Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (c)
July 1 to July 31 38 $31.40 — 2,648,806
August 1 to August 31 10 32.94 — 2,934,062
September 1 to September 30 920 30.11 — 3,082,518
Total 968 —


Period	Total Number of Shares Purchased (a)	Average Price Paid per Share	Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (b)	Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (c)
January 1 to January 31	625	$32.07	—	2,895,328
February 1 to February 29	—	—	—	2,548,023
March 1 to March 31	299	34.50	—	2,639,243
Total	924		—

(a)Includes ~~968~~924 shares repurchased to satisfy tax withholding requirements related to the vesting of shares under the Rayonier Incentive Stock Plan. The price per share surrendered is based on the closing price of the Company’s common shares on the respective vesting dates of the awards.

(b)Purchases made in open-market transactions under the $100 million share repurchase program announced on February 10, 2016.

(c)Maximum number of shares authorized to be purchased under the share repurchase program at the end of ~~July, August~~January, February and ~~September~~March are based on month-end closing stock prices of ~~$33.12, $29.90~~$30.30, $34.43 and ~~$28.46,~~$33.24, respectively.

Rayonier, L.P.

UNREGISTERED SALES OF EQUITY SECURITIES

There were no unregistered sales of equity securities made by the Operating Partnership during the quarter ended ~~September 30, 2023.~~March 31, 2024.

ISSUER ~~PURCHASES~~REPURCHASES OF EQUITY SECURITIES

Pursuant to the Operating Partnership’s limited partnership agreement, limited partners have the right to redeem their units in the Operating Partnership for cash, or at our election, shares of Rayonier Common Stock on a one-for-one basis. During the quarter ended ~~September 30, 2023, 15,904~~March 31, 2024, 350,376 units in the Operating Partnership held by limited partners were redeemed in exchange for shares of Rayonier Common Stock.

6556

Item 5. OTHER INFORMATION

Insider Trading Arrangements and Policies

None of the Company’s directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the Company’s fiscal quarter ended ~~September 30, 2023,~~March 31, 2024, as such terms are defined under item 408(a) of Regulation S-K.

6657

Item 6. EXHIBITS









22.1	List of Guarantor Subsidiaries	Incorporated by reference to Exhibit 22.1 to the Registrant’s June 30, 2022 Form 10-Q
31.1	Rayonier Inc. - Chief Executive Officer’s Certification Pursuant to Rule 13a-14(a)/15d-14(a) and pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	Filed herewith
31.2	Rayonier Inc. - Chief Financial Officer’s Certification Pursuant to Rule 13a-14(a)/15d-14(a) and pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	Filed herewith
31.3	Rayonier, L.P. - Chief Executive Officer’s Certification Pursuant to Rule 13a-14(a)/15d-14(a) and pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	Filed herewith
31.4	Rayonier, L.P. - Chief Financial Officer’s Certification Pursuant to Rule 13a-14(a)/15d-14(a) and pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	Filed herewith
32.1	Rayonier Inc. - Certification of Periodic Financial Reports Under Section 906 of the Sarbanes-Oxley Act of 2002	Furnished herewith
32.2	Rayonier, L.P. - Certification of Periodic Financial Reports Under Section 906 of the Sarbanes-Oxley Act of 2002	Furnished herewith
101	The following financial information from Rayonier Inc. and Rayonier, L.P.’s Quarterly Report on Form 10-Q for the fiscal quarter ended ~~September 30, 2023,~~March 31, 2024, formatted in Inline Extensible Business Reporting Language (“iXBRL”), includes: (i) the Consolidated Statements of Income and Comprehensive Income (Loss) for the Three ~~and Nine~~ Months Ended ~~September 30,~~March 31, 2024 and 2023 ~~and 2022~~ of Rayonier Inc.; (ii) the Consolidated Balance Sheets as of ~~September 30, 2023~~March 31, 2024 and December 31, ~~2022~~2023 of Rayonier Inc.; (iii) the Consolidated Statements of Changes in Shareholders’ Equity for the ~~Nine~~Three Months Ended ~~September 30,~~March 31, 2024 and 2023 ~~and 2022~~ of Rayonier Inc.; (iv) the Consolidated Statements of Cash Flows for the ~~Nine~~Three Months Ended ~~September 30,~~March 31, 2024 and 2023 ~~and 2022~~ of Rayonier Inc.; (v) the Consolidated Statements of Income and Comprehensive Income (Loss) for the Three ~~and Nine~~ Months Ended ~~September 30,~~March 31, 2024 and 2023 ~~and 2022~~ of Rayonier, L.P.; (vi) the Consolidated Balance Sheets as of ~~September 30, 2023~~March 31, 2024 and December 31, ~~2022~~2023 of Rayonier, L.P.; (vii) the Consolidated Statements of Changes in Capital for the ~~Nine~~Three Months Ended ~~September 30,~~March 31, 2024 and 2023 ~~and 2022~~ of Rayonier, L.P.; (viii) the Consolidated Statements of Cash Flows for the ~~Nine~~Three Months Ended ~~September 30,~~March 31, 2024 and 2023 ~~and 2022~~ of Rayonier, L.P.; and (ix) the Notes to Consolidated Financial Statements of Rayonier Inc. and Rayonier, L.P.	Filed herewith
104	The cover page from the Company’s Quarterly Report on Form 10-Q from the quarter ended ~~September 30, 2023,~~March 31, 2024, formatted in Inline XBRL (included as Exhibit 101).	Filed herewith

6758

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, each of the registrants has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


						RAYONIER INC.


			By:			/s/ APRIL TICE
						April Tice Senior Vice President and Chief ~~Accounting~~Financial Officer (Duly Authorized Officer, Principal Accounting Officer)

Date: ~~November~~May 3, ~~2023~~2024


						RAYONIER, L.P.

						By: RAYONIER INC., its sole general partner

			By:			/s/ APRIL TICE
						April Tice Senior Vice President and Chief ~~Accounting~~Financial Officer (Duly Authorized Officer, Principal Accounting Officer)

Date: ~~November~~May 3, ~~2023~~2024

6859


	Units		Accumulated Other Comprehensive Income (Loss)	Noncontrolling Interests in Consolidated Affiliates	Total Capital
	General Partners’ Capital	Limited Partners’ Capital
Balance, January 1, 2022	$17,872	$1,769,367	($15,463)	$43,802	$1,815,578
Net income	300	29,686	—	1,012	30,998
Distributions on units ($0.27 per unit)	(408)	(40,388)	—	—	(40,796)
Issuance of units under the “at-the-market” equity offering, net of commissions and offering costs of $339	298	29,473	—	—	29,771
Issuance of units under incentive stock plans	4	411	—	—	415
Stock-based compensation	28	2,769	—	—	2,797
Repurchase of units	(2)	(212)	—	—	(214)
Adjustment of Redeemable Operating Partnership Units	(25)	(2,496)	—	—	(2,521)
Conversion of units into common shares	1	103	—	—	104

Amortization of pension and postretirement plan liabilities	—	—	188	—	188
Foreign currency translation adjustment	—	—	5,668	790	6,458
Cash flow hedges	—	—	39,822	605	40,427
Distributions to noncontrolling interests in consolidated affiliates	—	—	—	(1,566)	(1,566)
Balance, March 31, 2022	$18,068	$1,788,713	$30,215	$44,643	$1,881,639

Net income	246	24,404	—	637	25,287
Distributions on units ($0.285 per unit)	(430)	(42,612)	—	—	(43,042)
Costs associated with the “at-the-market” (ATM) equity offering program	(1)	(62)	—	—	(63)
Issuance of units under incentive stock plans	20	1,963	—	—	1,983
Stock-based compensation	44	4,368	—	—	4,412
Repurchase of units	(40)	(3,951)	—	—	(3,991)
Adjustment of Redeemable Operating Partnership Units	124	12,261	—	—	12,385
Conversion of units into common shares	—	42	—	—	42

Amortization of pension and postretirement plan liabilities	—	—	188	—	188
Foreign currency translation adjustment	—	—	(34,373)	(1,912)	(36,285)
Cash flow hedges	—	—	8,247	(2,492)	5,755

Noncontrolling interests in consolidated affiliates redemption of shares	—	—	—	(27,860)	(27,860)
Balance, June 30, 2022	$18,031	$1,785,126	$4,277	$13,016	$1,820,450

Net income	210	20,823	—	10,828	31,861
Distributions on units ($0.285 per unit)	(430)	(42,537)	—	—	(42,967)
Costs associated with the “at-the-market” (ATM) equity offering program	(1)	(37)	—	—	(38)
Issuance of units under incentive stock plans	—	19	—	—	19
Stock-based compensation	27	2,609	—	—	2,636
Repurchase of units	—	(20)	—	—	(20)

Adjustment of Redeemable Operating Partnership Units	239	23,633	—	—	23,872
Conversion of units into common shares	37	3,659	—	—	3,696


Amortization of pension and postretirement plan liabilities	—	—	188	—	188
Foreign currency translation adjustment	—	—	(24,065)	(1,327)	(25,392)
Cash flow hedges	—	—	21,619	(1,472)	20,147
Distributions to noncontrolling interests in consolidated affiliates	—	—	—	(9,789)	(9,789)

Balance, September 30, 2022	$18,113	$1,793,275	$2,019	$11,256	$1,824,663