Why Invest in PotlatchDeltic
Forward-Looking Statements & Non-GAAP Measures
Company and Industry Overview
PotlatchDeltic is a $4 Billion Timber Real Estate Investment Trust (REIT) Focused on:
We Operate Three Business Segments
We are the Best Timber REIT Play on Housing Because Our Integrated Strategy Provides the Highest Direct Leverage to Lumber Prices
Lumber Prices Have Been Exceptionally Strong the Last Couple of Years
There Has Been a Cumulative Underbuilding of U.S. Homes in the Last Decade
There is a Strong Millennial Demographic Tailwind
Higher Mortgage Rates Have Caused Housing Starts to Slow Down
U.S. Housing Stock has Aged Considerably
Growing Residential Improvement Spending Supports Lumber Demand
Demand for Lumber Used in Nonresidential Construction is Also Poised for Growth as Environmentally Beneficial Tall Wood Buildings Take Market Share from Steel and Concrete
The Outlook for Mass Timber as a Natural Climate Solution is Favorable
Lumber Prices are Expected to Remain Above Historical Averages Due to Growing Lumber Demand and Constrained Supply
Timberlands Segment
We Own nearly 2.2 Million Acres of Timberlands in Seven States
A Significant Portion of Our Idaho Sawlogs are Indexed to Lumber
Our Idaho Timberlands are Highly Profitable and Productive
Our Legacy Operations are Naturally Hedged in the U.S. South
The Hedge is Important Because Southern Sawlog Prices Have Been Below Trend Levels
Sawmill Capacity Additions Are Tightening Log Markets
Log Markets Are Already Tight For Timberlands Acquired in the CatchMark Merger
CatchMark Operates in Some of the Best Pricing Regions in the U.S. South
Our CatchMark Merger Compares Favorably to Another Recent Acquisition
Climate Change is Providing Southern Timberlands Opportunities
Our Timberlands Segment Adjusted EBITDDA Has Increased
Wood Products Segment
Our Wood Products Facilities are Located Close to Major End Markets
Our Capacity is Growing With Acquisitions and Productivity Improvements
North American Lumber Supply
Lumber Production Shifting to the U.S. South
Waldo Sawmill Modernization IRR Estimated to be 22% in Base Case
Continuous Capital Investments Meet Hurdle Rates, Improve Productivity, Lower Costs, and Reduce Environmental Impact
We are Relentlessly Focused on Continuously Improving our Environmental Performance
Our Wood Products Segment Adjusted EBITDDA Has Increased Exponentially
Real Estate Segment
We Have Identified 90,000 Rural Acres That We Intend to Sell Over Time at a Premium to Timberland Value
Proximity of CatchMark’s Timberlands to Large Population Centers Creates Meaningful Real Estate Opportunities
We Create Significant Conservation Outcomes Through Rural Land Transactions
We Create Significant Conservation Outcomes Through Rural Land Transactions
Interest in Solar Opportunities on Our Timberlands Has Increased
We Also Develop and Sell Building Lots in a Highly Desirable 4,800 Acre Master-Planned Community
Real Estate Segment Adjusted EBITDDA Continues to be a Strong Contributor
Capital Allocation and Balance Sheet
We are Focused on Growing Shareholder Value Over the Long Term Through a Balanced Capital Allocation Strategy
We are Growing Our Business in a Disciplined Way Over Time
Maintaining a Strong Balance Sheet and Ample Liquidity Provides the Flexibility to be Opportunistic
The Power of Our Strategy is Evidenced by Our Strong Financial Performance
We are Committed to Environmental and Social Responsibility and to Responsible Governance
Appendix
Adjusted EBITDDA Reconciliation
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