CTT - Earnings call transcript Q4 2019 | CatchMark Timber Trust Inc

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Operator

Good day. And welcome to the CatchMark Timber Trust Fourth Quarter 2019 Earnings Call and Webcast. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Ursula Godoy, Chief Financial Officer. Please go ahead, ma'am.

Ursula Godoy

morning. Good joining fourth review XXXX quarter as company for Trust CatchMark as for XXXX for results and guidance. us you of our Timber well Thank full year Financial of Chief Godoy Ursula am CatchMark. I Officer

Chief T on the John Chief Brian Reitz; Joining me Resources of call Todd Triple today Officer President Executive are Officer Davis; timberland. Rasor and

affected the to forward-looking materially by control results on management's based During CatchMark will management are uncertainties actual and this risks or to could CatchMark's make beliefs certain statements our information and that call will its differ available. actual results expectations. be forward-looking predict statements. These beyond cause currently current from are and ability

measures. annual that cause certain and the more financial XX-K posted included our of we answer any filed John report is earnings subsequent about these which Todd, reports pleased For Brian, that XXXX to and release, website. the presentation, are such Reconciliations your of includes on could presentation questions. information SEC. Today's our we be Form refer will I factors differences, our with in non-GAAP on our measurements you to After

over turn Davis. to Chief the Executive Officer Brian call I Now

Brian Davis

our everyone. CatchMark's year fourth and the on principles team Ursula call ahead setting company year CatchMark's and deliver results, Thank you for to objectives. looks out guidance guiding reviewing On providing quarter our to good XXXX morning forward continue full today, excellent and for the

strong cash dividend. center steadfastly generation that objectives shareholder a through and those increasing reliable flow And value stable and supporting on predictable

on with CatchMark together the six begin, Exchange of I Barag; contributions since New the who more Stock help we ago. to than team recognize lead years York outstanding Before want its listing Jerry

operating and on without exception, targets time meeting our that delivered our guidance. and Over plan we strategy,

timberlands our our growth portfolio long We what positioned quality over deliver durable the flow shareholders we believe industry for cash to in also the highest assembled is term.

and us his leadership, Jerry for All creativity thank friendship. of

strategic demand near maintain and timberlands three best pillars on to credit investing operating flow counterparties, with CatchMark's to for delivering markets course are; intend cash three harvest high growth. Those middle built our predictable practices. optimize timberlands, through sustainable pillars we forward, managing worthy Going prime in

We rely flow. will delivered supply with this no sustain operating change predictable fiber volumes. to agreements model to and sales and will revenues on and be underpinned consistent is approach a cash predictable continue There in delivering which

to focused on takes intend strengthening expanding disciplined We proven the markets around and current some in of and approach the positions And customers markets. extremely and particularly country's best-known Principally timberlands, our our our and this of partners. in be in with advantage U.S.

South timber basket.

see transactions will for for $XX $X We and preference direct a in ownership our million using to less the prime range with leverage. million properties

acquisition in XXXX an is Georgia Coastal example. Our

by scale grow holdings Joint ventures opportunities us with leveraging to contribute and also can to the efficiencies. our our platform operating for investment provide

In last to joint of the of our structure, and trip very Bluffs year. round model terms size use Dawsonville which effectively partnership we venture would successful look

less we optimized were intend cash capital on productive selling assets portfolio construction. targets and to and flow, company productive continue buy to also be that further overall are will longer to are accretive reducing operating redeploy we that leverage. Importantly, and our by no assets meet focused more Collectively,

debt may reduction repurchases. for We combination use a also of proceeds and share

additional a smaller joint ownership So mid-sized leverage. on direct venture growth to through fee less focused co-investments, will approach and occur disciplined potentially deals,

simple. predictable attention keep a with our is our on It's strategy we and our cash providing and of intend shareholders flow. strategy All simple to stable

a year was results. XXXX for CatchMark. to Turning very It good

delivered management wood supply sales for We from CatchMark's the agreements met timberland and meeting company our benefiting rigorous And fiber year. anticipated and produced our superior cash guidance guidance flow practices. growth, model, holdings,

driven revenue a south and pricing, sawtimber timber the Northwest, increased mix. net superior volumes an in by and the higher in the significant US timber US South basket, realized timber increase improved We higher timber sales, Pacific in price

Bandon acquisition a asset operating the full all which Triple Pacific T meeting increased year of of Northwest. targets. Improving from mix. integration completed in joint We over the XXXX venture, timber fees sale of is management of its We

together, continue support the now then operating for all growth. a from CatchMark operations. overview shareholders cash consistent Todd Taken results dividend of of flows an Ursula initiatives these and provide will our future position will and review to for financial

Officer. Financial Ursula, opportunity welcome And as this I you take to Chief

You've all team forward been of the start since an new of to role. look CatchMark. And with in your our integral we working part you

Ursula Godoy

call. with to all very be today's and you much on of you Thank Brian, good

over As management excellent timber asset sees. Brian XXXX fourth full fueled year and generated quarter highlighted increased both and revenues year CatchMark year for results by

results fiber supply agreements. reinforce our strategy and through prime near our on timberland markets in efficacy and with based investing leading operations deliver The of holdings the sales our maximizing model

net due XXXX primarily million volumes XXX,XXX million. $XX from to quarter by XX% by XX% tons. Increased fourth EBITDA by $X.X timber net quarter losses to million. venture. total loss gross For EBITDA Lower $XX.X XX% $XX.X timber to to Increased harvest by $XX.X million. CatchMark XX% by million revenues by to T fourth million. to to increased harvest XXXX. XX% XX% increased to revenue Increased compared And $XX.X XX% sales the allocated Triple by to adjusted joint revenues Increased lower

increased derived increased South Pacific US integrated mix. result and revenues the and harvest X% sawtimber in higher a volumes of from as the Northwest operations. timber sawtimber fully Net increased increase The a mix

from EBITDA on We by sold quarter increasing million $X.X $X of fourth timberland, estate real same located hand of of $X.X in million, CatchMark acquired period prime the generated acres near for XXX South acres timberland in for disposition. XXXX the During recycling holdings million existing for capital XXXX. also cash Carolina

Georgia the stockholders XXXX, million on recycling of large of which of paid We of enter part a closed December dividend in $X.XXX XX, per to share And of we capital $XX.X into January timberland, record contract a disposition XX,XXX as company's acres strategy. for a XXXX.

Increased primarily due earn following results. X% to $XXX.X the year XX% T. the from XXXX. compared by to fees lower million, For $XX.X allocator Lowered by company total full loss year in full asset Triple losses higher million net to to revenues year XXXX, year management over reported

adjusted XX% $XX.X management by Increased higher harvest timber million Increased and Northwest X.XX sales due million. million our by property. total net to asset to driven X% $XX.X integration volumes EBITDA fees. Pacific Increased to revenues timber of by X% to tons by

to operations. to higher South of integration These the million. and revenue timber by increased million. US sawtimber harvest by pricing $XX.X net were X% EBITDA generated in gains X% in Increase the a part $XX.X Increased by mix. Pacific Northwest And

year region $X.X million year result a over Pacific deliver by Gross in as in Northwest the decrease million a total $X.X offset million of $X a from the X% timber increase by resulting South in a sales sales US volume. a decrease increase as percentage revenue region of

pricing US remained volumes sawtimber timber with in of over higher as higher a mix X% by pulpwood increasing harvest Total increasing year the pricing and U.S. X%. increased Net sawtimber harvest result comfortable in South year volume and revenues increased X%

South pricing.

a of distributions of joint of and operation. For EBITDA asset primarily adjusted full increased due incentive the venture. year to of T recognized income, year XXX% $XX.X $X.X received XXXX, based Dawsonville $X by we Bluffs $XXX,XXX management Triple to million revenue promotes, million also million from million, full $X.X highly We of fee successful

due realized and Bluffs targets. XX% increased by management the proceeds to to We million from result. investment were million of X,XXX sales Triple T fees Dawsonville disposition results acres. $XX.X We in-line company with timberland of XXXX The EBITDA $XX.X in

fully gain capturing XX,XXX large debt. per for dispositions of a dividends million, covered million, We acres share. of we $XX.X $XX.X paying paid or outstanding down lastly, of completed million and $X $X.XX And

we target also of debt and adjusted reduce to to sub mission our EBITDA down year-end year-end XXXX. X.X XXXX, debt made our relative times X on times In to met adjusted ratio, significant progress at from EBITDA company net

asset XXXX. of the year at meet $XXX.X By the T accomplishment increased program full from XXXX, ongoing through longer of of million revenues no dispositions had earned from Triple year-end This productivity timberlands execution and reflects that to end recycling million our $XXX.X management fee criteria. year liquidity capital our large impact

of This was on million $XXX.X cash of $XX.X debt and hand. million comprised capacity of

the interest extend blend In favorable addition, interest and also rate swaps. existing took advantage of we rate environment to

third transactions hedging term our fixed debt, a quarter. X.XX% debt X the before average rate stood years spread, on That rate end patronage years at of at of $XXX applicable million of time rates at at quarter expected the an and fix fourth After average dividend. on the of to weighted X.XX% to the average interest compared X

to recent of The February on month last XXst. disposition, were XXXX outstanding the Georgia Proceeds this transaction Xrd. $XX which on we do repay large of timberland's not approximately approximately $XX include results closed January million debt used million

focus liquidity and results our has underscore million. increased fixed on and all floating to commitment our As our strengthening is a debt appropriately to sheet. rate balance XX% now and deleveraging $XXX These now result,

not XXXX, did million $XX shares quarter stock under program. fourth CatchMark repurchase the the During any repurchase company's

full with company approximately year-end. XXXX, program available shares million XXX,XXX for year million at $X $XX.X For repurchased the under the remaining

to it turn I'll Todd operations the over for Now review.

Todd Reitz

we to a Thank sawtimber and production pricing, team to of where our we you, our favorable achieving and to plan paid execute off quarter outset, At excellent strong managers a Their the again for customers the with ensure met Ursula. efforts during continue our job want recognize contractors working I do fourth field mix. very on commitments. they on including

delivered wood primary opportunistic above Our for model time middle our fiber as substantially drivers products strong South-wide partners stumpage all and maintain performance supply agreement continued helping averages. pricing levels markets, sales TimberMart-South

projection TimberMart-South encouraged U.S. about pulpwood levels with pricing files full Specifically and and achieved that in for to XX% increasing XXXX CatchMark XXXX. start year for X.X of pace We're than were a the averages. homebuilder million pointing order higher higher housing XX% starts healthy sawtimber permits premiums for of

products strong lumber This produce market. dynamics demand timber pricing to and stronger rising including market the support finished real existing outlook. favorable for all inventories demand mortgage rates better Low jobs lead in favorable should which wages higher this the and supply should home

applied addition the Greenfield improvement beginning CatchMark fruition capital and South coming operations. in to to to and In are specifically projects US sawmill start

expect materializing not until fully do demand markets XXXX. we Although realized our

demand years, is and begun markets. seasonal following to year to experience expected slightly early the the during with regional and ebbs uptakes local flows. in trend Pricing micro we And and have up

US with harvest operations. to our expect production coming the year the X.X We volume from for also increase to range, South of our million ton XX% X.X

sawtimber Pacific Our the approximately at the from XX% Northwest. US and XX% South projects mix from

and We relatively quarter over quarter stable be quarter to pricing volumes quarter. higher forecast XXXX over be first first year to harvest year

further back For guidance, XXXX to over turn I it Brian.

Brian Davis

EBITDA from Thanks million, from or up We Todd. practices forecast $XX decreased Dawsonville recycling. additional possible wrapped contributions joint acquisitions, $XX capital between contributions past not does last adjusted reflecting new Consistent potential effectively Bluffs, include million guidance with year. of venture our investments, and which

of year allocated million $XX the And for substantial from reduction T. million Triple to a between in $XX GAAP expected losses sharply reduced net loss reflects

As harvest Todd noted, X.X we million anticipate X.X and tons. volumes between

Triple Asset pricing. million Management revenues million, volumes harvest from driven fee be and $XX will projected $XX to anticipated EBITDA Higher T. primarily steady by at increased harvest primarily

But $XX our significant targets our sales range investment management Timberland of Bluffs. the Dawsonville annual remain $XX absence EBITDA to to to the traditional million contributions acreage. in decrease of X% of due will from X% of million

planned In buying assets. on making new investments we will continue focus to timberland

diligence Our and due superior analysis productivity based in and flow sustainable characteristics, locations will concentrate yield well on as on middle stocking durable markets. achieving and as strong cash

particular, prudent market remain In deals we delivered relationships. presence in concentrating to we find off can disciplined and our model confident and to through across using around that intend market presence to come appropriate highly would our are our middle expand opportunities existing ownership to markets. continue We

XXXX harvest and sales increase Triple earned of property and the adjusted sum a position To up, significant capital EBITDA, realized targets. Northwest, timber the our a increased from enable in significant improved excellent delivered meeting in Pacific timber net and EBITDA, successful integration increase significant results superior US in timber asset the operating success to timberland CatchMark pricing Bandon basket future T, and salted higher the revenue in an South volumes, harvest growth. fees increase We remix, we management Bluffs sales, the Dawsonville

growth large the reduce strengthen assets, timber quality addition, strategy. enable overall dispositions investments our employing to prime timberlands, continues of strategy recycling in future capital balance sheet improve In our targeted the furthering and our leverage,

most ongoing meeting a cohesive importantly, of have to targets. executives we dedicated focused staff group strong And our and and

to implementing in and simple timberland and the proven middle durable and based harvest employing investing sustainable help owning premier steadfast remains best superior team markets, practices in management deliver on strategy Our a yields.

shareholders. executed for these will our to by and outstanding team a our supported provide cash flows Taken together, by dividend enable stable continue operating initiatives us to predictable consistent

our meeting going at of confident and objectives dedicated All remain us CatchMark about forward. disciplined,

Thank you again for joining us today.

Now to John, pleased I and Ursula, questions. will your be Todd, take

Operator

Thank you.

and James. go first And Mings session. [Operator will We instructions] ahead. Raymond will from our answer with question Collin come question now the begin Please

Collin Mings

Thank you. and Good congratulations to and team again morning, everyone. Brian

Brian Davis

Good morning, Collin.

Collin Mings

to up your want did I the on start, follow Brian. remarks, To in leadership change opening

First, curious the like just you on provide is in your color company any of as It was relates sounds Do Brian, additional the and the as I priority. have key look to a And goes prepared the remarks, then you where any can and lower transition? there here. specific to Ursula timing leverage also, is targets you mind? from board it

Brian Davis

that. Sure Collin, I'll take

nine the first which we your of leadership time April We've Today, which last from year. President in for with developing development we process regarding The my from our had we have promotion team XX. had question timing. So IPO employees. our been began to

board in leadership and a myself demonstrated this taking internally. filling most that change And the people strength. forward, was very been those developing has number focused of opportunities a bench great on step recent expertise And by of so

external in to almost Warehouser Palm way us brought Counsel from Reitz Creek. of by from We Todd Alston years General comes ago. & two Bird

strength. bench great have we So

in timing, it relates from forward a have the to the leadership very place standpoint of And which comfortable the felt on so team as today. board move we

we pre a high flows Now, really approach to our to superior stable question demand timberlands, predictable acquisitions comes read. in is our through approach. and middle to an value to your management deliver continue ultimate And proposition provide of and discipline back markets, which cash announced prime

towards is structure with our corporate profile. bias lower size a simple ultimately for relatively leverage my of a company But, a

we relates it lower to a have. a versus a more currently a target, direction As it's what direction that profile And of is target. than leverage

our disciplined in financial liquidity. of have near We as And our we we're term will no well covenants be maturities. approach, within plenty or

relates the more be for a to bias direction of would time this period it So leverage. a over of as

Collin Mings

joint fair Brian, Okay, want you in do to the with maybe well. on the to enough. will. while less I theme, like looking maybe sound touch does if will. are it simplicity future Sticking if you complexity you as ventures forward

joint a opportunities. smaller willingness still There's conduct venture to

that wind So the on any of that you've JV term identified just front, front? there opportunities the again, here near on Dawsonville? curious down Just is given

Brian Davis

I Yeah, think captured believe to so sentiment. in I in Bluffs JVs opening remarks the great as my of it relates some Dawsonville future, a that represents model.

recreating venture with and lean joint scale by structure We that virtue in have success of a of positive type Dawsonville. of a

XXXX a the as it busy was year to relates integration.

Triple and reinvigorated quarter can Bandon about fourth with I So T. those the as full direct year it operations XXXX we've acquisitions. ventures of joint as our as well of tell to types of the efforts you relates

Collin Mings

done a T the quarter, relates in Okay. GP Sticking Last management headwind business. company the with deal lumber asset the was markets venture. with how volatility maybe getting discussed Triple the as a to it joint

to the for here earnings an that Maybe just extra negotiate best your of Just is to going get thoughts something broadly, path CatchMark latest as it you recognizing there relates the to Triple recognizing some more especially us value two forming. create JV incentive T to on years within done remind first you're call. can on

Brian Davis

supply Correct. in agreements. existing Rasor's meeting working And the we And targets as established in a we've all our also, under calls with XXXX. wood GP. prior we're John under began relationship we've good the managing noted guidance, property Since

a call. not negotiate We agreement we're us. transaction beneficial Collin, an modifications remain correct, GP we on engaged whether and mutually of in associated a to you're should both that's going constructive potential and both dialogue earnings to know evaluating with we're And there's with

T agreement respect to the GP, to with a joint consistent an then T to ability But But with to realize we accelerate an still able if venture. able the then not may the it investment. Triple good other GP very Triple value we're our if with calls we're reach agreement reach is believe

meeting the advantage a in It's been in generating on opportunities. regions managing the we've other property supply targets agreements taking the very of fastest a great one well And revenue and of country. growing our

Collin Mings

were during appreciate I a provide, there's just looked just little price quarter. Obviously, know that of different say, bit should if goes acre the provide some I on that. optically transaction per can you the to a acre in estate deals, completed you the into per gears additional on timberland a more transactions the details activity acre if the that quarter, obviously the I low. don't fourth real there, or real color the Switching Okay. lot color little pricing curious just but can Brian. per a quick there's

realizations those where given Just were?

Todd Reitz

a was ended bet. it. hardwood closing items Todd, Collin, with They're with sale access $X the of we in up fourth a timberland It you million is Hey operability out difficulty pure this had deal. really type quarter,

pure being hardwood therefore, enough with have So stand. the one stocking level pricing associated on doesn't the

lower see rate would a You there. little bit

Collin Mings

turn don't Okay, as just the in it for huge and last markets, and one have Northwest. a for guys you logs one I'll Pacific the Todd, Recognizing the it relates me there. presence demand timberland specifically and to over. Again,

if trade you the coronavirus. tension situation the on of and lot some Not Northwest. just calls it as lot obviously situation. uncertainty the the both the in of But to earnings wood of discussion salvage Pacific a the created can markets on European impact in relates by mention of other export obviously A the to weigh

that ramping So your just Northwest Pacific as up on harvest the thoughts you in volumes region? start

Todd Reitz

standpoint flow. or of to provide of but And the the opportunity improvement there, an And have have and some log actually right, export does reiterate, from it's it as late, within we you're really there pricing arena Sure. don't play the we for huge exposure just driven a whole Canadian tension. some

diminished. been it Japanese Really the going a has into little bit market,

of we've in region. some the Pacific seen pickup so Northwest that And

modest there which improved of pricing received. in we received couple improvement not a local also very well ago, the a it just really option, but that some late, market weeks in improvement export our of As was domestic only drove

how Things it And are could improving be the that'll and it whole we'll point. quarter, there, last, a data is see, but to to long who month, wait just we'd that. knows have could be like see a

seen South, mentioned in of uptick Additionally, there, the easing little the potentially. we've tariff bit a you

had know the going know time. in But been at look to recent exactly like closed. that point market We don't had We really in what something coming. reopen is we most this South that's

early it's was indicator And exactly forward an far don't it's the like come, being while of maybe of going that to as we know fact what in the it spite removed to encouraging of timing things as going tariffs or reduced. the look

We did see that happen.

in. that our So welcome Outlook the concern again hearing domestic of back marketplace. overall in scheme is the to lumber with European things lot positive overall really issue mentioned, Not still all as very a whole the over around tension in coming customers. of the we of you

speculated have last that maybe year could hit down. that that see had Some peak going and its we

a not customers of lot point from anyway. concern this at So whole our in around time that coming

Collin Mings

over. you. I'll it turn Thank Okay.

Brian Davis

Thanks Collin.

Operator

question next our will of Anthony Citi. Pettinari Please ahead. come And go from

Randy Toth

Anthony. Randy for This sitting actually morning. is Toth Good in

Brian Davis

Good morning, Randy.

Randy Toth

think you high year-over-year that X% the the talk what's I Can risk of driving midpoint. up about over at just expectation?

Brian Davis

assets the Yes. been our portfolio. of management our our returns overall standpoint, on focused has From of maximizing really our

harvest investment other management We activity our revenues. well have everything our land business to from business, sale as to as direct

at actually X of years has XX end our growing harvesting to lower per from for acre our deferrals Southern the per to over stocking at the has or XXXX. past led our of tons management tons harvest some years the the of last couple Our acre end of included approach XX forest range

maximizing have mind of associated we if be a look wouldn't more important we it's the that's bit plan the a for Forest, think inventory XXXX. marketplace. Todd, you the our I to the And merchantable And little delivered consideration. talking into so value as at harvest about available with specifics

Todd Reitz

Sure, Brian.

an So ownership the main that have really implement looking Prime are utilizing XXXX. seven timberland actually three normal Northwest opportunity that just we and drivers at course have business Southern fully we it's XXXX for then to

still the we're think to to be be in going XX% producing, You that we're mix target overall range. about of going what

with delivered program fiber and a concerned, upside supply up already additional we half that. million have, a as dedicated far There's so is tons potential As with our locked agreement or partners.

the to percentage look be production, quarter if we of at to basis. compared 'XX, over As to the very QX first first quarter 'XX, a 'XX, look similar of you from

we said we opening be year. in improving pricing we've anticipate the would throughout to modestly the As remarks,

quarter over that flat be forward. quarter So and as we growing move may fairly

look more In that it compared we out little see to you quarters addition not going compared to QX think QX QX, to building. year, to consistent production production When days. to throughout as and to the bit would throughout anticipate tend 'XX. just the We're first a tend have which more quarter, and a little flow we the about year be QX available lighter we're as

Randy Toth

Thank helpful. around then proceeds you to like times a target get eight they're right XXXX? disposition. of you. like that's range to In Okay, And the the including it from Georgia, you. would Thank there by recent the looks Is end leverage.

Brian Davis

similar very leverage. had don't a target. very it's at as we question. eight was a of a Collin We're regarding today And asked target as well I direction. a an are where more have comfortable much Randy, operating We times think really Hey

period time. any not in of move that number again, over a Our down rush. we're is But leverage bias to

We have a well-covered dividend.

term no We cash We've with our have maturities and covenants. flow. associated our in and financial good near visibility predictability got

so we this having target, from at of a of And much don't direction. a standpoint a time, more it's

Randy Toth

over. it Thank you. Okay, turn that's helpful. I'll

Brian Davis

Randy. Thanks,

Operator

next question, Please our Dave go from Rogers with Baird. And will ahead.

Dave Rogers

changed wanted talk guys Obviously morning, portfolio. have everybody. IPO. markets patterns. middle I then distribution good since But have to the Yes, it constructed you since just the about

the over six portfolio So couple bigger much how months. undertaken the you've that of a last sales of now

in you you available want consider market make do the sits And quality as to highest of sale and higher that portfolio today to the for want middle you continue in? portfolio to really quality? be much the How what higher

Brian Davis

morning. is Right. good Dave this Brian,

the sits US acres top in under the have we our presentation. XX% this management standpoint, our in four of South. from current our in So markets investor

superior we've base very great feel job assembling since done asset else. anybody a that a we of to so IPO relative confident And

Timberlands the nature of an we really associated the like profile. And asset with [indiscernible] And call proceeds. large the so really transaction creative inside operational sit Georgia considerations. It's one, Two, transaction criteria that for our marketplace for us the of opportunities impact kind fit three, or what dispositions. on

for the example, model, versus a guy what marketplace, variability good more timberlands our wooden it's of do. Georgia cash of versus market with expectations our So, of outside want regarding some flow operational to us sort create associated for stumpage much deliver we normally would

were acre to Stocking because acre was X.X XX about then standpoint, our levels productivity lower per standpoint at XX active tons tons versus around tracks. on tons X.X more versus acre. been tons. next X.X from productivity the over And average per years, per XX a from of these a we've It

we've exists existing a inside model. to And us existing itself. lot a Because opportunity and for provides for to since with we Dave much opportunity our so our more and under us an There's existing more seen marketplace of in It of bought property wood what opportunity our marketplace. really deliver is assets. to legacy along liquidity IPO create well the redeploy actually execute scale so

So, in operate we today. markets we the like

Dave Rogers

criteria, recycle below those that portfolio where three And still? to how much that, then to you're the of taking making falls decision

Brian Davis

process. continuous a that's Yes,

and of we Louisiana, and recycling capital the those we've think properties consider years. $XX the recycle our of So existing Texas acquisition $XX of which if that US of in in the we million which did you marketplace pay about South about done million our We've Bandon dispositions Southwest to last of over consisted couple debt we down. properties, year activity use last of

tempo this be $XX our recycling quarter done year. seems it right standpoint, to to capital relates the about opportunities. at that first we've From million And as

will their is use We of or middle market, debt or year relatively inexpensive on what through really that $XX pipeline, of these last ultimately lower quarter it's that be capital opportunities becomes our focused in million capital to to going whether since of review creative fourth kind to $X continue doing of range. paying down our we've portfolio and and which million middle been to market the the that acquisition building of up use

Dave Rogers

total expectation on the QX? then from that Does next with do impact set and of The the think tons per you going forward, acre. given about XX growth into Thanks work you back kind XXXX. taking do that over year have And growth How that parameters you've maybe XX how you mentioned, stocking that that of kind harvest the at tons rates to stocking you your does keep out plan you XX now deferrals levels XXs? the or of for that? that down that

Brian Davis

starts So first really off, it we've quality, with our sites. high very to acquisitions had an buy the opportunity made since IPO. We've productive

XX have as down tons, standpoint, to a from expect would that tons relates grown have bring average not XX from a is slightly So normalized we while really It's growth a level of criteria. to said, on at above much we much we rate it growth That being we that basis. anticipate concern. would

feel the range maximize but that per standpoint, asset to the XX. our been we from above XX acre we've be operating we'd very operating So comfortable And tons with below that value.

Dave Rogers

Great you. thank

Brian Davis

Dave. Thanks, Great.

Operator

question And Prospect Sebastian come our with Please Advisors. from will next Albert go ahead.

Albert Sebastian

morning. Good

Brian Davis

Good Al. morning,

Albert Sebastian

Just few a questions.

the us I EBITDA January? associated with in you've, sale into in the give entered you the closed XX,XXX could guess that First, Georgia you acres that

Brian Davis

Right.

So regarding our the productivity. we can more discuss

year XX acre per X.X the that's years. next over And per so tons about

we EBITDA. You weighted give you average an can what expectation realize basis can use of on that a around ton per a

Albert Sebastian

at look guidance. a taking just And okay. your Okay,

or based bracket? for for might that about was EBITDA of give by the million. operating be million activities cash sort was some what your $XX guidance on around provided net this year XXXX $XX Could year it Your you guidance us us of a give

Brian Davis

One our that to around considered we dividends? ratio to is XX% ratio. target think payout Al, So way we about a XX% payout it regarding

dividends going of kind into back our So generation. be cash expectations the you to are can regarding you XXXX know if what for

Albert Sebastian

is Okay, okay. or under $X on ventures. was of line I item might just It And give I in XXXX. a million that number that a that million lot distributions from Dawsonville. XXXX. us be XXXX? $X what about handle Could you of for assume unconsolidated that in was joint assume a lot

Ursula Godoy

This Al. take morning I'll Good that is our question. Ursula.

right, books. contribution top-end was for our approximately the on discussed, 'XX $X as Currently, in we you're value So million near range have Dawsonville we of $X.X Bluffs million. the around

mainly mitigation bank credit. And this is from our coming

be contribution it we CatchMark beginning So is XXXX. million than more anticipate to the to at $X.X standpoint annually next from negligible it's in years call no for of couple a going pretty

Albert Sebastian

this probably be Okay, million year? line a $X.X about so will item this

Ursula Godoy

That's right.

Albert Sebastian

Okay. Thank you very much.

Brian Davis

Thanks. Al.

Operator

James. from [Operator Instructions] Our up follow Raymond Mings with Please next a Collin go question is ahead.

Collin Mings

you. Thank

follow just up is for XXX want as the kind do have Can Dave's little fourth me of acres a the expand acquisitions just the we back sit on contract, acquired then on any question maybe under the other you currently you here to go you just more more And quarter? specifically, bit First portfolio. today? to during

Brian Davis

a our area. end actually was acres, some So the space we What we've lower -- it XXX on noticed given we've our market, opportunities marketplace. existing have what small in is in operating transaction. the very middle in that this of in this But noticed

$XX pipeline number have don't there in a we're any have million into a seems under be, lot strong looking building these $X this We contract. to connectivity very at transactions. of We're kind of million currently a to We marketplaces. And of range.

opportunities efforts, area. that doubling being Capriotti our refocus has recalibrate, able since a done market efforts our our existing John really our been good job, efforts XXXX, our those us has in to in really for spearheading building IPO

up some finding that our we're kind the our good opportunities hit board really liquidity pretty for for us. of light And

really fourth So XXX marketplace. that the our to we're the about, about acres albeit is did existing in that we quarter, it we more see opportunities excited this speak but in

Collin Mings

Got that you're of potential these fit how it. deals some for And the does Northwest these into along Pacific lines, smaller the targeting?

Brian Davis

Northwest From little in Southeast. marketplace. has Northwest the Right. seeing Pacific Pacific standpoint. different bit had We're a the are availability we the as liquidity not many opportunities in in as a

our keep the to team But job creative we ears Todd is XXXX his that to of operations our has and Some done getting existing of year. speaks up eyes going expanding out be and size that associated operational fantastic and XXXX for open in those operations opportunities. and always there, -- a our during with of

Collin Mings

here. then one housekeeping me one other from And Okay.

gain as of relates as it that, around put recognizing that, acre you XX,XXX just Is to that out Just that the that of some there is the thinking the just additional provide dispositions, that is deal accounting range? large relates or as you there already range to that's dispositions it anticipated some end uncertainty from a about closed? large guidance you're

Brian Davis

related closed that's we to that in the Collin. No, January, transaction

Collin Mings

you. Thank Okay.

Brian Davis

Great. Thanks Collin.

Todd Reitz

Collin. you, Thank

Operator

closing remarks. go would and back ahead, our sir. concludes to over This for I CEO to Brian the session. question-and-answer Please any like turn Davis, President conference

Brian Davis

next Thank today we forward quarter. you us with for look talking joining to you and

Operator

The attending conference concluded. now is Thank you presentation. today's for

You may now disconnect.

CatchMark Timber Trust (CTT) 14 Feb 202019 Q4 Earnings call transcript