Rayonier (RYN) 7 Feb 202019 Q4 Earnings call transcript

Company Profile

Participants

Mark McHugh	Senior Vice President and Chief Financial Officer
David Nunes	President and Chief Executive Officer
Doug Long	Senior Vice President of Forest Resources
Collin Mings	Raymond James
Paul Quinn	RBC Capital Markets
Randy Toth	Citi
Mark Wilde	BMO Capital Markets
John Babcock	Bank of America Merrill Lynch
Mark Weintraub	Seaport Global Securities

Call transcript

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Operator

Welcome and thank you for joining the Rayonier's fourth-quarter 2019 teleconference call. [Operator instructions] Today's conference is being recorded.

If you have any objections, you may disconnect at this time.

Now, I will turn the call over to your conference host, Mr. Mark McHugh, Senior Vice President and CFO. begin. may you Sir,

Mark McHugh

good to and covering investor fourth-quarter earnings. morning. you, Rayonier's Welcome teleconference Thank

and were safe I financial and statements made these earnings Our supplement forward-looking include of on remind that statements website federal presentations, to laws. we are to released our at provisions like rayonier.com. the would pursuant you in harbor available afternoon yesterday securities

from that, will the results XX-K we start opening with of from GAAP presentations, release defined with the on in our and materially of and to Dave some actual cause financial Form referenced to filed comments forward-looking may and CEO. factors Nunes, also earnings these our we With measures, measure which may Our and list are let's discuss non-GAAP that release also Throughout statements our make. the teleconference nearest differ the earnings president SEC financial They're supplement. X reconciled materials. Page supplemental

Dave?

David Nunes

morning, everyone. Thanks, Mark, and good

high-level of it senior vice as First, financial to outlook ask Mark well following Zealand our Long, make timber review and back Doug results U.S. discuss results. of Estate results, review Then results before Forest consolidated Real our to Mark XXXX. some the comment president Resources, our I'll our New to timber we'll for over comments on will and turning our our as

we EBITDA $XX per of $X.XX. quarter, of million adjusted fourth generated earnings the In share and

Overall, of strong very prior year by conditions offset as deliver difficult our stronger weaker-than-expected segments navigating in great Real did with relatively our the quarter generally adjusted expectations were in driven quarter provided results a team the the our which segment, a line results XX%. our exceeding approximately by in timing our than third modestly consistent with market fourth-quarter call Estate and on to Our of quarter results guidance expected EBITDA, fourth closings. earnings timber was with job

and million of of we adjusted $X.XX. year, generated full earnings the per EBITDA $XXX For share

EBITDA our declined segment, versus full-year prior of Notably, prior $XXX XX% a record over certainly segment significant EBITDA asset increase value. our of enhancements extraordinarily and year XX% as this contribution by we the to well Timber adjusted Estate due relative Southern contribution from year-over-year driven productivity following Real component In adjusted an the an which primarily an see while lower our EBITDA of year. consolidated represents was which Timber decline adjusted XXXX. total level Full-year increased as growth segment Southern Thus, result all-time the by to achieved our driven primarily in segment, EBITDA a income of non-timber EBITDA to encouraging represents much for million, Southern volume from business. our largest our high our it XXXX, acquisitions represents Timber strong

XXXX realizations. full-year we volume headwinds prior Pacific a the our generated increase note high dramatically salvage on log in from fourth-quarter significant net market. China Spruce Northwest improved Pacific decline EBITDA late In the as the result significantly significant segment, flowing stronger European adjusted $XX we and finish a export pleased of market China Export in Despite driven challenging adjusted during in exceeded the prior as to into quarters were declined tariffs and XXXX. volume further log Northwest, the combined, by EBITDA by stumpage million. year volumes a three by the were implementation following exacerbated prices This Timber represents year

of competition sawtimber salvage export million. XX% declined European in segment, market results to In New decline our both from EBITDA in adjusted was the export began New EBITDA full-year in downward put domestic third managed price consolidating prices log second half Zealand since its on declines. this result export XXXX. pressure segment adjusted domestic Timber $XX headwinds, EBITDA in year-over-year in highest to significant decreases year, which Spruce turn significant the Timber of driven Despite business primarily The we led volume to the Zealand prices as by still particularly generate and

Real of we the segment, generated roughly Lastly, result. in full-year Estate $XX our which million, EBITDA adjusted year prior is half

decline achieved acre $X,XXX Estate a New XXXX two was year-over-year since Real was XXXX. This of the following Louisiana Estate sold on and transactions price have sales we XXXX, by level level lower driven number including Zealand. acres our extraordinary entirely average of large of significantly in XXXX over in an per Real in highest that in Notably, volume

past, the in premium. stated about all often have we this business is As

acres despite Estate volume Real generated segment feel NAV lower year. during accretion the about good So very we of through the our we the sold XXXX, in that

me back more to that, a over fourth-quarter turn let Mark With of it our financial review detailed for results.

Mark McHugh

Thanks, Dave.

Real Rayonier share. the with start Page million, Let's income to highlights. $XXX on totaled from was of quarter X due year Timber financial was segment. Northwest results or partially the per Sales Zealand Timber, million net our to in EBITDA Fourth-quarter $XX above New income Timber $XX million our was segments, $X.XX Pacific attributable offset $XX higher Estate and Southern a for by quarter, our million prior primarily and operating lower adjusted contribution while

capital year. provide the at Page a as prior our liquidity of end X, overview On well and year the we resources an as to comparison bottom of

was cash million million $X.X expenditures. to and closed with measures adjusted GAAP of of CAD for and capital the billion X provided Our of on $XX lower EBITDA and supplement. provided to to prior year roughly We other debt. primarily activities operating financial $XXX cash or Page cash period is in of by distribution the due year A reconciliation for CAD higher $XXX the available year compared million the

quarter Debt as in closed the million $XX the during we fourth increased on acquisitions modestly totaling period.

value represented timber Doug $XXX results. turn closing of call based debt more the of enterprise a price detailed on of our review I'll to net Our end. year over our stock our million at XX% now to provide

Doug Long

Thanks, Mark. Good morning.

quarter was $X Page million Timber our on respectively. start million EBITDA the Southern fourth million $X $XX prior quarter and the prior year in compared to X Let's with favorable of the quarter, Adjusted and segment.

higher X.X tons and XX% was the compared year approximately respectively. XX% and quarter Fourth-quarter harvest quarter, prior million of the prior volume to

volumes Although year. overall initial guidance full-year harvest higher prior year, tons below for than the the was production up ended our modestly XXX,XXX

some expect volume We flat quarter. to recapture which ton prior X% to XXXX price The of deferred quarter compared average stumpage the prior of pulpwood unfavorable in our to and guidance. compared the year the in was segment and reflected $XX.XX per XXXX, pine is

in price $XX.XX quarter selectivity compared the year quarter. sawtimber was unfavorable compared compared and The flat sales to ton per market, see pulpwood stumpage in of to was the average to reduction in prior prior prior The The quarter prior in price where in decline the our quarter. year fourth due quarter pine driven volume weakest tend an the to increased to by increase compared to price was primarily geographic we the X% mix.

Our prior ended another the which and year non-timber million, strong quarter to XX% was of compared with higher income the team than revenue the year flat quarter, delivering $X prior quarter.

and of volume, a was million, X% than delivered in from record revenue non-timber $XX contribution higher of an was a full-year year $X which our XX% our income in the the revenue. than prior Timber and of weighted slight additional Overall, non-timber year of back adjusted increase a reflects segment stumpage increase the non-timber Full-year $XXX our EBITDA prior average million XX% on Southern business. prices higher net million

prior $X to quarter, quarter to compared moving respectively. prior Timber Now on million of the Page Northwest year Adjusted XX. Pacific $X the and $X segment and EBITDA was million million favorable

and and Fourth-quarter took opportunities average the the guidance exports harvest volume was advantage higher delivered of log flat respectively. flat of $XX.XX we from of demand of result year prior unfavorable as to of prior continued favorable European harvest the salvage of in the in quarter, to the X.X competition our previous prior remain China, price tariffs XX% the with improved quarter quarter. quarter was million timber. line and tons ton year Prices and XX% XXX,XXX Full-year the X% compared the The to compared fourth tons on volume quarter. as in stumpage was year in a compared and course per sawtimber prior

average quarter, unfavorable $XX.XX in was lower net rates, favorable the prior the a increase average prior the to price compared realized sales due haul XX% the with we of year However, X% versus actually stumpage prices fourth to pulpwood pricing in stumpage on XX% year and cut delivered but quarter. coupled favorable quarter, quarter. compared average The prior to

mix. market chips pulpwood We and the in see due to we pulpwood the excess prices sawmill was continue although to export generally due the prior variance stabilized. to chips exports, reduced The believe quarter decline has residual chips favorable for the on demand play geographic Gilman that in compared to and

to year, XX% lower down delivered segment $XX Timber Northwest million, factor Volume prior the EBITDA $XX was was year. biggest but or the Pacific adjusted decline our compared million over year was of to Page metrics Overall, timber. segment. contributing full-year which results unfavorable X% our China as Timber were XX XX% key sawtimber shows well European the salvage dispute delivered log Zealand for prices U.S. down trade average by competition driven as prices from in operating as New

unfavorable the was compared was million, to lower the vessel than Fourth-quarter than volumes be and $X quarter the harvest quarter, and tend quarter Adjusted tons was third prior year and over quarter, export prior prior The million through higher the volume prior timing. fourth X% Fourth-quarter holiday in year-end the the schedule. to X% year million of $X the quarter, quarter. to due year quarter than XXX,XXX increase EBITDA prior $XX respectively. volumes lower year generally

guidance sawtimber line to was market quarter ton, over prior favorable relative export competition due to The the than gain year. prior volume, from prior increased Full-year X% increased with year the was quarter of European fourth-quarter has species. in was pine quarter. XX% by been the past our primary decline improvement per driven able $XXX.XX year. as Price prior X.XX The and radiata volatility the was higher export quarter delivered previous market other average to volume driver prior of which year of the to and salvage was versus tons was over to compared Spruce X% compared price unfavorable a demand share the the

rate, New due price X% U.S. compared the the export pricing diverted log to exchange of is uncompetitive. and markets The to dollar unfavorable due quarter U.S. when Zealand domestic the back partially and prior respectively fall impact pricing quarter, was export average domestic the tends terms ton declining prices. Note XX% domestic into year behind prior export sawtimber become to in $XX.XX per the also lag prices but supply as in to of that

and domestic X% of prior the price year prior and unfavorable was adjusted domestic pricing quarter, export contributed than to X% and Timber and compared down year pulp unfavorable $XX.XX Zealand New our and the Volume domestic quarter prices delivered X%, The the decline. per to prior ton foreign X%, of $XX impact XX% of sawtimber in was have lower up domestic quarter year the EBITDA the and the million, pricing exchange as respectively. respectively, export dollar which in additional which market. lower was year. quarter, supply X% the was drove pulpwood X% prior segment terms rates, Excluding Overall, average but compared prior the XX% full-year to log respectively, were year-over-year

prior Trading $XXX,XXX respectively. of and negative our is to the EBITDA quarter quarter, segment, the we compared $XXX,XXX prior In unfavorable $XXX,XXX, adjusted generated which and year

back year. full I'll which was the outlook unfavorable our to million segment cover to Real results breakeven, was for now the over our Trading year, Estate prior and year. Mark? it to adjusted compared our $X hand EBITDA the For Mark

Mark McHugh

Doug. Thanks,

Belfast Page for As $XX Adjusted EBITDA consisted development $X,XXX on Sales acres for XX, of roughly of X,XXX on at in highlighted segment improved Real per the $XX Park quarter category in the $XX,XXX XX-acre totaled roughly or acre. our parcel fourth Estate sales was sold $XXX,XXX per fourth an acre. quarter a average price million million. Commerce

end, infrastructure mixed-use and project Interstate a is reminder, an interest scheduled the Richmond footprint year for at As has lots of of scheduled development Georgia, this on QX. mixed-use in other major Momentum be of substantially next end the activity area. the XX Belfast by and A. south part interchange level now XXX of in is completed be our Jacksonville, is construction completion under Most the Florida, also phase increased project, Wildlight, Savannah, residential continues which and by Park development to our Commerce project generated north within new our Hill of is place to of strong. of

average had in In closed a development a stronger XXX-acre million which the caps roughly acreage, XXX County, Florida unimproved $X and acres rural sales our Rural category, category $X,XXX $XX,XXX our X,XXX totaled unimproved sold per $XX,XXX a with in acre. million roughly of across year sales $XX on transaction the development category, off XX of footprint. for Nassau roughly ever acre. In we at This sales million an or $X results of consisted sold for on acres transactions acre. X,XXX per per price Southern

Lastly, at an $XX and totaled timberlands consisting acre. average $X,XXX per price X,XXX million of sales category nonstrategic in the acres of

Pope for shows EPS. financial the Schedule of for our not Please provides moving on of guidance to our guidance Resources. XXXX attributable and guidance year. net Now acquisition release guidance XXXX full-year to Page our that our G adjusted EBITDA our note to and Rayonier by include of segment impact earnings reconciliation our a XX the of income does anticipated

our update to include Pope year. an the incorporate close expect full-year I'd presented consistent point midyear, this for the the with analyst of which contribution to from herein. contribution guidance to Pope plan our to balance that transaction around is like guidance for XXXX, the We anticipated also at of from which Rayonier some estimates how assumed in note current not we we

XXXX, attributable $XXX of $XX Rayonier Net and $X.XX to EBITDA million million full-year million. $XX expect to of income excluding million total of to the Resources EPS For $X.XX. acquisition, to adjusted Pope we $XXX

full-year $XXX expect XXXX income expect We Timber gains $XXX will tons, pricing with in XXXX lower segment of of Zealand total while Timber by geographic volumes Southern from achieve EBITDA segments will slightly to Timber to following a record to below contribution that non-timber be our million EBITDA versus Timber business our expect be Timber pricing Northwest expected due We further in expect that we segment, New X.X X.X modestly harvest XXXX lower our a Pacific contribute overall we anticipated segment, from our million In offset our adjusted Overall, million than million. Southern segment. more average year a we mix. lower will contribution to XXXX. expect adjusted that our

In lower and our million million volume. export markets impacts volumes we and to million X.X to pricing competition expect in In volumes full-year to we China of Timber the as our achieve New stable resulting segment lower well have export challenging Timber adjusted Pacific tons. conditions of Northwest average million Pacific relatively to $XX expect as the to of from competition X.X adjusted export coronavirus salvage Northwest outbreak. from Timber Zealand Overall, expect due we domestic EBITDA segment, resulting tariffs market $XX volumes harvest X.X million. We million harvest to further expect as segment, the from pricing tons of volume XXXX log X.X near-term and European from European salvage

segment demand EBITDA all the results We low will Timber we costs be impacted Zealand increased of million requirements. of $XX fuel sulfur implementation XXXX million. further by to U.S., key XXXX driver due by remain Pacific Overall, log exports expect of adjusted the Across shipping driven of experienced South $XX the expect we to the of New in the our exports both balance. on headwinds a significant the XXXX, out log and export segments, Northwest. in China In timber tariffs overall supply

of the the market This and on further to prices out potential optimistic situation manufacturing I trade in conditions. activity supply in and significant gradual New which from improvement U.S.-China the construction remain deal cautiously market, pressure export Overall, exacerbated will curtailed confident we significantly well. Europe, lead export was are has China, the China a timber in storm as outbreak coronavirus and in Phase log region. in the the of share damaged in we long-term increase that recently, quickly putting market significant both log and More captured lumber beetle by Zealand

volume as limits However, near outbreak we the challenges log market the digests consumption. European are anticipating term salvage as and coronavirus

XXXX, on of and our expect our opportunities. first relatively of of year the the unlocking Real Estate although Estate that adjusted second to we will we In portfolio. segment, development our heavily rural long-term million will the the strong activity of Estate that In identified EBITDA light. we weighted $XX contribute in have focus million, particular, property and expect will quarter, pipeline to continue $XX we value And currently the be HBU half Real segment be Real a

in impacted past, tend from As segment communicated significantly this be they by period-to-period the in results the of lumpy we've are larger transactions. to as timing

other on of supplement XX provided on capex, Details elements interest call closing of DD&A, and interests G of minority financial expense, the land back comments. turn Schedule and of financial I'll including guidance, to taxes are noncash our now earnings the basis Dave release. Page for the sold,

David Nunes

Thanks, Mark.

proud people returns share. remaining I'm long-term deliver When of upward the and in operational our times takes I focused per solid and back while easier trending performance near together coordination and are it performance priorities achieving as working financial XXXX, long-term But industry-leading year, when they much on and mission challenging As generating also were strong prices our building our operational maximizing to the of generate against value. executing are on of XXXX, more timber look strategic manage good accomplishments as in conditions it's and for importantly, are much to market value results. to term flexibility dedication,

This income. by record results at fashion coordinated achieved in adjusted to a enjoyed the smarter past our more Timber value. segment, bolstered planned team while harvest that our long-term in performance Southern harder, volume in tons non-timber EBITDA same build of generate for our deferring the to date worked and time, help we the nearly to strongest year, year, XXX,XXX We

on improved opportunities and results While nimble Estate in Northwest we our premiums we Pacific where achieved values future. properties we the our record Real were laying Further, considerable achieve teams values continue New and the HBU considerably and focused were results lower can hold remain enjoy than we in to selling the strongest capturing to our segments, Timber timberland segment XXXX, market for groundwork in Zealand performance the while headwinds peers. relative in faced our meaningful to

And improving the satisfied At portfolio. addition we relentless our never subtraction. being a focus with on of either live our Rayonier, by adage bring through portfolio, or

will have excited a and on market greater toward that we believe high-quality To provides we long-term in consisting timberlands, Rayonier outstanding under equity Pope end, entered for with the of a acquiring conditions. both all January XX mix were a of bias we agreement partnership consideration, Pope optionality announce and good into which had cash. Resources merger units We to for definitive of which Resources, of acquire this challenging limited

used offering Resources the timberlands XX% region also timber unitholders, operating units. high-quality of We their Northwest fir great them feel will future. operational per to and partnership tax improved these by our LP, sustainable yield being this to to We Northwest are also cash our timber option electing acres, of partnership Pope Douglas will has sale flow allow we timberland proportion to pride transactions their XX% ownership first which to our ton merchantable the Pacific in The to units and take structure inventory Pacific addition be gains XX%. logging, would of proportion from a of bring REIT the XXX,XXX increase UPREIT defer in greater flexibility. employ in the higher capital increase ground-based With enjoy other receive Rayonier of potential it in from in and

real grow development transaction, estate portfolio this part we our diversify projects. and of HBU properties also As high-value will and of

most the $XXX on strengths Pope Resources management both forward organizations appraisals. recent create our to to two with an of private owns Northwest. can leverage attractive third-party of the acres management a following addition, business we under equity believe assets together under and timber look stronger the In Pacific total in fund closing based platform We blending million organizations and that XXX,XXX

million expect of We cost the years next $XX annual approximately EBITDA $X cash available the distribution and over adjusted respectively, annual million, five synergies transaction that will million. including for and by $XX estimated increase approximately

executed three track approvals a on perspective. all are improving working portfolio. regulatory on busiest it number of timber from are one smaller acres XX,XXX theme bolt-on our in at portfolio We other close currently transactions management years to in XXXX Overall, through on a segments, valued $XXX approximately our million. the We Staying of conditions customary the we've of adding was closing and mid-XXXX. and across of had

through into look XXXX, opportunities we pursue As our will capital to enhance sale to per to long-term continue that allocation proceeds or redeploy acquisitions, value share. opportunities will upgrade we either land other portfolio that our

providing We investors best-in-class portfolio committed sector. to our also with transparency timberland own to and respect remain firmly enhancing the disclosure and to broader our both our

our we are our company sustainable only yield by discloses region. example, long-term that among the peers For

to past our expect to team, also teaching host Southern was Rayonier's tours value. exposed investors September, continue to showcased and what to and members provided into We portions to this of differentiated greater we done conditions market portfolio and investor similar insight current strategies where of Timberland sessions, other our create

not our pleased summary, the In building on financial only we're focus our our a challenging XXXX with of company. long-term continued amid also but value backdrop, the employees market results in on

actively seek portfolio. operations to to our ways our improve We and continue both out

have past, philosophy to we allocation capital strategy operational flexible nimble, opportunistic. our the both and and in are As be intended stated

forward to looking to to our are for principles unitholders. these long-term work toward building put value We continuing

to the now back prepared And remarks, questions. turn the over we'll the call for concludes operator this and

Operator

instructions]. [Operator

from is Mings, coming Collin question first The Raymond James.

Your is line open.

Collin Mings

Mark, Good export Dave, on morning markets. to Doug. start want you. and the Thank I

on coronavirus. First, the

on You and Can well comments any expand the anticipate as that impacting called that? as release the yet to you flow of just of recognizing seen there? couple out do Have demand in your obviously, you times fluid. the maybe China? very press into you logs a attributable How is outbreak slowdown situation

Doug Long

you mentioned, as very situation I'll Sure, with. to Collin. the This is fluid. that begin Doug. take is Yes,

have the yesterday regarding flights had situation. plane personally changed So

So probably best going And in we've the year. a Chinese daily extension lunar our it's built estimate as to best the thought aware, you're we've by what say abreast weeks, on of is I that And we're on region. keeping basis. us of that guidance year to as it's in about two impact can the will to something the and see depending how we what we for

obviously going in something regions other demand for that's China. as that go of the decrease So back is during tends just And to that important logs labor the that's lunar to probably year, home to those areas.

back now, some the And in ports. travel the and so mills cases, to it restrictions make and under they're can't

So seeing we're that's could that up but shaping up not something something shape there months, to definitely one last we're two can that out sure, where.

work going decreased people the at unloading to trucks. opportunities have We're also mills to the because back and demand to get get to to those slowdowns the can't ports ports because there's not into labors

we've we we a And about about our thinking have So lot. impact forward it's and at process we harvesting it, been what think how about sales New is going this as to think our on do Zealand. an and going

of we sales slower to people the is not be that this see being are log immediate obviously, So ports. year, buying risks to the with get some going able to

that export program wine that, of few our to some over stepping at minimizing looking months. next send to and basically the due back And we the we're China

So are of going we're during our our that countries. export those additional And we're impacts About the sending back goes goes considering and into be opportunities into to in back one-third Taiwan, as to XX% from of look an move to at pulling that market our contracts looking at our attempt as markets. under we're that slow down to markets New another volume to we this can there those building our some time. the volume taking up India to looking XX% well volume harvesting China, historically other other volume, to to where and Zealand two-thirds maximize Korea,

So shipping contractors. and with feel and plans it's core we're and select on limit good our going we we're kind to In wait going of purchases very developed weekly about But see to go. pricing to and basis. contractors working good be much very a we've kind suppliers, we of segment, as a our trading our a

looking we're how step back that So to. at we

winter So in get and hopefully, very the though that volume a believe cautious do a resolution, we a to look of seeing, that forward as it approach in improve, to and be things going buildup market. there's out just we to

cubic how there. process. that. volumes So we around million we up about we're million meters but think January, of When one a for plan X this we sprucing And be toward working backing ports, think that we're I inventory looking the or think a more react there's to to will good we another million X.X on containers the in have of at potential end

definitely, point it's we a move not can. scale at trying we're And back. as mentioned, to I'm this and and So trying as situation that you different markets time exacerbate fluid around that in to one to

Collin Mings

thoughts under the initiatives what's epidemic? beetle market? spruce And could that kind to that's update a want on That's markets of on guess, more long impact some of helpful how you've to and just the I specifically previously maybe Both as understand as work-in-progress, were likely the color. created. again Just And of that way wood I highlighted Europe. impact Doug the can continue just and export or the maybe is here us for, but overhang again, you of maybe salvage far talking latest the the impact the on Mark, from I, acknowledge maybe your this

Doug Long

Sure, talked one about, in obviously, forestry, the done get the some different of we departments early try you have we take but we information going from so objective research, agriculture. as in some haven't better To on. of put done we we Collin. on that Europe different year, ground industries I'll mentioned, date, have again. for to yet, the a Yes, boots what's looking at to this understand strategic to year that

million had million to XXX is that, damage was By pretty meters it impact XXXX the it roughly And by Europe. XXXX, XX that we grown know what Of the a would meters. significant I what increase. area XX about million so up million meters, And across windthrow. was is cubic now in say stepped to cubic XXXX, XX cubic

news the of is But eight million good that only was windthrow.

damage So 'XX reduction good from XX eight beetle in we've seen It the and estimated to windthrow helps appears windthrow an fuel the news? so between and why that cubic is meters million XX% spread million meters. that 'XX

based Austria, wood. by epidemic XXXX. we've very gotten of on they cutting in about aggressive Germans they information where, damaged some Republic Czech XX% the who impacted of we've and the XXXX, seen in peaking harvesting the And the point believe from So XXXX, were that be the are most to could

By damaged harvest XX% XXXX, of wood. was

So logging in and up stepped on that XXXX that getting then out. moved they've to moved really and

there don't have So Again, definitely out we're boots ground yet. that's the it's something monitoring. the we on

months hopeful the But maybe of kind That's to there, amount into next but on hard signs the your of It's the impacts in things. coming a some still have markets. seen that worst of come this. we as and look is behind point, to To we're couple significant the positive spruce out we tell, us. but there's forward into

And spruce By it sorry, year-over-year X% XXXX, basis, was China share. coming into or up in a XXXX, spruce made XX%. log, lumber, about of on market China's

pretty of New it's actually year. So of behind basis, a only period time a share. XX% Zealand XX% in was market And seen it at increase share, short we've in QX the of a significant that one on market

to that is much logistics amazingly to place get the amazing move It's China. in containers feat volume, increased. able primarily by to that from Europe it So they've been

this to or is a next a months we'll as to verified not. that of point handle We and things capacity still the we where chain QX be the logistically, come supply understand can go have to be the seen may also capacity basically much at couple pretty of the one have supply studying volumes reached some forward full that intel has that's chain it

that's So we've and information right what main now done to I have date. the

David Nunes

epidemic pine shelf to keep heard life. is different months shorter in the much, thing this in mind One context has from from beetle to six BC that, this volume add Mountain a Dave. the to anywhere much spruce is in is that this Collin, three estimates years. very We've to

so And that to speaks really higher cutting. proportion wood they're this of the damaged

trying value. fast it can, They're as cut they it still to has while as

limited Another capabilities. is that to is important substitution wood that nuance this understand has

well. So it for example, real does peel not

And area pine large somewhat so a of fairly our protected into plywood radiata markets. that where is that's market New chunk Zealand goes and the an

but the volume, unaffected is the the against, as both absolutely spruce in market general construction volume generally as Northwest a that's compete spruce the so lumber we that And well Pacific U.S. the that affects by

South.

Doug Long

I'd That's board's finger-jointed spruce furniture, the European Zealand U.S. the play well in. molding-type New that the markets doesn't benefits from Yes. In right. say plywood

and in going market spruce type seen thing. underground of do doesn't for well treated well South, And we've European landscape pine uses single the for that.

some there, potential lumber opportunities just the there's of So on obviously, construction volume but a there lot there's side.

Collin Mings

to export if OK. to markets, try commentary as New up we to together your Pacific the appear substantial Good. were particularly, the yield end can the regions. actually there the plan tie just above And And pretty range the the of expected. Northwest, Northwest, year, maybe overall, it maybe for again, be upper all the there would that Pacific harvest in of the and Zealand I the in jump and again, switch actually, sustainable to relates

stumpage in know I you done year lines, anything about Maybe of just a maybe it in can is quarter And about you like Northwest. to the regions. sales Pacific just this in the the harvest in increase remarks some those know the specifically Northwest, in prepared that your other than these it some expand. referenced Pacific along decision the log elaborate given delivered I of looks first was opportunities headwinds. on the

in some talk of a harvest Pacific headwinds. just on bit these little Maybe the Northwest more plan the given

Doug Long

six other market you United remarkably based some Well, to was the delivered year pricing for States, the warehouse tighten the channel adjusted can year these take our that QX reasons, pace chose announcements sawtimber announcements British chain. volume we see, of the lumber the some this reduced supply Columbia these would are anticipating Intel and exports. through to and start from in last market year. the a but suggested at the and flat to the as And mills months on measured of we Sure. improvements, as deferred in on Therefore, stocks draw it upto most really run

export but being moved that we see price markets. Pacific the this single-digit believed improvements realized As And began was the across curtailments BC logs. the we into QX, of was in to impact grades, signal we a all

chose had to stumpage success. market and pleasing quite we that So again test really

per QX lower as prices So on between attributable stumpage realized XX% better a well logging increase QX our we ton and a net basis, costs. as quarter-over-quarter and

the the pricing respect we improvements quarters four for curtailments. that has, demand start in to lumber stable particularly So some kind believe we year related believe a last that that we point market lack with see area, of the of and with stable of the that reached exports, has BC to in to

David Nunes

couple could points that. to I add if Collin, a of just

was on is the within brakes part levers them. our I can that a you intentional year, pull, year to important timing you generally. of think tap limited on have that certainly very a the during but one it's it move note to

that to we saw inventory so taking the long for mills a And time the BC go system of curtailed. were through that kind

me, things the why into quarters, and we harvested that of on XX%, annual you have. one of volume. market XX% in think in and I three our to captured based very QX of about was saw gets that's And time nimble. QX, markets intentional. the to annual I the the trying XX% excuse earlier first the on that volume we we that And And was pushed it QX, or importance And the being where intelligence of really the back discussing

we have some The is your to recognize I deferred note other regarding XXXX question would volume. thing that

some And a that that so higher is of volume being of deferred seeing XXXX. in representation volume captured you're that

Collin Mings

one, theme, optimism just related on again, tariffs And you can Northwest this some that release the could over. And Phase Okay. you to to evolving recognizing the logs this an situation. by China decision in X press last of sticking of cut the maybe one from then next benefit and in expand it's on with turn highlighted Pacific Any the early I'll week? kind But Dave, trail? read if it

Mark McHugh

Doug mean, I'll and look, experienced coming Mark. year I export that, some significant it's I'll color. Collin, then year, which going really some market in take add let the into headwinds. we off a we're as

agreement. better I they get that can trade Phase is expectation Our with only the

still. It's agreement that what's exactly unclear in

better to had logs, even impacts being through still for tariffs an trying I what industry. rolled what again, certainly means is unclear had sort some we think last if means sort We're our but off, to about announcement really it what through trying it's still we everybody year. today I for than China think it And their respective that industries.

we're our that will optimistic cautiously we see But as expectation I can we our expectation, relative forward, like said, of were coming that of trade we from. move some Phase again, agreement. it from benefits get is kind to the point better we this And only where I guess, general

Doug Long

to Mark. agree just little a would add I I with Yes. completely bit. that

by of there in we that in things this acceptance standards culture and One our I the food Phase set saw trade the deal of was China. was provides for rules that

controls They for as a that products. And accept quality of really we sign. a agricultural number see positive US

we operations seeing ago, where of that curtail containers to couple mentioned reasons times. fumigate a three up the we're opportunities calls to significant our of a of having export we trade One chose logs lot barriers, we're to non-tariff from of really was

exceeding And so those value transferred. being costs, the that cost logs the is of are

tariff. the what meant. that understood that We the wasn't that It operate with driver. was So primary we could

I China we accept just big deal send believe. is China. acceptance in in quality that But we every quality a do what controls to the agriculture, a that's controls trade us, the we check Phase is that this couldn't going of to around US With blank lot to win logs time

barriers and something was couldn't that you just it hoping to us really reduce we're the So that just will just non-tarrif caused back pull control.

lunar a out coronavirus, Year to we're and Obviously, see for, be that the if hopeful plays there, little that's but that. the how what to hopeful it's we're happens going and So point. while Chinese understand New with to Mark's to something

deal. to $XXX buy point in XXXX. in agreed the services China XXXX and important additional Another is billion has business in

they'll 'XX $XX where category been additional in the for billion manufactured and XXXX. $XX has And wood of included, in pursuit billion actually us within call goods, which an is

So we billion. Purchases The and XXXX delta potentially too. about or logs about about is XX%. is billion, and the XXXX, good $X that were down $X.X pulp XX% China between as down see upside, wooden from

that's So know work to and those increase there's are be we back and definitely some going in work. pull the upsides point, are the with, give these us have how to reduction agreed Again, part to purchases. We that Mark's opportunity things know some non-tariff just barriers in we of to hope. that

Collin Mings

Very Thank you. helpful.

Operator

next Markets. question RBC The coming Paul is Capital from Quinn,

Your line open. is

Paul Quinn

Thanks very Morning, much. guys.

the just you increase levels a question sustainable harvest Northwest. in question, Just Pacific up following mentioned on the Collin's and

for right levels New If the you South, Pacific harvest just could review Northwest what sustainable and are those Zealand now.

David Nunes

in our them Yes. Sure, XX-K. Paul. disclosed We

believe U.S. the I So

year's our tons, X.X million is X.X the to last X.X New I and disclosure. X.X recognize to last is South Zealand that's X.X. Northwest is disclosure, per Pacific

year. during some the We the have portfolio had of course activity

release particular, course our in we've acquisitions yield that that's of weeks. some a Zealand, XX-K evaluating the to in updating that we of latest currently sustainable be but there our New disclosure, we've when been with respect made, couple our we'll of

Paul Quinn

And helpful. on pricing, seeing what in you're the That's just then log U.S.

South.

I for in mean, barring I of seeing of kind flat any the pickup, some almost wondering regional kind deal. I'm this you're seems if just be trade ever. improvement to Phase

David Nunes

I million think I our I sorry, tons I'm X.X yield I X.X Northwest, before should there. sustainable said, have that, Paul, answer And it's in is said million tons the

Doug Long

I'll question the South. on the Sure. in take pricing the

that's classes for And but happen of been few we've has states. years, past years. will to for been as a shifting a more a So harvest age discussing period, the for process due Gulf to few temporary

lower net sawtimber between there's regions. region two our these in QX prices just XX% prices, Alabama a this from and reduction corresponding Mississippi Terramark On and coastal represents year-over-year region volume timsaw volume look if stumpages. see the geographic highest between at dollars Atlantic you with that increase you several basis, a prices shift with And stumpage XX% and a South can net spread our a

XXXX, for outlook. into continues trend is slightly pricing down volume reason this our the which So

to geographic flat. mix is when really lot it was So you why think at a do about pricing

have areas shift flat acres that really up held seen lot more volume two. with that significant certain but the between in hard region that shifts areas, stumpage, of to we in lower and shifted have productive region. in actual a trended has net are A other opportunities We've in the

kind non-timber the these I'm net on to out is So word when to that performance. adjusted and you some speaking over stronger for to operational to trends, you many at the as and from look got calls tough we've customers had per total our acre backlash up actually volume me say. specificity, even refrain of income, of year a when non-timber submarket level basis, competitors of EBITDA income kind listen year, QX

about as to to these there's needless say, it for folks talked we've who markets, are tougher some us. listening some and made other opportunities more in So specific calls

So we're shy going that. away from to

Paul Quinn

a we region, Gulf next the to when Is saw the is to to balance that of that the ease that years? more to shift five two of ago? number that expected in So back years

Doug Long

time two for that's in exact Yes, time the Yes. range that's in works but don't the years, to them. five It's that have year the I range. just next it is.

Paul Quinn

going And on was Great. then here? the last had just costs and question I in guidance noncash forward that doubled why

Doug Long

We recognized a those as getting basis into sales, have development the we're them. attached component much improved of to more higher

baked into as our so higher a have looking improved And for we're in level estimates at we development sales the XXXX, do year. particular, of

Paul Quinn

Thanks.

Operator

of Pettinari Anthony from coming is question next The Citi.

open. Your line is

Randy Toth

you. using is Toth South your pricing you EBITDA Anthony. your closer like looks is per guidance This It X% into morning, the assumptions? XXXX? XX% expect in for Southern What just and Thank Good to fall sitting Randy about in to Zealand New Zealand. and that talk New guys. in actually ton expectations for you baked Can just those

David Nunes

without a are mean, that partly is was year-over-year second on down that's midyear. there I and basis, given of New going worse a the expectation I general half we've a the our was first think price New be pricing, specifics Yes, to our than recognize in decline into Zealand on half, getting and meaningful prices function Zealand, considerably

year-over-year today year, I'd of kind we're last of we where the we're anticipating the half pricing the relative been going a few or because say than of be basis, forward for of extent, so a year prices the sit to weaker months, to year-over-year represents current where basis, modestly. expectation of a kind last to the half down pricing large but on we've on And are first the our rolling

Randy Toth

switch just gears. maybe That's helpful. And then

helpful. through supply lumber we can selling extent broadly inventories just the you at on that comment dealers? be the As season, can chain? would spring color and you approach the Any to the decks there Log

David Nunes

I very have different specific It's I guess can say, due really to across don't location, of I or down. wet variable. is a very country. weather Yes. the up parts

where supply restricted been it areas in seen the has wet. have We

coastal also Southwest for in So Georgia like things the parts the Northwest Washington wet of in even of year Texas, it Coastal wet and parts had that, that a but has over been very in area.

normal. we that no things intel market contraction, specific So some are seen of outside have but

Operator

question next is Wilde, The coming from Capital Mark BMO Markets.

Your line open. is

Mark Wilde

on circle kind wanted think out Dave. back of yield also offsetting Hi, the is that field kind below color little is in there like could I there. close in you come some in Northwest, on above these and the of yield. I year. and to harvest doing you're doing above what a then this concern you're kind of pushing the of South up Maybe of you're you're kind last morning really put confirm just what volumes because that because there sustained It sustained kind XXXX sounds the

Mark McHugh

Yes. take is This Mark. I'll Mark. Yes, that.

a and is I largely function mean, both taken we've XXXX XXXX And South the across the segments, the deferral look, that I Northwest, Pacific think, in of pickup in and XXXX. our supply. that lot can't again, market I yourself think that of kind sustain with of you can't then a indefinitely a run mature finding of timber. risk deferring the and And with really

market, to when when trying ramp we're look, back, time pull be measured we up. sales, think, to I we in of go we so how how terms we And

regions, after we getting two anticipating of back year. are below next those of of expectations in of that some that Recognize both years kind harvesting

Mark Wilde

in to Zealand of New of you you, minute. now sense I kind just for Zealand of are Can us put of to export first what where versus all, then right quarter? a the log out pivot a And up wanted New give fourth prices

Mark McHugh

granular so like this like competitors today export rather or something said, about that we kind is and kind Yes. of tend pricing mean, generally to I Again, we to where don't we of being customers we listening month on on kind next do. getting comment Doug not again, and have call, see of the where pricing, I'd intraperiod see it

Mark Wilde

a inclined valuation. curious, downturn market invest if volatile or I'm New about next significant flows bigger would Zealand. you over a year And to been just New It's another and see cash swings Zealand two? always the with we there be in question in more more

Mark McHugh

you always willing view conversely, you're I always line if very the have And when Mark, those And are yourself can on you I to we're can when never long-term you're is find think a up, buy to overpaying. markets opportunities. cycle. take class. because buy opportunities for to long-term looking if find down, are trend this through asset you And look, buying markets missing yourself pricing a if think

think And so in think I particular, timed some New we've there moves our in I quite Zealand, well. of

XXXX, was XX.XX New it when implied we increased and We of our over stake bought in in stake an appraisal our If of you XX.XX per we $X,XXX per there. recall acre. value increased acre acre there value and per back implied our last in Zealand

right, And price much so historically standpoint. has been from market it volatile a a you're more

from also a standpoint. cost And

in when a XX% with You that revenue pass-through. where swing top the recognize XX-plus South, revenue, the does that EBITDA that bottom margin of say stumpage moves of have more is line volatility, terms of that line you higher particularly if effect in pronounced on it to in you're measuring percent kind than export a business, off price pricing stumpage has much market, your that cost lot

longer-term it so pricing. is of And we're volatile having invariably, a market. view a to more And take

comment, over point other the kind earnings of prior three course terms the of of I with rocket a growth mean, in if experienced Zealand, ship in you we've the I'd make And particular, The New obviously result years. Dave there started is the the we that it is in third achieved the XXXX. in third sorry, at since a we've consolidating business I'm highest look the that result XXXX, it highest, made XXXX, achieved we

coming in that in so commensurate some I for the extraordinarily has revalued we don't entire New that been segment Zealand. EBITDA, think certainly markets of strong million And XXXX. example, off we're with sector did $XX-plus

and this region type it's while trying of cycle, helpful people through the multiple lower world. we're business. a are a that of you so have earnings underwriting volatility, not to something the targets that manage so in to it kind where price of with and It's whatnot. business It's obviously It's live

David Nunes

importance this is under US, Dave. bolt-on in that, utilizing acres. we've the Zealand. bought What of transactions New year, talked like We those. same two just this Mark, We add $XX million in spent properties about the just to on I'd done billing the X,XXX small we've

We're we keen very the be are Zealand also in pretty there. disciplined at that approach to in that to. that looking we of in tend age manner. class help deliberate them. happy with bolt-ons typically say We pretty opportunities But in of down sort fit are that's and a a New us so regional it I'd number a there is something And can

we're make referring down the for look and you're have to a prices sense. in just over and the standpoint last saw competitive we from we get any of But it pullback we're log continue that as of we'll some things less frankly little And has it on to markets. the that to whether that side And on years, impact few valuation the in a run-up been term, transaction to type the we've on of going the for long transactions there. see

Mark Wilde

about one last of just in terms the think Dave, too general proximity HBU how I pretty bought market. the with you you pretty then holdings want close but on is just You land this. specific, a be till around best there I And a it comment potential as much does mean, don't those mean, to and with can for you me. me, land you pulp, probably metro fast-growing I'm deal, on kind curious, to future sound? of strike lot large

David Nunes

Yes.

that of think give a rights that has Pope for smaller thing conversion. where underlying in that from that have has also does I monetizing benefit things. of having of their XX-acre that which lot conservation land the sold of is strict a through use a Mark, with state doing on would lot creative is the I lot a land Washington of comment you say, I very on land a two a precludes some of they credit that development act recognize management lot growth easements, holdings, zoning them areas. of

purposes. for in those lands brings constricts then sale development remaining rights, flow the of that cash also but supply it those can used It from of be

geography is perspective. in and certainly those keep But that that attractive with mind, it restrictions So the the an you're limits. portfolio on dealing in underlying

in excited sense the you the I the where just probably few job Seattle Seattle. from more now legislation we're ago, much think is access ferries, particular, into Downtown a passed to going more in with Fast-Ferry with market years that that Kingston have passenger-only

And so of Kingston projects part lot will that on improved their has that we market. the Kitsap the Campbell. rate portfolio benefit the a think absorption in of North the HBU both Port Pope it in and has And

types Richmond South see to of akin And our of Hill, more projects. we Wildlight those that so and Savannah,

those we're come so to into excited And the fold. have

in and understand We to set both them here think the right we the that fold do we skill the have them business into South.

Mark Wilde

over. interesting Both up those. both I'll to I've turn of situations. Yes. it very been

Thanks, Dave.

Operator

from Babcock, [Operator instructions]. is The John coming Bank America. question next of

Your line is open.

John Babcock

morning. Good

niche assumes, to course, see even would the if time. on relative beetle. at that other to are of some the compared return Southern would Radiata? minimal kind ultimately pretty that to its to their I where Pine be But of recognizing exports Yellow how relative niche point. comment the First South So from this over you spruce question, that to be the China? as guess, this Chinese pertains into spruce? Yellow to market would was of could Where way you are all its does just like I products Pine it this Southern some wondering making China And back

Doug Long

take that I'll Yes. one.

pressure of primary market these the of for uses tariff one is the So trading. seen, even niche we've markets kind in that

like your, that going things kind for your like in mentioned I ground, of that. the things for So for post, say or decking are

well for absorbing globally definitely being really as known Pine. good a Southern the treatment really, Yellow material chemicals. it’s So niche It's

it that, one obviously, like treating. And like accepting we've of is river things so tides, seen that's strong, the where markets

So not the salvage in kill well spruce and as general spruce regarded. is near just

has species other the So that's world. Pine the an area that advantage in Southern of over Yellow many

John Babcock

much for for And demand this assuming timber so extended for salvage in there is an that period? issue room lasts whole China,

Doug Long

so lot our much Coast and the harder. tariffs, a I went chain supply would doing in market we a the that significantly, still But and tariffs that of place, now We're of was volume, it the yes, into to Atlantic it well of received. keeping off open Prior were market. say, growing we're that got goes doing minimum kind once amount

growth So for yes, move I we things. think there's past opportunity if can and tariffs other

David Nunes

another goes the New China the the of John, by Zealand. is that versus mind flowing into in break to Southern thing you out see volume keep in Northwest container bulk and

down cost shipping. the that of the And so boils it really container efficiencies in port. And the to of effect,

of as so ports saw put the could still tariffs be competitive into cost place, that having And compete we constricted in number structure. terms it the of

big so impact. And that's a

that a So of will ports to number market. open can the compete up extent bit. loosens that the competitively Phase the reopen that I up, deal in opens little that likely that up and It

John Babcock

I How you the Zealand. much that question, then And acres to acquired there? for just you guess, second you. New back Thank did X,XXX quickly, pay

David Nunes

$XX million.

little So acre. $X,XXX just an over a

Mark McHugh

acre in plantation recognize all timberland. exclusively It's New that values all the be over Zealand the can John, map. per

influenced So it's of by the heavily age property. class specific a

David Nunes

And a yes, particular, on it. one lot merchantable John, of those had in properties, of timber

why that average two for so you see that's So the high.

John Babcock

then That's question. helpful. just last And

recognizing opportunities It like it? in be Just income a will here, XXXX. from bit how of further non-timber income assessing kind little are down to non-timber grow you sounds

Doug Long

That's Yes. a question. great

do looking respect those other a can helping of how carbon and capitalize with we to we be on people team can they're what we forest products, have neutral. kind constantly So at opportunities,

going on a of we've there. out lot So got initiatives

a until acres. ones new lot but you infancy, they team want their in identifying ideas my about to competitors. are of can scalable to in to finding they've of kind point don't of been don't kind out Not too are once tasked them with of always give so specific because going to is go that again lot A talk about across get want and opportunities also those achieved, time, the that and any

Operator

Mark Seaport. coming Weintraub, Next question is from

open. is line Your

Mark Weintraub

Thank you.

the year is the have normalized. on to decent what relatively by be historically side, in there's it we're XXXX differences So recognizing still direction pricing for like a looks forecasts, U.S. going considered would Yet, struggling housing most of submarkets. been by

pretty to that while? get But that going to still thoughts pricing been on it's step take is hoping Any waiting change and sawtimber for we've a depressed. what for

David Nunes

recognize at South that a growth step as governor that cases, some you're that acted think some keep the has Mark, in you are pricing the mean, that. to differential. some ratios about you we on I on also But cases large across that fairly in that's based build had two page have web price continue teach-in to least in I drain change materials mind, and can the our elasticity look time relative and inventory between our spent in one going in at we differential very But are well that, and and And cycle. a prior under and that, believe now you're above September, in of that referencing, times.

thinking that's price so be time standpoint. spend in, of something is the at function from you're about what own South of part looking portfolio a we to that really recovery and And and on a going it a lot of our

Mark Weintraub

Thank equation? this you. the is not so to or important component And Asia how

David Nunes

proportion markets, a if benefit. to would our else Northwest to being the have similar U.S. equal, friend. And is fairly I optionality to got we attribute it your you've of think and high And I all you're that additional going

South proximate portfolio ports. that to is

the the inventories spruce And so short more China you markets, optionality you're fire the in in European But we're and dealing with to have extent from product. today, lesser have that and, wood. strong ship least elevated the at going the Australian recognize salvage coronavirus to extent, to Asian to a term,

be we nearly see longer don't we we that opportunities term, short the think would are there term. so And to think But going the U.S.

earlier, a discussed standpoint, we competitiveness as South, U.S. from the port

at other of up to suppliers a in wood relative competitive it global portions into nicely very or South price very that stack market. bring can and

Mark McHugh

least, at few South nonexistent the in that was recognize Mark, And back. market a years mean, I essentially that

last year. fact the back that so And pulled significantly it

effect And I that the comes that's put more as opportunity to a something market. opportunity it on opposed there. of likewise, think looking a have going to when if think upward lost on back, a and to real prices some necessarily we're we depressant as pressure kind that's

that think the also I extent of local is by not getting to the And not to the local region, in of U.S. region. that helpful also sawmill. out the out log that sense or contributing supply the you're being in It's processed export chip market it's that

out of the sawtimber that both prices. And so taking fiber and for is positive I market, think, pulpwood

Doug Long

which Southern cubic were increase of to tariffs, June Pine of thing. would XXX,XXX the type without quarter, it kind exports XXXX, announced South XXXX, was I second but just add to doing tariffs of QX China. was in to And significantly. on of meters that, scalability Yellow was in about that going Yes. those

top On ports company, thing. doing ports the two lot same to competitors moving ports And that, port one saw of our to from own we're to four we type things. a of three

QX, cubic up, think but meters. of XXX,XXX So there was in. I to scale our came lot was kind a of obviously, In opportunity about the tariffs estimate

saw we decrease. XX% a So significant

like So operate was the I that the many point brokers as we're scale fact ramping the myself a said, as well And but that period. That time. other and million in up means that by people up other peak. can know process good, building at of is folks, was in I $XXX no still

when was Yellow take tariffs those the Southern in Pine. unfortunately, for And right to came market off starting

Mark Weintraub

And then more probably I Asia domestic a the that worse that the perspective tensioned and the is a Pacific given little situation U.S. and very quickly, improving the on that than North, market didn't I'm guess that surprised housing get

those some there? more to there South that Any for be seem you in might markets be that price forecasting what improvement color weren't anticipating XXXX. than you

Mark McHugh

there of QX and That that QX we of is it in of kind a near-term some approach, we middle we're we where materialize. part XXXX the back trade within a that was what last we prices think prices. and will Recognize I of that in situation, said didn't decline would that got big had by pretty fairway resolution be taking year a a the bounce of Well, seen see to U.S.-China view. burned anticipating in trying take measured

cut Pacific up guidance the for And ended pretty so significantly our having midyear Northwest. we to

of we're four at now quarters relatively pricing. or of so stable sitting so And kind

the we're at depressant where the relative volume year, market a thought, terms market, going okay, effect to think volume are think that thinking it's we're out try push to were to we of the now much able have this I we advantage on we place about last to an fact we prices where that actually reasonable price. in how if to is

tomorrow's is price. do is price today's probably we indicator the improving, as but the view so And feel market though best generally that look, I the of hold

going And taking think, expectation that during I the are setting bullish have view things year, of forward. on kind revise of develop going be kind could a really to to just so the how of us to course

following some the that we relatively And But agreement something to do. bake real sit we to of four so as do think, look, I pricing, trade clearly today, if think to here we opted I that there's quarters flattish momentum is see not of that Phase numbers. from in these kind upside we

David Nunes

virtue Yes. that the And enjoyed meaningfully that And harder it's going to to that historic just of therein into present it of that in Pacific make is Northwest Northwest market. European spruce is lies volume market, market. that that Mark, while lot a to you that much have bring volume recognize that also by tensioning

So another that's our for reason some of just caution.

Mark Weintraub

you Thank for color. the

Operator

James. question is last Collin Raymond coming from Our Mings,

Your line is open.

Collin Mings

Thanks.

few me. follow-ups from a Just

compared development Mark, million? should last year's investments, closes. transaction $X Real once far we in recognizing spending Estate the As But how this change to likely will Pope think as XXXX your just about as

Mark McHugh

some it in range generally ended is Wildlight. a basis, relatively going recognize and been to $XX would the I that And didn't million carryover to in more than $XX Richmond the that million Hill and area, Commerce going there's we $XX but million, next XXXX. from $X be to XXXX only higher to doing of Yes. initially year-over-year guided both probably flat million because that, up year say, be I'd think we $X million on so And had to clearly that's occur. Belfast in have

David Nunes

year. capital which Yes. that really had Hill Richmond Collin, in that biggest year jump project, a fairly that year of this over the in is growth But really component small

exchange may a recall, a opening project. we constructed interest interstate in lot up new And there's that's more being as speak. You that

forward the sales to later with for some once moving this that we're position so completed And is help investments of year. ourselves

Mark McHugh

going XX-K. specific I But it's talked be have range course, to for that in purposes, planning the about. that of We'll, guidance on just in think generally, that I

Collin Mings

I again, during quickly to then XQ There want want non-timber John's like don't non-timber to sizable in And back just income, it looks that in a question, and Okay. go New particular, increase sales was Zealand. was rate? recognize on that you maybe but think uptick just Zealand? should that, specifically kind about unusual New Or too of be in that specific, an the sustainability a to go-forward we as about run Or just talk can of there? you

Mark McHugh

XXXX modestly think I was in Zealand. No. definitely probably elevated level New

a different You our a key example, And business record three year income within bit in our across South, region, had we the XXXX. for non-timber is then even quite different. bit a a recognize quite regions that

That's kind pipeline leases of the sustainable. that your those but be of that tends opportunities, easement have core tend be income, kind Northwest, was A more lot to by income, recreational year-over-year in you it to driven one-off also tend which sales. then of is only recurring New is and carbon is again, do at times. certain a salvage Zealand there. on credits carbon but revenue, speak, that you which get cedar recurring, credit primarily bank, somewhat have to be that to legacy of can so there In we And Pacific

But not infinite. have, growing. is that generally it's would say, I the And we not bank

time. over off taper ultimately will that so And

Collin. Sorry,

New option, their for thing just the and carbon changes market I is December, key the fixed going emissions. late some was carbon price actually to of Zealand kind mention trading government announced XXXX raise one the to on in $XX the

$XX And ultimately, announcement. say, so jump on we from, to that range saw $XX.XX prices

so And down $XX.XX. around back

kind as the people So will and of seen surrenders as trading that of expect basically pretty in go in we up goes last carbon that, kind just month on, a increase time have typing. approach

per some move for things unit there's with forward upside pricing as carbon the us. respect and to So

David Nunes

for credits can of granted Collin, that basically and then you clarification trade. carbon that credits a credits during rotation. up And income. Zealand That's just, small talked And potential have can you net were are you with source, in the sell. some back New source that's of And end an give you this you scheme, to harvest non-timber outside we more that legacy Mark volume keeping ongoing about, a which when

Collin Mings

just kind Very on Pope then of the there. transaction during in you me. And of tap investment the aggregate a acquisitions, obviously, like on one kind more here for one completed David, can on XXXX. fairly in activity the touch But Recognizing did last little And it. remarks, acquisition prepared Got expand for the then quarter, you of maybe XXXX. the it just for sizable bit look fourth level specifically does a U.S. activity helpful

South.

David Nunes

Sure, One, transactions. transactions. under Northeast and Collin, XX acres just in QX, those for the year, negotiated which full had In Florida. XX four was we of was XX,XXX we had were bid. were three

Texas transaction about for another And of X,XXX had XXX Washington in that had We East in a transaction acres. state. under acres we was small then just

the acres of so XX,XXX we're Overall, three. million $XX those, And spent across we with those. across three covering approximately all happy

Operator

I to comments. closing for it back will McHugh now turn Mr.

Mark McHugh

today, and everybody, to follow-up free Well, with feel Thank additional please questions. with you. thanks, any me joining for

Operator

this all conclude will at conference, parties may disconnect This today's time.

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