RYN - Earnings call transcript Q2 2024

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Operator

Welcome, and thank you for joining Rayonier's Second Quarter 2024 Conference Call. [Operator Instructions] Today's conference is being recorded. [Operator Instructions] Now I will turn the meeting over to Mr. Collin Mings, Vice President, Capital Markets and Strategic Planning.

Collin Mings

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

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

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

Mark McHugh

Thanks, Collin. Good morning, everyone.

reflecting and pro during activity. Market volumes income of period with year. Overall, EBITDA in the prior share. and the segments, high-level following it on review the EBITDA we'll Chief ask Officer, harvest Executive net comments harvest consolidated deferral Then to attributable results. generated First, Financial I'll lower President financial Vice decline $XX generally second forma of before quarter, review Chief we April the adjusted million make demand results. over Officer, Timber Tice, $X in Doug Vice and and of adjusted turning year of some real our the second balance And results challenging discuss $X.XX will million softer President and much our New outlook quarter Resource Timber of our remained Zealand conditions U.S. Senior per or our for the segments, our to some to comment to Timber estate April our our versus and Long, of

the segments our over segment which this stronger recoup on versus for Timber further We translate to down expect half of balance second Timber should year, collectively. Drilling of results. results to volume much operating our the half first

offset segment a more EBITDA of million as in in quarter Timber $XX harvest XX% period the from Southern realizations. our adjusted million, EBITDA offset year non-timber the million $XX second decline last quarter, prior lower $X in million stumpage net a completed the and generated a than X% late reduction $X down XX% to net was prior year Pacific volumes Our Timber quarter Oregon of year down as realizations. In improved harvest than stumpage Northwest volumes from improvement sale segment, more income adjusted second due

to our Zealand New segment. Timber Turning

harvest The adjusted lower $X expectations Real exchange stumpage impacts. In versus adjusted generated million prior entering million, our significantly quarter, second lower driven realizations improved the of our was but period. Real the of quarter development versus of EBITDA in Estate segment and closings Adjusted quarter offset adjusted sales down due from year improved favorable by timing first increased was $X our and prior partially decrease we EBITDA in the million business. the below EBITDA carbon credit decreased the net Second $X million by quarter. and EBITDA volumes segment, foreign quarter to our $XX Estate year

lower adjusted guidance call, in track our detail we toward full in half $XXX will April half of will to than strong, However, second be results. Real $XXX results prior achieve of the as first greater Overall, discuss significantly in year higher we that segment our end EBITDA million to later are full pipeline remains million. transaction on our range expect the year and Estate

target part our beginning excludes any the that billion asset guidance potential in impact sales we the at we as disposition announced As the additional year of the financial indicated full year, of XXXX November. $X of

As that interest quarter, transactions by stages second efforts leverage several on in and disposition relates prospective advance private buyers currently of large various we our public received made values it reduce for from we have the and encouraged we've we disconnect are the been during our as the target, progress and evaluation to significant assets. between to capitalize or timberland negotiation. Overall, continued

our expect over transactions call. With financial earnings turn second be a before to results. in details We provide pending April me or next additional regarding for to let it quarterly position details to that, more on our on quarter

April Tice

Mark. Thanks,

the net million Rayonier per income share. share. Moving and per $X.XX net our income of prior the quarter $XXX,XXX on the in was million included financial Sales million net $X of quarter settlements with million pro to On X $XX in in Page $XX Pro $XX associated was costs $X.X period. attributable quarter, million, the highlights down the second related forma for was disposition $X from second EBITDA million operating to year a or legal forma was of supplement. to and $XXX while income million, items second $X.XX totaled plans. Adjusted the costs or basis,

provide Page an resources our and bottom capital overview liquidity. X, we of the On of

Page Our first partially to and of the provided second decrease closed on net supplement. We cash CAD of X $XX driven and adjusted lower other with year the $XX available reconciliation million cash versus by by billion cash prior activities $X.X financial half million by interest in provided for year GAAP debt. distribution, roughly offset operating cash was of of measures was million EBITDA, of period. The quarter or CAD, the the for is A paid. the lower $XXX

average end, the approximately no significant average maturity approximately maturity X.X% X.Xx. -- to X approximately net with and years, until quarter maturities our EBITDA of portfolio was was XXXX. debt our debt Our trailing weighted adjusted XX debt months debt weighted cost of was At

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

Douglas Long

April. Thanks,

strong and of fell or in our prior constraints higher Total $XX X% the at driven markets. to pipeline below improved harvest volumes revenue well partially Pulpwood per costs $XX quarter year of residual prior higher slightly as $XX average the region higher the improved weighted year growth non-timber as Timber sawmill Southern U.S. with quarter X into business per Page Adjusted $XX was prior the roughly solutions Overall, prices second prior in the availability pricing X% year year segment. quarter sawmills. Meanwhile, translated to volumes period most sawlog per offset end most our on EBITDA in increased XX% a was chip to stumpage reduced ton. the roughly and by quarter pricing stumpage XX% net XX% second due weaker across of continued install to stumpage as realizations. pricing easement million prior markets versus revenues. Average quarter in more period increase by the stumpage X% in start weather-related million a net the ton. Improved in offset lower quarter lower pulpwood compared due decreased by the market year demand ton, pricing Gulf from chip land-based versus prior was demand than our than versus $XX Let's was

that continue rates destocking have demand prices XXXX. containerboard containerboard the weighed cycle in South. past rebound heavily operating improved Market to the following on over and year, pulp inventory

our areas. as to to weakness continued we demand operating well the Pine quarter quarter markets. weather throughout may have demand across drier in Log Turning lumber that Southern indications as in point Atlantic seen gray softened second pricing. due the Encouragingly, Yellow mark second the low

Pine of Yellow price and lumber over the a discount species. between seen Southern nearing Additionally, past the we've few months, other

current and the reduce and remains turn, we repair producers less operations overall relative diversity picture are our as housing output reducing are in the mills remodel and demand in for production challenged their to term. opting region, lumber over in seeing sawtimber That with the Lumber markets. However, of response demand strength continued U.S. said, softness adjust conditions. In responding to several near the by market mills for by

that production a U.S. positioning footprint interest anticipate South us advantage strategic cuts log potential remains on we end capitalize allow navigate in the lumber ramps occurs, pricing up market we believe rebound a year. When in our as following competitive this demand headwinds. again will these later stronger as expected this rate key to We

South.

export pulpwood during on to due reduced per Douglas Timber a year-over-year XXXX. At a net decreased combination that lumber X% the compared lower non-timber volume. The despite second tension. Meanwhile, the markets pricing, revenue, the lower and Adjusted the challenging for million haul to domestic cut prior and and below of delivered lumber pricing lower of proportion but strong of Moving supply-demand in the quarter. year XX% down period, the to the quarter, Oregon completed pricing per market disposition dynamics due weaker period delivered favorable as versus late $XX the during was benefited at by EBITDA per for quarter average ton, $XX domestic prior remained was year in pulpwood from region. million stable Overall, we volumes fairly XX% mills, volumes ton, $X sales prior Northwest during from in market quarter increased face log Pacific quarter offset XX% second the decrease exports. segment prior demand XX. U.S. year a log from realizations was second in lower The reflecting sawlog primarily stumpage pricing the to headwinds to in stumpage Similar demand and ton costs large net continued and on harvest favorable domestic delivered decreased Page per Pacific partially driven year $X our improved Northwest lower on reduced both stumpage by realizations. Volumes quarter to

by the potential XXXX. in in been through our thus enter should season current lumber balance with peak sawmills prices move far constraints uptick we of conditions as potential to resilient South, believe supply the pricing that into We as as reducing fire year. recent pricing better stable region the these production as the fairly with some we in modest to market threat upside fairly the translate lumber responding are align has of demand. Still, of the well

metrics levels inventory softwood rebounding to the back of approximately offtake lower fallen export ongoing generally of The Timber from per the Lunar New below by to XX,XXX New segment. Year, demand the a few prices, X% million decrease the and log log compared Zealand inventories in continued harvest balance offset the At Moving XX% weak at inventories Zealand. prior million XX year X.X to remain delivered year for XX,XXX in in down prices us compared months. average Zealand end Positively we has declined China adjusted EBITDA past to $X was quarter favorable ports property seasonally million modestly year. Shifting to the $XXX though, in meters environment. driven demand Chinese impacts. Average the relatively XX% of that through as ton port market. volumes China's following sales quarter operating exchange of year New as move cubic ports Adjusted the and the foreign EBITDA meters, delivered demand. After higher pricing shows approximately reflecting to sawtimber $X July, will have challenges give was more by New subdued, conditions over our be Offtake favorable results optimism construction lean primarily at Chinese quarter. materialize prior and in to X% cubic Page adjusted weaker domestic sector. corporate the stood log key period, to weighted the partially prior decrease year-over-year. The constrained by second daily roughly

or impacts. period soft competition the amid the construction well delivered year average interest exchange as prices reflects market decline X% foreign pricing a including market. quarter from from export selling Second environment rate demand, X%, prior The local reduced higher fell in as the

in we market price XXXX program standpoint. relative healthy over Zealand half period. year the remain in active New income ,as million the temporarily we that New as the amid first to reflects significant carbon of million increase sales $X in year higher of The sales from suspended non-timber course of Zealand remains the current quarter credit the our carb prior increased Second in year-over-year anticipate market period XXXX $X historical [indiscernible]. We a

the in quarter. segment, in registered results second Trading our a Lastly, we breaking

activities to generate and cover provide to now economies additional typically turn As results. of April timber estate back fee to our a low real it business. I'll our reminder, designed over our export are scale primarily trading to margins

April Tice

Thanks, Doug.

for from two X-acre development project acre. Despite nonresidential for per as to $XX,XXX $X.X as development totaled revenue during considerably than from detailed price Zealand. in million residential development healthy interest an Jacksonville, but at we quarter part XX, interest deals are large our As category Georgia, Wildlight end second project adjusted sold down million first average $X,XXX south benefit per Page environment, Florida, second our favorable sold an $X.X sale $XXX,XXX pods sales the to north on projects acre. Real stable, estate homebuilders for $XX to of the the fueled materialize segment in improved per of see million. migration was Estate totaled the sales our nonstrategic both acre. or EBITDA contribution some continue of points. million timberland And relatively taking or well in in on affordable rate continue financing the a Estate acres consisted and environment. segment parcel our by million, elevated Real Hardwood in Drilling of was quarter $X commercial from Savannah, higher developers $XX quarter, as Interest remain longer from price New users current Real the we the XX,XXX patterns

lumpy timing opportunities Day our we development our a growing as February, continue see we expect the to that will land detailed we of pipeline sales in business. in While remain quarter-to-quarter, of Investor in

Turning to our rural category.

totaled consisting at sales approximately X,XXX quarter $X acres an million, of price acre. roughly per Second $X,XXX of average

continue demand pricing and While for the elevated rural to some willingness buyers interest favorable. to remains the of transact, rates overall properties impact

quarter, and conservation growing As buyers looking impact-oriented among have interest we to place discussed last seen capital.

a larger We to balance of the expect as continue move we the sales from contribution year. these through

production year. several venture with a is closed transaction the interest. overall as portfolio. indicative second with acres timberland the and a transaction our only of parcels of this per million on classified we review relatively $X,XXX strategic during acres about average last total cost also our initiated roughly to acre operability, above age isolated The New New of The was young quality Lastly, transaction not for approximately below sale plantable. The reflects related class acre. quarter, $XX consisted in not of sale the New and XX% this average is Zealand price or joint value mid distribution the Zealand. for XX,XXX included of asset Notably, below-average alternatives per geographically our of It the timberland Zealand nonstrategic

Now the the end toward moving to our $XXX end our results that first half year, we EBITDA expect prior range million to now be forma EPS Further, Based prior be year balance will of million. of pro expectations modestly the $XXX for the on on of the to guidance the we of below lower expect for low guidance. and XXXX. remainder of now our outlook full adjusted

announced to As part sales lower a our volumes our With guidance billion potential prior harvest reminder, segments. Southern end guidance. expect the In disposition individual impact any respect toward from excludes additional year asset Timber as of we full $X our our target. the of previously segment,

higher a be volume prices of flex proportion due second Further, opportunistically stumpage market less a to compared lower conditions. we to look we sawlog our geographic first volume. As to relatively as that will the the realizations half favorable response half in pine anticipate in and year of lower mix, the to thinning

continue year Overall, encouraged expect volumes income momentum year full EBITDA Timber land-based full for range. In guidance. of to our Northwest XXXX the of we non-timber full remain guidance toward the below our and achieve higher we to solutions Pacific business prior year our full expect anticipate Timber to slightly lower we year our adjusted segment, XXXX. by prior relative Lastly, end Southern

has far thus in XXXX, market been domestic ability As log stable Doug constrained to export relatively challenging conditions conditions. pricing and been have our increase delivered discussed, prices by but

below there New volume expect range. In we expectations year, achieve in tempered earlier adjusted guidance Pacific second full of full upside segment, track year conditions, Timber domestic EBITDA year as our adjusted the expect move that modestly on the to to prior Due half interest shipping Zealand compared year the as compared year. we lower see the modest Overall, Estate the development we have anticipate Zealand our we as Timber in While pricing XXXX. rural guidance to year is Northwest continue EBITDA we our our we during full markets believe slightly New potential as year will pricing of full prior through export segment, end we slower, we our year are some costs. In guidance in pricing half. Further, expect Real elevated export balance properties. higher and volumes healthy Despite pricing fall lower projects our to achieved the sawtimber the our Timber towards carbon relatively and relative first harvest the continue softer our sales, range. full to to of improve to and to we improved

We EBITDA the back Mark. heavily turn activity continue call now over quarter. I'll range transaction guidance within in our full to the anticipate concentrated with prior fourth year to adjusted

comments. closing For

Mark McHugh

Thanks, April.

As to of long-term value demand. Despite strategically an lower of shareholders. To domestic challenging facing year, operating to more has in posed this focus improvement with harvest mill proud end, markets face I'm best year, continued and of by are in in rates making headwinds defer our markets in the to decisions Rayonier lumber first pulp ongoing I the sustained U.S. encouraged half how its market team of headwinds soft the by we reflect our challenged export interest on the operating on and conditions the navigate some we sawtimber markets unwavering this the across elected preserve

and year. reasons China give corresponding year, pricing capture. The to the that of coupled balance low able we've public the gains this the been optimism over inventories rate prospect us in log with South for cuts footprint continued additional later in of

continued for higher environment. real development we've estate rural demand rate both and been the by the front, pleased interest the On despite properties

half. significantly we contribution our during year half As second segment Estate versus discussed, the a the expect from first Real previously stronger the of

already continued advance we're half our important the favorable real more first categories. Throughout the bolster conditions year, demand we've initiatives. strategic financing healthy seeing the to that across estate also of believe also We further could

our front, pipeline are pursuing we is solutions high-quality counter-parties. with by energized team land-based the of the On opportunities

and a grow turn more the We continue for bid time. And to leaves over with efforts our concludes as the believe this now discussed earlier, target. I'll questions. uniquely There timberland of the our our disposition billion a these achieve target. details remains months. That the base for prepared revenue that coming forward I private us progress our positioned regarding variety We to options made sharing advance in to strong market, back we and disposition in executing streams to towards call land $X pleased continue to we've remarks, the well look operator to are assets we

Operator

[Operator question Research first Instructions] Seaport Weintraub Mark Our comes from with Partners.

Mark Weintraub

originally questions. quick you had to disposition frame, Or time you is be the thinking any right One, when Two an announced about? suggested the there? update duration plan that XX-month still

Mark McHugh

Mark, of. Mark. frame thinking right is still that this Yes, time is the be to

details As as progress bit remarks here We've sharing forward a we look in next more or made last quite we release. in the before to the prepared the months, in on said, of earnings call. and our several as well

Mark Weintraub

might You in comments. you any any can And some But specifics forward terms that appreciate give were during I general done any made Okay. us that. -- on moved of additional of land-based terms in there concretely updates then have quarter? solutions? things seeing that the things

Douglas Long

Doug. is This Sure.

But and team of XX,XXX of acres range we've On our XX,XXX year-end acres point, lease the current recently, the targeting still on high-quality of we under executed storage capture for mentioned capture over before. way opportunities we X,XXX goals continues our on to with call, having another as options achieving seller. we're under a front, carbon our last acres And over to well storage discussed for added solutions leases. counterparts land-based advance your to

reduce sustainability solutions use is and the ambitious corporations many commits provide our positioned believe these increase So to portfolio we of continue including uniquely to their carbon energy. large goals, those renewable footprint to as setting are well

current of success we have did the quarter progress -- great and the in are year. rest forward we for move So core some seeing the

Mark Weintraub

about Great. targets guess you that. And targets. you in forward how back those February, curiosity, from versus felt do I in months February? provided today back How in you about them X feel some we're

Douglas Long

we opportunities. feel still we more probably And very about February say else, seeing good I'd interest anything for targets. than these had of we're in type if those Yes,

Operator

question next comes with Pettinari Citi. from Our Anthony

Gregory Andreopoulos

Gregory for on Anthony. is This

locally I in First, your full what's what Timberlands. guess, comment quarter year implied saw wondering various you just to the across second and the Can also if maybe I'm on subregions on prices kind guidance? And there there then kind disparities you are there. in in your Would are thoughts drivers drivers more main the love of are operating of to there any of South, the sawmill regionally? hear nuanced rates? Or

Douglas Long

start is there. Sure. Doug, Yes. This and I'll happy to be

mind exact I delivered of think thing of and important do a don't going in And and current we And control year have of we'll is keep in harvested. a the sales. is that's the to we be combination year stumpage and stumpage when to one of selling a have quarter sales year. to the towards the that start end buyers the typically harvest, track those QX prior beginning

weather year, your as the And saw our along we Texas, Coast half for that kind it's so first to timing historical there worth the there's or such average. the of the short-term the to rain can than extent of differences. resource more there market And issues softness Southwest so Texas, unit, Gulf received southern some point, portion Louisiana be I Louisiana, yearly the the of in noting think

if saw Huston a so worth that, first can flooding year's flooding received and months, you over [indiscernible] probably in saw you you the that, in X like any Houston, that. things of rain So things they in the like storage new appreciate

where some to in harvest it's we've areas there. And So just we market seen the too deliberate conditions, we brought and volume. see been did about pretty given to in we've but plus, what we those look improvements harvest, market chase to didn't reductions wet

and the across our for units. our southern are quarter of you of challenging of So stumpage all that July said, ahead kind a forecast after removals second

some move we seen as we've So there improvements forward. across

Gregory Andreopoulos

could have carbon I on credits. just one if maybe follow-up then And

then. kind pretty carbon April, I'm the of credits dropped So since off New looks like they based off in data Zealand on sharply it they've of kind and off, leveled seeing, March, leveled

sheet, are kind wondering prices your New stabilize some out to market a I'm then rigorously for pretty has allowed you -- come at of balance have put are all sold can And balance or credits the these can the that back little what's context to demand this credits there, if credits like sheet because you whether And around has test. you on Zealand it tested. headline into bit the supply So all? I'm tightened. of pretty kind put the recently about only quality, Bloomberg be XX% approval seems asking able on U.S. high of failing your

mind, may if So about be in the is premiums? in market, my you able way to to Or get better are not U.S. right it? credits that commending the pricing think good

April Tice

Greg, this is April. I'll take that.

over I'll take question, just turn up. first Doug follow and to your So I'll the to then half of it

as in from Zealand New -- quarter, we in about XXXX. second worth supplement, $XXX,XXX QX in So in detailed of of that and the garden $X.X million sold up we was our credits

in such sales as was So sales early year, resume because we last in said in we XXXX New in we'll talked our Doug Zealand market. there deferred prepared volatility later remarks, about but year. and our the the

that's we'll in we're We're So what now. Zealand. being about we're how doing them New selling opportunistic --

in as far the stability like As market. the

reach has So full the last drop What quarter, was auction some way an -- they're that and continued. The earlier subscription. contemplating failed this overall, indicated in the near to drove it quarter, price in any was that the the changes has year there term. significant ETFs in It's -- it the to March been government the regulatory not really stabilized. was for that backdrop been

after point. backdropped pretty much the that So pricing

is so from -- leaning the And a is It's strong. around which XX strong historical perspective. overall, pretty NCD, but to XX pricing still

And so we're continuing be active that to in market.

Douglas Long

more your things a markets the of little just that. and I'll like And Yes. address quality question around

our Integrity to in discussions Investor with continue yet very the And for sense deliberate made and quality we evolving you really are very carbon progress do credit timber buyers, moving potential move as They're see encouraged Council So thinking high-quality reductions. market that to said, to process. creation who how they higher with that hasn't from forward. That very we something market credits, be customers forward verifiable we will a given about ICVCM. us that carbon going our discussed as is benchmark high carb what those believe And basically that by coming emission mentioned, represent we're carbon voluntary for create our real, given the that recognized globally markets, we're EBITDA, in they voluntary is at as it be focused really Day, principles high-quality just and the core discussions our on credits. ensuring of that's towards approved for that additional

lower we this are been for way to market therefore, lower So is the and quality the we've into less clear on milestone paves major the meaningful waiting that [indiscernible] and come really think out future a this that and, from verified in price near supply. really ones

X commitments. And approaching we focus on people net that. really really So over supply XXXX that beyond outpace will longer time horizon, their still believe the as man

and ourselves we're so incorporate pilot carbon pursuing to these core positioning support that with and principles. latest this meaningfully growth to improvements with And project the that demand contribute projects

develop we're think this market and run to we room still patient. pricing to So and time has has being some that

Mark McHugh

Yes.

to ability been a market, two Zealand whereas New the market, the credits are are issues credits those is in are about of a in As voluntary credit. a credit the issued carbon -- in monetize market lot the have been fungible. obviously not with quality some credit of in a the a press as historically that voluntary markets, it just recognize not U.S., those and those There to credits credits has relates different regulated

but in less certainly you'd fungible, we standards I get we're not So to they voluntary evolve better considered like there see more market, as to think or the a yet. are point where

Operator

Markets. Capital from with RBC McKellar Our next Matthew question comes

Matthew McKellar

of has momentum Wildlight so? Could over and you from but the few lot share -- how builders if the years, you mentioned observation just the in good community interest, past you're thinking signs a about built in year that see at caution area? pace what development next wondering the or over any you of of

Mark McHugh

-- how the there's of that's it's we been homeowners publicized up well. lot hindsight, of lot in up of held that a say terms higher interest I The single of essentially the are market. stimulate that held for market buying demand the locked transitioned homebuilding homes of rates. new the have mean into that -- particularly -- market home market. And resale for has in existing very been know supply has reasonably in face that has mortgages, to I'd up well construction now family in much in benefit has pretty into further that low really successful order in demand homebuilders which been large essentially rate a dried of rates down so national market

that think given as state price our projects other markets affordable transitioned U.S. We broadly homebuilders. as large the have when transitioned I demographics or do certainly the Hardwood and relative those terms that areas scale in you those more very Wildlight project, to And national of we've even we've of more of and dealing areas of certainly remained at the the attractive. point think look towards with relatively well

pace we markets. And of -- pretty years a interest good seeing more overall, in it absorption ago. so that today feel of those that was I certainly and But market of think about we're still than look, cautious the the level couple is the

Matthew McKellar

maybe you to some your you in Okay. any with maybe otherwise the operations infrastructure then the benefit for heavy from to areas, conversely, area? in expect to Debbie would or it versus better disruption Or timberland be And specifically, the expect in road even given potentially tropical other of some owners south harvest QX impact the storm? business, do whether of rain

Douglas Long

up Yes. This a seen be mean happy sure. foot. over Doug. that to rainfall from question. in I'll to is obviously, X localized Yes, areas, inches I we've well answer

same So like At on pulp time, lumber well as being capacity, able short-term and it's you have mills in and say, logs. produce as point it's the the reducing a to going to impact that. things

short those there's slowdown we increased We've so our believe like opportunity lenders moving some infrastructure So comes in do well recognize investments as we're pricing for there's term, that into volume that. made potentially do a around. mills to as your crews removals, point, an from investments -- And but think ourselves. already the we to

the a major impact operations, on think long with our diversity, don't So there. impact of kind Georgia, term, a there's it coastal our be of And Florida, but short it's no geographic the term, is had it rest we our it. impacts going but

Matthew McKellar

Great. Okay.

last for one then me. So

market on the conditions you Any the additional out change in QX? exports market the of seen touching Have Northwest. to tension you in compared Just there? Pacific saw what in log any

Douglas Long

I same. would much it's the say pretty

So we're China of still exports -- the seen, the significant opportunities into change. but little pretty for bit Japan quarter-over-quarter. same improvement what we've additional A from to much have nothing remained

Operator

Horne question next Raymond Our Buck from comes with James.

Buck Horne

for the kind Debbie [ ground continue to of weather we the follow-up be, on follow with have I just ramping want storm ]. kind guess harvest up post busy to the recover of to your across would very throughout season activity somewhat situation the quarters update the It of like feels really I guidance on my kind up a the deferrals. and dependent XQ is Southeast. third if fourth

the flexibility, guess, if the the to we season across what's active region. wondering a region fairly Just across I storm continue have

Mark McHugh

the start upon that's very maybe for levels half did contingent the to in harvest and I'll that higher in was volume Buck, any South. We as Mark. guidance the and Zealand have more the QX when in you this really But and harvest large Doug then detail. And Northwest year, of around kick it is a Pacific U.S. back well, the in mentioned additional so recognize less New over the

towards actually of the volumes harvest year had guided lower We balance for South. U.S. the in the

particular. South in

and to private be that due than Northwest. More constricted infrastructure some the a pricing that some the we weather sense the we've when the of Rayonier So wet nonindustrial also recognize that Zealand to is commentary double-edged the you specific better a from the timber really we is that again, to But tension harvest the the more perhaps Pacific well-invested stand around events when we have was in developed. And so due short and timberlands in to and could some lands of volume that storms seen. access tracks, landowners. large given road can -- that a some But recouping removal owner benefit see the balance -- sense often our to than over to year we tend of New impacts inoperability activity certainly, have of to South. volume

and some that. But I there And you'd add Doug, don't to takes there. anything are know, so again, puts if

Douglas Long

that that great operations a offsets you been has seen where did you job if what oftentimes to think reduced risk That a would I typically point constrained we've pricing I Mark, our point that. means constrained. with everyone typically, to your just of said. reiterate else impact pretty to the volumes much

to think add. I more

Buck Horne

question. below That's at the related payout sustainability But to, and dividend helpful here. a to of well really guess, color. moment. Cash kind trends you. Got the I related I the to it's seem schedule dividend combination be then is guess trending policy flow And

thought ratio what's the dividend With back the near-term of that addressing the are balance sustainability sometime into the this process on around sheet? or near the what's the payout planned the the of in Kind and next dispositions future. year, year what's for or outlook flexibility half

Mark McHugh

paydown and the our year, activity this harvest with long-term discussed time. And real about payout Clearly, higher to closings. dividend remarks, to also year the keep of it of with estate as respect disposition. It's of year dividend the last that start late in Rather, noting than proceeds we don't has prepared is where our on start we off with CAD this this as and of last Oregon funding quarter-by-quarter sustainability slower basis. the mean focused focus worth we're some at in year we our short the debt year-to-date million largely this year, due gotten I cost we the timing point related that's only slower Yes. ratio even $X or to anticipated. But were to of manage to during Buck, the is relates really really really mind, growth. on on some a a

we're asset continue on to course, on share we right target. Of now, advancing Which focused CAD disposition be basis. further our really to accretive a per will believe

at least impact flow. very and fully we funding there. deleveraging is close put of factors this We to effect, we're year, funded it. And that the going cash a forward, the expect as than dividend plan half together, half first higher will take be targeting you from we second further all see dividend still rate should improve these the When significantly cash flow disposition our expect run also

Operator

this showing further will I at conference the questions Collin. turn time. back am no to I

Collin Mings

us. Please like contact This us I'd is Mings. Collin questions. follow-up thank with to any for everybody joining

Operator

time. your you Participants, disconnect for this Thank may participation. you at

Rayonier (RYN) 8 Aug 242024 Q2 Earnings call transcript