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1. Company Snapshot

1.a. Company Description

Rayonier is a leading timberland real estate investment trust with assets located in some of the most productive softwood timber growing regions in the United States and New Zealand.As of December 31, 2020, Rayonier owned or leased under long-term agreements approximately 2.7 million acres of timberlands located in the U.S. South (1.73 million acres), U.S. Pacific Northwest (507,000 acres) and New Zealand (417,000 acres).The Company also acts as the managing member in a private equity timber fund business with three funds comprising approximately 141,000 acres.


On a “look-through basis”, the Company's ownership in the timber fund business equates to approximately 17,000 acres.

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1.b. Last Insights on RYN

Rayonier Inc.'s recent performance was positively driven by its Q2 2025 earnings beat, with quarterly earnings of $0.06 per share exceeding the Zacks Consensus Estimate of $0.03 per share. The company completed $1.45 billion in asset sales, surpassing targets, and reduced leverage, enabling opportunistic capital allocation, including share buybacks. A special dividend of $1.40 per share, consisting of 25% cash and 75% common shares, was declared. Additionally, the company announced a $0.2725 per share fourth-quarter cash dividend. The merger with PotlatchDeltic Corporation prompted an investigation by Halper Sadeh LLC into fairness to Rayonier shareholders. The company is set to release its Q3 2025 earnings on November 5. Rayonier's strong balance sheet and growth potential from new land uses, such as solar, wind, and carbon capture, are notable. According to a report, IFP Advisors Inc boosted its stake in Rayonier by 8,272.0% during Q2.

1.c. Company Highlights

2. Rayonier's Q3 Earnings: A Strong Performance

In the third quarter, Rayonier generated sales of $178 million and operating income of $42 million, with net income attributable to Rayonier at $43 million or $0.28 per share. However, on a pro forma basis, net income came in at $50 million or $0.32 per share, significantly beating analyst estimates of $0.23. Adjusted EBITDA of $114 million roughly doubled compared to the prior year quarter, driven by strong performance in the Real Estate segment and improved results in the Southern Timber segment.

Publication Date: Nov -11

📋 Highlights
  • Merger Synergies:: Anticipated $40 million annual cost synergies by year two, driven by operational and corporate optimizations.
  • EBITDA Growth:: Adjusted EBITDA surged to $114M ($0.32/share) in Q3 2024, doubling from $57M in the prior year.
  • Real Estate Performance:: Generated $74M adjusted EBITDA, up $54M YoY, fueled by a Florida conservation sale and development strength.
  • Timber Harvests:: Southern Timber segment EBITDA rose 13% to $43M, with 24% higher harvest volumes offsetting lower stumpage prices.
  • 2025 Outlook:: Full-year adjusted EBITDA guidance raised to $215–235M, with real estate and land-based solutions (carbon, solar) driving growth.

Segment Performance

The Real Estate segment was a major contributor to the strong adjusted EBITDA, generating $74 million in the third quarter, up $54 million from the prior year period. This significant increase was driven by a large conservation sale in Florida and strong results in the real estate development business. In the Southern Timber segment, adjusted EBITDA of $43 million was 13% above the prior year quarter, driven by higher harvest volumes, which increased 24% versus the prior year quarter, more than offsetting lower net stumpage realizations.

Outlook and Merger Update

Rayonier is on track to achieve full-year adjusted EBITDA and pro forma EPS at or above the higher end of its prior guidance range. The merger with PotlatchDeltic is progressing well, with integration planning advancing and expected run-rate synergies of $40 million by the end of year 2. The combined company is expected to have a diversified timberland portfolio, a complementary Wood Products manufacturing business, and an enhanced platform to unlock value through HBU real estate opportunities and natural climate and land-based solutions.

Valuation and Capital Allocation

With a P/E Ratio of 4.61 and an EV/EBITDA of 6.98, the stock appears to be reasonably valued. Rayonier expects to maintain an investment-grade balance sheet, grow its dividend, and invest in growth opportunities. The company also sees share buybacks as very compelling at the current share price. Analysts estimate next year's revenue growth at 3.8%, indicating a positive outlook for the company's future performance.

3. NewsRoom

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Rayonier Proves Money Can Grow On Trees, With Potential Merger In Spotlight

Dec -04

Source: seekingalpha.com

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Does Rayonier (RYN) Have the Potential to Rally 27.87% as Wall Street Analysts Expect?

Dec -01

Source: zacks.com

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Trump's 50-Year Mortgage Idea Could Be A Big Gift To REITs

Nov -20

Source: seekingalpha.com

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56,820 Shares in Rayonier Inc. $RYN Purchased by Accordant Advisory Group Inc

Nov -20

Source: defenseworld.net

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Buried Treasure: Your Map To 13 Strong-Yielding Bargain REITs

Nov -17

Source: seekingalpha.com

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Mason Hawkins' Strategic Moves: Rayonier Inc. Takes Center Stage with 6.09% Portfolio Share

Nov -14

Source: gurufocus.com

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Rayonier Inc. (RYN) Q3 2025 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

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Rayonier (RYN) Q3 Earnings and Revenues Beat Estimates

Nov -06

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.75%)

6. Segments

Real Estate

Expected Growth: 4.65%

Rayonier Inc.'s Real Estate segment growth of 4.65% is driven by increasing timberland values, strategic land sales, and growing demand for recreational and conservation properties. Additionally, the company's focus on high-value markets, such as the Pacific Northwest, and its ability to capitalize on emerging trends, like outdoor recreation, contribute to its growth momentum.

Southern Timber

Expected Growth: 4.83%

Southern Timber's 4.83% growth is driven by increasing demand for lumber and wood products, fueled by a strong US housing market and repair and remodeling activities. Additionally, Rayonier's strategic timberland acquisitions and efficient operations contribute to the segment's growth.

New Zealand Timber

Expected Growth: 4.65%

New Zealand Timber from Rayonier Inc. growth of 4.65% driven by increasing demand for sustainable building materials, favorable government policies, and rising exports to Asia, particularly China. Additionally, the segment benefits from Rayonier's efficient forestry management practices and strategic land holdings, ensuring a steady supply of high-quality timber.

Pacific Northwest Timber

Expected Growth: 4.83%

Pacific Northwest Timber from Rayonier Inc. growth of 4.83% driven by increasing demand for sustainable forestry products, favorable weather conditions, and strategic land management practices. Additionally, growing global demand for wood pellets and bioenergy products, as well as increasing prices for softwood lumber, contribute to this growth.

Trading

Expected Growth: 5.4%

Rayonier Inc.'s 5.4% growth is driven by increasing demand for timber and wood products, fueled by a strong housing market and infrastructure development. Additionally, the company's strategic acquisitions and expansion into new markets, such as biomass energy, contribute to its growth momentum.

Intersegment Eliminations

Expected Growth: 4.65%

Rayonier Inc.'s 4.65% Intersegment Eliminations growth is driven by increased timberland acquisitions, higher pulpwood and sawtimber prices, and improved lumber demand. Additionally, the company's strategic capital allocation and cost savings initiatives have enhanced operational efficiency, contributing to the growth.

7. Detailed Products

Timber

Rayonier Inc. harvests and sells timber to sawmills, pulp and paper mills, and other wood products manufacturers.

Pulp and Paper Products

Rayonier Inc. produces and sells pulp and paper products, including packaging, printing papers, and tissue products.

New Zealand Timber

Rayonier Inc. harvests and sells timber from its New Zealand operations to Asian markets.

Real Estate

Rayonier Inc. sells rural and urban properties, including timberlands, to individuals, companies, and governments.

Silviculture Services

Rayonier Inc. provides forestry management services, including tree planting, thinning, and harvesting.

Carbon Sequestration

Rayonier Inc. develops and sells carbon credits from its forestry operations.

8. Rayonier Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Rayonier Inc. faces moderate threat from substitutes, as timber and wood products can be replaced by alternative materials such as steel, aluminum, and recycled materials.

Bargaining Power Of Customers

Rayonier Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are often customized, making it difficult for customers to switch suppliers.

Bargaining Power Of Suppliers

Rayonier Inc. relies on a network of suppliers for raw materials, equipment, and services. While the company has some bargaining power due to its size, suppliers may still exert some influence, particularly in times of high demand.

Threat Of New Entrants

The timber and wood products industry has high barriers to entry, including significant capital requirements, regulatory hurdles, and the need for specialized expertise. This limits the threat of new entrants.

Intensity Of Rivalry

The timber and wood products industry is highly competitive, with many established players competing for market share. Rayonier Inc. faces intense rivalry from companies such as Weyerhaeuser, Plum Creek Timber, and PotlatchDeltic.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 43.46%
Debt Cost 3.95%
Equity Weight 56.54%
Equity Cost 9.43%
WACC 7.05%
Leverage 76.87%

11. Quality Control: Rayonier Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Hannon Armstrong

A-Score: 6.5/10

Value: 9.1

Growth: 4.4

Quality: 6.4

Yield: 10.0

Momentum: 3.5

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Rayonier

A-Score: 6.5/10

Value: 5.1

Growth: 5.4

Quality: 7.7

Yield: 9.0

Momentum: 3.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Lamar

A-Score: 5.7/10

Value: 2.6

Growth: 5.1

Quality: 6.5

Yield: 8.0

Momentum: 3.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
SBA Communications

A-Score: 5.2/10

Value: 3.9

Growth: 6.9

Quality: 6.6

Yield: 3.0

Momentum: 2.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
PotlatchDeltic

A-Score: 4.9/10

Value: 2.3

Growth: 2.1

Quality: 3.6

Yield: 9.0

Momentum: 4.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Weyerhaeuser

A-Score: 4.8/10

Value: 2.3

Growth: 3.0

Quality: 5.1

Yield: 8.0

Momentum: 2.0

Volatility: 8.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

21.51$

Current Price

21.51$

Potential

-0.00%

Expected Cash-Flows