Company Overview - Rayonier shares have increased by approximately 0.8% since the last earnings report, underperforming the S&P 500 [1] - Recent estimates for Rayonier have trended downward, with the consensus estimate shifting by -80% [2] Performance Metrics - Rayonier has a poor Growth Score of F and a similar score for momentum, with a value grade of D, placing it in the bottom 40% for this investment strategy [3] - The overall VGM Score for Rayonier is F, indicating a weak performance across multiple investment strategies [3] Outlook - The downward trend in estimates suggests a negative outlook for Rayonier, currently holding a Zacks Rank 3 (Hold), indicating an expectation of in-line returns in the coming months [4] Industry Comparison - Rayonier is part of the Zacks Building Products - Wood industry, where Weyerhaeuser, a competitor, has gained 0.9% over the past month [5] - Weyerhaeuser reported revenues of $1.76 billion for the last quarter, reflecting a year-over-year decline of -1.8% [5] - Weyerhaeuser's expected earnings for the current quarter are $0.19 per share, representing a year-over-year decrease of -9.5% [6]

Core Viewpoint - The research service "Asia Value & Moat Stocks" targets value investors looking for Asia-listed stocks that exhibit a significant disparity between market price and intrinsic value, focusing on deep value balance sheet bargains and wide moat stocks [1] Group 1: Investment Focus - The service emphasizes deep value balance sheet bargains, which include net cash stocks, net-nets, low price-to-book (P/B) stocks, and sum-of-the-parts discounts [1] - It also highlights wide moat stocks, which are characterized by strong earnings power at a discount, including high-quality businesses and hidden champions [1] Group 2: Market Emphasis - The primary focus of the investment ideas is on the Hong Kong market, providing a range of watch lists with monthly updates for investors [1]

Financial Performance - Rayonier Inc. reported sales of $82,922 thousand for the three months ended March 31, 2025, a decrease of 27.1% compared to $113,704 thousand in the same period of 2024 [18]. - The operating income for the first quarter of 2025 was $59 thousand, significantly down from $8,632 thousand in Q1 2024 [18]. - The net loss attributable to Rayonier Inc. was $3,424 thousand for Q1 2025, compared to a net income of $1,357 thousand in Q1 2024, marking a shift in performance [18]. - Rayonier Inc. reported a comprehensive loss of $7,300 thousand for Q1 2025, compared to a comprehensive loss of $1,153 thousand in Q1 2024 [18]. - Rayonier Inc. reported a basic loss per share of $0.02 for Q1 2025, compared to earnings of $0.01 per share in Q1 2024 [18]. - For the three months ended March 31, 2025, Rayonier reported a net loss of $3,085,000 compared to a net income of $2,306,000 for the same period in 2024 [29]. - Cash provided by operating activities was $27,699,000 for Q1 2025, down from $52,298,000 in Q1 2024, reflecting a decline of about 47% [29]. - Rayonier's comprehensive loss attributable to unitholders was $7,398,000 in Q1 2025, compared to a comprehensive loss of $1,170,000 in Q1 2024 [35]. - The company reported a basic loss per unit attributable to continuing operations of $0.04 for Q1 2025, compared to a loss of $0.03 for Q1 2024 [35]. - The company reported a loss from continuing operations before income taxes of $5,501 for the three months ended March 31, 2025 [84]. Assets and Liabilities - Total current assets increased to $767,388 thousand as of March 31, 2025, from $436,893 thousand at the end of 2024, primarily due to an increase in current assets of discontinued operations [20]. - Total assets decreased to $3,351,353 thousand as of March 31, 2025, down from $3,474,419 thousand at December 31, 2024 [20]. - The company’s retained earnings decreased to $204,180 thousand as of March 31, 2025, from $257,254 thousand at the end of 2024 [20]. - The balance of cash and cash equivalents decreased to $216,242 thousand as of March 31, 2025, from $303,065 thousand as of December 31, 2024, a decline of 28.7% [37]. - Total liabilities of the New Zealand operations increased to $227,991 thousand as of March 31, 2025, from $218,176 thousand as of December 31, 2024, a rise of 4.0% [66]. - Current liabilities rose to $49.33 million in Q1 2025, compared to $47.34 million in Q4 2024, reflecting a 4.2% increase [66]. Capital Expenditures and Investments - Rayonier's capital expenditures from continuing operations were $12,023,000 in Q1 2025, down from $15,260,000 in Q1 2024, indicating a reduction of approximately 21% [29]. - Capital expenditures for the three months ended March 31, 2025, were $12,023, down from $15,260 in the same period of 2024, representing a decline of approximately 21.5% [78]. - Capital expenditures for New Zealand operations decreased to $2.65 million in Q1 2025, down 26.4% from $3.61 million in Q1 2024 [66]. Dividends and Shareholder Returns - Rayonier Inc. issued a special dividend of $1.80 per common share, resulting in the issuance of 7,560,983 common shares [22][23]. - Dividends paid on common shares increased to $110,442,000 in Q1 2025 from $72,258,000 in Q1 2024, marking an increase of approximately 53% [29]. - Distributions on units for the three months ended March 31, 2025, totaled $111,905 thousand, compared to $73,343 thousand in 2024, an increase of 52.6% [43]. Foreign Operations - Rayonier's New Zealand operations generated sales of $56,760 thousand in Q1 2025, up from $54,392 thousand in Q1 2024, representing a 4.5% increase [63]. - Operating income from discontinued operations in New Zealand was $4,549 thousand in Q1 2025, down from $7,578 thousand in Q1 2024, a decline of 40.4% [63]. - The company reported net income from discontinued operations attributable to Rayonier Inc. of $2,094 thousand in Q1 2025, compared to $5,792 thousand in Q1 2024, a decrease of 63.8% [63]. - Rayonier entered into a purchase and sale agreement to sell its 77% interest in New Zealand operations for $710 million, expected to close in 2025 [61]. Debt and Financing - The company’s long-term debt remained stable at $1,044,635 thousand as of March 31, 2025, compared to $1,044,410 thousand at the end of 2024 [20]. - Total principal debt as of March 31, 2025, was $1,050,000,000, with total long-term debt amounting to $1,044,635,000 after accounting for unamortized discounts and deferred financing costs [105]. - Rayonier Inc. had available borrowings of $293.0 million under its Revolving Credit Facility as of March 31, 2025 [108]. - The company maintained a covenant EBITDA to consolidated interest expense ratio of 7.2 to 1, significantly exceeding the requirement of 2.5 to 1 [111]. - The debt to covenant net worth plus covenant debt ratio was 36%, well below the maximum requirement of 65% [111]. Other Financial Metrics - Adjusted EBITDA for the total company was $27,061 thousand for Q1 2025, reflecting the performance across all segments [74]. - Adjusted EBITDA for the three months ended March 31, 2025, was $44,648, compared to $44,801 in the same period of 2024, indicating a slight decrease of 0.3% [84]. - The net income for the three months ended March 31, 2025, was $2,306, compared to a loss of $4,510 in the same period of 2024 [84]. - The company reported a foreign currency translation adjustment of $3,633 thousand for the three months ended March 31, 2025 [39]. - The company’s effective tax rate for the three months ended March 31, 2025, was -5.5%, significantly lower than the 18.0% rate for the same period in 2024 [151].

Core Viewpoint - Rayonier, Inc. reported a pro-forma net loss of 2 cents per share for Q1 2025, missing the Zacks Consensus Estimate of 8 cents and down from a net income of 1 cent per share in the prior year [1] Financial Performance - Total revenues for Q1 2025 were $82.9 million, falling short of the Zacks Consensus Estimate of $157 million and representing a 27.1% decrease year-over-year [2] - Adjusted EBITDA for the quarter was $27.1 million, down from $44.6 million in the prior-year period [2] Segment Performance - Southern Timber segment reported pro-forma operating income of $10.1 million, a decline of 56.1% from the prior-year quarter due to lower net stumpage realizations and higher costs [4] - Pacific Northwest Timber segment showed pro-forma operating income of $0.7 million, recovering from a loss of $4.4 million a year ago, attributed to lower costs and higher net stumpage realizations [5] - Real Estate segment incurred a pro-forma operating loss of $1 million compared to a $0.1 million loss in the previous year, driven by fewer acres sold [6] Balance Sheet - Rayonier ended Q1 2025 with $216.2 million in cash and cash equivalents, down from $303.1 million as of December 31, 2024 [7] Future Outlook - For Q2 2025, management anticipates net income attributable to Rayonier to be between $3 million and $8 million, with pro forma EPS expected to range from 1 cent to 4 cents [8] - Full-year net income guidance has been revised to $424 million to $458 million, significantly up from the previous guidance of $79 million to $100 million, reflecting anticipated gains from the sale of the New Zealand joint venture [9] - Adjusted EBITDA for the full year is projected to be between $215 million and $235 million, down from prior guidance of $270 million to $300 million [10]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $27 million for the first quarter, a 39% decline compared to the prior year quarter, primarily due to lower results in the Southern Timber and Real Estate segments [9][10] - The net loss attributable to the company was $3 million, or $0.02 per share, reflecting a challenging start to the year [15][16] - Cash available for distribution (CAD) decreased to $20 million from $31 million in the prior year period, driven by lower adjusted EBITDA [16] Business Line Data and Key Metrics Changes - In the Southern Timber segment, adjusted EBITDA was $27 million, down from the prior year, with harvest volumes declining by 21% and weighted average net stumpage realizations down 19% [10][19] - The Pacific Northwest Timber segment saw adjusted EBITDA increase to $6 million, despite an 18% decrease in harvest volumes, due to lower costs and higher net stumpage realizations [11][24] - The Real Estate segment generated adjusted EBITDA of $2 million, down from $5 million in the prior year, driven by fewer acres sold [12][26] Market Data and Key Metrics Changes - The Southern Timber segment faced challenging market conditions, with lower demand from mills and a shift in geographic mix to lower-priced regions [10][20] - In the Pacific Northwest, average delivered domestic sawlog pricing increased by 7% to $91 per ton, reflecting stronger demand from sawmills [24] - The company anticipates improved pricing in the second half of the year as salvage efforts moderate and operating conditions normalize [11][35] Company Strategy and Development Direction - The company is focused on enhancing shareholder value through the sale of its New Zealand business for $710 million, which will allow for capital concentration in core markets with favorable long-term growth prospects [5][8] - The proceeds from the New Zealand sale are expected to be used for debt reduction and shareholder returns through share repurchases and a special dividend [8][9] - The company aims to streamline its portfolio and improve financial reporting, positioning itself for future growth opportunities in the U.S. [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of the year, expecting improvements in timber pricing and demand as the impact of salvage volume subsides [35][36] - The company remains focused on long-term value creation despite current economic uncertainties, with a positive outlook for housing demand and timber pricing driven by an underbuilt housing market [70][71] - Management highlighted the importance of navigating market headwinds while advancing strategic initiatives to build long-term shareholder value [34][37] Other Important Information - The company has completed or announced pending dispositions totaling $1.45 billion, significantly exceeding its original target of $1 billion [9] - The company plans to provide high-level quarterly guidance for adjusted EBITDA and EPS moving forward to manage expectations around variability in real estate segment results [33] Q&A Session Summary Question: How significant are labor constraints in logging and hauling today? - Management acknowledged that labor is a constant concern but noted improvements in productivity and long-term relationships with loggers could provide a competitive advantage if demand increases [40][42] Question: Can you provide more color around the attractiveness of options for the New Zealand proceeds? - Management indicated that share repurchases are viewed as a compelling use of capital, with significant remaining authorization for buybacks post-New Zealand transaction [43][44] Question: What is the outlook for lumber prices in response to higher Canadian import duties? - Management noted positive sentiment among sawmill customers, with some taking steps to secure more volume, but emphasized that current market uncertainty tempers immediate actions [50][52] Question: Can you elaborate on the negative mix shift within Southern Timber? - Management explained that the negative mix shift was due to a higher percentage of lower-priced Gulf Region timber and a shift towards pulpwood, impacting overall pricing [56][59] Question: Any updates on natural climate solutions like solar or carbon capture? - Management reported ongoing optimism regarding carbon capture storage opportunities and continued interest in solar leasing, with significant potential for future revenue streams [75][78]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $27 million for the first quarter, a 39% decline compared to the prior year quarter, primarily due to lower results in the Southern Timber and Real Estate segments [8][9][14] - The net loss attributable to Rayonier was $3 million, or $0.02 per share, reflecting a challenging start to the year [13][14] - Cash available for distribution (CAD) decreased to $20 million from $31 million in the prior year period, driven by lower adjusted EBITDA [14][17] Business Line Data and Key Metrics Changes - In the Southern Timber segment, adjusted EBITDA was $27 million, down 21% in harvest volumes and 19% in weighted average net stumpage realizations [9][18] - The Pacific Northwest Timber segment saw adjusted EBITDA increase to $6 million, despite an 18% decrease in harvest volumes, due to lower costs and higher net stumpage realizations [10][22] - The Real Estate segment generated adjusted EBITDA of $2 million, down from $5 million in the prior year, attributed to fewer acres sold [11][26] Market Data and Key Metrics Changes - The Southern Timber segment faced challenging market conditions, with a 21% decline in harvest volumes and a 19% decrease in weighted average stumpage prices due to softer demand and increased salvage volume [9][19] - In the Pacific Northwest, average delivered domestic sawlog pricing increased by 7% to $91 per ton, driven by stronger demand from sawmills [22] - The overall market for timber remains impacted by economic uncertainty, with expectations for improved pricing in the second half of the year as salvage volume declines [20][34] Company Strategy and Development Direction - The company is focused on enhancing shareholder value through the sale of its New Zealand business for $710 million, which will allow for capital concentration in core U.S. markets [4][5] - Rayonier plans to use at least 50% of the sale proceeds to reduce leverage and return capital to shareholders through share repurchases and a special dividend [6][7] - The company aims to streamline its portfolio and capitalize on growth opportunities in the U.S. timber market while reducing exposure to log export markets [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for improved market conditions in the second half of the year as salvage efforts moderate and operating conditions normalize [10][34] - The company anticipates full-year adjusted EBITDA guidance of $215 million to $235 million, excluding New Zealand operations, reflecting a generally stable outlook despite a slow start [12][29] - Management highlighted the long-term potential for growth in housing starts and lumber demand, despite current economic uncertainties [70][71] Other Important Information - The company has completed or announced asset dispositions totaling $1.45 billion, exceeding its original target of $1 billion [8] - The weighted average cost of debt was approximately 2.4%, with no debt maturities until 2026, positioning the company well for future capital allocation [17] Q&A Session Summary Question: How significant are labor constraints in logging and hauling today? - Management acknowledged that labor is a constant concern but noted improvements in productivity and sufficient labor availability to meet current demand [40][42] Question: Can you provide more color around the attractiveness of options for the New Zealand proceeds? - Management indicated that share repurchases remain a compelling use of capital, with $280 million remaining on the current repurchase authorization [43][44] Question: What is the outlook for lumber prices in response to higher Canadian import duties? - Management reported positive sentiment among sawmill customers, with some mills looking to secure more volume and potential price increases observed in recent negotiations [50][54] Question: Can you provide an update on natural climate solutions? - Management confirmed ongoing efforts in carbon capture and solar initiatives, with optimism about future developments in these areas [76][80]

Q1 2025 Financial Supplement April 2025 Safe Harbor Statement Forward-Looking Statements - Certain statements in this presentation regarding anticipated financial outcomes including Rayonier's earnings guidance, if any, business and market conditions, outlook, expected dividend rate, Rayonier's business strategies, expected harvest schedules, timberland acquisitions and dispositions, the anticipated benefits of Rayonier's business strategies, including the proposed sale of the entities holding Rayonier's in ...

Group 1: Earnings Performance - Rayonier reported a quarterly loss of $0.02 per share, missing the Zacks Consensus Estimate of $0.08, compared to earnings of $0.05 per share a year ago, representing an earnings surprise of -125% [1] - The company posted revenues of $82.9 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 47.20%, and down from year-ago revenues of $168.1 million [2] - Over the last four quarters, Rayonier has surpassed consensus EPS estimates just once and topped consensus revenue estimates only once [2] Group 2: Stock Performance and Outlook - Rayonier shares have lost about 6.1% since the beginning of the year, while the S&P 500 has declined by -5.5% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.13 on $165 million in revenues, and $0.55 on $677.23 million in revenues for the current fiscal year [7] Group 3: Industry Context - The Building Products - Wood industry, to which Rayonier belongs, is currently in the bottom 32% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that tracking these revisions can be beneficial for investors [5] - The estimate revisions trend for Rayonier is currently favorable, resulting in a Zacks Rank 1 (Strong Buy) for the stock, indicating expectations of outperforming the market in the near future [6]

Financial Performance - Rayonier reported a first quarter net loss of $3.4 million, or $0.02 per share, on revenues of $82.9 million, compared to a net income of $1.4 million, or $0.01 per share, on revenues of $113.7 million in the prior year quarter [3][5]. - Adjusted EBITDA for the first quarter was $27.1 million, representing a 39% decline compared to $44.6 million in the prior year period [5][7]. - The company expects second quarter net income attributable to Rayonier of $3 to $8 million, with Adjusted EBITDA of $30 to $40 million [5]. - First quarter cash available for distribution (CAD) was $20.3 million, a decrease of $10.8 million compared to the prior year period [6]. - The company reported a net loss of $3.1 million for the three months ended March 31, 2025, compared to a net income of $2.3 million for the same period in 2024 [46]. - Total sales for the three months ended March 31, 2025, were $82.9 million, down 27.2% from $113.7 million in the same period of 2024 [49]. - Operating income for the three months ended March 31, 2025, was $0.1 million, a significant decrease from $8.6 million in the same period of 2024 [49]. - Dividends paid increased to $110.4 million for the three months ended March 31, 2025, compared to $72.3 million for the same period in 2024 [46]. - Pro forma net loss income attributable to Rayonier Inc. was $2.7 million in Q1 2025, compared to a profit of $1.2 million in Q1 2024 [54]. - Pro forma sales for Q1 2025 totaled $82.9 million, a decrease from $113.7 million in Q1 2024, reflecting a decline of 27.1% [53]. Segment Performance - Southern Timber segment sales decreased by 27% to $50.9 million, with harvest volumes down 21% to 1.58 million tons [8]. - Pacific Northwest Timber segment sales decreased by 15% to $21.4 million, with harvest volumes down 18% to 261,000 tons, but average delivered prices for domestic sawtimber increased by 7% [9][10]. - Real Estate segment sales decreased by $5.4 million to $10.2 million, with an operating loss of $1.0 million due to fewer acres sold [11][12]. - Southern Timber segment expects full-year harvest volumes of 6.9 to 7.0 million tons, with Adjusted EBITDA projected at $135 to $140 million, down from prior guidance [19]. - Pacific Northwest Timber segment anticipates full-year harvest volumes of approximately 0.9 million tons, with Adjusted EBITDA expected to be between $22 to $26 million, slightly up from previous guidance [20]. - Real Estate segment forecasts Adjusted EBITDA contribution of $90 to $100 million for the full year, reflecting a modest increase from prior guidance [21]. Guidance and Projections - The company revised its full-year 2025 guidance, expecting net income attributable to Rayonier of $424 to $458 million, or $2.71 to $2.93 per share, and Adjusted EBITDA of $215 to $235 million [5][18]. - Revised total Adjusted EBITDA guidance for 2025 is now $215 to $235 million, a decrease of $55 to $65 million from previous estimates [22]. - The company expects adjusted EBITDA guidance for 2025 to be between $215.0 million and $235.0 million, compared to prior guidance of $270.0 million to $300.0 million [58]. Cash Flow and Capital Management - Cash provided by operating activities decreased to $27.7 million in Q1 2025 from $52.3 million in Q1 2024, a decline of 47.1% [52]. - Cash available for distribution after real estate development investments was $16.2 million in Q1 2025, down 36.8% from $25.6 million in Q1 2024 [52]. - The company completed or announced pending dispositions totaling $1.45 billion, allowing for reduced leverage and capital return to shareholders [7]. - Rayonier repurchased 95,000 shares at an average price of $27.61 per share during the first quarter, totaling $2.6 million [16]. Asset and Equity Changes - Total assets decreased from $3,474.4 million as of December 31, 2024, to $3,351.4 million as of March 31, 2025, representing a decline of approximately 3.5% [40]. - Cash and cash equivalents decreased significantly from $303.1 million to $216.2 million, a reduction of about 28.7% [40]. - The company’s total shareholders' equity increased from $1,780.5 million as of December 31, 2024, to $1,925.3 million as of March 31, 2025, an increase of approximately 8.1% [40]. - Capital expenditures from continuing operations were $12.0 million for the three months ended March 31, 2025, compared to $15.3 million for the same period in 2024 [46]. - Capital expenditures for Q1 2025 were $12.0 million, a decrease from $15.3 million in Q1 2024, reflecting a reduction of 21.5% [52]. Discontinued Operations and Legal Matters - Income from discontinued operations, net of tax, includes income from the New Zealand joint venture, which is now classified as discontinued operations [28]. - Gain on sale of discontinued operations reflects the estimated gain from the sale of the New Zealand joint venture interest [59]. - Net cost on legal settlements indicates a net loss from litigation related to insurance claims [59]. - Restructuring charges include severance costs associated with workforce optimization initiatives [59]. - The company incurred restructuring charges of $1.1 million in Q1 2025, indicating ongoing efforts to optimize workforce [55]. Other Considerations - The company owns or leases approximately 2.5 million acres of timberlands across the U.S. South, U.S. Pacific Northwest, and New Zealand [29]. - The anticipated impact of increased duties on Canadian lumber is expected to positively influence log pricing in the Pacific Northwest segment [20]. - The company is experiencing lower non-timber income for full-year 2025 compared to the prior year [19]. - The company plans to provide quarterly guidance to better manage expectations around the variability of Real Estate segment results [25]. - Adjusted EBITDA is a non-GAAP measure used by management for strategic decisions and operational performance evaluation [59]. - Pro forma net income (loss) adjustments account for noncontrolling interests' share of specific pro forma items [59]. - Pro forma net income (loss) is adjusted for various non-operational items to provide a clearer view of core business operations [59].

Core Viewpoint - Rayonier, Inc. (RYN) has experienced a stock price increase of 9.6% over the past month, contrasting with a 2.5% decline in the industry, driven by the company's focus on unlocking long-term value through higher-and-better-use (HBU) development and advancements in biogenetics and cloning [1][8]. Group 1: Company Overview - Rayonier possesses a robust timberland portfolio across productive regions in the U.S. South, Pacific Northwest, and New Zealand, with a total of 1.75 million acres in the U.S. South, 308,000 acres in the U.S. Pacific Northwest, and 412,000 gross acres in New Zealand as of December 31, 2024 [3]. - The company is recognized as a leading "Pure Play" timber REIT, benefiting from significant growth in lumber production and capacity in the U.S. South, where approximately 71% of its timberlands are located in top quartile markets [3]. Group 2: Recent Developments - Rayonier has announced the sale of its 77% interest in a New Zealand joint venture for $710 million, allowing the company to concentrate on its core U.S. markets, with the transaction expected to close in 2025 [4]. - The company is actively exploring alternative uses for its timberlands, particularly in the Florida and Georgia coastal corridors, and is optimistic about the demand and value realizations for HBU properties [5]. Group 3: Financial Position - Rayonier's balance sheet is strong, with cash and cash equivalents reported at $323.2 million in Q4 2024, and a weighted average maturity of its debt portfolio of approximately four years, with no significant debt maturities until 2026 [7]. - The company’s well-staggered debt maturity profile provides financial flexibility to navigate external challenges and pursue growth opportunities [7]. Group 4: Market Outlook - The combination of Rayonier's strategic initiatives and favorable market conditions suggests that the upward trend in its stock price is likely to continue in the near term [8].