Rayonier Inc. (NYSE:RYN) Q3 2024 Earnings Conference Call November 7, 2024 10:00 AM ET

Company Participants

Collin Mings – Vice President-Capital Markets and Strategic Planning
Mark McHugh – President and Chief Executive Officer
April Tice – Senior Vice President and Chief Financial Officer
Doug Long – Executive Vice President and Chief Resource Officer

Conference Call Participants

Matthew McKellar – RBC Capital Markets
Mark Weintraub – Seaport Research Partners

Operator

Welcome and thank you for joining Rayonier’s Third Quarter 2024 Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] Today’s conference is being recorded. If you have any objections, you may disconnect at this time.

Now I will turn the meeting over to Mr. Collin Mings, Vice President, Capital Markets and Strategic Planning. You may go ahead.

Collin Mings

Thank you and good morning. Welcome to Rayonier’s investor teleconference covering third quarter earnings. Our earnings statements and financial supplement were released yesterday afternoon and are available on our website at rayonier.com.

I would like to remind you that in these presentations, we include forward-looking statements made pursuant to the Safe Harbor provisions of Federal Securities Laws. Our earnings release and Forms 10-K and 10-Q filed with the SEC list some of the factors that may cause actual results to differ materially from the forward-looking statements we may make. They are also referenced on Page 2 of our financial Supplement.

Throughout these presentations, we will also discuss non-GAAP financial measures, which are defined and reconciled to the nearest GAAP measures in our earnings release and supplemental materials.

With that, let’s start our teleconference with opening comments from Mark McHugh, our President and CEO. Mark?

Mark McHugh

Thanks Collin. Good morning, everyone. Before reviewing our results for the third quarter, I’d like to first discuss the timberland dispositions we announced concurrent with our earnings release yesterday afternoon. Then I’ll make some high level comments on the quarter before turning it over to April Tice, Senior Vice President and Chief Financial Officer, to review our consolidated financial results.

We’ll then ask Doug Long, Executive Vice President and Chief Resource Officer, to comment on our U.S. and New Zealand timber results. And following the review of our timber segments, April will discuss our real estate results and our outlook for the balance of the year.

Yesterday afternoon, as part of our previously announced asset disposition and capital structure realignment plan, we announced completed and pending timberland dispositions totaling 200,000 acres for an aggregate purchase price of $495 million. The total value represents an implied EBITDA multiple of 45 times the trailing three-year average EBITDA from these properties, illustrating what we continue to believe is a significant disconnect between private market timberland values and the valuation implied by the company’s share price.