“We are pleased with our overall financial performance for the full-year 2022,” said David Nunes, CEO.
“The total Adjusted EBITDA generated by our three Timber segments of $275.4 million represented the highest-ever result for the company—roughly 8% above the previous record achieved in 2021. Notwithstanding deteriorating market conditions toward the end of 2022 in response to growing macroeconomic uncertainty and a slowing housing market, we still achieved record full-year Adjusted EBITDA results in both our Southern Timber and Pacific Northwest Timber segments, underscoring the relative strength of our timber markets and the ability of our team to navigate an ever-evolving operating environment. The strong results in our U.S. timber operations were partially offset by lower Adjusted EBITDA versus the prior year in our New Zealand Timber segment, which throughout 2022 contended with slower economic activity in China, as well as higher costs. Finally, in our Real Estate segment, we achieved solid results generally in line with our expectations entering the year, reflecting our continued focus on optimizing the value of our portfolio through the sale of rural and recreational properties, land entitled for development, and non-strategic holdings. Entering 2023, we believe the operational flexibility afforded by our pure-play timber REIT model, the ongoing improvements to our portfolio, and the resiliency of our team will enable us to stay focused on long-term value creation amid more challenging economic conditions.”
“During the fourth quarter, we achieved total Adjusted EBITDA of $68.4 million. In our Southern Timber segment, Adjusted EBITDA declined 1% versus the prior year quarter, as an 11% decrease in harvest volumes was largely offset by a 7% increase in weighted-average log prices. In our Pacific Northwest Timber segment, Adjusted EBITDA improved 18% versus the prior year quarter, driven by a 17% increase in weighted-average log prices and a 3% increase in harvest volumes.”
“In New Zealand, while the operating environment remained very challenging throughout the fourth quarter, Adjusted EBITDA improved $3.9 million versus the prior year quarter due to increased carbon credit sales and harvest volumes, which more than offset lower log pricing.”
“Real Estate segment Adjusted EBITDA was $11.5 million above the prior year quarter, as the current year period benefited from increased sales in the Wildlight development project north of Jacksonville, Florida as well as increased acres sold and average per-acre prices in the Rural category as compared to the prior year period. Large Dispositions consisted of a 10,977-acre timberland sale in western Washington to a conservation-oriented buyer.”
“As previously disclosed, during the fourth quarter we completed our acquisition of 137,800 acres of high-quality commercial timberlands located in Texas, Georgia, Alabama, and Louisiana from Manulife Investment Management for approximately $454 million. Rayonier financed the acquisition with cash on hand and proceeds from a new five-year, $250 million term loan through the Farm Credit System. The company also entered into an interest rate swap agreement during the quarter to fix $100 million of the new term loan at an all-in effective cost of approximately 4.6%, net of estimated patronage refunds.”
- Fourth quarter net income attributable to Rayonier of $33.1 million ($0.22 per share) on revenues of $245.4 million
- Fourth quarter pro forma net income of $16.5 million ($0.11 per share) on pro forma revenues of $214.9 million
- Fourth quarter operating income of $44.1 million, pro forma operating income of $27.2 million, and Adjusted EBITDA of $68.4 million
- Full-year net income attributable to Rayonier of $107.1 million ($0.73 per share) on revenues of $909.1 million
- Full-year pro forma net income of $91.5 million ($0.62 per share) on pro forma revenues of $878.6 million
- Full-year operating income of $165.8 million, pro forma operating income of $138.5 million and Adjusted EBITDA of $314.2 million
- Full-year cash provided by operations of $269.2 million and cash available for distribution (CAD) of $188.5 million
WILDLIGHT, Fla.-- Rayonier Inc. (NYSE:RYN) today reported fourth quarter net income attributable to Rayonier of $33.1 million, or $0.22 per share, on revenues of $245.4 million. This compares to net income attributable to Rayonier of $8.7 million, or $0.06 per share, on revenues of $262.0 million in the prior year quarter.
The fourth quarter results included $16.6 million of income from Large Dispositions1 and a $0.4 million favorable adjustment to a timber write-off taken in the third quarter.2 Prior year fourth quarter results included a $3.8 million gain on investment in Timber Funds3 and a $3.1 million gain on Fund II Timberland Dispositions attributable to Rayonier.4 Excluding these items and adjusting for pro forma net income adjustments attributable to noncontrolling interests in the operating partnership,5 fourth quarter pro forma net income6 was $16.5 million, or $0.11 per share, on pro forma revenues6 of $214.9 million versus pro forma net income6 of $2.0 million, or $0.01 per share, on pro forma revenues6 of $191.0 million in the prior year period.
Source: Rayonier
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