Rayonier Inc. Reit · NYSE:RYN
Rayonier Inc. Reit — Rayonier — Investor Presentation (November 2014)
30 slides from Rayonier Inc. Reit's investor presentation, Nov 20, 2014
Slide 1: Investor Presentation, November 2014
Exhibit 99.1 Investor Presentation November 2014
Slide 2: Safe Harbor Statement
Safe Certain realigned Securities “will,” forward-looking. not The competitive conditions initiatives; acquisitions; cost and of in Specifically been lengthy, our developers the delineation materials; Additional 1statements tax our demographics be control; availability following of Harbor made laws
Slide 3: Rayonier: Leading Pure-Play Timberland REIT
Rayonier: Leading Third-largest Advantageous Geographic ~$790 Base Timberland Growing Attractive coastal Over Stable Strong Conservative 2Flexibility 39,000 base million Real Capital corridor Pure-Play Best-in-Class, Real toof diversity Estate acres pursue timber leverage annual invested REIT Struct
Slide 4: Highly Productive, Geographically Diversified Timberlands
Highly Total 311 372 92 159 Coastal Florida/Georgia 387 Washington ~ 311,000 3(1) 800,000 1.1 318 Acres 19 128 Rayonier million 705 Productive, Corridor acres, owned acres, –acres, 372,000 manage = sawlog or 2,583,000 Geographically managed sawlog acres, and andand own acres(1) pulpwood as access pu
Slide 5: Realignment: Rayonier's Strategic Priorities
Realignment Manage Design Achieve Acquire Selectively minimize Optimize Opportunistically Improve Focus De-emphasize Emphasize Enhance Establish Provide Act 4Rayonier’s as on responsible harvest investors High-Quality for optimal average Disclosure Quality core Rayonier Portfolio speculation goal ru
Slide 6: U.S. Housing Recovery Should Drive Sawtimber Prices Higher
2,500 2,000 1,500 $500 01 20 U.S. Housing (starts 1,600 1,800 1,400 -21,200 200 400 600 800 1,000 Raymond Source: and 5A014 $515 40 30 25 20 housing 02 20 0National $Census 2015 $in35 10 2003 20 1,400 1,200 1,005 45 Timber Raymond Starts 000s 000s) 20 James recovery 2016 04 20 1,430 1,200 1,000 Bure
Slide 7: U.S. Pine Timber Pricing Has Significant Recovery Potential
Return U.S. ($ $40 $50 $60 $$70 $30 $10 $20 80 $0 19 Pine Trendline Implied Current 5(9/30/2014) Sawtimber Chip-n-saw Pulpwood Source: 6Note: Year 26 per 81 19$Pulpwood South Prices 41 10 82 19 ton) 10 toTimber Pricing Annual 83 19 Trendline Year (Pine $10.10 $25.11 Stumpage $16.85 Pricing 84 19 are
Slide 8: Favorable Local Log Supply and Demand Dynamics
Favorable Local Logs Supply Significant Source: 7Note: typically Most market /USDA demand Supply sawlog current supply travel FIA; conditions / price FIA Demand Rayonier /less demand cycle increases than vary Dynamics data 100 research. dynamics widely anticipated by miles state inacross determine R
Slide 9: Advanced Silviculture and Genetics Increase Yields
Advanced Site Pulpwood Grade* Stand Pine Southern Competition *Fertilization Industry Genetics Future plantings Percentage from 2008-2009 0% 10% 20% 30% 40% 50% 60% 70% 8Through Sawlogs Management Index Loblolly Controlled establishment Southeast =leader advanced 58% Silviculture = 68 and 2010-2011
Slide 10: Active Portfolio Management
Rayonier 2014 Total (acres)($ 46,700 $1,996 $1,401 32,700 % (%)(tons 72% Acquisitions 2.3 29 60% 9(1)Pine 10-year 45 Acquisitions Acres 74 68 Plantation 5.3 per Continues estimate. $acre)(tons Dispositions acre)(feet) per Acre Merch. vs.toDispositions Site Upgrade perAcquisitions Stocking Index acre
Slide 11: Real Estate Strategy Overview
Overview Real Optimize Development Steady Rural Lead Collaborate Conservation Monetize Non-Strategic 10 Estate initiatives proactive andour non-strategic ofdurable Strategy with Real portfolio land toconservation Estate bring rural enhancement with timberlands to residential Strategy market a discip
Slide 12: Significant Timberland Holdings on Coastal Corridor
Significant Timberland Approximately Land Residential, Proximity Value = 11Rayonier holdings creation and HBU landholdings ownership commercial, connection efforts at250 40five Potential miles miles interchanges focused base of and of to in water of road international FL industrial on ~200,000 and h
Slide 13: Disciplined Project Approach and Locations
Disciplined Project Location Strong Characteristics Market Horizontal Segment Approach Infrastructure entitled Status 45 12 acres and market Belfast Port Industrial sold Bryan Undeveloped marketing development Approach ofdevelopment driving Savannah’s Commerce driving Co, Residential GA underway, wi
Slide 14: Historical Real Estate Sales Summary
Historical Real Strategic Non- 33% 79,537 (acres) Note: 1% 2,454 Development 66% 156,512 Average ($ Non-Strategic $1,482 $2,125 $6,520 Rural Conservation 13 perEstate Excludes land acre) Price / Real sales Sales /per Estate Rural 2013 isBreakdown Acre(2009-2013) thesale Development Sales keyof drive
Slide 15: Real Estate Average Rural Sale Price Premium
Real 2.2% 30,026 35,906 1.8% 1.6% 1.0% 1.2% Average Rural $3,242 $3,683 $4,267 $6,755 $2,675 2004 % 139% Note: (1) Excluding 14 Premium 2007 Estate 2005 26,251 20,769 17,173 0.9% /Percent Premium 144% Development $3,120 $2,858 Average reflects non-strategic 2006 0.9% Sales to 239% 25,140 16,346 of $
Slide 16: Financial Highlights and Capitalization
Financial ($ Profitability Sales Operating Diluted Income Average Nine Capital EBITDA Adjusted Pro 9/30/2014 Debt Cash Net (1) (2) 15 inNet Non-GAAP forma Forma income Debt millions, months 736 Available provided used 183 $150 capitalization Resources from Earnings diluted (1) EBITDA /553 1,574 High
Slide 17: 2015 Guidance by Segment
2014 ($ 2013 Operations Sales Segment Forest Real Corporate Total CapEx DD&A Non-cash (1) (2) corporate (3) 16 inNon-GAAP Includes Excludes Estate millions) and Continuing $94 $219 $660 Resources 63 115 Adjusted Operating 2015 expenses $107—110 cost 65—67 (2)(43) (2)(44) $238—242 (1) 2014 56 83 122—
Slide 18: Appendix
Appendix —_ Rayonier
Slide 19: U.S. Pacific Northwest Harvest and Inventory
U.S.U.S. 252 (MMBF) 251 225 166 Total 1,968 (MBF) 1,285 2001 921 Acres Note: (1) (2) inventory (3) (4) 18 Rayonier 285 263 232 164 Pacific 2002 Harvest Inventory Assumes 1,799 1,189 (000s) Pacific 274 254 224 189 (~0.9 2003 1,732 1,289 Northwest Average 230 excluded decreased acquired 378 Volume con
Slide 20: U.S. Pacific Northwest Harvest and Inventory per Acre
U.S.U.S. Harvest (BF 772 663 604 400 474 Inventory (MBF 5.2 3.5 2001 2.5 Note: (1) (2) (3) (4) inventory (5) (6) 19 Represents Rayonier 4.8 3.2 712 669 593 397 per Pacific 2002 Assumes per 4.7 3.5 acre) Volume Pacific 740 686 577 (~0.9 per acre) 3.2 2003 Northwest Average 607 excluded decreased acqu
Slide 21: U.S. Pacific Northwest Age Class Profile
U.S. 17,599 23,592 27,004 30,937 42,105 43,633 49,217 (Acres) 2,560 3,236 5,792 0-4 % Avg. Note: harvested 20 of5-9 Pacific Acres Total MBF Does 1,898 18,033 10-14 within 16.4% 3.3% //not Acre Northwest Year 15-19 reflect 3.7% those NA 8,727 18.5% 20-24 NA 2.0% approximately areas –9,843 10.2% Age N
Slide 22: U.S. South Harvest and Inventory
U.S.Rayonier 6,619 6,074 5,395 Total (000s 56,428 42,964 2001 Acres Note: other (1) 21 South 2002 Harvest Inventory harvest Average 2006-07 of 6,258 4,881 (000s) 54,361 41,931 short 2003 2003(1) –4,524 decreased Historical 1,682 volumes Volume green 54,526 46,527 = acreage 2004 5,223 4,291 1,657 200
Slide 23: U.S. South Harvest and Inventory per Acre
U.S.Rayonier Harvest 3.9 3.5 3.2 Inventory (tons 30.1 25.5 2001 Note: other (1) (2) (3) 22 Represents 3.8 3.1 2.9 31.9 25.3 South per 2002 harvest 2006-07 Average 2.8 Volume acre) 30.3 28.7 per 2.6 2003 – decreased Historical volumes Acre 3.0 30.9 28.0 annual year-end acreage =per 2004 (3) 3.1 2.8 (
Slide 24: U.S. South Age Class Profile
U.S. 243,608 (Acres) 267,174 0-4 94,235 131,624 221,538 Avg. % Note: 23 of5-9 South Acres Total Totals 10-14 246,179 18.4% 3.7% –/ in Year Age 15-19 chart 4.0% Class 44,308 20.2% 20-24 represent 4.4% Profile 22.2% 48,722 25+ 4.1% net 20.4% 53,435 2.2% plantation 10.9% NM 49,236 acres; 7.8% 26,325 ex
Slide 25: Definitions of Non-GAAP Measures
Definitions EBITDA shareholders Adjusted Operating to Company Cash by available period Pro 24 the discontinued Forma Available Performance error for is EBITDA is Decision Adjusted Net Operating of defined in performing dividend toNon-GAAP depletion Income for measure operations, Distribution is Fibe
Slide 26: Reconciliation: Three Months Ended September 30
($ inIncludes Forest Three June Costs September Operating Depreciation, EBITDA Non-cash Adjusted Discontinued Pro (1) 25 Forma 30, millions) related Months Real 2014 $EBITDA cost Income EBITDA 30, 49 44 51 Other income, to Operations depletion $20 $34 $10 Ended basis 2014 2013 spin-off Corporate $–$
Slide 27: Reconciliation: Nine Months Ended September 30
($ inIncludes Forest Nine Costs September Operating Depreciation, EBITDA Non-cash Adjusted Gain Discontinued Pro (1) Forma millions) Months related related Real $145 $129 EBITDA cost Income EBITDA 30, Other income, toto Ended Operations depletion basis 2014 2013 $consolidation the 56 39 Corporate $6
Slide 28: Reconciliation: Pro Forma Net Income and EPS
Reconciliation ($ Three September Nine Operating Net Cumulative Gain Costs Discontinued Pro 27 inForma Income millions, Month related related Months Income Operating Net 30, adjustment attributable Ended toto Operations, Ended except 2014 of consolidation Income spin-off Reported $$32 $84 June Septe
Slide 29: Reconciliation: 2015 Guidance and Full Year 2013
Reconciliation Forest Twelve December Operating Gain Discontinued Pro (1) 2015 ($ Full Net Interest, Income Depreciation, EBITDA Non-cash Adjusted 28 inIncludes Forma forma Income Year millions) related Guidance—Adjusted Real Months tax net $180 ~ EBITDA 2015 cost Adjusted Income 31, Adjusted $190—2
Slide 30: Cash Available for Distribution Reconciliation
($ inCapital Nine 2014 Capital Change Excess Other Discontinued Cash (1) 29 millions, Months Available 2013 provided 4tax expenditures 1in committed benefit expenditures Ended operations(64)(127) except by foroperating on Distribution September (1)(106)(122) per stock-based cash exclude share 5activ