21 slides from Rayonier Inc. Reit's earnings presentation, Oct 29, 2024
Slide 1: Q3 2024 Earnings
Q3 2024 EARNINGS October 29, 2024
Slide 2: Forward-Looking Statements & Non-GAAP Measures
FORWARD-LOOKING STATEMENTS & NON-GAAP MEASURES FORWARD-LOOKING STATEMENTS This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as amended, including without limitation, our expectations regarding the company’s revenu
Slide 3: Key Highlights Q3 2024
KEY HIGHLIGHTS Q3 2024 STRATEGY PERFORMANCE CAPITAL ALLOCATION Timberlands provide stability Total Adjusted EBITDDA 1 Return of cash • >80% of gross asset value • $45.9 MM • $142MM annual dividend run rate • Sustainable management benefits society • 18.0% margin • Dividend yield of 4.0% 3 • Supports
Slide 4: Consolidated Adjusted EBITDDA Q2 to Q3 2024 Variance
Q3 2024 Total Adjusted EBITDDA of $45.9 million declined from Q2 2024, C O N S O L I D AT E D which included a $57 million land sale. Q3 2024 benefited from increased R E S U LT S harvest volumes and strong residential real estate lot sales. Total Adjusted EBITDDA – Q2 2024 to Q3 2024 Variance $103.
Slide 5: Timberlands Adjusted EBITDDA Variance
Q3 2024 Timberlands Adjusted EBITDDA of $35.8 million primarily T I M B E R L A N D S R E S U LT S reflects seasonally higher harvest volumes partially offset by lower indexed Idaho sawlog prices. Timberlands Adjusted EBITDDA – Q2 2024 to Q3 2024 Variance $3.3 $0.3 $35.8 $34.2 $(1.9) $(0.1) $ MILLIO
Slide 6: Timberlands: Northern Region
T I M B E R L A N D S R E S U LT S N O RT H E R N R E G I O N Northern Sawlog Pricing and Volume Northern Pulpwood Pricing and Volume $250 500 $60 421 $50 Volume: Tons (thousands) Volume: Tons (thousands) $200 400 $40 $39 Price: $ / Ton Price $ / Ton $150 300 6 $30 $110 $100 200 $20 $50 100 $10 $- 0
Slide 7: Timberlands: Southern Region
T I M B E R L A N D S R E S U LT S SOUTHERN REGION Southern Sawlog Pricing and Volume Southern Pulpwood Pricing and Volume 800 $35 700 $50 669 592 700 $31 Volume: Tons (thousands) $47 $30 600 Volume: Tons (thousands) $40 600 $25 500 Price $ / Ton Price: $ / Ton 500 $30 $20 400 400 300 $15 300 $20 20
Slide 8: Wood Products Adjusted EBITDDA Variance
Q3 2024 Wood Products Adjusted EBITDDA decreased primarily due to lower WOOD PRODUCTS lumber prices. Construction at the Waldo sawmill for the expansion and R E S U LT S modernization project was successfully completed, impacting manufacturing costs. Wood Products Adjusted EBITDDA – Q2 2024 to Q3 20
Slide 9: Wood Products: Lumber Pricing and Shipments
WOOD PRODUCTS R E S U LT S Lumber Pricing and Shipments Wood Products Adjusted EBITDDA ($ in millions) $1,200 400 350 $180 $1,000 267 300 Shipments (MMBF) $140 Price: $/ MBF $800 250 $600 200 $100 $400 150 $402 100 $60 $200 50 $20 $(9.6) $- 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 $(20) Q1 Q2 Q3 Q4 Q1 Q2
Slide 10: Real Estate Adjusted EBITDDA Variance
Q3 2024 Real Estate Adjusted EBITDDA benefitted from increased residential R E A L E S TAT E R E S U LT S real estate lot sales in Chenal Valley compared to Q2 2024, which included a 34,000-acre land sale. Real Estate Adjusted EBITDDA – Q2 2024 to Q3 2024 Variance $ MILLIONS Q2 2024 Rural Sales Deve
Slide 11: Real Estate: Acres and Lots Sold
R E A L E S TAT E R E S U LT S Rural Acres Sold and Average Price Residential Lots Sold and Average Price $5,250 $225,000 $204,851 $200,000 $4,500 $175,000 Average Price: $ / Acre $3,727 Average Price: $ / Lot Residential Lots Sold $3,750 $150,000 53 Acres Sold $3,000 $125,000 $100,000 $2,250 $75,00
Slide 12: Favorable Capital Structure
Year-to-date, we have returned $134 million to shareholders, including $107 FAV O R A B L E C A P I TA L million of dividends and $27 million in share repurchases. Additionally, we STRUCTURE intend to refinance $176 million of debt maturing in Q4 2024. Debt Maturities $200 $190 $185 $176 $150 $139 $
Slide 13: Outlook
We estimate Q4 2024 Total Adjusted EBITDDA to be relatively comparable to Q3 2024. This forecast anticipates higher lumber prices and improved cost recovery in Wood OUTLOOK Products, balanced by a seasonal decline in harvest volume and a lower level of rural land and real estate development activity
Slide 14: Appendix
APPENDIX Q3 2024
Slide 15: Total Company Summary
TOTAL COMPANY SUMMARY in millions except per-share amounts – unaudited 2023 2024 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 TOTAL Operating income (loss): Timberlands $ 26.2 $ 13.4 $ 22.9 $ 13.9 $ 76.4 $ 17.1 $ 17.4 $ 19.0 $ 53.5 Wood Products (11.1) 1.1 4.2 (17.7) (23.5) (12.7) (18.9) (18.3) (49.9) Real Estate 8.7
Slide 16: Operating Segment Adjusted EBITDDA
OPERATING SEGMENT Non–GAAP Reconciliation ADJUSTED EBITDDA in millions – unaudited 2023 2024 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 TOTAL Timberlands Northern Timberlands operating income $ 17.2 $ 8.7 $ 15.7 $ 8.3 $ 49.9 $ 9.3 $ 11.3 $ 13.0 $ 33.6 Depreciation, depletion and amortization 2.2 1.9 1.9 1.8 7.8 1.8
Slide 17: Total Adjusted EBITDDA & CAD
TOTAL ADJUSTED Non–GAAP Reconciliation EBITDDA & CAD in millions – unaudited 2023 2024 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 TOTAL Total Adjusted EBITDDA Net income (loss) (GAAP) $ 16.3 $ 22.3 $ 23.6 $ (0.1) $ 62.1 $ (0.3) $ 13.7 $ 3.3 $ 16.7 Interest expense, net 0.2 7.6 8.0 8.4 24.2 (0.3) 8.7 9.6 18.0 Income
Slide 18: Statistics: Timberlands
STATISTICS: TIMBERLANDS unaudited 2023 2024 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 TOTAL Timberlands Fee Volumes (tons) Northern Region Sawlog 470,790 319,173 376,607 328,574 1,495,144 327,423 359,311 420,896 1,107,630 Pulpwood 8,029 7,989 7,081 3,703 26,802 1,863 5,889 5,964 13,716 Total 478,819 327,162 383,68
Slide 19: Statistics: Wood Products and Real Estate
STATISTICS: WOOD PRODUCTS unaudited AND REAL ESTATE 2023 2024 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 TOTAL Wood Products Lumber shipments (MBF) 261,633 280,251 276,071 285,134 1,103,089 271,148 285,650 267,263 824,061 Lumber sales prices ($ per MBF) $ 435 $ 476 $ 481 $ 415 $ 452 $ 430 $ 423 $ 402 $ 419 Real Est
Slide 20: Definitions
D E F I N I TI O NS Total Adjusted EBITDDA is a non-GAAP measure and is calculated as net income (loss) adjusted for interest expense, net, income taxes, depletion, depreciation and amortization, basis of real estate sold, non-operating pension and other post-retirement benefits, pension settlement
Slide 21: Q3 2024 Earnings
Q3 2024 WAYNE WASECHEK EARNINGS Vice President and Chief Financial Officer October 29, 2024 509-835-1521 PotlatchDeltic (Nasdaq: PCH) www.PotlatchDeltic.com