21 slides from Rayonier Inc. Reit's earnings presentation, Oct 31, 2023
Slide 1: Q3 2023 Earnings
Q3 2023 EARNINGS October 31, 2023
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 2023
KEY HIGHLIGHTS Q3 2023 STRATEGY PERFORMANCE CAPITAL ALLOCATION Leverage to lumber prices Total Adjusted EBITDDA 1 Return of cash • Mills & indexed Idaho logs • $56.3MM • $143MM annual dividend run rate • Strategy aligned with fundamentals • 21.2% margin • Dividend yield of 4.0% 3 • Provides discreti
Slide 4: Consolidated Results
Q3 Total Adjusted EBITDDA of $56.3 million reflects higher lumber and C O N S O L I D AT E D indexed sawlog prices accompanied by seasonally higher harvest volumes R E S U LT S and more rural real estate acres sold. Total Adjusted EBITDDA – Q2 2023 to Q3 2023 Variance Key Consolidated Highlights: To
Slide 5: Timberlands Results
Q3 2023 Timberlands Adjusted EBITDDA of $42.0 million reflects seasonally T I M B E R L A N D S R E S U LT S higher harvest volumes and higher indexed Idaho sawlog prices. Timberlands Adjusted EBITDDA – Q2 2023 to Q3 2023 Variance Key Timberlands Highlights: Timberlands Adjusted EBITDDA increased $1
Slide 6: 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 $300 500 $60 $50 Volume: Tons (thousands) $250 377 Volume: Tons (thousands) 400 $47 $40 Price: $ / Ton $200 Price $ / Ton 300 $150 $30 7 $129 200 $100 $20 $50 100 $10
Slide 7: 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 661 $35 559 700 700 $50 $48 $30 $31 600 600 Volume: Tons (thousands) Volume: Tons (thousands) $40 500 $25 500 Price: $ / Ton Price $ / Ton 400 $20 400 $30 300 $15 300 $20 200 $1
Slide 8: Wood Products Results
WOOD PRODUCTS Wood Products Adjusted EBITDDA in Q3 2023 increased primarily due to R E S U LT S higher lumber prices and lower log costs. Wood Products Adjusted EBITDDA – Q2 2023 to Q3 2023 Variance Lumber Key Wood Products Highlights: Wood Products Adjusted EBITDDA increased $3.2 million from Q2 20
Slide 9: Wood Products
WOOD PRODUCTS R E S U LT S Lumber Pricing and Shipments Wood Products Adjusted EBITDDA ($ in millions) $1,200 400 $200 $1,000 350 276 300 $150 Shipments (MMBF) Price: $/ MBF $800 250 $600 200 $100 $481 150 $400 100 $50 $200 50 $15.1 $- 0 $- Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 10: Real Estate Results
Real Estate Adjusted EBITDDA increased in Q3 2023 due to more rural land R E A L E S TAT E R E S U LT S sales partially offset by fewer residential and commercial sales in Chenal Valley. Real Estate Adjusted EBITDDA – Q2 2023 to Q3 2023 Variance Key Real Estate Highlights: Real Estate Adjusted EBITD
Slide 11: Rural Acres Sold and Average Price
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 $140,000 $4,500 $120,000 Average Price: $ / Acre Average Price: $ / Lot Residential Lots Sold $3,750 $100,000 Acres Sold $3,000 $3,546 $80,000 $89,122 $2,250 $60,000 32 $1,500 3,275 $40,0
Slide 12: Favorable Capital Structure
Our strong balance sheet and $602 million of liquidity provide a solid platform to FAV O R A B L E C A P I TA L continue to grow shareholder value over the long term. STRUCTURE Debt Maturities $190 $185 $176 $139 $ MILLIONS $100 $100 $40 $40 $40 $28 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Slide 13: Outlook
We anticipate Q4 2023 Total Adjusted EBITDDA will be lower than Q3 2023 primarily OUTLOOK due to lower lumber and indexed sawlog prices. TIMBERLANDS Q4 2023 FY 2023 Harvest Volume 1.8 – 1.9 million tons ~7.6 million tons Geographic harvest ~83% of volume in South ~80% of volume in South Sawlog mix N
Slide 14: Appendix
APPENDIX Q3 2023
Slide 15: Total Company Summary
TOTAL COMPANY SUMMARY in millions except per-share amounts – unaudited 2022 2023 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 TOTAL Operating income (loss): Timberlands $ 64.2 $ 46.4 $ 47.5 $ 31.7 $ 189.8 $ 26.2 $ 13.4 $ 22.9 $ 62.5 Wood Products 143.1 99.0 21.2 (8.4) 254.9 (11.1) 1.1 4.2 (5.8) Real Estate 19.0 14.4
Slide 16: Operating Segment Adjusted EBITDDA
OPERATING SEGMENT Non–GAAP Reconciliation ADJUSTED EBITDDA in millions – unaudited 2022 2023 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 TOTAL Timberlands Northern Timberlands operating income $ 56.7 $ 41.0 $ 42.3 $ 27.4 $ 167.4 $ 17.2 $ 8.7 $ 15.7 $ 41.6 Depreciation, depletion and amortization 1.9 1.7 2.2 2.2 8.0
Slide 17: Total Adjusted EBITDDA & CAD
TOTAL ADJUSTED Non–GAAP Reconciliation EBITDDA & CAD in millions – unaudited 2022 2023 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 TOTAL Total Adjusted EBITDDA Net Income (GAAP) $ 163.9 $ 120.2 $ 46.0 $ 3.8 $ 333.9 $ 16.3 $ 22.3 $ 23.6 $ 62.2 Interest expense, net 2.9 7.4 8.3 8.8 27.4 0.2 7.6 8.0 15.8 Income taxes 3
Slide 18: Statistics: Timberlands
STATISTICS: TIMBERLANDS unaudited 2022 2023 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 TOTAL Timberlands Fee Volumes (tons) Northern Region Sawlog 385,290 276,347 459,128 455,993 1,576,758 470,790 319,173 376,607 1,166,570 Pulpwood 8,259 11,383 11,197 9,043 39,882 8,029 7,989 7,081 23,099 Total 393,549 287,730 470,
Slide 19: Statistics: Wood Products and Real Estate
STATISTICS: WOOD PRODUCTS unaudited AND REAL ESTATE 2022 2023 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 TOTAL Wood Products Lumber shipments (MBF) 233,188 254,225 264,748 257,587 1,009,748 261,633 280,251 276,071 817,955 Lumber sales prices ($ per MBF) $ 1,075 $ 865 $ 572 $ 473 $ 737 $ 435 $ 476 $ 481 $ 465 Real E
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 adjusted for interest expense, net, income taxes, depletion, depreciation and amortization, basis of real estate sold, non-operating pension and other post-retirement benefit costs, pension settlement ch
Slide 21: Q3 2023 Earnings
Q3 2023 WAYNE WASECHEK EARNINGS Vice President and Chief Financial Officer October 31, 2023 509-835-1521 PotlatchDeltic (Nasdaq: PCH) www.PotlatchDeltic.com