Rayonier Inc. Reit · NYSE:RYN
Rayonier Inc. Reit — Rayonier — Investor Day (February 2024)
132 slides from Rayonier Inc. Reit's investor day presentation, Feb 28, 2024
Slide 1: 2024 Investor Day
2024 Investor Day February 28 | NYC
Slide 2: Welcome & Opening Remarks
Welcome & Opening Remarks COLLIN MINGS VP, Capital Markets & Strategic Planning RYN 2024 INVESTOR DAY | 2
Slide 3: Forward-Looking Statements
Forward-Looking Statements Forward-Looking Statements – Certain statements in this presentation regarding anticipated financial outcomes including Rayonier’s earnings guidance, if any, business and market conditions, outlook, expected dividend rate, Rayonier’s business strategies, expected harvest s
Slide 4: Today's Agenda
Today’s Agenda 9:00am 9:00 am Welcome & Opening Remarks 10:50 10:55 am am Excellence in Core Timber Business Collin Mings Doug Long VP, Capital Markets & Strategic Planning EVP, Chief Resource Officer Strong Foundation for the Future Creating Value through Dave Nunes Active Portfolio Management CEO
Slide 5: Strong Foundation for the Future
Strong Foundation for the Future DAVE NUNES CEO RYN 2024 INVESTOR DAY | 5
Slide 6: Strong Foundation for the Future
Strong Foundation for the Future Assembled a Post-Spin Leadership Team Leveraged Our Pure-Play Timber REIT Model Actively Managed Our Portfolio Launched Real Estate Development Business Built a Strong and Cohesive Culture Developed a Thoughtful Succession Plan Rayonier is Well-Positioned to Create L
Slide 7: Experienced Board Supportive of Our Long-Term Vision
Experienced Board Supportive of Our Long-Term Vision Key Skills Represented Public Company C-Suite/Board 70% Real Estate 60% Timber/Forestry Industry 50% Dod Fraser Dave Nunes Keith Bass Gregg Gonsalves Scott Jones Chairman CEO, CEO, Advisory Partner, Former President, President, Rayonier Mattamy Ho
Slide 8: Experienced Management Team with Proven Track Record
Experienced Management Team with Proven Track Record 200+ Years Industry Experience Dave Nunes Mark McHugh Doug Long April Tice Chris Corr CEO President & CFO; Incoming CEO EVP & Chief Resource Officer VP, Chief Accounting Officer; Incoming CFO SVP, Real Estate Development 150+ Years Joined: 2014 20
Slide 9: Embarking on a New Era of Growth
Embarking on a New Era of Growth MARK McHUGH President & CFO; Incoming CEO RYN 2024 INVESTOR DAY | 9
Slide 10: Today's Key Messages
Today’s Key Messages Low carbon transition is driving transformative value 1 creation opportunities for our timberland assets Real estate development platform is well-positioned to 2 accelerate value realization Core timber and Higher & Better Use (HBU) businesses 3 remain best-in-class and poised f
Slide 11: Rayonier Today (NYSE: RYN)
Rayonier Today (NYSE: RYN) Key Stats Business Segments Adj. EBITDA2 Mix by Segment 1926 ~440 Founded Employees 70% Timber Segments ~2.7M ~11M Tons 30% Total Acres1 Sustainable Yield $296.5M 47% 2023 Southern Timber $296.5M $1,056.9M $163.9M Pacific Northwest (PNW) Timber FY23 Adj. EBITDA2 FY23 Sales
Slide 12: Key Trends Driving Increased Demand for Land and Timber
Key Trends Driving Increased Demand for Land and Timber GLOBAL MEGATREND Growing Need for Land-Based Solutions Decarbonization Solutions Low-Carbon Economy Transition Growing Use of Renewable Wood-Based Products Growing Demand for U.S.-CENTRIC TREND Land and Undersupplied U.S. Housing Market Timber
Slide 13: Evolution from a Timber Company to a Land Resources Company
Evolution from a Timber Company to a Land Resources Company Core Business Growth Business Timber Timber Non-Timber Land-Based Segments Harvesting Revenue1 Solutions Real Estate / Real Estate Non-Strategic Rural HBU HBU Segment Development High-Value Growth Opportunities Emerging from Our Timberland
Slide 14: Significant Value Creation Potential from Optimizing Land-Use
Significant Value Creation Potential from Optimizing Land-Use Up to 15x Value Up to $30,000 Up to ~5-10x $25,000 Value per Acre Potential 10x Timber Value Creation Value Potential from Land-Based $20,000 Solutions $15,000 Up to 5x Value $10,000 Up to $5,000 ~10-15x Timber Value Creation $0 – Core Ti
Slide 15: A New Vision to Inspire Our New Ambitions
A New Vision to Inspire Our New Ambitions To realize the full potential of our land resources in meeting the needs of society. PATHWAY TO REALIZING OUR VISION Grow Deliver Create Renewable Forest Products Innovative Land-Based Solutions Inspirational Places RYN 2024 INVESTOR DAY | 15
Slide 16: How We Will Win – Our Portfolio Advantages
How We Will Win – Our Portfolio Advantages Best-in-Class Differentiated Transformative Timberland Portfolio Real Estate Platform Growth in Land- Based Solutions • 100% of timberlands • Real estate platform with • Burgeoning opportunities located in core softwood proven track record of to provide lan
Slide 17: Highly Productive, Geographically Diversified Timberlands
Highly Productive, Geographically Diversified Timberlands 412 PACIFIC NORTHWEST 6 Acreage: 418K Acres Sustainable Yield: 1.25-1.45M Tons U.S. SOUTH Acreage: 1.85M Acres Sustainable Yield: 6.8-7.2M Tons 91 2 16 255 662 147 282 397 NEW ZEALAND Acreage: 421K Acres Sustainable Yield: 2.4-2.7M Tons Gener
Slide 18: Concentrated in Attractive U.S. South Markets
Concentrated in Attractive U.S. South Markets Rayonier Acreage Mix U.S. South Acreage Superior EBITDA2 in Top Quartile Markets per Acre Generation 71% $84 $83 31% $66 $68 $61 $61 $54 $55 25% $51 $45 69% Rayonier Public Peer Average1 2019 2020 2021 2022 2023 U.S. South PNW/NZ Rayonier NCREIF South 3
Slide 19: Proven Real Estate Platform with Development Capabilities
Proven Real Estate Platform with Development Capabilities Core Business Growth Business Unimproved Improved Non-Strategic Rural Development Development Sale of non-strategic Creating value Creating value through Creating value timberland assets through rural places properties with through developed
Slide 20: Executing Real Estate Strategy to Optimize HBU Value
Executing Real Estate Strategy to Optimize HBU Value Average HBU1 Price per Acre / Real Estate Segment Sales Mix3 Premium to NCREIF2 Rural / Other Development $4,084 104% $2,763 15% 55% 44% 2015-2017 2021-2023 56% 2015-2017 2021-2023 85% Rayonier Price per Acre Premium to NCREIF HBU Premiums Have In
Slide 21: High-Value Real Estate Development Pipeline
High-Value Real Estate Development Pipeline Total 2% Acres 30% Florida Development Potential ~121K Georgia Washington 68% Entitled / In-Planning ~50K Longer-Term Pipeline ~71K Continued focus Areas with large Strong local Community- on high-growth contiguous community centric population landholdings
Slide 22: Net Zero Transition Driving Demand for Land-Based Solutions
Net Zero Transition Driving Demand for Land-Based Solutions Global CO2 Emissions – Path to Net Zero Global Net Zero Commitments Cover4 (GtCO2 per Year) >75% >50% ~88% 50 Business-as-Usual Emissions1 40 of All of ~2,000 Largest of Global Countries Companies CO2 Emissions 30 20 Driving Investment in D
Slide 23: Rayonier's Land-Based Solutions Focus Areas
Rayonier’s Land-Based Solutions Focus Areas Alternative / Additional Carbon Fiber for Land Use Markets Bioenergy / Biofuel Solar CCS Wind Voluntary (U.S.) Compliance (NZ) BECCS Sustainable Farms Aviation Fuel (SAF) Highest potential near-term opportunities Significant value generated from NZUs1, Lon
Slide 24: Well-Positioned to Capture Solar and CCS Growth
Well-Positioned to Capture Solar and CCS Growth Projected U.S. Utility Solar Capacity (GW)1 Projected U.S. CCUS Demand (Mtpa)2 342 239 218 294 250 167 210 141 174 142 113 80 90 60 71 46 30 22 22 22 22 24 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2020 2021 2022 2023 2024 2025 2026 2027 2
Slide 25: How We Will Win – Our Organizational Advantages
How We Will Win – Our Organizational Advantages Pure-Play Nimble Capital Organization Aligned Timber REIT Allocation Approach with Strategy • Pure-play timber REIT • Nimble capital allocation • Strong ESG profile and structure provides strategy to build long-term commitment to sustainability enhance
Slide 26: Rayonier is the Only "Pure Play" Timber REIT
Rayonier is the Only “Pure Play” Timber REIT Benefits of Pure-Play Structure 100% 38% Land-Based Land-Based Lower Cash Flow Volatility 26% 27% Rayonier Peer Group 5-Year 5-Year Greater Optionality and Avg. EBITDA1 Avg. EBITDA Operational Flexibility Composition 62% Composition 2 11% 74% Greater Upsi
Slide 27: Nimble Capital Allocation and Prudent Financial Management
Nimble Capital Allocation and Prudent Financial Management NAV-Accretive Share Opportunistic Prudent Balance Executing Initiatives to Repurchases Capital Raising Sheet Management Enhance Shareholder Value $23.84 ~$36.43 2.8% Responded to Unprecedented Disconnect Between Public and Average Buyback Pr
Slide 28: Sustainability is Ingrained in Everything We Do
Sustainability is Ingrained in Everything We Do ENVIRONMENTAL SOCIAL GOVERNANCE Carbon Footprint1 50% YOY Reduction 60% Board Diversity Carbon in Contractor Recordable Gender, Race, and 14.2M MT Sequestered Injury Count in U.S. National Origin Carbon 290K MT Emitted Comprehensive 90% Board Signed Ne
Slide 29: Strong Organizational Culture Built on Shared Values
Strong Organizational Culture Built on Shared Values Our Values-Driven, “One Rayonier” Culture is Well-Aligned with Our Vision and Strategy RYN 2024 INVESTOR DAY | 29
Slide 30: Executing a Clear Strategy to Build Long-Term Value per Share
Executing a Clear Strategy to Build Long-Term Value per Share Compounding Shareholder Optimize Expand Leverage Value Core Land-Based Real Estate Timber Solutions Development Operations Offerings Platform • Market-Driven Precision • Solar • Creating Inspirational Places $ Forestry • Carbon Capture &
Slide 31: Introducing Long-Term Adj. EBITDA Financial Targets
Introducing Long-Term Adj. EBITDA Financial Targets Land-Based Solutions (U.S. Only) Real Estate Development Target Annual Adj. EBITDA1 Contribution ($M) Target Average Annual Adj. EBITDA1,2 Contribution ($M) $75 ~$40 ~$28 $30 ~$10 $10 NM 2024 2027 2030 Pre-2016 2016-2020 2021-2025 2026-2030 1 Non-G
Slide 32: Key Takeaways
Key Takeaways 1 Low carbon 2 Real estate 3 Core timber and 4 Organization transition is driving development Higher & Better and culture is transformative platform is well- Use (HBU) well-aligned value creation positioned to businesses remain with our ambitious opportunities for accelerate best-in-cl
Slide 33: Driving Increased Optionality through Land-Based Solutions
Driving Increased Optionality through Land-Based Solutions Doug Long EVP, Chief Resource Officer RYN 2024 INVESTOR DAY | 33
Slide 34: Key Messages
Key Messages Increasing optionality and monetization 1 opportunities from land-based solutions – solar, CCS, carbon markets, and bioenergy Uniquely positioned given our footprint and 2 scale in markets best suited to provide solutions Introducing land-based solutions financial 3 targets – executing
Slide 35: Secular Trends Driving Increased Demand for Land-Based Solutions
Secular Trends Driving Increased Demand for Land-Based Solutions GROWING GROWING DEMAND FOR DEMAND FOR Growth of Wood- Fiber for Carbon Alternative Environmental Based Products Bioenergy Markets Land Uses Conservation Mass timber as an Bioenergy with Compliance carbon Renewable energy Mitigation ban
Slide 36: Rayonier Well-Positioned to Deliver Innovative Land-Based Solutions
Rayonier Well-Positioned to Deliver Innovative Land-Based Solutions SOLAR VOLUNTARY CARBON MARKETS Leasing land to renewable Retaining timber assets for electricity generators for long-term ecological benefits while utility-scale solar farms monetizing related carbon credits CARBON CAPTURE & STORAGE
Slide 37: Demand for Utility Solar Increasing Significantly
Demand for Utility Solar Increasing Significantly Key Drivers Impact of Inflation Reduction Act1,2 (Projected GW of U.S. Utility Solar Capacity) • Solar levelized cost of 500 electricity (LCOE) has 22% declined more than 80% CAGR since 2008 342 • Over 40% of U.S. electric capacity additions driven b
Slide 38: Utility Solar Growth Implies Significant Land Need
Utility Solar Growth Implies Significant Land Need Projected Utility Solar Installations / Implied Land Need 60 3.5 Utility Solar Land Use 3.0 50 Capacity Additions (GW) 2.5 Land Need (M Acres) 40 2.0 30 1.5 20 1.0 ~7 Acres per MW ~75-200 MW ~180 GW 10 0.5 of Generation Capacity Per Installation U.S
Slide 39: Significant Solar Growth in U.S. South
Significant Solar Growth in U.S. South Projected Regional Share of Projected U.S. South Rayonier Utility Solar Capacity Additions Solar Installations by State U.S. Positioning1 (% Share of Capacity Additions: 2023-2028) (% of U.S. South Utility Solar Installations: 2023-2028) (% of Owned Acres vs. P
Slide 40: Illustrative Solar Economics
Illustrative Solar Economics Solar Leasing Process / Economics Step-Change Economics Driven by Option-to-Lease Conversion 1 Lease typically starts with developer $1,200+ entering a 3- to 5-year option ~10-15x – No impact to timber operations Potential Lease Timber Payment EBITDA1 Feasibility studies
Slide 41: Executing Strategy to Capture Solar Value
Executing Strategy to Capture Solar Value Rayonier Value Proposition Rayonier’s Acres Under Option 50K+ Align with Provide Deliver High-Potential Highly Suitable Significant Customers Lands Customer Value ~7x • Owner • Proximity to • Streamline site Growth Operators power selection 27K 24K • Utiliti
Slide 42: Demand for CCS Increasing Significantly
Demand for CCS Increasing Significantly Decarbonization Driving Increased …But Structural Factors Constrain Supply Demand for Pore Space Capacity… • Permitting is often a 4+ year process Projected U.S. CCUS Demand (Mtpa)1 • Smaller tract sizes can limit storage potential 297 • Existing CO2 pipeline
Slide 43: Well-Positioned to Address Key CCS Requirements
Well-Positioned to Address Key CCS Requirements High-Purity Emissions Sources Geologic Storage Capacity Access to Pipelines Near-term demand likely driven by high- Large tracts of land with geologic capacity Existing pipelines and rights-of-way in purity emissions sources (e.g., natural gas and limi
Slide 44: CCS Opportunities Concentrated in TX and LA
CCS Opportunities Concentrated in TX and LA High-Purity Emissions Sources Geologic Storage Capacity Access to Pipelines Rayonier Ownership GHG Emitter CO2 Pipeline Opportunities Concentrated in East TX and Southern LA with Longer-Term Potential in Southern AL and GA RYN 2024 INVESTOR DAY | 44
Slide 45: Illustrative CCS Economics
Illustrative CCS Economics Lease Structure Overview Sliding Scale Economics Driven by Injection Rates • Landowner receives a fee per $500+ Pre-Injection Post-Injection acre through initial rental agreement, which covers permitting Annual per Acre Economics and construction phases +3-5x • At onset of
Slide 46: Executing Strategy to Capture CCS Value
Executing Strategy to Capture CCS Value Rayonier Value Proposition Rayonier’s Acres Under Agreement 70K+ Align with Provide Deliver High-Potential Highly Suitable Significant Customers Lands Customer Value • Aggregators • Proximity to • Lower relative • High-purity emission source costs 26K emitters
Slide 47: Demand for Carbon Offsets Expected to Grow
Demand for Carbon Offsets Expected to Grow Key Growth Drivers Projected Issuance of Carbon Credits by Year, MtCO2e/year 1 (Billions) Growing number of corporate net-zero pledges ~16x and carbon-neutral products Growth 3.2 Shift from carbon avoidance to carbon removal ~12x Growth 2.9 2.4 Quest for hi
Slide 48: Favorable Bioenergy Market Drivers
Favorable Bioenergy Market Drivers Bioenergy Project Activity VA Across Our Footprint1 Bioenergy Plays a Significant Role OK TN NC in All Net-Zero Scenarios and is AR SC Likely to be Incentivized MS AL GA • Provides an avenue to reduce or TX eliminate emissions in difficult areas LA FL (e.g., aviati
Slide 49: Decisions on Land-Based Solutions Consider Multiple Factors
Decisions on Land-Based Solutions Consider Multiple Factors Proximity of “Stackability” Availability of Relative value of Decarbonization Timing of assets to of alternative value high-quality alternative uses vs. benefits and other monetization strategic partners streams counterparties long-term tim
Slide 50: Our Long-Term U.S. Land-Based Solutions Targets
Our Long-Term U.S. Land-Based Solutions Targets Target Annual Adj. EBITDA1,2 Key Drivers / What to Monitor Contribution ($M) • Pipeline of acres under option $75 Solar • Option conversion rate • Acres under lease / rate of injection CCS • Permitting timetable and state primacy $30 Carbon • Pricing t
Slide 51: Key Takeaways
Key Takeaways 1 Increasing optionality 2 Uniquely positioned 3 Introducing land-based and monetization given our footprint solutions financial opportunities from and scale in markets best targets – executing with land-based solutions – suited to provide solutions confidence on opportunities solar, C
Slide 52: Wildlight Video
Wildlight Video RYN 2024 INVESTOR DAY | 52
Slide 53: Scaling Our Real Estate Development Platform
Scaling Our Real Estate Development Platform Chris Corr SVP, Real Estate Development, and President of Raydient RYN 2024 INVESTOR DAY | 53
Slide 54: Key Messages
Key Messages Well-positioned landholdings with growing 1 market demand 2 Proven capability to execute with a very long runway Creating inspirational places that enhance our local 3 communities and earn market premiums RYN 2024 INVESTOR DAY | 54
Slide 55: Real Estate Development – Creating New Growth Opportunities
Real Estate Development – Creating New Growth Opportunities Core Business Growth Business Unimproved Improved Non-Strategic Rural Development Development Sale of non-strategic Creating value Creating value Creating value timberland assets through rural places through properties with through develope
Slide 56: Real Estate Development – Where We Play
Real Estate Development – Where We Play STRATEGIC SWEET SPOT Vertical Development Horizontal • Buildings Development Entitlement • Marketing • Civil Engineering • Sales • Project Strategy Undeveloped Land • Enabling Infrastructure • Operations • Program Development • Amenities • Land Classification
Slide 57: How We Built a Leading Real Estate Development Platform
How We Built a Leading Real Estate Development Platform Lessons Learned from the …Applied to Rayonier’s Industry’s Prior Experiences… Real Estate Development Platform Market: Prioritize feasibility process to identify deep, sustainable Focused on land in close proximity to population growth and buil
Slide 58: Our Unique, Sustainable Competitive Advantages
Our Unique, Sustainable Competitive Advantages MARKET POSITION SCALE & REPUTATION STRONG CAPABILITIES Concentrated portfolio in Significant size and scale Deep industry expertise and attractive geographies such supported by deep community core competencies in entitlements as Florida and Georgia rela
Slide 59: Over 120K Acres with Long-Term Development Potential
Over 120K Acres with Long-Term Development Potential (Acres) Northeast Florida Southeast Georgia Kitsap+ Washington Development Potential ~82K ~36K ~2.7K Entitled / In-Planning ~37K ~12K ~700 Longer-Term Pipeline ~45K ~24K ~2K Continued focus on high-growth population centers Close proximity to exis
Slide 60: U.S. Southeast Overview: Extraordinary Platform for Growth
U.S. Southeast Overview: Extraordinary Platform for Growth Northeast Florida Southeast Georgia Total Acres ~361K ~613K Development Potential ~82K ~36K Entitled Acres ~17K ~7K In-Planning Acres ~20K ~5K Longer-Term Pipeline ~45K ~24K Rayonier Ownership Strong Market Demand and Economic Growth Align w
Slide 61: Well-Positioned to Capture Favorable Migration Trends
Well-Positioned to Capture Favorable Migration Trends Top 10 Fastest Growing Markets in the U.S. (2020-2022)1 Key FL and GA 9.0% #6 #9 Migration Drivers 7.3% 7.1% 5.8% 4.9% 4.2% 4.0% 4.0% • Quality of life 3.8% 3.8% • Warmer climate • Lower cost of living (e.g., taxes) Myrtle Beach Cape Coral North
Slide 62: Wildlight: Project Overview
Wildlight: Project Overview Key Stats Notable Elements Next Steps 2016 $93M • • >50% dedicated to open space and conservation Special purpose local government for financing • • Significant expansion of residential neighborhoods Capturing commercial opportunities PROJECT START PROJECT-TO-DATE REVENUE
Slide 63: Wildlight: Major Milestone
Wildlight: Major Milestone Received entitlement approval for Phase 2 of Wildlight in November 2023 Phase 2 • Creates approved plan and entitlements for over Phase 1 ~15,000 acres and ~15,000 residential units • Development begins 1H24, first sales expected in 2025 10-Miles 20-Miles Building on stron
Slide 64: Heartwood: Project Overview
Heartwood: Project Overview Key Stats Notable Elements Next Steps 2021 $76M • • Interstate 95 Exit 82 opened Jan. 2021 Heartwood Commerce Park: parcels sold for • • New residential segments Expansion of industrial park PROJECT START1 PROJECT-TO-DATE REVENUE2 ~12M sq. ft. projected buildout • Capturi
Slide 65: U.S. Pacific Northwest Overview: Select High-Value Opportunities
U.S. Pacific Northwest Overview: Select High-Value Opportunities Background / Overview Acquired as Rare, sizable Fast and easy Scenic nature, part of Pope tracts of land commuting water, and Resources proximate via Kitsap mountain views transaction to Seattle Fast Ferry and access to metro area abun
Slide 66: Unimproved Development Overview: Capturing Value with Minimal Investment
Unimproved Development Overview: Capturing Value with Minimal Investment Value Realization Key Transactions (2015-2023) ~5,240 Acres Sold Sale Price $/Acre Kitsap County, WA1 359 $40.0M $111,551 Acres Sold St. John’s County, FL 784 $14.3M $18,402 $105M St. John’s County, FL 570 $8.4M $14,780 Gross R
Slide 67: Real Estate Development Long-Term Financial Targets
Real Estate Development Long-Term Financial Targets Target Average Annual Adj. EBITDA1,2 Contribution ($M) Key Drivers / Objectives • Expand Wildlight with Phase ~$40 2 development • Optimize opportunities driven by accelerating ~$28 growth at Heartwood • Activate additional, very select, master pla
Slide 68: Key Takeaways
Key Takeaways 1 Well-positioned 2 Proven capability 3 Creating inspirational landholdings with growing to execute with a very places that enhance our market demand long runway local communities and earn market premiums RYN 2024 INVESTOR DAY | 68
Slide 69: Q&A Session
Q&A Session RYN 2024 INVESTOR DAY | 69
Slide 70: Break
Break RYN 2024 INVESTOR DAY | 70
Slide 71: Excellence in Core Timber Business
Excellence in Core Timber Business Doug Long EVP, Chief Resource Officer RYN 2024 INVESTOR DAY | 71
Slide 72: Key Messages
Key Messages Operating high quality assets concentrated in 1 attractive markets Favorable long-term demand trends 2 for sawlogs and pulpwood Optimizing asset productivity and increasing 3 resiliency through advanced silvicultural techniques RYN 2024 INVESTOR DAY | 72
Slide 73: High Quality Assets in Core Softwood Markets
High Quality Assets in Core Softwood Markets U.S. South Pacific Northwest New Zealand 1.85M Acres 418K Acres 421K Acres • Loblolly, slash, and longleaf pine • Douglas-fir and western hemlock • Highly versatile Radiata pine forests that serve both pulp and species primarily used for and Douglas-fir p
Slide 74: Inherent Stability in Our Core Timber Business
Inherent Stability in Our Core Timber Business Where Rayonier Forest Products Supply Chain Primarily Plays SAW LOGS WOOD PRODUCTS MANUFACTURING LUMBER / WOOD PRODUCTS DISTRIBUTORS / RETAILERS TIMBER PULPWOOD PULP & PAPER MANUFACTURING PAPER PRODUCTS Lower MARKET VOLATILITY Higher Historical Industry
Slide 75: Committed to Sustainable Forestry and State-of-the-Art Silviculture
Committed to Sustainable Forestry and State-of-the-Art Silviculture • Nearly all timberlands are certified under SFI, • Leveraging deep forestry expertise and in-house FSC, and/or PEFC1 R&D to employ Market Driven Precision Forestry • Forest management standards incorporate strategy Sustainable a mu
Slide 76: Timberlands: Key Market Drivers
Timberlands: Key Market Drivers U.S. Housing Pulpwood Markets Export Demand Grade products are largely sold to lumber Pulp mills provide a base load of timber Log exports are a key contributor to market mill customers that have direct exposure to demand within many of our operating areas, tension in
Slide 77: Timber Segment EBITDA Mix
Timber Segment EBITDA Mix 30% 21% $296.5M 2023 Total $234.1M Adj. EBITDA1 2023 Timber 12% Segments Adj. EBITDA1 70% 67% Timber Segments Real Estate U.S. South PNW NZ Approximately Two-Thirds of Timber Segments EBITDA Generated in U.S. South 1 Non-GAAP measure (see Appendix for definitions and RYN re
Slide 78: U.S. South: Concentrated in Top Markets
U.S. South: Concentrated in Top Markets 2023 Composite Price 2023 Composite Price by Region Quartile Rankings $/ton 71% Key Takeaways Top Quartile $25 Markets • Supply / demand dynamics highly localized as logs generally travel less than $20 100 miles • Timber consumption vs. $15 inventory growth re
Slide 79: U.S. South: Continued Market and Capacity Growth
U.S. South: Continued Market and Capacity Growth U.S. South Lumber Production, Average Lumber Production Capacity, and Market Share1 Costs by Region1 Key Takeaways ($U.S. per MBF) • U.S. South has gained a 38% $409 significant share of North $375 $371 American lumber capacity, $318 increasing from 2
Slide 80: U.S. South: Pulpwood End Markets
U.S. South: Pulpwood End Markets 4% Pulpwood Market Outlook 4% Tissue 4% Spe ag Pac 2021-2023: Post-COVID Pullback in Demand cia ing k Di ulp • Declining box shipments following pandemic-related spike P ss 5%P lty olv ell in demand ing ets • Modified shipping practices by large shippers (e.g., Amazo
Slide 81: Pacific Northwest: Log Pricing Highly Correlated to Lumber Pricing
Pacific Northwest: Log Pricing Highly Correlated to Lumber Pricing Pacific Northwest Log and Lumber Prices1 Key Takeaways ($U.S. per MBF) 1,400 2.5 Ratio • Strong relationship between log and lumber prices due to 1,200 2.0 balanced growth-to-drain ratio 1.6 1,000 Avg. Log • Favorable demographics an
Slide 82: New Zealand: Export Market Drivers
New Zealand: Export Market Drivers New Zealand: Export Markets Chinese Log Import Volumes Key Takeaways Million m3 • Construction demand was 60 70% negatively impacted by economic challenges stemming from COVID Japan 60% China 50 shutdowns and a liquidity crisis in South Korea the Chinese property s
Slide 83: New Zealand: Anticipated Growth in Domestic Market
New Zealand: Anticipated Growth in Domestic Market Government of Vision and Goals New Zealand Industry 6.9M Ton Reduction in Carbon Emissions Transformation Plan by 2030 Creating a high-value and resilient forestry and wood processing sector to underpin 3.5M m3 Increase in Wood Processing New Zealan
Slide 84: Key Takeaways
Key Takeaways 1 Operating high quality 2 Favorable long-term 3 Optimizing asset assets concentrated in demand trends productivity and attractive markets for sawlogs and pulpwood increasing resiliency through advanced silvicultural techniques RYN 2024 INVESTOR DAY | 84
Slide 85: Creating Value through Active Portfolio Management
Creating Value through Active Portfolio Management Rhett Rogers SVP, Portfolio Management RYN 2024 INVESTOR DAY | 85
Slide 86: Key Messages
Key Messages Executing a disciplined and multi-faceted 1 approach to active portfolio management with a seasoned team of leaders Proven track record of capturing significant 2 premiums through rural HBU program 3 Positioning portfolio to maximize optionality Demonstrated ability to take opportunisti
Slide 87: Active Portfolio Management Approach
Active Portfolio Management Approach Acquire Divest Less Sell Rural High-Quality Strategic Assets HBU to Capture Land to Improve for Capital Premiums Portfolio Recycling • Identify highest and best use • Improve forest productivity • Continuously evaluate of every acre and sustainable yield portfoli
Slide 88: Rural HBU Program – Consistently Driving Premium Realization
Rural HBU Program – Consistently Driving Premium Realization Core Business Growth Business Unimproved Improved Non-Strategic Rural Development Development Sale of non-strategic Creating value Creating value Creating value timberland assets through rural places through properties with through develop
Slide 89: Strong Demand for Rural Land
Strong Demand for Rural Land Rural Properties Homesteading Recreation • 25+ acre tracts • Surge in demand for recreational and natural retreats as well as investment properties • Promote outdoor recreation and properties with unique and natural features • Strong demand from those recognizing investm
Slide 90: Proven Track Record of Capturing Premiums
Proven Track Record of Capturing Premiums Avg. HBU Value per Acre2 ($/Acre) | Premium to NCREIF South (%) $4,084 $ 5 , 0 0 2 0 % $ 4 , 5 0 0 1 8 0 % $ 4 , 0 0 1 6 0 % $ 3 , 5 0 0 $2,763 $2,971 104% 1 4 0 % Real Estate / HBU Economics $ 3 , 0 0 1 2 0 % 55% 65% $ 2 , 5 0 0 1 0 % $ 2 , 0 0 8 0 % • Targ
Slide 91: Active Portfolio Management Framework
Active Portfolio Management Framework Where to Play What to Buy / Sell How to Capitalize Geographical Fit Market Dynamics Property Attributes Strategic Alignment Financial Metrics Portfolio Upgrade Premier softwood Timber supply / Forest productivity Synergistic with Cash yield Increasing biological
Slide 92: Disciplined, Data-Driven Underwriting Process
Disciplined, Data-Driven Underwriting Process Leverage Target Underwrite Employ Pursue Institutional Properties in with a Disciplined Rigorous Continuous Knowledge Top Markets Process Financial Analysis Improvement Tap into the deep Identify properties Calibrate biological Utilize a transparent Driv
Slide 93: Positioning Portfolio to Maximize Optionality
Positioning Portfolio to Maximize Optionality Net Acreage Acquired or Sold by State1 Key Takeaways (000 Acres, 2017-2023) • Acquired acreage in strong +98 timber markets with optionality for land-use conversion near -55 population centers • Reduced footprint in more remote areas with less optionalit
Slide 94: Improving Productivity through Active Portfolio Management
Improving Productivity through Active Portfolio Management Acquisitions and Land Sales by Year Acres Owned or Managed Sustainable Yield (000 Acres) (Million Acres) (Million Short Green Tons | Tons / Acre / Year) Acquired Sold 156 Sustainable Yield 141 2.8 2.7 2.7 2.7 2.7 2.7 Sustainable Yield per Ac
Slide 95: Pope Resources' Case Study: Maximizing Value through Portfolio Optimization
Pope Resources’ Case Study: Maximizing Value through Portfolio Optimization Background Actions Taken Outcomes Announced: January 2020 • Quickly integrated forestry and harvest Returned $237M of cash operations to maximize synergies representing 36% of purchase Size: $656M • Developed new sources of
Slide 96: Davis Acquisition Case Study: Buy Wholesale, Sell Retail
Davis Acquisition Case Study: Buy Wholesale, Sell Retail Land Acquired 2013-2023 Key Actions Additional Highlights in East TX Maximizing Value by Opportunistically (2012) Disposing of HBU Acreage ü ~47K acres continue to be managed for timber, ~63K Acres Sold Sale Price $/Acre land-based solutions,
Slide 97: Dionysus & Tigercat Acquisitions Case Study
Dionysus & Tigercat Acquisitions Case Study: Upgrading U.S. South Portfolio through Large Scale Acquisition Highlights – Increased Presence in Strong U.S. South Markets Future Opportunity • Average annual harvest Nov 2022 Price: ~$454M ~138K Total Acres volume of ~725K tons over • Highly productive
Slide 98: Private Timberland M&A Markets Remain Robust
Private Timberland M&A Markets Remain Robust U.S. Timberland Deal Flow Avg. Reported Real Discount Rates1 $M Sold # Transactions Real Discount Rate 6.0% 5,000 60 4,500 50 5.0% 4,000 3,500 4.0% 40 3,000 2,500 30 3.0% 2,000 20 2.0% 1,500 1,000 10 1.0% 500 –0 0 0.0% – 2014 2015 2016 2017 2018 2019 2020
Slide 99: U.S. South Valuation Dynamics
U.S. South Valuation Dynamics U.S. South Value per Acre (NCREIF) Key Components of Timberland Returns $2,000 25-50x 14-17x 3.1% Multiple of Multiple of CAGR EBITDA Total Return $1,500 $1,000 ~2.0% 6.0-7.0% $500 $-– 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Slide 100: Asset Disposition Plan: Leveraging Public vs. Private Arbitrage Opportunity
Asset Disposition Plan: Leveraging Public vs. Private Arbitrage Opportunity EV / EBITDA Multiple Comparison $1B Disposition Initiative • Rayonier’s public market valuation is currently below private market Oregon Disposition valuation benchmarks • Sold 55,000 acres in Southwest Oregon to Manulife •
Slide 101: Update on Our Disposition Plan
Update on Our Disposition Plan Key Objectives Key Disposition Criteria • Reduce leverage for higher rate environment Concentrate capital in markets with • Capitalize on public-private valuation gap • Strongest cash flow attributes • Most favorable long-term growth prospects Update on Approach by Reg
Slide 102: Key Takeaways
Key Takeaways 1 Executing a 2 Proven track 3 Positioning 4 Demonstrated disciplined and record of portfolio ability to take multi-faceted capturing to maximize opportunistic approach to active significant optionality actions as market portfolio management premiums through conditions change with a se
Slide 103: Committed to Prudent Financial Management
Committed to Prudent Financial Management APRIL TICE VP, Chief Accounting Officer, and Incoming CFO RYN 2024 INVESTOR DAY | 103
Slide 104: Key Messages
Key Messages Building on a strong financial foundation 1 with significant growth opportunities on the horizon Continuing to optimize the balance sheet 2 to enhance shareholder value Enabling greater stakeholder value creation 3 through nimble and opportunistic capital allocation Confident that we ha
Slide 105: Strong Through-the-Cycle Financial Performance
Strong Through-the-Cycle Financial Performance Adj. EBITDA1 ($M) Cash Available for Distribution1 ($M) Timber Real Estate 4.5% $242.5 CAGR $337.7 $329.8 $314.2 $296.5 $208.0 4.1% $290.5 $191.5 CAGR $267.4 ~21% $190.5 $247.8 ~28% $239.7 ~34% ~30% $208.1 ~31% $162.7 $163.9 ~31% ~22% $151.9 ~33% $145.4
Slide 106: Conservative Capitalization and Balance Sheet Management
Conservative Capitalization and Balance Sheet Management Capitalization Maturity Profile2 12/31/23 Hedged for Term Hedged Until August 2024 $500 $1,373M - $208M = $1,165M $150M $450 of remaining floating rate Total Debt Cash Net Debt exposure through 2025 $400 $350 $150M Credit / Valuation Data paid
Slide 107: Committed to Maintaining Investment Grade Credit Profile
Committed to Maintaining Investment Grade Credit Profile Current Credit Enhanced Credit Credit Ratings Highlights Ratio Targets Investment Grade Credit Ratings • Ongoing access to Farm Net Debt / Adj. EBITDA Target Credit System Old New BBB- / Stable • Strong Adj. EBITDA margins ≤4.5x ≤3.0x S&P • Hi
Slide 108: Well-Positioned to Maintain Low Cost of Debt
Well-Positioned to Maintain Low Cost of Debt Floating Rate Rayonier Debt / Interest Rate Swap Maturity Profile1 Exposure Through 2024 Current Floating Rate Debt Debt Maturity $450 $150M Through 2026 Earmarked for $350M Near-Term Repayment $200 $200 $200 $150 Through 2028 $100 $650M - 2024 2025 2026
Slide 109: Nimble Capital Allocation Approach
Nimble Capital Allocation Approach Return Capital to Manage the Invest in Growth Shareholders Balance Sheet Silviculture Share Acquisitions Dividends Balance Sheet Capex Buybacks Historical ~$45M ~$2.3B 3.4% 4.7M ~2.8% Use of Invested Acquisitions Current Shares Bought Weighted Average Annually Comp
Slide 110: Update on Our Shareholder Value Enhancement Initiatives
Update on Our Shareholder Value Enhancement Initiatives $1B Plan Objectives Disposition Plan – • Enhance shareholder value by Targeted capturing disparity between public Remaining Asset Sales and private market timberland values $1B Asset Sales • Enhanced credit ratio targets will further strengthen
Slide 111: Anticipate New Disclosures Around Land-Based Solutions and Real Estate Development
Anticipate New Disclosures Around Land-Based Solutions and Real Estate Development Land-Based Solutions (U.S. Only) Real Estate Development Key Takeaways Target Annual Adj. EBITDA1 Target Average Annual Adj. EBITDA1,2 Contribution ($M) Contribution ($M) • Ongoing commitment to transparency $75 • Sup
Slide 112: Building on a Strong Financial Foundation
Building on a Strong Financial Foundation Key Priorities as Newly Appointed CFO Focusing on Enhancing finance Maintaining top continued financial platforms for finance talent transparency continued growth Maintaining open and Building on past successes Preserving the One transparent shareholder to b
Slide 113: Key Takeaways
Key Takeaways 1 Building on a 2 Continuing to 3 Enabling greater 4 Confident that we strong financial optimize the stakeholder value have the right team foundation balance sheet creation through in place to execute with significant to enhance nimble and our strategy growth opportunities shareholder
Slide 114: Closing Remarks
Closing Remarks MARK McHUGH President & CFO; Incoming CEO RYN 2024 INVESTOR DAY | 114
Slide 115: Three Strong Businesses Well-Positioned for Future Growth
Three Strong Businesses Well-Positioned for Future Growth High Quality Timberlands in Superior Markets Timber Favorable Long-Term Demand Outlook for Wood Fiber Focused on Responsible Stewardship Well-Positioned Entitled to Capture Growing Market Land-based Landholdings Provide Demand Solutions Low-C
Slide 116: How We Will Win – Our Sustainable Competitive Advantages
How We Will Win – Our Sustainable Competitive Advantages Best-in-Class Differentiated Transformative Timberland Real Estate Growth in Land- Portfolio Platform Based Solutions Pure-Play Nimble Capital Organization Timber REIT Allocation Aligned with Approach Strategy RYN 2024 INVESTOR DAY | 116
Slide 117: Grow Create Deliver
Grow renewable forest products To realize the full potential of our land resources in meeting the needs of society. Our Path Create inspirational places Deliver innovative land-based solutions RYN 2024 INVESTOR DAY | 117
Slide 118: Appendix
Appendix RYN 2024 INVESTOR DAY | 118
Slide 119: Definitions of Non-GAAP Measures and Pro Forma Items
Definitions of Non-GAAP Measures and Pro Forma Items Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, depletion, amortization, the non-cash cost of land and improved development, non-operating income and expense, costs related to shareholder litigation, the gain on foreig
Slide 120: Reconciliation of Net Debt
Reconciliation of Net Debt ($ in millions) Q4 2023 Current maturities of long-term debt — Long-term debt, net of deferred financing costs and unamortized discounts 1,365.8 Plus - deferred financing costs 4.2 Plus - unamortized discounts 2.8 Total Debt (Principal Only) $1,372.7 Cash and cash equivale
Slide 121: Reconciliation of Operating Income (Loss) to Adjusted EBITDA by Segment
Reconciliation of Operating Income (Loss) to Adjusted EBITDA by Segment Southern Pacific Northwest New Zealand Timber Corporate ($ in millions) Timber Timber Timber Funds Real Estate Trading and Other Total 2023 Operating income (loss) $76.3 ($9.0) $26.0 — $156.6 $0.5 ($39.1) $211.3 1 Timber write-o
Slide 122: Reconciliation of Operating Income (Loss) to Adjusted EBITDA by Segment (Cont'd)
Reconciliation of Operating Income (Loss) to Adjusted EBITDA by Segment (Cont’d) Pacific Southern Northwest New Zealand Timber Corporate ($ in millions) Timber Timber Timber Funds Real Estate Trading and Other Total 2020 Operating income (loss) $41.3 ($10.0) $30.0 ($13.2) $72.0 ($0.5) ($45.2) $74.4
Slide 123: Reconciliation of Operating Income (Loss) to Adjusted EBITDA by Segment (Cont'd)
Reconciliation of Operating Income (Loss) to Adjusted EBITDA by Segment (Cont’d) Pacific Southern Northwest New Zealand Timber Corporate ($ in millions) Timber Timber Timber Funds Real Estate Trading and Other Total 2016 Operating income (loss) $43.1 ($4.0) $33.0 — $202.4 $2.0 ($20.8) $255.8 Depreci
Slide 124: Reconciliation of Cash Provided by Operating Activities to Cash Available for Distribution
Reconciliation of Cash Provided by Operating Activities to Cash Available for Distribution ($ in millions) 2015 2016 2017 2018 2019 2020 2021 2022 2023 Cash provided by operating activities $177.2 $203.8 $256.3 $310.1 $214.3 $204.2 $325.1 $269.2 $298.4 Working capital and other balance sheet changes
Slide 125: Enterprise Value to Adjusted EBITDA Multiple Calculations
Enterprise Value to Adjusted EBITDA Multiple Calculations NCREIF NCREIF NCREIF NCREIF Appraisal Appraisal ($ in millions, except per share and per acre amounts) Rayonier U.S. South U.S. South U.S. PNW U.S. PNW New Zealand New Zealand 2023 2023 2023 Actual EBITDA 5-Yr Average EBITDA 5-Yr Average 2023
Slide 126: Speaker Bios
Speaker Bios RYN 2024 INVESTOR DAY | 126
Slide 127: Dave Nunes
Dave Nunes CEO Dave has more than three decades of timber industry experience, and today serves as Chief Executive Officer. Dave joined Rayonier in June 2014 as Chief Operating Officer, and shortly thereafter assumed the additional role of President and CEO following Rayonier’s spin-off of its Perfo
Slide 128: Mark McHugh
Mark McHugh President and CFO; Incoming CEO Mark was appointed President and Chief Financial Officer in January 2023, having previously served as Senior Vice President and Chief Financial Officer since joining Rayonier in December 2014. Mark has over 20 years of experience in finance and capital mar
Slide 129: Doug Long
Doug Long EVP, Chief Resource Officer Doug was appointed EVP and Chief Resource Officer in January 2023. In this position, Doug oversees Rayonier’s global forestry operations, as well as emerging business opportunities associated with nature-based solutions. Doug joined Rayonier in 1995 as a GIS For
Slide 130: Chris Corr
Chris Corr SVP, Real Estate Development, and President of Raydient Chris is a veteran real estate executive with more than three decades of experience in mixed-use, master planned community development. Chris joined Rayonier in July of 2013 as Senior Vice President, Real Estate Development and Presi
Slide 131: Rhett Rogers
Rhett Rogers SVP, Portfolio Management Rhett was appointed SVP, Portfolio Management in March 2023, having previously served as Vice President, Portfolio Management since February 2017. In this position, he oversees Rayonier’s land acquisition and disposition activities, rural and HBU land sales, an
Slide 132: April Tice
April Tice VP, Chief Accounting Officer; Incoming CFO April Tice was appointed Vice President and Chief Accounting Officer in April 2021, having previously served as Vice President, Financial Services and Corporate Controller. April joined Rayonier in 2010 and has held multiple positions of increasi