Rayonier Inc. Reit · NYSE:RYN
Rayonier Inc. Reit — PotlatchDeltic — Q1 2023 Earnings Presentation
21 slides from Rayonier Inc. Reit's earnings presentation, Apr 25, 2023
Slide 1: Q1 2023 Earnings
EARNINGS April 25, 2023 Q1 2023 y SL ol @ [om 7a ome [=) Ss 3S oS o a
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 Q1 2023
KEY HIGHLIGHTS Q1 2023 STRATEGY A, Leverage to lumber prices + Mills & indexed Idaho logs * Strategy aligned with fundamentals + Provides discretionary capital A. Timberlands provide stability + >80% of gross asset value + Sustainable management benefits society + Supports sustainable, growing divid
Slide 4: Consolidated Results
Q1 Total Adjusted EBITDDA of $57.7 million reflects declines in lumber and indexed sawlog prices, more than offset by strong rural real estate land sales and higher harvest volumes. CONSOLIDATED RESULTS Total Adjusted EBITDDA — Q4 2022 to Q1 2023 Variance $2.4 $12.3 a [see | $57.7 $52.3 $(2.9) a o $
Slide 5: Timberlands Results: Adjusted EBITDDA of $46.6 million
Q1 2023 Timberlands Adjusted EBITDDA of $46.6 million reflects lower indexed Idaho sawlog prices, partially offset by our highest quarterly harvest volumes on TIMBERLANDS RESULTS sé record. Timberlands Adjusted EBITDDA — Q4 2022 to Q1 2023 Variance $4.7 $50.6 pT ‘s am Es $(11.2) $ MILLIONS Q4 2022 H
Slide 6: Timberlands Results: Northern Region
TIMBERLANDS RESULTS NORTHERN REGION Northern Sawlog Pricing and Volume Northern Pulpwood Pricing and Volume $300 471500 $60 16 $250 an $50 $014 g 8 12 § s 8 s 5 $200 ain fl 5 $40 3 0 g © $150 2 ® $30 8 @ 8 200 2 8 2 = $100 3 8 E $20 C 3 100 2 t) Og $50 s $ 2 3 CR Ob Oo A Pe Q1_Q2 Q3 G4 Qi Q2 Q3 Qs a
Slide 7: Timberlands Results: Southern Region
TIMBERLANDS RESULTS SOUTHERN REGION Southern Sawlog Pricing and Volume 662 700 $50 as {$48 600 z 5 $40 500 3 = $30 400 = 2 2 $20 ig 200 8 $10 100 3 ai a2 0 Q4 Qi @ a3 a4 ai Southern Pulpwood Pricing and Volume $35 $33 700 3m —ooo ee 600 492 5 ~ $25 500 § 5 = $20 400 & s 2 g $15 300 5 * $10 20 2 5 $5
Slide 8: Wood Products Results
Wood Products Adjusted EBITDDA in Q1 2023 was breakeven as lower costs WOOD PRODUCTS were more than offset by lower lumber prices. RESULTS Wood Products Adjusted EBITDDA — Q4 2022 to Q1 2023 Variance $2.4 a [| $3.2 s z= 9 pa | = $2.1 “ | | oy 042022 Price Manufacturing Cost Log Cost Volume Residuals
Slide 9: Wood Products Results: Pricing and Shipments
WOOD PRODUCTS RESULTS Lumber Pricing and Shipments Wood Products Adjusted EBITDDA ($ in millions) $1,200 400 $200 $1,000 350 262 300 $150 UER 250 $600 200 $100 $400 $435 150 $200 100 $50 50 | | —— Qi Q2 Qi Q2 ix} a4 Qi Qg2 @ GQ ai Q2 G3 OF Wt Qh 2021 2022 2023 2021 2022 2023 Price: $/ MBF Shipments
Slide 10: Real Estate Results
Real Estate Adjusted EBITDDA increased to $19.5 million in Q1 2023 on REAL ESTATE RESULTS higher rural land sales partially offset by no Chenal Valley commercial land sales. Real Estate Adjusted EBITDDA - Q4 2022 to Q1 2023 Variance $14.6 a — $19.5 8(1.8) $(0.5) (ep) = e) a | =! = An Q4 2022 Rural S
Slide 11: Real Estate Results: Acres and Lots Sold
REAL ESTATE RESULTS Rural Acres Sold and Average Price Residential Lots Sold and Average Price $4,500 15,000 $140,000 100 ee $120,000 90 pean “ El 100000 si6420 = $3,000 $2,56810,000 = Ot one % $2,500 area e % $80,000 0 § 2 1/00 = 0 3 ee 3 al SEMEL 0 5 <x # $1,500 5,000 5 $40,000 4 3 # z $1,000 2.50
Slide 12: Favorable Capital Structure
FAVORABLE CAPITAL STRUCTURE Our strong balance sheet and ample liquidity provide a solid platform to continue to grow shareholder value over the long term. Debt Maturities $190 $200 $176 $185 n $139 4 $150 ° $100 $100 = $100 = - 40 40 40 n $50 $ $28 if $ $ . i S Ze 2023 2024 2025 2026 2027 2028 2029
Slide 13: Outlook
We anticipate our 2023 Total Adjusted EBITDDA to be significantly lower OUTLOOK than 2022 stemming from higher interest rates and their expected impact on housing starts. TIMBERLANDS Q2 2023 FY 2023 Harvest Volume ~1.6 million tons ~7.7 million tons Geographic harvest ~82% of volume in South ~80% of
Slide 14: Appendix
APPENDIX Q1 2023 _ APottatenDeltic.
Slide 15: Total Company Summary
TOTAL COMPANY SUMMARY in millions except per-share amounts — unaudited 2022 2023 Qi Q2 Q3 Q4 TOTAL Qi Operating income (loss): Timberlands $ 64.2 $ 46.4 §$ 475 $ 31.7 $ 189.8 $ 26.2 Wood Products 143.1 99.0 21.2 (8.4) 254.9 (11.1) Real Estate 19.0 14.4 re a 426 87 Corporate (9.7) (14.1) (12.7) (13.2
Slide 16: Operating Segment Adjusted EBITDDA
OPERATING SEGMENT ADJUSTED EBITDDA Non — GAAP Reconciliation in millions — unaudited Timberlands Northern Timberlands operating income Depreciation, depleton and amortization Northern Timberlands Adjusted EBITDDA Southern Timberlands operating income Depreciation, depleton and amortization Southern
Slide 17: Total Adjusted EBITDDA & CAD
TOTAL ADJUSTED Non — GAAP Reconciliation EBITDDA & CAD in millions — unaudited 2022 2023 ai Q2 Q3 Qa TOTAL Qi Total Adjusted EBITDDA Net Income (GAAP) $ 163.9 $ 120.2 $ 46.0 $ 3.8 $ 333.9 $ 16.3 Interest expense, net 25 74 8.3 8.8 27.4 0.2 Income taxes 32.1 28.2 9.8 (4.7) 65.4 (3.5) Depreciation, de
Slide 18: Statistics: Timberlands
STATISTICS: TIMBERLANDS unaudited 2022 2023 Qi Q2 Q3 Q4 TOTAL Qi Timberlands Fee Volumes (tons) Northern Region Sawlog 385,290 276,347 459,128 455,993 1,576,758 470,790 Pulpwood ——— 8259___11.383___ 11,197 ___99043._ 39882 8,029. Total 393,549 287,730 470,325 465,036 1,616,640 478,819 Southern Regio
Slide 19: Statistics: Wood Products and Real Estate
STATISTICS: WOOD PRODUCTS unaudited AND REAL ESTATE 2022 2023 ai Q2 Q3 Q4 TOTAL Qi Wood Products Lumber shipments (MBF) 233,188 254,225 264,748 257,587 1,009,748 261,633 Lumber sales prices ($perMBF) $ 1,075 $ 865 $ 572 $ 473 $ 737 $ 435 Real Estate Rural Revenues (millions) $ 216 §$ 164 §$ 62 $ 3.8
Slide 20: Definitions
DEFINITIONS 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 charge, ot
Slide 21: Earnings
Q1 2023 EARNINGS Interim Vice President, Chief Financial Officer and Chief Accounting Officer April 25, 2023, 509-835-1521 PotlatchDeltic. (Nasdaq: