21 slides from Rayonier Inc. Reit's earnings presentation, Apr 30, 2024
Slide 1: Q1 2024 Earnings
Q1 2024 EARNINGS April 30, 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 Q1 2024
KEY HIGHLIGHTS Q1 2024 STRATEGY PERFORMANCE CAPITAL ALLOCATION Leverage to lumber prices Total Adjusted EBITDDA 1 Return of cash • Mills & indexed Idaho logs • $29.7MM • $143MM annual dividend run rate • Strategy aligned with fundamentals • 13.0% margin • Dividend yield of 3.8% 3 • Provides discreti
Slide 4: Consolidated Results
Q1 2024 Total Adjusted EBITDDA of $29.7 million reflects fewer rural and C O N S O L I D AT E D development real estate sales partially offset by higher lumber prices. R E S U LT S Total Adjusted EBITDDA – Q4 2023 to Q1 2024 Variance Key Consolidated Highlights: Total Adjusted EBITDDA decreased $11.
Slide 5: Timberlands Results
Q1 2024 Timberlands Adjusted EBITDDA of $34.7 million reflects lower T I M B E R L A N D S R E S U LT S logging, hauling, and forest management costs partially offset by lower Northern sawlog prices. Timberlands Adjusted EBITDDA – Q4 2023 to Q1 2024 Variance Key Timberlands Highlights: Timberlands A
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 $50 Volume: Tons (thousands) Volume: Tons (thousands) $200 400 327 $40 Price: $ / Ton Price $ / Ton $150 300 $35 $30 $100 $103 200 $20 2 $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 655 $35 700 700 $50 $30 $31 600 $48 600 Volume: Tons (thousands) 505 Volume: Tons (thousands) $40 500 $25 500 Price: $ / Ton Price $ / Ton 400 $20 400 $30 300 $15 300 $20 200 $1
Slide 8: Wood Products Results
Wood Products Adjusted EBITDDA in Q1 2024 increased primarily due to higher WOOD PRODUCTS lumber prices and lower manufacturing costs. Lumber shipments of 271 MMBF R E S U LT S marks the Company’s second-largest Q1 shipment volume on record. Wood Products Adjusted EBITDDA – Q4 2023 to Q1 2024 Varian
Slide 9: Wood Products
WOOD PRODUCTS R E S U LT S Lumber Pricing and Shipments Wood Products Adjusted EBITDDA ($ in millions) $1,200 400 350 $190 $1,000 271 300 Shipments (MMBF) Price: $/ MBF $800 $140 250 $600 200 $90 $400 $430 150 100 $200 $40 50 $(0.1) $- 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 $(10) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 20
Slide 10: Real Estate Results
Real Estate Adjusted EBITDDA decreased in Q1 2024 primarily due to fewer rural land sales and no commercial sales in Chenal Valley. We expect to close on the R E A L E S TAT E R E S U LT S sale of 34,000 acres of rural timberland in the South in Q2 2024 for approximately $58 million. Real Estate Adj
Slide 11: Real Estate
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 $119,750 $4,500 $120,000 Average Price: $ / Acre Average Price: $ / Lot Residential Lots Sold $3,750 $100,000 Acres Sold $3,000 $3,069 $80,000 $2,250 $60,000 $40,000 24 $1,500 1,
Slide 12: Favorable Capital Structure
Our strong balance sheet and $479 million of liquidity provide a solid platform to FAV O R A B L E C A P I TA L capitalize on market opportunities as they arise that we believe will continue to STRUCTURE grow shareholder value over the long-term. Debt Maturities $200 $190 $185 $176 $150 $139 $ MILLI
Slide 13: Outlook
We anticipate Q2 2024 Total Adjusted EBITDDA will be higher than Q1 2024 primarily OUTLOOK due to more rural land sale activity, including the announced sale of ~34,000 acres in the South for ~$58 million. TIMBERLANDS Q2 2024 FY 2024 Harvest Volume 1.7 – 1.8 million tons ~7.6 million tons Geographic
Slide 14: Appendix
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Slide 15: Total Company Summary
TOTAL COMPANY SUMMARY in millions except per-share amounts – unaudited 2023 2024 Q1 Q2 Q3 Q4 TOTAL Q1 Operating income (loss): Timberlands $ 26.2 $ 13.4 $ 22.9 $ 13.9 $ 76.4 $ 17.1 Wood Products (11.1) 1.1 4.2 (17.7) (23.5) (12.7) Real Estate 8.7 7.2 7.9 12.0 35.8 2.0 Corporate (10.8) (10.7) (11.8)
Slide 16: Operating Segment Adjusted EBITDDA
OPERATING SEGMENT Non–GAAP Reconciliation ADJUSTED EBITDDA in millions – unaudited 2023 2024 Q1 Q2 Q3 Q4 TOTAL Q1 Timberlands Northern Timberlands operating income $ 17.2 $ 8.7 $ 15.7 $ 8.3 $ 49.9 $ 9.3 Depreciation, depletion and amortization 2.2 1.9 1.9 1.8 7.8 1.8 Northern Timberlands Adjusted EB
Slide 17: Total Adjusted EBITDDA & CAD
TOTAL ADJUSTED Non–GAAP Reconciliation EBITDDA & CAD in millions – unaudited 2023 2024 Q1 Q2 Q3 Q4 TOTAL Q1 Total Adjusted EBITDDA Net income (loss) (GAAP) $ 16.3 $ 22.3 $ 23.6 $ (0.1) $ 62.1 $ (0.3) Interest expense, net 0.2 7.6 8.0 8.4 24.2 (0.3) Income taxes (3.5) 6.4 4.8 (7.9) (0.2) (4.1) Deprec
Slide 18: Statistics: Timberlands
STATISTICS: TIMBERLANDS unaudited 2023 2024 Q1 Q2 Q3 Q4 TOTAL Q1 Timberlands Fee Volumes (tons) Northern Region Sawlog 470,790 319,173 376,607 328,574 1,495,144 327,423 Pulpwood 8,029 7,989 7,081 3,703 26,802 1,863 Total 478,819 327,162 383,688 332,277 1,521,946 329,286 Southern Region Sawlog 661,58
Slide 19: Statistics: Wood Products and Real Estate
STATISTICS: WOOD PRODUCTS unaudited AND REAL ESTATE 2023 2024 Q1 Q2 Q3 Q4 TOTAL Q1 Wood Products Lumber shipments (MBF) 261,633 280,251 276,071 285,134 1,103,089 271,148 Lumber sales prices ($ per MBF) $ 435 $ 476 $ 481 $ 415 $ 452 $ 430 Real Estate Rural Revenues (millions) $ 17.8 $ 4.6 $ 11.6 $ 20
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: Q1 2024 Earnings
Q1 2024 WAYNE WASECHEK EARNINGS Vice President and Chief Financial Officer April 30, 2024 509-835-1521 PotlatchDeltic (Nasdaq: PCH) www.PotlatchDeltic.com