12 slides from Rayonier Inc. Reit's merger presentation, May 2, 2016
Slide 1: Pacific Northwest Portfolio Repositioning: Acquisition / Disposition / Financing
Pacific Northwest Portfolio Repositioning: Acquisition / Disposition / Financing Supplemental Materials | May 2016
Slide 2: Safe Harbor Statement
Safe Harbor Statement 1 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, including expected harvest schedules, timberland a
Slide 3: Overview of Transactions
Overview of Transactions 2 Menasha Acquisition Rayonier teamed with Forest Investment Associates (“FIA”) to acquire Menasha Forest Products Corporation (“Menasha”), a privately held timberland REIT, from Campbell Global Menasha owns ~132,000 acres of high quality timberlands in Oregon and Washin
Slide 4: Menasha acquisition is a strong fit with key acquisition criteria
3 Location Asset Quality Optionality Value Creation Financial Profile Located in competitive log markets with favorable supply / demand tension Increases exposure to strong domestic markets in Pacific Northwest Complements RYN’s age-class distribution, improves sustainable yield (1) Signific
Slide 5: Pro Forma Pacific Northwest Ownership Map
Pro Forma Pacific Northwest Ownership Map 4 The Menasha acquisition significantly expands Rayonier’s footprint in attractive log markets in Oregon and Washington. Washington Oregon
Slide 6: Pro Forma Pacific Northwest Age Class Profile
Pro Forma Pacific Northwest Age Class Profile 5 Pro forma for the Menasha acquisition and the Washington disposition, Rayonier’s Pacific Northwest age-class profile will be significantly improved and more evenly distributed. (1) Excludes non-operable and non-commercial acres. - 10,000 20,000 30,000
Slide 7: Net Change in Operable Acres by Age Class
Net Change in Operable Acres by Age Class 6 The Menasha acquisition increases Rayonier’s volume of mature, merchantable timber, while the Washington disposition reduces its volume of pre-merchantable timber. (1) Excludes non-operable and non-commercial acres. (12,000) (10,000) (8,000) (6,000) (4,000
Slide 8: Pro Forma Pacific Northwest Harvest Profile
Pro Forma Pacific Northwest Harvest Profile 7 Sustainable Yield (1) – Legacy to Pro Forma Bridge 5-Year Avg. Harvest – Legacy to Pro Forma Bridge (1) “Sustainable yield” is defined in the Company’s latest report on Form 10-K. The acquisition of well-stocked, productive timberland coupled with the di
Slide 9: Comparison of Key Metrics
Comparison of Key Metrics 8 Productivity (1) Merchantable Inventory per Gross Acre Merchantable Inventory – % Douglas-fir % Productive Acreage (board feet per acre per year) (operable acres / total acres) (MBF per gross acre) (merchantable inventory % Douglas-fir) The combination of the Menasha acqu
Slide 10: Sources & Uses / Pro Forma Capitalization
Sources & Uses / Pro Forma Capitalization 9 Pro forma for the transactions, Rayonier will maintain a strong credit profile. ($ in millions) Sources Uses New Term Loan $300.0 Menasha Acquisition $263.3 Washington Disposition 129.5 Repay Revolving Credit Facility 105.0 Transaction Costs & Transfer Tax
Slide 11: Pro Forma Debt Structure & Maturity Profile
10 Pro Forma Debt Structure & Maturity Profile Pro Forma Debt Profile ($ in millions) Pro Forma Maturity Profile ($ in millions) Highlights Average interest rate of 3.2% 88% fixed rate debt Average maturity of nearly 8 years Highlights Well staggered maturity profile Nearest significant ma
Slide 12: Pacific Northwest Portfolio Repositioning – Key Takeaways
Pacific Northwest Portfolio Repositioning – Key Takeaways 11 Transactions achieve many of Rayonier’s key objectives: Upgrades asset quality Accretive to cash available for distribution (CAD)(1) Increases Adjusted EBITDA(1) / cash flow from sustainable harvesting activities Demonstrates capit