Rayonier Inc. Reit · NYSE:RYN

Rayonier Inc. Reit — Rayonier — Investor Day (November 2016)

118 slides from Rayonier Inc. Reit's investor day presentation, Nov 9, 2016

1. Slide 1: Investor Day | November 2016

   Investor Day | November 2016 Investor Day | November 2016

2. Slide 2: Safe Harbor Statement

   Investor Day | November 2016 Safe Harbor Statement 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 strate

3. Slide 3: Today's Presenters and Agenda

   Investor Day | November 2016 Today’s Presenters and Agenda Opening Remarks Dave Nunes | President & Chief Executive Officer New Zealand Timberlands Paul Nicholls | Managing Director, Rayonier NZ Southern & Pacific Northwest Doug Long | Senior Vice President, U.S. Operations Value Maximization on Lan

4. Slide 4: Opening Remarks

   Investor Day | November 2016 Opening Remarks Dave Nunes | President & Chief Executive Officer 3

5. Slide 5: Rayonier – Best-in-Class, Pure-Play Timber REIT

   Investor Day | November 2016 Rayonier – Best-in-Class, Pure-Play Timber REIT  Second-largest timber REIT with 2.7 million acres of high-quality timberland  Geographic diversity – U.S. South, Pacific Northwest, New Zealand  Timberlands strategically positioned in competitive fiber baskets  Focus

6. Slide 6: Highly Productive, Geographically Diversified Timberlands

   Investor Day | November 2016 Highly Productive, Geographically Diversified Timberlands 5 436 Total Rayonier = 2.7 million acres 188 92 15 146 89 324 656 374 317 62 Pacific Northwest U.S. South New Zealand 379,000 acres – Washington & Oregon; access to export markets 1.9 million acres – sawlog and pu

7. Slide 7: Leading Pure-Play Timberland REIT

   Investor Day | November 2016 Note: Timberland REIT Peer Group comprised of WY (legacy), PCL (legacy), PCH and CTT. Figures reflect aggregate Timberland REIT Peer Group 2013-2015 EBITDA excluding corporate expenses. Other includes real estate, manufacturing and other reported segments. WY (legacy) ex

8. Slide 8: The Rayonier Roadmap to Success

   Investor Day | November 2016 The Rayonier Roadmap to Success 7 As Rayonier nears the century mark, we are excited about our focused long-term strategy which, coupled with our strong culture, will chart the path to achieving our vision.  Preferred timberland investment vehicle for institutional inve

9. Slide 9: Rayonier's Strategic Priorities

   Investor Day | November 2016 Rayonier’s Strategic Priorities 8 Rayonier’s goal is to provide an attractive, growing dividend funded from core, recurring cash flows in a tax-efficient REIT structure. Manage for Long-Term Value Acquire High-Quality Timberlands Optimize Portfolio Value Focus on Quality

10. Slide 10: Our Culture Drives Long-term Shareholder Value Creation

    Investor Day | November 2016 Our Culture Drives Long-term Shareholder Value Creation Safety is our top priority and we continuously look for ways to operate safer 9 Safety First Our people are the foundation of our success. Push decisions down deeper into the organization and encourage employees to

11. Slide 11: Nimble Approach to Capital Allocation

    Investor Day | November 2016 Nimble Approach to Capital Allocation 10  Acquired over $500 million of timberlands since spin-off  Acquisitions complementary to age-class profile  Improved portfolio site index and inventory stocking  ~$34 million invested annually in silviculture and regeneration

12. Slide 12: Significant Milestones Since the Spin-Off

    Investor Day | November 2016 Significant Milestones Since the Spin-Off 11 We have made considerable progress in shaping our culture and pursuing strategic initiatives that further the progress towards achieving our vision. Culture  New senior leadership team and Board of Directors  Revamped incent

13. Slide 13: Improving Supply / Demand Dynamics on Horizon

    Investor Day | November 2016 Improving Supply / Demand Dynamics on Horizon  U.S. housing starts continue modest recovery following recession  Recovery led by multi- family starts, which use one-third the lumber of single-family starts  Shortage of labor and finished lots slowing the rate of recov

14. Slide 14: Residential Construction Improving, But Still Long Way to Go

    Investor Day | November 2016 – 2.5 5.0 7.5 10.0 12.5 – 500 1,000 1,500 2,000 2,500 Starts per 1,000 of Populati onAn nu al Ho usin g S tar ts (00 0s ) Single-Family Multi-Family Starts per 1,000 of Population Residential Construction Improving, But Still Long Way to Go 13 Historical Annual Housing S

15. Slide 15: Lumber Margins Have Recovered, Timber Poised To Follow

    Investor Day | November 2016 Lumber Margins Have Recovered, Timber Poised To Follow 14 U.S. South Sawmill Variable Costs / Margin vs. Lumber & Sawtimber Prices While sawtimber prices have been relatively stagnant over the last year, increases in sawmill margins should accrue to timber suppliers over

16. Slide 16: Following SLA Expiration, Canadian Imports Have Surged

    Investor Day | November 2016 Following SLA Expiration, Canadian Imports Have Surged 15 Major Sources of U.S. Lumber Supply Increased housing starts and corresponding increases in U.S. lumber consumption have largely been offset by increased imports from Canada following the SLA expiration. Source: W

17. Slide 17: Availability of Viable B.C. Timber Is Expected to Decline Rapidly

    Investor Day | November 2016 – 200 400 600 800 1,000 1,200 1,400 1,600 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Live <8 yrs 9-10 yrs 11-12 yrs >12 yrs Availability of Viable B.C. Timber Is Expected to Decline Rapidly 16 Inventory o

18. Slide 18: Log and Lumber Export Volume Has Surged

    Investor Day | November 2016 – 50 100 150 200 250 300 350 400 450 500 – 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 Hou s in g St a rt Eq u iv a le nt s (0 0 0 s ) B B F (L u m b e r) Rest of World China Housing Start Equivalents – 50 100 150 200 250 300 350 400 450 500 – 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.

19. Slide 19: Review of Agenda for Investor Day

    Investor Day | November 2016 Review of Agenda for Investor Day  Overview of New Zealand JV  Overview of Southern and Pacific Northwest timberlands  Panel discussion on how we maximize value on our land base  Applying advanced R&D to our land base  Utilizing market intelligence  Role of land re

20. Slide 20: New Zealand Timberlands

    Investor Day | November 2016 New Zealand Timberlands Paul Nicholls | Managing Director, Rayonier New Zealand 19

21. Slide 21: New Zealand Timber – Segment Overview

    Investor Day | November 2016 New Zealand Timber – Segment Overview 20 Map of Properties Rayonier’s ~77%-owned joint venture in New Zealand provides geographic, species and market diversification. Note: New Zealand Timber was consolidated on April 4, 2013 when we acquired a majority interest in the N

22. Slide 22: Rayonier Matariki Forests (RMF) – Key Facts

    Investor Day | November 2016 Rayonier Matariki Forests (RMF) – Key Facts 21  RMF is a JV between Rayonier & Phaunos Timber Fund; 77% Rayonier ownership  436,000 gross acres; 299,000 planted acres  3rd largest forest owner in NZ with 7% of plantation resource  90 staff, 6 locations; leadership te

23. Slide 23: Diversified Mix of Domestic & Export Markets

    Investor Day | November 2016 Diversified Mix of Domestic & Export Markets 22 Volume by Market Destination (2016 YTD) Over 60% of RMF’s volume (including Trading volume) is sold into export markets, with China being the largest source of demand. Note: Year-to-date as of 9/30/2016. RMF Export 36% Trad

24. Slide 24: RMF Key Export Delivery Ports

    Investor Day | November 2016 RMF Key Export Delivery Ports 23 RMF ships to 16 export ports in China, Korea, India and Taiwan. 0 – 20K 20K – 40K 40K+ Scale (m3)

25. Slide 25: Inventory Levels Drive Near-Term Price Fluctuations

    Investor Day | November 2016 Inventory Levels Drive Near-Term Price Fluctuations 24 Inventory-to-Demand Ratio vs. Export Log Price Export supply / demand is generally considered in balance when the ratio of port inventory to average monthly demand is between 1.3 and 2.0 times. – $20 $40 $60 $80 $100

26. Slide 26: New Zealand Log Prices Trending Upward

    Investor Day | November 2016 New Zealand Log Prices Trending Upward 25 Historical New Zealand Log Prices (NZ$) Over the last 10 years, New Zealand log prices have been trending upward based primarily on growing export market demand. Source: NZ Ministry of Primary Industries. – $20 $40 $60 $80 $100 $

27. Slide 27: Southern and Pacific Northwest Timberlands

    Investor Day | November 2016 Southern and Pacific Northwest Timberlands Doug Long | Senior Vice President, U.S. Operations 26

28. Slide 28: Southern Timber – Segment Overview

    Investor Day | November 2016 Southern Timber – Segment Overview 27 Map of Properties Rayonier’s Southern Timber segment has nearly doubled its Adjusted EBITDA* since 2011, driven by acquisitions and price gains in key markets. (1) Site index reflects the average height of the dominant and codominant

29. Slide 29: Pacific Northwest Timber – Segment Overview

    Investor Day | November 2016 Pacific Northwest Timber – Segment Overview 28 Map of Properties Following the recently-announced portfolio repositioning, Rayonier expects to harvest roughly 1.3 million tons in the Pacific Northwest over the next five years. (1) Site index reflects the average height o

30. Slide 30: U.S. Forest Resources

    Investor Day | November 2016 U. S. Forest Resources 29 Resource Units Business Development Land Information Services Research & Silviculture Support U.S. Forest Resources USFR  6 Resource Units across 10 states  79 employees oversee 2.3mm acres  6 Resource Unit Leaders – combined 98 years with Ra

31. Slide 31: Resource Unit Coverage Map

    Investor Day | November 2016 Resource Unit Coverage Map 30Note: Total acreage as of Q3 2016; does not reflect recently announced divestiture of 62,100 acres in Alabama and Mississippi.

32. Slide 32: Flexible Resource Management Structure to Unlock Value

    Investor Day | November 2016 Flexible Resource Management Structure to Unlock Value 31 “One Rayonier” Leadership Land Management Forest Protection Data Collection Timber Marketing Real Estate Land Resources

33. Slide 33: Local Markets Require Customized Solutions

    Investor Day | November 2016 Local Markets Require Customized Solutions 32 Flexible Structure to Meet Local Needs Resource Unit objectives and strategies are tailored to meet local stakeholder needs. Overlapping Sourcing Zones = Optionality Scale Customer Mix Species ProductsCompetitors Harvest Volu

34. Slide 34: What Makes Rayonier Different?

    Investor Day | November 2016 What Makes Rayonier Different? 33 Leadership Style Decision making at all levels Strategic Priorities Long-term focus “One Rayonier” Culture Breaking down silos

35. Slide 35: Value Maximization on Land Base

    Investor Day | November 2016 Value Maximization on Land Base Jim Gent | Director, Research & Silviculture Vernon Hiott | Manager, Business Development Jeff Lawrence | Director, Real Estate & Land Resources 34

36. Slide 36: Research & Silviculture

    Investor Day | November 2016 35 Jim Gent Research & Silviculture Jim Gent | Director, Research & Silviculture

37. Slide 37: Productivity is a Key Driver of Timberland Value

    Investor Day | November 2016 (tons per acre per year) Productivity is a Key Driver of Timberland Value Rayonier Loblolly Pine Site Index25 (feet) Higher site index properties generate greater harvest yields and a more valuable product mix. Rayonier’s site index has been steadily improving with each

38. Slide 38: Multiple Opportunities to Enhance Productivity

    Investor Day | November 2016 Multiple Opportunities to Enhance Productivity 37 Site-specific prescriptions supported by guidelines grounded in science and financial analysis. Post-thin Release Year 12-17 Thinning Ages 10-15 Juvenile Fertilization Ages 3-6 At-Establishment Fertilization Year 1 Harves

39. Slide 39: Response to Silvicultural Treatments is Site Specific

    Investor Day | November 2016 Poorly Drained Soil Dry Sandhill Soil Response to Silvicultural Treatments is Site Specific 38 Large Variation in Soils Across Landscape Soil type impacts silviculture prescription.

40. Slide 40: Site Preparation – Bedding on Poorly Drained Soils

    Investor Day | November 2016 $0 $50 $100 $150 $200 $250 $300 $350 $400 0 2 4 6 8 10 12 A B1 B2 C D V alue G ain ($/ a c )Heig h t G ain ( ft ) Soil Group Height NPV Site Preparation – Bedding on Poorly Drained Soils 39 Incremental Value / Height from Bedding Value gain from bedding varies significan

41. Slide 41: Tree Selection – Genetic Resources

    Investor Day | November 2016 Tree Selection – Genetic Resources 40 Optimized deployment of controlled pollination planting with strong focus on internal genetic breeding and testing. Controlled Pollination 34% Open Pollination 66% Rayonier Southern Pine Planted since 2012 • Wind-blown pollen source

42. Slide 42: Optimum Harvest Regime – Loblolly Pine Thinning

    Investor Day | November 2016 Optimum Harvest Regime – Loblolly Pine Thinning 41 Incremental Value from Thinning Driven by Site Index and Market Factors(1) Rayonier only thins stands where positive value can be achieved. Ultimate thinning decisions based on site index and market-specific factors. (1)

43. Slide 43: Sharp Focus on Maximizing Financial Returns

    Investor Day | November 2016 Sharp Focus on Maximizing Financial Returns  Complete competition control  Frequent fertilization treatments 42 Maximize Growth Rate Site-specific prescriptions are made on the ground with a focus on maximizing the financial return from invested silvicultural capital.

44. Slide 44: Market Intelligence

    Investor Day | November 2016 43 Jim Gent Market Intelligence Vernon Hiott | Manager, Business Development

45. Slide 45: Business Development Focus Areas

    Investor Day | November 2016 Business Development Focus Areas  Economic analysis and reporting  Timber supply and demand modeling  Performance benchmarking  Understand market opportunities, potential solutions and customers, partners  Develop relationships and plans for supporting new demand pr

46. Slide 46: Market Intelligence Relevant Topics

    Investor Day | November 2016 Market Intelligence Relevant Topics 45 BC Mountain Pine Beetle Eastern Canada AAC Russian Log Supply US Sawlog Inventories Offshore Demand US Housing Recovery Containerboard Production Levels Bioenergy Market Sustainability

47. Slide 47: Consumption & Price Changes Vary Across the South

    Investor Day | November 2016 Change in Consumption by Region: 2005-2014  Recession-induced demand declines have led to large drops in consumption for most areas in the South  As a result, timber product prices have fallen with few exceptions  Differences in consumption declines have caused region

48. Slide 48: Total Inventory has Grown Significantly

    Investor Day | November 2016 Change in Total Inventory by Region: 2005-2014  Since 2005, many regions have gained inventory beyond levels experienced historically  Inventory growth in these areas will take years to slow and will require new outlets for timber products  Timberland portfolio perfor

49. Slide 49: Inventory Growth is Predominantly in Grade

    Investor Day | November 2016 Change in Pulpwood Inventory by Region: 2005-2014  Pulpwood markets have generally remained stable or strengthened since 2005 driven by strong end- product demand and lower levels of sawmill residuals  Grade volume is being stored on the stump in anticipation of strong

50. Slide 50: U.S. South Timber Supply / Demand Dynamics

    Investor Day | November 2016 U.S. South Timber Supply / Demand Dynamics 49 Change in Inventory, Demand & Price As a whole, timber demand and pricing in the U.S. South have generally moved together while inventory has built to more than 20% above the level seen in 2000. Source: Timber Mart-South; USD

51. Slide 51: Regional Market Price Trends Vary Significantly

    Investor Day | November 2016 Regional Market Price Trends Vary Significantly 50 Timber Mart-South 3Q2016 Composite Stumpage Price by Region While timber demand and pricing has generally declined across the South, regional market supply, demand and pricing trends vary significantly. Source: Timber Ma

52. Slide 52: Regional Market Example: Northeast Florida

    Investor Day | November 2016 Regional Market Example: Northeast Florida 51 Change in Inventory, Demand & Price In contrast to the broader U.S. South, the Northeast Florida market (FL-1) has lost inventory and experienced significant price gains. Source: Timber Mart-South; USDA FIA data; University o

53. Slide 53: Regional Market Example: Northern Mississippi

    Investor Day | November 2016 Regional Market Example: Northern Mississippi 52 Change in Inventory, Demand & Price Northern Mississippi (MS-1) has seen inventory building since 2000 in excess of the U.S. South average. Modest improvements in demand have not led to improved timber pricing. Source: Tim

54. Slide 54: Key Implications of Understanding Regional Markets

    Investor Day | November 2016 Key Implications of Understanding Regional Markets  Markets will not perform in the same way across the South  Timber and timberland returns will vary significantly among these regional markets  Investment decisions should be supported by local dynamics 53 Capital All

55. Slide 55: Land Resources

    Investor Day | November 2016 54 Jim Gent Land Resources Jeff Lawrence | Director, Real Estate & Land Resources

56. Slide 56: Land Resources – Maximizing Non-Timber Income

    Investor Day | November 2016 Land Resources – Maximizing Non-Timber Income 55 Any given acre has multiple opportunities, depending on your focus. Forest Resources  Grow & sell timber  Perpetual revenue stream  Low capex Real Estate  Create & sell HBU  Building pipeline of value & optionality 

57. Slide 57: Land Resources – Diverse Portfolio

    Investor Day | November 2016 Land Resources – Diverse Portfolio  Complementary to Timberlands  Complementary to Real Estate  Alternative use to Timberlands 56 Opportunity Type  Diversified cash flow  Multiple geographies  Different risk profiles Portfolio Approach RAYONIER LAND RECREATION NATU

58. Slide 58: Land Resources – Evolution of a Growth Culture

    Investor Day | November 2016 2012-15: Focus on Business Development 2008-11: Added Dedicated Resources Pre-2008: Ancillary to Forest Resources Today: Land Resources = Core Business  Dedicated Team  Growth Culture  Value Driven Land Resources – Evolution of a Growth Culture 57 CAGR  Revenue: 11%

59. Slide 59: Land Resources – Evolution of Strategy

    Investor Day | November 2016 Land Resources – Evolution of Strategy 58 Added Dedicated Resources Ancillary to Forest Resources Land Resources as Core Business: Refined Strategy  Growth (minerals)  Steady resource allocation  Foster relationships  Develop growth  Value / Growth Blend (recreation

60. Slide 60: Land Resources – Executing the Business

    Investor Day | November 2016 Land Resources – Executing the Business 59 Scale • 23,000 customers • 4,000 transactions per year Diversity • 45 businesses • 10 states Investment • Human resources • $0.10 direct cost / dollar of revenue • $0 capital invested over last five years $22.5MM Revenue or $9.9

61. Slide 61: Land Resources – Poised for the Future

    Investor Day | November 2016 Land Resources – Poised for the Future 60  Functional business leaders  Straight line from strategy to execution  Accountable Dedicated Team  Entrepreneurial & innovative  Different risk profile  Nimble Growth Culture  Asset optimization  Develop annuities  Impr

62. Slide 62: Break

    Investor Day | November 2016 BREAK 61

63. Slide 63: Portfolio Management

    Investor Day | November 2016 Portfolio Management Rhett Rogers | Director, Land Asset Management 62

64. Slide 64: Creating Value Through Active Portfolio Management

    Investor Day | November 2016 63 Never satisfied with portfolio and processes – constantly monitoring, adapting and improving to create long-term value. Creating Value Through Active Portfolio Management  Team of experts able to evaluate complex deals  Assumptions come from people closest to asset

65. Slide 65: Staged Gating Process Streamlines Decision Making

    Investor Day | November 2016 Staged Gating Process Streamlines Decision Making 64 Staged gating process gets company focused on right opportunities, ensures alignment, reduces due diligence expenses and provides for a transparent process to evaluate acquisitions. Gate A (1-2 days) Gate B (5-10 days)

66. Slide 66: Focus On High-Quality Softwood Properties

    Investor Day | November 2016 Focus On High-Quality Softwood Properties  Timber end markets with favorable supply / demand tension  Well-developed infrastructure, access to ports and other transportation hubs 65  Softwood investments in regions with strong biological growth  Complementary age-cla

67. Slide 67: Success Achieved Through Flexible Deal Sourcing

    Investor Day | November 2016 Success Achieved Through Flexible Deal Sourcing 66 Rayonier Value Acquired by Geography (2011-2016YTD) (1) (1) Value acquired includes acquisition of 39% interest in New Zealand JV for $140 million in 2013 and acquisition of 12% interest in New Zealand JV for $56 million

68. Slide 68: $1.3 Billion Acquired and $680 Million Sold Since 2011

    Investor Day | November 2016 $1.3 Billion Acquired and $680 Million Sold Since 2011 67 +102 +62 -6 +148 +69 -17 -65 -53 317 -74 +61 +4 Note: Map reflects recently announced divestiture of 62,100 acres in Alabama and Mississippi. -128 Change in Acres by Location Since January 2011 (000 Acres)

69. Slide 69: Portfolio Management Valuation Framework

    Investor Day | November 2016 Portfolio Management Valuation Framework 68 Rayonier employs a rigorous, multi-faceted valuation analysis in arriving at its bid / ask values for timberland acquisitions / dispositions. Cost Approach:  Quickest valuation methodology  Current market prices used to value

70. Slide 70: Key Drivers of Value – Illustrative Examples

    Investor Day | November 2016 Key Drivers of Value – Illustrative Examples 69 U.S. South Example – % Change in $ per Acre by Key Value Driver Timberland value per acre is significantly impacted by productivity (site index) and stumpage prices. Other major drivers of value include age-class distributi

71. Slide 71: Disciplined Acquisition Process = Improved Portfolio

    Investor Day | November 2016 Disciplined Acquisition Process = Improved Portfolio 70 Harvest Rate – Tons per Acre per Year (2) Rayonier seeks to acquire property that improves quality of portfolio and produces strong recurring cash flow from sustainable harvest. Productivity – Site Index (1) Commerc

72. Slide 72: Case Study – Menasha Acquisition & Washington Disposition

    Investor Day | November 2016 Case Study – Menasha Acquisition & Washington Disposition 71 Washington Ownership Map Rayonier enhanced its Pacific Northwest portfolio through the acquisition of approximately 61,000 acres of well-stocked, highly productive timberland in Oregon and Washington and the di

73. Slide 73: PNW Portfolio Repositioning Improves Age Class Profile

    Investor Day | November 2016 PNW Portfolio Repositioning Improves Age Class Profile 72 Pro Forma Pacific Northwest Age Class Profile As a result of the Menasha acquisition and the Washington disposition, Rayonier’s Pacific Northwest age-class profile is significantly improved and more evenly distrib

74. Slide 74: Pacific Northwest Harvest Profile

    Investor Day | November 2016 Pacific Northwest Harvest Profile 73 Sustainable Yield (1) – Legacy to Pro Forma Bridge Acquisition of well-stocked, productive timberland coupled with disposition of predominantly pre- merchantable timberland expected to increase both near-term harvest and long-term sus

75. Slide 75: Net Impact = Higher Quality Portfolio, Improved Sustainable Harvest

    Investor Day | November 2016 Net Impact = Higher Quality Portfolio, Improved Sustainable Harvest 74 Productivity The net impact of the Menasha acquisition and Washington disposition is an improved timberland portfolio with more stable cash flow from sustainable timber harvest. (1) Productivity based

76. Slide 76: Real Estate

    Investor Day | November 2016 Real Estate Chris Corr | Senior Vice President, Real Estate & Public Affairs Charles Adams | Vice President, Community Development 75

77. Slide 77: Disciplined and Focused Real Estate Strategy

    Investor Day | November 2016 Rayonier is now executing a disciplined and focused Real Estate strategy with the experience and capabilities required to create long term value. Building culture Building strategy Building capabilities Focus, disciplined execution  Ownership and empowerment  True tran

78. Slide 78: Strategic Framework: Maximize Opportunity and Create Optionality

    Investor Day | November 2016  Maximize and grow annual gross margin/ac  Build diverse portfolio of cash flows  Develop new business growth Strategic Framework: Maximize Opportunity and Create Optionality Timberlands Real Estate Sale of properties with development rights  Invest in securing devel

79. Slide 79: Making Progress and Just Getting Started: YTD Highlights

    Investor Day | November 2016 Making Progress and Just Getting Started: YTD(1) Highlights Timberlands Real Estate Land Resources Non-Strategic / Timberlands Rural Places + Properties Unimproved Development Improved Development Large Dispositions 78  3,000+ agreements closed across the U.S.  Central

80. Slide 80: Making Progress and Just Getting Started: Price Growth

    Investor Day | November 2016 $2,309 $2,675 $13,771 Non- Strategic / Timberlands Rural Development Making Progress and Just Getting Started: Price Growth 2011-14 Price per Acre Rayonier has realized stronger pricing on real estate sales since 2015. Excluding “large dispositions” Rayonier’s real estat

81. Slide 81: Disciplined, Market and Asset Focused Strategy: Four Examples

    Investor Day | November 2016 Disciplined, Market and Asset Focused Strategy: Four Examples Rural Places | 1 I-95 Coastal Corridor | 2 Unimproved Development | 3 Wildlight | 4 80

82. Slide 82: Rural: Distinct Properties for Residential and Recreation

    Investor Day | November 2016 Rural: Distinct Properties for Residential and Recreation Create a sustainable pipeline of market-ready properties across multiple markets and return an HBU premium by selling market-targeted, enhanced parcels to end users. YTD 10/31/2016 Houston Lake Charles Jacksonvill

83. Slide 83: I-95 Coastal Corridor: Unlocking HBU Value

    Investor Day | November 2016 I-95 Coastal Corridor: Unlocking HBU Value In 2014 we undertook an extensive evaluation of ~200,000 acres in the I-95 Coastal Corridor stretching approx. 200 miles between Daytona Beach, FL and Savannah, GA. 2 0 0 MI L E S = Rayonier landholdings  Land Analysis  Market

84. Slide 84: I-95 Coastal Corridor: Active Portfolio Management

    Investor Day | November 2016 I-95 Coastal Corridor: Active Portfolio Management BRYAN COUNTY – US 17 RICHMOND HILL 1 KILKENNY RICHMOND HILL 2 2014/15/16 2014/15 2014/15 EAST NASSAU NORTHERN WEST NASSAU 3 ST MARYS BLUFF’S ST MARYS / EXIT 1 GA EAST NASSAU REMAINDER CRAWFORD DIAMOND EAST NASSAU SOUTHER

85. Slide 85: Land Use Entitlements Pipeline

    Investor Day | November 2016 Land Use Entitlements Pipeline 84 Create a sustainable pipeline of market-ready properties with HBU development rights and return an HBU premium through sales to developers and homebuilders. (1) Figures shown as of 10/31/2016. (2) Acres shown are net acres; all other acr

86. Slide 86: Unimproved Development: St. Johns Co, FL

    Investor Day | November 2016 Unimproved Development : St. Johns Co, FL Closed 1. 217 ac $17,000/ac (2015) 2. 48 ac $18,000/ac (2016) 3. 73 ac $18,500/ac (2016) Land Use Entitlements Complete 4. 257 ac residential 5. 86 ac commercial Land Use Entitlements In-Progress 6. 551 ac residential | commercia

87. Slide 87: Local Context: NE Florida Growth Momentum Shifting North

    Investor Day | November 2016 Jacksonville MSA: 1,450,000 (2015 US Census Estimate) 86 Local Context: NE Florida Growth Momentum Shifting North

88. Slide 88: An Active Regional Economy

    Investor Day | November 2016 An Active Regional Economy Established Anchors:  Downtown Jacksonville,  Jacksonville Int’l Airport,  Port of Jacksonville  Kings Bay Naval Base  Amelia Island + Resort Diverse / Growing Sectors:  Industrial + Manufacturing  Shipping + Distribution  Professional

89. Slide 89: Local Context: Growing Market

    Investor Day | November 2016 Local Context: Growing Market 3,381 3,245 4,582 6,276 6,306 7,242 251 309 305 481 545 786 - 100 200 300 400 500 600 700 800 900 - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 2010 2011 2012 2013 2014 2015 Single Family Building Permits Source: U.S. Census. Nassau Shar

90. Slide 90: East Nassau Community Planning Area

    Investor Day | November 2016 The East Nassau Community Planning Area comprises 24,000 acres currently zoned for future development. Site Location: ~24,000 Acres with Approved Zoning 89

91. Slide 91: Wildlight Master Plan: Generalized Development Plan

    Investor Day | November 2016 Wildlight Master Plan: Generalized Development Plan 90

92. Slide 92: Wildlight Master Plan: Year Program

    Investor Day | November 2016 91 Wildlight Master Plan: A 10 Year Program

93. Slide 93: Financial Overview

    Investor Day | November 2016 Financial Overview Mark McHugh | Senior Vice President & Chief Financial Officer 92

94. Slide 94: Disclosure Philosophy

    Investor Day | November 2016 Objective Provide investors with detailed and transparent information to better understand our business and make informed investment decisions Disclosure Philosophy 93 Rayonier strives to provide best-in-class disclosure and transparency for our investors.  Key financia

95. Slide 95: Rayonier Financial Summary: 2013 – 2016 YTD

    Investor Day | November 2016 Rayonier Financial Summary: 2013 – 2016 YTD (9/30) 94 Pro Forma Sales* Rayonier has historically generated strong Adjusted EBITDA* margins and high Adjusted EBITDA-to-free cash flow conversion. * Non-GAAP measure or pro forma item (see Appendix for definitions and reconc

96. Slide 96: Low-Cost Debt Structure & Attractive Maturity Profile

    Investor Day | November 2016 Low-Cost Debt Structure & Attractive Maturity Profile 95 Rayonier has low-cost, primarily fixed-rate debt and a well-staggered maturity profile. Maturity Profile Highlights  Average rate of 3.25%  96% fixed-rate debt  Average maturity of over 7 years Highlights  Well

97. Slide 97: Investment Grade Ratings & Strong Credit Metrics

    Investor Day | November 2016 Investment Grade Ratings & Strong Credit Metrics Current Credit Ratings  S&P: BBB- / Stable  Moody’s: Baa3 / Stable Credit Highlights  Strong Adj. EBITDA* margins  High EBITDA-to-FCF conversion  Significant asset coverage Credit Ratio Targets  Committed to maintain

98. Slide 98: Adjusted EBITDA by Segment: 2013 – 2016 YTD

    Investor Day | November 2016 Adjusted EBITDA* by Segment: 2013 – 2016 YTD 97 Adjusted EBITDA* by Segment Recent strength in the Real Estate and New Zealand Timber segments has offset harvest deferrals in the Pacific Northwest and Southern Timber segments. * Non-GAAP measure or pro forma item (see Ap

99. Slide 99: EBITDA Margin Varies by Segment

    Investor Day | November 2016 EBITDA* Margin Varies by Segment 98 EBITDA* Margin by Segment: 2013 – 2016 YTD (9/30) Rayonier’s EBITDA* margin varies considerably by segment due to different cost structures and marketing strategies (e.g., delivered vs. stumpage). * Non-GAAP measure or pro forma item (

100. Slide 100: Rayonier is the Leading Pure Play Timber REIT

     Investor Day | November 2016 Rayonier is the Leading “Pure Play” Timber REIT 99 Peer Group EBITDA* Composition (2013-15 Average) Over the past three years, Rayonier has generated 74% of its EBITDA* from timber operations (versus 51% for the peer group). Note: Timberland REIT Peer Group comprised of

101. Slide 101: Timberland EBITDA / Cash Flow Volatility Is Very Low

     Investor Day | November 2016 Timberland EBITDA* / Cash Flow Volatility Is Very Low 100 Historical U.S. Timberland Segment EBITDA* Margins Timberland operations generally yield high EBITDA* margins with very low volatility. (1) Calculated as ratio of standard deviation to average. * Non-GAAP measure

102. Slide 102: Manufacturing EBITDA / Cash Flow Volatility Is Very High

     Investor Day | November 2016 Manufacturing EBITDA* / Cash Flow Volatility Is Very High 101 Historical Wood Products Segment EBITDA* Margins Wood products manufacturing generates much lower EBITDA* margins and is highly volatile relative to timberlands. Note: Rayonier Wood Products segment reflects l

103. Slide 103: Rayonier Leads the Sector In U.S. South EBITDA / Ton

     Investor Day | November 2016 Rayonier Leads the Sector In U.S. South EBITDA* / Ton 102 U.S. South EBITDA* / Ton Rayonier’s sector-leading EBITDA* per Ton has increased by over 50% in the last five years, while its rate of harvest has remained relatively stable. Source: WY EBITDA based on Sept-2016 I

104. Slide 104: U.S. South Historical Valuation Snapshot

     Investor Day | November 2016 – $250 $500 $750 $1,000 $1,250 $1,500 $1,750 $2,000 U.S. South Historical Valuation Snapshot 103 U.S. South EBITDA per Acre (NCREIF) U.S. South timberlands have traded at an average EBITDA multiple (excluding land sales) of ~36x over the last 25 years. Source: National C

105. Slide 105: Rayonier's Northwest EBITDA / Ton Has Declined

     Investor Day | November 2016 Rayonier’s Northwest EBITDA* / Ton Has Declined 104 Northwest EBITDA* / Ton Rayonier’s Northwest EBITDA* per ton is below the peer group, due its the historical proportion of hemlock volume (vs. Douglas-fir) and, more recently, due to its reduced rate of harvest. Source:

106. Slide 106: Northwest Historical Valuation Snapshot

     Investor Day | November 2016 – $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 – 20x 40x 60x 80x 100x Northwest Historical Valuation Snapshot 105 Northwest EBITDA per Acre (NCREIF) Northwest timberlands have traded at an average EBITDA multiple (excluding land sales) of ~21x over the last 25 years, b

107. Slide 107: Financial Overview – Key Takeaways

     Investor Day | November 2016 Financial Overview – Key Takeaways 106 Disclosure Portfolio Mix Performance Balance Sheet Valuation  Leading the industry with best-in-class disclosure  Committed to transparent investor communications  Low cost of debt with staggered maturity profile  Strong / stabl

108. Slide 108: Closing Remarks and Q&A

     Investor Day | November 2016 Closing Remarks and Q&A Dave Nunes | President & Chief Executive Officer 107

109. Slide 109: Rayonier Represents an Attractive Investment Opportunity

     Investor Day | November 2016 Rayonier Represents an Attractive Investment Opportunity  Steady improvement in housing starts projected over next few years  Favorable supply dynamics relative to last peak in housing starts driven by decline in Canadian supply  Demand from China that was not present

110. Slide 110: Appendix

     Investor Day | November 2016 APPENDIX 109

111. Slide 111: Biographies

     Investor Day | November 2016 Biographies 110 David L. Nunes | President and CEO Service since: 2014 Mr. Nunes has more than three decades of forest products industry experience. He has served in key leadership positions at several timber and real estate companies, including CEO and president, and ha

112. Slide 112: Biographies (cont.)

     Investor Day | November 2016 Biographies (cont.) 111 Jim Gent, A.D. | Director, Research & Silviculture Service since: 2006 Dr. Gent joined Rayonier in 2006 as Manager, Forest Productivity and Technology. In 2010, he was named Manager, Research and Silvicultural support, with responsibility for dire

113. Slide 113: Definitions of Non-GAAP Measures and Pro Forma Items

     Investor Day | November 2016 Definitions of Non-GAAP Measures and Pro Forma Items Pro Forma Sales is defined as revenue adjusted for Large Dispositions. Rayonier believes that this non-GAAP financial measure provides investors with useful information to evaluate our core business operations because

114. Slide 114: Reconciliation of Net Debt and LTM Adjusted EBITDA

     Investor Day | November 2016 Reconciliation of Net Debt and LTM Adjusted EBITDA 113 ($ in millions) 2016 (9/30) Current maturities of long-term debt $31.8 Long-term debt, net of deferred financing costs 1,033.3 Deferred financing costs 3.7 Total Debt $1,068.8 Cash and cash equivalents (110.0) Net De

115. Slide 115: Reconciliation of Net Income to Adjusted EBITDA

     Investor Day | November 2016 Reconciliation of Net Income to Adjusted EBITDA 114 ($ in millions) 2016 2015 2014 2013 YTD (9/30) Net income $167 $44 $98 $374 Interest, net 25 35 50 38 Income tax expense (benefit) 2 (1) (10) (36) Depreciation, depletion and amortization 84 114 120 117 Non-cash cost of

116. Slide 116: Reconciliation of Pro Forma Sales and Operating Income to Adjusted EBITDA by Segment

     Investor Day | November 2016 Reconciliation of Pro Forma Sales and Operating Income (Loss) to Adjusted EBITDA by Segment 115 Pacific Southern Northwest New Zealand Real Corporate ($ in millions) Timber Timber Timber Estate Trading and Other Total 2016 YTD (9/30) Sales $102 $52 $126 $211 $76 - $568 L

117. Slide 117: Reconciliation of Pro Forma Sales and Operating Income to Adjusted EBITDA by Segment

     Investor Day | November 2016 Reconciliation of Pro Forma Sales and Operating Income (Loss) to Adjusted EBITDA by Segment 116 Pacific Southern Northwest New Zealand Real Corporate ($ in millions) Timber Timber Timber Estate Trading and Other Total 2014 Sales $142 $102 $183 $77 $104 ($4) $604 Large Di

118. Slide 118: Reconciliation of Operating Income to Adjusted EBITDA by Segment

     Investor Day | November 2016 Reconciliation of Operating Income (Loss) to Adjusted EBITDA by Segment 117 Pacific Southern Northwest New Zealand Real Corporate ($ in millions) Timber Timber Timber Estate Trading and Other Total 2012 Operating Income $23 $21 $2 $32 - ($46) $32 Depreciation, depletion

Rayonier — Investor Day (November 2016) on 6ix