PotlatchDeltic (PCH) Bank of America 2025 Global Agriculture and Materials Conference summary

Business overview and structure

• Operates as a timber REIT with $4.5 billion enterprise value and three business units: Timberlands, Wood Products, and Real Estate.

• Timberlands: 2.1 million acres, harvesting 7.5 million tons of logs annually, mainly in Idaho and the Southeast.

• Wood Products: Six lumber mills and one plywood mill, producing 1.2 billion board feet of lumber per year.

• Real Estate: Sells about 1% of acreage annually for higher-value uses, including a master-planned community in Little Rock.

• Investment-grade balance sheet with 20% debt-to-enterprise value; earnings highly sensitive to lumber prices.

Strategic projects and operational highlights

• Waldo sawmill expansion increased capacity from 200 million to 285 million board feet, reducing processing costs by 30% and improving recovery by 6%.

• Waldo project expected to deliver $25–30 million incremental EBITDA annually.

• Loyal, non-unionized workforce at Waldo was key to project success.

• Actively evaluating further mill expansion opportunities, with potential new projects under consideration.

Capital allocation and financial discipline

• Focuses on disciplined timberland acquisitions, never bidding below cost of capital to avoid overpaying.

• Share repurchases only occur when stock trades at a deep discount to net asset value; issues shares for acquisitions at high valuations.

• Dividend policy is conservative, with no public growth target; dividend only raised when sustainable through the cycle.

• Dividend currently $1.80 per share, up 50% since 2011, but paused due to recent market volatility.

• Maintains capital flexibility to balance buybacks, M&A, and large projects.