PotlatchDeltic (PCH) Nareit REIT Week: 2024 Investor Conference summary

Business overview and strategy

• Operates 2.2 million acres of timberland, with three business units: wood products, timberlands, and real estate.

• Real estate includes rural land sales and a master-planned community in Arkansas.

• Expanding into climate solutions, including solar, carbon offsets, and lithium.

Lumber and timber market dynamics

• Lumber business has faced a challenging year, breaking even despite significant assets.

• Multifamily housing starts have dropped 50% year-over-year, but expected to recover in 6–18 months.

• DIY segment of repair and remodel market is under pressure due to high interest rates; pro segment remains stable.

• 13 North American mills closed this year, removing 2% of capacity; more closures expected.

• U.S. housing is underbuilt by 4–5 million units, supporting long-term demand.

Capacity and modernization projects

• Waldo, Arkansas sawmill expansion ($130M) will boost capacity by 85M board feet and cut costs by 30%.

• Ramp-up to full capacity expected in 3–9 months post-completion in Q3.

• Ongoing smaller modernization projects at other mills; further large expansions under study.