Rayonier (RYN) Citi’s Miami Global Property CEO Conference 2026 summary

Strategic overview and merger rationale

• Recent merger with PotlatchDeltic creates a stronger, more diversified organization with expanded timberland holdings and enhanced value realization opportunities.

• Combined portfolio now includes 4.1 million acres of timberland, six sawmills, and a plywood facility, positioning the company as a top 10 U.S. lumber producer.

• Merger targets $40 million in annual run-rate synergies and improved cost of capital due to increased scale and liquidity.

• Asset base is concentrated in the U.S. South, where long-term upside from land-based solutions is most significant.

• Conservative leverage profile and capital allocation flexibility support future growth and shareholder returns.

Timberland and wood products market conditions

• Southern timber markets faced headwinds in 2025 due to hurricane salvage, dry weather, and mill shutdowns, but modest price recovery is expected in 2026.

• Sawlog prices showed more stability than pulpwood, with coastal markets remaining strong despite recent declines.

• Northwest region benefits from lumber-indexed pricing, especially in Idaho, providing stability and upside during market swings.

• Timberland valuations remain strong in private markets, with significant capital available for M&A and robust HBU value growth.

• Addition of manufacturing assets offers portfolio optimization and greater control over market exposure.

Real estate and land-based solutions

• Real estate business focuses on entitlements and horizontal infrastructure, enhancing value across large land footprints without vertical development.

• HBU land sales consistently achieve premiums above timberland value, with recent transactions exceeding 100% premiums.

• Key development projects like Wildlight and Heartwood are in early growth stages, while Chenal Valley provides steady earnings.

• Land-based solutions pipeline includes 80,000 acres under solar option and 154,000 acres under CCS lease, with solar leases offering significant near-term cash flow uplift.

• Carbon markets and CCS present long-term growth, with large-scale buyers seeking extensive projects and regulatory processes affecting timing.