Rayonier (RYN) Nareit REITweek: 2026 Investor Conference summary

Strategic merger and business overview

• Recent merger with PotlatchDeltic creates a larger, more diversified enterprise with enhanced scale and optionality across timber, wood products, and real estate segments.

• The combined company owns 4.1 million acres of timberland, six sawmills, and a plywood facility, with a strong presence in the U.S. South and Northwest.

• Land-based solutions, including solar and carbon capture leases, are positioned as key long-term growth drivers, with 80,000 acres under solar option and 154,000 acres under carbon storage lease.

• Annual run rate synergies of $40 million are targeted, mainly from overhead optimization, with a strong balance sheet and improved trading liquidity expected.

• Leadership team integrates top talent from both legacy organizations, with merger integration progressing well.

Value creation and portfolio optimization

• Transitioning timberland to higher-value uses (carbon capture, solar, development) can increase per-acre value by 5x to 15x.

• HBU (higher and better use) land sales in the U.S. South typically command 50%-100% premiums over timberland value, with 1%-1.5% of acreage sold annually.

• Real estate development projects and land-based solutions are expected to drive significant future cash flow growth.

• The company is building a pipeline for solar and carbon projects, with 35,000 acres of solar options maturing in the next few years.

• Carbon offset markets and large-scale projects are seen as major opportunities post-merger.

Financial performance and market dynamics

• Wood products business now ranks among the top 10 U.S. lumber producers, with 1.2 billion board feet annual capacity.

• Lumber prices have improved, benefiting operations, especially in Idaho where 75% of sawlogs are indexed to lumber prices.

• Every $10 increase in lumber price adds up to $15 million in annual EBITDA, with strong margin flow-through.

• Pulpwood markets have stabilized, with new demand from bioenergy, biocarbon, and carbon offset markets offsetting declines in traditional pulp and paper.

• Energy and fuel costs impact timberland operations, but efforts are made to pass through incremental costs to customers.