Weyerhaeuser Company (WY) Citi's 30th Annual Global Property CEO Conference summary

Company overview and business segments

• Operates 10.4 million acres of timberlands in the U.S. and manages 14 million acres in Canada under long-term licenses.

• Real Estate, Energy, and Natural Resources segment maximizes returns across the land base, including Natural Climate Solutions.

• Among the largest wood products producers in North America, with 19 distribution facilities.

• Operates under a tax-efficient REIT structure, focusing on industry-leading performance.

Lumber and wood products market dynamics

• 2023 saw reduced demand for lumber, leading to significant mill closures and a 4 billion board feet reduction in North American capacity.

• Tariffs (25%) and duties (rising to 25-30% in August) on Canadian imports are expected to create a combined 50-55% import cost, impacting supply and pricing.

• Lumber prices have been trending up due to seasonal demand and new tariffs.

• U.S. mills have some flexibility to ramp up production, especially in the South, but new capacity additions take years.

Demand outlook and market positioning

• Single-family housing starts remained strong in 2023, with a slight improvement expected in 2025.

• Large national builders are expected to continue gaining market share by adapting to market conditions.

• The cost of lumber is about 1.5% of the total cost of a house, so tariff impacts on home prices are limited.