WY - Weyerhaeuser to Enhance Southern Timberlands Portfolio | Benzinga

Purchase and sale agreements with Forest Investment Associates set to increase cash flow and optimize portfolio value 

SEATTLE, Nov. 30, 2023 /PRNewswire/ -- Weyerhaeuser Company (NYSE:WY) today announced it has entered into two distinct agreements with Forest Investment Associates to divest approximately 69,600 acres in Upstate South Carolina for $170 million, and to purchase approximately 60,700 acres of high-quality timberlands in Coastal North Carolina, South Carolina and Mississippi for $163 million.

Key attributes of the transaction:

• Adding high-quality timberlands with attractive timber attributes, including:
• Mature, highly productive acreage that is well-integrated with existing Weyerhaeuser timberlands and mill operations.
• Fee ownership with 80 percent planted pine acreage and strong site productivity, delivering strong long-term timber returns.
• Well-stocked timber inventory producing attractive sawlog mix and expected average harvest of 6.9 tons per acre (or 420,000 tons) annually over the first five years.
• Expected average Adjusted EBITDA from timber operations of approximately $130 per acre (or $7.7 million) annually over the first five years.
• Acquiring core timberland acreage at an Adjusted EBITDA multiple of 21x¹, while divesting less strategic ownership at an Adjusted EBITDA multiple of 47x¹.
• Opportunity to enhance real estate cash flows and returns on high-optionality coastal assets.
• Structured as a tax-efficient like-kind exchange with minimal transaction costs.

Full story available on Benzinga.com