CTT - CatchMark Timber: Asset Sales Propping Up Unsustainable EBITDA And Dividend; 60-100% Downside
Investment Summary
CatchMark Timber Trust (CTT) is a timberland REIT which “seeks to generate value through the acquisition and management of timberland,” primarily in the Southern US (Alabama, Florida, Georgia, Texas). The Company holds over $700 million in total assets, having been built up primarily through various timberland acquisitions since its 2013 IPO. We believe that:
- CatchMark borrows from private markets to finance purchases of timberland. CTT then sells a portion of this timberland back to a new owner, the proceeds of which are recorded as revenues and drop down to Adjusted EBITDA