CatchMark Timber (CTT) has strong operations and trades at a deep discount to NAV. It represents a targeted play on the timber space with the majority of its revenues derived from the southeastern U.S. Let us begin with the aspects of their business that differentiate them from other timber players.
3 operational strengths
- Contracted supply arrangements
- High yield land
- Asset management fees
Contracted supply agreements serve the primary purpose of securing smooth revenues which protects CTT from the bumpiness of stumpage pricing. I think this is often misunderstood by the market and makes