The mature planted pine in the timberland are expected to produce an average harvest of 6.4 tons per acre (540,000 tons) annually over the first 10 years. They are estimated to accrue an adjusted EBITDA of approximately USD 150 per acre (USD 12.5 million) annually from timber operations over the first 10 years
Aug 2, 2024
Weyerhaeuser Company has acquired 84,300 acres of high-quality timberlands in Alabama for USD 244 million. The collective acreage, secured through multiple transactions, comprises mature and highly productive timberlands, which are well-integrated with existing Weyerhaeuser operations.
As per a release issued by the company, the acquisitions are expected to deliver portfolio-leading cash flow and harvest tons per acre within the company’s Southern Timberlands business.
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The timberlands are located in one of the strongest inland sawlog and fiber markets in the U.S. South, having fee ownership with 74 percent planted pine acreage and strong site productivity. The mature planted pine age class are expected to produce an average harvest of 6.4 tons per acre (540,000 tons) annually over the first 10 years. They are estimated to accrue an adjusted EBITDA of approximately USD 150 per acre (USD 12.5 million) annually from timber operations over the first 10 years
“These transactions represent attractive opportunities to enhance our portfolio with high-quality, well-managed timberlands that generate solid returns for our shareholders,’’ said, Mr. Devin W. Stockfish, President and Chief Executive Officer, Weyerhaeuser
He adds, “Including these transactions, we will have completed approximately USD 775 million against our target to grow our timberlands portfolio through USD 1 billion of disciplined investments by the end of 2025,” he added.
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Of the multiple transactions involved, one closed in the second quarter of 2024 for USD 48 million. The remaining transactions were under contract and expected to close by year end, subject to customary closing conditions. After the finalization of all acquisitions, Weyerhaeuser would own or manage approximately 695,000 acres of timberlands in Alabama, along with two mills, a Timberlands office and seed orchard — employing more than 350 people in the state.
