ATLANTA, June 22, 2021 / PRNewswire / – CatchMark Timber Trust, Inc. (NYSE: CTT) today announced a definitive agreement to sell 18,063 acres of Oregon wooded land – known as Bandon property – for $ 100 million in cash, or approximately $ 5,536 per acre, to Roseburg Resources Co.
CatchMark bought the property in August 2018 for $ 88.8 million, or $ 4,916 per acre, excluding transaction fees. The company expects to see a gain on the sale greater than $ 20 million in the third quarter of 2021. In June 17, 2021, CatchMark has harvested approximately 70% of its 2021 target harvest volume for the Pacific Northwest and expects to reach approximately 75% to 80% of its 2021 target harvest volume for the region by the close of the transaction. The sale is expected to be finalized in the third quarter of 2021, subject to customary closing conditions.
Chairman and CEO of CatchMark Brian M. Davis said: “We are satisfied with the outcome of this transaction, which has generated great interest from a large group of investors. By selling this asset, we will be in a better position to reinvest in the growth of our core portfolio in the southern United States where we have a robust operating platform and see the greatest opportunity for future growth. “
Mr. Davis continued, “We have successfully taken advantage of the current favorable market conditions for our Pacific Northwest property. The sale of our Bandon Timberlands demonstrates our ability to execute accretive capital recycling transactions that allow us to continue to pursue our strategy of investing in prime woodlots in high demand factory markets and managing operations to generate stable and predictable cash flow. “
Rosebourg Senior Vice President of Resources Scott Folk commented, “Rosebourg is very pleased to acquire an additional 18,063 acres of well-managed, highly productive and strategically located forest land in the coastal region Oregon. The proximity of these properties to our western manufacturing facilities will help ensure a long-term, sustainable supply of premium quality logs and wood fiber. “
AFM Real Estate acted as CatchMark’s broker for the transaction.
CatchMark (NYSE: CTT) seeks to generate consistent and growing cash flow per share through disciplined acquisitions and superior management of premier woodlands located in high-demand US factory markets. By focusing on maximizing cash flow throughout economic cycles, the company strategically exploits its high-quality forests to produce sustainable revenue growth and takes advantage of nearby factory markets, which provide a reliable outlet for them. merchant stocks. Based at Atlanta and focused exclusively on woodland ownership and management, CatchMark began operations in 2007 and owns interests in 1.5 million acres * of woodland located Alabama, Florida, Georgia, Oregon, Caroline from the south and Texas. For more information visit www.catchmark.com.
* Dated March 31, 2021
Founded in 1936, Roseburg Forest Products is a privately held company and one of the North America leading producers of particle board, medium density fibreboard and thermofused laminates. Rosebourg also manufactures softwood and hardwood plywood, lumber, LVL and I-beams. The company owns and sustainably manages over 600,000 acres of woodland in Oregon, North Carolina and Virginia, as well as an export terminal for wood chips in Coos Bay, Ore. Rosebourg products are shipped everywhere North America and the Pacific Rim. To learn more about the company, visit www.roseburg.com.
About American Forest management
American Forest management offers a range of services including land and habitat management, woodland inventory and sale, environmental practices and technical services. AFM Real Estate, as a subsidiary, offers real estate acquisition and disposal services. Based at Charlotte, North Carolina, American Forest management serves clients across the country with over 50 regional offices and oversees over 6 million acres of land. For more than fifty years, it has been the leading company in the sector, coordinating land transactions valued at more than $ 3.2 billion.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “anticipate”, “estimate”, ” believe, “” continue “,” or other similar words. However, the absence of such words or phrases or expressions like this does not mean that a statement is not forward-looking. Forward-looking statements are not performance guarantees and are based on certain assumptions, discuss future expectations, describe plans and strategies, contain projections of operating results or financial condition or state other forward-looking information. press include, but are not limited to, that we would expect to see a gain on sale greater than $ 20 million, which we expect to close in the third quarter of 2021, which we expect to harvest 75% to 80% of the 2021 target harvest volume for the region by the close of the transaction, which we will be in a better position to reinvest in our portfolio of base and continue to generate sustainable and predictable cash flows and maintain healthy liquidity, and that our capital recycling strategy allows us to invest in future growth and strengthen our balance sheet. The risks and uncertainties that could cause our actual results to differ from these forward-looking statements include, without limitation, that (i) the conditions to close the transaction may not be met on a timely basis or not at all; (ii) our gain on sale may be lower than what we currently expect; (iii) the supply of forest land available for acquisition that meets our investment criteria may be less than what we currently anticipate and, therefore, it may take us longer to reinvest the proceeds of the transaction. than we currently anticipate; (iv) we may not be successful in winning bids for woodlots that are sold through an auction process; (v) we may not be able to make significant transfers of forest land as part of capital recycling transactions at prices attractive to us or not at all; (vi) we may not be able to access external sources of capital at attractive rates or not at all; (vii) potential increases in interest rates could have a negative impact on our business; (viii) we may not generate the harvest volumes from our forest lands that we currently anticipate; (ix) demand for our timber may not increase at the rate we currently anticipate or may decline due to changes in general economic and trade conditions in the geographic regions where our forests are located, including due to the pandemic of COVID-19 and the measures taken to respond to it; (x) a downturn in the real estate market, including a decline in demand and valuations, could negatively impact our ability to generate income and cash flow from the sale of better utilized properties; (xi) timber prices may not increase at the rate we currently expect or may decline, which would have a negative impact on our revenues; (xii) our share buyback program may not be successful in enhancing long-term shareholder value; (xiii) our joint venture strategy may not allow us to access non-dilutive capital and improve our ability to complete acquisitions; (xiv) we may not be successful in effectively managing the Triple T joint venture and the anticipated benefits of the joint venture may not be realized, including that our asset management fees may be deferred or decreased, we may not earn incentive compensation and our investment in the joint venture may lose some or all of its value; and (xv) the factors described in Part I, Item 1A. Risk factors in our annual report on Form 10-K for the year ended December 31, 2020 and our other documents filed with the Securities and Exchange Commission. Therefore, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. We assume no obligation to update our forward-looking statements, except as required by law.
SOURCE CatchMark Timber Trust, Inc.