Forest Finance: When is the “Current Stand Approach” Useful for Valuing Timberlands?

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When talking about timberland investing while having a beer or standing over the hood of a truck, not when signing checks or allocating capital….. A reasonable estimate of a forest’s current economic value equals the standing merchantable volume multiplied by the more…

Forest Finance: What Does a Negative or Zero NPV Say About My Potential Timberland Investment?

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Attention shoppers!  An NPV of zero does not necessarily indicate “bad investment.”  Previously, we discussed applications and limitations of using cash-on-cash (COCR) return as a metric for analyzing forestry and timber investments, as well as questions related to internal rate more…

Forest Finance Q&A: Cash-on-Cash Returns versus IRR and ROI for Timberland Investing

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While cash-on-cash (COCR) return – a percentage often used by investors to evaluate income-producing real estate – has limitations when applied to timberland investment performance, it consistently generates interest from institutional investors.  Below are questions analysts asked us about COCR: more…