Timberland Investments and the Strategic Role of Technology

| no comments in Forest Finance & Economics, Forest Technology, Risk Management, Timber Market Analysis, Timberlands, Wood Demand & Procurement

Mid-way through a ninth year of increasing housing starts and growing lumber consumption, timberland investors and forest owners in the U.S. South continue to struggle with flat and, in certain local markets, falling sawlog prices. Previous posts discuss how this more…

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

| no comments in Forest Finance & Economics, Timberlands

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?

| no comments in Forest Finance & Economics, Timberlands

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

| no comments in Forest Finance & Economics, Timberlands

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…