My Account | Sign In
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…
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…
As noted in Part I of this series, cash-on-cash return (COCR) provides one way for real estate investors to quickly compare the profitability of different income-producing properties or investments. However, it has limits for measuring returns or wealth creation over more…
Timberland investors naturally care about the cash flows and distributions from timberland investments over time. These cash flows vary with the products grown, markets served and age distribution of the forest owned. Also, timberland portfolios can be constructed to meet more…
You are an Analyst, a warrior shrouded in mystery and feared for your ruthlessness with Excel. Your actions can throw Investment Committee meetings into chaos, and your existence will shape forest management during this pivotal moment in history. [Inspired by more…
Part I of Timber REITs and the “Dividend Tax” Cliff summarized, in words, the implications to shareholders of publicly-traded timberland-owning REITs if the current dividend tax rate expires on December 31, 2012. This post quantifies the implications and puts into more…
This is the first in a two-part series summarizing implications to timber REIT shareholders from expiry of the current tax provisions specific to dividend income. Fear battles greed once again as chronicled by the business press in the looming “fiscal more…
No. Let me explain. On October 29th, 2012, Hurricane Sandy – crowned “Superstorm Sandy” by the media – landed on the East Coast of the United States, disrupting businesses from North Carolina to Maine and west to Michigan and Wisconsin, more…
This is the third in a three-part series related to managing financial risk associated with timberland investments, wood procurement and forest management activities. Colonel Kurtz, in the movie “Apocalypse Now,” says “you must make a friend of risk.” While I more…
This is the second in a three-part series related to managing financial risk associated with timberland investments, wood procurement and forest management activities. Part I of Managing Financial Risk in Forestry (Real Options and a Practical Question) introduced industrial views more…