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Several years ago, an analyst from a hedge fund called me to discuss suitable discount rates for timberland investments. We had the following exchange: “A common error with discount rates is that folks use real and nominal rates inconsistently,” I more…
The Mountain Pine Beetle (MPB) – like a ravenous, insatiable house guest – continues to feast on pine forests, primarily in British Columbia. Fortunately, according to the most recent update from researcher Adrian Walton of the BC Forest Service (May 11, 2010), more…
“Inflation at 44-Year Low” trumpeted today’s headline from the Wall Street Journal. The news was pause-worthy at our shop because one of the most common arguments for investing in timberland is its purported potential to hedge inflation. Well, does it? more…
The New Yorker magazine published a cartoon in its May 17, 2010 issue of two trees talking in the woods. One says to the other, “Can you believe that people inhale the gases we expel – sick, right?” The cartoon more…
Managing the risk of forestry and timberland investments fits with the “circular flow of funds” approach to financial management, which focuses on two fiduciary objectives. One, raising and supplying the funds required for timber-related investments on favorable terms. Two, using more…
Institutional and individual investors often ask, “what is the difference between investing in timberlands directly and buying stock in publicly-traded timberland-owning real estate investment trusts (timber REITs)?” In brief, one is direct ownership of a hard asset while the other more…
Forisk’s market cap weighted FTR (“footer”) Index of publicly-traded, timberland-owning real estate investment trusts (timber REITs) fell 0.48% over the past week as Plum Creek (PCL), Potlatch (PCH), and Rayonier (RYN) released earnings information and absorbed new assessments from ratings more…