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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…
News flash: we all make errors when analyzing forestry investments. Which are the most common and how can we avoid them? At the end of the day, most analytic errors in forestry relate to the data used – the inputs more…
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…
One reality of market and investment research is that if a data set “should” exist, it doesn’t. And if it does exist, it’s probably out of date (especially in forestry). Therefore, my team views the systematic aggregation, tracking and analysis more…
People who cite a rising stock market as evidence of economic health (1) make me nervous and (2) remind me what Timber REIT said to Timberland as they walked out of the gym: “You’re such a hard asset.” Roiled and more…
Executive Summary: all timberland investment vehicles exceed US Treasury benchmarks over long time frames; timber REIT dividend distributions enhance yields to help offset short term share price volatility. U.S. Treasuries remain a common benchmark for private timberland investments. Why? Relative more…
When tracking wood demand and timber markets, we look not only to the past and to the future for guidance, but also to the side – peripherally – to gauge performance across markets and sectors. Heather Clark, our Customer Relations more…