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This is the fifth in a series related to Forisk’s Q2 2015 forest industry analysis and timber price forecasts for the United States and Canada. This post includes an excerpt from the Q2 “Forisk Facts & Figures.” Each issue, the more…
Aunt Fanny sighed loudly and kicked the dirt. A pinecone ricocheted off a nearby white oak before landing in a mound of dirt and leaves. Two dogs barked in the distance. “Nephew, I have a few thoughts regarding the value more…
Forestry professionals continually grapple with the most effective and “context appropriate” ways to report timberland investment performance and forest sustainability. How do we compare results in forestry for questions ranging from cash flows to wood flows? Once you get through more…
According to Forisk tracking of timberland ownership in the United States, 117 firms currently own or manage in excess of 100,000 acres of timberland. These firms feature the following descriptive statistics: As a group, they own/manage 86.2 million acres of more…
Through executing the Louisiana Purchase in 1803, President Thomas Jefferson proved himself, among other things, the preeminent timberland acquisition professional. In this bold embrace, he more than doubled the size of the United States by acquiring 820,000 square miles of more…
Want a simple method for valuing stocks and income earning real estate or timberland? Consider the Dividend Discount Model by dividing next year’s income, assuming it will be earned annually in perpetuity, by a constant discount rate or cost of more…
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…