The company's new earnings forecast reflects increased production capacity from timberlands purchased this year, including the just-completed Oglethorpe and Satilla River acquisitions; increased production targets for previously-owned timberlands based on market demand; increased lands sales; and the 3Q write-off of deferred financing costs associated with the $34 million repayment of its term loan facility.
Jerry Barag, CatchMark President and CEO, said: "We now expect our 2014 harvest volume to total approximately 1.4 to 1.45 million tons, up from 1.0 to 1.1 million tons forecast at the time of our initial listed public offering late last year.We estimate that our harvest mix for the full year will improve to approximately 30% to 35% sawtimber and 65% to 70% pulpwood.The closing of our previously announced $9 million land sale expected in the 4Q coupled with some additional potential land dispositions are anticipated to register at the higher end of earlier guidance, or close to $10 million.
"These forecasted results underscore the successful implementation of our strategy to assemble quality timberlands which exhibit strong productivity characteristics and improve our product mix to take advantage of current and projected market conditions.We believe this execution will deliver long-term, durable earnings and provide for dividend growth," Barag said.
CatchMark Timber Trust, Inc. is a self-administered and self-managed publicly traded REIT that began operations in 2007 and owns interests in approximately 375,800 acres of timberland located in Alabama, Florida, Georgia and Texas.
