Rayonier Inc. reported Q4 2023 net income of $126.9 million, or $0.85 per share, on revenues of $467.4 million. This compares to net income of $33.1 million, or $0.22 per share, on revenues of $245.4 million in the prior year quarter.
Q4 2023 operating income was $145.2 million versus $44.1 million in the prior year period. Q4 2023 Adjusted EBITDA was $93.7 million versus $68.4 million in the prior year period.
David Nunes, CEO, said: “During the Q4, we achieved total Adjusted EBITDA of $93.7 million, an increase of 37% versus the prior year, as exceptionally strong results in our Real Estate segment more than offset weaker results across our Timber segments. Specifically, Real Estate segment Adjusted EBITDA was $39.3 million above the prior year period, as we closed on significant transaction volume in the quarter. In our Southern Timber segment, Adjusted EBITDA declined 4% versus the prior year quarter, as a 12% decrease in weighted-average net stumpage realizations was largely offset by a 17% increase in harvest volumes driven by our late-2022 acquisitions. In our Pacific Northwest Timber segment, Adjusted EBITDA declined 60% versus the prior year quarter, driven by a 12% decrease in weighted-average log prices and 25% lower harvest volumes, as we deferred harvest in response to soft market conditions. In New Zealand, Adjusted EBITDA declined 11% versus the prior year quarter due to lower carbon credit sales, a 9% decrease in export sawtimber prices and 8% lower sales volumes, partially offset by a significant reduction in port and freight costs.”
Full-Year Results
Full-year 2023 net income was $173.5 million, or $1.17 per share, on revenues of $1.1 billion. This compares to net income of $107.1 million, or $0.73 per share, on revenues of $909.1 million in the prior year.
Full-year operating income was $211.3 million versus $165.8 million in the prior year. Full-year Adjusted EBITDA was $296.5 million versus $314.2 million in the prior year.
Outlook
In 2024, the Company expects to achieve net income of $60 to $80 million, EPS of $0.40 to $0.54, and Adjusted EBITDA of $290 to $325 million. The full-year guidance excludes the potential impact of any additional asset sales as part of the $1 billion disposition target that Rayonier announced in November 2023.
David Nunes, CEO, said: “As we move into 2024, we are cautiously optimistic that timber market conditions have generally stabilized across our portfolio, and our team is energized around our growing pipeline of land-based solutions opportunities and the continued strong demand for both rural and development HBU properties. We continue to believe that our improved development projects are uniquely well positioned to benefit from favorable migration trends and healthy regional demand for both residential and commercial properties. Notably, we recently received entitlement approval for the next 15,000-acre phase of Wildlight, which will provide the project with a substantial runway for future growth and value creation.”
Rayonier is a leading timberland real estate investment trust with assets located in some of the most productive softwood timber growing regions in the United States and New Zealand.
