CatchMark Timber Trust, Inc. to sell 56,000 acres of timberlands in Texas and Louisiana — the Southwest Region — to Forest Investment Associates for $78.5 million. CatchMark will retain approximately 370,000 tons of merchantable inventory (52% sawtimber/48% pulpwood) to be harvested over the next 18-24 months. The per-acre sales price is $1,533 when including the timber reservations, as the company says in the press release received by Lesprom Network.
The Southwest region portfolio, located across several counties in East Texas and western Louisiana, was acquired by CatchMark in four separate transactions during 2014 and 2015. The property is comprised of 79% pine and 21% hardwood by acres and 1.8 million tons of merchantable inventory, consisting of 51% sawtimber and 49% pulpwood. After accounting for the timber reservation, the completed disposition would decrease the company's average annual harvest volume by approximately 134,000 tons over the next five years.
The Southwest region transaction is expected to be completed by the 4Q with proceeds going to repay debt.
Jerry Barag, CatchMark's President and CEO, said: “The Southwest region sale follows our 1.1 million-acre Triple T joint venture investment in prime East Texas timberlands and will reduce our regional exposure while strengthening our capital position to enable further growth. Taken together these transactions diversify CatchMark's revenue streams and markets through effective recycling and deployment of capital."
CatchMark Timber Trust, Inc. is a self-administered and self-managed, publicly-traded timberland REIT that strives to deliver superior risk-adjusted returns for all stakeholders through disciplined acquisitions, sustainable harvests, and well-timed real estate sales.
