Pope Resources reported net income of $12.7 million, or $2.92 per ownership unit, on revenue of $47.8 million for 4Q 2017. This compares to net income of $4.6 million, or $1.05 per ownership unit, on revenue of $43.5 million for 4Q 2016, as the company says in the press release received by Lesprom Network.
The 4Q 2016 results included a $7.7 million increase in the environmental remediation liability for Port Gamble Bay and the former millsite. Excluding this charge, adjusted net income for 4Q 2016 was $12.3 million, or $2.82 per ownership unit.
Full-year 2017 net income totaled $17.9 million, or $4.10 per ownership unit, on revenue of $99.8 million. This compares to full-year 2016 net income of $5.9 million, or $1.35 per ownership unit, on revenue of $80.4 million. Excluding the $7.7 million environmental remediation charge, adjusted net income was $13.6 million, or $3.14 per ownership unit, for the year ended December 31, 2016.
"We finished 2017 firing on all cylinders in each of our three primary business segments," said Tom Ringo, President and CEO. "Log prices crept up throughout the year, closing at levels we have not realized for almost 25 years. Fund IV signed purchase and sale agreements to buy two separate tree farms comprising nearly 37,000 acres. Both transactions closed in January 2018 for a combined purchase price of $114 million. Over the last several years our Real Estate segment has set the template for big year-end finishes, and 4Q 2017 was no exception as we closed on a $22 million suite of residential/commercial lot sales coupled with two conservation-oriented sales. Heading into 2018, we are buoyed by continued strength in our Pacific Northwest log markets, encouraged by the ongoing vigor of the Puget Sound housing market, and optimistic about new opportunities to place Fund IV's committed capital."
Pope Resources, a publicly traded limited partnership, and its subsidiaries Olympic Resource Management and Olympic Property Group, own and manage 118,000 acres of timberland and 2,000 acres of development property in Washington.
