PotlatchDeltic Corporation reported a net loss of $0.1 million, or $0.00 per diluted share, on revenues of $254.5 million for the quarter ended December 31, 2023. Net income was $3.8 million, or $0.05 per diluted share, on revenues of $253.1 million for the quarter ended December 31, 2022. Excluding after tax special items consisting of CatchMark merger-related expenses and an environmental charge, adjusted net income was $9.3 million, or $0.12 per diluted share, for the fourth quarter of 2022.
Net income for the full year 2023 was $62.1 million, or $0.77 per diluted share, on revenues of $1.0 billion. Excluding after tax special items consisting of a gain on insurance recoveries and CatchMark merger-related expenses, adjusted net income was $35.0 million, or $0.43 per diluted share, for 2023. Net income for the full year 2022 was $333.9 million, or $4.58 per diluted share, on revenues of $1.3 billion. Excluding after tax special items consisting of gain on insurance recoveries, CatchMark merger-related expenses, a pension settlement charge, and an environmental charge, adjusted net income was $350.0 million, or $4.80 per diluted share, for 2022.
“Each of our business segments delivered solid operational and financial results in 2023,” said Eric Cremers, President and CEO. “Our Timberlands and Wood Products businesses each achieved operational milestones amongst the backdrop of challenging market conditions, while our Real Estate segment generated significant value from the stratification of our CatchMark timberlands. Additionally, we returned $169 million to shareholders in 2023 through $144 million in quarterly dividends and $25 million of share repurchases. Looking forward to 2024, we recently entered into an agreement with Forest Investment Associates to sell approximately 34,000 acres of four-year average age Southern timberlands for approximately $58 million, or $1,700 an acre. The sale price is at a significant premium to our underlying timberland value and is non-dilutive given the young nature of these timberlands. The transaction is subject to customary closing conditions and is expected to close in the Q2 2024. Proceeds from this sale will further enhance our strong liquidity position and provide additional flexibility for our disciplined and opportunistic capital allocation strategy to continue to enhance shareholder value,” stated Mr. Cremers.
Outlook
“While interest rates have recently moderated, housing affordability and the macroeconomic environment continue to remain a headwind for the broader housing market. Nonetheless, we maintain a very positive outlook on long-term housing-related fundamentals that drive growth in our business. During 2024, we expect to harvest 7.6 million tons in our Timberlands segment, ship 1.1 billion board feet of lumber in our Wood Products segment and sell about 51,000 rural acres, including the sale of approximately 34,000 acres in the South to Forest Investment Associates, and 130 residential lots in our Real Estate segment,” stated Mr. Cremers.
PotlatchDeltic Corporation is a leading Real Estate Investment Trust (REIT) that owns nearly 2.2 million acres of timberlands in Alabama, Arkansas, Georgia, Idaho, Louisiana, Mississippi and South Carolina. Through its taxable REIT subsidiary, the company also operates six sawmills, an industrial-grade plywood mill, a residential and commercial real estate development business and a rural timberland sales program.
