The two transactions—known as Oglethorpe and Satilla River—are expected to close during the third quarter, subject to completion of CatchMark's due diligence and the satisfaction of closing conditions, including verification of inventory and title. The transactions will be financed through a combination of CatchMark's credit facility and cash on hand.
During 2014, CatchMark has acquired or entered into agreements to acquire approximately 100,000 acres of timberlands, representing a 36% increase in its total acreage relative to year-end 2013. In aggregate, these acquisitions, assuming completion of the Oglethorpe and Satilla River transactions, are expected to increase CatchMark's annual harvest volumes over the next decade by approximately 440,000 to 480,000 tons.
Jerry Barag, CatchMark's President and CEO, said: "These two acquisitions represent the continuing execution of our business strategy to add high quality timberlands with above average productivity characteristics to our portfolio. We believe they will enhance our long-term harvest volumes, improve our product mix, provide durable earnings, and help grow our dividend. We continue to concentrate our purchases in key U.S. South fiber baskets, where we are finding the best relative value opportunities to help us meet these objectives," he 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 320,400 acres of timberland located in Georgia, Alabama and Texas.