U.S. South Historical Valuation Snapshot slide image

U.S. South Historical Valuation Snapshot

Conservative Capital Structure & Financial Policy Credit Highlights & Ratio Targets Current Credit Ratings ($ in millions) Capitalization & Maturity Profile ■ S&P: ■ Moody's: Credit Highlights BBB- / Stable Baa3 / Stable ■ Strong Adjusted EBITDA* margins ■ High EBITDA-to-FCF conversion Total Debt (2) 3/31/2023 $1,522.2 (-) Cash (2) (98.7) Net Debt* $1,423.5 Credit / Valuation Data 2022 Adjusted EBITDA* $314.2 Shares/OP Units Outstanding 150.5 Enterprise Value (3) $6,428.9 Credit Statistics ■ Significant asset coverage 3.1% weighted avg. cost of debt (~90% fixed) (1) Credit Ratio Targets Committed to maintaining an investment grade credit profile Net Debt* / Adj. EBITDA* 4.5x Net Debt* Enterprise Value 22% ($ in millions) $500 $450 $400 $350 $300 Target credit metrics include: $250 $200 - Net Debt* / Adj. EBITDA*: ≤4.5x $150 $100 - Net Debt* / Asset Value: ≤ 30% $50 2023 2024 2025 2026 2027 2028 2029 2030+ Maintaining a conservative capital structure and maximizing usage of Farm Credit financing provides for an attractive cost of debt relative to underlying timberland returns. Rayonier (1) (3) Weighted average cost of debt calculated as of 3/31/2023. Debt reflects principal on long-term debt, gross of deferred financing costs and unamortized discounts. Cash excludes $2.7 million of restricted cash held in escrow and $1.6 million of restricted cash held by LKE intermediaries. Enterprise value based on market capitalization (including Rayonier, L.P. "OP units") plus net debt based on RYN share price of $32.96 as of 3/31/2023. Non-GAAP measure (see Appendix for definitions and reconciliations). Investor Presentation | May 2023
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