Investor Presentation
Rayonier U.S. South Acquisitions - Executive Summary
Rayonier Acquired ~137,800 Acres of Timberlands in Texas, Alabama, Georgia, and Louisiana for $454 million
Consists of two separate transactions referred to as Project Dionysus (129k acres) and Project Tigercat (9k acres)
Acquisitions financed with cash on hand and proceeds from new $250 million term loan through Farm Credit System
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STRONG MARKETS
HIGHLY PRODUCTIVE
TIMBERLANDS
WELL-STOCKED
INVENTORY
COMPLEMENTARY
FOOTPRINT
STRONG HARVEST &
CASH FLOW METRICS
SIGNIFICANT UPSIDE /
OPTIONALITY
STRONG CAPITAL
ALLOCATION FIT
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Acquisition Highlights
Weighted-average TimberMart-South (TMS) market ranking of 5.3 (out of 22 markets) (1)
Including acquisitions, approximately 71% of RYN's U.S. South acreage in top quartile markets
72% plantable with an average expressed site index of 73
Sustainable yield of 4.8 tons per acre per year (versus 3.5 tons for RYN legacy U.S. South)
Strong merchantable inventory stocking of 54 tons per acre; average grade mix of ~67%
Mature age-class with average plantation age of ~18 years
Improves U.S. South sustainable yield by ~11% to ~7.0 million tons
Exceptional fit with Rayonier's existing footprint; improves economies of scale in core markets
Average annual harvest volume of ~725k tons over the next 10 years
Expected average annual Adj. EBITDA contribution of ~$23mm (timber-only) over next 10 years (2)
No wood supply agreements encumber the properties, providing enhanced optionality
Additional upside potential from HBU real estate and natural climate solutions opportunities
Premier acquisition opportunity; provides added scale in strategically located markets
Ideal use of balance sheet capacity and attractive Farm Credit debt; accretive to CAD per share
Rayonier
2 Based on market ranking at time of acquisition announcement.
Based on Rayonier estimates. Includes timber operations and customary non-timber revenue (e.g., recreational licenses). Excludes potential HBU and natural climate solutions opportunities.
Investor Presentation | March 2023
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