Rayonier Inc. ( (RYN) ) has released its Q3 earnings. Here is a breakdown of the information Rayonier Inc. presented to its investors.
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Rayonier Inc. is a timberland real estate investment trust that manages and leases approximately 2.7 million acres of timberlands across the United States and New Zealand, specializing in softwood timber production.
In its third quarter of 2024, Rayonier Inc. reported net income attributable to Rayonier of $28.8 million, translating to $0.19 per share, on revenues of $195.0 million. This is a notable increase compared to the previous year’s third quarter, where net income was $19.2 million on revenues of $201.6 million. The earnings report also highlighted a range of factors affecting the company’s performance, including legal settlements and disposition activities.
Key financial highlights include third quarter operating income of $27.6 million and adjusted EBITDA of $71.8 million, though both figures mark a decline compared to the previous year’s period. The Southern Timber segment demonstrated resilience, maintaining comparable adjusted EBITDA despite lower harvest volumes, while the Pacific Northwest Timber segment saw a 12% increase in adjusted EBITDA due to higher harvest volumes. Conversely, the New Zealand Timber segment experienced a significant decline in adjusted EBITDA due to decreased carbon credit sales and increased shipping costs.
Rayonier’s real estate operations showed a modest increase in adjusted EBITDA, driven by higher per-acre prices despite fewer acres sold. The company also made substantial progress in its $1 billion asset disposition initiative, closing several significant transactions post-quarter.
Looking ahead, Rayonier has adjusted its full-year guidance, projecting net income attributable to Rayonier between $343 million and $359 million, with expectations for continued strong real estate activity and adjusted EBITDA within a revised range of $275 million to $290 million. The company anticipates challenges in its timber segments due to recent asset dispositions and market conditions but remains focused on strategic initiatives to enhance shareholder value.
