- Returning $0.14 per share
supplemental dividend, resulting in $0.90 per share of total dividends based on 2023
results
- Delivering total cash return to shareholders of $783 million, or approximately 80 percent of
Adjusted Funds Available for Distribution, based on 2023
results
SEATTLE, Jan. 25,
2024 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY)
today announced that its board of directors declared a supplemental
dividend of $0.14 per share on the common stock of the
company, payable in cash on February 27, 2024, to holders of
record of such common stock as of the close of business
on February 16, 2024.
In 2023, Weyerhaeuser generated Adjusted Funds Available for
Distribution (Adjusted FAD) of $986
million. Including the supplemental dividend to be paid on
February 27, 2024, Weyerhaeuser is
returning $0.90 per share of cash
dividends to shareholders based on 2023 financial results,
including:
- $556 million, or $0.76 per share, of quarterly base dividends paid
in 2023; and
- $102 million, or $0.14 per share, from the supplemental dividend
declared today.
Including $125 million of shares
repurchased during 2023, Weyerhaeuser is returning $783 million in total cash to shareholders based
on 2023 results, or approximately 80 percent of 2023 Adjusted FAD,
which is at the high end of the company's targeted annual payout
range of 75 to 80 percent of Adjusted FAD. As of December 31, 2023, the company had approximately
$250 million of remaining capacity
under the previously announced $1
billion share repurchase program authorized by the
Weyerhaeuser board of directors in September
2021.
"We are pleased to announce the supplemental dividend and total
cash return associated with our 2023 financial results," said Devin
W. Stockfish, president and chief executive officer. "Upon payment
of the supplemental dividend declared today, we will have returned
nearly $4.6 billion through cash
dividends and share repurchase since the first full year of our new
cash return framework in 2021. We continue to believe this
framework will enhance our ability to drive long-term shareholder
value by returning meaningful and appropriate amounts of cash back
to our shareholders across a variety of market conditions."
"As we move forward in 2024," Stockfish continued, "our cash
return commitment will continue to be supported by our sustainable
quarterly base dividend, which we intend to grow by 5 percent
annually through 2025. We plan to supplement our base dividend, as
appropriate, with an additional variable return of cash to achieve
a targeted total return to shareholders of 75 to 80 percent of
annual Adjusted FAD. As we have demonstrated, we have the
flexibility to return this additional cash either in the form of a
supplemental cash dividend or through opportunistic share
repurchase."
ABOUT WEYERHAEUSER
Weyerhaeuser Company, one of the
world's largest private owners of timberlands, began operations in
1900. We own or control approximately 10.5 million acres of
timberlands in the U.S. and manage additional timberlands under
long-term licenses in Canada. We
manage these timberlands on a sustainable basis in compliance with
internationally recognized forestry standards. We are also one of
the largest manufacturers of wood products in North America. Our company is a real estate
investment trust. In 2023, we generated $7.7
billion in net sales and employed approximately 9,300 people
who serve customers worldwide. Our common stock trades on the New
York Stock Exchange under the symbol WY. Learn more at
www.weyerhaeuser.com.
FORWARD-LOOKING STATEMENTS AND NON-GAAP MEASURES
This
news release contains statements within the meaning of the Private
Securities Litigation Reform Act of 1995 concerning the company's
dividend framework and its expectations concerning the amount,
timing, growth and occurrence of future cash dividends and share
repurchase activity, as well as the company's ability to drive
long-term shareholder value and its commitment to return cash to
shareholders in the form of cash dividends and share repurchase.
Forward-looking statements are generally identified by words such
as "annual," "believe," "commitment," "continue," "forward,"
"intend," "plan," "sustainable," "targeted," "will," and similar
words and expressions referencing future events and dates.
Forward-looking statements are based on our current expectations
and assumptions, the accuracy of which are subject to a number of
risks and uncertainties that could cause actual results to differ
materially from those described in the forward-looking statements.
These risks and uncertainties include, but are not limited to,
those identified in our 2022 Annual Report on Form 10-K, as well as
those set forth from time to time in our other public statements
and reports, including reports, registration statements,
prospectuses, information statements and other filings with the
Securities and Exchange Commission.
It is not possible to predict or identify all risks and
uncertainties that might affect the accuracy of our forward-looking
statements and, consequently, our descriptions of such risks and
uncertainties should not be considered exhaustive. Forward-looking
statements speak only as of the date they are made, and we
undertake no obligation to publicly update or revise any
forward-looking statements, whether because of new information,
future events, or otherwise.
Also included in this news release are references to Adjusted
FAD, which is a non-GAAP financial measure. Adjusted FAD may not be
comparable to similarly named or captioned non-GAAP financial
measures of other companies due to potential inconsistencies in how
such measures are calculated. Adjusted FAD measures, when
presented, should not be considered in isolation from, and are not
intended to represent an alternative to, our GAAP results.
RECONCILIATION OF ADJUSTED FAD TO NET CASH FROM
OPERATIONS
Adjusted FAD, a non-GAAP measure, is defined by
Weyerhaeuser as net cash from operations adjusted for capital
expenditures and significant non-recurring items. We reconcile
Adjusted FAD to net cash from operations, as that is the most
directly comparable U.S. GAAP measure. We believe the measure
provides meaningful supplemental information for investors about
our liquidity.
The table below reconciles Adjusted FAD to net cash from
operations:
(millions)
|
|
|
2023
Full
Year
|
Net cash from
operations
|
|
|
$1,433
|
Capital
expenditures(1)
|
|
|
(447)
|
Adjusted
FAD
|
|
|
$986
|
|
(1) Includes $7 million
of capitalized interest.
|
For more information contact:
Analysts –
Andy Taylor, 206-539-3907
Media – Nancy Thompson,
919-861-0342
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SOURCE Weyerhaeuser Company