Bolt-on additions will further enhance Southern Timberlands
portfolio and expand footprint in attractive markets
SEATTLE, July 25,
2024 /PRNewswire/ -- Weyerhaeuser
Company (NYSE: WY) today announced acquisitions totaling
84,300 acres of high-quality timberlands in Alabama for $244
million. Secured through multiple transactions, the
collective acreage is comprised of mature, highly productive
timberlands that are well-integrated with existing Weyerhaeuser
operations. Additionally, the acquisitions are expected to deliver
portfolio-leading cash flow and harvest tons per acre within the
company's Southern Timberlands business.
Key attributes of the acquisitions:
- Located in one of the strongest inland sawlog and fiber markets
in the U.S. South
- Fee ownership with 74 percent planted pine acreage and strong
site productivity
- Mature planted pine age class expected to produce an average
harvest of 6.4 tons per acre (or 540,000 tons) annually over the
first 10 years
- Expected average Adjusted EBITDA of approximately $150 per acre (or $12.5
million) annually from timber operations over the first 10
years
"These transactions represent attractive opportunities to
enhance our portfolio with high-quality, well-managed timberlands
that generate solid returns for our shareholders," said Devin
W. Stockfish, president and chief executive officer. "In addition,
they demonstrate our disciplined approach to timberlands growth and
reinforce our longer-term outlook that the asset class will
appreciate in value over time. Including these transactions, we
will have completed approximately $775
million against our target to grow our Timberlands portfolio
through $1 billion of disciplined
investments by the end of 2025."
Of the multiple transactions involved, one closed in the second
quarter of 2024 for $48 million. The
remaining transactions are under contract and expected to close by
year end, subject to customary closing conditions. When all
acquisitions are finalized, Weyerhaeuser will own or manage
approximately 695,000 acres of timberlands in Alabama, along with two mills, a Timberlands
office and seed orchard — employing more than 350 people in the
state.
ABOUT WEYERHAEUSER
Weyerhaeuser Company, one of the
world's largest private owners of timberlands, began operations in
1900 and today owns or controls approximately 10.5 million acres of
timberlands in the U.S., as well as 14 million acres of timberlands
managed under long-term licenses in Canada. Weyerhaeuser has been a global leader
in sustainability for more than a century and manages 100 percent
of its timberlands on a fully sustainable basis in compliance with
internationally recognized sustainable forestry standards.
Weyerhaeuser is also one of the largest manufacturers of wood
products in North America and
operates additional business lines around real estate, climate
solutions, energy and natural resources, among others. In 2023, the
company generated $7.7 billion in net
sales and employed approximately 9,300 people who serve customers
worldwide. Operated as a real estate investment trust,
Weyerhaeuser's common stock trades on the New York Stock Exchange
under the symbol WY. Learn more at www.weyerhaeuser.com.
NON-GAAP FINANCIAL MEASURES
This news release references forward-looking estimates of Adjusted
EBITDA, which is a non-GAAP measure that management uses to
evaluate the performance of the company. Adjusted EBITDA, as we
define it, is operating income adjusted for depreciation,
depletion, amortization, basis of real estate sold and special
items. Adjusted EBITDA should not be considered in isolation from,
and is not intended to represent an alternative to, our GAAP
results. We have not provided a reconciliation of this
forward-looking non-GAAP financial measure to the most comparable
GAAP measure of net income because Adjusted EBITDA, as we define
it, excludes the impact of certain items listed above in our
definition of Adjusted EBITDA, and management cannot estimate these
items or the impact they will have on Adjusted EBITDA on a
forward-looking basis without unreasonable effort. As a result,
investors may be unable to accurately compare the expected impact
of the acquisitions to our historical results or the results or
expected results of other companies that may have treated such
matters differently. Nonetheless, management believes that
providing this forward-looking non-GAAP information about the
acquisitions is useful to investors, and given the uncertain nature
of forward-looking statements, we believe investors are able to
take into account the inherent limitations of this forward-looking
non-GAAP information. We cannot predict the occurrence, timing or
amount of any of the items that we exclude from our Adjusted EBITDA
estimate. Accordingly, the actual effect of these items, when
determined, could potentially be significant to the calculation of
Adjusted EBITDA and actual results may differ materially from our
estimate.
FORWARD-LOOKING STATEMENTS
This news release contains statements that are forward-looking
within the meaning of the Private Securities Litigation Reform Act
of 1995 including, without limitation, with respect to the
company's expectations concerning the occurrence, timing and
expected financial contributions and economic results of its
acquisitions of certain Alabama
timberlands, including expected synergies, Adjusted EBITDA,
Adjusted EBITDA per acre and average annual harvest tons.
Forward-looking statements may be identified by our use of certain
words in such statements, including without limitation words such
as "expected," and "will" and similar words, terms and phrases
using such terms and words. We also reference expected performance
through, or events to occur by or at, a future date, and such
references also constitute forward-looking statements. All
forward-looking statements speak only as of the date hereof, are
based on current expectations and involve and are subject to a
number of assumptions, risks and uncertainties that could cause
actual results to differ materially from such forward-looking
statements. These risks and uncertainties include, but are not
limited to, those identified in our 2023 Annual Report on Form
10-K, as well as those set forth from time to time in our other
public statements, reports, registration statements, prospectuses,
information statements and other filings with the Securities and
Exchange Commission. In addition, Weyerhaeuser may not be able to
complete the remaining portions of the transaction within the
stated time period, or at all, because of a number of factors,
including without limitation: the occurrence of any event, change
or other circumstances that could give rise to a termination of the
transaction under the terms of the purchase and sale agreement
governing the transaction, or the failure to satisfy other closing
conditions. There is no guarantee that any of the events
anticipated by these forward-looking statements will occur. If any
of the events occur, there is no guarantee what effect they will
have on the company's business, results of operations, cash flows,
financial condition and future prospects. The company undertakes no
obligation to update these forward-looking statements after the
date of this news release.
For more information contact:
Weyerhaeuser
Analysts – Andy Taylor, 206-539-3907
Media – Nancy Thompson,
919-861-0342
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SOURCE Weyerhaeuser Company