One of the world’s largest forest-based real estate trusts has exited its New Zealand forest estates with US-based Rayonier selling its 77% stake to a new joint venture managed by The Rohatyn Group. Announced today (US time), the US $ 710 million deal will see Rayonier, which still has extensive forest interests in the United States, sell off more than 412,000 acres of New Zealand-based assets to reduce leverage and return capital to shareholders through a special dividend.
“We have now completed roughly $1.45 billion of dispositions since introducing our asset disposition and capital structure realignment plan in November 2023—significantly exceeding the original $1 billion target,” said Mark McHugh, President and Chief Executive Officer of Rayonier.
“The success of this plan has allowed us to achieve our new leverage target in a manner that has been accretive to both CAD* and NAV per share, as well as better position Rayonier to create long-term value for our shareholders going forward.”
“We want to extend our gratitude to the team in New Zealand, which has done an outstanding job in managing these highly productive assets, and we are pleased to transfer the stewardship of this business to TRG, a well-regarded manager of forestry assets in the region,” McHugh said.
The world’s third-largest REIT invested in forest-based assets (by market cap), Rayonier still manages more than 1.75 million acres in the US South, in addition to 308,000 acres of timberland in the Pacific Northwest. Included in the sale are the Matariki Forests assets, which manage PEFC and FSC-certified plantation assets in Southland, Otago, Canterbury, Southern North Island, Hawkes Bay, Bay of Plenty, and Northland.
