Acquisitions
Our extensive network of contacts, developed over many years of timberland investing, enables our acquisition team to review virtually all significant U.S. timberland offerings, as well as most international opportunities. Acquiring multiple, distinct, high-quality timberland properties is a core part of our investment strategy.
Disciplined Underwriting
- Our established investment process uses sound underwriting standards.
- Our valuation methods use both proprietary and third-party supply, demand and pricing inputs.
- We use conservative growth and yield assumptions to model realistic outcomes.
Understanding Risk
- We complete a risk assessment and valuation variance analysis on every targeted acquisition.
- All projected investment returns are sensitivity-tested.
- A thorough analysis of markets, infrastructure, forest inventory, prior management and environmental quality is a key component of our investment process.
Diversification
- Geographic diversification minimizes natural risks and optimizes market opportunities.
- Pricing, supply and demand for both timber and timberland are very localized, and diversifying in multiple markets substantially hedges risk.
- Timber age diversification can regulate cash flow and enhance timber sale optionality.
- Timber species diversification provides exposure to multiple demand sources and mitigates insect and disease risk.
Quality
- Acquiring high-quality properties is an FIA hallmark.
- Quality timberland is more responsive to intensive management, which typically results in higher returns for investors over the long term.
- The demand for high-quality timberland is greater, thereby increasing liquidity for both the timber and timberland.
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