About Us Client Resources Investment Strategy Timberland Management

Acquisition Strategy  
 
FIA’s extensive network of contacts, developed over many years of institutional timberland investing, enables the acquisition team to review virtually all significant timberland offerings. Acquiring numerous, distinct timberland tracts is a core part of FIA’s investment strategy providing the following advantages:  
 
Liquidity
 
Purchasing numerous properties allows for a more liquid timberland portfolio. Prudent timberland investors consider liquidation options prior to buying a property. Extremely large timberland tracts can only be sold to a forest products company, if one happens to be in an acquisition mode at the time, or to another institutional investor. FIA’s acquisition strategy focuses on timberland properties that trade in a broader universe of buyers and sellers, enhancing long-term liquidity of the timberland portfolio. Properties are acquired which are large enough to achieve economies of scale in acquisition and management, but not so large that liquidity, diversification and quality are sacrificed.
 
Diversification
 
Diversification is an important part of our acquisition strategy. Geographic diversification minimizes natural risk and optimizes market opportunities. Market opportunities are derived from the localized nature of timber markets. Prices and product demand vary substantially from one market to another. By diversifying over several market areas the potential is greater for always having a strong market in which to sell. By owning timberland in multiple locations our clients have minimal exposure to local adverse physical events and maximum exposure to opportunities for return enhancement. Age diversification is obtained by building a portfolio of numerous properties. By owning timber of all ages, investors always have timber that is economically mature and ready to sell into strong markets. In addition, owning timber of all ages allows investors to profit by responding to changes in product demand.
 
Quality
 
Acquiring properties in numerous markets allows for a greater number of properties to be analyzed prior to every purchase. This selectivity enables FIA to specialize in high-quality timberland investments for clients. Quality timberland is more responsive to intensive management because soils and timber are more productive, meaning higher returns for investors. Quality timberland is more liquid because there’s more demand for it.
 

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