Development and performance of timber REITs in the United States: a review and some prospects

Baral, Srijana; Mei, Bin

doi:10.1139/cjfr-2021-0085

Cited by 6 publications

(2 citation statements)

References 43 publications

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“…The public timberland investment sector in the U.S. is represented by three major REITs. Together, Weyerhaeuser, Rayonier, and PotlatchDeltic own or manage more than six million hectares of timberland [14]. The associated stocks and the exchange-traded funds that incorporate them are not strictly a "pure play" on timberland.…”

Section: Means Of Investing In Us Timberlandmentioning

confidence: 99%

Transaction Costs and Investment Interest in the U.S. South and the Pacific Northwest Timberland Regions

Hiegel

Siry

Mei

et al. 2023

Forests

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In 2020, a survey was conducted of timberland investment professionals. The focus of the survey was collecting and examining transaction cost data within the timberland investment space. The data collected were generally lacking in the public domain, as well as academic literature, yet it provides insight into the significant costs that are involved in timberland investing. The survey revealed that the U.S. South and the Pacific Northwest have significant differences in investor expectations for transaction costs. The objective of the current study was to explore the differences in transaction costs for the two regions and to uncover the relationships between (1) timberland transaction costs; (2) investment interest; and (3) prior experience in owning, investing, or managing timberland in either region. The findings of this work confirmed that transaction costs were a statistically significant predictor of investor interest in the U.S. South and the Pacific Northwest. The findings also showed that prior ownership, investment, or management experience in either region were a statistically significant predictor of investor interest in the U.S. South and the Pacific Northwest. Furthermore, this work explores factors that appear to rationalize the high investor interest in the Pacific Northwest, despite investor expectations of much higher transaction costs associated with timberland acquisition within this region.

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Section: Means Of Investing In Us Timberlandmentioning

confidence: 99%

Transaction Costs and Investment Interest in the U.S. South and the Pacific Northwest Timberland Regions

Hiegel

Siry

Mei

et al. 2023

Forests

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“…A timberland REIT is a company that owns or manages timberland and produces income primarily by selling timber. As of 2021, there were four public timberland REITs in the USA: Rayonier, PotlatchDeltic, Weyerhaeuser and CatchMark (Table 1), which owned or managed timberlands in 20 different states with a combined market capitalization of around $41 billion (Baral and Mei, 2022; WRDS, 2021). Besides these specialized real estate alternatives, the public commercial real estate market in the USA is very large with an estimated market size of $16 trillion (NAREIT, 2022).…”

Section: Introductionmentioning

confidence: 99%

Relationship of public farmland and timberland REITs with their private equity counterparts and selected asset classes

Baral

Mei²

2022

AFR

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PurposeThe purpose of this study is to examine the return sensitivity of public farmland and timberland real estate investment trusts (REITs) to private-equity farmland, timberland and real estate, long-term corporate bonds and large- and small-cap stocks. The study also examines time-dependent contributions of selected asset classes to farmland and timberland REIT volatility.Design/methodology/approachThe authors use a multi-factor asset pricing model under a seemingly unrelated regression framework to evaluate farmland and timberland REIT returns, and a state-space model with the Kalman filter to evaluate the time-dependent contributors of farmland and timberland REIT volatility. The authors first perform orthogonalized regressions to obtain pure independent factors, and then decompose volatility into individual asset components.FindingsSignificant loadings on financial assets are found for both farmland and timberland REITs, suggesting that they are generally driven by some common state variables. Large-cap stocks are found to be the major contributor of farmland and timberland REIT volatility, despite some differing patterns over time.Originality/valueEmpirical analysis of farmland REIT is very scarce. The authors compare the risk-return characteristics of farmland and timberland REITs under a state-space framework with the Kalman filter. This study can improve the understanding of the roles of farmland and timberland REITs in a multi-asset portfolio.

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A review of the financial performance of lumber futures and some prospects

Zhang,

Mei,

2023

Forest Policy and Economics

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Development and performance of timber REITs in the United States: a review and some prospects

Cited by 6 publications

References 43 publications

Transaction Costs and Investment Interest in the U.S. South and the Pacific Northwest Timberland Regions

Transaction Costs and Investment Interest in the U.S. South and the Pacific Northwest Timberland Regions

Relationship of public farmland and timberland REITs with their private equity counterparts and selected asset classes

A review of the financial performance of lumber futures and some prospects

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