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Rayonier (RYN) to Acquire Timberlands in U.S. South Markets
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Timber REIT, Rayonier Inc. (RYN - Free Report) is expanding its presence through timberlands acquisitions in the U.S. South coastal Atlantic markets. Particularly, the company has entered into three transactions with separate sellers for the purchase of around 95,100 acres of industrial timberlands situated in Florida, Georgia and South Carolina. The total purchase price of these timberlands is around $217 million.
The timberlands are situated in the top three U.S. South timber markets based on average composite stumpage price by region and serve a varied customer base, including multiple pulpwood, grade and export customers.
Moreover, these timberlands are complementary to Rayonier’s existing landholdings. In fact, the acquisitions increase the company’s ownership in the U.S. South coastal Atlantic markets by around 15%.
Further, these acquisitions are likely to produce a solid cash yield from timber harvest operations and boost the company’s overall cash flow. Over the medium term, Rayonier is targeting an annual expansion of around $13 million and $10 million in adjusted EBITDA and Cash Available for Distribution, respectively.
However, shares of Rayonier have underperformed the Zacks categorized Building Products - Wood industry in the past three months. Shares of the company gained 6.6%, whereas the industry increased 10.0%.
In fact, though Rayonier’s constant efforts to monetize higher and better use timberlands and disciplined acquisitions are encouraging, it is likely to be affected by stiff competition from national and local players, as well as foreign exchange fluctuations.
CoreSite Realty currently has a long-term growth rate of 19.1%.
Piedmont Office Realty’s estimates for 2017 moved north by 3.0% to $1.73, over the past 60 days.
Outfront Media is a steady performer, having exceeded the Zacks Consensus Estimate in each of the four trailing quarters, with an average beat of 11.26%. Moreover, it has a long-term growth rate of 6.8%.
Note: All EPS numbers presented in this write up represent funds from operations (“FFO”) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
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Rayonier (RYN) to Acquire Timberlands in U.S. South Markets
Timber REIT, Rayonier Inc. (RYN - Free Report) is expanding its presence through timberlands acquisitions in the U.S. South coastal Atlantic markets. Particularly, the company has entered into three transactions with separate sellers for the purchase of around 95,100 acres of industrial timberlands situated in Florida, Georgia and South Carolina. The total purchase price of these timberlands is around $217 million.
The timberlands are situated in the top three U.S. South timber markets based on average composite stumpage price by region and serve a varied customer base, including multiple pulpwood, grade and export customers.
Moreover, these timberlands are complementary to Rayonier’s existing landholdings. In fact, the acquisitions increase the company’s ownership in the U.S. South coastal Atlantic markets by around 15%.
Further, these acquisitions are likely to produce a solid cash yield from timber harvest operations and boost the company’s overall cash flow. Over the medium term, Rayonier is targeting an annual expansion of around $13 million and $10 million in adjusted EBITDA and Cash Available for Distribution, respectively.
However, shares of Rayonier have underperformed the Zacks categorized Building Products - Wood industry in the past three months. Shares of the company gained 6.6%, whereas the industry increased 10.0%.
In fact, though Rayonier’s constant efforts to monetize higher and better use timberlands and disciplined acquisitions are encouraging, it is likely to be affected by stiff competition from national and local players, as well as foreign exchange fluctuations.
Currently Rayonier has a Zacks Rank #4 (Sell).
Stocks to Consider
Better-ranked stocks in the REIT space include CoreSite Realty Corporation (COR - Free Report) , Piedmont Office Realty Trust, Inc. (PDM - Free Report) and Outfront Media Inc. (OUT - Free Report) . All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CoreSite Realty currently has a long-term growth rate of 19.1%.
Piedmont Office Realty’s estimates for 2017 moved north by 3.0% to $1.73, over the past 60 days.
Outfront Media is a steady performer, having exceeded the Zacks Consensus Estimate in each of the four trailing quarters, with an average beat of 11.26%. Moreover, it has a long-term growth rate of 6.8%.
Note: All EPS numbers presented in this write up represent funds from operations (“FFO”) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>