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Rayonier (RYN) Q1 FFO Beats Estimates, Revenues Rise Y/Y

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Rayonier Inc. (RYN - Free Report) reported first-quarter 2022 net income per share of 20 cents, surpassing the Zacks Consensus Estimate of 15 cents. The figure compares favorably with the prior-year quarter’s 8 cents per share.

Revenues soared 16% year over year to $222 million. However, the reported figure missed the Zacks Consensus Estimate of $243 million.

According to David Nunes, president and CEO of Rayonier, “We are pleased with our strong start to 2022. Adjusted EBITDA of $98.1 million was 41% higher than the prior year quarter, as favorable results in our Southern Timber, Pacific Northwest Timber and Real Estate segments more than offset lower Adjusted EBITDA in our New Zealand Timber segment. Following a solid start to the year, we are well on track to achieve our prior full-year Adjusted EBITDA guidance.”

Segmental Performance

In the first quarter, the pro-forma operating income at the company’s Southern Timber segment came in at $30.3 million, up 75.1% from the prior-year quarter’s $17.3 million. This rise was attributable to higher net stumpage realizations and volumes, partially offset by increased costs, lower non-timber income and higher depletion rates.

The Pacific Northwest Timber segment reported pro-forma operating income of $6.6 million, up from $1.3 million a year ago. The more than double improvement was due to higher net stumpage realizations and lower depletion rates, partially offset by increased costs, lower volumes and a decline in non-timber income.

The New Zealand Timber segment recorded pro-forma operating income of $5.4 million, down from the year-earlier quarter’s $14 million.  This was due to lower net stumpage realizations, fall in volumes, higher costs and unfavorable foreign exchange impacts ($1.5 million), partially offset by increased carbon credit sales and lower depletion rates.

Real Estate’s pro-forma operating income was $10.2 million, up from the year-ago period’s $1.7 million. This rise was driven by a significant increase in the number of acres sold, partially offset by a decrease in weighted-average prices.

The Trading segment reported $0.4 million pro-forma operating income in the first quarter compared with the prior-year quarter’s $0.2 million.

Balance Sheet

Rayonier exited first-quarter 2022 with $256.5 million in cash and cash equivalents (excluding Timber Funds), down from the $358.7 million recorded as of Dec 31, 2021.

The total long-term debt remained nearly unchanged at $1.2 billion compared to the end of 2021.

Under the at-the-market program, RYN issued roughly 726,000 shares during first-quarter 2022 at an average price of $41.46 per share.

Currently, Rayonier carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Rayonier Inc. Price, Consensus and EPS Surprise Rayonier Inc. Price, Consensus and EPS Surprise

Rayonier Inc. price-consensus-eps-surprise-chart | Rayonier Inc. Quote

Performance of Other REITs

Extra Space Storage Inc. (EXR - Free Report) reported first-quarter 2022 core FFO per share of $2.01, beating the Zacks Consensus Estimate of $1.86. The figure also came in 34% higher than the prior-year quarter’s $1.50.

EXR’s results reflect strong top-line growth backed by higher average rates for new and existing customers and higher late fees, partly muted by lower occupancy. The company also raised its 2022 guidance.

Quarterly revenues were $443.6 million, up 23.6% year over year. The top line also exceeded the Zacks Consensus Estimate of $432 million.

Extra Space Storage currently carries a Zacks Rank of 2 (Buy).

Boston Properties, Inc.’s (BXP - Free Report) first-quarter 2022 FFO per share of $1.82 beat the Zacks Consensus Estimate of $1.74. The figure also compared favorably with the year-ago quarter’s $1.56.

BXP’s quarterly results reflect decent growth in lease revenues. Also, it experienced strong leasing activity during the quarter.

Quarterly revenues from lease came in at $718.1 million, up 4.7% from $685.8 million in the year-ago quarter. Moreover, the figure surpassed the consensus mark of $700.6 million.

Boston Properties currently carries a Zacks Rank of 3 (Hold).

Vornado Realty Trust’s (VNO - Free Report) first-quarter 2022 FFO plus assumed conversions as adjusted per share of 79 cents topped the Zacks Consensus Estimate of 76 cents.

Vornado’s results display year-over-year growth in the same-store net operating income (NOI) in its New York, theMART and 555 California Street portfolios.

VNO’s total revenues came in at $442.1 million in the reported quarter, surpassing the Zacks Consensus Estimate of $422.3 million.

Further, on a year-over-year basis, both FFO per share and revenues grew 21.5% and 16.4%, respectively.

Vornado currently carries a Zacks Rank of 4 (Sell).

Note: Funds from operations (FFO) is a widely used metric to gauge the performance of REITs.