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Rayonier (RYN) Q4 Earnings Meet Estimates, Revenues Lag
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Rayonier Inc. (RYN - Free Report) reported fourth-quarter 2023 pro-forma net income per share of 17 cents, in line with the Zacks Consensus Estimate. Moreover, the figure increased 54.5% from the prior-year quarter’s 11 cents.
Rayonier’s Real Estate segment displayed solid results. However, weakness in the Southern Timber, Pacific Northwest Timber, New Zealand Timber and Trading segments was noticed.
Quarterly pro forma revenues came in at $225.5 million, which missed the Zacks Consensus Estimate of $235.9 million. On a year-over-year basis, the figure decreased 8.2%. Total revenues were $467.4 million during the quarter.
According to David Nunes, CEO of Rayonier, “We are pleased with our overall financial performance for the full-year 2023, particularly in light of the challenging and uncertain market conditions that we faced throughout the year. Full-year 2023 Adjusted EBITDA of $296.5 million declined 6% versus the prior year, as lower results in our Timber segments were largely offset by a significantly higher contribution from our Real Estate segment.”
In 2023, RYN reported pro forma net income per share of 36 cents, down from 62 cents in the prior year. However, the figure was in line with the Zacks Consensus Estimate. Pro forma revenues of $814.7 million fell 7.3% year over year from $878.6 million. The figure lagged the Zacks Consensus Estimate of $825.4 million.
Segmental Performance
In the fourth quarter, the pro-forma operating income at the company’s Southern Timber segment came in at $13.7 million, which decreased 30.5% from the prior-year quarter’s $19.7 million. Our estimate for the metric was $9.9 million. The decline was due to lower net stumpage realizations, costs associated with long-term timber lease expirations, higher depletion rates and higher overhead and other costs, partially offset by higher volumes and higher non-timber income.
The Pacific Northwest Timber segment reported a pro-forma operating loss of $2.5 million against an income of $3.1 million a year ago. Our estimate for the metric was a loss of $0.7 million. The decline was attributable to lower net stumpage realizations, decreased volumes, higher costs and the prior year period adjustment to a timber write-off resulting from a casualty event, partially offset by lower depletion rates and higher non-timber income.
The New Zealand Timber segment recorded pro-forma operating income of $6.8 million, down from the year-earlier quarter’s $8 million. We projected the metric to be $3.8 million. This fall was due to lower carbon credit income, lower volume and higher costs, partially offset by favorable foreign exchange impacts and higher overall net stumpage realizations.
Real Estate’s pro-forma operating income was $32.8 million, higher than the year-ago period of $4.9 million. Our estimate for the metric was $31.4 million. The higher number of acres sold led to the rise, partially offset by lower weighted-average prices.
The Trading segment reported a $0.1 million pro-forma operating income in the fourth quarter, which fell from $0.3 million in the prior-year quarter. Our estimate for the metric was the same as the reported number.
Balance Sheet
Rayonier exited the fourth quarter of 2023 with $207.7 million in cash and cash equivalents, up from $114.3 million as of Dec 31, 2022.
2024 Guidance
For 2024, management expects earnings per share to be in the range of 40-54 cents. The Zacks Consensus Estimate for the same is currently pegged at 41 cents.
The adjusted EBITDA is anticipated to be between $290 million and $325 million.
SL Green Realty Corp. (SLG - Free Report) reported fourth-quarter 2023 FFO per share of 72 cents, lagging the Zacks Consensus Estimate of 88 cents per share. The figure fell 50.7% from the year-ago quarter’s $1.46.
The results reflect lower-than-anticipated revenues despite decent leasing activity in its Manhattan portfolio. However, lower interest expenses and a rise in same-store cash NOI during the quarter were commendable. SLG raised its guidance for 2024 FFO per share.
Crown Castle Inc. (CCI - Free Report) reported fourth-quarter 2023 adjusted funds from operations (AFFO) per share of $1.82, outpacing the Zacks Consensus Estimate of $1.79. However, the reported figure declined 1.6% from the year-ago quarter.
Results reflect better-than-anticipated revenues aided by healthy site-rental revenue growth. However, higher interest expense on debt obligations and lower contributions from adjusted EBITDA were undermining factors. CCI maintained its outlook for 2024.
Alexandria Real Estate Equities, Inc. (ARE - Free Report) reported fourth-quarter 2023 AFFO per share of $2.28, missing the Zacks Consensus Estimate by a penny. However, the reported figure climbed 6.5% from the year-ago quarter.
Results reflect lower-than-anticipated AFFO per share. However, a rise in revenues, aided by decent leasing activity and rental rate growth, supports the results to some extent. ARE also issued its 2024 outlook.
Note- Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
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Rayonier (RYN) Q4 Earnings Meet Estimates, Revenues Lag
Rayonier Inc. (RYN - Free Report) reported fourth-quarter 2023 pro-forma net income per share of 17 cents, in line with the Zacks Consensus Estimate. Moreover, the figure increased 54.5% from the prior-year quarter’s 11 cents.
Rayonier’s Real Estate segment displayed solid results. However, weakness in the Southern Timber, Pacific Northwest Timber, New Zealand Timber and Trading segments was noticed.
Quarterly pro forma revenues came in at $225.5 million, which missed the Zacks Consensus Estimate of $235.9 million. On a year-over-year basis, the figure decreased 8.2%. Total revenues were $467.4 million during the quarter.
According to David Nunes, CEO of Rayonier, “We are pleased with our overall financial performance for the full-year 2023, particularly in light of the challenging and uncertain market conditions that we faced throughout the year. Full-year 2023 Adjusted EBITDA of $296.5 million declined 6% versus the prior year, as lower results in our Timber segments were largely offset by a significantly higher contribution from our Real Estate segment.”
In 2023, RYN reported pro forma net income per share of 36 cents, down from 62 cents in the prior year. However, the figure was in line with the Zacks Consensus Estimate. Pro forma revenues of $814.7 million fell 7.3% year over year from $878.6 million. The figure lagged the Zacks Consensus Estimate of $825.4 million.
Segmental Performance
In the fourth quarter, the pro-forma operating income at the company’s Southern Timber segment came in at $13.7 million, which decreased 30.5% from the prior-year quarter’s $19.7 million. Our estimate for the metric was $9.9 million. The decline was due to lower net stumpage realizations, costs associated with long-term timber lease expirations, higher depletion rates and higher overhead and other costs, partially offset by higher volumes and higher non-timber income.
The Pacific Northwest Timber segment reported a pro-forma operating loss of $2.5 million against an income of $3.1 million a year ago. Our estimate for the metric was a loss of $0.7 million. The decline was attributable to lower net stumpage realizations, decreased volumes, higher costs and the prior year period adjustment to a timber write-off resulting from a casualty event, partially offset by lower depletion rates and higher non-timber income.
The New Zealand Timber segment recorded pro-forma operating income of $6.8 million, down from the year-earlier quarter’s $8 million. We projected the metric to be $3.8 million. This fall was due to lower carbon credit income, lower volume and higher costs, partially offset by favorable foreign exchange impacts and higher overall net stumpage realizations.
Real Estate’s pro-forma operating income was $32.8 million, higher than the year-ago period of $4.9 million. Our estimate for the metric was $31.4 million. The higher number of acres sold led to the rise, partially offset by lower weighted-average prices.
The Trading segment reported a $0.1 million pro-forma operating income in the fourth quarter, which fell from $0.3 million in the prior-year quarter. Our estimate for the metric was the same as the reported number.
Balance Sheet
Rayonier exited the fourth quarter of 2023 with $207.7 million in cash and cash equivalents, up from $114.3 million as of Dec 31, 2022.
2024 Guidance
For 2024, management expects earnings per share to be in the range of 40-54 cents. The Zacks Consensus Estimate for the same is currently pegged at 41 cents.
The adjusted EBITDA is anticipated to be between $290 million and $325 million.
Rayonier Inc. Price, Consensus and EPS Surprise
Rayonier Inc. price-consensus-eps-surprise-chart | Rayonier Inc. Quote
Currently, Rayonier carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other REITs
SL Green Realty Corp. (SLG - Free Report) reported fourth-quarter 2023 FFO per share of 72 cents, lagging the Zacks Consensus Estimate of 88 cents per share. The figure fell 50.7% from the year-ago quarter’s $1.46.
The results reflect lower-than-anticipated revenues despite decent leasing activity in its Manhattan portfolio. However, lower interest expenses and a rise in same-store cash NOI during the quarter were commendable. SLG raised its guidance for 2024 FFO per share.
Crown Castle Inc. (CCI - Free Report) reported fourth-quarter 2023 adjusted funds from operations (AFFO) per share of $1.82, outpacing the Zacks Consensus Estimate of $1.79. However, the reported figure declined 1.6% from the year-ago quarter.
Results reflect better-than-anticipated revenues aided by healthy site-rental revenue growth. However, higher interest expense on debt obligations and lower contributions from adjusted EBITDA were undermining factors. CCI maintained its outlook for 2024.
Alexandria Real Estate Equities, Inc. (ARE - Free Report) reported fourth-quarter 2023 AFFO per share of $2.28, missing the Zacks Consensus Estimate by a penny. However, the reported figure climbed 6.5% from the year-ago quarter.
Results reflect lower-than-anticipated AFFO per share. However, a rise in revenues, aided by decent leasing activity and rental rate growth, supports the results to some extent. ARE also issued its 2024 outlook.
Note- Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.