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Rayonier (RYN) Q1 Earnings Beat Estimates, Revenues Lag
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Rayonier Inc. (RYN - Free Report) reported first-quarter 2024 pro-forma net income per share of 5 cents, beating the Zacks Consensus Estimate by a penny. Moreover, the figure increased significantly from the prior-year quarter’s 1 cent.
Rayonier’s Southern Timber and New Zealand Timber segments displayed solid results. However, weakness in the Pacific Northwest Timber and Real Estate segments was noticed.
Total revenues came in at $168.1 million, which missed the Zacks Consensus Estimate of $179.1 million. On a year-over-year basis, the figure decreased 6.1%.
According to Mark McHugh, president and CEO of Rayonier, “Overall, we delivered modestly improved first quarter results relative to the prior year quarter, which were in line with our expectations at the start of the year. We achieved total Adjusted EBITDA of $56.2 million, representing a 3% increase versus the prior year period, as stronger results from our Southern Timber and New Zealand Timber segments more than offset lower results in our Pacific Northwest Timber and Real Estate segments.”
Segmental Performance
In the first quarter, the pro-forma operating income at the company’s Southern Timber segment came in at $23 million, which increased 3.6% from the prior-year quarter’s $22.2 million. Our estimate for the metric was $22.2 million. The increase was due to favorable costs and higher volumes, partially offset by lower net stumpage realizations and lower non-timber income.
The Pacific Northwest Timber segment reported a pro-forma operating loss of $4.4 million compared to a loss of $3.5 million a year ago. Our estimate for the metric was a loss of $2.3 million. The decline was attributable to lower net stumpage realizations, higher depletion expenses and decreased volumes.
The New Zealand Timber segment recorded pro-forma operating income of $7.4 million, up from the year-earlier quarter’s $1.6 million. This rise was due to favorable foreign exchange impacts, higher carbon credit income, the prior year’s write-off of timber basis due to a tropical cyclone casualty event, lower costs and lower depletion rates, partially offset by lower net stumpage realizations.
Real Estate’s pro-forma operating loss was $0.1 million against the year-ago period income of $0.9 million. Our estimate for the metric was $0.6 million. The fewer acres sold and lower weighted-average prices led to the fall, partially offset by favorable deferred revenue adjustments.
The Trading segment reported breakeven results for pro-forma operating income compared to $0.3 million in the prior-year quarter. Our estimate for the metric was the same as reported.
Balance Sheet
Rayonier exited the first quarter of 2024 with $159.9 million in cash and cash equivalents, down from $207.7 million as of Dec 31, 2023.
Highwoods Properties Inc. (HIW - Free Report) reported first-quarter 2024 funds from operations (FFO) per share of 89 cents, missing the Zacks Consensus Estimate of 90 cents. The figure was also lower than the prior-year quarter’s 98 cents.
Quarterly results reflect a fall in occupancy and higher operating expenses. HIW also revised its outlook for 2024.
Welltower Inc.’s (WELL - Free Report) first-quarter 2024 normalized FFO per share of $1.01 surpassed the Zacks Consensus Estimate of 94 cents. The reported figure improved 18.8% year over year.
Results reflect better-than-anticipated revenues. The total portfolio same-store net operating income (SSNOI) increased year over year, driven by SSNOI growth in the seniors housing operating portfolio. WELL also raised its guidance for 2024.
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) Q1 Earnings Beat Estimates, Revenues Lag
Rayonier Inc. (RYN - Free Report) reported first-quarter 2024 pro-forma net income per share of 5 cents, beating the Zacks Consensus Estimate by a penny. Moreover, the figure increased significantly from the prior-year quarter’s 1 cent.
Rayonier’s Southern Timber and New Zealand Timber segments displayed solid results. However, weakness in the Pacific Northwest Timber and Real Estate segments was noticed.
Total revenues came in at $168.1 million, which missed the Zacks Consensus Estimate of $179.1 million. On a year-over-year basis, the figure decreased 6.1%.
According to Mark McHugh, president and CEO of Rayonier, “Overall, we delivered modestly improved first quarter results relative to the prior year quarter, which were in line with our expectations at the start of the year. We achieved total Adjusted EBITDA of $56.2 million, representing a 3% increase versus the prior year period, as stronger results from our Southern Timber and New Zealand Timber segments more than offset lower results in our Pacific Northwest Timber and Real Estate segments.”
Segmental Performance
In the first quarter, the pro-forma operating income at the company’s Southern Timber segment came in at $23 million, which increased 3.6% from the prior-year quarter’s $22.2 million. Our estimate for the metric was $22.2 million. The increase was due to favorable costs and higher volumes, partially offset by lower net stumpage realizations and lower non-timber income.
The Pacific Northwest Timber segment reported a pro-forma operating loss of $4.4 million compared to a loss of $3.5 million a year ago. Our estimate for the metric was a loss of $2.3 million. The decline was attributable to lower net stumpage realizations, higher depletion expenses and decreased volumes.
The New Zealand Timber segment recorded pro-forma operating income of $7.4 million, up from the year-earlier quarter’s $1.6 million. This rise was due to favorable foreign exchange impacts, higher carbon credit income, the prior year’s write-off of timber basis due to a tropical cyclone casualty event, lower costs and lower depletion rates, partially offset by lower net stumpage realizations.
Real Estate’s pro-forma operating loss was $0.1 million against the year-ago period income of $0.9 million. Our estimate for the metric was $0.6 million. The fewer acres sold and lower weighted-average prices led to the fall, partially offset by favorable deferred revenue adjustments.
The Trading segment reported breakeven results for pro-forma operating income compared to $0.3 million in the prior-year quarter. Our estimate for the metric was the same as reported.
Balance Sheet
Rayonier exited the first quarter of 2024 with $159.9 million in cash and cash equivalents, down from $207.7 million as of Dec 31, 2023.
Rayonier Inc. Price, Consensus and EPS Surprise
Rayonier Inc. price-consensus-eps-surprise-chart | Rayonier Inc. Quote
Currently, Rayonier carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other REITs
Highwoods Properties Inc. (HIW - Free Report) reported first-quarter 2024 funds from operations (FFO) per share of 89 cents, missing the Zacks Consensus Estimate of 90 cents. The figure was also lower than the prior-year quarter’s 98 cents.
Quarterly results reflect a fall in occupancy and higher operating expenses. HIW also revised its outlook for 2024.
Welltower Inc.’s (WELL - Free Report) first-quarter 2024 normalized FFO per share of $1.01 surpassed the Zacks Consensus Estimate of 94 cents. The reported figure improved 18.8% year over year.
Results reflect better-than-anticipated revenues. The total portfolio same-store net operating income (SSNOI) increased year over year, driven by SSNOI growth in the seniors housing operating portfolio. WELL also raised its guidance for 2024.
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.