How to Read This Book

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1 Timberland Markets: Transactions, Values and Market Research Tom Harris, Sara Baldwin, Jacek Siry, & Jonathan Smith Timber Mart-South Athens, GA, USA

2 September, 2013 Authors: Tom Harris, Sara Baldwin, Jacek Siry, and Jonathan Smith Copyright 2013 by Timber Mart-South, Inc. Publisher: Timber Mart-South, Inc. Mailing address: Timber Mart-South, Warnell School of Forestry and Natural Resources, University of Georgia, 180 E. Green Street, Athens, GA , USA. Phone: (706) Fax: (706) Web site: This publication is copyrighted under the statutes of the United States. The compilation of facts and information herein contained are the subject of private property rights of the publisher. Reproduction or transmission, either manually or electronically, in whole or in part, without express permission of the owner or other unauthorized use, is not permitted. Publisher provides the information herein as a convenience to its readers. Publisher does not represent or endorse the truth, accuracy, reliability or completeness of any of the information contained in this publication. PUBLISHER PROVIDES THE INFORMATION IN THIS PUBLICATION ON AN AS IS AND AS AVAILABLE BASIS, WITH NO WARRANTIES WHATSOEVER. THOSE WHO USE PRICES PUBLISHED HERIN FOR A SPECIFIC PURPOSE, SALE OR CONTRACT DO SO AT THEIR OWN RISK. UNDER NO CIRCUMSTANCE WILL PUBLISHER HAVE ANY LIABILITY FOR ANY LOSS OR DAMAGE WHATEVER CAUSED BY ANY READER S RELIANCE ON INFORMATION OBTAINED THROUGH THIS PUBLICATION. ISBN The University of Georgia Warnell School of Forestry & Natural Resources is under contract with the Frank W. Norris Foundation to compile and publish Timber Mart-South. How to Read This Book By Table of Contents: there are two, one Outline and one Detailed By Year: all the analysis, lists and articles are in a chapter by year published. By Author or Topic: see Appendix B for an expanded Contributor List, Articles by Topic, and Article by Author

3 Table of Contents: Outline Introduction Executive Summary Transaction Rules Top Ten Timberland Owners 2000 and Top Timberland Owners List, Summary of Financial Changes, Mergers & Acquisitions Timberland Transaction Timeline: Greater than 100,000 Acres Timber Market Conditions: Summary Related Economic Conditions and Events of Timberland Transactions How Much Timberland Investment is through TIMOs? Farm Land Values, Timberland Proffered 4 th Quarter Timberland Transactions The 2011 CFB Timberland Investment Conference Insuring Standing Timber: Is Business As Usual Changing? Timberland Compared to US Stocks: Quarterly Total Returns Timberland Proffered 2 nd Quarter Southern Timberland Market - A Windshield Assessment Farm Land Values, Timberland Transactions Top World-wide Investment Managers The Impact of Bioenergy on Timber Investments Farm Land Values, Assessing Country Risk Timberland Transactions Attractive Markets Identified and Market Trends Explained: March 2009 Update Outlook for Timberland Investments Strong for Patient Capital, an Update Is Another Timberlands Investment Goldrush to Oceania in the Cards? Public Timber REITs, Private Timberlands, and the S&P Provocative Barron s Article Overstates the Bearish View on US Timberland Values Timberland Transactions Conference Highlights Global Investment Potential for Timberland Growth of Global Timberland Investment Why the Focus on the US? - An Update Foreign Investors Increased Southern Timberland Ownership in Timberland Transactions Timber Real Estate Investment Trusts (Timber REITs) TIMOs and REITs: Pizza and Beer? End of Era in Merrill Lynch Study on Timberland Investing Timberland Markets

4 2006 Timberland Transactions US Forest Service Land for Roads & Schools Forest Industry Timberland Reclassification US South Fares Well in Global Competition, Future Challenging Assessing Timberland Investments at the County Level The Changing Landscape of Timberland Ownership in the South Timberland Investments in South America: A Profile of Colombia How Southern Timberland Market Trends Impact Investment Returns Timberland Transactions The Anti-Correlation Heresy An Update Biological Growth Rates and Rates of Return Analyzing Southern Timber Markets Timberland Transactions Timberland Investment in Uruguay Timber Tax Changes Benefit Timber Owners Timberland Transactions Bare Timberland Values Timberland Transactions Tip for Timberland Investors Pine Plantations Market Impact Timberland Transactions Sustainable or Certified Forestry? Timberland Transactions New Wealth in Land Measuring Timberland Performance Bare Timberland Prices in South Rose in the '90s To What Extent Do Timber Prices Drive Timberland Returns? E-Land and E-Timber Appendix A: Timberland Transaction Tables Appendix B: Article Index Appendix C: Timberland Maps Timberland Maps Overview Glossary of Terms Appendix D: Rules & Conversion Factors Transaction Rules English & Metric Equivalents US South Wood Volume & Weight Equivalents US South General Timber Product Specifications Index Timberland Markets

5 Table of Contents: Detail Introduction Executive Summary Summary of Annual Sales and Prices Transaction Rules Top Ten Timberland Owners Top Timberland Owners List, Top Timberland Sellers Top Timberland Buyers Top Geographic Regions Range of Sale Sizes Range of Prices per Acre Summary of Financial Changes, Mergers & Acquisitions Timberland Transaction Timeline Timber Market Conditions: Summary US South Standing Timber Price Summary Related Economic Conditions Timberland Transactions Overview of Hancock, Molpus & FCP Plum Creek Sale in Wisconsin Plum Creek s Timber Deed TIAA-CREFF Buys a TIMO Top owners in Top sellers in Top buyers in Top geographic regions in Range of sale sizes in Range of sale prices in Mergers, Acquisitions & Restructuring in Q 2012 Timberland Transactions Q 2012 Timberland Transactions Q 2012 Timberland Transactions Q 2012 Timberland Transactions Large US Timberland Sales by Size 2012: South Large US Timberland Sales 2012: Outside the South How Much Timberland Investment is through TIMOs? Farm Land Values, Timberland Proffered 4 th Quarter Timberland Transactions Overview of GMO RR & BBC Land Rayonier Makes Purchases from Molpus Timberland Markets

6 Huber to Conservation Forestry Forestar to Plum Creek Molpus Acquires More Acres St. Joe & RMS Top owners in Top sellers in Top buyers in Top geographic regions in Range of sale sizes in Range of sale prices in Mergers, Acquisitions & Restructuring in Q 2011 Timberland Transactions Q 2011 Timberland Transactions Q 2011 Timberland Transactions Q 2011 Timberland Transactions Large US Timberland Sales by Size 2011: South Large US Timberland Sales 2011: Outside the South The 2011 CFB Investment Conference Insuring Standing Timber? Southern Timberland Compared to US Stocks Timberland Proffered 2 nd Quarter Southern Timberland Market A Windshield Assessment Farm Land Values, Timberland Transactions Overview of IP Sells Last Timberland The Forestland Group in Maine Top owners in Top sellers in Top buyers in Top geographic regions in Range of sale sizes in Range of sale prices in Mergers, Acquisitions & Restructuring in Q 2010 Timberland Transactions Q 2010 Timberland Transactions Q 2010 Timberland Transactions Q 2010 Timberland Transactions Large US Timberland Sales by Size 2010: South Large US Timberland Sales 2010: Outside the South Top World-wide Investment Managers The Impact of Bioenergy on Timber Investmetns Farm Land Values, Assessing Country Risk Timberland Markets

7 2009 Timberland Transactions Overview of Lyme Timber Sale to The Forestland Group IP to American Timberlands Weyerhaeuser to The Campbell Group Top owners in Top sellers in Top buyers in Top geographic regions in Range of sale sizes in Range of price per acre in Mergers, Acquisitions & Restructuring in Q 2009 Timberland Transactions Q 2009 Timberland Transactions Q 2009 Timberland Transactions Q 2009 Timberland Transactions Large US Timberland Sales by Size 2009: South Large US Timberland Sales 2009: Outside the South Attractive Markets Identified Outlook for Timberland Investments Strong for Patient Capital Is Another Timberlands Investment Goldrush to Oceana in the Cards? Public Timber REITs, Private Timberlands, and the S&P Provocative Barron s Article Overstates the Bearish View of US Timberland Values Timberland Transactions Overview of TimberStar Sale to Hancock Plum Creek & Campbell JV R. O. Martin to Forestland Group Top owners in Top sellers in Top buyers in Top geographic regions in Range of sale sizes in Range of price per acre in Mergers, Acquisitions & Restructuring in Q 2008 Timberland Transactions Q 2008 Timberland Transactions Q 2008 Timberland Transactions Q 2008 Timberland Transactions Large US Timberland Sales by Size 2008: South Large US Timberland Sales 2008: Outside the South Conference Highlights Global Investment Potential for Timberland Growth of Global Timberland Investment Why Focus on the US? An Update Foreign Investors Increase Southern Timberland Ownership in Timberland Markets

8 2007 Timberland Transactions Overview of Temple-Inland Sale to Campbell Group Longview Fiber to Brookfield Asset Managemen Forest Systems & Campbell Group MeadWestvaco to Wells Top owners in Top sellers in Top buyers in Top geographic regions in Range of sale sizes in Range of price per acre in Mergers, Acquisitions & Restructuring in Q 2007 Timberland Transactions Q 2007 Timberland Transactions Q 2007 Timberland Transactions Q 2007 Timberland Transactions Large US Timberland Sales 2007: South Large US Timberland Sales 2007: Outside the South Timber Real Estate Investment Trusts (REITs) TIMOs and REITs: Pizza and Beer? End of Era Merrill Lynch Study on Timberland Investing Timberland Transactions Overview of IP Timberland Sale to RMS & Others Top owners in Top sellers in Top buyers in Top geographic regions in Range of sale sizes in Range of price per acre in Mergers, Acquisitions & Restructuring in Q 2006 Timberland Transactions Q 2006 Timberland Transactions Q 2006 Timberland Transactions Q 2006 Timberland Transactions Large US Timberland Sales 2006: South Large US Timberland Sales 2006: Outside the South USFS Land for Roads & Schools Forest Industry Timberland Reclassification US South Fares Well in Global Competition Assessing Timberland Investments Changing Landscape of Timberland Ownership in the South Timberland Investments in South America: A Profile of Colombia How Southern Timberland Market Trends Impact Investment Returns Timberland Markets

9 2005 Timberland Transactions Overview of Boise to Forest Capital Partners MeadWestvaco Sale to Cerberus Hancock Timber Acquisitions The Forestland Group & Anderson Tully Cerberus Sells Timberland Assets Top owners in Top sellers in Top buyers in Top geographic regions in Range of sale sizes in Range of price per acre in Mergers, Acquisitions & Restructuring in Q 2005 Timberland Transactions Q 2005 Timberland Transactions Q 2005 Timberland Transactions Q 2005 Timberland Transactions Large US Timberland Sales by Size 2005: South Large US Timberland Sales 2005: Outside the South The Anti-Correlation Heresy An Update Biological Growth Rates and Rates of Return Analyzing Southern Timber Markets Timberland Transactions Overview of Boise Cascade to Madison Dearborn Partners International Paper to GMO RR Crown Pacific Partners to Cascade Timberland Hancock Timber to FIA Weyerhaeuser GA Timberland Sale Top owners in Top sellers in Top buyers in Top geographic regions in Range of sale sizes in Range of price per acre in Mergers, Acquisitions & Restructuring in Q 2004 Timberland Transactions Q 2004 Timberland Transactions Q 2004 Timberland Transactions Q 2004 Timberland Transactions Large US Timberland Sales by Size 2004: South Large US Timberland Sales 2004: Outside the South Timberland Investment in Uruguay Timber Tax Changes Benefit Timber Owners Timberland Markets

10 2003 Timberland Transactions Overview of MeadWestvaco Sells Maine Timberland Louisiana-Pacific Sells Timberland in the South Weyerhaeuser Sells Timberland CalPERS Begins to Reduce Timberland Holdings Bishop Trust Sells Michigan Timberland Top owners in Top sellers in Top buyers in Top geographic regions in Range of sale sizes in Range of price per acre in Mergers, Acquisitions & Restructuring in Q 2003 Timberland Transactions Q 2003 Timberland Transactions Q 2003 Timberland Transactions Q 2003 Timberland Transactions Large US Timberland Sales by Size 2003: South Large US Timberland Sales 2003: Outside the South Bare Timberland Values Timberland Transactions Overview of Weyerhaeuser & Willamette Stora Enso to Plum Creek Weyerhaeuser Sales in Top owners in Top sellers in Top buyers in Top geographic regions in Range of sale sizes in Range of price per acre in Mergers, Acquisitions & Restructuring in Q 2002 Timberland Transactions Q 2002 Timberland Transactions Q 2002 Timberland Transactions Q 2002 Timberland Transactions Large US Timberland Sales by Size 2002: South Large US Timberland Sales 2002: Outside the South Tip for Timberland Investors Pine Plantations Market Impact Timberland Transactions Overview of The Timber Company and Plum Creek Timber International Paper Sells Washington Timberland Bowater Timberland Sold Timberland Markets

11 International Paper Sells Texas Timberland Top owners in Top sellers in Top buyers in Top geographic regions in Range of sale sizes in Range of price per acre in Mergers, Acquisitions & Restructuring in Q 2001 Timberland Transactions Q 2001 Timberland Transactions Q 2001 Timberland Transactions Q 2001 Timberland Transactions Large US Timberland Sales by Size 2001: South Large US Timberland Sales 2001: Outside the South Sustainable or Certified Forestry? Timberland Transactions Overview of International Paper Acquired Champion Plum Creek & Georgia-Pacific Timberland PCA Sale to Southern Timber Venture Alliance Forest Products to Hancock Gilman Sells Florida Timberland Top Owners, Sellers, Buyers & Regions in Range of Sale Size & Sale Price Mergers, Acquisitions & Restructuring in Q 2000 Timberland Transactions Q 2000 Timberland Transactions Q 2000 Timberland Transactions Q 2000 Timberland Transactions Large US Timberland Sales by Size 2000: South New Wealth in Land Measuring Timberland Performance Bare Timberland Prices Rose in the 90s To What Extent Do Timber Prices Drive Timberland Returns E-Land and E-Timber Appendix A : Timberland Transaction Tables Large US Timberland Sales by Size 2000: South Large US Timberland Sales by Size 2001: South Large US Timberland Sales 2001: Outside the South Large US Timberland Sales by Size 2002: South Large US Timberland Sales 2002: Outside the South Large US Timberland Sales by Size 2003: South Large US Timberland Sales 2003: Outside the South Large US Timberland Sales by Size 2004: South Large US Timberland Sales 2004: Outside the South Large US Timberland Sales by Size 2005: South Timberland Markets

12 Large US Timberland Sales 2005: Outside the South Large US Timberland Sales 2006: South Large US Timberland Sales 2006: Outside the South Large US Timberland Sales 2007: South Large US Timberland Sales 2007: Outside the South Large US Timberland Sales by Size 2008: South Large US Timberland Sales 2008: Outside the South Large US Timberland Sales by Size 2009: South Large US Timberland Sales 2009: Outside the South Large US Timberland Sales by Size 2010: South Large US Timberland Sales 2010: Outside the South Large US Timberland Sales by Size 2011: South Large US Timberland Sales 2011: Outside the South Large US Timberland Sales by Size 2012: South Large US Timberland Sales 2012: Outside the South Appendix B: Article Index Contributor Information Articles by Topic Articles by Author Appendix C: Timberland Maps Maps Overview Glossary of Terms Appendix D: Rules & Conversion Factors Transaction Rules English & Metric Equivalents US South Wood Volume & Weight Equivalents US South General Timber Product Specifications Timberland Markets