Here’s Why Rayonier (RYN) Announced Disposition of its Assets

Third Avenue Management, an investment management company based in New York City, released its “Third Avenue Real Estate Value Fund” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. In the calendar year, the fund returned +23.27% (after fees) versus +10.85% for the Fund’s most relevant benchmark, the FTSE EPRA NAREIT Developed Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Third Avenue Real Estate Value Fund featured stocks like Rayonier Inc. (NYSE:RYN) in the Q4 2023 investor letter. Rayonier Inc. (NYSE:RYN) is a timberland real estate investment trust. On March 14, 2024, Rayonier Inc. (NYSE:RYN) stock closed at $33.35 per share. One-month return of Rayonier Inc. (NYSE:RYN) was -0.48%, and its shares gained 5.07% of their value over the last 52 weeks. Rayonier Inc. (NYSE:RYN) has a market capitalization of $5.027 billion.

Third Avenue Real Estate Value Fund stated the following regarding Rayonier Inc. (NYSE:RYN) in its fourth quarter 2023 investor letter:

“Asset Sales: Rayonier Inc. (NYSE:RYN) (a U.S.-based Timber Real Estate Investment Trust or “REIT”) announced the disposition of 55k acres of timberlands in Oregon for $242 million, implying $4.4k per acre, or more than two times the implied value per acre for Rayonier’s portfolio based upon the recent stock price. Rayonier’s management team has also indicated that it plans to sell another $750 million of timberlands within the next 18 months to further reduce debt levels and return excess capital to shareholders given the price-to-value discrepancy.”

Aerial view of Timberland Real Estate Investment Trust’s woodlands in the U.S. South and Pacific Northwest.

Rayonier Inc. (NYSE:RYN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Rayonier Inc. (NYSE:RYN) was held by 21 hedge fund portfolios, compared to 16 in the previous quarter, according to our database.

We discussed Rayonier Inc. (NYSE:RYN) in another article and shared the list of best lumber stocks to invest in 2023. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.