30 unchanged sentences
Southern Timber, Pacific Northwest Timber, New Zealand Timber, Timber Funds, Real Estate, and Trading.
−Removed: As of June 30, 2021, we owned or leased under long-term agreem ents approximat ely 2.7 million acres of timberlands located in the U.S.
+Added: As of September 30, 2021, we owned or leased under long-term agreem ents approximat ely 2.6 million acres of timberlands located in the U.S.
South (1.74 million acres), U.S.
Pacific Northwest (490,000 acres) and New Zealand (418,000 gross acres or 297,000 net plantable acres).
−Removed: We also act as the managing member in a private equity timber fund business with three funds comprising approximately 141,000 acres.
+Added: We also act as the managing member in a private equity timber fund business with one fund comprising approximately 18,000 acres.
On a “look-through basis,” our ownership in the timber fund business equates to approximately 4,000 acres.
−Removed: On July 21, 2021, we sold the rights to manage two timber funds (Fund III and Fund IV) as well as our co-investment stake in both funds.
−Removed: We have also commenced a process to liquidate Fund II assets.
−Removed: See Note 1 - Basis of Presentation for additional information.
+Added: Following the end of the third quarter, we completed the liquidation of Fund II assets through two additional timberland dispositions.
+Added: See Note 1 - Basis of Presentation for additional information on the subsequent events.
SEGMENT INFORMATION
2 unchanged sentences
The Timber Funds segment operations are managed by ORM LLC, a subsidiary acquired in the merger with Pope Resources.
−Removed: We own approximately 20% of Fund II, 5% of Fund III and 15% of Fund IV.
+Added: On July 21, 2021, we sold the rights to manage Fund III and Fund IV, as well as our ownership interests in both funds.
+Added: As of September 30, 2021, we own approximately 20% of Fund II, but had commenced a process to liquidate Fund II assets.
When referring to our proportionate ownership share of the Timber Funds segment, we will refer to the sums as “look-through” totals.
9 unchanged sentences
ENVIRONMENTAL MATTERS
−Removed: For a full description of our environmental matters, see Item 1 - “Business” in our Annual Report on Form 10-K for the year ended December 31, 2020 and comprehensive environmental and carbon reports located at our Responsible Stewardship webpage.
+Added: For a full description of our environmental matters, see Item 1 - “Business” in our Annual Report on Form 10-K for the year ended December 31, 2020 and our sustainability report located at our Responsible Stewardship webpage.
INDUSTRY AND MARKET CONDITIONS
3 unchanged sentences
Our Pacific Northwest Timber and Timber Funds segments rely primarily on domestic customers but also export a significant volume of timber, particularly to China.
−Removed: The Southern, Pacific Northwest Timber and Timber Funds segments rely on the strength of U.S.
+Added: The Southern Timber, Pacific Northwest Timber and Timber Funds segments rely on the strength of U.S.
lumber markets as well as underlying housing starts.
22 unchanged sentences
Our timber operations are comprised of our core timberland holdings, which are disaggregated into three geographically distinct reporting segments:
−Removed: Southern Timber, Pacific Northwest Timber and New Zealand Timber in addition to our timber fund holdings, which represents our ownership in Timber Funds II, III and IV.
−Removed: The following tables provide a breakdown of our timberland holdings as of June 30, 2021 and December 31, 2020:
+Added: Southern Timber, Pacific Northwest Timber and New Zealand Timber in addition to our timber fund holdings, which represents our ownership in Timber Fund II.
+Added: The following tables provide a breakdown of our timberland holdings as of September 30, 2021 and December 31, 2020:
Core Timberland Holdings
−Removed: (acres in 000s) As of June 30, 2021
+Added: (acres in 000s) As of September 30, 2021
As of December 31, 2020
16 unchanged sentences
(a) Represents legal acres owned and leased by the New Zealand subsidiary, in which we own a 77% interest.
−Removed: As of June 30, 2021, legal acres in New Zealand consisted of 296,000 plantable acres and 123,000 non-productive acres.
+Added: As of September 30, 2021, legal acres in New Zealand consisted of 297,000 plantable acres and 121,000 non-productive acres.
Timber Fund Holdings (a)
−Removed: (acres in 000s) As of June 30, 2021
+Added: (acres in 000s) As of September 30, 2021
As of December 31, 2020
Total Look-through Total Look-through
−Removed: Oregon 51 7 51 7
+Added: Oregon (b) 18 4 51 7
Washington — — 71 9
1 unchanged sentence
Total 18 4 141 17
−Removed: (a) On July 21, 2021, we sold the rights to manage Fund III and Fund IV, as well as our ownership interests in both funds for an aggregate purchase price prior to closing costs of approximately $35.9 million.
−Removed: See Note 1 - Basis of Presentation for additional information on the subsequent event.
+Added: (a) On July 21, 2021, we sold the rights to manage Fund III and Fund IV, as well as our ownership interests in both funds, for an aggregate purchase price of $35.9 million, and on September 30, 2021, we sold approximately 13,000 acres of Fund II timberland assets in Washington for an aggregate purchase price of $87.1 million.
+Added: See Note 1 - Basis of Presentation and Note 6 - Noncontrolling Interests for additional information.
+Added: (b) On October 5, 2021, we sold approximately 5,000 acres of Fund II timberland assets in Oregon for an aggregate purchase price of approximately $37.2 million.
+Added: On November 1, 2021, we sold the remaining 13,000 acres of Fund II timberland assets in Oregon for an aggregate purchase price of $32.5 million.
+Added: This transaction completes the liquidation of Fund II assets, with capital expected to be distributed to investors in the fourth quarter.
+Added: See Note 1 - Basis of Presentation for additional information on these subsequent events.
Total Timberland under Management
−Removed: (acres in 000s) As of June 30, 2021
+Added: (acres in 000s) As of September 30, 2021
As of December 31, 2020
2 unchanged sentences
New Zealand 418 417
−Removed: Timber Funds (a) 141 141
+Added: Timber Funds (a)(b) 18 141
Total 2,665 2,798
−Removed: (a) On July 21, 2021, we sold the rights to manage Fund III and Fund IV, as well as our ownership interests in both funds for an aggregate purchase price prior to closing costs of approximately $35.9 million.
−Removed: See Note 1 - Basis of Presentation for additional information on the subsequent event.
−Removed: The following tables detail activity for owned and leased acres in our core timberland holdings by state from December 31, 2020 to June 30, 2021:
+Added: (a) On July 21, 2021, we sold the rights to manage Fund III and Fund IV, as well as our ownership interests in both funds, for an aggregate purchase price of $35.9 million, and on September 30, 2021, we sold approximately 13,000 acres of Fund II timberland assets in Washington for an aggregate purchase price of $87.1 million.
+Added: See Note 1 - Basis of Presentation and Note 6 - Noncontrolling Interests for additional information.
+Added: (b) On October 5, 2021, we sold approximately 5,000 acres of Fund II timberland assets in Oregon for an aggregate purchase price of approximately $37.2 million.
+Added: On November 1, 2021, we sold the remaining 13,000 acres of Fund II timberland assets in Oregon for an aggregate purchase price of $32.5 million.
+Added: This transaction completes the liquidation of Fund II assets, with capital expected to be distributed to investors in the fourth quarter.
+Added: See Note 1 - Basis of Presentation for additional information on these subsequent events.
+Added: The following tables detail activity for owned and leased acres in our core timberland holdings by state from December 31, 2020 to September 30, 2021:
(acres in 000s) Acres Owned
December 31, 2020
−Removed: Acquisitions Sales Other June 30, 2021
+Added: Acquisitions Sales Other September 30, 2021
Alabama 223 — — — 223
15 unchanged sentences
December 31, 2020
−Removed: New Leases Sold/Expired Leases (a) Other (b) June 30, 2021
+Added: New Leases Sold/Expired Leases (a) Other (b) September 30, 2021
Alabama 14 — — — 14
11 unchanged sentences
(d) Represents legal acres leased by the New Zealand subsidiary, in which we have a 77% interest.
−Removed: The following table details activity in our timber fund holdings by state from December 31, 2020 to June 30, 2021:
+Added: The following table details activity in our timber fund holdings by state from December 31, 2020 to September 30, 2021:
(acres in 000s) Acres Owned
December 31, 2020
−Removed: Acquisitions Sales Other June 30, 2021
+Added: Acquisitions Sales Other September 30, 2021
+Added: Fund II (a)(b)
Oregon 18 — — — 18
13 unchanged sentences
Look-through share of Funds 17 — (13) — 4
−Removed: (a) On July 21, 2021, we sold the rights to manage Fund III and Fund IV, as well as our ownership interests in both funds for an aggregate purchase price prior to closing costs of approximately $35.9 million.
−Removed: See Note 1 - Basis of Presentation for additional information on the subsequent event.
+Added: (a) On July 21, 2021, we sold the rights to manage Fund III and Fund IV, as well as our ownership interests in both funds, for an aggregate purchase price of $35.9 million, and on September 30, 2021, we sold approximately 13,000 acres of Fund II timberland assets in Washington for an aggregate purchase price of $87.1 million.
+Added: See Note 1 - Basis of Presentation and Note 6 - Noncontrolling Interests for additional information.
+Added: (b) On October 5, 2021, we sold approximately 5,000 acres of Fund II timberland assets in Oregon for an aggregate purchase price of approximately $37.2 million.
+Added: On November 1, 2021, we sold the remaining 13,000 acres of Fund II timberland assets in Oregon for an aggregate purchase price of $32.5 million.
+Added: This transaction completes the liquidation Fund II assets, with capital expected to be distributed to investors in the fourth quarter.
+Added: See Note 1 - Basis of Presentation for additional information on these subsequent events.
RESULTS OF OPERATIONS
2 unchanged sentences
Three Months Ended
−Removed: June 30, Six Months Ended
+Added: September 30, Nine Months Ended
+Added: September 30,
Financial Information (in millions) 2021 2020 2021 2020
2 unchanged sentences
New Zealand Timber 75.6 62.8 213.7 142.1
−Removed: Timber Funds 18.6 7.5 33.6 7.5
+Added: Timber Funds (a) 94.5 9.9 128.1 17.4
Improved Development 27.8 1.3 47.4 7.8
3 unchanged sentences
Conservation Easement — 3.1 3.9 3.1
−Removed: Deferred Revenue/Other (a) (5.0) (1.7) (4.5) (1.5)
+Added: Deferred Revenue/Other (b) 1.1 1.1 (3.4) (0.5)
Large Dispositions 20.0 — 56.0 116.0
7 unchanged sentences
New Zealand Timber 13.3 10.7 48.0 21.1
−Removed: Timber Funds 2.0 (1.9) 3.5 (1.9)
−Removed: Real Estate (a)(b) 50.5 24.8 52.2 51.6
+Added: Timber Funds (a) 41.3 (12.4) 44.8 (14.3)
+Added: Real Estate (b)(c) 60.6 9.5 112.8 61.1
Trading — (0.6) 0.6 (0.5)
3 unchanged sentences
Income tax expense (2.8) (0.7) (13.1) (7.4)
−Removed: Net Income 63.4 0.5 78.5 26.9
−Removed: Net (income) loss attributable to noncontrolling interests in consolidated affiliates (4.5) 1.4 (8.3) 0.9
−Removed: Net Income Attributable to Rayonier, L.P.
+Added: Net Income (Loss) 110.5 (9.5) 189.0 17.4
+Added: Net (income) loss attributable to noncontrolling interests in consolidated affiliates (d) (32.5) 8.7 (40.8) 9.6
+Added: Net Income (Loss) Attributable to Rayonier, L.P.
$78.0 ($0.8) $148.2 $27.0
Net income attributable to noncontrolling interests in the Operating Partnership (2.2) — (4.3) (0.2)
−Removed: Net Income Attributable to Rayonier Inc.
+Added: Net Income (Loss) Attributable to Rayonier Inc.
$75.8 ($0.8) $143.9 $26.8
−Removed: Adjusted EBITDA (c)
+Added: Adjusted EBITDA (e)
Southern Timber $24.4 $26.1 $86.6 $85.8
6 unchanged sentences
Total Adjusted EBITDA $114.6 $67.2 $279.4 $192.9
−Removed: (a) Includes deferred revenue adjustments, revenue true-ups and marketing fees related to Improved Development sales in addition to residential and commercial lease revenue.
−Removed: (b) The three and six months ended June 30, 2021 includes $30.3 million from a Large Disposition.
−Removed: The six months ended June 30, 2020 includes $28.7 million from a Large Disposition.
−Removed: (c) Adjusted EBITDA is a non-GAAP measure defined and reconciled in Performance and Liquidity Indicators .
+Added: (a) The three and nine months ended September 30, 2021 includes sales and operating income of $87.1 million and $36.0 million, respectively, from Fund II Timberland Dispositions.
+Added: (b) Includes deferred revenue adjustments, revenue true-ups and marketing fees related to Improved Development sales in addition to residential and commercial lease revenue.
+Added: (c) The three and nine months ended September 30, 2021 includes $14.5 million and $44.8 million, respectively, from Large Dispositions.
+Added: The nine months ended September 30, 2020 includes $28.7 million from a Large Disposition.
+Added: (d) The three and nine months ended September 30, 2021 includes a $28.8 million gain from Fund II Timberland Dispositions.
+Added: (e) Adjusted EBITDA is a non-GAAP measure defined and reconciled in Performance and Liquidity Indicators .
Three Months Ended
−Removed: June 30, Six Months Ended
+Added: September 30, Nine Months Ended
+Added: September 30,
Southern Timber Overview 2021 2020 2021 2020
20 unchanged sentences
Operating Income $12.8 $5.1 $47.1 $31.4
+Added: (+) Timber write-offs resulting from casualty events (a) — 6.0 — 6.0
(+) Depreciation, depletion and amortization 11.6 15.0 39.5 48.4
−Removed: Adjusted EBITDA (a) $30.6 $26.4 $62.3 $59.7
+Added: Adjusted EBITDA (b) $24.4 $26.1 $86.6 $85.8
Period-End Acres (in thousands) 1,739 1,749 1,739 1,749
−Removed: (a) Adjusted EBITDA is a non-GAAP measure defined and reconciled in Performance and Liquidity Indicators .
+Added: (a) Timber write-offs resulting from casualty events include the write-off of merchantable and pre-merchantable timber volume destroyed by casualty events that cannot be salvaged.
+Added: (b) Adjusted EBITDA is a non-GAAP measure defined and reconciled in Performance and Liquidity Indicators .
Three Months Ended
−Removed: June 30, Six Months Ended
+Added: September 30, Nine Months Ended
+Added: September 30,
Pacific Northwest Timber Overview 2021 2020 2021 2020
27 unchanged sentences
Three Months Ended
−Removed: June 30, Six Months Ended
+Added: September 30, Nine Months Ended
+Added: September 30,
New Zealand Timber Overview 2021 2020 2021 2020
29 unchanged sentences
Three Months Ended
−Removed: June 30, Six Months Ended
−Removed: Timber Funds Overview 2021 2020 2021 2020
−Removed: Sales Volume (in thousands of tons)
−Removed: Pulpwood 14 10 23 10
−Removed: Sawtimber 161 80 297 80
−Removed: Total Volume 175 90 319 90
−Removed: Summary Financial Data (in millions of dollars)
−Removed: Timber Sales $16.8 $6.6 $30.4 $6.6
−Removed: Cut and Haul (7.5) (2.9) (12.9) (2.9)
−Removed: Net Stumpage Sales $9.3 $3.7 $17.5 $3.7
−Removed: Non-Timber Sales 0.4 — 0.4 —
−Removed: Timberland Management Fees 1.4 0.9 2.8 0.9
−Removed: Total Sales $18.6 $7.5 $33.6 $7.5
−Removed: Operating Income (Loss) $2.0 ($1.9) $3.5 ($1.9)
−Removed: Operating (income) loss attributable to NCI in Timber Funds (1.6) 2.0 (2.7) 2.0
−Removed: (+) Depreciation, depletion and amortization (“Look-through”) 1.0 0.5 1.6 0.5
−Removed: Adjusted EBITDA (a) $1.4 $0.7 $2.3 $0.7
−Removed: Period-End Acres (in thousands) 141 141 141 141
−Removed: “Look-through” Period-End Acres (in thousands) 17 17 17 17
−Removed: (a) Adjusted EBITDA is a non-GAAP measure defined and reconciled in Performance and Liquidity Indicators .
−Removed: Three Months Ended
−Removed: June 30, Six Months Ended
−Removed: Trading Overview 2021 2020 2021 2020
−Removed: Sales Volume (in thousands of tons)
−Removed: NZ Trading - Domestic 15 7 28 15
−Removed: NZ Trading - Export 228 259 356 458
−Removed: Total Volume 243 267 384 474
−Removed: Summary Financial Data (in millions of dollars)
−Removed: Trading Sales $34.2 $24.3 $50.4 $42.9
−Removed: Non-Timber Sales 0.4 0.1 0.8 0.4
−Removed: Total Sales $34.5 $24.3 $51.2 $43.3
−Removed: Operating Income $0.4 $0.1 $0.7 $0.1
−Removed: Adjusted EBITDA (a) $0.4 $0.1 $0.7 $0.1
−Removed: (a) Adjusted EBITDA is a non-GAAP measure defined and reconciled in Performance and Liquidity Indicators .
−Removed: Three Months Ended
−Removed: June 30, Six Months Ended
+Added: September 30, Nine Months Ended
+Added: September 30,
Real Estate Overview 2021 2020 2021 2020
30 unchanged sentences
(b) Large Dispositions are defined as transactions involving the sale of timberland that exceed $20 million in size and do not have a demonstrable premium relative to timberland value.
−Removed: In June 2021, we completed the disposition of approximately 9,000 acres located in Washington for a sales price and a gain of approximately $36.0 million and $30.3 million, respectively.
−Removed: In March 2020, we completed the disposition of approximately 67, 000 acres located in Mississippi for a sales price and gain of approximate ly $116.0 million and $28.7 million, respectively.
+Added: As of September 30, 2021, we have completed two dispositions of approximately 17,000 acres in total.
+Added: In June 2021, we completed a disposition of approximately 9,000 acres in Washington for a sales price and gain of approximately $36.0 million and $30.3 million, respectively.
+Added: In July 2021, we completed a second disposition of approximately 8,000 acres in Washington, for a sales price and gain of $20.0 million and $14.5 million, respectively.
+Added: In March 2020, we completed a disposition of approximately 67,000 acres located in Mississippi for a sales price and gain of approximate ly $116.0 million and $28.7 million, respectively.
(c) Excludes Large Dispositions.
2 unchanged sentences
Three Months Ended
−Removed: June 30, Six Months Ended
+Added: September 30, Nine Months Ended
+Added: September 30,
+Added: Timber Funds Overview 2021 2020 2021 2020
+Added: Sales Volume (in thousands of tons)
+Added: Pulpwood 4 9 27 19
+Added: Sawtimber 57 101 354 181
+Added: Total Volume 61 110 380 200
+Added: Summary Financial Data (in millions of dollars)
+Added: Timber Sales $6.8 $8.6 $37.2 $15.3
+Added: Cut and Haul (3.0) (3.4) (15.9) (6.4)
+Added: Net Stumpage Sales $3.9 $5.2 $21.3 $8.9
+Added: Fund II Timberland Dispositions (a) 87.1 — 87.1 —
+Added: Non-Timber Sales — — 0.5 —
+Added: Timberland Management Fees 0.5 1.3 3.3 2.2
+Added: Total Sales $94.5 $9.9 $128.1 $17.4
+Added: Operating Income (Loss) $41.3 ($12.4) $44.8 ($14.3)
+Added: Operating (income) loss attributable to NCI in Timber Funds (30.5) 10.3 (33.3) 12.3
+Added: (-) Gain on investment in Timber Funds (b) (3.7) — (3.7) —
+Added: (-) Fund II Timberland Dispositions (a) (7.2) — (7.2) —
+Added: (+) Timber write-offs resulting from casualty events attributable to Rayonier (c) — 1.8 — 1.8
+Added: (+) Depreciation, depletion and amortization (“Look-through”) 0.7 0.5 2.2 1.0
+Added: Adjusted EBITDA (d) $0.5 $0.2 $2.8 $0.8
+Added: Period-End Acres (in thousands) 18 141 18 141
+Added: “Look-through” Period-End Acres (in thousands) 4 17 4 17
+Added: (a) Fund II Timberland Dispositions represents the disposition of Timber Fund II timberland assets, which we manage and own a co-investment stake in.
+Added: Proceeds from Fund II Timberland Dispositions will ultimately be distributed to owners of ORM Timber Fund II and not reinvested.
+Added: (b) Gain on investment in Timber Funds represents the gain recognized on the sale of rights to manage two timber funds (Funds III and IV) previously managed by our Olympic Resource Management (ORM) subsidiary, as well as our co-investment stake in both funds.
+Added: (c) Timber write-offs resulting from casualty events includes the write-off of merchantable and pre-merchantable timber volume destroyed by casualty events that cannot be salvaged.
+Added: (d) Adjusted EBITDA is a non-GAAP measure defined and reconciled in Performance and Liquidity Indicators .
+Added: Three Months Ended
+Added: September 30, Nine Months Ended
+Added: September 30,
+Added: Trading Overview 2021 2020 2021 2020
+Added: Sales Volume (in thousands of tons)
+Added: South 1 — 1 —
+Added: Pacific Northwest — 1 — 1
+Added: NZ Trading - Domestic 10 6 38 21
+Added: NZ Trading - Export 166 245 522 704
+Added: Total Volume 177 252 561 726
+Added: Summary Financial Data (in millions of dollars)
+Added: Trading Sales $25.1 $22.1 $75.5 $65.0
+Added: Non-Timber Sales 0.4 0.1 1.3 0.5
+Added: Total Sales $25.6 $22.2 $76.8 $65.5
+Added: Operating Income (Loss) — ($0.6) $0.6 ($0.5)
+Added: Adjusted EBITDA (a) — ($0.6) $0.6 ($0.5)
+Added: (a) Adjusted EBITDA is a non-GAAP measure defined and reconciled in Performance and Liquidity Indicators .
+Added: Three Months Ended
+Added: September 30, Nine Months Ended
+Added: September 30,
Capital Expenditures By Segment (in millions of dollars) 2021 2020 2021 2020
28 unchanged sentences
$2.9 $1.9 $9.2 $5.4
−Removed: (a) The three and six months ended June 30, 2021 exclude $1.2 million and $2.5 million, respectively, of capital expenditures attributable to noncontrolling interests in Timber Funds, and the three and six months ended June 30, 2020 exclude $0.6 million of capital expenditures attributable to noncontrolling interests in Timber Funds.
+Added: (a) The three and nine months ended September 30, 2021 exclude $0.3 million and $2.8 million, respectively, of capital expenditures attributable to noncontrolling interests in Timber Funds, and the three and nine months ended September 30, 2020 exclude $0.9 million and $1.6 million, respectively, of capital expenditures attributable to noncontrolling interests in Timber Funds.
(b) Represents investments in master infrastructure or entitlements in our real estate development projects.
Real Estate Development Investments are amortized as the underlying properties are sold and included in Non-Cash Cost of Land and Improved Development.
−Removed: The following tables summarize sales, operating income (loss) and Adjusted EBITDA variances for June 30, 2021 versus June 30, 2020 (millions of dollars):
+Added: The following tables summarize sales, operating income (loss) and Adjusted EBITDA variances for September 30, 2021 versus September 30, 2020 (millions of dollars):
Sales Southern Timber Pacific Northwest Timber New Zealand Timber Timber Funds Real Estate Trading Intersegment Eliminations Total
Three Months Ended
−Removed: June 30, 2020
+Added: September 30, 2020
$47.7 $28.9 $62.8 $9.9 $28.8 $22.2 ($1.4) $198.9
5 unchanged sentences
Three Months Ended
−Removed: June 30, 2021
+Added: September 30, 2021
$44.8 $31.5 $75.6 $94.5 $93.4 $25.6 ($0.7) $364.7
2 unchanged sentences
(c) Includes variance due to domestic versus export sales.
−Removed: (d) Timber Funds i ncludes an increase in sales attributable to noncontrolling interest of $8.9 million, sales related to timberland investment management fees paid to us by the timber funds, and a variance due to stumpage versus delivered sales.
−Removed: (e) Includes $36.0 million of sales from a Large Disposition in Q2 2021 in addition to Conservation Easement sales, as well as marketing fees related to Improved Development sales and r esidential and commercial lease revenue , partially offset by deferred revenue adjustments.
−Removed: (f) Includes a $0.5 million increase in Intersegment eliminations related to timberland management fees paid to us by the timber funds and reported as sales within the Timber Funds segment.
+Added: (d) Timber Funds includes an increase in sales attributable to noncontrolling interest of $67.7 million, $17.5 million of Fund II Timberland Dispositions attributable to Rayonier, lower sales related to timberland investment management fees paid to us by the timber funds, and a variance due to stumpage versus delivered sales.
+Added: (e) Includes $20.0 million of sales from a Large Disposition in the three months ended September 30, 2021 in addition to marketing fees related to Improved Development sales and r esidential and commercial lease revenue, partially offset by lower Conservation Easement sales and deferred revenue adjustments.
+Added: (f) Includes a $0.8 million decrease in Intersegment eliminations related to timberland management fees paid to us by the timber funds and reported as sales within the Timber Funds segment.
Sales Southern Timber Pacific Northwest Timber New Zealand Timber Timber Funds Real Estate Trading Intersegment Eliminations Total
−Removed: Six Months Ended
−Removed: June 30, 2020
+Added: Nine Months Ended
+Added: September 30, 2020
$147.4 $86.1 $142.1 $17.4 $197.4 $65.5 ($2.3) $653.6
4 unchanged sentences
Other (0.2) (b) 1.5 (b) 31.0 (c) 108.8 (d) (59.5) (e) — (1.3) (f) 80.3
−Removed: Six Months Ended
−Removed: June 30, 2021
+Added: Nine Months Ended
+Added: September 30, 2021
$145.8 $108.4 $213.7 $128.1 $178.4 $76.8 ($3.6) $847.6
2 unchanged sentences
(c) Includes variance due to domestic versus export sales.
−Removed: (d) Timber Funds includes an increase in sales attributable to noncontrolling interest of $20.9 million, sales related to timberland investment management fees paid to us by the timber funds, and a variance due to stumpage versus delivered sales.
−Removed: (e) Includes $116.0 million of sales from a Large Disposition in Q1 2020 as well as deferred revenue adjustments, partially offset by $36.0 million of sales from a Large Disposition in Q2 2021 in addition to Conservation Easement sales, as well as marketing fees related to Improved Development sales and as r esidential and commercial lease revenue .
+Added: (d) Timber Funds includes an increase in sales attributable to noncontrolling interests of $88.6 million, $17.5 million related to disposition of Timber Fund II, sales related to timberland investment management fees paid to us by the timber funds, and a variance due to stumpage versus delivered sales.
+Added: (e) Includes $116.0 million of sales from a Large Disposition in the nine months ended September 30, 2020, as well as Conservation Easement sales, r esidential and commercial lease revenue, marketing fees related to Improved Development sales and deferred revenue adjustments, partially offset by $56.0 million of sales from Large Dispositions in the nine months ended September 30, 2021.
(f) Includes a $1.1 million increase in Intersegment eliminations related to timberland management fees paid to us by the timber funds and reported as sales within the Timber Funds segment.
1 unchanged sentence
Three Months Ended
−Removed: June 30, 2020
+Added: September 30, 2020
$5.1 ($1.8) $10.7 ($12.4) $9.5 ($0.6) ($8.7) $1.8
8 unchanged sentences
Three Months Ended
−Removed: June 30, 2021
+Added: September 30, 2021
$12.8 $2.1 $13.3 $41.3 $60.6 — ($6.7) $123.3
(a) Net of currency hedging impact.
−Removed: (b) Timber Funds includes an increase in operating income attributable to noncontrolling interest of $3.6 million and timberland investment management fees paid to us by the timber fund.
−Removed: Real Estate includes $30.3 million of operating income from Large Dispositions in addition to Conservation Easement sales, residential and commercial lease income and marketing fees related to Improved Development sales, partially offset by deferred revenue adjustments.
−Removed: Corporate and Other includes $13.5 million in costs related to the merger with Pope Resources in Q2 2020.
+Added: (b) Southern Timber includes $6.0 million in timber write-offs resulting from casualty events in the three months ended September 30, 2020.
+Added: Timber Funds includes an increase in operating income attributable to noncontrolling interests of $40.8 million, $7.2 million related to the disposition of Timber Fund II, $3.7 million related to the gain on investment in Timber Funds, $1.8 million of timber write-offs from casualty events attributable to Rayonier in the prior year quarter and timberland investment management fees paid to us by the timber fund.
+Added: Real Estate includes $14.5 million of operating income from Large Dispositions in addition to residential and commercial lease income, revenue true-ups, marketing fees related to Improved Development sales, and deferred revenue adjustments.
+Added: Corporate and Other includes $0.4 million in costs related to the merger with Pope Resources in the three months ended September 30, 2020.
Operating Income (Loss) Southern Timber Pacific Northwest Timber New Zealand Timber Timber Funds Real Estate Trading Corporate and Other Total
−Removed: Six Months Ended
−Removed: June 30, 2020
+Added: Nine Months Ended
+Added: September 30, 2020
$31.4 ($9.5) $21.1 ($14.3) $61.1 ($0.5) ($37.3) $52.0
7 unchanged sentences
Other (b) 6.0 — — 59.5 16.5 — 16.4 98.3
−Removed: Six Months Ended
−Removed: June 30, 2021
+Added: Nine Months Ended
+Added: September 30, 2021
$47.1 $5.3 $48.0 $44.8 $112.8 $0.6 ($22.3) $236.2
(a) Net of currency hedging impact.
−Removed: (b) Timber Funds includes an increase in operating income attributable to noncontrolling interest of $4.7 million and timberland investment management fees paid to us by the timber fund.
−Removed: Real Estate includes $30.3 million of operating income from a Large Disposition in Q2 2021 in addition to Conservation Easement sales, residential and commercial lease income and marketing fees related to Improved Development sales, partially offset by $28.7 million of operating income from a Large Disposition in Q1 2020 and deferred revenue adjustments.
−Removed: Corporate and Other includes $16.0 million in costs related to the merger with Pope Resources in 2020.
+Added: (b) Southern Timber includes $6.0 million in timber write-offs resulting from casualty events in the nine months ended September 30, 2020.
+Added: Timber Funds includes an increase in operating income attributable to noncontrolling interests of $45.6 million, $7.2 million related to the disposition of Timber Fund II, $3.7 million related to the gain on investment in Timber Funds, $1.8 million of timber write-offs from casualty events attributable to Rayonier in the prior year period, and timberland investment management fees paid to us by the timber fund.
+Added: Real Estate includes $44.8 million of operating income from Large Dispositions in the nine months ended September 30, 2021 in addition to Conservation Easement sales, residential and commercial lease income, marketing fees related to Improved Development sales and equity income from joint venture entities, partially offset by $28.7 million of operating income from a Large Disposition in the nine months ended September 30, 2020 and deferred revenue adjustments.
+Added: Corporate and Other includes $16.4 million in costs related to the merger with Pope Resources in the nine months ended September 30, 2020.
Adjusted EBITDA (a) Southern Timber Pacific Northwest Timber New Zealand Timber Timber Funds Real Estate Trading Corporate and Other Total
Three Months Ended
−Removed: June 30, 2020
+Added: September 30, 2020
$26.1 $9.1 $18.1 $0.2 $22.2 ($0.6) ($7.9) $67.2
6 unchanged sentences
Three Months Ended
−Removed: June 30, 2021
+Added: September 30, 2021
$24.4 $12.5 $19.9 $0.5 $63.8 — ($6.4) $114.6
4 unchanged sentences
Adjusted EBITDA (a) Southern Timber Pacific Northwest Timber New Zealand Timber Timber Funds Real Estate Trading Corporate and Other Total
−Removed: Six Months Ended
−Removed: June 30, 2020
+Added: Nine Months Ended
+Added: September 30, 2020
$85.8 $22.8 $38.2 $0.8 $65.7 ($0.5) ($19.9) $192.9
5 unchanged sentences
Other (c) — — — 1.1 (1.6) — — (0.5)
−Removed: Six Months Ended
−Removed: June 30, 2021
+Added: Nine Months Ended
+Added: September 30, 2021
$86.6 $44.1 $68.7 $2.8 $97.9 $0.6 ($21.4) $279.4
4 unchanged sentences
SOUTHERN TIMBER
−Removed: Second quarter sales of $49.3 million increased $2.5 million, or 5%, versus the prior year period .
−Removed: Harvest volumes decreased 4% to 1.47 million tons versus 1.54 million tons in the prior year period, as wet weather conditions impacted production.
−Removed: Average pine sawtimber stumpage prices increased 10% to $27.96 per ton versus $25.48 per ton in the prior year period, as strong domestic lumber markets and increased log export demand translated into favorable sawtimber pricing.
−Removed: Average pine pulpwood stumpage prices increased 14% to $18.22 per ton versus $15.94 per ton in the prior year period, driven by strong demand coupled with tighter supply due to wet weather conditions.
+Added: Third quarter sales of $44.8 million decreased $2.8 million, or 6%, versus the prior year period.
+Added: Harvest volumes decreased 20% to 1.19 million tons versus 1.48 million tons in the prior year period , as wet weather conditions and constrained trucking availability impacted production across the region.
+Added: Average pine sawtimber stumpage prices increased 12% to $28.06 per ton versus $25.02 per ton in the prior year period.
+Added: The increase in average pine sawtimber stumpage prices was driven by strong domestic lumber demand, as well as upward pressure on chip-n-saw pricing due to increased competition from pulp mills.
+Added: Average pine pulpwood stumpage prices climbed 23% to $19.14 per ton versus $15.50 per ton in the prior year period.
+Added: The significant increase in pulpwood pricing relative to the prior year period reflects strong domestic demand, constrained supply due to wet weather conditions and an increase in pulpwood exports to China.
Overall, weighted-average stumpage prices (including hardwood) increased 16% to $21.88 per ton versus $18.88 per ton in the prior year period.
−Removed: Operating income of $17.0 million increased $5.8 million versus the prior year period due to higher net stumpage prices ($4.0 million), lower leased land and other expenses ($1.0 million), lower depletion rates ($1.0 million) and higher non-timber income ($0.4 million), partially offset by lower volumes ($0.6 million).
−Removed: Second quarter Adjusted EBITDA of $30.6 million was 16%, or $4.1 million, above the prior year period .
−Removed: Year-to-date sales of $101.0 million increased $1.2 million, or 1%, versus the prior year period.
−Removed: Harvest volumes decreased 12% to 2.98 million tons versus 3.38 million in the prior year period, due to timing of harvest operations as compared to the prior year, as well as operational disruptions attributable to wet ground conditions and winter snowstorms.
−Removed: Average pine sawtimber stumpage prices increased 6% to $27.69 per ton versus $26.16 per ton in the prior year period, primarily due to strong domestic lumber demand and growing demand from the export market.
−Removed: Average pine pulpwood stumpage prices increased 11% to $17.69 per ton versus $16.00 per ton in the prior year period, driven by strong demand coupled with tighter supply due to wet weather conditions.
+Added: Operating income of $12.8 million increased $7.7 million versus the prior year period due to the prior year period write-off of timber basis as a result of Hurricane Laura ($6.0 million), higher net stumpage prices ($3.6 million), lower depletion rates ($0.4 million) and lower costs ($0.3 million), partially offset by lower volumes ($2.6 million).
+Added: Third quarter Adjusted EBITDA of $24.4 million was 7%, or $1.7 million, below the prior year period.
+Added: Year-to-date sales of $145.8 million decreased $1.6 million, or 1%, versus the prior year period.
+Added: Harvest volumes decreased 14% to 4.17 million tons versus 4.86 million in the prior year period, primarily due to operational disruptions attributable to wet ground conditions and winter snowstorms.
+Added: Average pine sawtimber stumpage prices increased 7% to $27.62 per ton versus $25.79 per ton in the prior year period, primarily due to strong domestic lumber demand, upward pressure on chip-n-saw pricing due to increased competition from pulp mills and a strengthening export market along the east coast.
+Added: Average pine pulpwood stumpage prices increased 15% to $18.25 per ton versus $15.86 per ton in the prior year period, driven by strong domestic demand,
+Added: constrained supply due to wet weather conditions and an increase in pulpwood exports to China.
Overall, weighted-average stumpage prices (including hardwood) increased 12% to $21.60 per ton versus $19.28 per ton in the prior year period.
−Removed: Operating income of $34.3 million increased $8.0 million versus the prior year
−Removed: period due to higher net stumpage prices ($6.0 million), higher non-timber income ($2.6 million), lower road maintenance, lease, overhead and other expenses ($1.6 million) and lower depletion rates ($1.6 million), partially offset by lower volumes ($3.8 million).
+Added: Operating income of $47.1 million increased $15.7 million versus the prior year period due to higher net stumpage prices ($9.6 million), the prior year period write-off of timber basis as a result of Hurricane Laura ($6.0 million), higher non-timber income ($2.6 million), lower lease, overhead and other expenses ($1.9 million) and lower depletion rates ($2.0 million), partially offset by lower volumes ($6.4 million).
+Added: Year-to-date Adjusted EBITDA of $86.6 million was $0.9 million above the prior year period.
PACIFIC NORTHWEST TIMBER
−Removed: Second quarter sales of $35.3 million increased $9.2 million, or 35%, versus the prior year period .
−Removed: Harvest volumes increased 4% to 400,000 tons versus 385,000 tons in the prior year period , primarily due to incremental volume from the Pope Resources acquisition, which closed midway through the prior year period.
−Removed: Average delivered sawtimber prices increased 30% to $97.80 per ton versus $75.39 per ton in the prior year period , as favorable domestic lumber markets coupled with increased export demand drove higher log prices.
+Added: Third quarter sales of $31.5 million increased $2.6 million, or 9%, versus the prior year period, while harvest volumes of 346,000 tons remained flat versus the prior year period.
+Added: Average delivered sawtimber prices increased 15% to $107.56 per ton versus $93.34 per ton in the prior year period, driven by favorable domestic lumber markets coupled with increased export demand.
Average delivered pulpwood prices decreased 2% to $31.34 per ton versus $32.12 per ton in the prior year period, as increased lumber production resulted in an increased supply of competing sawmill residuals .
−Removed: Operating income of $1.9 million improved $8.6 million versus the prior year period due to higher net stumpage prices ($7.9 million), lower costs ($0.9 million) and higher non-timber income ($0.8 million), partially offset by higher depletion rates ($1.0 million).
−Removed: Second quarter Adjusted EBITDA of $13.9 million was 254%, or $10.0 million, above the prior year period.
+Added: Operating income of $2.1 million improved $3.9 million versus the prior year period due to higher net stumpage prices ($3.2 million), lower costs ($0.5 million) and lower depletion rates ($0.4 million), partially offset by lower non-timber income ($0.2 million).
+Added: Third quarter Adjusted EBITDA of $12.5 million was 38%, or $3.5 million, above the prior year period.
Year-to-date sales of $108.4 million increased $22.2 million, or 26%, versus the prior year period.
2 unchanged sentences
Average delivered pulpwood prices decreased 17% to $29.86 per ton versus $36.01 per ton in the prior year period, as increased lumber production resulted in an increased supply of competing sawmill residuals.
−Removed: Operating income of $3.2 million improved $10.9 million versus the prior year period due to higher net stumpage prices ($13.9 million), higher non-timber income ($1.6 million) and lower costs ($0.5 million), partially offset by higher depletion rates ($5.2 million).
+Added: Operating income of $5.3 million improved $14.7 million versus the prior year period due to higher net stumpage prices ($16.8 million), higher non-timber income ($1.4 million) lower costs ($1.0 million) and higher volumes ($0.2 million), partially offset by higher depletion rates ($4.6 million).
+Added: Year-to-date Adjusted EBITDA of $44.1 million was $21.3 million above the prior year period.
NEW ZEALAND TIMBER
−Removed: Second quarter sales of $80.6 million increased $38.8 million, or 93%, versus the prior year period , due to higher harvest volumes and log prices.
−Removed: Harvest volumes increased 31% to 692,000 tons versus 529,000 tons in the prior year period, driven by strong export and domestic demand versus a prior year period that was negatively impacted by COVID-19 related headwinds.
+Added: Third quarter sales of $75.6 million increased $12.8 million, or 20%, versus the prior year period , as higher log prices were partially offset by lower volumes.
+Added: Harvest volumes decreased 14% to 668,000 tons versus 776,000 tons in the prior year period , primarily due to the government-mandated shutdown of all non-essential activity in New Zealand (including the harvesting and transport of logs) from August 18 th through August 31 st due to an outbreak of COVID-19.
Average delivered prices for export sawtimber increased 59% to $149.68 per ton versus $94.42 per ton in the prior year period, while average delivered prices for domestic sawtimber increased 21% to $85.00 per ton versus $70.24 per ton in the prior year period.
−Removed: The increase in export sawtimber prices was driven primarily by stronger demand from China, as the prior year period was negatively impacted by COVID-19.
−Removed: Improved export pricing in the current year quarter was also due in part to the restriction on competing log imports into China from Australia.
+Added: The increase in export sawtimber prices versus the prior year period reflects the restriction on competing log imports into China from Australia in the current year quarter, as well as the ability of log exporters to pass higher costs along to customers in the current environment.
+Added: While net stumpage realizations on export volume were above prior year period levels, favorable export pricing was largely offset by significantly higher shipping costs, as supply chain issues drove increased freight and demurrage costs.
The increase in domestic sawtimber prices (in U.S.
−Removed: dollar terms) was driven primarily by the rise in the NZ$/US$ exchange rate (US$0.72 per NZ$1.00 versus US$0.62 per NZ$1.00).
+Added: dollar terms) was driven in part by the rise in the NZ$/US$ exchange rate (US$0.70 per NZ$1.00 versus US$0.66 per NZ$1.00).
Excluding the impact of foreign exchange rates, domestic sawtimber prices improved 14% versus the prior year period , following the upward trend in the export market .
−Removed: Operating income of $20.7 million increased $15.7 million versus the prior year period as a result of higher net stumpage prices ($11.7 million), higher volumes ($3.1 million), favorable foreign exchange impacts ($2.1 million) and lower depletion rates ($0.4 million), partially offset by lower carbon credit sales ($0.9 million) and higher costs ($0.7 million).
−Removed: Second quarter Adjusted EBITDA of $27.7 million was 179%, or $17.7 million, above the prior year period .
+Added: Operating income of $13.3 million increased $2.6 million versus the prior year period as a result of higher net stumpage prices ($6.7 million), favorable foreign exchange impacts ($1.2 million) and lower depletion rates ($0.2 million), partially offset by lower carbon credit sales ($3.3 million), lower volumes ($1.9 million) and higher costs ($0.3 million).
+Added: Third quarter Adjusted EBITDA of $19.9 million was 10%, or $1.8 million, above the prior year period.
Year-to-date sales of $213.7 million increased $71.6 million, or 50%, versus the prior year period.
1 unchanged sentence
Average delivered prices for export sawtimber increased 47% to $140.89 per ton versus $95.86 per ton in the prior year period, while average delivered prices for domestic sawtimber increased 21% to $83.79 per ton versus $69.30 per ton in the prior year period.
−Removed: The increase in export sawtimber prices was driven primarily by strong demand from China, as the prior year period was negatively impacted by COVID-19.
+Added: The increase in export sawtimber prices was driven primarily by the restriction on competing log imports into China from Australia in the current year, as well as the ability of log
+Added: exporters to pass higher costs along to customers.
+Added: The increase in export sawtimber prices versus the prior year period was also driven in part by significant COVID-19 disruptions in the prior year period.
The increase in domestic sawtimber prices (in U.S.
1 unchanged sentence
Excluding the impact of foreign exchange rates, domestic sawtimber prices improved 10% versus the prior year period, following the upward trend in the export market.
−Removed: Operating Income of $34.7 million increased $24.2 million versus the prior year period as a result of higher net stumpage prices ($21.1 million), higher volumes ($4.9 million) and favorable foreign exchange impacts ($1.9
−Removed: million), partially offset by lower carbon credit sales ($2.7 million), higher costs ($0.5 million) and higher depletion rates ($0.4 million).
+Added: Operating Income of $48.0 million increased $26.8 million versus the prior year period as a result of higher net stumpage prices ($27.8 million), higher volumes ($3.1 million) and favorable foreign exchange impacts ($3.1 million), partially offset by lower carbon credit sales ($6.1 million), higher costs ($0.8 million) and higher depletion rates ($0.2 million).
Year-to-date Adjusted EBITDA of $68.7 million was $30.5 million above the prior year period.
−Removed: Second quarter sales of $18.6 million increased $11.2 million, or 148%, versus the prior year period, due to higher log prices and harvest volumes.
−Removed: Harvest volumes increased 94% to 175,000 tons versus 90,000 tons in the prior year period, as the prior year period reflected results for only a portion of the quarter following the closing of the Pope Resources acquisition on May 8, 2020.
−Removed: Operating income of $2.0 million versus operating loss of $1.9 million in the prior year period was primarily driven by higher prices.
−Removed: Second quarter Adjusted EBITDA of $1.4 million was $0.7 million above the prior year period.
−Removed: Year-to-date sales of $33.6 million increased $26.1 million, or 346%, versus the prior year period, while harvest volumes increased 255% to 319,000 tons versus 90,000 tons in the prior year period.
−Removed: The prior year period reflected results for only a portion of the year following the closing of the Pope Resources acquisition on May 8, 2020, while the current year reflects full year-to-date activity.
−Removed: Operating income of $3.5 million versus operating loss of $1.9 million in the prior year period was primarily driven by higher prices.
+Added: Third quarter sales of $94.5 million increased $84.7 million, versus the prior year period , while operating income of $41.3 million increased $53.7 million versus the prior year period .
+Added: Third quarter sales and operating income included $87.1 million and $36.0 million, respectively, from the Fund II Timberland Dispositions.
+Added: Third quarter operating income also included a $3.7 million gain on investment in Timber Funds, which reflects the gain recognized on the sale of our investment in Timber Funds III and IV.
+Added: The prior year quarter included timber write-offs of $9.2 million resulting from two fires in Oregon.
+Added: Harvest volumes decreased 44% to 61,000 tons versus 110,000 tons in the prior year period, as Timber Funds III and IV were sold during the quarter and therefore contributed volume only through the July 21st closing date.
+Added: Third quarter Adjusted EBITDA of $0.5 million was $0.3 million above the prior year period.
+Added: Year-to-date sales of $128.1 million increased $110.6 million, versus the prior year period, while operating income of $44.8 million increased $59.0 million versus the prior year period.
+Added: Year-to-date sales and operating income included $87.1 million and $36.0 million, respectively, from the Fund II Timberland Dispositions.
+Added: Year-to-date operating income also included a $3.7 million gain on investment in Timber Funds, which reflects the gain recognized on the sale of our investment in Timber Funds III and IV.
+Added: The prior year period included timber write-offs of $9.2 million resulting from two fires in Oregon.
+Added: Harvest volumes increased 91% to 380,000 tons versus 200,000 tons in the prior year period.
+Added: The prior year period reflected results for only a portion of the year following the closing of the Pope Resources acquisition on May 8, 2020, while the current year reflects activity through July 21 for Timber Funds III and IV.
Year-to-date Adjusted EBITDA of $2.8 million was $2.0 million above the prior year period.
−Removed: Second quarter sales of $74.5 million increased $24.5 million versus the prior year period , while operating income of $50.5 million increased $25.7 million versus the prior year period .
−Removed: Second quarter sales and operating income included $36.0 million and $30.3 million, respectively, from Large Dispositions .
−Removed: Sales and operating income increased versus the prior year period due to a 94% increase in weighted-average prices ($4,571 per acre versus $2,545 per acre in the prior year period ), partially offset by lower acres sold (16,548 acres sold versus 20,310 acres sold in the prior year period).
−Removed: Improved Development sales of $19.3 million i ncluded $11.5 million from the Wildlight development project north of Jacksonville, Florida and $7.9 mil lion from the Belfast Commerce Park development project south of Savannah, Georgia.
−Removed: Sales in Wildlight consisted of a 130-acre sale for $9.1 million ($70,000 per acre) to a national homebuilder for the first phase of an active-adult community, as well as 36 residential lots for $2.3 million (an average of $65,000 per lot or $350,000 per acre).
−Removed: Due to post-closing obligations associated with the 130-acre active-adult sale, $5.3 million of revenue was deferred and will be recognized in future periods.
+Added: Third quarter sales of $93.4 million increased $64.6 million versus the prior year period, while operating income of $60.6 million increased $51.2 million versus the prior year period.
+Added: Third quarter sales and operating income included $20.0 million and $14.5 million , respectively, from Large Dispositions .
+Added: Sales and operating income increased versus the prior year period due to a significant increase in weighted-average prices ($7,554 per acre versus $2,332 per acre in the prior year period) coupled with higher acres sold (12,219 acres sold versus 10,562 acres sold in the prior year period).
+Added: Improved Development sales of $27.8 million included $25.0 million from the Belfast Commerce Park development project south of Savannah, Georgia and $2.8 million from the Wildlight development project north of Jacksonville, Florida.
Sales in the Belfast Commerce Park consisted of a 471-acre parcel for $25.0 million ($53,000 per acre).
+Added: Sales in Wildlight consisted of 42 residential lots for $2.8 million (an average of $66,000 per lot or $354,000 per acre).
This compares to prior year period Improved Development sales of $1.3 million.
−Removed: There were no Unimproved Development sales in the second quarter.
−Removed: This compares to prior year period sales of $8.4 million, which consisted of a 570-acre sale in St.
−Removed: Johns County, Florida for $14,780 per acre.
+Added: Unimproved Development sales of $37.5 million consisted of a 359-acre sale in Kingston, Washington for $105,000 per acre.
+Added: This property was one of the Higher and Better Use assets acquired in our 2020 acquisition of Pope Resources.
+Added: There were no Unimproved Development sales in the prior year period.
Rural sales of $6.9 million consisted of 3,260 acres at an average price of $2,128 per acre.
This compares to prior year period sales of $23.2 million, which consisted of 10,482 acres at an average price of $2,218 per acre.
−Removed: There were no Timberland & Non-Strategic sales in the second quarter.
−Removed: This compares to prior year period sales of $9.6 million, which consisted of 11,907 acres at an average price of $807 per acre.
−Removed: Conservation Easement sales during the quarter were $3.9 million, which reflected a single transaction covering a property in Washington that was acquired in the merger with Pope Resources.
−Removed: There were no Conservation Easement sales in the prior year period.
−Removed: Since these transactions involve the conveyance of certain land use rights rather than an outright sale of the land, they are not reflected in our average per-acre metrics for the segment.
−Removed: Second quarter Adjusted EBITDA of $29.1 million was $15.5 million below the prior year period .
+Added: Timberland & Non-Strategic sales in the current quarter and the prior year quarter were negligible.
+Added: Large Dispositions in the quarter totaled $20.0 million and consisted of 8,088 acres in Washington at an average price of $2,479 per acre.
+Added: There were no Large Dispositions in the prior year period.
+Added: There were no Conservation Easement sales in the third quarter.
+Added: This compares to prior year period sales of $3.1 million.
+Added: Because these transactions involve the conveyance of certain land use rights rather than an outright sale of the land, they are not reflected in our average per-acre metrics for the segment.
+Added: Third quarter Adjusted EBITDA of $63.8 million was $41.5 million above the prior year period.
Year-to-date sales of $178.4 million decreased $19.0 million versus the prior year period, while operating income of $112.8 million increased $51.7 million versus the prior year period.
−Removed: Year-to-date sales and operating income include $36.0 million and $30.3 million, respectively, from a Large Disposition, compared with year-to-date sales and operating income of $116.0 million and $28.7 million from a Large Disposition in the prior year period.
−Removed: Sales decreased in the first six months primarily due to lower volumes ( 18,943 acres sold versus 87,879 acres sold in the prior year period), partially offset by higher weighted-average prices.
−Removed: Year-to-date Adjusted EBITDA of $34.1 million decreased $9.3 million versus the prior year period.
−Removed: Second quarter sales of $34.5 million increased $10.2 million versus the prior year period primarily due to higher prices, partially offset by lower volumes.
+Added: Year-to-date sales and operating income include $56.0 million and $44.8 million, respectively, from Large Dispositions, compared with year-to-date sales and operating income of $116.0 million and $28.7 million from a Large Disposition in the prior year period.
+Added: Sales decreased in the first nine months primarily due to lower volumes ( 31,162 acres sold versus 98,441 acres sold in the prior year period), partially offset by higher weighted-average prices ($5,711 per acre versus $1,978 per acre in the prior year period).
+Added: Year-to-date Adjusted EBITDA of $97.9 million increased $32.2 million versus the prior year period.
+Added: Third quarter sales of $25.6 million increased $3.4 million versus the prior year period primarily due to higher prices, partially offset by lower volumes.
Sales volumes decreased 30% to 177,000 tons versus 252,000 tons in the prior year period.
−Removed: Operating income of $0.4 million increased $0.3 million versus the prior year period .
+Added: The Trading segment generated breakeven results versus an operating loss of $0.6 million in the prior year period.
Year-to-date sales of $76.8 million increased $11.3 million versus the prior year period primarily due to higher prices, partially offset by lower volumes.
Sales volumes decreased 23% to 561,000 tons versus 726,000 tons in the prior year period.
−Removed: Operating Income and Adjusted EBITDA of $0.7 million increased $0.6 million versus the prior year period.
+Added: Year-to-date operating income of $0.6 million increased $1.1 million versus the prior year period.
CORPORATE AND OTHER EXPENSE / ELIMINATIONS
−Removed: Second quarter corporate and other operating expenses of $8.0 million decreased $12.8 million versus the prior year period , which included $13.5 million of costs related to the Pope Resources merger.
−Removed: This positive variance was partially offset by higher overhead expenses.
+Added: Third quarter corporate and other operating expenses of $6.7 million decreased $2.0 million versus the prior year period, primarily due to lower employee benefits costs ($0.6 million), lower legal costs ($0.5 million) and lower other overhead costs ($0.5 million), coupled with $0.4 million of costs related to the Pope Resources merger in the prior year period.
Year-to-date corporate and other operating expenses of $22.3 million decreased $15.0 million versus the prior year period, which included $16.4 million of costs related to the Pope Resources merger.
1 unchanged sentence
INTEREST EXPENSE
−Removed: Second quarter and year-to-date interest expense of $13.0 million and $23.0 million, respectively, increased $3.2 million and $5.0 million versus the prior year period due to higher outstanding debt and a $2.2 million loss from the second quarter termination of a cash flow hedge related to the voluntary repayment of $100 million of term loans.
−Removed: INTEREST AND OTHER MISCELLANEOUS (EXPENSE) INCOME, NET
−Removed: Second quarter and year-to-date interest and other miscellaneous expense, net of $1.1 million, includes costs related to debt extinguishments and modifications.
+Added: Third quarter and year-to-date interest expense of $11.3 million and $34.3 million, respectively, increased $0.8 million and $5.8 million versus the prior year period due to higher average outstanding debt and a $2.2 million loss from the second quarter termination of a cash flow hedge related to the voluntary repayment of $100 million of term loans.
+Added: INTEREST AND OTHER MISCELLANEOUS INCOME (EXPENSE), NET
+Added: Third quarter interest and other miscellaneous income (expense), net of $1.3 million versus ($0.1) million in the prior year period was primarily due to a $0.9 million gain on debt extinguishment related to the voluntary repayment of our $45 million credit facility with Northwest Farm Credit Services (NWFCS), which was assumed in connection with the Pope Resources acquisition.
+Added: Year-to-date interest and other miscellaneous income, net of $0.1 million versus $1.2 million in the prior year period, includes favorable mark to market adjustments on marketable equity securities and carbon options in the prior year, partially offset by costs related to debt extinguishments and modifications.
INCOME TAX EXPENSE
−Removed: Second quarter and year-to-date income tax expense of $6.9 million and $10.3 million, respectively, increased $3.9 million and $3.6 million versus the prior year period.
+Added: Third quarter and year-to-date income tax expense of $2.8 million and $13.1 million, respectively, increased $2.1 million and $5.7 million versus the prior year period.
The New Zealand subsidiary is the primary driver of income tax expense.
In our Southern Timber segment, we now expect full-year harvest volumes of 5.7 to 5.8 million tons, as production has been constrained by regional weather conditions and trucking availability.
−Removed: We further expect that weighted average pricing will remain above prior year levels, driven by continued strong demand from domestic pulp and lumber mills, as well as improving export demand in select U.S.
−Removed: South markets.
−Removed: In our Pacific Northwest Timber segment, we expect full-year harvest volumes of 1.7 to 1.8 million tons.
−Removed: We expect pricing in the region will remain relatively stable as log demand across both the domestic and export markets remains favorable.
−Removed: In our New Zealand Timber segment, we expect full-year harvest volumes of 2.6 to 2.8 million tons.
−Removed: Following the robust start to 2021, we expect relatively lower export pricing over the second half of the year, as log inventories in China have increased significantly in recent weeks.
−Removed: Further, we anticipate that shipping and demurrage costs will remain elevated.
−Removed: In our Real Estate segment, w e expect a strong second half of the year in this segment given the healthy demand for residential and commercial properties within our real estate development projects, as well as continued strength in rural land sales activity.
+Added: We expect that improved pricing will largely offset the decline in volumes.
+Added: In our Pacific Northwest Timber segment, we continue to expect full-year harvest volumes of 1.7 to 1.8 million tons.
+Added: We expect that weighted average log pricing in the region will be lower in the fourth quarter as compared to the third quarter, but will be fairly consistent with the pricing achieved during the first half of the year.
+Added: In our New Zealand Timber segment, we now expect full-year harvest volumes of 2.5 to 2.6 million tons, as we do not expect to fully recover production lost during the third quarter due to the COVID-19 shutdown.
+Added: We further expect lower export pricing during the fourth quarter as log inventories in China remain elevated.
+Added: In our Real Estate segment, the successful completion of a $37.5 million Unimproved Development sale during the third quarter is the primary driver for a favorable revision to our full-year expectations, as we were able to execute on this sale sooner than previously anticipated.
+Added: Following an extraordinarily strong third quarter, we expect real estate closings for the balance of the year to be relatively light.
LIQUIDITY AND CAPITAL RESOURCES
3 unchanged sentences
Our operations have generally produced consistent cash flow and required limited capital resources.
−Removed: Short-term borrowings have helped fund
−Removed: working capital needs while acquisitions of timberlands generally require funding from external sources or Large Dispositions.
+Added: Short-term borrowings have helped fund working capital needs while acquisitions of timberlands generally require funding from external sources or Large Dispositions.
AT-THE-MARKET (“ATM”) EQUITY OFFERING PROGRAM
On September 10, 2020, we entered into a distribution agreement with a group of sales agents through which we may sell common shares, from time to time, having an aggregate sales price of up to $300 million.
−Removed: As of June 30, 2021, $148.8 million remains available for issuance under the program.
+Added: As of September 30, 2021, $97.0 million remains available for issuance under the program.
The following table outlines common stock issuances pursuant to our ATM program (dollars in millions):
Three Months Ended
−Removed: June 30, Six Months Ended June 30,
+Added: September 30, Nine Months Ended September 30,
2021 2020 2021 2020
3 unchanged sentences
SUMMARY OF LIQUIDITY AND FINANCING COMMITMENTS
−Removed: June 30, December 31,
+Added: September 30, December 31,
(millions of dollars) 2021 2020
6 unchanged sentences
Net debt to enterprise value (b)(c) 15 % 23 %
−Removed: (a) Total debt as of June 30, 2021 and December 31, 2020 reflects principal on long-term debt, net of fair value adjustments and gross of deferred financing costs and unamortized discounts.
+Added: (a) Total debt as of September 30, 2021 and December 31, 2020 reflects principal on long-term debt, net of fair value adjustments and gross of deferred financing costs and unamortized discounts.
(b) Net debt is calculated as total debt less cash and cash equivalents.
(c) Enterprise value based on market capitalization (including Rayonier, L.P.
−Removed: “OP” units) plus net debt based on Rayonier’s share price of $35.93 and $29.38 as of June 30, 2021 and December 31, 2020, respectively.
+Added: “OP” units) plus net debt based on Rayonier’s share price of $35.68 and $29.38 as of September 30, 2021 and December 31, 2020, respectively.
SUMMARY OF GUARANTOR FINANCIAL INFORMATION
In March 2012, Rayonier Inc.
−Removed: issued $325 million of 3.75% Senior Notes due 2022 (the “2022 Notes”).
+Added: issued $325 million of 3.75% Senior Notes due 2022 (the “Senior Notes due 2022”).
On May 7, 2020, Rayonier Inc.
2 unchanged sentences
expressly assumed all the obligations of Rayonier Inc.
−Removed: with respect to the outstanding 2022 Notes and Rayonier Inc.
+Added: with respect to the outstanding Senior Notes due 20222 and Rayonier Inc.
agreed to irrevocably, fully and unconditionally guarantee jointly and severally, the obligations of Rayonier, L.P.
−Removed: under the Indenture, including the 2022 Notes.
+Added: under the Indenture, including the Senior Notes due 2022.
Rayonier L.P.
−Removed: is the current issuer of the 2022 Notes.
−Removed: In May 2021, Rayonier, L.P issued $450 million of 2.75% Senior Notes due 2031 (the “2031 Notes”).
−Removed: Rayonier TRS Holdings, together with Rayonier Inc.
−Removed: and Rayonier Operating Company agreed to irrevocably, fully and unconditionally guarantee jointly and severally, the obligations of Rayonier, L.P.
−Removed: in regards to the 2031 Notes.
+Added: is the current issuer of the Senior Notes due 2022.
+Added: In May 2021, Rayonier, L.P.
+Added: issued $450 million of 2.75% Senior Notes due 2031 (the “Senior Notes due 2031”).
+Added: Rayonier TRS Holdings Inc., together with Rayonier Inc.
+Added: and Rayonier Operating Company LLC agreed to irrevocably, fully and unconditionally guarantee jointly and severally, the obligations of Rayonier, L.P.
+Added: in regards to the Senior Notes due 2031.
As a general partner of Rayonier, L.P., Rayonier Inc.
8 unchanged sentences
Rayonier, L.P.’s most significant assets are its interest in operating subsidiaries, which have been eliminated in the table below to eliminate intercompany transactions between the issuer and guarantors and to exclude investments in non-guarantors.
−Removed: As a result, our ability to make
−Removed: required payments on the notes depends on the performance of our operating subsidiaries and their ability to distribute funds to us.
+Added: As a result, our ability to make required payments on the notes depends on the performance of our operating subsidiaries and their ability to distribute funds to us.
There are no material restrictions on dividends from the operating subsidiaries.
The summarized balance sheet information for the consolidated obligor group of debt issued by Rayonier, L.P.
−Removed: for the six months ended June 30, 2021 and year ended December 31, 2020 are provided in the table below:
−Removed: (in millions) June 30, 2021 December 31, 2020
+Added: for the nine months ended September 30, 2021 and year ended December 31, 2020 are provided in the table below:
+Added: (in millions) September 30, 2021 December 31, 2020
Current assets $397.7 $69.7
4 unchanged sentences
The summarized results of operations information for the consolidated obligor group of debt issued by Rayonier, L.P.
−Removed: for the six months ended June 30, 2021 and year ended December 31, 2020 are provided in the table below:
−Removed: (in millions) June 30, 2021 December 31, 2020
+Added: for the nine months ended September 30, 2021 and year ended December 31, 2020 are provided in the table below:
+Added: (in millions) September 30, 2021 December 31, 2020
Cost and expenses ($19.5) ($43.4)
2 unchanged sentences
Revenue from non-guarantors 847.5 859.2
−Removed: The following table summarizes our cash flows from operating, investing and financing activities for the six months ended June 30, 2021 and 2020:
+Added: The following table summarizes our cash flows from operating, investing and financing activities for the nine months ended September 30, 2021 and 2020:
(millions of dollars) 2021 2020
5 unchanged sentences
Cash provided by operating activities increased $139.5 million primarily due to higher operating results.
−Removed: CASH USED FOR INVESTING ACTIVITIES
−Removed: Cash used for investing activities decreased $121.7 million primarily due to the net cash consideration transferred in our merger with Pope Resources in the prior year period ($231.1 million) and other investing activities ($4.1 million), partially offset by lower proceeds from Large Dispositions ($80.4 million), higher timberland acquisitions ($27.6 million), higher real estate development investments ($2.7 million) and higher capital expenditures ($2.8 million).
+Added: CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES
+Added: Cash provided by investing activities of $69.3 million compares to cash used for investing activities of $184.8 million in the prior year period.
+Added: This variance is primarily due to net cash consideration transferred in our merger with Pope Resources in the prior year period ($231.1 million), net proceeds from Fund II Timberland Dispositions ($85.2 million) and net proceeds from the sale of Timber Funds III and IV ($31.1 million) in the current year period and other investing activities ($1.8 million), partially offset by lower proceeds from Large Dispositions ($61.0 million), higher timberland acquisitions ($27.5 million), higher real estate development investments ($3.7 million) and higher capital expenditures ($2.9 million).
CASH PROVIDED BY FINANCING ACTIVITIES
−Removed: Cash provided by financing activities decreased $2.9 million from the prior year period primarily due to lower net borrowings ($106.6 million), increased distributions to consolidated affiliates ($7.6 million), higher dividends paid on common stock ($3.4 million), increased distributions to noncontrolling interests in the Operating Partnership ($1.1 million) and higher debt issuance costs ($2.4 million), partially offset by net proceeds from the issuance of common shares under the ATM equity offering program ($110.7 million), increased proceeds from the issuance of common shares under the Company’s incentive stock plan ($4.4 million), and lower share repurchases ($3.1 million).
+Added: Cash provided by financing activities decreased $8.0 million from the prior year period primarily due to lower net borrowings ($161.6 million), higher distributions to consolidated affiliates ($11.3 million), make-whole fees on the prepayment of NWFCS debt ($6.2 million), higher dividends paid on common stock ($5.1 million), higher debt issuance costs ($2.4 million) and higher distributions to noncontrolling interests in the Operating Partnership ($1.0 million), partially offset by net proceeds from the issuance of common shares under the ATM equity offering program ($167.0 million), noncontrolling interests in consolidated affiliates redemption of shares in the prior year period ($5.1 million), higher proceeds from the issuance of common shares under the Company’s incentive stock plan ($4.4 million) and lower share repurchases ($3.1 million).
EXPECTED 2021 EXPENDITURES
25 unchanged sentences
It removes the impact of specific items that management believes do not directly reflect the core business operations on an ongoing basis attributable to Rayonier.
−Removed: We define Adjusted EBITDA as earnings before interest, taxes, depreciation, depletion, amortization, the non-cash cost of land and improved development, non-operating income and expense, operating income (loss) attributable to noncontrolling interests in Timber Funds, costs related to the merger with Pope Resources and Large Dispositions.
+Added: We define Adjusted EBITDA as earnings before interest, taxes, depreciation, depletion, amortization, the non-cash cost of land and improved development, non-operating income and expense, operating income (loss) attributable to noncontrolling interests in Timber Funds, costs related to the merger with Pope Resources, timber write-offs resulting from casualty events, the gain on investment in Timber Funds, Fund II Timberland Dispositions and Large Dispositions.
We reconcile Adjusted EBITDA to Net Income for the consolidated Company and to Operating Income (Loss) for the segments, as those are the most comparable GAAP measures for each.
1 unchanged sentence
Three Months Ended
−Removed: June 30, Six Months Ended
+Added: September 30, Nine Months Ended
+Added: September 30,
2021 2020 2021 2020
Net Income to Adjusted EBITDA Reconciliation
−Removed: Net income $63.4 $0.5 $78.5 $26.9
+Added: Net Income (Loss) $110.5 ($9.5) $189.0 $17.4
Operating (income) loss attributable to NCI in Timber Funds (30.5) 10.3 (33.3) 12.3
Interest, net attributable to NCI in Timber Funds 0.1 0.2 0.3 0.3
+Added: Income tax expense attributable to NCI in Timber Funds — 0.1 — 0.2
Net Income (Excluding NCI in Timber Funds) 80.1 1.1 156.0 30.2
3 unchanged sentences
Non-cash cost of land and improved development 15.8 7.3 22.8 20.7
−Removed: Non-operating expense (income) 1.2 (1.5) 1.2 (1.1)
−Removed: Costs related to the merger with Pope Resources (a) — 13.5 — 16.0
−Removed: Large Dispositions (b) (30.3) — (30.3) (28.7)
+Added: Timber write-offs resulting from casualty events attributable to Rayonier (a) — 7.9 — 7.9
+Added: Non-operating (income) expense (1.2) 0.2 — (1.0)
+Added: Costs related to the merger with Pope Resources (b) — 0.4 — 16.4
+Added: Gain on investment in Timber Funds (c) (3.7) — (3.7) —
+Added: Fund II Timberland Dispositions attributable to Rayonier (d) (7.2) — (7.2) —
+Added: Large Dispositions (e) (14.5) — (44.8) (28.7)
Adjusted EBITDA $114.6 $67.2 $279.4 $192.9
−Removed: (a) Costs related to the merger with Pope Resources include legal, accounting, due diligence, consulting and other costs related to the merger with Pope Resources.
−Removed: (b) Large Dispositions are defined as transactions involving the sale of timberland that exceed $20 million in size and do not have a demonstrable premium relative to timberland value.
−Removed: In June 2021, we completed the disposition of approximately 9,000 acres located in Washington for a sales price and gain of approximately $36.0 million and $30.3 million, respectively.
−Removed: In March 2020, we completed the disposition of approximately 67,000 acres located in Mississippi for a sales price and gain of approximately $116.0 million and $28.7 million, r espectively.
+Added: (a) Timber write-offs resulting from casualty events include the write-off of merchantable and pre-merchantable timber volume destroyed by casualty events that cannot be salvaged.
+Added: (b) Costs related to the merger with Pope Resources include legal, accounting, due diligence, consulting and other costs related to the merger with Pope Resources.
+Added: (c) Gain on investment in Timber Funds represents the gain recognized on the sale of rights to manage two timber funds (Funds III and IV) previously managed by the Company’s Olympic Resource Management (ORM) subsidiary, as well as its co-investment stake in both funds.
+Added: (d) Fund II Timberland Dispositions represents the disposition of Timber Fund II timberland assets, which we manage and own a co-investment stake in.
+Added: Proceeds from Fund II Timberland Dispositions will ultimately be distributed to owners of ORM Timber Fund II and not reinvested.
+Added: (e) Large Dispositions are defined as transactions involving the sale of timberland that exceed $20 million in size and do not have a demonstrable premium relative to timberland value.
+Added: As of September 30, 2021, we have completed two dispositions of approximately 17,000 acres in total.
+Added: In June 2021, we completed a disposition of approximately 9,000 acres in Washington for a sales price and gain of approximately $36.0 million and $30.3 million, respectively.
+Added: In July 2021, we completed a second disposition of approximately 8,000 acres in Washington, for a sales price and gain of $20.0 million and $14.5 million, respectively.
+Added: In March 2020, we completed a disposition of approximately 67,000 acres located in Mississippi for a sales price and gain of approximate ly $116.0 million and $28.7 million, respectively.
The following tables provide a reconciliation of Operating Income (Loss) by segment to Adjusted EBITDA by segment for the respective periods (in millions of dollars):
Three Months Ended Southern Timber Pacific Northwest Timber New Zealand Timber Timber Funds Real Estate Trading Corporate
−Removed: June 30, 2021
+Added: September 30, 2021
Operating income (loss) $12.8 $2.1 $13.3 $41.3 $60.6 — ($6.7) $123.3
+Added: Gain on investment in Timber Funds (a) — — — (3.7) — — — (3.7)
+Added: Fund II Timberland Dispositions attributable to Rayonier (b) — — — (7.2) — — — (7.2)
Operating income attributable to NCI in Timber Funds — — — (30.5) — — — (30.5)
1 unchanged sentence
Non-cash cost of land and improved development — — — — 15.8 — — 15.8
−Removed: Large Dispositions (a) — — — — (30.3) — — (30.3)
+Added: Large Dispositions (c) — — — — (14.5) — — (14.5)
Adjusted EBITDA $24.4 $12.5 $19.9 $0.5 $63.8 — ($6.4) $114.6
−Removed: June 30, 2020
+Added: September 30, 2020
Operating income (loss) $5.1 ($1.8) $10.7 ($12.4) $9.5 ($0.6) ($8.7) $1.8
Operating loss attributable to NCI in Timber Funds — — — 10.3 — — — 10.3
+Added: Timber write-offs resulting from casualty events attributable to Rayonier (d) 6.0 — — 1.8 — — — 7.9
Depreciation, depletion and amortization 15.0 10.9 7.3 0.5 5.5 — 0.4 39.6
Non-cash cost of land and improved development — — — — 7.3 — — 7.3
−Removed: Costs related to the merger with Pope Resources (b) — — — — — — 13.5 13.5
+Added: Costs related to the merger with Pope Resources (e) — — — — — — 0.4 0.4
Adjusted EBITDA $26.1 $9.1 $18.1 $0.2 $22.2 ($0.6) ($7.9) $67.2
−Removed: (a) Large Dispositions are defined as transactions involving the sale of timberland that exceed $20 million in size and do not have a demonstrable premium relative to timberland value.
−Removed: In June 2021, we completed the disposition of approximately 9,000 acres located in Washington for a sales price and gain of approximately $36.0 million and $30.3 million, respectively.
−Removed: (b) Costs related to the merger with Pope Resources include legal, accounting, due diligence, consulting and other costs related to the merger with Pope Resources.
−Removed: Six Months Ended Southern Timber Pacific Northwest Timber New Zealand Timber Timber Funds Real Estate Trading Corporate
−Removed: June 30, 2021
+Added: (a) Gain on investment in Timber Funds represents the gain recognized on the sale of rights to manage two timber funds (Funds III and IV) previously managed by the Company’s Olympic Resource Management (ORM) subsidiary, as well as its co-investment stake in both funds.
+Added: (b) Fund II Timberland Dispositions attributable to Rayonier reflects the proportionate share of operating income attributable to Rayonier related to the disposition of timberland assets in Timber Fund II.
+Added: (c) Large Dispositions are defined as transactions involving the sale of timberland that exceed $20 million in size and do not have a demonstrable premium relative to timberland value.
+Added: In July 2021, we completed the disposition of approximately 8,000 acres in Washington for a sales price and gain of $20.0 million and $14.5 million, respectively.
+Added: (d) Timber write-offs resulting from casualty events include the write-off of merchantable and pre-merchantable timber volume destroyed by casualty events that cannot be salvaged.
+Added: (e) Costs related to the merger with Pope Resources include legal, accounting, due diligence, consulting and other costs related to the merger with Pope Resources.
+Added: Nine Months Ended Southern Timber Pacific Northwest Timber New Zealand Timber Timber Funds Real Estate Trading Corporate
+Added: September 30, 2021
Operating income (loss) $47.1 $5.3 $48.0 $44.8 $112.8 $0.6 ($22.3) $236.2
+Added: Gain on investment in Timber Funds (a) — — — (3.7) — — — (3.7)
+Added: Fund II Timberland Dispositions attributable to Rayonier (b) — — — (7.2) — — — (7.2)
Operating income attributable to NCI in Timber Funds — — — (33.3) — — — (33.3)
1 unchanged sentence
Non-cash cost of land and improved development — — — — 22.8 — — 22.8
−Removed: Large Dispositions (a) — — — — (30.3) — — (30.3)
+Added: Large Dispositions (c) — — — — (44.8) — — (44.8)
Adjusted EBITDA $86.6 $44.1 $68.7 $2.8 $97.9 $0.6 ($21.4) $279.4
−Removed: June 30, 2020
+Added: September 30, 2020
Operating income (loss) $31.4 ($9.5) $21.1 ($14.3) $61.1 ($0.5) ($37.3) $52.0
Operating loss attributable to NCI in Timber Funds — — — 12.3 — — — 12.3
+Added: Timber write-offs resulting from casualty events attributable to Rayonier (d) 6.0 — — 1.8 — — — 7.9
Depreciation, depletion and amortization 48.4 32.2 17.1 1.0 12.6 — 1.0 112.2
Non-cash cost of land and improved development — — — — 20.7 — — 20.7
−Removed: Costs related to merger with Pope Resources (b) — — — — — — 16.0 16.0
−Removed: Large Dispositions (a) — — — — (28.7) — — (28.7)
+Added: Costs related to merger with Pope Resources (e) — — — — — — 16.4 16.4
+Added: Large Dispositions (c) — — — — (28.7) — — (28.7)
Adjusted EBITDA $85.8 $22.8 $38.2 $0.8 $65.7 ($0.5) ($19.9) $192.9
−Removed: (a) Large Dispositions are defined as transactions involving the sale of timberland that exceed $20 million in size and do not have a demonstrable premium relative to timberland value.
−Removed: In June 2021, we completed the disposition of approximately 9,000 acres located in Washington for a sales price and gain of approximately $36.0 million and $30.3 million, respectively.
−Removed: In March 2020, we completed the disposition of approximately 67,000 acres located in Mississippi for a sales price and gain of approximately $116.0 million and $28.7 million, r espectively.
−Removed: (b) Costs related to the merger with Pope Resources include legal, accounting, due diligence, consulting and other costs related to the merger with Pope Resources.
+Added: (a) Gain on investment in Timber Funds represents the gain recognized on the sale of rights to manage two timber funds (Funds III and IV) previously managed by the Company’s Olympic Resource Management (ORM) subsidiary, as well as its co-investment stake in both funds.
+Added: (b) Fund II Timberland Dispositions attributable to Rayonier reflects the proportionate share of operating income attributable to Rayonier related to the disposition of timberland assets in Timber Fund II.
+Added: (c) Large Dispositions are defined as transactions involving the sale of timberland that exceed $20 million in size and do not have a demonstrable premium relative to timberland value.
+Added: As of September 30, 2021, we have completed two dispositions of approximately 17,000 acres in total.
+Added: In June 2021, we completed a disposition of approximately 9,000 acres in Washington for a sales price and gain of approximately $36.0 million and $30.3 million, respectively.
+Added: In July 2021, we completed a second disposition of approximately 8,000 acres in Washington, for a sales price and gain of $20.0 million and $14.5 million, respectively.
+Added: In March 2020, we completed a disposition of approximately 67,000 acres located in Mississippi for a sales price and gain of approximate ly $116.0 million and $28.7 million, respectively.
+Added: (d) Timber write-offs resulting from casualty events include the write-off of merchantable and pre-merchantable timber volume destroyed by casualty events that cannot be salvaged.
+Added: (e) Costs related to the merger with Pope Resources include legal, accounting, due diligence, consulting and other costs related to the merger with Pope Resources.
The following table provides a reconciliation of Cash Provided by Operating Activities to Adjusted CAD (in millions of dollars):
−Removed: Six Months Ended June 30,
+Added: Nine Months Ended September 30,
Cash provided by operating activities $277.4 $138.0
6 unchanged sentences
CAD after mandatory debt repayments (121.1) 124.2
−Removed: Cash used for investing activities ($49.1) ($170.8)
+Added: Cash provided by (used for) investing activities $69.3 ($184.8)
Cash provided by financing activities $47.7 $55.7
−Removed: (a) Capital expenditures exclude timberland acquisitions of $51.9 million and $24.2 million during the six months ended June 30, 2021 and June 30, 2020, respectively.
−Removed: The six months ended June 30, 2020 also exclude the Pope Resources acquisition.
+Added: (a) Capital expenditures exclude timberland acquisitions of $51.9 million and $24.4 million during the nine months ended September 30, 2021 and September 30, 2020, respectively.
+Added: The nine months ended September 30, 2020 also exclude the Pope Resources acquisition.
(b) Costs related to the merger with Pope Resources include legal, accounting, due diligence, consulting and other costs related to the merger with Pope Resources.
The following table provides supplemental cash flow data (in millions):
−Removed: Six Months Ended June 30,
−Removed: Purchase of timberlands ($51.9) ($24.2)
+Added: Nine Months Ended September 30,
+Added: Purchase of timberlands (a) ($51.9) ($24.4)
Real Estate Development Investments (9.2) (5.4)
Distributions to noncontrolling interests in consolidated affiliates (19.6) (8.2)
+Added: (a) The nine months ended September 30, 2020 excludes timberlands acquired in the merger with Pope Resources.
LIQUIDITY FACILITIES
6 unchanged sentences
Off-balance sheet arrangements are not considered a source of liquidity or capital resources and do not expose us to material risks or material unfavorable financial impacts.
−Removed: See Note 15 — Guarantees for details on the letters of credit and surety bonds as of June 30, 2021.
+Added: See Note 15 — Guarantees for details on the letters of credit and surety bonds as of September 30, 2021.
CONTRACTUAL FINANCIAL OBLIGATIONS
1 unchanged sentence
These financial obligations are recorded in accordance with accounting rules applicable to the underlying transaction, with the result that some are recorded as liabilities on the Consolidated Balance Sheets, while others are required to be disclosed in the Notes to Consolidated Financial Statements and Management’s Discussion and Analysis.
−Removed: The following table aggregates our contractual financial obligations as of June 30, 2021 and anticipated cash spending by period:
+Added: The following table aggregates our contractual financial obligations as of September 30, 2021 and anticipated cash spending by period:
Contractual Financial Obligations (in millions) Total Payments Due by Period
1 unchanged sentence
Long-term debt, excluding Timber Funds (a) $1,176.4 — $125.0 $23.7 $1,027.7
−Removed: Long-term debt, Timber Funds (b) 57.4 — 43.0 14.4 —
−Removed: Current maturities of long-term debt, excluding Timber Funds (c) 200.0 — 200.0 — —
−Removed: Interest payments on long-term debt, excluding Timber Funds (d) 214.1 18.9 56.9 50.1 88.2
−Removed: Interest payments on long-term debt, Timber Funds (d) 4.9 1.0 3.4 0.5 —
−Removed: Operating leases — timberland (e) 188.2 5.5 15.6 14.4 152.7
−Removed: Operating leases — PP&E, offices (e) 6.3 0.7 2.1 1.8 1.7
−Removed: Commitments — development projects (f) 27.2 18.2 4.5 0.6 3.9
−Removed: Commitments — environmental remediation (g) 11.3 0.5 3.9 4.2 2.7
−Removed: Commitments — other (h) 58.9 6.2 25.2 14.8 12.7
+Added: Current maturities of long-term debt, excluding Timber Funds (b) 200.0 — 200.0 — —
+Added: Interest payments on long-term debt, excluding Timber Funds (c) 200.4 15.3 54.2 47.7 83.2
+Added: Operating leases — timberland (d) 184.2 4.2 15.4 14.3 150.3
+Added: Operating leases — PP&E, offices (d) 6.3 0.4 2.5 1.8 1.6
+Added: Commitments — development projects (e) 29.5 11.1 14.0 0.5 3.9
+Added: Commitments — environmental remediation (f) 10.9 0.2 4.7 3.7 2.3
+Added: Commitments — other (g) 53.2 3.3 26.7 14.9 8.3
Total contractual cash obligations $1,860.9 $34.5 $442.5 $106.6 $1,277.3
−Removed: (a) The book value of long-term debt, excluding Timber Funds, net of deferred financing costs, unamortized discounts and fair market value adjustments, is currently recorded at $1,192.9 million o n our Consolidated Balance Sheets, but upon maturity the liability will be $1,194.2 million.
−Removed: See Note 9 — Debt for additional information.
−Removed: (b) The book value of long-term debt for the Timber Funds, net of fair market value adjustments, is currently recorded at $59.8 million on our Consolidated Balance Sheets, but upon maturity the liability will be $57.4 million.
+Added: (a) The book value of long-term debt, excluding Timber Funds, net of deferred financing costs and unamortized discounts, is currently recorded at $1,168.0 million on our Consolidated Balance Sheets, but upon maturity the liability will be $1,176.4 million.
See Note 9 — Debt for additional information.
−Removed: (c) The book value of current maturities of long-term debt, excluding Timber Funds, net of deferred financing costs is currently recorded at $199.8 million on our Consolidated Balance Sheets, but upon maturity the liability will be $200.0 million.
+Added: (b) The book value of current maturities of long-term debt, excluding Timber Funds, net of deferred financing costs is currently recorded at $199.9 million on our Consolidated Balance Sheets, but upon maturity the liability will be $200.0 million.
See Note 9 - Debt for additional information.
−Removed: (d) Projected interest payments for variable rate debt were calculated based on outstanding principal amounts and interest rates as of June 30, 2021.
−Removed: (e) Excludes anticipated renewal options.
−Removed: (f) Commitments — developmental projects primarily consists of payments expected to be made on our Wildlight and Richmond Hill developmental projects.
−Removed: (g) Commitments — environmental remediation represents our estimate of potential liability associated with environmental contamination at Port Gamble.
+Added: (c) Projected interest payments for variable rate debt were calculated based on outstanding principal amounts and interest rates as of September 30, 2021.
+Added: (d) Excludes anticipated renewal options.
+Added: (e) Commitments — developmental projects primarily consists of payments expected to be made on our Wildlight and Richmond Hill developmental projects.
+Added: (f) Commitments — environmental remediation represents our estimate of potential liability associated with environmental contamination at Port Gamble.
See Note 14 - Environmental Liabilities .
−Removed: (h) Commitments — other includes payments expected to be made on financial instruments (foreign exchange contracts, interest rate swaps and forward-starting interest rate swaps) and other purchase obligations.
+Added: (g) Commitments — other includes payments expected to be made on financial instruments (foreign exchange contracts, interest rate swaps and forward-starting interest rate swaps) and other purchase obligations.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.