Item 2. Properties
Item 2. PROPERTIES
Our timber operations are comprised of our core timberland holdings, which are disaggregated into three geographically distinct reporting segments: Southern Timber, Pacific Northwest Timber and New Zealand Timber. The following table provides a breakdown of our timberland holdings as of September 30, 2022 and December 31, 2022:
Core Timberland Holdings
(acres in 000s) As of September 30, 2022
As of December 31, 2022
Owned Leased Total Owned Leased Total
Southern
Alabama 223 14 237 258 14 272
Arkansas — 4 4 — 2 2
Florida 348 51 399 347 47 394
Georgia 618 64 682 647 64 711
Louisiana 139 — 139 148 — 148
Oklahoma 91 — 91 91 — 91
South Carolina 16 — 16 16 — 16
Texas 221 — 221 285 — 285
1,656 133 1,789 1,792 127 1,919
Pacific Northwest
Oregon 61 — 61 61 — 61
Washington 421 4 425 410 3 413
482 4 486 471 3 474
New Zealand (a) 187 230 417 188 229 417
Total 2,325 367 2,692 2,451 359 2,810
(a) Represents legal acres owned and leased by the New Zealand subsidiary, in which Rayonier owns a 77% interest. As of December 31, 2022, legal acres in New Zealand were comprised of 297,000 plantable acres and 120,000 non-productive acres.
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The following tables detail changes in our portfolio of owned and leased timberlands by state from December 31, 2021 to December 31, 2022:
(acres in 000s) Acres Owned
December 31, 2021
Acquisitions Sales December 31, 2022
Southern
Alabama 223 36 (1) 258
Florida 350 1 (4) 347
Georgia 619 29 (1) 647
Louisiana 140 9 (1) 148
Oklahoma 92 — (1) 91
South Carolina 16 — — 16
Texas 225 65 (5) 285
1,665 140 (13) 1,792
Pacific Northwest
Oregon 61 — — 61
Washington 425 — (15) 410
486 — (15) 471
New Zealand (a) 187 1 — 188
Total 2,338 141 (28) 2,451
(a) Represents legal acres owned by the New Zealand subsidiary, in which Rayonier has a 77% interest.
(acres in 000s) Acres Leased
December 31, 2021
New Leases Sold/Expired Leases (a) December 31, 2022
Southern
Alabama 14 — — 14
Arkansas 4 — (2) 2
Florida 51 — (4) 47
Georgia 64 — — 64
133 — (6) 127
Pacific Northwest
Washington (b) 4 — (1) 3
New Zealand (c) 232 — (3) 229
Total 369 — (10) 359
(a) Includes acres previously under lease that have been harvested and activity for the relinquishment of leased acres.
(b) Primarily timber reservations acquired in the merger with Pope Resources.
(c) Represents legal acres leased by the New Zealand subsidiary, in which Rayonier has a 77% interest.
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TIMBERLAND LEASES & DEEDS
See Note 16 - Leases for more information on U.S. and New Zealand timberland leases including lease terms and renewal provisions.
The following table details our acres under lease as of December 31, 2022 by type of lease and estimated lease expiration:
(acres in 000s) Lease Expiration
Location Type of Lease Total 2023-2032 2033-2042 2043-2052 Thereafter
Southern Fixed Term 117 73 38 — 6
Fixed Term with Renewal Option (a) 10 3 7 — —
Pacific Northwest Fixed Term (b) 3 — 2 1 —
New Zealand CFL - Perpetual (c) 75 — — — 75
CFL - Fixed Term (c) 3 — — — 3
CFL - Terminating (c) 11 1 — 8 2
Forestry Right (c) 124 35 4 6 79
Fixed Term Land Leases 16 — — 2 14
Total Acres under Long-term Leases 359 112 51 17 179
(a) Includes approximately 2,000 acres of timber deeds.
(b) Primarily timber reservations acquired in the merger with Pope Resources.
(c) Estimated lease expiration / termination based on the earlier of: (1) the scheduled expiration / termination date, or (2) the estimated year of final harvest before such expiration / termination date.
The following table details our estimated leased acres, lease expirations and lease costs over the next five years:
(acres and dollars in 000s, except per acre amounts)
Location 2023 2024 2025 2026 2027
Southern
Leased Acres Expiring (a) 35 2 24 — 11
Year-end Leased Acres (a) 92 90 66 66 55
Estimated Annual Lease Cost (a)(b) $4,285 $3,579 $3,551 $2,987 $2,925
Average Lease Cost per Acre (a) $37.69 $42.10 $41.99 $49.68 $49.50
Pacific Northwest
Leased Acres Expiring — — — — —
Year-End Leased Acres (c) 3 3 3 3 3
New Zealand
Leased Acres Expiring — — 1 10 —
Year-end Leased Acres 229 229 228 218 218
Estimated Annual Lease Cost (b)(e) $4,762 $4,762 $4,762 $4,748 $4,748
Average Lease Cost per Acre (d)(e) $25.91 $25.91 $25.91 $25.90 $25.90
(a) Includes timber deeds.
(b) Represents capitalized and expensed lease payments.
(c) Primarily timber reservations acquired in the merger with Pope Resources for which no lease payments are made.
(d) Excludes lump sum payments.
(e) Based on the year-end foreign exchange rate.
OTHER NON-TIMBERLAND LEASES
See Note 16 - Leases for information on other non-timberland leases.
Item 3. LEGAL PROCEEDINGS
The information set forth under Note 11 — Contingencies is incorporated herein by reference.
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Item 4. MINE SAFETY DISCLOSURES
Not applicable.
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PART II