Item 2. Properties
Item 2. PROPERTIES
Our timber operations 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, 2023 and December 31, 2023:
(acres in 000s) As of September 30, 2023
As of December 31, 2023
Owned Leased Total Owned Leased Total
Southern
Alabama 256 5 261 250 5 255
Arkansas — 2 2 — 2 2
Florida 362 50 412 361 36 397
Georgia 623 65 688 612 50 662
Louisiana 147 — 147 147 — 147
Oklahoma 91 — 91 91 — 91
South Carolina 16 — 16 16 — 16
Texas 282 — 282 282 — 282
1,777 122 1,899 1,759 93 1,852
Pacific Northwest
Oregon 61 — 61 6 — 6
Washington 410 3 413 408 4 412
471 3 474 414 4 418
New Zealand (a) 188 231 419 188 233 421
Total 2,436 356 2,792 2,361 330 2,691
(a) Represents legal acres owned and leased by the New Zealand subsidiary, in which Rayonier owns a 77% interest. As of December 31, 2023, legal acres in New Zealand were comprised of 297,000 plantable acres and 124,000 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, 2022 to December 31, 2023:
(acres in 000s) Acres Owned
December 31, 2022
Acquisitions Sales Other (a) December 31, 2023
Southern
Alabama 258 — (7) (1) 250
Florida 347 2 (3) 15 361
Georgia 647 — (12) (23) 612
Louisiana 148 — (1) — 147
Oklahoma 91 — — — 91
South Carolina 16 — — — 16
Texas 285 1 (5) 1 282
1,792 3 (28) (8) 1,759
Pacific Northwest
Oregon 61 — (55) — 6
Washington 410 — (2) — 408
471 — (57) — 414
New Zealand (b) 188 — — — 188
Total 2,451 3 (85) (8) 2,361
(a) Includes adjustments for land mapping reviews.
(b) Represents legal acres owned by the New Zealand subsidiary, in which Rayonier has a 77% interest.
(acres in 000s) Acres Leased
December 31, 2022
New Leases Sold/Expired Leases (a) Other (b) December 31, 2023
Southern
Alabama 14 — (9) — 5
Arkansas 2 — — — 2
Florida 47 — (14) 3 36
Georgia 64 — (15) 1 50
127 — (38) 4 93
Pacific Northwest
Washington (c) 3 — — 1 4
New Zealand (d) 229 1 — 3 233
Total 359 1 (38) 8 330
(a) Includes acres previously under lease that have been harvested and activity for the relinquishment of leased acres.
(b) Includes adjustments for land mapping reviews.
(c) Primarily timber reservations acquired in the merger with Pope Resources.
(d) 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, 2023 by type of lease and estimated lease expiration:
(acres in 000s) Lease Expiration
Location Type of Lease Total 2024-2033 2034-2043 2044-2053 Thereafter
Southern Fixed Term 83 42 35 — 6
Fixed Term with Renewal Option (a) 10 10 — — —
Pacific Northwest Fixed Term (b) 4 1 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) 128 35 4 7 82
Fixed Term Land Leases 16 — — 2 14
Total Acres under Long-term Leases 330 89 41 18 182
(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 2024 2025 2026 2027 2028
Southern
Leased Acres Expiring (a) 2 27 — 11 —
Year-end Leased Acres (a) 91 64 64 53 53
Estimated Annual Lease Cost (a)(b) $3,585 $3,554 $2,952 $2,903 $2,483
Average Lease Cost per Acre (a) $41.90 $41.79 $50.44 $50.30 $52.31
Pacific Northwest
Leased Acres Expiring — — — — —
Year-End Leased Acres (c) 4 4 4 4 4
New Zealand
Leased Acres Expiring — 1 10 — —
Year-end Leased Acres 233 232 222 222 222
Estimated Annual Lease Cost (b)(e) $4,765 $4,765 $4,762 $4,759 $4,759
Average Lease Cost per Acre (d)(e) $26.59 $26.59 $26.59 $26.59 $26.59
(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.
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Item 3. LEGAL PROCEEDINGS
The information set forth under Note 11 — Contingencies is incorporated herein by reference.
Item 4. MINE SAFETY DISCLOSURES
Not applicable.
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PART II