RAYONIER INC 10-Q

Item 1. Financial Statements RAYONIER INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) (Unaudited) (Dollars in thousands, except per share amounts) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 SALES ( NOTE 4 ) $ 177,531 $ 124,103 $ 366,990 $ 337,446 Costs and Expenses Cost of sales ( 119,126 ) ( 86,332 ) ( 258,984 ) ( 246,755 ) Selling and general expenses ( 17,008 ) ( 18,276 ) ( 50,621 ) ( 57,865 ) Other operating income (expense), net ( Note 15 ) 313 ( 663 ) ( 1,071 ) ( 815 ) ( 135,821 ) ( 105,271 ) ( 310,676 ) ( 305,435 ) OPERATING INCOME 41,710 18,832 56,314 32,011 Interest expense, net ( 6,768 ) ( 9,209 ) ( 19,704 ) ( 27,186 ) Interest income 9,806 1,098 15,009 4,752 Other miscellaneous (expense) income, net ( 1,039 ) 11,529 ( 3,443 ) 3,276 INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 43,709 22,250 48,176 12,853 Income tax (expense) benefit ( Note 16 ) — ( 10 ) ( 291 ) 981 INCOME FROM CONTINUING OPERATIONS 43,709 22,240 47,885 13,834 DISCONTINUED OPERATIONS, NET ( NOTE 2 ) Income from operations of discontinued operations, net of tax — 8,202 1,883 21,949 Gain on sale of discontinued operations — — 404,463 — INCOME FROM DISCONTINUED OPERATIONS — 8,202 406,346 21,949 NET INCOME 43,709 30,442 454,231 35,783 Less: Net income attributable to noncontrolling interests in the Operating Partnership ( 522 ) ( 391 ) ( 5,952 ) ( 437 ) Less: Net (income) loss attributable to noncontrolling interests in consolidated affiliates — ( 1,293 ) 192 ( 3,328 ) NET INCOME ATTRIBUTABLE TO RAYONIER INC. 43,187 28,758 448,471 32,018 OTHER COMPREHENSIVE INCOME (LOSS), RELATING TO CONTINUING OPERATIONS Cash flow hedges, net of income tax effect of $ 0 , $ 0 , $ 0 and $ 0 ( 3,748 ) ( 21,771 ) ( 18,475 ) ( 16,106 ) Pension and postretirement benefit plans, net of income tax effect of $ 0 , $ 0 , $ 0 and $ 1,222 ( 2 ) 139 ( 5 ) 9,701 OTHER COMPREHENSIVE INCOME, RELATING TO DISCONTINUED OPERATIONS Foreign currency translation adjustment, net of income tax effect of $ 0 , $ 0 , $ 0 and $ 0 — 13,338 20,475 2,402 Cash flow hedges, net of income tax effect of $ 0 , $ 2,312 , $ 3,531 and $ 1,339 — 5,944 9,080 3,442 Deconsolidation of discontinued operations, net of income tax effect of $ 0 , $ 0 , $ 0 and $ 0 — — 29,068 — Total other comprehensive (loss) income ( 3,750 ) ( 2,350 ) 40,143 ( 561 ) COMPREHENSIVE INCOME 39,959 28,092 494,374 35,222 Less: Comprehensive income attributable to noncontrolling interests in the Operating Partnership ( 477 ) ( 334 ) ( 6,450 ) ( 417 ) Less: Comprehensive income attributable to noncontrolling interests in consolidated affiliates — ( 3,195 ) ( 2,605 ) ( 4,168 ) COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. $ 39,482 $ 24,563 $ 485,319 $ 30,637 EARNINGS PER COMMON SHARE ( NOTE 6 ) BASIC EARNINGS PER SHARE ATTRIBUTABLE TO RAYONIER INC. Continuing Operations $ 0.28 $ 0.15 $ 0.31 $ 0.09 Discontinued Operations — $ 0.05 $ 2.60 $ 0.12 Net Income $ 0.28 $ 0.19 $ 2.90 $ 0.22 DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO RAYONIER INC. Continuing Operations $ 0.28 $ 0.15 $ 0.30 $ 0.09 Discontinued Operations — $ 0.05 $ 2.58 $ 0.12 Net Income $ 0.28 $ 0.19 $ 2.88 $ 0.21 See Notes to Consolidated Financial Statements. 1 Table of Contents RAYONIER INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) (Dollars in thousands) September 30, 2025 December 31, 2024 ASSETS CURRENT ASSETS Cash and cash equivalents $ 919,582 $ 303,065 Restricted cash, current ( Note 18 ) — 19,366 Trade receivables, less allowance for doubtful accounts of $ 328 and $ 401 13,553 8,006 Other receivables 6,532 13,267 Inventory ( Note 14 ) 16,203 30,879 Prepaid expenses 9,639 9,566 Assets held for sale (excluding discontinued operations) ( Note 19 ) 3,386 5,371 Other current assets 4,026 53 Current assets of discontinued operations ( Note 2 ) — 47,320 Total current assets 972,921 436,893 TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION 2,313,047 2,384,345 HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS ( NOTE 13 ) 109,536 109,610 PROPERTY, PLANT AND EQUIPMENT Land 5,581 5,581 Buildings 24,493 24,493 Machinery and equipment 6,948 4,876 Construction in progress 1,312 779 Total property, plant and equipment, gross 38,334 35,729 Less — accumulated depreciation ( 20,384 ) ( 18,297 ) Total property, plant and equipment, net 17,950 17,432 RESTRICTED CASH, NON-CURRENT ( NOTE 18 ) 677 676 RIGHT-OF-USE ASSETS 18,228 18,588 OTHER ASSETS 59,530 78,276 NON-CURRENT ASSETS OF DISCONTINUED OPERATIONS ( NOTE 2 ) — 428,599 TOTAL ASSETS $ 3,491,889 $ 3,474,419 LIABILITIES, NONCONTROLLING INTERESTS IN THE OPERATING PARTNERSHIP AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable $ 13,566 $ 16,914 Current maturities of long-term debt, net ( Note 7 ) 199,969 — Accrued taxes 9,350 1,840 Accrued payroll and benefits 12,166 15,317 Accrued interest 7,702 5,228 Dividend and distribution payable — 271,815 Deferred revenue 25,509 20,902 Other current liabilities 14,297 9,359 Current liabilities of discontinued operations ( Note 2 ) — 47,335 Total current liabilities 282,559 388,710 LONG-TERM DEBT, NET ( NOTE 7 ) 845,119 1,044,410 LONG-TERM LEASE LIABILITY 15,587 16,260 LONG-TERM DEFERRED REVENUE 11,219 10,697 OTHER NON-CURRENT LIABILITIES 12,458 11,125 NON-CURRENT LIABILITIES OF DISCONTINUED OPERATIONS ( NOTE 2 ) — 170,841 CONTINGENCIES ( NOTE 10 ) NONCONTROLLING INTERESTS IN THE OPERATING PARTNERSHIP ( NOTE 5 ) 46,242 51,843 SHAREHOLDERS’ EQUITY Common Shares, 480,000,000 shares authorized, 153,871,154 and 148,536,643 shares issued and outstanding 1,737,067 1,522,487 Retained earnings 514,226 257,254 Accumulated other comprehensive income (loss) ( Note 17 ) 27,412 ( 10,429 ) TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY 2,278,705 1,769,312 Noncontrolling interests in consolidated affiliates ( Note 5 ) — 11,221 TOTAL SHAREHOLDERS’ EQUITY 2,278,705 1,780,533 TOTAL LIABILITIES, NONCONTROLLING INTERESTS IN THE OPERATING PARTNERSHIP AND SHAREHOLDERS’ EQUITY $ 3,491,889 $ 3,474,419 See Notes to Consolidated Financial Statements. 2 Table of Contents RAYONIER INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited) (Dollars in thousands, except share data) Common Shares Retained Earnings Accumulated Other Comprehensive Income (Loss) Noncontrolling Interests in Consolidated Affiliates Shareholders’ Equity Shares Amount Balance, January 1, 2025 148,536,643 $ 1,522,487 $ 257,254 ($ 10,429 ) $ 11,221 $ 1,780,533 Loss from continuing operations — — ( 5,592 ) — — ( 5,592 ) Income from discontinued operations — — 2,122 — 385 2,507 Net loss attributable to noncontrolling interests in the Operating Partnership — — 46 — — 46 Dividends ($ 0.2725 per share) (a) — — ( 42,686 ) — — ( 42,686 ) Issuance of common shares from special dividend (b) 7,560,983 200,454 — — — 200,454 Issuance of common shares under incentive stock plans 5,566 — — — — — Stock-based incentive compensation — 2,281 — — — 2,281 Repurchase of common shares to pay withholding taxes on vested incentive stock awards ( 1,420 ) ( 38 ) — — — ( 38 ) Repurchase of common shares made under repurchase program ( 95,000 ) — ( 2,623 ) — — ( 2,623 ) Adjustment of noncontrolling interests in the Operating Partnership — — ( 4,341 ) — — ( 4,341 ) Conversion of units into common shares 1,000 28 — — — 28 Pension and postretirement benefit plans — — — ( 2 ) — ( 2 ) Foreign currency translation adjustment — — — 3,515 118 3,633 Cash flow hedges — — — ( 7,441 ) 394 ( 7,047 ) Allocation of other comprehensive loss to noncontrolling interests in the Operating Partnership — — — 53 — 53 Distributions to noncontrolling interests in consolidated affiliates — — — — ( 1,911 ) ( 1,911 ) Balance, March 31, 2025 156,007,772 $ 1,725,212 $ 204,180 ($ 14,304 ) $ 10,207 $ 1,925,295 Income from continuing operations — — 9,769 — — 9,769 Income (loss) from discontinued operations — — 404,415 — ( 577 ) 403,838 Net income attributable to noncontrolling interests in the Operating Partnership — — ( 5,476 ) — — ( 5,476 ) Deconsolidation of discontinued operations — — — 29,068 ( 10,744 ) 18,324 Dividends ($ 0.2725 per share) (a) — — ( 42,387 ) — — ( 42,387 ) Issuance of common shares under incentive stock plans 315,017 — — — — — Stock-based incentive compensation — 3,628 — — — 3,628 Repurchase of common shares to pay withholding taxes on vested incentive stock awards ( 98,148 ) ( 2,640 ) — — — ( 2,640 ) Repurchase of common shares made under repurchase program ( 1,472,928 ) — ( 34,928 ) — — ( 34,928 ) Adjustment of noncontrolling interests in the Operating Partnership — — 9,514 — — 9,514 Conversion of units into common shares 9,519 218 — — — 218 Pension and postretirement benefit plans — — — ( 2 ) — ( 2 ) Foreign currency translation adjustment — — — 16,252 590 16,842 Cash flow hedges — — — ( 295 ) 1,695 1,400 Allocation of other comprehensive income to noncontrolling interests in the Operating Partnership — — — ( 7 ) — ( 7 ) Distributions to noncontrolling interests in consolidated affiliates — — — — ( 1,171 ) ( 1,171 ) Balance, June 30, 2025 154,761,232 $ 1,726,418 $ 545,087 $ 30,712 — $ 2,302,217 3 Table of Contents RAYONIER INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (CONTINUED) (Unaudited) (Dollars in thousands, except share data) Common Shares Retained Earnings Accumulated Other Comprehensive Income (Loss) Noncontrolling Interests in Consolidated Affiliates Shareholders’ Equity Shares Amount Balance, June 30, 2025 154,761,232 $ 1,726,418 $ 545,087 $ 30,712 — $ 2,302,217 Income from continuing operations — — 43,709 — — 43,709 Net income attributable to noncontrolling interests in the Operating Partnership — — ( 522 ) — — ( 522 ) Dividends ($ 0.2725 per share) (a) — — ( 42,595 ) — — ( 42,595 ) Issuance of common shares under incentive stock plans 2,010 — — — — — Stock-based incentive compensation — 2,598 — — — 2,598 Repurchase of common shares to pay withholding taxes on vested incentive stock awards ( 298 ) ( 7 ) — — — ( 7 ) Repurchase of common shares made under repurchase program ( 1,226,384 ) — ( 30,103 ) — — ( 30,103 ) Adjustment of noncontrolling interests in the Operating Partnership — — ( 1,350 ) — — ( 1,350 ) Conversion of units into common shares 334,594 8,058 — — — 8,058 Pension and postretirement benefit plans — — — ( 2 ) — ( 2 ) Cash flow hedges — — — ( 3,748 ) — ( 3,748 ) Allocation of other comprehensive loss to noncontrolling interests in the Operating Partnership — — — 450 — 450 Balance, September 30, 2025 153,871,154 $ 1,737,067 $ 514,226 $ 27,412 — $ 2,278,705 (a) For information regarding distributions to noncontrolling interests in the Operating Partnership, see the Rayonier Inc. Consolidated Statements of Cash Flows and Note 5 — Noncontrolling Interests . (b) Reflects the issuance of common shares related to the Company’s special dividend of $ 1.80 per common share, paid on January 30, 2025, to shareholders of record as of December 12, 2024. This dividend comprised a combination of cash and the Company’s common shares. 4 Table of Contents RAYONIER INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (CONTINUED) (Unaudited) (Dollars in thousands, except share data) Common Shares Retained Earnings Accumulated Other Comprehensive Income Noncontrolling Interests in Consolidated Affiliates Shareholders’ Equity Shares Amount Balance, January 1, 2024 148,299,117 $ 1,497,641 $ 338,244 $ 24,651 $ 17,066 $ 1,877,602 Loss from continuing operations — — ( 4,500 ) — ( 10 ) ( 4,510 ) Income from discontinued operations — — 5,877 — 939 6,816 Net income attributable to noncontrolling interests in the Operating Partnership — — ( 20 ) — — ( 20 ) Dividends ($ 0.285 per share) (a) — — ( 42,777 ) — — ( 42,777 ) Issuance of common shares under incentive stock plans 752 — — — — — Stock-based incentive compensation — 3,218 — — — 3,218 Repurchase of common shares to pay withholding taxes on vested incentive stock awards ( 924 ) ( 31 ) — — — ( 31 ) Adjustment of noncontrolling interests in the Operating Partnership — — ( 291 ) — — ( 291 ) Conversion of units into common shares 350,376 11,511 — — — 11,511 Pension and postretirement benefit plans — — — 9,562 — 9,562 Foreign currency translation adjustment — — — ( 16,178 ) ( 773 ) ( 16,951 ) Cash flow hedges — — — 4,070 ( 1,104 ) 2,966 Allocation of other comprehensive loss to noncontrolling interests in the Operating Partnership — — — 265 — 265 Distributions to noncontrolling interests in consolidated affiliates — — — — ( 1,713 ) ( 1,713 ) Balance, March 31, 2024 148,649,321 $ 1,512,339 $ 296,533 $ 22,370 $ 14,405 $ 1,845,647 Loss from continuing operations — — ( 3,883 ) — ( 13 ) ( 3,896 ) Income from discontinued operations — — 5,812 — 1,119 6,931 Net income attributable to noncontrolling interests in the Operating Partnership — — ( 26 ) — — ( 26 ) Dividends ($ 0.285 per share) (a) — — ( 42,517 ) — — ( 42,517 ) Issuance of common shares under incentive stock plans 396,849 — — — — — Stock-based incentive compensation — 4,904 — — — 4,904 Repurchase of common shares to pay withholding taxes on vested incentive stock awards ( 130,460 ) ( 4,132 ) — — — ( 4,132 ) Adjustment of noncontrolling interests in the Operating Partnership — — 8,093 — — 8,093 Conversion of units into common shares 63,708 1,915 — — — 1,915 Foreign currency translation adjustment — — — 5,728 286 6,014 Cash flow hedges — — — ( 330 ) 528 198 Allocation of other comprehensive income to noncontrolling interests in the Operating Partnership — — — ( 19 ) — ( 19 ) Distributions to noncontrolling interests in consolidated affiliates — — — — ( 2,047 ) ( 2,047 ) Balance, June 30, 2024 148,979,418 $ 1,515,026 $ 264,012 $ 27,749 $ 14,278 $ 1,821,065 5 Table of Contents RAYONIER INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (CONTINUED) (Unaudited) (Dollars in thousands, except share data) Common Shares Retained Earnings Accumulated Other Comprehensive Income Noncontrolling Interests in Consolidated Affiliates Shareholders’ Equity Shares Amount Balance, June 30, 2024 148,979,418 $ 1,515,026 $ 264,012 $ 27,749 $ 14,278 $ 1,821,065 Income (loss) from continuing operations — — 22,250 — ( 10 ) 22,240 Income from discontinued operations — — 6,899 — 1,303 8,202 Net income attributable to noncontrolling interests in the Operating Partnership — — ( 391 ) — — ( 391 ) Dividends ($ 0.285 per share) (a) — — ( 42,433 ) — — ( 42,433 ) Issuance of common shares under incentive stock plans 848 — — — — — Stock-based incentive compensation — 3,906 — — — 3,906 Repurchase of common shares to pay withholding taxes on vested incentive stock awards ( 222 ) ( 5 ) — — — ( 5 ) Adjustment of noncontrolling interests in the Operating Partnership — — ( 6,476 ) — — ( 6,476 ) Conversion of units into common shares 20,292 643 — — — 643 Pension and postretirement benefit plans — — — 139 — 139 Foreign currency translation adjustment — — — 12,804 534 13,338 Cash flow hedges — — — ( 17,195 ) 1,368 ( 15,827 ) Allocation of other comprehensive loss to noncontrolling interests in the Operating Partnership — — — 77 — 77 Distributions to noncontrolling interests in consolidated affiliates — — — — ( 1,713 ) ( 1,713 ) Balance, September 30, 2024 149,000,336 $ 1,519,570 $ 243,861 $ 23,574 $ 15,760 $ 1,802,765 (a) For information regarding distributions to noncontrolling interests in the Operating Partnership, see the Rayonier Inc. Consolidated Statements of Cash Flows and Note 5 — Noncontrolling Interests . See Notes to Consolidated Financial Statements. 6 Table of Contents RAYONIER INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Dollars in thousands) Nine Months Ended September 30, 2025 2024 OPERATING ACTIVITIES Net income $ 454,231 $ 35,783 Adjustments to reconcile net income to cash provided by operating activities: Depreciation, depletion and amortization from continuing operations 81,731 86,130 Depreciation, depletion and amortization from discontinued operations 9,081 20,533 Non-cash cost of land and improved development from continuing operations 40,046 16,176 Non-cash cost of land and improved development from discontinued operations — 3,041 Gain on sale of discontinued operations ( 404,463 ) — Stock-based incentive compensation expense 8,507 12,027 Deferred income taxes ( 2,571 ) ( 4,154 ) Asset impairment charge 7,048 — Pension settlement charge — 5,979 Other 15,692 51 Changes in operating assets and liabilities: Receivables 1,514 ( 12,469 ) Inventories 235 721 Accounts payable ( 1,130 ) 5,000 All other operating activities ( 5,049 ) 4,960 CASH PROVIDED BY OPERATING ACTIVITIES 204,872 173,778 INVESTING ACTIVITIES Capital expenditures from continuing operations ( 35,024 ) ( 40,262 ) Capital expenditures from discontinued operations ( 7,098 ) ( 12,904 ) Real estate development investments ( 11,888 ) ( 19,073 ) Net proceeds on sale of discontinued operations (a) 688,300 — Net proceeds on sale of property, plant and equipment 4,146 13 Purchase of timberlands — ( 3,637 ) Other 4,444 1,018 CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES 642,880 ( 74,845 ) FINANCING ACTIVITIES Dividends paid on common shares (b) ( 195,378 ) ( 158,094 ) Distributions to noncontrolling interests in the Operating Partnership (c) ( 2,505 ) ( 2,192 ) Repurchase of common shares to pay withholding taxes on vested incentive stock awards ( 2,685 ) ( 4,167 ) Repurchase of common shares made under repurchase program ( 67,654 ) — Distributions to noncontrolling interests in consolidated affiliates ( 3,082 ) ( 5,473 ) Debt issuance costs ( 779 ) — Repayment of debt — ( 60,000 ) CASH USED FOR FINANCING ACTIVITIES ( 272,083 ) ( 229,926 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH 1,390 ( 135 ) CASH, CASH EQUIVALENTS AND RESTRICTED CASH Change in cash, cash equivalents and restricted cash 577,059 ( 131,128 ) Balance from continuing operations, beginning of year 323,107 180,362 Balance from discontinued operations, beginning of year 20,093 28,012 Total Balance, beginning of year $ 343,200 $ 208,374 Balance from continuing operations, end of period 920,259 54,967 Balance from discontinued operations, end of period — 22,279 Total Balance, end of period $ 920,259 $ 77,246 (a) The nine months ended September 30, 2025 includes proceeds from the disposition of our New Zealand joint venture, net of closing adjustments, transaction costs, and $ 11.1 million of deconsolidated cash. (b) The nine months ended September 30, 2025 includes an additional dividend of $ 1.80 per common share, consisting of a combination of cash and the Company’s common shares. The cash portion of $ 67.8 million was paid on January 30, 2025 to shareholders of record on December 12, 2024. The nine months ended September 30, 2024 includes an additional cash dividend of $ 0.20 per common share, totaling $ 29.8 million. The additional dividend was paid on January 12, 2024, to shareholders of record on December 29, 2023. (c) The nine months ended September 30, 2025 includes an additional distribution of $ 1.80 per Redeemable Operating Partnership Unit, consisting of a combination of cash and the Company’s Redeemable Operating Partnership Units. The cash portion of $ 0.9 million was paid on January 30, 2025, to holders of record on December 12, 2024. The nine months ended September 30, 2024 includes an additional cash distribution of $ 0.20 per Redeemable Operating Partnership Unit, totaling $ 0.5 million. The additional distribution was paid on January 12, 2024, to holders of record on December 29, 2023. 7 Table of Contents RAYONIER INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) (Unaudited) (Dollars in thousands) Nine Months Ended September 30, 2025 2024 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Cash paid during the period: Interest (a) $ 13,933 $ 24,900 Income taxes (b) 4,038 5,493 Non-cash investing and financing activity: Capital assets purchased on account 5,372 5,091 Issuance of common shares from special dividend 200,454 — Issuance of Redeemable Operating Partnership Units from special distribution 2,681 — (a) Interest paid includes patronage paymen ts receive d of $ 7.9 million a n d $ 8.3 million for the nine months ended September 30, 2025 and September 30, 2024, respectively. For additional information on patronage payments, see Note 7 — Debt in the 2024 Form 10-K. Interest paid for the nine months ended September 30, 2025 and September 30, 2024 includes $ 1.5 million and $ 2.7 million, respectively, from discontinued operations. (b) Income taxes paid for the nine months ended September 30, 2025 and September 30, 2024 includes $ 3.8 million and $ 5.2 million, respectively, from discontinued operations. See Notes to Consolidated Financial Statements. 8 Table of Contents RAYONIER, L.P. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) (Unaudited) (Dollars in thousands, except per unit amounts) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 SALES ( NOTE 4 ) $ 177,531 $ 124,103 $ 366,990 $ 337,446 Costs and Expenses Cost of sales ( 119,126 ) ( 86,332 ) ( 258,984 ) ( 246,755 ) Selling and general expenses ( 17,008 ) ( 18,276 ) ( 50,621 ) ( 57,865 ) Other operating income (expense), net ( Note 15 ) 313 ( 663 ) ( 1,071 ) ( 815 ) ( 135,821 ) ( 105,271 ) ( 310,676 ) ( 305,435 ) OPERATING INCOME 41,710 18,832 56,314 32,011 Interest expense, net ( 6,768 ) ( 9,209 ) ( 19,704 ) ( 27,186 ) Interest income 9,806 1,098 15,009 4,752 Other miscellaneous (expense) income, net ( 1,039 ) 11,529 ( 3,443 ) 3,276 INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 43,709 22,250 48,176 12,853 Income tax (expense) benefit ( Note 16 ) — ( 10 ) ( 291 ) 981 INCOME FROM CONTINUING OPERATIONS 43,709 22,240 47,885 13,834 DISCONTINUED OPERATIONS, NET ( NOTE 2 ) Income from operations of discontinued operations, net of tax — 8,202 1,883 21,949 Gain on sale of discontinued operations — — 404,463 — INCOME FROM DISCONTINUED OPERATIONS — 8,202 406,346 21,949 NET INCOME 43,709 30,442 454,231 35,783 Less: Net (income) loss attributable to noncontrolling interests in consolidated affiliates — ( 1,293 ) 192 ( 3,328 ) NET INCOME ATTRIBUTABLE TO RAYONIER, L.P. UNITHOLDERS 43,709 29,149 454,423 32,455 NET INCOME ATTRIBUTABLE TO UNITHOLDERS ATTRIBUTABLE TO: Limited Partners 43,272 28,858 449,879 32,131 General Partners 437 291 4,544 324 Net income attributable to unitholders 43,709 29,149 454,423 32,455 OTHER COMPREHENSIVE INCOME (LOSS), RELATING TO CONTINUING OPERATIONS Cash flow hedges, net of income tax effect of $ 0 , $ 0 , $ 0 and $ 0 ( 3,748 ) ( 21,771 ) ( 18,475 ) ( 16,106 ) Pension and postretirement benefit plans, net of income tax effect of $ 0 , $ 0 , $ 0 and $ 1,222 ( 2 ) 139 ( 5 ) 9,701 OTHER COMPREHENSIVE INCOME, RELATING TO DISCONTINUED OPERATIONS Foreign currency translation adjustment, net of income tax effect of $ 0 , $ 0 , $ 0 and $ 0 — 13,338 20,475 2,402 Cash flow hedges, net of income tax effect of $ 0 , $ 2,312 , $ 3,531 and $ 1,339 — 5,944 9,080 3,442 Deconsolidation of discontinued operations, net of income tax effect of $ 0 , $ 0 , $ 0 and $ 0 — — 29,068 — Total other comprehensive (loss) income ( 3,750 ) ( 2,350 ) 40,143 ( 561 ) COMPREHENSIVE INCOME 39,959 28,092 494,374 35,222 Less: Comprehensive income attributable to noncontrolling interests in consolidated affiliates — ( 3,195 ) ( 2,605 ) ( 4,168 ) COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER, L.P. UNITHOLDERS $ 39,959 $ 24,897 $ 491,769 $ 31,054 EARNINGS PER UNIT ( NOTE 6 ) BASIC EARNINGS PER UNIT ATTRIBUTABLE TO RAYONIER L.P. Continuing Operations $ 0.28 $ 0.15 $ 0.31 $ 0.09 Discontinued Operations — $ 0.05 $ 2.60 $ 0.12 Net Income $ 0.28 $ 0.19 $ 2.90 $ 0.22 DILUTED EARNINGS PER UNIT ATTRIBUTABLE TO RAYONIER L.P. Continuing Operations $ 0.28 $ 0.15 $ 0.30 $ 0.09 Discontinued Operations — $ 0.05 $ 2.58 $ 0.12 Net Income $ 0.28 $ 0.19 $ 2.88 $ 0.21 See Notes to Consolidated Financial Statements. 9 Table of Contents RAYONIER, L.P. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) (Dollars in thousands) September 30, 2025 December 31, 2024 ASSETS CURRENT ASSETS Cash and cash equivalents $ 919,582 $ 303,065 Restricted cash, current ( Note 18 ) — 19,366 Trade receivables, less allowance for doubtful accounts of $ 328 and $ 401 13,553 8,006 Other receivables 6,532 13,267 Inventory ( Note 14 ) 16,203 30,879 Prepaid expenses 9,639 9,566 Assets held for sale (excluding discontinued operations) ( Note 19 ) 3,386 5,371 Other current assets 4,026 53 Current assets of discontinued operations ( Note 2 ) — 47,320 Total current assets 972,921 436,893 TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION 2,313,047 2,384,345 HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS ( NOTE 13 ) 109,536 109,610 PROPERTY, PLANT AND EQUIPMENT Land 5,581 5,581 Buildings 24,493 24,493 Machinery and equipment 6,948 4,876 Construction in progress 1,312 779 Total property, plant and equipment, gross 38,334 35,729 Less — accumulated depreciation ( 20,384 ) ( 18,297 ) Total property, plant and equipment, net 17,950 17,432 RESTRICTED CASH, NON-CURRENT ( NOTE 18 ) 677 676 RIGHT-OF-USE ASSETS 18,228 18,588 OTHER ASSETS 59,530 78,276 NON-CURRENT ASSETS OF DISCONTINUED OPERATIONS ( NOTE 2 ) — 428,599 TOTAL ASSETS $ 3,491,889 $ 3,474,419 LIABILITIES, REDEEMABLE OPERATING PARTNERSHIP UNITS AND CAPITAL CURRENT LIABILITIES Accounts payable $ 13,566 $ 16,914 Current maturities of long-term debt, net ( Note 7 ) 199,969 — Accrued taxes 9,350 1,840 Accrued payroll and benefits 12,166 15,317 Accrued interest 7,702 5,228 Distribution payable — 271,815 Deferred revenue 25,509 20,902 Other current liabilities 14,297 9,359 Current liabilities of discontinued operations ( Note 2 ) — 47,335 Total current liabilities 282,559 388,710 LONG-TERM DEBT, NET ( NOTE 7 ) 845,119 1,044,410 LONG-TERM LEASE LIABILITY 15,587 16,260 LONG-TERM DEFERRED REVENUE 11,219 10,697 OTHER NON-CURRENT LIABILITIES 12,458 11,125 NON-CURRENT LIABILITIES OF DISCONTINUED OPERATIONS ( NOTE 2 ) — 170,841 CONTINGENCIES ( NOTE 10 ) REDEEMABLE OPERATING PARTNERSHIP UNITS ( NOTE 5 ) 1,742,337 and 1,986,319 Units outstanding, respectively 46,242 51,843 CAPITAL General partners’ capital 22,492 17,772 Limited partners’ capital 2,226,733 1,759,405 Accumulated other comprehensive income (loss) ( Note 17 ) 29,480 ( 7,865 ) TOTAL CONTROLLING INTEREST CAPITAL 2,278,705 1,769,312 Noncontrolling interests in consolidated affiliates ( Note 5 ) — 11,221 TOTAL CAPITAL 2,278,705 1,780,533 TOTAL LIABILITIES, REDEEMABLE OPERATING PARTNERSHIP UNITS AND CAPITAL $ 3,491,889 $ 3,474,419 See Notes to Consolidated Financial Statements. 10 Table of Contents RAYONIER, L.P. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN CAPITAL (Unaudited) (Dollars in thousands, except share data) Units Accumulated Other Comprehensive Income (Loss) Noncontrolling Interests in Consolidated Affiliates Total Capital General Partners’ Capital Limited Partners’ Capital Balance, January 1, 2025 $ 17,772 $ 1,759,405 ($ 7,865 ) $ 11,221 $ 1,780,533 Loss from continuing operations ( 56 ) ( 5,536 ) — — ( 5,592 ) Income from discontinued operations 21 2,101 — 385 2,507 Distributions on units ($ 0.2725 per unit) ( 432 ) ( 42,822 ) — — ( 43,254 ) Issuance of units from special distribution (a) 2,031 201,104 — — 203,135 Stock-based incentive compensation 23 2,258 — — 2,281 Repurchase of units to pay withholding taxes on vested incentive stock awards ( 1 ) ( 37 ) — — ( 38 ) Repurchase of units made under repurchase program ( 26 ) ( 2,597 ) — — ( 2,623 ) Adjustment of Redeemable Operating Partnership Units ( 63 ) ( 6,292 ) — — ( 6,355 ) Conversion of units into common shares — 28 — — 28 Pension and postretirement benefit plans — — ( 2 ) — ( 2 ) Foreign currency translation adjustment — — 3,515 118 3,633 Cash flow hedges — — ( 7,441 ) 394 ( 7,047 ) Distributions to noncontrolling interests in consolidated affiliates — — — ( 1,911 ) ( 1,911 ) Balance, March 31, 2025 $ 19,269 $ 1,907,612 ($ 11,793 ) $ 10,207 $ 1,925,295 Income from continuing operations 98 9,671 — — 9,769 Income (loss) from discontinued operations 4,044 400,371 — ( 577 ) 403,838 Deconsolidation of discontinued operations — — 29,068 ( 10,744 ) 18,324 Distributions on units ($ 0.2725 per unit) ( 430 ) ( 42,525 ) — — ( 42,955 ) Stock-based incentive compensation 36 3,592 — — 3,628 Repurchase of units to pay withholding taxes on vested incentive stock awards ( 26 ) ( 2,614 ) — — ( 2,640 ) Repurchase of units made under repurchase program ( 349 ) ( 34,579 ) — — ( 34,928 ) Adjustment of Redeemable Operating Partnership Units 46 4,553 — — 4,599 Conversion of units into common shares 2 216 — — 218 Pension and postretirement benefit plans — — ( 2 ) — ( 2 ) Foreign currency translation adjustment — — 16,252 590 16,842 Cash flow hedges — — ( 295 ) 1,695 1,400 Distributions to noncontrolling interests in consolidated affiliates — — — ( 1,171 ) ( 1,171 ) Balance, June 30, 2025 $ 22,690 $ 2,246,297 $ 33,230 — $ 2,302,217 Income from continuing operations 437 43,272 — — 43,709 Distributions on units ($ 0.2725 per unit) ( 431 ) ( 42,639 ) — — ( 43,070 ) Stock-based incentive compensation 26 2,572 — — 2,598 Repurchase of units to pay withholding taxes on vested incentive stock awards — ( 7 ) — — ( 7 ) Repurchase of units made under repurchase program ( 301 ) ( 29,802 ) — — ( 30,103 ) Adjustment of Redeemable Operating Partnership Units ( 9 ) ( 938 ) — — ( 947 ) Conversion of units into common shares 80 7,978 — — 8,058 Pension and postretirement benefit plans — — ( 2 ) — ( 2 ) Cash flow hedges — — ( 3,748 ) — ( 3,748 ) Balance, September 30, 2025 $ 22,492 $ 2,226,733 $ 29,480 — $ 2,278,705 (a) Reflects the issuance of units related to the Company’s special distribution of $ 1.80 per unit, paid on January 30, 2025, to holders of record as of December 12, 2024. This distribution comprised a combination of cash and units. 11 Table of Contents RAYONIER, L.P. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN CAPITAL (CONTINUED) (Unaudited) (Dollars in thousands, except share data) Units Accumulated Other Comprehensive Income Noncontrolling Interests in Consolidated Affiliates Total Capital General Partners’ Capital Limited Partners’ Capital Balance, January 1, 2024 $ 18,325 $ 1,814,193 $ 28,018 $ 17,066 $ 1,877,602 Loss from continuing operations ( 45 ) ( 4,455 ) — ( 10 ) ( 4,510 ) Income from discontinued operations 59 5,818 — 939 6,816 Distributions on units ($ 0.285 per unit) ( 434 ) ( 42,940 ) — — ( 43,374 ) Stock-based incentive compensation 32 3,186 — — 3,218 Repurchase of units to pay withholding taxes on vested incentive stock awards ( 1 ) ( 30 ) — — ( 31 ) Adjustment of Redeemable Operating Partnership Units 6 545 — — 551 Conversion of units into common shares 115 11,396 — — 11,511 Pension and postretirement benefit plans — — 9,562 — 9,562 Foreign currency translation adjustment — — ( 16,178 ) ( 773 ) ( 16,951 ) Cash flow hedges — — 4,070 ( 1,104 ) 2,966 Distributions to noncontrolling interests in consolidated affiliates — — — ( 1,713 ) ( 1,713 ) Balance, March 31, 2024 $ 18,057 $ 1,787,713 $ 25,472 $ 14,405 $ 1,845,647 Loss from continuing operations ( 39 ) ( 3,844 ) — ( 13 ) ( 3,896 ) Income from discontinued operations 58 5,754 — 1,119 6,931 Distributions on units ($ 0.285 per unit) ( 430 ) ( 42,665 ) — — ( 43,095 ) Stock-based incentive compensation 49 4,855 — — 4,904 Repurchase of units to pay withholding taxes on vested incentive stock awards ( 41 ) ( 4,091 ) — — ( 4,132 ) Adjustment of Redeemable Operating Partnership Units 86 8,540 — — 8,626 Conversion of units into common shares 19 1,896 — — 1,915 Foreign currency translation adjustment — — 5,728 286 6,014 Cash flow hedges — — ( 330 ) 528 198 Distribution to noncontrolling interests in consolidated affiliates — — — ( 2,047 ) ( 2,047 ) Balance, June 30, 2024 $ 17,759 $ 1,758,158 $ 30,870 $ 14,278 $ 1,821,065 Income (loss) from continuing operations 222 22,028 — ( 10 ) 22,240 Income from discontinued operations 69 6,830 — 1,303 8,202 Distributions on units ($ 0.285 per unit) ( 430 ) ( 42,531 ) — — ( 42,961 ) Stock-based incentive compensation 39 3,867 — — 3,906 Repurchase of units to pay withholding taxes on vested incentive stock awards — ( 5 ) — — ( 5 ) Adjustment of Redeemable Operating Partnership Units ( 62 ) ( 6,200 ) — — ( 6,262 ) Conversion of units into common shares 6 637 — — 643 Pension and postretirement benefit plans — — 139 — 139 Foreign currency translation adjustment — — 12,804 534 13,338 Cash flow hedges — — ( 17,195 ) 1,368 ( 15,827 ) Distributions to noncontrolling interests in consolidated affiliates — — — ( 1,713 ) ( 1,713 ) Balance, September 30, 2024 $ 17,603 $ 1,742,784 $ 26,618 $ 15,760 $ 1,802,765 See Notes to Consolidated Financial Statements. 12 Table of Contents RAYONIER, L.P. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Dollars in thousands) Nine Months Ended September 30, 2025 2024 OPERATING ACTIVITIES Net income $ 454,231 $ 35,783 Adjustments to reconcile net income to cash provided by operating activities: Depreciation, depletion and amortization from continuing operations 81,731 86,130 Depreciation, depletion and amortization from discontinued operations 9,081 20,533 Non-cash cost of land and improved development from continuing operations 40,046 16,176 Non-cash cost of land and improved development from discontinued operations — 3,041 Gain on sale of discontinued operations ( 404,463 ) — Stock-based incentive compensation expense 8,507 12,027 Deferred income taxes ( 2,571 ) ( 4,154 ) Asset impairment charge 7,048 — Pension settlement charge — 5,979 Other 15,692 51 Changes in operating assets and liabilities: Receivables 1,514 ( 12,469 ) Inventories 235 721 Accounts payable ( 1,130 ) 5,000 All other operating activities ( 5,049 ) 4,960 CASH PROVIDED BY OPERATING ACTIVITIES 204,872 173,778 INVESTING ACTIVITIES Capital expenditures from continuing operations ( 35,024 ) ( 40,262 ) Capital expenditures from discontinued operations ( 7,098 ) ( 12,904 ) Real estate development investments ( 11,888 ) ( 19,073 ) Net proceeds on sale of discontinued operations (a) 688,300 — Net proceeds on sale of property, plant and equipment 4,146 13 Purchase of timberlands — ( 3,637 ) Other 4,444 1,018 CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES 642,880 ( 74,845 ) FINANCING ACTIVITIES Distributions on units (b) ( 197,883 ) ( 160,286 ) Repurchase of units to pay withholding taxes on vested incentive stock awards ( 2,685 ) ( 4,167 ) Repurchase of units made under repurchase program ( 67,654 ) — Distributions to noncontrolling interests in consolidated affiliates ( 3,082 ) ( 5,473 ) Debt issuance costs ( 779 ) — Repayment of debt — ( 60,000 ) CASH USED FOR FINANCING ACTIVITIES ( 272,083 ) ( 229,926 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH 1,390 ( 135 ) CASH, CASH EQUIVALENTS AND RESTRICTED CASH Change in cash, cash equivalents and restricted cash 577,059 ( 131,128 ) Balance from continuing operations, beginning of year 323,107 180,362 Balance from discontinued operations, beginning of year 20,093 28,012 Total Balance, beginning of year $ 343,200 $ 208,374 Balance from continuing operations, end of period 920,259 54,967 Balance from discontinued operations, end of period — 22,279 Total Balance, end of period $ 920,259 $ 77,246 (a) The nine months ended September 30, 2025 includes proceeds from the disposition of our New Zealand joint venture, net of closing adjustments, transaction costs, and $ 11.1 million of deconsolidated cash. (b) The nine months ended September 30, 2025 includes an additional distribution of $ 1.80 per unit, consisting of a combination of cash and units. The cash portion of $ 68.7 million was paid on January 30, 2025, to holders of record on December 12, 2024. The nine months ended September 30, 2024 includes an additional cash distribution of $ 0.20 per unit, totaling $ 30.2 million. The additional distribution was paid on January 12, 2024, to holders of record on December 29, 2023. 13 Table of Contents RAYONIER, L.P. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) (Unaudited) (Dollars in thousands) Nine Months Ended September 30, 2025 2024 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Cash paid during the period: Interest (a) $ 13,933 $ 24,900 Income taxes (b) 4,038 5,493 Non-cash investing and financing activity: Capital assets purchased on account 5,372 5,091 Issuance of units from special distribution 203,135 — (a) Interest paid includes patronage payments received of $ 7.9 million and $ 8.3 million for the nine months ended September 30, 2025 and September 30, 2024, respectively. For additional information on patronage payments, see Note 7 — Debt in the 2024 Form 10-K. Interest paid for the nine months ended September 30, 2025 and September 30, 2024 includes $ 1.5 million and $ 2.7 million, respectively, from discontinued operations. (b) Income taxes paid for the nine months ended September 30, 2025 and September 30, 2024 includes $ 3.8 million and $ 5.2 million, respectively, from discontinued operations. See Notes to Consolidated Financial Statements. 14 Table of Contents RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Dollar amounts in thousands unless otherwise stated) 1. BASIS OF PRESENTATION The unaudited consolidated financial statements and notes thereto of Rayonier Inc. and its subsidiaries and Rayonier, L.P. have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”). The Rayonier Inc. and Rayonier, L.P. year-end balance sheet information was derived from audited financial statements not included herein. In the opinion of management, these financial statements and notes reflect any adjustments (all of which are normal recurring adjustments) necessary for a fair presentation of the results of operations, financial position and cash flows for the periods presented. These statements and notes should be read in conjunction with the financial statements and supplementary data included in our Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC (the “2024 Form 10-K”). As of September 30, 2025, the Company owned a 98.9 % interest in the Operating Partnership, with the remaining 1.1 % interest owned by limited partners of the Operating Partnership. As the sole general partner of the Operating Partnership, Rayonier Inc. has exclusive control of the day-to-day management of the Operating Partnership. SUMMARY OF UPDATES TO SIGNIFICANT ACCOUNTING POLICIES For a full description of our other significant accounting policies, see Note 1 — Summary of Significant Accounting Policies in our 2024 Form 10-K. RECLASSIFICATIONS Certain 2024 amounts have been reclassified to align with the current presentation, including reclassifications for discontinued operations and current reportable segments. In March 2025, we entered into a purchase and sale agreement to divest our entire 77 % interest in our New Zealand operations. On June 30, 2025, we completed the sale. Accordingly, New Zealand’s financial results are reported as discontinued operations in our Consolidated Statements of Income and Comprehensive Income (Loss) for all periods presented. Our New Zealand assets and liabilities are presented separately as assets and liabilities of discontinued operations in our Consolidated Balance Sheets as of December 31, 2024. The Consolidated Statements of Cash Flows for both 2025 and 2024 have not been restated to exclude the New Zealand operation’s cash flows. Effective with the third quarter of 2025, we realigned our reportable segments to reflect changes in our internal management reporting structure. As a result, prior period segment information has been reclassified to conform to our current segment presentation. Unless otherwise specified, all amounts and disclosures within these Notes to Condensed Consolidated Financial Statements pertain to the Company’s continuing operations. See Note 2 — Discontinued Operations for additional information regarding the sale of the New Zealand joint venture and Note 3 — Segment and Geographical Information for further discussion of our reportable segments. ACCOUNTING STANDARDS ISSUED BUT NOT YET ADOPTED In November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This ASU requires additional disclosures about certain costs and expenses within the notes to the financial statements. Subsequently in January 2025, the FASB issued ASU No. 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date, which clarifies the adoption timeline . ASU 2024-03 is effective for annual periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with early adoption permitted. The guidance allows for either prospective or retrospective application. We are currently evaluating the impact of adopting this new guidance on our consolidated financial statements and disclosures. 15 Table of Contents RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Dollar amounts in thousands unless otherwise stated) In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU enhances annual income tax disclosures, primarily affecting the rate reconciliation and income taxes paid reconciliation. The pronouncement is effective for annual periods beginning after December 15, 2024, and should be applied on a prospective basis, although early adoption and retrospective application are permitted. We will adopt the standard beginning with our annual reporting for the year ending December 31, 2025 and do not anticipate this disclosure-only ASU will impact our consolidated financial statements. Other recent accounting pronouncements, either adopted or pending adoption and not discussed above, are not applicable or are not expected to have a material impact on our consolidated financial condition, results of operations, or cash flows. SUBSEQUENT EVENTS On October 14, 2025, the Company announced that it entered into a definitive agreement with PotlatchDeltic Corporation (“PotlatchDeltic”) to combine in a merger of equals. The transaction is expected to close in late first quarter or early second quarter of 2026. The transaction is subject to the satisfaction of customary closing conditions, including receipt of required regulatory approvals and the approval of both Rayonier’s shareholders and PotlatchDeltic’s shareholders. On October 14, 2025, the Company announced that its board of directors declared a one-time, special dividend of $ 1.40 per common share, consisting of a combination of cash and the Company’s common shares. In addition, the Company's board of directors declared a one-time, special distribution of $ 1.40 per Redeemable Operating Partnership Unit, consisting of a combination of cash and the Company's Redeemable Operating Partnership Units. The dividend and distribution are payable on December 12, 2025 to holders of record on October 24, 2025. 16 Table of Contents RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Dollar amounts in thousands unless otherwise stated) 2. DISCONTINUED OPERATIONS On March 9, 2025, Rayonier entered into a purchase and sale agreement with Taurus Forest Holdings Limited, pursuant to which Rayonier agreed to sell its entire 77 % interest in its New Zealand operations. Accordingly, in the first quarter of 2025, the financial results of the New Zealand Timber segment and the New Zealand portion of the Real Estate, former Trading and Corporate segments were classified as discontinued operations in our Consolidated Statements of Income and Comprehensive Income (Loss) for all periods presented. On June 30, 2025, we completed the sale of our New Zealand operations for a purchase price of $ 710 million. Net proceeds to Rayonier, after adjusting for estimated net debt, working capital, transaction costs, and other closing adjustments, were $ 698.6 million. We received a final purchase price adjustment of $ 0.7 million during the third quarter, which was recognized as a receivable on our June 30, 2025 Consolidated Balance Sheet. In connection with the sale, we recognized a gain on disposal of discontinued operations of $ 404.5 million. The following table summarizes the results of our New Zealand operations for the three and nine months ended September 30, 2025 and 2024, as presented in “Income from discontinued operations” in the Consolidated Statements of Income and Comprehensive Income (Loss): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Sales — $ 70,891 $ 109,332 $ 199,254 Costs and Expenses Cost of sales — ( 60,870 ) ( 102,050 ) ( 172,298 ) Other operating expense, net (a) — ( 1,247 ) ( 3,400 ) ( 2,710 ) — ( 62,117 ) ( 105,450 ) ( 175,008 ) Operating income from discontinued operations — 8,774 3,882 24,246 Interest expense, net — ( 812 ) ( 1,508 ) ( 2,390 ) Interest income — 265 202 777 Income from operations of discontinued operations before income taxes — 8,227 2,576 22,633 Income tax expense — ( 25 ) ( 693 ) ( 684 ) Income from operations of discontinued operations, net of tax — 8,202 1,883 21,949 Gain on sale of discontinued operations (b) — — 404,463 — Income from discontinued operations — 8,202 406,346 21,949 Less: Net income from discontinued operations attributable to noncontrolling interests in the Operating Partnership — ( 93 ) ( 5,375 ) ( 256 ) Less: Net (income) loss from discontinued operations attributable to noncontrolling interests in consolidated affiliates — ( 1,303 ) 192 ( 3,362 ) Net income from discontinued operations attributable to Rayonier Inc. — $ 6,806 $ 401,163 $ 18,331 (a) The nine months ended September 30, 2025 includes transaction costs of $ 0.2 million. The three and nine months ended September 30, 2024 include transaction costs of $ 0.2 million and $ 0.7 million, respectively. (b) The gain on sale of discontinued operations is not subject to income tax, as it relates to a partnership interest. 17 Table of Contents RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Dollar amounts in thousands unless otherwise stated) The major classes of the New Zealand operation’s assets and liabilities as reported on the December 31, 2024 Balance Sheet are as follows: December 31, 2024 ASSETS CURRENT ASSETS Cash and cash equivalents $ 20,093 Trade receivables, less allowance for doubtful accounts of $ 0 18,935 Inventory 1,462 Prepaid expenses 6,206 Other current assets 624 Total current assets 47,320 TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION 339,724 PROPERTY, PLANT AND EQUIPMENT Buildings 1,707 Machinery and equipment 171 Total property, plant and equipment, gross 1,878 Less — accumulated depreciation ( 935 ) Total property, plant and equipment, net 943 RIGHT-OF-USE ASSETS 64,082 OTHER ASSETS 23,850 TOTAL ASSETS $ 475,919 LIABILITIES CURRENT LIABILITIES Accounts payable $ 9,145 Current maturities of long-term debt, net 19,442 Accrued taxes 2,399 Accrued payroll and benefits 793 Other current liabilities 15,556 Total current liabilities 47,335 LONG-TERM DEBT, NET 45,360 LONG-TERM LEASE LIABILITY 60,038 OTHER NON-CURRENT LIABILITIES 65,443 TOTAL LIABILITIES $ 218,176 The following table summarizes the depreciation, depletion and amortization, capital expenditures and non-cash cost of land sold and improved development of the Company’s discontinued operations for the three and nine months ended September 30, 2025 and 2024: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Depreciation, depletion and amortization — $ 5,632 $ 9,081 $ 20,533 Capital expenditures — 4,820 7,098 12,904 Non-cash cost of land and improved development — — — 3,041 18 Table of Contents RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Dollar amounts in thousands unless otherwise stated) 3. SEGMENT AND GEOGRAPHICAL INFORMATION As of September 30, 2025, Rayonier operated in three reportable segments: Southern Timber, Pacific Northwest Timber, and Real Estate. Prior to the first quarter of 2025, we operated in five reportable business segments, which included New Zealand Timber and Trading. On March 9, 2025, we entered into a purchase and sale agreement to sell our entire 77 % interest in the New Zealand joint venture and as a result, the New Zealand operations are shown as discontinued operations for all periods presented. On June 30, 2025, we completed the sale. See Note 2 — Discontinued Operations for additional information. Effective with the third quarter of 2025, the Company realigned its segments considering the economic characteristics of each business unit and the way the chief operating decision maker (“CODM”), the Chief Executive Officer, now internally evaluates business performance and makes capital allocation decisions. As part of the realignment, the previously reported Trading segment’s log trading activities conducted in the U.S. South and Pacific Northwest are now reported in the respective Southern Timber or Pacific Northwest Timber segments based on geographical location. All prior period amounts have been reclassified to reflect the newly aligned segment structure. Sales between operating segments are made based on estimated fair market value, and intercompany sales, purchases and profits (losses) are eliminated in consolidation. The CODM evaluates segment operating performance based on Adjusted Earnings before Interest, Taxes, Depreciation, Depletion and Amortization (“Adjusted EBITDA”) to make decisions about allocating resources and assessing performance. Total assets by segment are not used by the CODM to assess the performance of or allocate resources to the segments, therefore total assets by segment are not disclosed. Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, depletion, amortization, the non-cash cost of land and improved development, non-operating expense and income, income from operations of discontinued operations, gain on sale of discontinued operations, asset impairment charges, restructuring charges, costs related to disposition initiatives and Large Dispositions. We believe that Operating income (loss), as defined by U.S. GAAP, is the most appropriate earnings measurement with which to reconcile Adjusted EBITDA. Adjusted EBITDA should not be considered as an alternative to Operating income (loss) as determined in accordance with U.S. GAAP. Operating income (loss) as presented in the Consolidated Statements of Income and Comprehensive Income (Loss) is equal to segment income. 19 Table of Contents RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Dollar amounts in thousands unless otherwise stated) The following tables summarize the segment information for the three and nine months ended September 30, 2025 and 2024: Three Months Ended Southern Timber Pacific Northwest Timber Real Estate Total September 30, 2025 Sales $ 66,834 $ 19,941 $ 90,756 $ 177,531 Costs and Expenses Cut and haul costs ( 13,779 ) ( 8,400 ) — ( 22,179 ) Depreciation, depletion and amortization ( 20,139 ) ( 4,637 ) ( 9,605 ) ( 34,381 ) Non-cash cost of land and improved development — — ( 30,745 ) ( 30,745 ) Other costs and expenses (a) ( 10,374 ) ( 5,154 ) ( 23,999 ) ( 39,527 ) Reportable segment operating income $ 22,542 $ 1,750 $ 26,407 $ 50,699 Add: Asset impairment charge (b) — — 7,048 7,048 Add: Depreciation, depletion and amortization 20,139 4,637 9,605 34,381 Add: Non-cash cost of land and improved development — — 30,745 30,745 Reportable segment adjusted EBITDA $ 42,681 $ 6,387 $ 73,805 $ 122,873 Reconciliation of reportable segment results to consolidated income before taxes All other EBITDA (c) ($ 8,569 ) Interest, net and miscellaneous income 3,038 Depreciation, depletion and amortization ( 34,801 ) Non-cash cost of land and improved development ( 30,745 ) Non-operating expense ( 1,039 ) Asset impairment charge (b) ( 7,048 ) Net Income (d) $ 43,709 (a) Other costs and expenses for each reportable segment primarily includes other direct and indirect cost of sales and selling and general expenses. (b) Asset impairment charge reflects an impairment charge recognized on certain real estate assets located in Washington, which were acquired in the 2020 merger with Pope Resources. The asset impairment charge is recorded within the Consolidated Statements of Income and Comprehensive Income (Loss) under the caption “Cost of sales.” (c) All other EBITDA includes general corporate expenses. (d) As no income tax expense was recognized for the three months ended September 30, 2025, net income is equal to income before taxes. 20 Table of Contents RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Dollar amounts in thousands unless otherwise stated) Three Months Ended Southern Timber Pacific Northwest Timber Real Estate Total September 30, 2024 Sales $ 62,416 $ 31,626 $ 30,061 $ 124,103 Costs and Expenses Cut and haul costs ( 12,496 ) ( 10,132 ) — ( 22,628 ) Port and freight costs ( 533 ) ( 2,618 ) — ( 3,151 ) Depreciation, depletion and amortization ( 18,118 ) ( 7,841 ) ( 1,451 ) ( 27,410 ) Non-cash cost of land and improved development — — ( 9,845 ) ( 9,845 ) Other costs and expenses (a) ( 11,479 ) ( 10,193 ) ( 10,133 ) ( 31,805 ) Reportable segment operating income $ 19,790 $ 842 $ 8,632 $ 29,264 Add: Depreciation, depletion and amortization 18,118 7,841 1,451 27,410 Add: Non-cash cost of land and improved development — — 9,845 9,845 Reportable segment adjusted EBITDA $ 37,908 $ 8,683 $ 19,928 $ 66,519 Reconciliation of reportable segment results to consolidated income before taxes All other EBITDA (b) ($ 9,324 ) Interest, net and miscellaneous expense ( 8,111 ) Depreciation, depletion and amortization ( 27,854 ) Non-cash cost of land and improved development ( 9,845 ) Non-operating income (c) 11,529 Costs related to disposition initiatives (d) ( 664 ) Income from Continuing Operations Before Income Taxes $ 22,250 Income tax expense ( 10 ) Income from Continuing Operations $ 22,240 Income from operations of discontinued operations, net of tax 8,202 Net Income $ 30,442 (a) Other costs and expenses for each reportable segment primarily includes other direct and indirect cost of sales and selling and general expenses. (b) All other EBITDA includes general corporate expenses. (c) Non-operating income includes $ 12.0 million of net recoveries associated with legal settlements, which is partially offset by $ 0.3 million of pension settlement charges. Net recoveries associated with legal settlements and pension settlement charges are recorded within the Consolidated Statements of Income (Loss) under the caption “Other miscellaneous (expense) income, net.” (d) Costs related to disposition initiatives include legal, advisory, and other due diligence costs incurred in connection with our asset disposition plan, which was announced in November 2023. Costs related to disposition initiatives are recorded within the Consolidated Statements of Income and Comprehensive Income (Loss) under the caption “Other operating income (expense), net.” 21 Table of Contents RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Dollar amounts in thousands unless otherwise stated) Nine Months Ended Southern Timber Pacific Northwest Timber Real Estate Total September 30, 2025 Sales $ 171,102 $ 65,533 $ 130,355 $ 366,990 Costs and Expenses Cut and haul costs ( 39,502 ) ( 27,580 ) — ( 67,082 ) Port and freight costs — ( 18 ) — ( 18 ) Depreciation, depletion and amortization ( 52,826 ) ( 15,595 ) ( 12,050 ) ( 80,471 ) Non-cash cost of land and improved development — — ( 40,046 ) ( 40,046 ) Other costs and expenses (a) ( 33,487 ) ( 18,802 ) ( 43,023 ) ( 95,312 ) Reportable segment operating income $ 45,287 $ 3,538 $ 35,236 $ 84,061 Add: Asset impairment charge (b) — — 7,048 7,048 Add: Depreciation, depletion and amortization 52,826 15,595 12,050 80,471 Add: Non-cash cost of land and improved development — — 40,046 40,046 Reportable segment adjusted EBITDA $ 98,113 $ 19,133 $ 94,380 $ 211,626 Reconciliation of reportable segment results to consolidated income before taxes All other EBITDA (c) ($ 25,377 ) Interest, net and miscellaneous expense ( 4,695 ) Depreciation, depletion and amortization ( 81,731 ) Non-cash cost of land and improved development ( 40,046 ) Non-operating expense (d) ( 3,443 ) Asset impairment charge (b) ( 7,048 ) Restructuring charges (e) ( 1,110 ) Income from Continuing Operations Before Income Taxes $ 48,176 Income tax expense ( 291 ) Income from Continuing Operations $ 47,885 Income from operations of discontinued operations, net of tax 1,883 Gain on sale of discontinued operations 404,463 Net Income $ 454,231 (a) Other costs and expenses for each reportable segment primarily includes other direct and indirect cost of sales and selling and general expenses. (b) Asset impairment charge reflects an impairment charge recognized on certain real estate assets located in Washington, which were acquired in the 2020 merger with Pope Resources. The asset impairment charge is recorded within the Consolidated Statements of Income and Comprehensive Income (Loss) under the caption “Cost of sales.” (c) All other EBITDA includes corporate and other expenses. (d) Non-operating expense includes $ 1.7 million of net costs associated with legal settlements. Net costs associated with legal settlements are recorded within the Consolidated Statements of Income (Loss) under the caption “Other miscellaneous (expense) income, net.” (e) Restructuring charges include severance costs related to workforce optimization initiatives. Restructuring charges are recorded within the Consolidated Statements of Income and Comprehensive Income (Loss) under the caption “Other operating income (expense), net.” 22 Table of Contents RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Dollar amounts in thousands unless otherwise stated) Nine Months Ended Southern Timber Pacific Northwest Timber Real Estate Total September 30, 2024 Sales $ 192,545 $ 83,806 $ 61,095 $ 337,446 Costs and Expenses Cut and haul costs ( 37,681 ) ( 31,076 ) — ( 68,757 ) Port and freight costs ( 2,883 ) ( 5,105 ) — ( 7,988 ) Depreciation, depletion and amortization ( 56,672 ) ( 24,306 ) ( 3,821 ) ( 84,799 ) Non-cash cost of land and improved development — — ( 16,176 ) ( 16,176 ) Other costs and expenses (a) ( 35,388 ) ( 28,309 ) ( 32,078 ) ( 95,775 ) Reportable segment operating income (loss) $ 59,921 ($ 4,990 ) $ 9,020 $ 63,951 Add: Depreciation, depletion and amortization 56,672 24,306 3,821 84,799 Add: Non-cash cost of land and improved development — — 16,176 16,176 Reportable segment adjusted EBITDA $ 116,593 $ 19,316 $ 29,017 $ 164,926 Reconciliation of reportable segment results to consolidated income before taxes All other EBITDA (b) ($ 29,760 ) Interest, net and miscellaneous expense ( 22,434 ) Depreciation, depletion and amortization ( 86,130 ) Non-cash cost of land and improved development ( 16,176 ) Non-operating income (c) 3,276 Costs related to disposition initiatives (d) ( 849 ) Income from Continuing Operations Before Income Taxes $ 12,853 Income tax benefit 981 Income from Continuing Operations $ 13,834 Income from operations of discontinued operations, net of tax 21,949 Net Income $ 35,783 (a) Other costs and expenses for each reportable segment primarily includes other direct and indirect cost of sales and selling and general expenses. (b) All other EBITDA includes general corporate expenses. (c) Non-operating income includes $ 9.6 million of net recoveries associated with legal settlements, which is partially offset by $ 6.0 million of pension settlement charges. Net recoveries associated with legal settlements and pension settlement charges are recorded within the Consolidated Statements of Income and Comprehensive Income (Loss) under the caption “Other miscellaneous (expense) income, net.” (d) Costs related to disposition initiatives include legal, advisory, and other due diligence costs incurred in connection with our asset disposition plan, which was announced in November 2023. Costs related to disposition initiatives are recorded within the Consolidated Statements of Income and Comprehensive Income (Loss) under the caption “Other operating income (expense), net.” 23 Table of Contents RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Dollar amounts in thousands unless otherwise stated) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Capital Expenditures (a) Southern Timber $ 10,861 $ 9,091 $ 28,580 $ 30,748 Pacific Northwest Timber 1,716 2,230 6,346 9,220 Real Estate 20 65 98 217 Corporate and other — 18 — 77 Total Capital Expenditures $ 12,597 $ 11,404 $ 35,024 $ 40,262 Timberland Acquisitions Southern Timber — 3,637 — 3,637 Total Timberland Acquisitions — $ 3,637 — $ 3,637 Real Estate Development Investments (b) $ 3,712 $ 8,949 $ 11,888 $ 19,073 Total Gross Capital Expenditures $ 16,309 $ 23,990 $ 46,912 $ 62,972 (a) Excludes timberland acquisitions and real estate development investments presented separately. (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. 24 Table of Contents RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Dollar amounts in thousands unless otherwise stated) 4. REVENUE PERFORMANCE OBLIGATIONS We recognize revenue when control of promised goods or services (“performance obligations”) is transferred to customers, in an amount that reflects the consideration expected in exchange for those goods or services (“transaction price”). Unsatisfied performance obligations as of September 30, 2025 are primarily due to advances on stumpage contracts, unearned license revenue and unearned carbon capture and storage revenue. Of these performance obligations, $ 25.5 million is expected to be recognized within the next twelve months , with the remaining $ 11.2 million expected to be recognized thereafter as we satisfy our performance obligations. We generally collect payment within a year of satisfying performance obligations and therefore have elected not to adjust revenues for a financing component. CONTRACT BALANCES The timing of revenue recognition, invoicing and cash collections results in trade receivables and deferred revenue (contract liabilities) on the Consolidated Balance Sheets. Trade receivables are recorded when we have an unconditional right to consideration for completed performance under a contract. Contract liabilities relate to payments received in advance of performance under a contract and are recognized as revenue as, or when, we perform under a contract. The following table summarizes revenue recognized during the three and nine months ended September 30, 2025 and 2024 that was included in the contract liability balance at the beginning of each year: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Revenue recognized from contract liability balance at the beginning of the year $ 3,649 $ 2,122 $ 19,497 $ 20,377 25 Table of Contents RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Dollar amounts in thousands unless otherwise stated) The following tables present our revenue from contracts with customers disaggregated by product type for the three and nine months ended September 30, 2025 and 2024: Three Months Ended Southern Timber Pacific Northwest Timber Real Estate Total September 30, 2025 Pulpwood $ 22,261 $ 1,229 — $ 23,490 Sawtimber 27,860 17,102 — 44,962 Hardwood 2,080 — — 2,080 Total Timber Sales 52,201 18,331 — 70,532 License Revenue, Primarily from Hunting 5,346 230 — 5,576 Land-Based Solutions (a) 2,822 32 — 2,854 Other Non-Timber Revenue 6,465 1,348 — 7,813 Total Non-Timber Sales 14,633 1,610 — 16,243 Improved Development — — 20,590 20,590 Rural — — 7,311 7,311 Timberland & Non-Strategic — — 53,500 53,500 Deferred Revenue/Other (b) — — 8,882 8,882 Total Real Estate Sales — — 90,283 90,283 Revenue from Contracts with Customers 66,834 19,941 90,283 177,058 Lease Revenue — — 473 473 Total Revenue $ 66,834 $ 19,941 $ 90,756 $ 177,531 Three Months Ended Southern Timber Pacific Northwest Timber Real Estate Total September 30, 2024 Pulpwood $ 23,182 $ 1,318 — $ 24,500 Sawtimber 21,034 24,378 — 45,412 Hardwood 1,136 — — 1,136 Total Timber Sales 45,352 25,696 — 71,048 Trading (c) 397 4,378 — 4,775 License Revenue, Primarily from Hunting 5,348 290 — 5,638 Land-Based Solutions (a) 2,767 10 — 2,777 Other Non-Timber Revenue 8,552 1,252 — 9,804 Total Non-Timber Sales 17,064 5,930 — 22,994 Improved Development — — 11,999 11,999 Rural — — 13,766 13,766 Conservation Easement — — 1,101 1,101 Deferred Revenue/Other (b) — — 2,740 2,740 Total Real Estate Sales — — 29,606 29,606 Revenue from Contracts with Customers 62,416 31,626 29,606 123,648 Lease Revenue — — 455 455 Total Revenue $ 62,416 $ 31,626 $ 30,061 $ 124,103 (a) Consists primarily of sales from carbon capture and storage (“CCS”) and solar energy contracts. (b) Includes deferred revenue adjustments, builder price participation, and other fees related to Improved Development sales. (c) Consists of log trading sales which are now included in the Southern Timber and Pacific Northwest Timber segments. See Note 3 — Segment and Geographical Information for further discussion of our reportable segments. 26 Table of Contents RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Dollar amounts in thousands unless otherwise stated) Nine Months Ended Southern Timber Pacific Northwest Timber Real Estate Total September 30, 2025 Pulpwood $ 61,495 $ 3,754 — $ 65,249 Sawtimber 71,830 56,110 — 127,940 Hardwood 4,531 — — 4,531 Total Timber Sales 137,856 59,864 — 197,720 Trading (a) — 1,805 — 1,805 License Revenue, Primarily From Hunting 15,912 426 — 16,338 Land-Based Solutions (b) 8,357 93 — 8,450 Other Non-Timber Revenue 8,977 3,345 — 12,322 Total Non-Timber Sales 33,246 5,669 — 38,915 Improved Development — — 32,368 32,368 Unimproved Development — — 3,000 3,000 Rural — — 28,314 28,314 Timberland & Non-Strategic — — 53,500 53,500 Deferred Revenue/Other (c) — — 12,047 12,047 Total Real Estate Sales — — 129,229 129,229 Revenue from Contracts with Customers 171,102 65,533 129,229 365,864 Lease Revenue — — 1,126 1,126 Total Revenue $ 171,102 $ 65,533 $ 130,355 $ 366,990 Nine Months Ended Southern Timber Pacific Northwest Timber Real Estate Total September 30, 2024 Pulpwood $ 73,141 $ 4,329 — $ 77,470 Sawtimber 79,973 68,495 — 148,468 Hardwood 3,003 — — 3,003 Total Timber Sales 156,117 72,824 — 228,941 Trading (a) 1,223 7,083 — 8,306 License Revenue, Primarily from Hunting 15,907 515 — 16,422 Land-Based Solutions (b) 7,062 30 — 7,092 Other Non-Timber Revenue 12,236 3,354 — 15,590 Total Non-Timber Sales 36,428 10,982 — 47,410 Improved Development — — 16,399 16,399 Rural — — 29,964 29,964 Timberland & Non-Strategic — — 610 610 Conservation Easement — — 1,101 1,101 Deferred Revenue/Other (c) — — 11,902 11,902 Total Real Estate Sales — — 59,976 59,976 Revenue from Contracts with Customers 192,545 83,806 59,976 336,327 Lease Revenue — — 1,119 1,119 Total Revenue $ 192,545 $ 83,806 $ 61,095 $ 337,446 (a) Consists of log trading sales which are now included in the Southern Timber and Pacific Northwest Timber segments. See Note 3 — Segment and Geographical Information for further discussion of our reportable segments. (b) Consists primarily of sales from carbon capture and storage (“CCS”) and solar energy contracts. (c) Includes deferred revenue adjustments, builder price participation, and other fees related to Improved Development sales. 27 Table of Contents RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Dollar amounts in thousands unless otherwise stated) The following tables present our timber sales disaggregated by contract type for the three and nine months ended September 30, 2025 and 2024: Three Months Ended Southern Timber Pacific Northwest Timber Total September 30, 2025 Stumpage Pay-as-Cut $ 26,112 — $ 26,112 Stumpage Lump Sum 368 646 1,014 Total Stumpage 26,480 646 27,126 Delivered Wood (Domestic) 25,721 17,685 43,406 Total Delivered 25,721 17,685 43,406 Total Timber Sales $ 52,201 $ 18,331 $ 70,532 September 30, 2024 Stumpage Pay-as-Cut $ 20,907 — $ 20,907 Stumpage Lump Sum — 3,846 3,846 Total Stumpage 20,907 3,846 24,753 Delivered Wood (Domestic) 23,733 20,612 44,345 Delivered Wood (Export) 712 1,238 1,950 Total Delivered 24,445 21,850 46,295 Total Timber Sales $ 45,352 $ 25,696 $ 71,048 28 Table of Contents RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Dollar amounts in thousands unless otherwise stated) Nine Months Ended Southern Timber Pacific Northwest Timber Total September 30, 2025 Stumpage Pay-as-Cut $ 63,225 — $ 63,225 Stumpage Lump Sum 794 2,356 3,150 Total Stumpage 64,019 2,356 66,375 Delivered Wood (Domestic) 73,837 57,465 131,302 Delivered Wood (Export) — 43 43 Total Delivered 73,837 57,508 131,345 Total Timber Sales $ 137,856 $ 59,864 $ 197,720 September 30, 2024 Stumpage Pay-as-Cut $ 80,531 $ 8 $ 80,539 Stumpage Lump Sum — 7,381 7,381 Total Stumpage 80,531 7,389 87,920 Delivered Wood (Domestic) 70,851 61,513 132,364 Delivered Wood (Export) 4,735 3,922 8,657 Total Delivered 75,586 65,435 141,021 Total Timber Sales $ 156,117 $ 72,824 $ 228,941 29 Table of Contents RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Dollar amounts in thousands unless otherwise stated) 5. NONCONTROLLING INTERESTS NONCONTROLLING INTERESTS IN CONSOLIDATED AFFILIATES Matariki Forestry Group Prior to the sale of our New Zealand operations on June 30, 2025, we maintained a 77 % controlling financial interest in Matariki Forestry Group (the “New Zealand subsidiary”), a joint venture that owns and leases New Zealand timberland. Accordingly, we consolidated the New Zealand subsidiary’s balance sheet and results of operations. Income attributable to the New Zealand subsidiary’s 23 % noncontrolling interests is reflected as an adjustment to income in our Consolidated Statements of Income and Comprehensive Income (Loss) under the caption “Net (income) loss attributable to noncontrolling interests in consolidated affiliates.” Due to the sale of the New Zealand subsidiary, we have deconsolidated its balance sheet as of June 30, 2025, and its income (loss) has been classified as discontinued operations in our Consolidated Statements of Income and Comprehensive Income (Loss) for all periods presented. See Note 2 — Discontinued Operations for additional information. NONCONTROLLING INTERESTS IN THE OPERATING PARTNERSHIP Noncontrolling interests in the Operating Partnership represents the third-party ownership of Redeemable Operating Partnership Units. Net income attributable to the noncontrolling interests in the Operating Partnership is computed by applying the weighted average Redeemable Operating Partnership Units outstanding during the period as a percentage of the weighted average total units outstanding to the Operating Partnership’s net income for the period. If a noncontrolling unitholder redeems a unit for a registered common share of Rayonier or cash, the noncontrolling interests in the Operating Partnership will be reduced and the Company’s share in the Operating Partnership will be increased by the fair value of each security at the time of redemption. The following table sets forth the Company’s noncontrolling interests in the Operating Partnership: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Beginning noncontrolling interests in the Operating Partnership $ 53,353 $ 59,047 $ 51,843 $ 81,651 Adjustment of noncontrolling interests in the Operating Partnership 1,350 6,476 ( 3,823 ) ( 1,325 ) Conversions of Redeemable Operating Partnership Units to common shares ( 8,058 ) ( 643 ) ( 8,304 ) ( 14,070 ) Net income attributable to noncontrolling interests in the Operating Partnership 522 391 5,952 437 Other comprehensive loss attributable to noncontrolling interests in the Operating Partnership ( 450 ) ( 77 ) ( 496 ) ( 323 ) Distributions to noncontrolling interests in the Operating Partnership ( 475 ) ( 528 ) ( 1,611 ) ( 1,704 ) Issuance of Redeemable Operating Partnership Units (a) — — 2,681 — Total noncontrolling interests in the Operating Partnership $ 46,242 $ 64,666 $ 46,242 $ 64,666 (a) Reflects the issuance of Redeemable Operating Partnership Units related to the Company’s special distribution of $ 1.80 per Operating Partnership unit, paid on January 30, 2025, to holders of record as of December 12, 2024. This distribution comprised a combination of cash and Redeemable Operating Partnership Units. 30 Table of Contents RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Dollar amounts in thousands unless otherwise stated) 6. EARNINGS PER SHARE AND PER UNIT Basic earnings per common share (“EPS”) is calculated by dividing net income attributable to Rayonier Inc. by the weighted average number of common shares outstanding. Diluted EPS is calculated by dividing net income attributable to Rayonier Inc., before net income attributable to noncontrolling interests (“NCI”) in the Operating Partnership by the weighted average number of common shares outstanding adjusted to include the potentially dilutive effect of outstanding stock options, performance shares, restricted shares, restricted stock units, noncontrolling interests in Operating Partnership units and contingently issuable shares and units. The following table provides details of the calculation of basic earnings per common share of the Company: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Basic earnings per common share Numerator: Net income from continuing operations $ 43,709 $ 22,240 $ 47,885 $ 13,834 Less: Net income from continuing operations attributable to NCI in the Operating Partnership ( 522 ) ( 298 ) ( 577 ) ( 181 ) Less: Net loss from continuing operations attributable to NCI in consolidated affiliates — 10 — 34 Net income from continuing operations attributable to Rayonier Inc. $ 43,187 $ 21,952 $ 47,308 $ 13,687 Net income from discontinued operations — $ 8,202 $ 406,346 $ 21,949 Less: Net income from discontinued operations attributable to NCI in the Operating Partnership — ( 93 ) ( 5,375 ) ( 256 ) Less: Net (income) loss from discontinued operations attributable to NCI in consolidated affiliates — ( 1,303 ) 192 ( 3,362 ) Net income from discontinued operations attributable to Rayonier Inc. — $ 6,806 $ 401,163 $ 18,331 Net income $ 43,709 $ 30,442 $ 454,231 $ 35,783 Less: Net income attributable to NCI in the Operating Partnership ( 522 ) ( 391 ) ( 5,952 ) ( 437 ) Less: Net (income) loss attributable to NCI in consolidated affiliates — ( 1,293 ) 192 ( 3,328 ) Net income attributable to Rayonier Inc. $ 43,187 $ 28,758 $ 448,471 $ 32,018 Denominator: Denominator for basic earnings per common share - weighted average shares 154,306,240 148,984,534 154,509,107 148,821,306 Basic earnings per common share attributable to Rayonier Inc.: Continuing operations $ 0.28 $ 0.15 $ 0.31 $ 0.09 Discontinued operations — $ 0.05 $ 2.60 $ 0.12 Basic earnings per common share $ 0.28 $ 0.19 $ 2.90 $ 0.22 31 Table of Contents RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Dollar amounts in thousands unless otherwise stated) The following table provides details of the calculation of diluted earnings per common share of the Company: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Diluted earnings per common share Numerator: Net income from continuing operations $ 43,709 $ 22,240 $ 47,885 $ 13,834 Less: Net loss from continuing operations attributable to NCI in consolidated affiliates — 10 — 34 Net income from continuing operations attributable to Rayonier Inc. used for determining diluted earnings per common share $ 43,709 $ 22,250 $ 47,885 $ 13,868 Net income from discontinued operations — $ 8,202 $ 406,346 $ 21,949 Less: Net (income) loss from discontinued operations attributable to NCI in consolidated affiliates — ( 1,303 ) 192 ( 3,362 ) Net income from discontinued operations attributable to Rayonier Inc. used for determining diluted earnings per common share — $ 6,899 $ 406,538 $ 18,587 Net income $ 43,709 $ 30,442 $ 454,231 $ 35,783 Less: Net (income) loss attributable to NCI in consolidated affiliates — ( 1,293 ) 192 ( 3,328 ) Net income attributable to Rayonier Inc. used for determining diluted earnings per common share $ 43,709 $ 29,149 $ 454,423 $ 32,455 Denominator: Denominator for basic earnings per common share - weighted average shares 154,306,240 148,984,534 154,509,107 148,821,306 Add: Dilutive effect of: Stock options — — — 55 Performance shares, restricted shares and restricted stock units 194,077 281,407 192,390 403,444 Noncontrolling interests in Operating Partnership units 1,864,367 2,027,053 1,999,949 2,088,013 Contingently issuable shares and units from special dividend — — 841,991 — Denominator for diluted earnings per common share - adjusted weighted average share 156,364,684 151,292,994 157,543,437 151,312,818 Diluted earnings per common share attributable to Rayonier Inc.: Continuing operations $ 0.28 $ 0.15 $ 0.30 $ 0.09 Discontinued operations — $ 0.05 $ 2.58 $ 0.12 Diluted earnings per common share $ 0.28 $ 0.19 $ 2.88 $ 0.21 Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Anti-dilutive shares excluded from the computations of diluted earnings per common share: Stock options, performance shares, restricted shares and restricted stock units 324,716 149,609 260,170 149,446 32 Table of Contents RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Dollar amounts in thousands unless otherwise stated) Basic earnings per unit (“EPU”) is calculated by dividing net income available to unitholders of Rayonier, L.P. by the weighted average number of units outstanding. Diluted EPU is calculated by dividing net income available to unitholders of Rayonier, L.P. by the weighted average number of units outstanding adjusted to include the potentially dilutive effect of outstanding unit equivalents, including stock options, performance shares, restricted shares, restricted stock units and contingently issuable shares and units. The following table provides details of the calculation of basic earnings per unit of the Operating Partnership: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Basic earnings per unit Numerator: Net income from continuing operations $ 43,709 $ 22,240 $ 47,885 $ 13,834 Less: Net loss from continuing operations attributable to NCI in consolidated affiliates — 10 — 34 Net income from continuing operations available to unitholders $ 43,709 $ 22,250 $ 47,885 $ 13,868 Net income from discontinued operations — $ 8,202 $ 406,346 $ 21,949 Less: Net (income) loss from discontinued operations attributable to NCI in consolidated affiliates — ( 1,303 ) 192 ( 3,362 ) Net income from discontinued operations available to unitholders — $ 6,899 $ 406,538 $ 18,587 Net income $ 43,709 $ 30,442 $ 454,231 $ 35,783 Less: Net (income) loss attributable to NCI in consolidated affiliates — ( 1,293 ) 192 ( 3,328 ) Net income available to unitholders $ 43,709 $ 29,149 $ 454,423 $ 32,455 Denominator: Denominator for basic earnings per unit - weighted average units 156,170,607 151,011,587 156,509,056 150,909,319 Basic earnings per unit attributable to Rayonier, L.P.: Continuing operations $ 0.28 $ 0.15 $ 0.31 $ 0.09 Discontinued operations — $ 0.05 $ 2.60 $ 0.12 Basic earnings per unit $ 0.28 $ 0.19 $ 2.90 $ 0.22 33 Table of Contents RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Dollar amounts in thousands unless otherwise stated) The following table provides details of the calculation of diluted earnings per unit of the Operating Partnership: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Diluted earnings per unit Numerator: Net income from continuing operations $ 43,709 $ 22,240 $ 47,885 $ 13,834 Less: Net loss from continuing operations attributable to NCI in consolidated affiliates — 10 — 34 Net income from continuing operations available to unitholders $ 43,709 $ 22,250 $ 47,885 $ 13,868 Net income from discontinued operations — $ 8,202 $ 406,346 $ 21,949 Less: Net (income) loss from discontinued operations attributable to NCI in consolidated affiliates — ( 1,303 ) 192 ( 3,362 ) Net income from discontinued operations available to unitholders — $ 6,899 $ 406,538 $ 18,587 Net income $ 43,709 $ 30,442 $ 454,231 $ 35,783 Less: Net (income) loss attributable to NCI in consolidated affiliates — ( 1,293 ) 192 ( 3,328 ) Net income available to unitholders $ 43,709 $ 29,149 $ 454,423 $ 32,455 Denominator: Denominator for basic earnings per unit - weighted average units 156,170,607 151,011,587 156,509,056 150,909,319 Add: Dilutive effect of unit equivalents: Stock options — — — 55 Performance shares, restricted shares and restricted stock units 194,077 281,407 192,390 403,444 Contingently issuable shares and units from special dividend — — 841,991 — Denominator for diluted earnings per unit - adjusted weighted average units 156,364,684 151,292,994 157,543,437 151,312,818 Diluted earnings per unit attributable to Rayonier, L.P.: Continuing operations $ 0.28 $ 0.15 $ 0.30 $ 0.09 Discontinued operations — $ 0.05 $ 2.58 $ 0.12 Diluted earnings per unit $ 0.28 $ 0.19 $ 2.88 $ 0.21 Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Anti-dilutive unit equivalents excluded from the computations of diluted earnings per unit: Stock options, performance shares, restricted shares and restricted stock units 324,716 149,609 260,170 149,446 34 Table of Contents RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Dollar amounts in thousands unless otherwise stated) 7. DEBT Our debt consisted of the following at September 30, 2025: September 30, 2025 Debt Senior Notes due 2031 at a fixed interest rate of 2.75 % $ 450,000 2015 Term Loan borrowings due 2028 at a variable interest rate of 5.94 % 200,000 2016 Incremental Term Loan borrowings due 2026 at a variable interest rate of 6.09 % 200,000 2021 Incremental Term Loan borrowings due 2029 at a variable interest rate of 6.26 % 200,000 Total principal debt 1,050,000 Less: Current maturities of long-term debt, net of deferred financing costs of $ 31 ( 199,969 ) Less: Unamortized discounts ( 2,167 ) Less: Deferred financing costs ( 2,745 ) Total long-term debt, net $ 845,119 The following table contains information on the outstanding variable rate debt as of September 30, 2025: Debt Periodic Interest Rate Effective Fixed Interest Rate (a) 2015 Term Loan Daily Simple SOFR + 1.60 % 2.11 % 2016 Incremental Term Loan Daily Simple SOFR + 1.75 % 2.39 % 2021 Incremental Term Loan Daily Simple SOFR + 1.92 % 1.72 % (a) Effective interest rate is after consideration of interest rate swaps and estimated patronage. Principal payments due during the next five years and thereafter are as follows: Total 2025 — 2026 $ 200,000 2027 — 2028 200,000 2029 200,000 Thereafter 450,000 Total debt $ 1,050,000 2025 DEBT ACTIVITY REVOLVING CREDIT FACILITY In August 2025, we amended and restated our credit agreement, primarily to extend the maturity date of the Revolving Credit Facility. The maturity of the $ 300 million Revolving Credit Facility was extended from June 2026 to August 2030. In connection with the amendment, we concurrently modified the following terms: • The commitment under the Revolving Credit Facility was reduced from $ 300 million to $ 200 million. • The 0.1 % credit spread adjustment previously added to the Revolving Credit Facility during the 2022 transition from LIBOR to SOFR was eliminated. 35 Table of Contents RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Dollar amounts in thousands unless otherwise stated) • The 0.1 % credit spread adjustment on each of our three Term Loans was merged into the respective Term loan’s base rate. This modification resulted in no change to the all-in fixed rate for each Term loan. In connection with the amendments, we recorded deferred financing costs in the amount of $ 0.8 million, which will be amortized to interest expense over the term of the extended credit agreement. During the nine months ended September 30, 2025, we made no borrowings or repayments on our Revolving Credit Facility. At September 30, 2025, we had available borrowings of $ 192.4 million under the Revolving Credit Facility, net of $ 7.6 million securing outstanding letters of credit. DEBT COVENANTS In connection with our 2015 Term Loan Agreement, 2016 Incremental Term Loan Agreement, 2021 Incremental Term Loan Agreement and Revolving Credit Facility, customary covenants must be met, the most significant of which include interest coverage and leverage ratios. The covenants listed below, which are the most significant financial covenants in effect as of September 30, 2025, are calculated on a trailing 12-month basis: Covenant Requirement Actual Ratio Favorable Covenant EBITDA to consolidated interest expense should not be less than 2.5 to 1 10.9 to 1 8.4 Covenant debt to covenant net worth plus covenant debt shall not exceed 65 % 33 % 32 % In addition to the financial covenants listed above, the Senior Notes due 2031, 2015 Term Loan Agreement, 2016 Incremental Term Loan Agreement, 2021 Incremental Term Loan Agreement, and Revolving Credit Facility include customary covenants that limit the incurrence of debt and the disposition of assets, among others. Prior to the sale of our New Zealand subsidiary, we obtained a consent agreement from the lenders party to the aforementioned term loan and incremental term loan agreements, as well as our revolving credit facility, which provided a one-time modification to waive certain disposition-related covenants contained therein. Therefore, the consideration received from the New Zealand disposition did not count towards our defined disposition limits. At September 30, 2025, we were in compliance with all applicable covenants. 36 Table of Contents RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Dollar amounts in thousands unless otherwise stated) 8. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES Our financial results are subject to market risk from potential changes in interest rates. To manage this exposure, we utilize derivative financial instruments. We account for derivative financial instruments under ASC Topic 815, Derivatives and Hedging , (“ASC 815”), and record them at fair value as assets or liabilities in the Consolidated Balance Sheets. The accounting for changes in their fair value depends on their intended use. Gains and losses on derivatives that are designated and qualify as cash flow hedges are initially recorded in accumulated other comprehensive income (“AOCI”) and subsequently reclassified into earnings when the hedged transaction occurs. Changes in the fair value of derivatives not designated as hedges, or those that cease to be effective, are recognized immediately in earnings. INTEREST RATE PRODUCTS We are exposed to cash flow interest rate risk on our variable-rate debt. To hedge this exposure, we use variable-to-fixed interest rate swaps. For these swaps, the gains or losses from changes in their fair value are reported in AOCI and are reclassified to interest expense in the period the hedged interest payments affect earnings. In the event that a cash flow hedge is de-designated or terminated while the hedged item remains, the unrealized gain or loss on the hedge at the time of de-designation remains in AOCI and is amortized to interest expense on a straight-line basis over the remaining life of the hedged item. Conversely, if the hedged item becomes ineffective, the related gain or loss is immediately reclassified from AOCI to earnings. INTEREST RATE SWAPS The following table contains information on the outstanding interest rate swaps as of September 30, 2025: Outstanding Interest Rate Swaps (a) Date Entered Into Term Notional Amount Related Debt Facility Fixed Rate of Swap Bank Margin on Debt Total Effective Interest Rate (b) April 2016 10 years $ 100,000 2016 Incremental Term Loan 1.50 % 1.75 % 3.25 % April 2016 10 years 100,000 2016 Incremental Term Loan 1.51 % 1.75 % 3.26 % February 2022 7 years 200,000 2021 Incremental Term Loan 0.67 % 1.92 % 2.59 % August 2024 4 years 100,000 2015 Term Loan 0.78 % 1.60 % 2.38 % August 2024 4 years 50,000 2015 Term Loan 0.64 % 1.60 % 2.24 % August 2024 4 years 50,000 2015 Term Loan 3.29 % 1.60 % 4.89 % (a) All interest rate swaps are designated as cash flow hedges and qualify for hedge accounting. (b) Rate is before estimated patronage payments. The following table demonstrates the impact, gross of tax, of our derivatives on the Consolidated Statements of Income and Comprehensive Income (Loss) for the three and nine months ended September 30, 2025 and 2024: Three Months Ended September 30, Nine Months Ended September 30, Income Statement Location 2025 2024 2025 2024 Derivatives designated as cash flow hedges: Interest rate products Other comprehensive income (loss), relating to continuing operations $ 865 ($ 14,949 ) ($ 4,821 ) $ 5,273 Interest expense, net ( 4,614 ) ( 6,822 ) ( 13,654 ) ( 21,379 ) 37 Table of Contents RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Dollar amounts in thousands unless otherwise stated) During the next 12 months, the amount of the AOCI balance, net of tax, expected to be reclassified into earnings is a gain of approximately $ 11.9 million. The following table provides details of these expected reclassifications: Amount expected to be reclassified into earnings in next 12 months Derivatives designated as cash flow hedges: Interest rate products (a) $ 11,908 Total estimated net gain on derivatives contracts $ 11,908 (a) These reclassified amounts are expected to perfectly offset variable interest rate payments to debt holders, resulting in no net impact on our earnings or cash flows. The following table contains the notional amounts of the derivative financial instruments recorded in the Consolidated Balance Sheets at September 30, 2025 and December 31, 2024: Notional Amount September 30, 2025 December 31, 2024 Derivatives designated as cash flow hedges: Interest rate swaps $ 600,000 $ 600,000 The following table contains the fair values of the derivative financial instruments recorded in the Consolidated Balance Sheets at September 30, 2025 and December 31, 2024: Location on Balance Sheet Fair Value Assets / (Liabilities) (a) September 30, 2025 December 31, 2024 Derivatives designated as cash flow hedges: Interest rate swaps Other current assets $ 2,634 — Other assets 27,548 49,353 Total derivative assets $ 30,182 $ 49,353 (a) See Note 9 — Fair Value Measurements for further information on the fair value of our derivatives including their classification within the fair value hierarchy. OFFSETTING DERIVATIVES We present derivative financial instruments at their gross fair values in the Consolidated Balance Sheets. These instruments are not subject to master netting arrangements that would permit the right of offset. 38 Table of Contents RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Dollar amounts in thousands unless otherwise stated) 9. FAIR VALUE MEASUREMENTS FAIR VALUE OF FINANCIAL INSTRUMENTS A three-level hierarchy that prioritizes the inputs used to measure fair value was established in the Accounting Standards Codification as follows: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than quoted prices included in Level 1. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The following table presents the carrying amount and estimated fair values of our financial instruments as of September 30, 2025 and December 31, 2024, using market information valuation methodologies we believe are appropriate under GAAP: September 30, 2025 December 31, 2024 Asset (Liability) (a) Carrying Amount Fair Value Carrying Amount Fair Value Level 1 Level 2 Level 1 Level 2 Cash and cash equivalents $ 919,582 $ 919,582 — $ 303,065 $ 303,065 — Restricted cash, current (b) — — — 19,366 19,366 — Restricted cash, non-current (b) 677 677 — 676 676 — Current maturities of long-term debt (c) ( 199,969 ) — ( 200,000 ) — — — Long-term debt (c) ( 845,119 ) — ( 804,100 ) ( 1,044,410 ) — ( 980,970 ) Interest rate swaps (d) 30,182 — 30,182 49,353 — 49,353 Noncontrolling interests in the Operating Partnership (e) 46,242 — 46,242 51,843 — 51,843 (a) We did not have Level 3 assets or liabilities at September 30, 2025 or December 31, 2024. (b) Restricted cash includes proceeds from like-kind exchange sales held by a third-party intermediary and cash held in escrow. See Note 18 — Restricted Cash for additional information. (c) The carrying amount of long-term debt is presented net of deferred financing costs and unamortized discounts on non-revolving debt. See Note 7 — Debt for additional information. (d) See Note 8 — Derivative Financial Instruments and Hedging Activities for information regarding the Consolidated Balance Sheets classification of our derivative financial instruments. (e) Noncontrolling interests in the Operating Partnership, representing ownership of Rayonier, L.P. units by parties other than the Company, are classified as temporary equity and are neither assets nor liabilities on the Company’s Consolidated Balance Sheets. See Note 5 — Noncontrolling Interests for additional information. We use the following methods and assumptions in estimating the fair value of our financial instruments: Cash and cash equivalents and Restricted cash — The carrying amount is equal to fair market value. Debt — The fair value of fixed-rate debt is determined using quoted market prices for debt with comparable terms and maturities. For variable-rate debt, the carrying value approximates fair value as the interest rate adjusts with market changes. Interest rate swap agreements — The fair value of interest rate contracts is determined by discounting the expected future cash flows for each instrument at prevailing interest rates. Noncontrolling interests in the Operating Partnership — The fair value of noncontrolling interests in the Operating Partnership is determined by using the period-end closing price of Rayonier Inc. common shares. 39 Table of Contents RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Dollar amounts in thousands unless otherwise stated) 10. CONTINGENCIES We have been named as a defendant in various lawsuits and claims arising in the normal course of business. While we have procured reasonable and customary insurance covering risks normally occurring in connection with our businesses, we have in certain cases retained some risk through the operation of large deductible insurance plans, primarily in the areas of executive risk, property, automobile and general liability. These pending lawsuits and claims, either individually or in the aggregate, are not expected to have a material adverse effect on our financial position, results of operations, or cash flow. 11. ENVIRONMENTAL AND NATURAL RESOURCE DAMAGE LIABILITIES Federal and state environmental laws in our operating areas hold current and former property owners liable for cleanup or restoration. These laws often impose “strict liability,” meaning owners or operators didn’t necessarily cause, and may not have even been aware of, the release of contaminated materials. Similarly, certain environmental laws allow state, federal, and tribal trustees (collectively, the “Trustees”) to bring suit against property owners for natural resource damages (“NRD”) resulting from releases of contaminants on or from their property, regardless of culpability for the release. Like cleanup liability, NRD liability can attach to property due to such contamination. Changes in environmental and NRD liabilities from December 31, 2024 to September 30, 2025 are shown below: Port Gamble, WA Non-current portion at December 31, 2024 $ 3,610 Plus: Current portion 4,283 Total Balance at December 31, 2024 7,893 Expenditures charged to liabilities ( 4,109 ) Increase to liabilities (a) 2,688 Total Balance at September 30, 2025 6,472 Less: Current portion ( 2,284 ) Non-current portion at September 30, 2025 $ 4,188 (a) The increase in liabilities resulted from revised environmental and NRD cost estimates recognized during the nine months ended September 30, 2025. Upland mill site cleanup activities have been completed, and we anticipate that NRD restoration will be completed within the next year. Monitoring activities associated with the Port Gamble Bay, mill site, and landfills will continue for an additional 15 to 20 years. NRD costs are subject to change as the restoration projects progress. It is reasonably possible that these components of the liability may increase as construction continues. Management continues to monitor the Port Gamble cleanup process and will make adjustments as needed. Should any future circumstances result in a change to the estimated cost of the project, we will record an appropriate adjustment to the liability in the period it becomes known and when we can reasonably estimate the amount. We do not currently anticipate any material loss in excess of the amounts accrued; however, we are not able to estimate a possible loss or range of loss, if any, in excess of the established liabilities. Our future remediation expenses may be affected by a number of uncertainties including, but not limited to, the difficulty in estimating the extent and method of remediation, the evolving nature of environmental regulations, and the availability and application of technology. We do not expect the resolution of such uncertainties to have a material adverse effect on our consolidated financial position or liquidity. 40 Table of Contents RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Dollar amounts in thousands unless otherwise stated) 12. GUARANTEES We provide financial guarantees as required by creditors, insurance programs, and various governmental agencies. As of September 30, 2025, the following financial guarantees were outstanding: Financial Commitments (a) Maximum Potential Payment Standby letters of credit (b) $ 7,646 Surety bonds (c) 45,790 Total financial commitments $ 53,436 (a) We have not recorded any liabilities for these financial commitments in our Consolidated Balance Sheets. The guarantees are not subject to measurement as the guarantees are dependent on our own performance. (b) Approximately $ 6.3 million of the standby letters of credit provide credit support for real estate construction in our Wildlight development project. The remaining letters of credit support various insurance related agreements. These letters of credit will expire at various dates in 2025 and 2026 and will be renewed as required. (c) Surety bonds primarily secure performance obligations for various operational activities and provide collateral for our Wildlight (Nassau County, Florida) and Heartwood (Richmond Hill, Georgia) development projects. These surety bonds expire on various dates through 2027 and are expected to be renewed as required. 41 Table of Contents RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Dollar amounts in thousands unless otherwise stated) 13. HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS We routinely assess potential alternative uses of our timberlands, as some properties may become more valuable for development, residential, recreation or other purposes. We periodically transfer, via a sale or contribution from the real estate investment trust (“REIT”) entities to taxable REIT subsidiaries (“TRS”), higher and better use (“HBU”) timberlands to enable land-use entitlement, development or marketing activities. We also acquire HBU properties in connection with timberland acquisitions. These properties are managed as timberlands until sold or developed. While the majority of HBU sales involve rural and recreational land, we also selectively pursue various land-use entitlements on certain properties for residential, commercial and industrial development in order to enhance the long-term value of such properties. For selected development properties, we also invest in targeted infrastructure improvements, such as roadways and utilities, to accelerate the marketability and improve the value of such properties. Changes in higher and better use timberlands and real estate development investments from December 31, 2024 to September 30, 2025 are shown below: Higher and Better Use Timberlands and Real Estate Development Investments Land and Timber Development Investments Total Non-current portion at December 31, 2024 $ 86,832 $ 22,778 $ 109,610 Plus: Current portion (a) 1,402 28,206 29,608 Total Balance at December 31, 2024 88,234 50,984 139,218 Non-cash cost of land and improved development ( 1,197 ) ( 24,286 ) ( 25,483 ) Amortization of parcel real estate development investments — ( 4,210 ) ( 4,210 ) Timber depletion from harvesting activities and basis of timber sold in real estate sales ( 1,832 ) — ( 1,832 ) Capitalized real estate development investments (b) — 15,681 15,681 Capital expenditures (silviculture) 98 — 98 Intersegment transfers 9,315 — 9,315 Other (c) ( 7,048 ) — ( 7,048 ) Total Balance at September 30, 2025 87,570 38,169 125,739 Less: Current portion (a) ( 2,491 ) ( 13,712 ) ( 16,203 ) Non-current portion at September 30, 2025 $ 85,079 $ 24,457 $ 109,536 (a) The current portion of Higher and Better Use Timberlands and Real Estate Development Investments is recorded in Inventory. See Note 14 — Inventory for additional information. (b) Capitalized real estate development investments include $ 0.7 million of capitalized interest and $ 3.8 million of parcel real estate development investments. Parcel real estate development investments represent investments made for specific lots and/or commercial parcels that are currently under contract or expected to be ready for market within one year. (c) Other includes a $ 7.0 million non-cash asset impairment charge recognized on certain Higher and Better Use Timberland assets located in Washington, which were acquired in the 2020 merger with Pope Resources. The Company identified indicators of impairment, principally observed decreases in the market value of the underlying real property assets. Accordingly, the Company performed a long-lived asset impairment analysis and determined that the carrying value of these assets exceeded their estimated fair value. The resulting impairment charge was measured as the amount by which the carrying value of the impaired assets exceeded their estimated fair value. The estimated fair value was determined using projected discounted future cash flows, incorporating relevant and updated market data as of the measurement date. 42 Table of Contents RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Dollar amounts in thousands unless otherwise stated) 14. INVENTORY As of September 30, 2025 and December 31, 2024, our inventory consisted entirely of finished goods, as follows: September 30, 2025 December 31, 2024 Finished goods inventory Real estate inventory (a) $ 16,203 $ 29,608 Log inventory — 1,271 Total inventory $ 16,203 $ 30,879 (a) Represents the cost of HBU real estate expected to be sold, including capitalized development investments. See Note 13 — Higher And Better Use Timberlands and Real Estate Development Investments for additional information. 15. OTHER OPERATING INCOME (EXPENSE), NET Other operating income (expense), net consisted of the following: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Gain (loss) on sale or disposal of property, plant and equipment $ 23 — ($ 105 ) $ 13 Restructuring charges (a) — — ( 1,110 ) — Costs related to disposition initiatives (b) — ( 664 ) — ( 849 ) Miscellaneous income, net 290 1 144 21 Total $ 313 ($ 663 ) ($ 1,071 ) ($ 815 ) (a) Restructuring charges include severance costs related to workforce optimization initiatives. (b) Costs related to disposition initiatives include legal, advisory, and other due diligence costs incurred in connection with our asset disposition plan, which was announced in November 2023. 43 Table of Contents RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Dollar amounts in thousands unless otherwise stated) 16. INCOME TAXES Rayonier is a REIT under the Internal Revenue Code and therefore generally does not pay U.S. federal or state income tax. As of September 30, 2025, Rayonier owns a 98.9 % inter est in the Operating Partnership and conducts substantially all of its timberland operations through the Operating Partnership. The taxable income or loss generated by the Operating Partnership is passed through and reported to its unit holders (including the Company) on a Schedule K-1 for inclusion in each unitholder’s income tax return. Certain operations, including log trading and certain real estate activities, such as the entitlement, development and sale of HBU properties, are conducted through our TRS. The TRS subsidiaries are subject to United States federal and state corporate income tax. PROVISION FOR INCOME TAXES The Company’s tax expense for continuing operations is principally related to state income tax. The following table contains the income tax (expense) benefit recognized on the Consolidated Statements of Income and Comprehensive Income (Loss): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Income tax (expense) benefit (a) — ($ 10 ) ($ 291 ) $ 981 (a) The nine months ended September 30, 2024 included a $ 1.2 million income tax benefit related to the pension settlement. ANNUAL EFFECTIVE TAX RATE The Company’s effective tax rate after discrete items is below the 21.0 % U.S. statutory rate due to tax benefits associated with being a REIT. The following table contains the Company’s annualized effective tax rate after discrete items for its continuing operations: Nine Months Ended September 30, 2025 2024 Annualized effective tax rate after discrete items 0.6 % ( 7.6 %) 44 Table of Contents RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Dollar amounts in thousands unless otherwise stated) 17. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table summarizes the changes in AOCI by component for the nine months ended September 30, 2025 and the year ended December 31, 2024. All amounts are presented net of tax and exclude portions attributable to noncontrolling interests. Foreign currency translation (losses) gains Net investment hedges of New Zealand subsidiary Cash flow hedges Employee benefit plans Total Rayonier, L.P. Allocation of Operating Partnership Total Rayonier Inc. Balance as of December 31, 2023 ($ 19,533 ) $ 1,321 $ 55,846 ($ 9,616 ) $ 28,018 ($ 3,367 ) $ 24,651 Other comprehensive (loss) income before reclassifications ( 31,616 ) — 13,713 (a) 5,251 ( 12,652 ) 163 ( 12,489 ) Amounts reclassified from accumulated other comprehensive (loss) income — — ( 27,826 ) 4,595 (b) ( 23,231 ) 640 ( 22,591 ) Net other comprehensive (loss) income ( 31,616 ) — ( 14,113 ) 9,846 ( 35,883 ) 803 ( 35,080 ) Balance as of December 31, 2024 ($ 51,149 ) $ 1,321 $ 41,733 $ 230 ($ 7,865 ) ($ 2,564 ) ($ 10,429 ) Other comprehensive income (loss) before reclassifications 19,766 — 1,265 (a) — 21,031 ( 93 ) 20,938 Amounts reclassified from accumulated other comprehensive (loss) income — — ( 12,749 ) ( 5 ) (b) ( 12,754 ) 589 ( 12,165 ) Amounts reclassified from accumulated other comprehensive (loss) income due to deconsolidation of discontinued operations 31,383 (c) ( 1,321 ) (c) ( 994 ) (c) — 29,068 — 29,068 Net other comprehensive income (loss) 51,149 ( 1,321 ) ( 12,478 ) ( 5 ) 37,345 496 37,841 Balance as of September 30, 2025 — — $ 29,255 $ 225 $ 29,480 ($ 2,068 ) $ 27,412 (a) The nine months ended September 30, 2025 includes $ 4.8 million o f other comprehensive loss related to interest rate products. The year ended December 31, 2024 included $ 21.8 million of other comprehensive income re lated to interest rate products. See Note 8 — Derivative Financial Instruments and Hedging Activities for additional information. (b) This component of other comprehensive (loss) income is included in the computation of net periodic pension and post-retirement costs. The year ended December 31, 2024 includes a pension settlement charge of $ 4.6 million, net of tax of $ 1.2 million. (c) The nine months ended September 30, 2025 includes $ 29.1 million of other comprehensive loss related to the deconsolidation of discontinued operations that was reclassified from AOCI to gain on sale of discontinued operations in the Consolidated Statements of Income and Comprehensive Income (Loss). 45 Table of Contents RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Dollar amounts in thousands unless otherwise stated) The following table presents details of the amounts reclassified in their entirety from AOCI to net income for the nine months ended September 30, 2025 and September 30, 2024: Details about accumulated other comprehensive income (loss) components Amount reclassified from accumulated other comprehensive (loss) income Affected line item in the Income Statement September 30, 2025 September 30, 2024 Realized loss on foreign currency exchange contracts $ 1,592 $ 1,742 Income from operations of discontinued operations, net of tax Realized loss on foreign currency option contracts 40 13 Income from operations of discontinued operations, net of tax Noncontrolling interests ( 376 ) ( 404 ) Comprehensive loss attributable to noncontrolling interests Realized gain on interest rate contracts ( 13,654 ) ( 21,379 ) Interest expense, net Income tax effect from net loss on foreign currency contracts ( 351 ) ( 378 ) Income from operations of discontinued operations, net of tax Net gain on cash flow hedges reclassified from accumulated other comprehensive loss ($ 12,749 ) ($ 20,406 ) 46 Table of Contents RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Dollar amounts in thousands unless otherwise stated) 18. RESTRICTED CASH Restricted cash includes cash deposited with a like-kind exchange (“LKE”) intermediary and cash held in escrow. In order to qualify for LKE treatment, the proceeds from real estate sales must be deposited with a third-party intermediary. These proceeds are accounted for as restricted cash until a suitable replacement property is acquired. In the event LKE purchases are not completed, the proceeds are returned to the Company after 180 days and reclassified as available cash. Additionally, restricted cash includes cash balances held in escrow as collateral for certain contractual obligations related to our Heartwood development project as well as cash held in escrow for real estate sales. The following table provides a reconciliation of cash, cash equivalents and restricted cash in the Consolidated Balance Sheets that sum to the total of the same such amounts in the Consolidated Statements of Cash Flows: September 30, December 31, September 30, 2025 2024 2024 Restricted cash, current: Restricted cash deposited with LKE intermediary — $ 19,366 — Total restricted cash, current: — 19,366 — Restricted cash, non-current: Restricted cash held in escrow 677 676 676 Restricted cash deposited with LKE intermediary — — 2,345 Total restricted cash, non-current: 677 676 3,021 Total restricted cash shown in the Consolidated Balance Sheets 677 20,042 3,021 Cash and cash equivalents 919,582 303,065 51,946 Total cash, cash equivalents and restricted cash from continuing operations shown in the Consolidated Statements of Cash Flows $ 920,259 $ 323,107 $ 54,967 19. ASSETS HELD FOR SALE (EXCLUDING DISCONTINUED OPERATIONS) Assets held for sale (excluding discontinued operations) comprise properties not included in inventory that are expected to be sold within 12 months and meet the held-for-sale criteria of ASC 360-10-45-9. The basis of these properties was $ 3.4 million and $ 5.4 million, as of September 30, 2025, and December 31, 2024, respectively. As the basis in these properties was less than the fair value, including costs to sell, no impairment was recognized during the nine months ended September 30, 2025. 47 Table of Contents