RAYONIER INC 10-K

Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA INDEX TO FINANCIAL STATEMENTS Page Management’s Report on Internal Control over Financial Reporting 62 Reports of Independent Registered Public Accounting Firm (PCAOB ID: 42 ) 64 Rayonier Inc.: Consolidated Statements of Income and Comprehensive Income (Loss) for the Three Years Ended December 31, 2025 69 Consolidated Balance Sheets as of December 31, 2025 and 2024 70 Consolidated Statements of Shareholders’ Equity for the Three Years Ended December 31, 2025 71 Consolidated Statements of Cash Flows for the Three Years Ended December 31, 2025 73 Rayonier, L.P.: Consolidated Statements of Income and Comprehensive Income (Loss) for the Three Years Ended December 31, 2025 75 Consolidated Balance Sheets as of December 31, 2025 and 2024 76 Consolidated Statements of Changes in Capital for the Three Years Ended December 31, 2025 77 Consolidated Statements of Cash Flows for the Three Years Ended December 31, 2025 78 Notes to Consolidated Financial Statements 80 Note 1 - Summary of Significant Accounting Policies 80 Note 2 - Discontinued Operations 90 Note 3 - Segment and Geographical Information 92 Note 4 - Revenue 96 Note 5 - Timberland Acquisitions 100 Note 6 - Noncontrolling Interests 100 Note 7 - Earnings Per Share and Per Unit 102 Note 8 - Debt 106 Note 9 - Derivative Financial Instruments and Hedging Activities 108 Note 10 - Fair Value Measurements 110 Note 11 - Commitments 111 Note 12 - Contingencies 111 Note 13 - Environmental and Natural Resource Damage Liabilities 112 Note 14 - Guarantees 113 Note 15 - Higher and Better Use Timberlands and Real Estate Development Investments 114 Note 16 - Inventory 115 Note 17 - Leases 115 Note 18 - Other Operating (Expense) Income, Net 116 Note 19 - Employee Benefit Plans 117 Note 20 - Incentive Stock Plans 120 Note 21 - Income Taxes 123 Note 22 - Restricted Cash 126 Note 23 - Assets Held for Sale (Excluding Discontinued Operations) 127 Note 24 - Other Assets 127 Note 25 - Accumulated Other Comprehensive Income (Loss) 128 61 Table of Contents MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING Rayonier Inc. To Our Shareholders: The management of Rayonier Inc. and its subsidiaries is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934, as amended). Our system of internal controls over financial reporting is designed to provide reasonable assurance to the Company’s management and Board of Directors regarding the preparation and fair presentation of the financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America. Because of the inherent limitations of internal control over financial reporting, misstatements due to error or fraud may not be prevented or detected on a timely basis. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Rayonier Inc.’s management, under the supervision of the Chief Executive Officer and Chief Financial Officer, assessed the effectiveness of our internal control over financial reporting as of December 31, 2025. In making this assessment, we used the framework included in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework). Based on our evaluation under the criteria set forth in Internal Control — Integrated Framework , management concluded that our internal control over financial reporting was effective as of December 31, 2025. Ernst & Young LLP, the independent registered public accounting firm that audited the Company’s consolidated financial statements, has issued an audit report on the Company’s internal control over financial reporting as of December 31, 2025. The report on the Company’s internal control over financial reporting as of December 31, 2025, is on page 64 . RAYONIER INC. By: /s/ MARK MCHUGH Mark McHugh President and Chief Executive Officer (Principal Executive Officer) February 23, 2026 By: /s/ WAYNE WASECHEK Wayne Wasechek Executive Vice President and Chief Financial Officer (Principal Financial Officer) February 23, 2026 By: /s/ APRIL TICE April Tice Senior Vice President and Chief Accounting Officer (Principal Accounting Officer) February 23, 2026 62 Table of Contents MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING Rayonier, L.P. To Our Unitholders: The management of Rayonier, L.P. and its subsidiaries is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934, as amended). Our system of internal controls over financial reporting is designed to provide reasonable assurance to the Operating Partnership’s management and the Rayonier Inc. Board of Directors regarding the preparation and fair presentation of the financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America. Because of the inherent limitations of internal control over financial reporting, misstatements due to error or fraud may not be prevented or detected on a timely basis. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Rayonier, L.P.’s management, under the supervision of the Chief Executive Officer and Chief Financial Officer, assessed the effectiveness of our internal control over financial reporting as of December 31, 2025. In making this assessment, we used the framework included in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework). Based on our evaluation under the criteria set forth in Internal Control — Integrated Framework , management concluded that our internal control over financial reporting was effective as of December 31, 2025. RAYONIER, L.P. By: RAYONIER, INC., its sole general partner By: /s/ MARK MCHUGH Mark McHugh President and Chief Executive Officer (Principal Executive Officer) February 23, 2026 By: /s/ WAYNE WASECHEK Wayne Wasechek Executive Vice President and Chief Financial Officer (Principal Financial Officer) February 23, 2026 By: /s/ APRIL TICE April Tice Senior Vice President and Chief Accounting Officer (Principal Accounting Officer) February 23, 2026 63 Table of Contents REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Shareholders and the Board of Directors of Rayonier Inc. Opinion on Internal Control Over Financial Reporting We have audited Rayonier Inc. and subsidiaries’ internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, Rayonier Inc. and subsidiaries (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on the COSO criteria. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2025 and 2024, the related consolidated statements of income and comprehensive income (loss), shareholders’ equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes and the financial statement schedule listed in the Index at Item 15(a) (collectively referred to as the “consolidated financial statements”) and our report dated February 23, 2026 expressed an unqualified opinion thereon. Basis for Opinion The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Definition and Limitations of Internal Control Over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ Ernst & Young LLP Jacksonville, Florida February 23, 2026 64 Table of Contents REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Shareholders and the Board of Directors of Rayonier Inc. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Rayonier Inc. and subsidiaries (the Company) as of December 31, 2025 and 2024, the related consolidated statements of income and comprehensive income (loss), shareholders' equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes and financial statement schedule listed in the Index at Item 15(a) (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 23, 2026 expressed an unqualified opinion thereon. Basis for Opinion These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. 65 Table of Contents Depletion of Timber Description of the Matter For the year ended December 31, 2025, the Company recognized $102 million in depletion expense from continuing operations and the Timber and Timberlands balance, net of depletion and amortization, was $2,299 million at December 31, 2025. As described in Note 1 to the financial statements, the Company establishes an annual depletion rate for each particular region. Depletion rates are determined by region by dividing merchantable inventory cost by standing merchantable inventory volume, which is estimated annually. The Company charges accumulated costs attributed to merchantable timber to depletion expense (cost of sales) at the time the timber is harvested or when the underlying timberland is sold. Auditing management’s annual depletion rate was complex and subjective due to the estimation uncertainty in determining the standing merchantable inventory volume utilized in the calculation of the depletion rate for each region. In particular, estimating the standing merchantable inventory volume involves statistical sampling and growth modeling using inputs such as growth estimates, harvest information and environmental and operational restrictions. How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s process for establishing the annual depletion rate for each geographic region. For example, we tested controls over management’s review of the estimated standing merchantable inventory volume that was determined for each geographic region. To test the annual depletion rates (including estimated standing merchantable inventory volume), our audit procedures included, among others, evaluating the methodology used and testing the completeness and accuracy of the underlying data used by the Company. We inspected satellite images to test timber existence and assessed the timberland for features that would impact the Company’s ability to harvest its timber. In addition, we evaluated current year changes to harvestability, analyzed the change in depletion as a percentage of sales, utilized published industry growth rates to assess the increase in timber volume and compared actual volume harvested to the volume estimated by the Company. / s / Ernst & Young LLP We have served as the Company’s auditor since 2012. Jacksonville, Florida February 23, 2026 66 Table of Contents Report of Independent Registered Public Accounting Firm To the Unitholders of Rayonier, L.P. and the Board of Directors of Rayonier Inc., the general partner of Rayonier, L.P. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Rayonier, L.P. and subsidiaries (the Operating Partnership) as of December 31, 2025 and 2024, the related consolidated statements of income and comprehensive income (loss), changes in capital and cash flows for each of the three years in the period ended December 31, 2025, and the related notes and financial statement schedule listed in the Index at Item 15(a) (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Operating Partnership at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles. Basis for Opinion These financial statements are the responsibility of the Operating Partnership’s management. Our responsibility is to express an opinion on the Operating Partnership’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Operating Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Operating Partnership is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Operating Partnership’s internal control over financial reporting. Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. 67 Table of Contents Depletion of Timber Description of the Matter For the year ended December 31, 2025, the Operating Partnership recognized $102 million in depletion expense from continuing operations and the Timber and Timberlands balance, net of depletion and amortization, was $2,299 million at December 31, 2025. As described in Note 1 to the financial statements, the Operating Partnership establishes an annual depletion rate for each particular region. Depletion rates are determined by region by dividing merchantable inventory cost by standing merchantable inventory volume, which is estimated annually. The Operating Partnership charges accumulated costs attributed to merchantable timber to depletion expense (cost of sales) at the time the timber is harvested or when the underlying timberland is sold. Auditing management’s annual depletion rate was complex and subjective due to the estimation uncertainty in determining the standing merchantable inventory volume utilized in the calculation of the depletion rate for each region. In particular, estimating the standing merchantable inventory volume involves statistical sampling and growth modeling using inputs such as growth estimates, harvest information and environmental and operational restrictions. How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Operating Partnership’s process for establishing the annual depletion rate for each geographic region. For example, we tested controls over management’s review of the estimated standing merchantable inventory volume that was determined for each geographic region. To test the annual depletion rates (including estimated standing merchantable inventory volume), our audit procedures included, among others, evaluating the methodology used and testing the completeness and accuracy of the underlying data used by the Operating Partnership. We inspected satellite images to test timber existence and assessed the timberland for features that would impact the Operating Partnership’s ability to harvest its timber. In addition, we evaluated current year changes to harvestability, analyzed the change in depletion as a percentage of sales, utilized published industry growth rates to assess the increase in timber volume and compared actual volume harvested to the volume estimated by the Operating Partnership. / s / Ernst & Young LLP We have served as the Operating Partnership’s auditor since 2019. Jacksonville, Florida February 23, 2026 68 RAYONIER INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) For the Years Ended December 31, (Dollars in thousands, except per share data) 2025 2024 2023 SALES ( NOTE 4 ) $ 484,485 $ 987,929 $ 788,373 Costs and Expenses Cost of sales ( 327,205 ) ( 547,582 ) ( 528,916 ) Selling and general expenses ( 66,689 ) ( 74,439 ) ( 74,803 ) Other operating (expense) income, net ( Note 18 ) ( 7,255 ) ( 1,801 ) 42 ( 401,149 ) ( 623,822 ) ( 603,677 ) OPERATING INCOME 83,336 364,107 184,696 Interest expense, net ( 26,351 ) ( 33,756 ) ( 45,144 ) Interest income 24,294 8,212 1,777 Other miscellaneous (expense) income, net ( 6,685 ) 1,275 18,278 INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 74,594 339,838 159,607 Income tax (expense) benefit ( Note 21 ) ( 527 ) 1,022 ( 293 ) INCOME FROM CONTINUING OPERATIONS 74,067 340,860 159,314 DISCONTINUED OPERATIONS, NET ( NOTE 2 ) Income from operations of discontinued operations, net of tax 1,883 28,123 19,181 Gain on sale of discontinued operations 404,463 — — INCOME FROM DISCONTINUED OPERATIONS 406,346 28,123 19,181 NET INCOME 480,413 368,983 178,495 Less: Net income attributable to noncontrolling interests in the Operating Partnership ( 6,225 ) ( 4,834 ) ( 2,905 ) Less: Net loss (income) attributable to noncontrolling interests in consolidated affiliates 192 ( 5,002 ) ( 2,097 ) NET INCOME ATTRIBUTABLE TO RAYONIER INC. 474,380 359,147 173,493 OTHER COMPREHENSIVE INCOME (LOSS), RELATING TO CONTINUING OPERATIONS Cash flow hedges, net of income tax effect of $ 0 , $ 0 and $ 0 ( 21,604 ) ( 6,610 ) ( 16,047 ) Pension and postretirement benefit plans, net of income tax effect of $ 0 , $ 1,222 and $ 0 1 9,846 593 OTHER COMPREHENSIVE INCOME (LOSS), RELATING TO DISCONTINUED OPERATIONS Foreign currency translation adjustment, net of income tax effect of $ 0 , $ 0 and $ 0 20,475 ( 33,100 ) ( 1,516 ) Cash flow hedges, net of income tax effect of $ 3,531 , $ 3,790 and $ 2,368 9,080 ( 9,746 ) 6,090 Deconsolidation of discontinued operations, net of income tax effect of $ 0 , $ 0 and $ 0 29,068 — — Total other comprehensive income (loss) 37,020 ( 39,610 ) ( 10,880 ) COMPREHENSIVE INCOME 517,433 329,373 167,615 Less: Comprehensive income attributable to noncontrolling interests in the Operating Partnership ( 6,691 ) ( 4,356 ) ( 2,639 ) Less: Comprehensive income attributable to noncontrolling interests in consolidated affiliates ( 2,605 ) ( 1,276 ) ( 3,449 ) COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. $ 508,137 $ 323,741 $ 161,527 EARNINGS PER COMMON SHARE ( NOTE 7 ) BASIC EARNINGS PER SHARE ATTRIBUTABLE TO RAYONIER INC. Continuing Operations $ 0.47 $ 2.26 $ 1.06 Discontinued Operations $ 2.59 $ 0.16 $ 0.11 Net Income $ 3.07 $ 2.41 $ 1.17 DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO RAYONIER INC. Continuing Operations $ 0.47 $ 2.24 $ 1.05 Discontinued Operations $ 2.56 $ 0.16 $ 0.11 Net Income $ 3.03 $ 2.39 $ 1.17 See Notes to Consolidated Financial Statements. 69 RAYONIER INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS As of December 31, (Dollars in thousands, except share data) 2025 2024 ASSETS CURRENT ASSETS Cash and cash equivalents $ 842,944 $ 303,065 Restricted cash, current ( Note 22 ) — 19,366 Trade receivables, less allowance for doubtful accounts of $ 209 and $ 401 9,101 8,006 Other receivables 7,171 13,267 Inventory ( Note 16 ) 6,834 30,879 Prepaid logging roads 6,662 6,465 Prepaid expenses 3,211 3,101 Assets held for sale (excluding discontinued operations) ( Note 23 ) 5,429 5,371 Other current assets 2,403 53 Current assets of discontinued operations ( Note 2 ) — 47,320 Total current assets 883,755 436,893 TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION 2,299,484 2,384,345 HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS ( NOTE 15 ) 126,090 109,610 PROPERTY, PLANT AND EQUIPMENT Land 5,581 5,581 Buildings 24,493 24,493 Machinery and equipment 6,977 4,876 Construction in progress 2,386 779 Total property, plant and equipment, gross 39,437 35,729 Less—accumulated depreciation ( 20,909 ) ( 18,297 ) Total property, plant and equipment, net 18,528 17,432 RESTRICTED CASH, NON-CURRENT ( NOTE 22 ) 495 676 RIGHT-OF-USE ASSETS ( NOTE 17 ) 16,286 18,588 OTHER ASSETS ( NOTE 24 ) 60,015 78,276 NON-CURRENT ASSETS OF DISCONTINUED OPERATIONS ( NOTE 2 ) — 428,599 TOTAL ASSETS $ 3,404,653 $ 3,474,419 LIABILITIES, NONCONTROLLING INTERESTS IN THE OPERATING PARTNERSHIP AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable $ 12,775 $ 16,914 Current maturities of long-term debt, net ( Note 8 ) 199,982 — Accrued taxes 5,070 1,840 Accrued payroll and benefits 15,740 15,317 Accrued interest 4,517 5,228 Dividend and distribution payable — 271,815 Deferred revenue 19,260 20,902 Other current liabilities 13,937 9,359 Current liabilities of discontinued operations ( Note 2 ) — 47,335 Total current liabilities 271,281 388,710 LONG-TERM DEBT, NET ( NOTE 8 ) 845,335 1,044,410 LONG-TERM LEASE LIABILITY ( NOTE 17 ) 13,669 16,260 LONG-TERM DEFERRED REVENUE 9,600 10,697 OTHER NON-CURRENT LIABILITIES 14,570 11,125 NON-CURRENT LIABILITIES OF DISCONTINUED OPERATIONS ( NOTE 2 ) — 170,841 COMMITMENTS AND CONTINGENCIES ( NOTES 11 and 12 ) NONCONTROLLING INTERESTS IN THE OPERATING PARTNERSHIP ( NOTE 6 ) 40,463 51,843 SHAREHOLDERS’ EQUITY Common Shares, 480,000,000 shares authorized, 161,425,616 and 148,536,643 shares issued and outstanding 1,904,376 1,522,487 Retained earnings 280,873 257,254 Accumulated other comprehensive income (loss) ( Note 25 ) 24,486 ( 10,429 ) TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY 2,209,735 1,769,312 Noncontrolling interests in consolidated affiliates ( Note 6 ) — 11,221 TOTAL SHAREHOLDERS’ EQUITY 2,209,735 1,780,533 TOTAL LIABILITIES, NONCONTROLLING INTERESTS IN THE OPERATING PARTNERSHIP AND SHAREHOLDERS’ EQUITY $ 3,404,653 $ 3,474,419 See Notes to Consolidated Financial Statements. 70 RAYONIER INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (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, December 31, 2022 147,282,631 $ 1,462,945 $ 366,637 $ 35,813 $ 15,317 $ 1,880,712 Income (loss) from continuing operations — — 159,361 — ( 47 ) 159,314 Income from discontinued operations — — 17,037 — 2,144 19,181 Net income attributable to noncontrolling interests in the Operating Partnership — — ( 2,905 ) — — ( 2,905 ) Dividends ($ 1.34 per share) (a)(b) — — ( 199,465 ) — — ( 199,465 ) Issuance of common shares under the “at-the-market” equity offering, net of commissions and offering costs 400 ( 81 ) — — — ( 81 ) Issuance of common shares under incentive stock plans 380,080 75 — — — 75 Stock-based incentive compensation — 14,002 — — — 14,002 Repurchase of common shares to pay withholding taxes on vested incentive stock awards ( 128,923 ) ( 4,217 ) — — — ( 4,217 ) Adjustment of noncontrolling interests in the Operating Partnership — — ( 2,421 ) — — ( 2,421 ) Conversion of units into common shares 764,929 24,917 — — — 24,917 Pension and postretirement benefit plans — — — 593 — 593 Foreign currency translation adjustment — — — ( 1,466 ) ( 50 ) ( 1,516 ) Cash flow hedges — — — ( 11,358 ) 1,401 ( 9,957 ) Allocation of other comprehensive loss to noncontrolling interests in the Operating Partnership — — — 1,069 — 1,069 Distributions to noncontrolling interests in consolidated affiliates — — — — ( 1,699 ) ( 1,699 ) Balance, December 31, 2023 148,299,117 $ 1,497,641 $ 338,244 $ 24,651 $ 17,066 $ 1,877,602 Income from continuing operations — — 340,350 — 510 340,860 Income from discontinued operations — — 23,631 — 4,492 28,123 Net income attributable to noncontrolling interests in the Operating Partnership — — ( 4,834 ) — — ( 4,834 ) Dividends ($ 2.94 per share) (a)(b) — — ( 438,600 ) — — ( 438,600 ) Issuance of common shares under incentive stock plans 399,929 — — — — — Stock-based incentive compensation — 14,232 — — — 14,232 Repurchase of common shares to pay withholding taxes on vested incentive stock awards ( 131,965 ) ( 4,179 ) — — — ( 4,179 ) Repurchase of common shares made under repurchase program ( 488,017 ) — ( 14,687 ) — — ( 14,687 ) Adjustment of noncontrolling interests in the Operating Partnership — — 13,150 — — 13,150 Conversion of units into common shares 457,579 14,793 — — — 14,793 Pension and postretirement benefit plans — — — 9,846 — 9,846 Foreign currency translation adjustment — — — ( 31,616 ) ( 1,484 ) ( 33,100 ) Cash flow hedges — — — ( 14,113 ) ( 2,243 ) ( 16,356 ) Allocation of other comprehensive loss to noncontrolling interests in the Operating Partnership — — — 803 — 803 Distributions to noncontrolling interests in consolidated affiliates — — — — ( 7,120 ) ( 7,120 ) Balance, December 31, 2024 148,536,643 $ 1,522,487 $ 257,254 ($ 10,429 ) $ 11,221 $ 1,780,533 71 RAYONIER INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (CONTINUED) (Thousands of dollars, except share data) Common Shares Retained Earnings Accumulated Other Comprehensive Income (Loss) Noncontrolling Interests in Consolidated Affiliates Shareholders’ Equity Shares Amount Balance, December 31, 2024 148,536,643 $ 1,522,487 $ 257,254 ($ 10,429 ) $ 11,221 $ 1,780,533 Income from continuing operations — — 74,067 — — 74,067 Income (loss) from discontinued operations — — 406,538 — ( 192 ) 406,346 Net income attributable to noncontrolling interests in the Operating Partnership — — ( 6,225 ) — — ( 6,225 ) Deconsolidation of discontinued operations — — — 29,068 ( 10,744 ) 18,324 Dividends ($ 2.49 per share) (a)(b) — — ( 385,399 ) — — ( 385,399 ) Issuance of common shares from special dividends (c) 15,071,426 361,983 — — — 361,983 Issuance of common shares under incentive stock plans 348,412 — — — — — Stock-based incentive compensation — 11,004 — — — 11,004 Repurchase of common shares to pay withholding taxes on vested incentive stock awards ( 109,467 ) ( 2,898 ) — — — ( 2,898 ) Repurchase of common shares made under repurchase program ( 2,904,276 ) — ( 70,547 ) — — ( 70,547 ) Adjustment of noncontrolling interests in the Operating Partnership — — 5,185 — — 5,185 Conversion of units into common shares 482,878 11,800 — — — 11,800 Pension and postretirement benefit plans — — — 1 — 1 Foreign currency translation adjustment — — — 19,766 709 20,475 Cash flow hedges — — — ( 14,612 ) 2,088 ( 12,524 ) Allocation of other comprehensive loss to noncontrolling interests in the Operating Partnership — — — 692 — 692 Distributions to noncontrolling interests in consolidated affiliates — — — — ( 3,082 ) ( 3,082 ) Balance, December 31, 2025 161,425,616 $ 1,904,376 $ 280,873 $ 24,486 — $ 2,209,735 (a) For information regarding distributions to noncontrolling interests in the Operating Partnership, see the Rayonier Inc. Consolidated Statements of Cash Flows and Note 6 — Noncontrolling Interests . (b) The year ended December 31, 2025 includes an additional special dividend of $ 1.40 per common share, consisting of a combination of cash and the Company’s common shares. The dividend was paid December 12, 2025 to shareholders of record on October 24, 2025. The year ended December 31, 2024 includes an additional special dividend of $ 1.80 per common share, consisting of a combination of cash and the Company’s common shares. The dividend was paid January 30, 2025 to shareholders of record on December 12, 2024. The year ended December 31, 2023 includes an additional special cash dividend of $ 0.20 per common share. The dividend was paid January 12, 2024 to shareholders of record on December 29, 2023. (c) Reflects the issuance of common shares related to the Company’s special dividends of $ 1.40 and $ 1.80 per common share. See Notes to Consolidated Financial Statements. 72 RAYONIER INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS For the Years Ended December 31 , (Dollars in thousands) 2025 2024 2023 OPERATING ACTIVITIES Net income $ 480,413 $ 368,983 $ 178,495 Adjustments to reconcile net income to cash provided by operating activities: Depreciation, depletion and amortization from continuing operations 106,454 113,854 136,565 Depreciation, depletion and amortization from discontinued operations 9,081 26,395 21,666 Non-cash cost of land and improved development from continuing operations 43,714 41,368 29,768 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 11,004 14,232 14,002 Deferred income taxes ( 2,351 ) 2,639 278 Asset impairment charge 7,048 — — Pension settlement charge — 5,979 2,036 Amortization of (gains) losses from pension and postretirement plans ( 6 ) 1 6 Timber write-offs resulting from casualty events — — 2,302 Gain on sale of large disposition of timberlands — ( 291,078 ) ( 105,078 ) Other 18,815 ( 601 ) 13,169 Changes in operating assets and liabilities: Receivables 6,601 ( 2,830 ) 4,404 Inventories 235 2,006 513 Accounts payable ( 1,985 ) 571 1,505 All other operating activities ( 17,899 ) ( 22,968 ) ( 1,256 ) CASH PROVIDED BY OPERATING ACTIVITIES 256,661 261,592 298,375 INVESTING ACTIVITIES Capital expenditures from continuing operations ( 50,049 ) ( 62,094 ) ( 64,784 ) Capital expenditures from discontinued operations ( 7,098 ) ( 17,686 ) ( 16,663 ) Real estate development investments ( 22,440 ) ( 25,818 ) ( 23,078 ) Net proceeds on sale of discontinued operations (a) 688,300 — — Net proceeds on sale of property, plant and equipment 4,473 13 37 Net proceeds from large disposition of timberlands — 484,787 239,898 Purchase of timberlands — ( 22,753 ) ( 14,062 ) Other 1,868 ( 2,436 ) 2,739 CASH PROVIDED BY INVESTING ACTIVITIES 615,054 354,013 124,087 FINANCING ACTIVITIES Dividends paid on common shares (b) ( 292,055 ) ( 200,566 ) ( 169,990 ) Distributions to noncontrolling interests in the Operating Partnership (c) ( 3,505 ) ( 2,808 ) ( 2,962 ) Proceeds from the issuance of common shares under incentive stock plan — — 75 Proceeds from the issuance of common shares under the “at-the-market” (ATM) equity offering program, net of commissions and offering costs — — ( 81 ) Repurchase of common shares to pay withholding taxes on vested incentive stock awards ( 2,898 ) ( 4,179 ) ( 4,217 ) Repurchase of common shares made under repurchase program ( 70,547 ) ( 14,687 ) — Distributions to noncontrolling interests in consolidated affiliates ( 3,082 ) ( 7,120 ) ( 1,699 ) Debt issuance costs ( 779 ) — — Repayment of debt — ( 250,000 ) ( 150,000 ) CASH USED FOR FINANCING ACTIVITIES ( 372,866 ) ( 479,360 ) ( 328,874 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH 1,390 ( 1,419 ) ( 621 ) CASH, CASH EQUIVALENTS AND RESTRICTED CASH Change in cash, cash equivalents and restricted cash 500,239 134,826 92,967 Balance from continuing operations, beginning of year 323,107 180,362 104,825 Balance from discontinued operations, beginning of year 20,093 28,012 10,582 Total Balance, beginning of year $ 343,200 $ 208,374 $ 115,407 Balance from continuing operations, end of year 843,439 323,107 180,362 Balance from discontinued operations, end of year — 20,093 28,012 Total Balance, end of year $ 843,439 $ 343,200 $ 208,374 (a) The year ended December 31, 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. 73 RAYONIER INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) For the Years Ended December 31 , (Thousands of dollars) (b) The year ended December 31, 2025 includes an additional dividend of $ 1.40 per common share, consisting of a combination of cash and the Company’s common shares. The cash portion of $ 54.6 million was paid on December 12, 2025, to shareholders of record on October 24, 2025. The year ended December 31, 2025 also 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 year ended December 31, 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 year ended December 31, 2025 includes an additional distribution of $ 1.40 per Redeemable Operating Partnership Unit, consisting of a combination of cash and the Company’s Redeemable Operating Partnership Units. The cash portion of $ 0.6 million was paid on December 12, 2025, to holders of record on October 24, 2025. The year ended December 31, 2025 also 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 year ended December 31, 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. 2025 2024 2023 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Cash paid during the year: Interest (a) $ 24,810 $ 38,605 $ 48,742 Income taxes (b) 4,054 5,877 4,816 Non-cash investing and financing activity: Capital assets purchased on account $ 5,436 $ 7,657 $ 7,490 Issuance of common shares from special dividends 361,983 — — Issuance of Redeemable Operating Partnership Units from special distributions 4,366 — — (a) Interest paid is presented net of patronage payments received of $ 7.9 million , $ 8.3 million and $ 6.2 million for the years ended December 31, 2025, 2024 and 2023, respectively. For additional information on patronage payments, see Note 8 — Debt . Interest paid for the years ended December 31, 2025, 2024 and 2023 includes $ 1.5 million, $ 3.4 million and $ 3.2 million, respectively, from discontinued operations. (b) Income taxes paid for the years ended December 31, 2025, 2024 and 2023 includes $ 3.8 million, $ 5.6 million, and $ 4.6 million, respectively, from discontinued operations. See Notes to Consolidated Financial Statements. 74 RAYONIER, L.P. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) For the Years Ended December 31, (Dollars in thousands, except per unit data) 2025 2024 2023 SALES ( NOTE 4 ) $ 484,485 $ 987,929 $ 788,373 Costs and Expenses Cost of sales ( 327,205 ) ( 547,582 ) ( 528,916 ) Selling and general expenses ( 66,689 ) ( 74,439 ) ( 74,803 ) Other operating (expense) income, net ( Note 18 ) ( 7,255 ) ( 1,801 ) 42 ( 401,149 ) ( 623,822 ) ( 603,677 ) OPERATING INCOME 83,336 364,107 184,696 Interest expense, net ( 26,351 ) ( 33,756 ) ( 45,144 ) Interest income 24,294 8,212 1,777 Other miscellaneous (expense) income, net ( 6,685 ) 1,275 18,278 INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 74,594 339,838 159,607 Income tax (expense) benefit ( Note 21 ) ( 527 ) 1,022 ( 293 ) INCOME FROM CONTINUING OPERATIONS 74,067 340,860 159,314 DISCONTINUED OPERATIONS, NET ( NOTE 2 ) Income from operations of discontinued operations, net of tax 1,883 28,123 19,181 Gain on sale of discontinued operations 404,463 — — INCOME FROM DISCONTINUED OPERATIONS 406,346 28,123 19,181 NET INCOME 480,413 368,983 178,495 Less: Net loss (income) attributable to noncontrolling interests in consolidated affiliates 192 ( 5,002 ) ( 2,097 ) NET INCOME ATTRIBUTABLE TO RAYONIER, L.P. UNITHOLDERS 480,605 363,981 176,398 NET INCOME ATTRIBUTABLE TO UNITHOLDERS ATTRIBUTABLE TO: Limited Partners 475,799 360,341 174,634 General Partners 4,806 3,640 1,764 Net income attributable to unitholders 480,605 363,981 176,398 OTHER COMPREHENSIVE INCOME (LOSS), RELATING TO CONTINUING OPERATIONS Cash flow hedges, net of income tax effect of $ 0 , $ 0 and $ 0 ( 21,604 ) ( 6,610 ) ( 16,047 ) Pension and postretirement benefit plans, net of income tax effect of $ 0 , $ 1,222 and $ 0 1 9,846 593 OTHER COMPREHENSIVE INCOME (LOSS), RELATING TO DISCONTINUED OPERATIONS Foreign currency translation adjustment, net of income tax effect of $ 0 , $ 0 and $ 0 20,475 ( 33,100 ) ( 1,516 ) Cash flow hedges, net of income tax effect of $ 3,531 , $ 3,790 and $ 2,368 9,080 ( 9,746 ) 6,090 Deconsolidation of discontinued operations, net of income tax effect of $ 0 , $ 0 and $ 0 29,068 — — Total other comprehensive income (loss) 37,020 ( 39,610 ) ( 10,880 ) COMPREHENSIVE INCOME 517,433 329,373 167,615 Less: Comprehensive income attributable to noncontrolling interests in consolidated affiliates ( 2,605 ) ( 1,276 ) ( 3,449 ) COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER, L.P. UNITHOLDERS $ 514,828 $ 328,097 $ 164,166 EARNINGS PER UNIT ( NOTE 7 ) BASIC EARNINGS PER UNIT ATTRIBUTABLE TO RAYONIER LP. Continuing Operations $ 0.47 $ 2.26 $ 1.06 Discontinued Operations $ 2.59 $ 0.16 $ 0.11 Net Income $ 3.07 $ 2.41 $ 1.17 DILUTED EARNINGS PER UNIT ATTRIBUTABLE TO RAYONIER LP. Continuing Operations $ 0.47 $ 2.24 $ 1.05 Discontinued Operations $ 2.56 $ 0.16 $ 0.11 Net Income $ 3.03 $ 2.39 $ 1.17 See Notes to Consolidated Financial Statements. 75 RAYONIER, L.P. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS As of December 31, (Dollars in thousands, except unit data) 2025 2024 ASSETS CURRENT ASSETS Cash and cash equivalents $ 842,944 $ 303,065 Restricted cash, current ( Note 22 ) — 19,366 Trade receivables, less allowance for doubtful accounts of $ 209 and $ 401 9,101 8,006 Other receivables 7,171 13,267 Inventory ( Note 16 ) 6,834 30,879 Prepaid logging roads 6,662 6,465 Prepaid expenses 3,211 3,101 Assets held for sale (excluding discontinued operations) ( Note 23 ) 5,429 5,371 Other current assets 2,403 53 Current assets of discontinued operations ( Note 2 ) — 47,320 Total current assets 883,755 436,893 TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION 2,299,484 2,384,345 HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS ( NOTE 15 ) 126,090 109,610 PROPERTY, PLANT AND EQUIPMENT Land 5,581 5,581 Buildings 24,493 24,493 Machinery and equipment 6,977 4,876 Construction in progress 2,386 779 Total property, plant and equipment, gross 39,437 35,729 Less — accumulated depreciation ( 20,909 ) ( 18,297 ) Total property, plant and equipment, net 18,528 17,432 RESTRICTED CASH, NON-CURRENT ( NOTE 22 ) 495 676 RIGHT-OF-USE ASSETS ( NOTE 17 ) 16,286 18,588 OTHER ASSETS ( NOTE 24 ) 60,015 78,276 NON-CURRENT ASSETS OF DISCONTINUED OPERATIONS ( NOTE 2 ) — 428,599 TOTAL ASSETS $ 3,404,653 $ 3,474,419 LIABILITIES, REDEEMABLE OPERATING PARTNERSHIP UNITS AND CAPITAL CURRENT LIABILITIES Accounts payable $ 12,775 $ 16,914 Current maturities of long-term debt, net ( Note 8 ) 199,982 — Accrued taxes 5,070 1,840 Accrued payroll and benefits 15,740 15,317 Accrued interest 4,517 5,228 Distribution payable — 271,815 Deferred revenue 19,260 20,902 Other current liabilities 13,937 9,359 Current liabilities of discontinued operations ( Note 2 ) — 47,335 Total current liabilities 271,281 388,710 LONG-TERM DEBT, NET ( NOTE 8 ) 845,335 1,044,410 LONG-TERM LEASE LIABILITY ( NOTE 17 ) 13,669 16,260 LONG-TERM DEFERRED REVENUE 9,600 10,697 OTHER NON-CURRENT LIABILITIES 14,570 11,125 NON-CURRENT LIABILITIES OF DISCONTINUED OPERATIONS ( NOTE 2 ) — 170,841 COMMITMENTS AND CONTINGENCIES ( NOTES 11 and 12 ) REDEEMABLE OPERATING PARTNERSHIP UNITS ( NOTE 6 ) 1,682,894 and 1,986,319 Units outstanding, respectively 40,463 51,843 CAPITAL General partners’ capital 21,834 17,772 Limited partners’ capital 2,161,543 1,759,405 Accumulated other comprehensive income (loss) ( Note 25 ) 26,358 ( 7,865 ) TOTAL CONTROLLING INTEREST CAPITAL 2,209,735 1,769,312 Noncontrolling interests in consolidated affiliates ( Note 6 ) — 11,221 TOTAL CAPITAL 2,209,735 1,780,533 TOTAL LIABILITIES, REDEEMABLE OPERATING PARTNERSHIP UNITS AND CAPITAL $ 3,404,653 $ 3,474,419 See Notes to Consolidated Financial Statements. 76 RAYONIER, L.P. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN CAPITAL (Dollars in thousands, except unit data) Units Accumulated Other Comprehensive Income (Loss) Noncontrolling Interests in Consolidated Affiliates Total Capital General Partners’ Capital Limited Partners’ Capital Balance, December 31, 2022 $ 18,251 $ 1,806,895 $ 40,249 $ 15,317 $ 1,880,712 Income (loss) from continuing operations 1,593 157,768 — ( 47 ) 159,314 Income from discontinued operations 171 16,866 — 2,144 19,181 Distributions on units ($ 1.34 per unit) (a) ( 2,029 ) ( 200,887 ) — — ( 202,916 ) Issuance of units under the “at-the-market” equity offering, net of commissions and offering costs ( 1 ) ( 80 ) — — ( 81 ) Issuance of units under incentive stock plans 1 74 — — 75 Stock-based incentive compensation 140 13,862 — — 14,002 Repurchase of units to pay withholding taxes on vested incentive stock awards ( 42 ) ( 4,175 ) — — ( 4,217 ) Adjustment of Redeemable Operating Partnership Units ( 8 ) ( 798 ) — — ( 806 ) Conversion of units into common shares 249 24,668 — — 24,917 Pension and postretirement benefit plans — — 593 — 593 Foreign currency translation adjustment — — ( 1,466 ) ( 50 ) ( 1,516 ) Cash flow hedges — — ( 11,358 ) 1,401 ( 9,957 ) Distributions to noncontrolling interests in consolidated affiliates — — — ( 1,699 ) ( 1,699 ) Balance, December 31, 2023 $ 18,325 $ 1,814,193 $ 28,018 $ 17,066 $ 1,877,602 Income from continuing operations 3,404 336,946 — 510 340,860 Income from discontinued operations 236 23,395 — 4,492 28,123 Distributions on units ($ 2.94 per unit) (a) ( 4,445 ) ( 440,050 ) — — ( 444,495 ) Stock-based incentive compensation 143 14,089 — — 14,232 Repurchase of units to pay withholding taxes on vested incentive stock awards ( 42 ) ( 4,137 ) — — ( 4,179 ) Repurchase of units made under repurchase program ( 147 ) ( 14,540 ) — — ( 14,687 ) Adjustment of Redeemable Operating Partnership Units 150 14,864 — — 15,014 Conversion of units into common shares 148 14,645 — — 14,793 Pension and postretirement benefit plans — — 9,846 — 9,846 Foreign currency translation adjustment — — ( 31,616 ) ( 1,484 ) ( 33,100 ) Cash flow hedges — — ( 14,113 ) ( 2,243 ) ( 16,356 ) Distributions to noncontrolling interests in consolidated affiliates — — — ( 7,120 ) ( 7,120 ) Balance, December 31, 2024 $ 17,772 $ 1,759,405 ($ 7,865 ) $ 11,221 $ 1,780,533 Income from continuing operations 741 73,326 — — 74,067 Income (loss) from discontinued operations 4,065 402,473 — ( 192 ) 406,346 Deconsolidation of discontinued operations — — 29,068 ( 10,744 ) 18,324 Distributions on units ($ 2.49 per unit) (a) ( 3,898 ) ( 385,796 ) — — ( 389,694 ) Issuance of units from special distributions (b) 3,664 362,685 — — 366,349 Stock-based incentive compensation 110 10,894 — — 11,004 Repurchase of units to pay withholding taxes on vested incentive stock awards ( 29 ) ( 2,869 ) — — ( 2,898 ) Repurchase of units made under repurchase program ( 705 ) ( 69,842 ) — — ( 70,547 ) Adjustment of Redeemable Operating Partnership Units ( 4 ) ( 415 ) — — ( 419 ) Conversion of units into common shares 118 11,682 — — 11,800 Pension and postretirement benefit plans — — 1 — 1 Foreign currency translation adjustment — — 19,766 709 20,475 Cash flow hedges — — ( 14,612 ) 2,088 ( 12,524 ) Distributions to noncontrolling interests in consolidated affiliates — — — ( 3,082 ) ( 3,082 ) Balance, December 31, 2025 $ 21,834 $ 2,161,543 $ 26,358 — $ 2,209,735 (a) The year ended December 31, 2025 includes an additional special distribution of $ 1.40 per unit, consisting of a combination of cash and units. The distribution was paid December 12, 2025, to holders of record on October 24, 2025. The year ended December 31, 2024 includes an additional special distribution of $ 1.80 per unit, consisting of a combination of cash and units. The distribution was paid January 30, 2025, to holders of record on December 12, 2024. The year ended December 31, 2023 includes an additional special cash distribution of $ 0.20 per unit. The cash distribution was paid January 12, 2024, to holders of record on December 29, 2023. (b) Reflects the issuance of units related to the Company’s special distributions of $ 1.40 and $ 1.80 per unit. See Notes to Consolidated Financial Statements. 77 RAYONIER, L.P. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS For the Years Ended December 31, (Dollars in thousands) 2025 2024 2023 OPERATING ACTIVITIES Net income $ 480,413 $ 368,983 $ 178,495 Adjustments to reconcile net income to cash provided by operating activities: Depreciation, depletion and amortization from continuing operations 106,454 113,854 136,565 Depreciation, depletion and amortization from discontinued operations 9,081 26,395 21,666 Non-cash cost of land and improved development from continuing operations 43,714 41,368 29,768 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 11,004 14,232 14,002 Deferred income taxes ( 2,351 ) 2,639 278 Asset impairment charge 7,048 — — Pension settlement charge — 5,979 2,036 Amortization of (gains) losses from pension and postretirement plans ( 6 ) 1 6 Timber write-offs resulting from casualty events — — 2,302 Gain on sale of large disposition of timberlands — ( 291,078 ) ( 105,078 ) Other 18,815 ( 601 ) 13,169 Changes in operating assets and liabilities: Receivables 6,601 ( 2,830 ) 4,404 Inventories 235 2,006 513 Accounts payable ( 1,985 ) 571 1,505 All other operating activities ( 17,899 ) ( 22,968 ) ( 1,256 ) CASH PROVIDED BY OPERATING ACTIVITIES 256,661 261,592 298,375 INVESTING ACTIVITIES Capital expenditures from continuing operations ( 50,049 ) ( 62,094 ) ( 64,784 ) Capital expenditures from discontinued operations ( 7,098 ) ( 17,686 ) ( 16,663 ) Real estate development investments ( 22,440 ) ( 25,818 ) ( 23,078 ) Net proceeds on sale of discontinued operations (a) 688,300 — — Net proceeds on sale of property, plant and equipment 4,473 13 37 Net proceeds from large disposition of timberlands — 484,787 239,898 Purchase of timberlands — ( 22,753 ) ( 14,062 ) Other 1,868 ( 2,436 ) 2,739 CASH PROVIDED BY INVESTING ACTIVITIES 615,054 354,013 124,087 FINANCING ACTIVITIES Distributions on units (b) ( 295,560 ) ( 203,374 ) ( 172,952 ) Proceeds from the issuance of units under incentive stock plan — — 75 Proceeds from the issuance of units under the “at-the-market” (ATM) equity offering program, net of commissions and offering costs — — ( 81 ) Repurchase of units to pay withholding taxes on vested incentive stock awards ( 2,898 ) ( 4,179 ) ( 4,217 ) Repurchase of units made under repurchase program ( 70,547 ) ( 14,687 ) — Distributions to noncontrolling interests in consolidated affiliates ( 3,082 ) ( 7,120 ) ( 1,699 ) Debt issuance costs ( 779 ) — — Repayment of debt — ( 250,000 ) ( 150,000 ) CASH USED FOR FINANCING ACTIVITIES ( 372,866 ) ( 479,360 ) ( 328,874 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH 1,390 ( 1,419 ) ( 621 ) CASH, CASH EQUIVALENTS AND RESTRICTED CASH Change in cash, cash equivalents and restricted cash 500,239 134,826 92,967 Balance from continuing operations, beginning of year 323,107 180,362 104,825 Balance from discontinued operations, beginning of year 20,093 28,012 10,582 Total Balance, beginning of year $ 343,200 $ 208,374 $ 115,407 Balance from continuing operations, end of year 843,439 323,107 180,362 Balance from discontinued operations, end of year — 20,093 28,012 Total Balance, end of year $ 843,439 $ 343,200 $ 208,374 (a) The year ended December 31, 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 year ended December 31, 2025 includes an additional distribution of $ 1.40 per unit, consisting of a combination of cash and units. The cash portion of $ 55.2 million was paid on December 12, 2025, to holders of record on October 24, 2025. The year ended December 31, 2025 also 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 year ended December 31, 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. 78 RAYONIER, L.P. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) For the Years Ended December 31, (Thousands of dollars) 2025 2024 2023 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Cash paid during the year: Interest (a) $ 24,810 $ 38,605 $ 48,742 Income taxes (b) 4,054 5,877 4,816 Non-cash investing and financing activity: Capital assets purchased on account $ 5,436 $ 7,657 $ 7,490 Issuance of units from special distributions 366,349 — — (a) Interest paid is presented net of patronage payments received of $ 7.9 million, $ 8.3 million and $ 6.2 million for the years ended December 31, 2025, 2024 and 2023, respectively. For additional information on patronage payments, see Note 8 — Debt . Interest paid for the years ended December 31, 2025, 2024 and 2023 includes $ 1.5 million, $ 3.4 million and $ 3.2 million, respectively, from discontinued operations. (b) Income taxes paid for the years ended December 31, 2025, 2024 and 2023 includes $ 3.8 million, $ 5.6 million, and $ 4.6 million, respectively, from discontinued operations. See Notes to Consolidated Financial Statements. 79 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollar amounts in thousands unless otherwise stated) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Rayonier Inc.'s Consolidated Financial Statements include the Operating Partnership, wholly-owned subsidiaries and entities in which the Company has a controlling interest. Rayonier, L.P.'s Consolidated Financial Statements include wholly-owned subsidiaries and entities in which the Operating Partnership has a controlling interest. For additional information regarding our consolidated entities with a noncontrolling interest component, see Note 6 — Noncontrolling Interests . All intercompany balances and transactions are eliminated. As of December 31, 2025, the Company owned a 99.0 % interest in the Operating Partnership, with the remaining 1.0 % interest owned by the 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 m anagement of the Operating Partnership. On March 9, 2025, we entered into a purchase and sale agreement with Taurus Forest Holdings Limited, pursuant to which we agreed to sell our entire 77 % interest in our New Zealand operations. On June 30, 2025, we completed the sale of our New Zealand operations for a purchase price of $ 710 million. We analyzed quantitative and qualitative factors relevant to the New Zealand operations disposal group and determined that the criteria for held for sale and discontinued operations were met. Accordingly, the operating 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. Assets and liabilities of this disposal group are presented separately on the consolidated balance sheet as assets and liabilities of discontinued operations as of December 31, 2024. Our consolidated cash flows include cash flows from discontinued operations for all periods presented. Unless otherwise indicated, these financial statement disclosures reflect only our continuing operations. See Note 2 — Discontinued Operations for additional information regarding the sale of the New Zealand joint venture. Effective with the third quarter of 2025, we realigned our reportable segments to reflect changes in our internal management reporting structure. As a result, 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 for all periods presented. See Note 3 — Segment and Geographical Information for further discussion of our reportable segments. USE OF ESTIMATES The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and to disclose contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. There are risks inherent in estimating and therefore actual results could differ from those estimates. CASH AND CASH EQUIVALENTS Cash and cash equivalents consist of cash on hand and other highly liquid investments with original maturities of three months or less. ACCOUNTS RECEIVABLE Accounts receivable are primarily amounts due to us for the sale of timber and are presented net of an allowance for doubtful accounts. 80 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollar amounts in thousands unless otherwise stated) INVENTORY Higher and better use (“HBU”) real estate properties expected to be sold within one year are included in inventory at the lower of cost or net realizable value. HBU properties expected to be sold after one year are included in the non-current balance sheet line “Higher and Better Use Timberlands and Real Estate Development Investments.” See below for additional information. Inventory also includes logs available for sale within our Southern Timber and Pacific Northwest Timber segments. Log inventory is recorded at the lower of cost or net realizable value and recognized in cost of sales when sold to third-party buyers. See Note 16 — Inventory for additional information. NOTES RECEIVABLE Notes receivable consists of amounts due to the Company for the sale of real estate. See Note 24 — Other Assets for additional information. PREPAID LOGGING ROADS In the Pacific Northwest, costs for roads constructed to access specific tracts scheduled for harvest within the next 24 months to 60 months are recorded as prepaid logging roads. These costs are charged to expense as timber is harvested using an amortization rate determined annually by dividing the total road cost by the estimated volume (in tons) of timber to be accessed. The prepaid balance is classified as current or non-current based on the anticipated harvest schedule. See Note 24 — Other Assets for additional information regarding the non-current portion of these assets. PATRONAGE DIVIDENDS Pursuant to the Farm Credit Act, borrowers within the Farm Credit System are required to purchase equity in Farm Credit lenders. This equity primarily consists of Class A common stock in CoBank at a $ 100 par value. Equity purchases continue annually until the balance reaches 8 % of our 10 -year historical average loan balance at CoBank. While an initial minimal purchase was made in cash, subsequent equity is acquired through annual patronage dividends, which are typically comprised of approximately 90 % cash and 10 % equity. This stock has no cash value until retired; retirement generally occurs over a 10 -year period following full loan payoff. Estimated cash and equity dividends are recognized as an offset to interest expense in the period earned. These estimates are derived by applying the weighted average debt balance for each lender to a historical dividend rate. Actual results or changes in assumption may result in adjustment to these estimates. See Note 8 — Debt and Note 24 — Other Assets for additional information. DEFERRED FINANCING COSTS Deferred financing costs related to revolving debt are capitalized and amortized to interest expense over the term of the revolving debt using a method that approximates the effective interest method. See Note 24 — Other Assets for additional information on deferred financing costs related to revolving debt. See Note 8 — Debt for additional information on deferred financing costs related to term debt. CAPITALIZED SOFTWARE COSTS Software costs are capitalized and amortized over their estimated useful lives, not to exceed five years , using the straight-line method. See Note 24 — Other Assets for additional information. TIMBER AND TIMBERLANDS Timber is stated at the lower of cost or net realizable value. Costs relating to acquiring, planting and growing timber—including real estate taxes, site preparation, and direct support costs for facilities, vehicles and supplies—are capitalized. A portion of timberland lease payments is capitalized based on the proportion of acres with merchantable timber volume remaining to be harvested under the lease term; the residual portion of the lease payments is expensed as incurred. Payroll costs are capitalized for time spent on timber-growing activities, while interest and other intangible costs are not capitalized. 81 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollar amounts in thousands unless otherwise stated) An annual depletion rate is established for each specific region by dividing merchantable inventory cost by standing merchantable inventory volume, which is estimated annually. We charge accumulated costs attributed to merchantable timber to depletion expense (cost of sales) at the time the timber is harvested or when the underlying timberland is sold. Upon the acquisition of timberland, we make a determination on whether to combine the newly acquired merchantable timber with an existing depletion pool or to create a new, separate pool. This determination is based on the geographic location of the new timber, the customers/markets served, and the species mix. If the acquisition is similar to an existing depletion pool, the cost of the acquired timber is combined and a new depletion rate is calculated. This determination and depletion rate adjustment normally occurs in the quarter following the acquisition. HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS HBU timberland is recorded at the lower of cost or net realizable value. These properties are managed as timberlands until sold or developed; sales and depletion expense related to the harvesting of timber are accounted for within the respective timber segment. At the time of a real estate sale, the cost basis of any remaining unharvested timber is recognized as depletion expense within the Real Estate segment. HBU timberland and real estate development investments expected to be sold within twelve months are recorded as inventory. See Note 15 — Higher and Better Use Timberlands and Real Estate Development Investments for additional information. REAL ESTATE DEVELOPMENT INVESTMENTS Real estate development investments include capitalized costs—net of reimbursements—associated with the development and construction of identified projects. These costs primarily relate to infrastructure, roadways, utilities, amenities and other improvements designed to create or enhance marketability of parcels and lots. We capitalize interest on real estate projects based on the amount of underlying expenditures during the capitalization period. The period begins when activities to ready a property for its intended use commence (typically at the start of site work) and concludes when the improvement is substantially complete. Because the determination of substantial completion is subjective and requires business judgment, we establish the capitalization period through ongoing communication with project managers and those responsible for project oversight. IMPAIRMENT OF HBU TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS We evaluate HBU timberlands and real estate development investments for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Indicators are assessed for each project separately and include significant decreases in sales pace or average selling prices, significant increases in expected development costs, or projected losses on future sales. Because development projects often span 20 to 40 years and endure multiple economic cycles, the evaluation of future cash flows is highly subjective. Assumptions regarding development timing, density and market conditions impact these estimates and may differ from actual results. An impairment loss is recognized if the carrying amount of an asset is not recoverable and exceeds its fair value. If the expected undiscounted cash flows generated by the asset are less than its carrying amount less costs to sell, an impairment provision is recorded to write down the asset to its fair value. See Note 15 — Higher and Better Use Timberlands and Real Estate Development Investments for additional information. 82 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollar amounts in thousands unless otherwise stated) PROPERTY, PLANT, EQUIPMENT AND DEPRECIATION Property, plant and equipment additions are recorded at cost, including applicable freight, interest, construction and installation costs. We generally depreciate our assets using the straight-line depreciation method over the following useful lives: • Office and transportation equipment: 3 to 25 years • Buildings: 15 to 35 years • Land improvements: 5 to 30 years Gains and losses on the sale or retirement of assets are included in operating income. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount may not be recoverable. Recoverability of assets held and used is measured by comparing the carrying amount to the undiscounted cash flows expected to be generated by the asset. If an asset is impaired, the loss recognized is the amount by which the carrying amount exceeds the fair value, typically determined using a discounted cash flow model. Assets held for disposal are reported at the lower of carrying amount or fair value less cost to sell. LEASES At inception, we determine if an arrangement is a lease and whether it meets the classification criteria of a finance or operating lease. Operating leases are included in right-of-use (“ROU”) assets, other current liabilities, and long-term lease liabilities in the Consolidated Balance Sheets. The income generated from our commercial and residential leases in Port Gamble is accounted for in accordance with Topic 842. We recognize total minimum lease payments on a straight-line basis over the applicable lease term. ROU assets represent our right to use an underlying asset, and lease liabilities represent the obligation to make related payments. These are recognized at the commencement date based on the estimated present value of lease payments over the term. As most of our leases do not provide an implicit rate, we generally use our incremental borrowing rate based on the estimated cost for collateralized borrowing over a similar term. Lease terms may include options to extend or terminate the agreement when it is reasonably certain that we will exercise those options. Lease expense is recognized on a straight-line basis over the lease term. RIGHT-OF-USE ASSETS IMPAIRMENT Operating lease right-of-use assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset group to which the operating lease is assigned may not be recoverable. Recoverability of the asset group is evaluated based on forecasted undiscounted cash flows. If the carrying amount of the asset group is not recoverable, the fair value of the asset group is compared to its carrying amount and an impairment charge is recognized for the amount by which the carrying amount exceeds the fair value. A discounted cash flow approach using market participant assumptions of the expected cash flows and discount rate, is used to estimate the fair value of the asset group. FAIR VALUE MEASUREMENTS Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. 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, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. 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. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. 83 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollar amounts in thousands unless otherwise stated) ENVIRONMENTAL REMEDIATION LIABILITIES We accrue for estimated future costs for known environmental remediation requirements on an undiscounted basis when it is probable that a liability has been incurred and the costs can be reasonably estimated. In developing these estimates, we consider factors such as construction contracts, proposed statements of work, project management requirements, and professional fees. We evaluate the adequacy of these liabilities quarterly, adjusting the balances as new information regarding the scope or costs of remediation becomes known. Legal investigation and defense costs associated with environmental contingencies are expensed as incurred. Recoveries from third parties are recorded as assets only when receipt is deemed probable and the amount does not exceed previously recorded losses. See Note 13 — Environmental and Natural Resource Damages Liabilities for more information. GOODWILL Goodwill represented the excess of the acquisition cost of our New Zealand operations over the fair value of the net assets acquired. Goodwill was not amortized, but was reviewed for impairment annually—or whenever events indicated a potential impairment. We compared the fair value of our New Zealand Timber operations, using an independent valuation for the New Zealand forest assets, to its carrying amount including goodwill. This valuation represented the present value of anticipated cash flows over a single biological growth cycle of the productive timberland, incorporating specific environmental, operational, and market constraints. These models relied on significant Level 3 inputs, including broad assumptions and judgment regarding future harvest yields, price realizations, and operational performance. On June 30, 2025, we completed the sale of our New Zealand operations. Consequently, the $ 7.5 million carrying value of goodwill was derecognized and included in the gain on sale calculation. Prior to the sale, no impairment was recorded, as the annual test performed on October 1, 2024, indicated that the fair value exceeded the carrying amount. See Note 2 — Discontinued Operations for additional information regarding our New Zealand operations. FOREIGN CURRENCY TRANSLATION AND REMEASUREMENT The functional currency of our New Zealand operations was the New Zealand dollar. All assets and liabilities were translated into U.S. dollars at the exchange rate in effect at the respective balance sheet dates. Translation gains and losses were recorded as a separate component of Accumulated Other Comprehensive Income (“AOCI”), within Shareholders’ Equity. On June 30, 2025, we completed the sale of our New Zealand subsidiary. In accordance with ASC 830, the cumulative translation adjustment related to the New Zealand operations previously recognized in AOCI, was reclassified to earnings as a component of the gain on sale. For the period prior to the sale, U.S. denominated transactions of the New Zealand subsidiary were remeasured into New Zealand dollars at the exchange rate in effect on the date of the transaction and recognized in earnings, net of related cash flow hedges. All income statement items of the New Zealand subsidiary were translated into U.S. dollars using monthly average exchange rates. Following the sale, no further translation adjustments related to the New Zealand operations were recognized. See Note 2 — Discontinued Operations for additional information regarding our New Zealand operations. REDEEMABLE OPERATING PARTNERSHIP UNITS Limited partners holding Redeemable Operating Partnership Units have the right to require the Operating Partnership to redeem their units. Upon such request, the Operating Partnership must redeem the units for cash or, at Rayonier’s option, Rayonier registered common shares on a one -for-one basis. Because these units are redeemable at the option of the holder, the related noncontrolling interest is classified outside of permanent equity (as mezzanine equity) in the Consolidated Balance Sheets. The recorded value of these units is adjusted each reporting period to the higher of 1) initial carrying amount, adjusted for the unit’s share of net income (loss), other comprehensive income (loss), and distributions; or 2) redemption value as determined by the closing price of Rayonier common stock on the balance sheet date. Adjustments to the carrying amount to reach the redemption value are recorded within retained earnings. 84 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollar amounts in thousands unless otherwise stated) REVENUE RECOGNITION We recognize revenues when control of promised goods or services (“performance obligations”) is transferred to customers in an amount that reflects the consideration we expect to receive in exchange for those goods or services (“transaction price”). Unsatisfied performance obligations as of December 31, 2025 primarily consist of advances on stumpage contracts, unearned license revenue and unearned carbon capture and storage revenue. Of these performance obligations, $ 19.3 million is expected to be recognized as revenue within the next twelve months , with the remaining $ 9.6 million expected to be recognized thereafter as the performance obligations are satisfied. We generally collect payment within one year of satisfying a performance obligation; therefore, we have elected the practical expedient not to adjust revenues for a financing component. TIMBER SALES Revenue from timber sales is recognized when control of the product is transferred to the buyer. We utilize two primary sales channels depending on market conditions and margin optimization: the stumpage/standing timber model and the delivered log model. Under the stumpage model, standing timber is sold primarily under pay-as-cut contracts, with a specified duration (typically one year or less) and fixed prices, whereby revenue is recognized as timber is severed and the sales volume is determined. We also sell stumpage under lump-sum contracts for specified parcels where control passes to the buyer upon contract execution and receipt of payment. We retain interest in the land, slash products, and the use of the land for recreational and other purposes. Any uncut timber remaining at the end of the contract period reverts to us. A third type of stumpage sale we utilize is an agreed-volume sale, whereby revenue is recognized using the output method based on periodic physical observations of the percentage of acreage harvested. Under the delivered log model, we hire third-party loggers and haulers to harvest timber and deliver it to a buyer. Sales of domestic logs generally do not require an initial payment and are made to third-party customers on open credit terms. Sales of export logs generally require a letter of credit from an approved bank. Revenue is recognized when the logs are delivered and control has passed to the buyer. For domestic log sales, control passes to the buyer upon delivery to the customer’s facility. For export log sales, control passes to the buyer upon delivery onto the export vessel. The following table summarizes revenue recognition and general payment terms for timber sales: Contract Type Performance Obligation Timing of Revenue Recognition General Payment Terms Stumpage Pay-as-Cut Right to harvest a unit (i.e. ton, MBF) of standing timber As timber is severed (point-in-time) Initial payment between 5 % and 20 % of estimated contract value; collection generally within 10 days of severance Stumpage Lump Sum Right to harvest an agreed upon acreage of standing timber Contract execution (point-in-time) Full payment due upon contract execution Stumpage Agreed Volume Right to harvest an agreed upon volume of standing timber As timber is severed (over-time) Payments made throughout contract term at the earlier of a specified harvest percentage or time elapsed Delivered Wood (Domestic) Delivery of a unit (i.e. ton, MBF) of timber to customer’s facility Upon delivery to customer’s facility (point-in-time) No initial payment and on open credit terms; collection generally within 30 days of invoice Delivered Wood (Export) Delivery of a unit (i.e. ton, MBF) onto export vessel Upon delivery onto export vessel (point-in-time) Letter of credit from an approved bank; collection generally within 30 days of delivery 85 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollar amounts in thousands unless otherwise stated) NON-TIMBER SALES Non-timber sales primarily consist of hunting and recreational licenses and other auxiliary income. Revenue from hunting and recreational license sales, along with related costs, is recognized ratably over the term of the agreement and included in “Sales” and “Cost of sales,” respectively. Payment is generally due upon contract execution. Carbon Capture and Storage Sales Carbon capture and storage (“CCS”) sales are primarily comprised of revenue generated from granting land access and the right to inject, sequester and permanently store carbon dioxide in a subsurface area. CCS contracts contain variable consideration arrangements, which may include variable durations, rates, access acres and carbon volumes. The determination and allocation of the transaction price to performance obligations may require significant judgment and are based on management’s estimate of the most likely amount of consideration expected to be received as of the reporting date. Variable consideration is included in the transaction price only to the extent that it is probable that a significant reversal of the amount of cumulative revenue recognized will not occur when the associated uncertainty is resolved. Estimating variable consideration requires judgments regarding the amount and timing of future payments, which may be impacted by market conditions, competition, or other factors beyond our control. As a result, actual amounts of variable consideration could differ from our estimates. We regularly review these estimates and adjust the transaction price and related revenue recognition in the period in which revisions occur. Log Trading Log trading revenue is recognized when procured logs are delivered to the buyer and control has passed. For domestic log trading, control passes to the buyer as the logs are delivered to the customer’s facility. For export log trading, control passes to the buyer upon delivery onto the export vessel. REAL ESTATE We recognize revenue on sales of real estate generally at the point in time when the sale has closed, cash has been received, and control has passed to the buyer. A deposit of 2 % to 5 % is generally required upon execution of a purchase and sale agreement, with the balance due at closing. Additional consideration may be recognized at closing if the performance obligation is not distinct from the land sale, the amount is fixed, and collectability is probable. For sales of development real estate containing future performance obligations, revenue is recognized over time using the cost input method. This is based on development costs incurred to date relative to the total estimated development costs allocated to the contract. The aggregate amount of the transaction price allocated to unsatisfied obligations is recorded as “Deferred revenue” in the Consolidated Balance Sheets. Builder Price Participation Builder Price Participation represents the variable component of the transaction price for certain development sales within our Real Estate segment. This participation reflects a lot premium earned when a homebuilder, having purchased land from us, develops and sells a home to a third party at a price exceeding a predetermined threshold. The excess over this threshold is shared between the Company and the homebuilder based upon a contractually designated percentage and is recognized concurrent with the home closing. We generally constrain Builder Price Participation and do not recognize an estimate of variable consideration until the uncertainty is resolved. The constraint is primarily based on the following factors: • the considerable variability in home prices due to customer options, incentives, and general market conditions; • the extended duration—often up to three years—between the initial land sale and the home closing; and • the susceptibility of home prices to factors outside of our control, such as unemployment and interest rates. 86 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollar amounts in thousands unless otherwise stated) At each reporting period, we evaluate contracts with homebuilders with respect to Builder Price Participation to determine whether a change in facts and circumstances has eliminated the constraint and will record an estimate of revenue, if applicable. COST OF SALES Cost of sales associated with timber operations primarily includes the cost basis of timber sold (depletion), logging and transportation costs (cut and haul), and ocean freight and demurrage costs (port and freight). Depletion includes the amortization of capitalized costs (site preparation, planting and fertilization, real estate taxes, timberland lease payments, and certain payroll costs). Other costs include amortization of capitalized costs related to road and bridge construction, software, depreciation of fixed assets and equipment, road maintenance, severance and excise taxes, and fire prevention. Cost of sales associated with real estate sold includes the cost of the land, the cost of any timber on the property conveyed to the buyer, real estate development costs and closing costs, including sales commissions. We expense closing costs, including sales commissions, when incurred for all real estate sales with future performance obligations expected to be satisfied within one year. When developed residential or commercial land is sold, the cost of sales includes actual costs incurred and estimates of future development costs benefiting the property sold through completion. Costs are allocated to each acre or lot based upon its relative sales value compared to the estimated sales value of the total project. Estimates are reevaluated at least annually, or more frequently if warranted by market conditions or changes in the project scope, with any adjustments being allocated prospectively to the remaining units available for sale. EMPLOYEE BENEFIT PLANS The determination of expense and funding requirements for our postretirement life insurance plan is based on several actuarial assumptions, including the discount rate, mortality rates, and employee longevity. Periodic postretirement expense is included in “Cost of sales,” “Selling and general expenses,” and “Other miscellaneous (expense) income, net” in the Consolidated Statements of Income and Comprehensive Income (Loss). The service cost component of net periodic benefit cost is included in operating income within “Cost of sales” and “Selling and general expenses.” All other components (interest cost and amortization of gains or losses) are presented outside of income from operations in “Other miscellaneous (expense) income, net.” Changes in the funded status of the plan are recorded through other comprehensive income (loss) in the year in which the changes occur. We measure benefit obligations as of the fiscal year-end. Our defined benefit pension plan and the unfunded excess pension plan were terminated in 2023. While these plans are no longer active, the consolidated financial statements include historical activity and disclosures related to these plans for the comparative periods presented. See Note 19 — Employee Benefit Plans for specific assumptions and additional information regarding these plan terminations and the remaining postretirement benefit obligations. INCOME TAXES We use the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax benefits or consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, operating loss carryforwards, and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. We recognize the effect of a change in tax rates on deferred tax assets and liabilities in the period that includes the enactment date. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets if it is more-likely-than-not that such assets will not be realized. In determining the provision for income taxes, we compute an annual effective income tax rate based on projected annual income by legal entity, permanent differences, and statutory rates by jurisdiction. Inherent in the effective tax rate is an assessment of the outcome of current period uncertain tax positions. We adjust our annual effective tax rate as additional information becomes available. Discrete items, such as taxing authority examination findings or legislative changes, are recognized in the period in which they occur. 87 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollar amounts in thousands unless otherwise stated) Our income tax returns are subject to audit by U.S. federal and state taxing authorities. In evaluating tax benefits associated with various tax filing positions, we record a benefit if it is more-likely-than-not to be realized upon ultimate settlement. We record a liability for any uncertain tax position that does not meet this criterion. Interest and penalties related to uncertain tax positions are recognized in income tax expense. We adjust these liabilities when an issue is settled, the statute of limitations expires, or new information becomes available. See Note 21 — Income Taxes for additional information. RECENTLY ADOPTED ACCOUNTING STANDARDS We adopted Accounting Standards Update (“ASU”) No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures retrospectively for the year ended December 31, 2025. This standard requires enhanced disaggregation of information in the effective tax rate reconciliation and additional disclosures regarding income taxes paid. As this update relates specifically to financial statement disclosures, the adoption did not have a material impact on our consolidated financial results or financial position. See Note 21 — Income Taxes for additional information. ACCOUNTING STANDARDS ISSUED BUT NOT YET ADOPTED In December 2025, the FASB issued ASU No. 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements. This update is intended to improve the navigability of required interim disclosures, clarify applicability, and establish a principle requiring entities to disclose events occurring since the most recent annual reporting period that have a material impact on the entity. The guidance is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. The requirements may be applied prospectively or retrospectively. We are currently evaluating the impact of adopting this new guidance on our consolidated financial statements and disclosures. In November 2025, the FASB issued ASU No. 2025-09, Derivatives and Hedging (Topic 815): Hedge Accounting Improvements. This update amends existing guidance to clarify and enhance hedge accounting requirements specifically allowing for more flexibility in how entities group and manage similar risks. The pronouncement is effective for annual reporting periods beginning after December 15, 2026, including interim periods within those annual periods, with early adoption permitted. The requirements must be applied prospectively. We intend to early adopt ASU 2025-09 in the first quarter of 2026. We are currently evaluating the impact of adopting this new guidance on our consolidated financial statements and disclosures. 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. Subsequently, in January 2025, the FASB issued ASU No. 2025-01 to clarify the effective date of this guidance . ASU 2024-03 requires enhanced disclosure regarding specific expense categories, such as inventory costs, employee compensation, and depreciation, within the notes to the financial statements. The pronouncement is effective for annual reporting periods in fiscal years beginning after December 15, 2026, and for interim reporting periods beginning after December 15, 2027, with early adoption permitted. The guidance allows for either prospective or retrospective application. We do not expect the adoption of this pronouncement to impact our consolidated financial statements as this is a disclosure-only ASU. Recent accounting pronouncements, either adopted or pending adoption, not discussed above are either not applicable or are not expected to have a material impact on our consolidated financial position, results of operations, or cash flows. 88 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollar amounts in thousands unless otherwise stated) SUBSEQUENT EVENTS On January 30, 2026 (the “Closing Date”), the Company completed its merger-of-equals transaction with PotlatchDeltic Corporation (“PotlatchDeltic”) pursuant to the Agreement and Plan of Merger dated October 13, 2025. At the effective time of the merger, PotlatchDeltic merged with and into a wholly owned subsidiary of the Company, with the subsidiary continuing as the surviving corporation. The transaction was subject to customary closing conditions, including regulatory and shareholder approvals, all of which were obtained prior to closing. The merger significantly expands our timberland portfolio and introduces wood products manufacturing capabilities, creating a combined entity with enhanced scale and geographic diversity. Pursuant to the terms of the Merger Agreement, each share of PotlatchDeltic common stock issued and outstanding immediately prior to the effective time was converted into the right to receive 1.8185 Rayonier common shares and $ 0.61 in cash. In connection with the merger, the Company issued approximately 140.9 million common shares. The merger will be accounted for as a business combination using the acquisition method of accounting in accordance with ASC 805, Business Combinations , with Rayonier treated as the legal and accounting acquirer. Due to the close proximity of the January 30, 2026 closing date and the Company’s filing of its Annual Report on Form 10-K for the year ended December 31, 2025, the initial accounting for the business combination is incomplete. As such, the Company is not yet able to provide the initial acquisition accounting or other information required by ASC 805. We will include relevant disclosures as required in the Company’s Quarterly Report on Form 10-Q for the period ending March 31, 2026. In connection with the PotlatchDeltic merger, we entered into a $ 1.81 billion Second Amended and Restated Credit Agreement to consolidate and refinance debt following the merger which allows for an additional $ 200 million expansion of the revolver and further incremental term loans subject to leverage ratios. On February 23, 2026, the Company’s board of directors declared a first quarter cash dividend of $ 0.26 per common share. The adjustment in the quarterly dividend from $ 0.2725 per share to $ 0.26 per share reflects the 7.5 million incremental shares issued to shareholders as part of the Company’s recent special dividend. On the same date, the board declared a first quarter cash distribution of $ 0.26 per Redeemable Operating Partnership Unit, which was similarly adjusted to reflect the incremental units issued as part of the special dividend. 89 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollar amounts in thousands unless otherwise stated) 2. DISCONTINUED OPERATIONS On March 9, 2025, we entered into a purchase and sale agreement with Taurus Forest Holdings Limited, pursuant to which we agreed to sell our entire 77 % interest in our New Zealand operations. Accordingly, 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 cash 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 years ended December 31, as presented in “Income from discontinued operations” in the Consolidated Statements of Income and Comprehensive Income (Loss): 2025 2024 2023 Sales $ 109,332 $ 275,068 $ 268,560 Costs and Expenses Cost of sales (a) ( 102,050 ) ( 237,251 ) ( 233,654 ) Other operating (expense) income, net (b) ( 3,400 ) 542 ( 8,318 ) ( 105,450 ) ( 236,709 ) ( 241,972 ) Operating income from discontinued operations 3,882 38,359 26,588 Interest expense, net ( 1,508 ) ( 3,159 ) ( 3,198 ) Interest income 202 996 620 Income from operations of discontinued operations before income taxes 2,576 36,196 24,010 Income tax expense ( 693 ) ( 8,073 ) ( 4,829 ) Income from operations of discontinued operations, net of tax 1,883 28,123 19,181 Gain on sale of discontinued operations (c) 404,463 — — Income from discontinued operations 406,346 28,123 19,181 Less: Net income from discontinued operations attributable to noncontrolling interests in the Operating Partnership ( 5,375 ) ( 324 ) ( 275 ) Less: Net loss (income) from discontinued operations attributable to noncontrolling interests in consolidated affiliates 192 ( 4,492 ) ( 2,144 ) Net income from discontinued operations attributable to Rayonier Inc. $ 401,163 $ 23,307 $ 16,762 (a) The year ended December 31, 2023 includes timber write-offs resulting from casualty events of $ 2.3 million. (b) The years ended December 31, 2025 and 2024 includes transaction costs of $ 0.2 million and $ 0.7 million, respectively. (c) The gain on sale of discontinued operations is not subject to income tax, as it relates to a partnership interest. 90 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (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: 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 logging roads 5,731 Prepaid expenses 475 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 and improved development of the Company’s discontinued operations for the three years ended December 31: 2025 2024 2023 Depreciation, depletion and amortization $ 9,081 $ 26,395 $ 21,666 Capital expenditures 7,098 17,686 16,663 Non-cash cost of land and improved development — 3,041 — 91 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollar amounts in thousands unless otherwise stated) 3. SEGMENT AND GEOGRAPHICAL INFORMATION As of December 31, 2025, and for all periods presented, we operated in three reportable segments: Southern Timber, Pacific Northwest Timber and Real Estate. In June 2025, we completed the sale of our 77 % interest in the New Zealand joint venture. Consequently, these operations are classified as discontinued operations for all periods presented. See Note 2 — Discontinued Operations for additional information. Effective with the third quarter of 2025, we realigned our reportable segments to reflect how our chief operating decision maker (“CODM”), the Chief Executive Officer, evaluates performance and allocates capital. 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 for all periods presented. Intersegment sales are based on estimated fair market value, and are eliminated in consolidation. The CODM evaluates segment performance using Adjusted Earnings before Interest, Taxes, Depreciation, Depletion and Amortization (“Adjusted EBITDA”). Total assets by segment are not disclosed as they are not used by the CODM for resource allocation or performance assessment. 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, costs related to the merger with PotlatchDeltic, asset impairment charges, restructuring charges, costs related to disposition initiatives and Large Dispositions. We believe that Operating income, as defined by U.S. GAAP, is the most appropriate earnings measurement for reconciling Adjusted EBITDA. Adjusted EBITDA should not be considered as an alternative to Operating income as determined in accordance with U.S. GAAP. Operating income as presented in the Consolidated Statements of Income and Comprehensive Income (Loss) includes the results of both reportable segments and corporate activities. Segment Operating income (loss) represents the operating results of the company’s reportable segments only and does not include corporate-level amounts. As a result, segment Operating income (loss) may differ from the total Operating income reported in the consolidated financial statements. 92 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollar amounts in thousands unless otherwise stated) The following tables summarize the segment information for the three years ended December 31: Year Ended Southern Timber Pacific Northwest Timber Real Estate Total December 31, 2025 Sales $ 228,309 $ 83,564 $ 172,612 $ 484,485 Costs and Expenses Cut and haul costs ( 53,386 ) ( 35,758 ) — ( 89,144 ) Port and freight costs — ( 18 ) — ( 18 ) Depreciation, depletion and amortization ( 68,998 ) ( 21,792 ) ( 13,983 ) ( 104,773 ) Non-cash cost of land and improved development — — ( 43,714 ) ( 43,714 ) Other costs and expenses (a) ( 44,821 ) ( 24,077 ) ( 52,590 ) ( 121,488 ) Reportable segment operating income $ 61,104 $ 1,919 $ 62,325 $ 125,348 Add: Asset impairment charge (b) — — 7,048 7,048 Add: Depreciation, depletion and amortization 68,998 21,792 13,983 104,773 Add: Non-cash cost of land and improved development — — 43,714 43,714 Reportable segment adjusted EBITDA $ 130,102 $ 23,711 $ 127,070 $ 280,883 Reconciliation of reportable segment results to consolidated income before taxes All other EBITDA (c) ($ 32,918 ) Interest, net and miscellaneous expense ( 2,057 ) Depreciation, depletion and amortization ( 106,454 ) Non-cash cost of land and improved development ( 43,714 ) Non-operating expense (d) ( 6,685 ) Costs related to the merger with PotlatchDeltic (e) ( 6,303 ) Asset impairment charge (b) ( 7,048 ) Restructuring charges (f) ( 1,110 ) Income from Continuing Operations Before Income Taxes $ 74,594 Income tax expense ( 527 ) Income from Continuing Operations $ 74,067 Income from operations of discontinued operations, net of tax 1,883 Gain on sale of discontinued operations 404,463 Net Income $ 480,413 (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) Costs related to the merger with PotlatchDeltic include legal, accounting, due diligence, consulting and other costs related to the merger with PotlatchDeltic, which subsequently closed on January 30, 2026. (f) 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 (expense) income, net.” 93 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollar amounts in thousands unless otherwise stated) Year Ended Southern Timber Pacific Northwest Timber Real Estate Total December 31, 2024 Sales (a) $ 251,642 $ 108,019 $ 628,268 $ 987,929 Costs and Expenses Cut and haul costs ( 51,041 ) ( 42,001 ) — ( 93,042 ) Port and freight costs ( 2,883 ) ( 5,077 ) — ( 7,960 ) Depreciation, depletion and amortization (a) ( 73,409 ) ( 31,668 ) ( 162,941 ) ( 268,018 ) Non-cash cost of land and improved development (a) — — ( 78,962 ) ( 78,962 ) Other costs and expenses (b) ( 46,406 ) ( 35,569 ) ( 51,243 ) ( 133,218 ) Reportable segment operating income (loss) $ 77,903 ($ 6,296 ) $ 335,122 $ 406,729 Add: Depreciation, depletion and amortization (c) 73,409 31,668 6,986 112,063 Add: Non-cash cost of land and improved development (c) — — 41,368 41,368 Less: Large Dispositions (d) — — ( 291,078 ) ( 291,078 ) Reportable segment adjusted EBITDA $ 151,312 $ 25,372 $ 92,398 $ 269,082 Reconciliation of reportable segment results to consolidated income before taxes All other EBITDA (e) ($ 38,843 ) Interest, net and miscellaneous expense (f) ( 25,544 ) Depreciation, depletion and amortization (c) ( 113,854 ) Non-cash cost of land and improved development (c) ( 41,368 ) Non-operating income (g) 1,275 Costs related to disposition initiatives (h) ( 849 ) Restructuring charges (i) ( 1,139 ) Large Dispositions (d) 291,078 Income from Continuing Operations Before Income Taxes $ 339,838 Income tax benefit (j) 1,022 Income from Continuing Operations $ 340,860 Income from operations of discontinued operations, net of tax 28,123 Net Income $ 368,983 (a) Real Estate segment sales, depreciation, depletion and amortization, and non-cash cost of land and improved development includes $ 495.0 million, $ 156.0 million, and $ 37.6 million, respectively, from Large Dispositions. (b) Other costs and expenses for each reportable segment primarily includes other direct and indirect cost of sales and selling and general expenses. (c) Excludes depreciation, depletion and amortization, and non-cash cost of land and improved development of $ 156.0 million, and $ 37.6 million, respectively, from Large Dispositions. (d) Large Dispositions are defined as transactions involving the sale of productive timberland assets that exceed $ 20 million in size and do not reflect a demonstrable premium relative to timberland value. The year ended December 31, 2024 includes the sale of approximately 200,000 acres for an aggregate sale price of $ 495.0 million. These dispositions consisted of approximately 91,000 acres in Southeast Oklahoma and 109,000 acres on the Olympic Peninsula in Northwest Washington. (e) All other EBITDA includes general corporate expenses. (f) Includes a $ 1.6 million gain from a terminated cash flow hedge. The gain from a terminated cash flow hedge is recorded within the Consolidated Statements of Income and Comprehensive Income (Loss) under the caption “Interest expense, net.” (g) Non-operating income includes $ 8.0 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.” (h) Costs related to disposition initiatives include legal, advisory, and other due diligence costs incurred in connection with the Company’s 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 (expense) income, net.” (i) 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 (expense) income, net.” (j) Includes a $ 1.2 million income tax benefit related to the pension settlement. 94 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollar amounts in thousands unless otherwise stated) Year Ended Southern Timber Pacific Northwest Timber Real Estate Total December 31, 2023 Sales (a) $ 265,134 $ 133,276 $ 389,963 $ 788,373 Costs and Expenses Cut and haul costs ( 57,964 ) ( 56,565 ) — ( 114,529 ) Port and freight costs ( 4,893 ) ( 8,730 ) — ( 13,623 ) Depreciation, depletion and amortization (a) ( 79,974 ) ( 36,924 ) ( 109,085 ) ( 225,983 ) Non-cash cost of land and improved development (a) — — ( 73,458 ) ( 73,458 ) Other costs and expenses (b) ( 45,968 ) ( 39,725 ) ( 50,815 ) ( 136,508 ) Reportable segment operating income (loss) $ 76,335 ($ 8,668 ) $ 156,605 $ 224,272 Add: Depreciation, depletion and amortization (c) 79,974 36,924 17,955 134,853 Add: Non-cash cost of land and improved development (c) — — 29,768 29,768 Less: Large Dispositions (d) — — ( 105,078 ) ( 105,078 ) Reportable segment adjusted EBITDA $ 156,309 $ 28,256 $ 99,250 $ 283,815 Reconciliation of reportable segment results to consolidated income before taxes All other EBITDA (e) ($ 37,864 ) Interest, net and miscellaneous expense ( 43,367 ) Depreciation, depletion and amortization (c) ( 136,565 ) Non-cash cost of land and improved development (c) ( 29,768 ) Non-operating income (f) 18,278 Large Dispositions (d) 105,078 Income from Continuing Operations Before Income Taxes $ 159,607 Income tax expense ( 293 ) Income from Continuing Operations $ 159,314 Income from operations of discontinued operations, net of tax 19,181 Net Income $ 178,495 (a) Real Estate segment sales, depreciation, depletion and amortization, and non-cash cost of land and improved development includes $ 242.2 million, $ 91.1 million, and $ 43.7 million, respectively, from Large Dispositions. (b) Other costs and expenses for each reportable segment primarily includes other direct and indirect cost of sales and selling and general expenses. (c) Excludes depreciation, depletion and amortization, and non-cash cost of land and improved development of $ 91.1 million and $ 43.7 million, respectively, from Large Dispositions. (d) Large Dispositions are defined as transactions involving the sale of productive timberland assets that exceed $ 20 million in size and do not reflect a demonstrable premium relative to timberland value. The year ended December 31, 2023 includes the sale of approximately 55,000 acres in Oregon for $ 242.2 million. (e) All other EBITDA includes general corporate expenses. (f) Non-operating income includes $ 20.7 million of net recoveries associated with legal settlements, which is partially offset by a $ 2.0 million pension settlement charge. 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.” 95 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollar amounts in thousands unless otherwise stated) Gross Capital Expenditures 2025 2024 2023 Capital Expenditures (a) Southern Timber $ 41,561 $ 48,398 $ 46,506 Pacific Northwest Timber 8,263 13,340 17,371 Real Estate 225 323 302 Corporate and other — 33 605 Total capital expenditures $ 50,049 $ 62,094 $ 64,784 Timberland Acquisitions Southern Timber — $ 22,753 $ 10,471 Pacific Northwest Timber — — 3,591 Total timberland acquisitions — $ 22,753 $ 14,062 Total Gross Capital Expenditures $ 50,049 $ 84,847 $ 78,846 (a) Excludes timberland acquisitions presented separately, in addition to real estate development investments of $ 22.4 million, $ 25.8 million, and $ 23.1 million in the years ended December 31, 2025, 2024, and 2023, respectively. Geographical Operating Information (a) Sales Operating Income Identifiable Assets 2025 2024 2023 2025 2024 2023 2025 2024 United States $ 484,485 $ 987,929 $ 788,373 $ 83,336 $ 364,107 $ 184,696 $ 3,404,653 $ 2,998,500 Total $ 484,485 $ 987,929 $ 788,373 $ 83,336 $ 364,107 $ 184,696 $ 3,404,653 $ 2,998,500 (a) The geographical information presented above reflects the results of the Company's continuing operations. Sales and Operating Income for the New Zealand operations have been retrospectively excluded from this table for the years ended December 31, 2024 and 2023. Identifiable Assets for the New Zealand operations have been retrospectively excluded for the year ended December 31, 2024. Sales, Operating Income, and Identifiable Assets for the New Zealand Operations are included in the disclosures for Discontinued Operations. See Note 2 — Discontinued Operations for additional information. 4. REVENUE 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 years ended December 31, 2025 and 2024 that was included in the contract liability balance at the beginning of each year: Year Ended December 31, 2025 2024 Revenue recognized from contract liability balance at the beginning of the year $ 19,523 $ 26,534 96 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollar amounts in thousands unless otherwise stated) The following tables present our revenue from contracts with customers disaggregated by product type for the years ended December 31, 2025 , 2024 and 2023 : Year Ended Southern Timber Pacific Northwest Timber Real Estate Total December 31, 2025 Pulpwood $ 80,694 $ 5,070 — $ 85,764 Sawtimber 94,949 71,219 — 166,168 Hardwood 6,183 — — 6,183 Total Timber Sales 181,826 76,289 — 258,115 Trading (a) — 1,805 — 1,805 License Revenue, primarily from Hunting 21,189 782 — 21,971 Land Based Solutions (b) 11,230 106 — 11,336 Other Non-Timber Revenue 14,064 4,582 — 18,646 Total Non-Timber Sales 46,483 7,275 — 53,758 Improved Development — — 47,160 47,160 Unimproved Development — — 5,080 5,080 Rural — — 48,581 48,581 Timberland & Non-Strategic — — 53,500 53,500 Deferred Revenue/Other (c) — — 16,841 16,841 Total Real Estate Sales — — 171,162 171,162 Revenue from Contracts with Customers 228,309 83,564 171,162 483,035 Lease Revenue — — 1,450 1,450 Total Revenue $ 228,309 $ 83,564 $ 172,612 $ 484,485 December 31, 2024 Pulpwood $ 94,820 $ 5,473 — $ 100,293 Sawtimber 99,636 89,726 — 189,362 Hardwood 4,967 — — 4,967 Total Timber Sales 199,423 95,199 — 294,622 Trading (a) 1,223 7,233 — 8,456 License Revenue, primarily from Hunting 21,164 942 — 22,106 Land Based Solutions (b) 14,518 50 — 14,568 Other Non-Timber Revenue 15,314 4,595 — 19,909 Total Non-Timber Sales 52,219 12,820 — 65,039 Improved Development — — 30,754 30,754 Unimproved Development — — 12,400 12,400 Rural — — 72,913 72,913 Timberland & Non-Strategic — — 610 610 Conservation Easements — — 1,101 1,101 Deferred Revenue/Other (c) — — 14,001 14,001 Large Dispositions — — 495,000 495,000 Total Real Estate Sales — — 626,779 626,779 Revenue from Contracts with Customers 251,642 108,019 626,779 986,440 Lease Revenue — — 1,489 1,489 Total Revenue $ 251,642 $ 108,019 $ 628,268 $ 987,929 97 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollar amounts in thousands unless otherwise stated) Year Ended Southern Timber Pacific Northwest Timber Real Estate Total December 31, 2023 Pulpwood $ 99,035 $ 8,410 — $ 107,445 Sawtimber 123,312 109,446 — 232,758 Hardwood 4,279 — — 4,279 Total Timber Sales 226,626 117,856 — 344,482 Trading (a) 1,006 9,131 — 10,137 License Revenue, primarily from Hunting 23,130 1,344 — 24,474 Land Based Solutions (b) 3,989 1,355 — 5,344 Other Non-Timber Revenue 10,383 3,590 — 13,973 Total Non-Timber Sales 38,508 15,420 — 53,928 Improved Development — — 30,707 30,707 Unimproved Development — — 114 114 Rural — — 99,665 99,665 Timberland & Non-Strategic — — 3,347 3,347 Deferred Revenue/Other (c) — — 12,516 12,516 Large Dispositions — — 242,200 242,200 Total Real Estate Sales — — 388,549 388,549 Revenue from Contracts with Customers 265,134 133,276 388,549 786,959 Lease Revenue — — 1,414 1,414 Total Revenue $ 265,134 $ 133,276 $ 389,963 $ 788,373 (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 and conservation easements for habitat protection. (c) Includes deferred revenue adjustments, builder price participation, and other fees related to Improved Development sales. 98 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollar amounts in thousands unless otherwise stated) The following table presents our timber sales disaggregated by contract type for the years ended December 31, 2025, 2024 and 2023: Year Ended Southern Timber Pacific Northwest Timber Total December 31, 2025 Stumpage Pay-as-Cut $ 82,480 — $ 82,480 Stumpage Lump Sum 794 3,233 4,027 Total Stumpage 83,274 3,233 86,507 Delivered Wood (Domestic) 98,552 73,013 171,565 Delivered Wood (Export) — 43 43 Total Delivered 98,552 73,056 171,608 Total Timber Sales $ 181,826 $ 76,289 $ 258,115 December 31, 2024 Stumpage Pay-as-Cut $ 97,369 $ 8 $ 97,377 Stumpage Lump Sum 827 8,228 9,055 Total Stumpage 98,196 8,236 106,432 Delivered Wood (Domestic) 96,492 83,041 179,533 Delivered Wood (Export) 4,735 3,922 8,657 Total Delivered 101,227 86,963 188,190 Total Timber Sales $ 199,423 $ 95,199 $ 294,622 December 31, 2023 Stumpage Pay-as-Cut $ 109,583 — $ 109,583 Stumpage Lump Sum 387 2,654 3,041 Total Stumpage 109,970 2,654 112,624 Delivered Wood (Domestic) 108,354 102,533 210,887 Delivered Wood (Export) 8,302 12,669 20,971 Total Delivered 116,656 115,202 231,858 Total Timber Sales $ 226,626 $ 117,856 $ 344,482 SIGNIFICANT CUSTOMERS For the year ended December 31, 2025, we closed on a 21,601 -acre transaction to a conservation-oriented buyer for $ 53.5 million, representing approximately 11 % of consolidated sales. For the year ended December 31, 2024, we closed on four Large Disposition transactions for a total of $ 495.0 million, representing approximately 50 % of consolidated sales. Individually, each large disposition represents 10% or more of consolidated sales. For the year ended December 31, 2023, we closed on a 55,000 -acre Large Disposition to Manulife Investment Management on behalf of clients for $ 242.2 million, representing approximately 31 % of consolidated sales. 99 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollar amounts in thousands unless otherwise stated) 5. TIMBERLAND ACQUISITIONS There were no timberland acquisitions during 2025. During 2024, we acquired approximately 7,000 acres of U.S. timberland located in Florida and Georgia through three transactions for an aggregate value of $ 22.8 million, which were funded with cash on hand. The following table summarizes the timberland acquisitions for the years ended December 31, 2025 and 2024: 2025 2024 Cost Acres Cost Acres Florida — — $ 15,660 5,175 Georgia — — 7,093 1,966 Total Acquisitions — — $ 22,753 7,141 6. 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 loss (income) 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. 100 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollar amounts in thousands unless otherwise stated) NONCONTROLLING INTERESTS IN THE OPERATING PARTNERSHIP Noncontrolling interests in the Operating Partnership represent the third-party ownership of Redeemable Operating Partnership Units (“OP Units”). Net income attributable to these noncontrolling interests is calculated based on the weighted average OP Units outstanding during the period as a percentage of the total weighted average units outstanding to the Operating Partnership’s net income for the period. These OP Units are classified as temporary equity in the Consolidated Balance Sheets because they are redeemable at the option of the unitholder. 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 the security at the time of redemption. The following table sets forth the Company’s noncontrolling interests in the Operating Partnership: Year Ended December 31, 2025 2024 Beginning noncontrolling interests in the Operating Partnership $ 51,843 $ 81,651 Adjustment of noncontrolling interests in the Operating Partnership ( 2,503 ) ( 13,150 ) Conversions of OP Units to common shares ( 11,800 ) ( 14,793 ) Net income attributable to noncontrolling interests in the Operating Partnership 6,225 4,834 Other comprehensive loss attributable to noncontrolling interests in the Operating Partnership ( 692 ) ( 803 ) Distributions to noncontrolling interests in the Operating Partnership (a) ( 2,610 ) ( 5,896 ) Total noncontrolling interests in the Operating Partnership $ 40,463 $ 51,843 (a) The year ended December 31, 2025 includes an additional special distribution of $ 1.40 per OP Unit, consisting of a combination of cash and OP Units. The cash portion of the distribution, totaling $ 0.6 million, was paid on December 12, 2025, to holders of record on October 24, 2025. The year ended December 31, 2024 includes an additional special distribution of $ 1.80 per OP Unit, also consisting of a combination of cash and OP Units. The cash portion, totaling $ 0.9 million, was paid on January 30, 2025, to holders of record on December 12, 2024. 101 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollar amounts in thousands unless otherwise stated) 7. 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 during the year. 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 for the three years ended December 31: 2025 2024 2023 Basic earnings per common share Numerator: Net income from continuing operations $ 74,067 $ 340,860 $ 159,314 Less: Net income from continuing operations attributable to NCI in the Operating Partnership ( 850 ) ( 4,510 ) ( 2,630 ) Less: Net (income) loss from continuing operations attributable to NCI in consolidated affiliates — ( 510 ) 47 Net income from continuing operations attributable to Rayonier Inc. $ 73,217 $ 335,840 $ 156,731 Net income from discontinued operations $ 406,346 $ 28,123 $ 19,181 Less: Net income from discontinued operations attributable to NCI in the Operating Partnership ( 5,375 ) ( 324 ) ( 275 ) Less: Net loss (income) from discontinued operations attributable to NCI in consolidated affiliates 192 ( 4,492 ) ( 2,144 ) Net income from discontinued operations attributable to Rayonier Inc. $ 401,163 $ 23,307 $ 16,762 Net income $ 480,413 $ 368,983 $ 178,495 Less: Net income attributable to NCI in the Operating Partnership ( 6,225 ) ( 4,834 ) ( 2,905 ) Less: Net loss (income) attributable to NCI in consolidated affiliates 192 ( 5,002 ) ( 2,097 ) Net income attributable to Rayonier Inc. $ 474,380 $ 359,147 $ 173,493 Denominator: Denominator for basic earnings per common share - weighted average shares 154,760,442 148,839,858 148,046,673 Basic earnings per common share attributable to Rayonier Inc.: Continuing operations $ 0.47 $ 2.26 $ 1.06 Discontinued operations $ 2.59 $ 0.16 $ 0.11 Basic earnings per common share $ 3.07 $ 2.41 $ 1.17 102 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollar amounts in thousands unless otherwise stated) The following table provides details of the calculation of diluted earnings per common share of the Company for the three years ended December 31: 2025 2024 2023 Diluted earnings per common share Numerator: Net income from continuing operations $ 74,067 $ 340,860 $ 159,314 Less: Net (income) loss from continuing operations attributable to NCI in consolidated affiliates — ( 510 ) 47 Net income from continuing operations attributable to Rayonier Inc. before net income attributable to NCI in the Operating Partnership $ 74,067 $ 340,350 $ 159,361 Net income from discontinued operations $ 406,346 $ 28,123 $ 19,181 Less: Net loss (income) from discontinued operations attributable to NCI in consolidated affiliates 192 ( 4,492 ) ( 2,144 ) Net income from discontinued operations attributable to Rayonier Inc. before net income attributable to NCI in the Operating Partnership $ 406,538 $ 23,631 $ 17,037 Net income $ 480,413 $ 368,983 $ 178,495 Less: Net loss (income) attributable to NCI in consolidated affiliates 192 ( 5,002 ) ( 2,097 ) Net income attributable to Rayonier Inc. before net income attributable to NCI in the Operating Partnership $ 480,605 $ 363,981 $ 176,398 Denominator: Denominator for basic earnings per common share - weighted average shares 154,760,442 148,839,858 148,046,673 Add: Dilutive effect of: Stock options — 41 472 Performance shares, restricted shares and restricted stock units 183,081 362,352 401,351 Noncontrolling interests in Operating Partnership units 1,909,803 2,066,102 2,618,699 Contingently issuable shares and units from special dividends 1,856,440 827,150 — Denominator for diluted earnings per common share - adjusted weighted average shares 158,709,766 152,095,503 151,067,195 Diluted earnings per common share attributable to Rayonier Inc.: Continuing operations $ 0.47 $ 2.24 $ 1.05 Discontinued operations $ 2.56 $ 0.16 $ 0.11 Diluted earnings per common share $ 3.03 $ 2.39 $ 1.17 2025 2024 2023 Anti-dilutive shares excluded from computations of diluted earnings per common share: Stock options, performance shares, restricted shares and restricted stock units 241,487 147,514 164,865 103 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (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 during the year. 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 for the three years ended December 31: 2025 2024 2023 Basic earnings per unit Numerator: Net income from continuing operations $ 74,067 $ 340,860 $ 159,314 Less: Net (income) loss from continuing operations attributable to NCI in consolidated affiliates — ( 510 ) 47 Net income from continuing operations available to unitholders $ 74,067 $ 340,350 $ 159,361 Net income from discontinued operations $ 406,346 $ 28,123 $ 19,181 Less: Net loss (income) from discontinued operations attributable to NCI in consolidated affiliates 192 ( 4,492 ) ( 2,144 ) Net income from discontinued operations available to unitholders $ 406,538 $ 23,631 $ 17,037 Net income $ 480,413 $ 368,983 $ 178,495 Less: Net loss (income) attributable to NCI in consolidated affiliates 192 ( 5,002 ) ( 2,097 ) Net income available to unitholders $ 480,605 $ 363,981 $ 176,398 Denominator: Denominator for basic earnings per unit - weighted average units 156,670,245 150,905,960 150,665,372 Basic earnings per unit attributable to Rayonier, L.P.: Continuing operations $ 0.47 $ 2.26 $ 1.06 Discontinued operations $ 2.59 $ 0.16 $ 0.11 Basic earnings per unit $ 3.07 $ 2.41 $ 1.17 104 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollar amounts in thousands unless otherwise stated) The following table provides details of the calculation of diluted earnings per unit of the Operating Partnership for the three years ended December 31: 2025 2024 2023 Diluted earnings per unit Numerator: Net income from continuing operations $ 74,067 $ 340,860 $ 159,314 Less: Net (income) loss from continuing operations attributable to NCI in consolidated affiliates — ( 510 ) 47 Net income from continuing operations available to unitholders $ 74,067 $ 340,350 $ 159,361 Net income from discontinued operations $ 406,346 $ 28,123 $ 19,181 Less: Net loss (income) from discontinued operations attributable to NCI in consolidated affiliates 192 ( 4,492 ) ( 2,144 ) Net income from discontinued operations available to unitholders $ 406,538 $ 23,631 $ 17,037 Net income $ 480,413 $ 368,983 $ 178,495 Less: Net loss (income) attributable to NCI in consolidated affiliates 192 ( 5,002 ) ( 2,097 ) Net income available to unitholders $ 480,605 $ 363,981 $ 176,398 Denominator: Denominator for basic earnings per unit - weighted average units 156,670,245 150,905,960 150,665,372 Add: Dilutive effect of unit equivalents: Stock options — 41 472 Performance shares, restricted shares and restricted stock units 183,081 362,352 401,351 Contingently issuable shares and units from special dividends 1,856,440 827,150 — Denominator for diluted earnings per unit - adjusted weighted average units 158,709,766 152,095,503 151,067,195 Diluted earnings per unit attributable to Rayonier, L.P.: Continuing operations $ 0.47 $ 2.24 $ 1.05 Discontinued operations $ 2.56 $ 0.16 $ 0.11 Diluted earnings per unit $ 3.03 $ 2.39 $ 1.17 2025 2024 2023 Anti-dilutive unit equivalents excluded from computations of diluted earnings per unit: Stock options, performance shares, restricted shares and restricted stock units 241,487 147,514 164,865 105 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollar amounts in thousands unless otherwise stated) 8. DEBT Our debt consisted of the following at December 31, 2025 and 2024: 2025 2024 Debt: Senior Notes due 2031 at a fixed interest rate of 2.75 % $ 450,000 $ 450,000 2015 Term Loan borrowings due 2028 at a variable interest rate of 5.44 % (a) 200,000 200,000 2016 Incremental Term Loan borrowings due 2026 at a variable interest rate of 5.59 % (a) 200,000 200,000 2021 Incremental Term Loan borrowings due 2029 at a variable interest rate of 5.76 % (a) 200,000 200,000 Total principal debt 1,050,000 1,050,000 Less: Current maturities of long-term debt, net of deferred financing costs of $ 18 ( 199,982 ) — Less: Unamortized discounts ( 2,078 ) ( 2,431 ) Less: Deferred financing costs ( 2,605 ) ( 3,159 ) Total long-term debt, net $ 845,335 $ 1,044,410 (a) Reflects variable interest rates as of December 31, 2025 . Principal payments due during the next five years and thereafter are as follows: Total 2026 $ 200,000 2027 — 2028 200,000 2029 200,000 2030 — Thereafter 450,000 Total debt $ 1,050,000 2.75 % SENIOR NOTES ISSUED MAY 2021 In May 2021, Rayonier, L.P. issued $ 450 million of 2.75 % Senior Notes due 2031, guaranteed by certain subsidiaries. Semi-annual payments of interest are due on these notes through maturity. The Senior Notes due 2031 were issued at 99.195 % of their face value. Net proceeds, after deducting approximately $ 3.9 million of underwriting discounts and issuance costs, were approximately $ 442.5 million. The discount and debt issuance costs are being amortized to interest expense over the term of the notes using the effective interest method. TERM CREDIT AGREEMENTS We have entered into several credit agreements with CoBank, ACB, as administrative agent, and a syndicate of Farm Credit institutions. Our term credit facilities provide for annual patronage payments, which are profit distributions made by the cooperative to its member-users. We account for these payments as a reduction to interest expense in the period the amounts are earned and become reasonably estimable. In August 2025, we amended and restated our credit agreements to extend the maturity of our Revolving Credit Facility (see "Revolving Credit Facility" below). In connection with this amendment, the 0.1 % credit spread adjustment previously added to the facilities was merged into the base rate for our term loans and eliminated for the Revolving Credit Facility. All of our term credit agreements are benchmarked to Daily Simple SOFR plus a fixed spread, subject to a pricing grid based on our leverage ratio. Interest-only payments are due through maturity; monthly for term loans and quarterly for the Revolving Credit Facility. We utilize interest rate swap agreements to fix the variable-rate exposure on the entirety of our outstanding term debt. 106 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollar amounts in thousands unless otherwise stated) The effective fixed interest rates provided below represent the contractual rate plus the impact of interest rate swaps, net of estimated patronage payments on the outstanding variable-rate debt as of December 31, 2025: Debt Principal Balance Periodic Interest Rate Effective Fixed Interest Rate (a) 2015 Term Loan $ 200,000 Daily Simple SOFR + 1.60 % 2.11 % 2016 Incremental Term Loan 200,000 Daily Simple SOFR + 1.75 % 2.39 % 2021 Incremental Term Loan 200,000 Daily Simple SOFR + 1.92 % 1.72 % (a) Effective interest rate is after consideration of interest rate swaps and estimated patronage. 2015 TERM LOAN AGREEMENT In August 2015, we entered into a $ 350 million term loan facility (“2015 Term Loan Facility”). During 2024, we repaid $ 150 million of the principal balance, recognizing a $ 0.2 million loss on early extinguishment of debt for the proportional write-off of unamortized deferred financing costs. This loss is recorded in the Consolidated Statements of Income and Comprehensive Income (Loss) under the caption “Other miscellaneous (expense) income, net.” 2016 INCREMENTAL TERM LOAN AGREEMENT In April 2016, we entered into an Incremental Term Loan Agreement to provide a 10-year , $ 300 million term loan facility (“2016 Incremental Term Loan Facility”), of which $ 100 million was subsequently repaid. As of December 31, 2025, the $ 200 million outstanding balance is classified as a current maturity of long-term debt, net of deferred financing costs. 2021 INCREMENTAL TERM LOAN AGREEMENT In June 2021, we entered into an Incremental Term Loan Agreement providing for a $ 200 million draw, which was fully executed in January 2022. REVOLVING CREDIT FACILITY In August 2025, we amended and restated our credit agreement, primarily to extend the maturity date of the Revolving Credit Facility to August 2030 and to reduce the commitment from $ 300 million to $ 200 million. In connection with the amendment, we recorded $ 0.8 million of deferred financing costs, which will be amortized to interest expense over the term of the extended credit agreement. See Note 24 — Other Assets for additional information about deferred financing costs related to revolving debt. As of December 31, 2025, the interest rate was Daily Simple SOFR plus 1.25 %, with an unused commitment fee of 0.175 %. We had no borrowings outstanding and available capacity of $ 199.3 million, net of $ 0.7 million securing an outstanding letter 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, we are subject to certain restrictive covenants. The most significant financial covenants, which are calculated on a trailing 12-month basis as of December 31, 2025, are summarized below: Covenant Requirement Actual Ratio Favorable Covenant EBITDA to consolidated interest expense should not be less than 2.5 to 1 9.5 to 1 7.0 Covenant debt to covenant net worth plus covenant debt shall not exceed 65 % 34 % 31 % 107 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollar amounts in thousands unless otherwise stated) In addition to the financial covenants listed above, our senior notes and credit facilities 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 our lenders providing a one-time modification to waive certain disposition-related covenants. Consequently, the consideration received from the New Zealand disposition was excluded from our defined disposition limits. At December 31, 2025, we were in compliance with all applicable covenants under our debt agreements. 9. 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 and designation. Gains and losses on derivatives that are designated and qualify as cash flow hedges are recorded in accumulated other comprehensive income (“AOCI”) and subsequently reclassified into earnings when the hedged transaction affects earnings. For derivatives not designated as hedges, changes in fair value are recognized immediately in earnings. INTEREST RATE PRODUCTS We are exposed to cash flow interest rate risk on our variable-rate debt. To mitigate this exposure, we utilize variable-to-fixed interest rate swaps designated as cash flow hedges. The gains or losses on these swaps are recorded in AOCI and subsequently reclassified to interest expense in the same period during which the hedged forecasted interest payments affect earnings. Upon de-designation of a hedge, any remaining AOCI balance is reclassified into earnings over the original term of the forecasted transaction, provided the transaction remains probable of occurring. If it is probable that the forecasted transaction will not occur by the end of the originally specified time period, the gain or loss in AOCI is reclassified into earnings immediately. INTEREST RATE SWAPS The following table contains information on the outstanding interest rate swaps as of December 31, 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 years ended December 31, 2025, 2024 and 2023: Location on Statement of Income and Comprehensive Income (Loss) 2025 2024 2023 Derivatives designated as cash flow hedges: Interest rate products Other comprehensive income (loss), relating to continuing operations ($ 3,830 ) $ 21,795 $ 10,265 Interest expense, net ( 17,773 ) ( 28,406 ) ( 26,311 ) 108 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (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 $ 9.9 million. The following table provides details of the amounts expected to be reclassified into earnings: Amount expected to be reclassified into earnings in next 12 months Derivatives designated as cash flow hedges: Interest rate products (a) $ 9,884 Total estimated gain on derivatives contracts $ 9,884 (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 December 31, 2025 and 2024: Notional Amount 2025 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 December 31, 2025 and 2024. Changes in balances of derivative financial instruments are recorded as operating activities in the Consolidated Statements of Cash Flows: Fair Value Assets (Liabilities) (a) Location on Balance Sheet 2025 2024 Derivatives designated as cash flow hedges: Interest rate swaps Other current assets $ 1,404 — Other assets 25,438 49,353 Total derivative assets $ 26,842 $ 49,353 Other non-current liabilities ($ 23 ) — Total derivative liabilities ($ 23 ) — (a) See Note 10 — 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. 109 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollar amounts in thousands unless otherwise stated) 10. 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 at December 31, 2025 and 2024, using market information valuation methodologies we believe are appropriate under GAAP: December 31, 2025 December 31, 2024 Carrying Amount Fair Value Carrying Amount Fair Value Asset (Liability) (a) Level 1 Level 2 Level 1 Level 2 Cash and cash equivalents $ 842,944 $ 842,944 — $ 303,065 $ 303,065 — Restricted cash, current (b) — — — 19,366 19,366 — Restricted cash, non-current (b) 495 495 — 676 676 — Current maturities of long-term debt (c) ( 199,982 ) — ( 200,000 ) — — — Long-term debt (c) ( 845,335 ) — ( 806,080 ) ( 1,044,410 ) — ( 980,970 ) Interest rate swaps (d) 26,819 — 26,819 49,353 — 49,353 Noncontrolling interests in the Operating Partnership (e) 40,463 — 36,435 51,843 — 51,843 (a) We did not have Level 3 assets or liabilities at December 31, 2025 and 2024. (b) Restricted cash includes proceeds from like-kind exchange sales held by a third-party intermediary and cash held in escrow. See Note 22 — 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 8 — Debt for additional information. (d) See Note 9 — 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 6 — 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. 110 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollar amounts in thousands unless otherwise stated) 11. COMMITMENTS At December 31, 2025, the future minimum payments under non-cancellable commitments were as follows: Environmental Remediation (a) Real Estate Projects (b) Commitments (c) Total 2026 $ 3,181 $ 28,421 $ 1,115 $ 32,717 2027 2,636 25,947 650 29,233 2028 260 10,660 240 11,160 2029 281 397 77 755 2030 251 2,794 82 3,127 Thereafter 2,661 2,681 467 5,809 $ 9,270 $ 70,900 $ 2,631 $ 82,801 (a) Environmental remediation represents our estimate of potential liability associated with environmental contamination and Natural Resource Damages (NRD) in Port Gamble, Washington. See Note 13 — Environmental and Natural Resource Damage Liabilities for additional information. (b) Real Estate projects primarily consist of payments expected to be made on our Wildlight and Heartwood development projects. (c) Commitments include other purchase obligations. 12. CONTINGENCIES We have been named as a defendant in various lawsuits and claims arising in the normal course of business. While we maintain 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. Except as discussed in Note 13 — Environmental and Natural Resource Damage Liabilities , 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, liquidity, or cash flows. 111 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollar amounts in thousands unless otherwise stated) 13. 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 December 31, 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 ( 4,370 ) Increase in liabilities 5,747 Total Balance at December 31, 2025 9,270 Less: Current portion ( 3,181 ) Non-current portion at December 31, 2025 $ 6,089 We periodically examine whether the contingent liabilities related to the environmental matters described above are probable and reasonably estimable based on experience and ongoing developments in those matters, including continued study and analysis of ongoing remediation obligations. During the year ended December 31, 2025, with the assistance of independent environmental consultants and taking into consideration inflation, investigation and remediation actions previously completed, new information available during the period and ongoing discussions with the Trustees, we completed a comprehensive long-term analysis and cost assessment related to our ongoing environmental remediation and NRD obligations. As a result of this analysis, we increased the accrual for environmental and NRD liabilities by $ 5.7 million , which are recorded on an undiscounted basis. 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. For further information on the timing and amount of future payments related to our environmental remediation liabilities, see Note 11 — Commitments . 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. 112 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollar amounts in thousands unless otherwise stated) 14. GUARANTEES We provide financial guarantees as required by creditors, insurance programs, and various governmental agencies. As of December 31, 2025, the following financial guarantees were outstanding: Financial Commitments (a) Maximum Potential Payment Standby letter of credit (b) $ 650 Surety bonds (c) 39,981 Total financial commitments $ 40,631 (a) We have not recorded any liabilities for these financial commitments in the Consolidated Balance Sheets. The guarantees are not subject to measurement, as the guarantees are dependent on our own performance. (b) The letter of credit supports various insurance related agreements. This letter of credit will expire in 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, as well as environmental remediation activities at Port Gamble (Kitsap County, Washington). These bonds provide financial assurance to regulatory agencies and municipalities that we will complete specified infrastructure and restoration work. Our surety bonds expire at various dates through 2028 and are expected to be renewed as required to meet ongoing obligations. 113 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollar amounts in thousands unless otherwise stated) 15. 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 December 31, 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 ( 1,827 ) ( 25,920 ) ( 27,747 ) Amortization of parcel real estate development investments — ( 6,303 ) ( 6,303 ) Timber depletion from harvesting activities and basis of timber sold in real estate sales ( 2,926 ) — ( 2,926 ) Capitalized real estate development investments (b) — 28,190 28,190 Capital expenditures (silviculture) 225 — 225 Intersegment transfers 9,315 — 9,315 Other (c) ( 7,048 ) — ( 7,048 ) Total Balance at December 31, 2025 85,973 46,951 132,924 Less: Current portion (a) ( 1,850 ) ( 4,984 ) ( 6,834 ) Non-current portion at December 31, 2025 $ 84,123 $ 41,967 $ 126,090 (a) The current portion of Higher and Better Use Timberlands and Real Estate Development Investments is recorded in Inventory. See Note 16 — Inventory for additional information. (b) Capitalized real estate development investments include $ 1.0 million of capitalized interest and $ 5.7 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. Following a long-lived asset impairment analysis, it was determined that the carrying value of these assets exceeded their estimated fair value. This impairment charge is 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 a discounted future cash flow model (a Level 3 fair value measurement), incorporating updated market-based assumptions as of the measurement date. 114 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollar amounts in thousands unless otherwise stated) 16. INVENTORY As of December 31, 2025 and 2024, our inventory consisted entirely of finished goods, as follows: 2025 2024 Finished goods inventory Real estate inventory (a) $ 6,834 $ 29,608 Log inventory — 1,271 Total inventory $ 6,834 $ 30,879 (a) Represents the cost of HBU real estate expected to be sold, including capitalized development investments. See Note 15 — Higher and Better Use Timberlands and Real Estate Development Investments for additional information. 17. LEASES TIMBERLAND LEASES Our timberland leases typically have initial terms of approximately 30 to 65 years, with renewal provisions in some cases. OTHER NON-TIMBERLAND LEASES In addition to timberland holdings, we lease properties for certain office locations. Significant leased properties include a regional office in Lufkin, Texas. LEASE MATURITIES, LEASE COST AND OTHER LEASE INFORMATION The following table details our undiscounted lease obligations as of December 31, 2025 by type of lease and year of expiration: Year of Expiration Lease Obligations Total 2026 2027 2028 2029 2030 Thereafter Operating lease liabilities $ 21,475 $ 2,708 $ 2,555 $ 2,213 $ 2,184 $ 2,174 $ 9,641 Total Undiscounted Cash Flows $ 21,475 $ 2,708 $ 2,555 $ 2,213 $ 2,184 $ 2,174 $ 9,641 Imputed interest ( 5,189 ) Balance at December 31, 2025 $ 16,286 Less: Current portion ( 2,617 ) Non-current portion at December 31, 2025 $ 13,669 The following table details components of our lease cost for the years ended December 31, 2025, 2024, and 2023: Year Ended December 31, Lease Cost Components 2025 2024 2023 Operating lease cost $ 3,308 $ 3,627 $ 4,449 Variable lease cost (a) 383 395 533 Total lease cost (b) $ 3,691 $ 4,022 $ 4,982 (a) The majority of timberland leases are subject to increases or decreases based on either the Consumer Price Index, Producer Price Index or market rates. (b) Short-term leases with an initial term of 12 months or less are not recorded on the balance sheet.Related costs are recognized on a straight line basis over the lease term. Short-term lease expense was not material for the year ended December 31, 2025. 115 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollar amounts in thousands unless otherwise stated) The following table provides supplemental cash flow information related to leases for the years ended December 31, 2025, 2024 and 2023: Year Ended December 31, Supplemental Cash Flow Information Related to Leases: 2025 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,216 $ 1,407 $ 2,081 Investing cash flows from operating leases 2,092 2,220 2,368 Total cash flows from operating leases $ 3,308 $ 3,627 $ 4,449 Weighted-average remaining lease term in years - operating leases 10 11 11 Weighted-average discount rate - operating leases 6 % 6 % 6 % We apply the following practical expedients as allowed under ASC 842: Practical Expedient Description Short-term leases We do not record right-of-use assets or liabilities for short-term leases (a lease that at commencement date has a lease term of 12 months or less and does not contain a purchase option that is reasonably certain to be exercised). Separation of lease and non-lease components We do not separate non-lease components from the associated lease components if they have the same timing and pattern of transfer and, if accounted for separately, would both be classified as an operating lease. 18. OTHER OPERATING (EXPENSE) INCOME, NET The following table provides the composition of other operating (expense) income, net for the three years ended December 31: 2025 2024 2023 (Loss) gain on sale or disposal of property, plant & equipment ($ 51 ) $ 13 $ 37 Costs related to the merger with PotlatchDeltic (a) ( 6,303 ) — — Restructuring charges (b) ( 1,110 ) ( 1,139 ) — Costs related to disposition initiatives (c) — ( 849 ) — Miscellaneous income, net 209 174 5 Total ($ 7,255 ) ($ 1,801 ) $ 42 (a) Costs related to the merger with PotlatchDeltic include legal, accounting, due diligence, consulting and other costs related to the merger with PotlatchDeltic, which subsequently closed on January 30, 2026. (b) Restructuring charges include severance costs related to workforce optimization initiatives. (c) 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. 116 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollar amounts in thousands unless otherwise stated) 19. EMPLOYEE BENEFIT PLANS We previously sponsored a qualified non-contributory defined benefit pension plan and an unfunded excess benefit plan, both of which have been terminated and fully settled. The Defined Benefit Plan was settled in March 2024 through the purchase of annuity contracts. In connection with the plan’s settlement, we made a cash contribution of $ 2.7 million to fully fund the plan. Additionally, a pre-tax non-cash pension settlement charge of $ 5.7 million was recognized as a component of AOCI due to actuarial losses in the year ended December 31, 2024. The unfunded plan was settled in the third quarter of 2024 with lump sum cash payments of $ 1.2 million. A pre-tax non-cash pension settlement charge related to the actuarial losses was recognized in 2024 as a component of AOCI. See Note 25 — Accumulated Other Comprehensive Income (Loss) for additional information. The following tables set forth the change in the projected benefit obligation and plan assets and reconcile the funded status and the amounts recognized in the Consolidated Balance Sheets for the pension and postretirement benefit plans for the two years ended December 31: Pension Postretirement 2025 2024 2025 2024 Change in Projected Benefit Obligation Projected benefit obligation at beginning of year — $ 63,142 $ 1,404 $ 1,491 Service cost — — 3 3 Interest cost — 535 76 70 Actuarial gain — ( 5,046 ) ( 7 ) ( 145 ) Benefits paid — ( 742 ) ( 16 ) ( 15 ) Expenses paid — ( 10 ) — — Settlement — ( 57,879 ) — — Projected benefit obligation at end of year — — $ 1,460 $ 1,404 Change in Plan Assets Fair value of plan assets at beginning of year — $ 54,750 — — Actual return on plan assets — 603 — — Employer contributions — 3,441 16 15 Benefits paid — ( 742 ) ( 16 ) ( 15 ) Other expense — ( 173 ) — — Settlement — ( 57,879 ) — — Fair value of plan assets at end of year — — — — Funded Status at End of Year Net accrued benefit cost — — ($ 1,460 ) ($ 1,404 ) Amounts Recognized in the Consolidated Balance Sheets Consist of: Current liabilities (a) — — ($ 63 ) ($ 57 ) Non-current liabilities (a) — — ( 1,397 ) ( 1,347 ) Net amount recognized — — ($ 1,460 ) ($ 1,404 ) (a) Current postretirement benefit plan liabilities are recorded within “Accrued payroll and benefits,” while non-current liabilities are recorded within “Other non-current liabilities” on the Consolidated Balance Sheets. 117 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollar amounts in thousands unless otherwise stated) For postretirement plans with accumulated benefit obligations in excess of plan assets, the following table sets forth the accumulated benefit obligations and the fair value of plan assets for the two years ended December 31: 2025 2024 Accumulated postretirement benefit obligation $ 1,460 $ 1,404 Fair value of plan assets — — OTHER COMPREHENSIVE INCOME (LOSS) Net gains and losses recognized in other comprehensive income (loss) for the three years ended December 31 are as follows: Pension Postretirement 2025 2024 2023 2025 2024 2023 Net gains (losses) — $ 5,106 ($ 1,438 ) $ 7 $ 145 ($ 11 ) Net gains and losses reclassified from other comprehensive income (loss) and recognized as a component of pension and postretirement expense for the three years ended December 31 are as follows: Pension Postretirement 2025 2024 2023 2025 2024 2023 Amortization of losses (gains) — $ 1 $ 6 ($ 6 ) — — Net settlement loss — 5,816 2,036 — — — ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (“AOCI”) Net gains that have not yet been included in pension and postretirement expense for the two years ended December 31, but have been recognized as a component of AOCI are as follows: Pension Postretirement 2025 2024 2025 2024 Net gains — — $ 232 $ 230 AOCI — — $ 232 $ 230 NET PENSION AND POSTRETIREMENT BENEFIT COST The following tables set forth the components of net pension and postretirement benefit cost that have been recognized during the three years ended December 31: Pension Postretirement 2025 2024 2023 2025 2024 2023 Components of Net Periodic Benefit Cost Service cost — — — $ 3 $ 3 $ 4 Interest cost — 535 3,374 76 70 70 Expected return on plan assets — ( 542 ) ( 3,439 ) — — — Amortization of losses (gains) — 1 6 ( 6 ) — — Settlement expense — 5,816 2,036 — — — Net periodic benefit cost — $ 5,810 $ 1,977 $ 73 $ 73 $ 74 The service cost component of our benefit expense is recorded within the operating expense line item “Selling and general expenses” within the Consolidated Statements of Income and Comprehensive Income (Loss). All other components of the benefit costs expense are included within the “Other miscellaneous (expense) income, net” line item of the Consolidated Statements of Income and Comprehensive Income (Loss). 118 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollar amounts in thousands unless otherwise stated) VALUATION ASSUMPTIONS The following table sets forth the principal assumptions inherent in the determination of benefit obligations and net periodic benefit cost of the pension and postretirement benefit plans as of December 31: Pension Postretirement 2025 2024 2023 2025 2024 2023 Assumptions used to determine benefit obligations at December 31: Discount rate N/A N/A 4.99 % 5.42 % 5.49 % 4.81 % Assumptions used to determine net periodic benefit cost for years ended December 31: Discount rate N/A 5.00 % 4.96 % 5.49 % 4.81 % 5.01 % Expected long-term return on plan assets N/A 4.97 % 4.97 % N/A N/A N/A Disclosures regarding the investment of plan assets and net asset value measurements are not presented as the plans held no assets as of December 31, 2025 and 2024. CASH FLOWS Our expected benefit payments to be made for the next 10 years are as follows: Postretirement Benefits 2026 $ 63 2027 68 2028 73 2029 77 2030 82 2031-2035 467 DEFINED CONTRIBUTION PLANS We provide a defined contribution plan to all of our eligible employees. Company contributions charged to expense for these plans were $ 2.6 million, $ 2.7 million and $ 2.5 million for the years ended December 31, 2025, 2024 and 2023, respectively. The defined contribution plan includes Rayonier common shares with a fair market value of $ 5.5 million and $ 6.4 million at December 31, 2025 and 2024, respectively. As of June 1, 2016, the Rayonier Inc. Common Stock Fund was closed to new contributions. Transfers out of the fund will continue to be permitted, but no new investments or transfers into the fund are allowed. 119 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollar amounts in thousands unless otherwise stated) 20. INCENTIVE STOCK PLANS Approved by shareholders on May 18, 2023, the 2023 Rayonier Incentive Stock Plan (the “Stock Plan”) authorizes up to 3.0 million shares for equity-based awards. At December 31, 2025, 1.6 million shares remained available for future grants. The Stock Plan provides for the reuse of shares from forfeited or cancelled awards, including those withheld for taxes, and allows for new common shares to be issued upon exercise or vesting. No further grants may be made under prior plans. The Company recognizes compensation expense on a straight-line basis over the requisite service period or retirement eligibility and accounts for forfeitures as they occur. A summary of our stock-based incentive compensation cost is presented below: 2025 2024 2023 Selling and general expenses $ 9,432 $ 12,778 $ 12,710 Cost of sales 1,133 1,122 986 Timber and Timberlands, net (a) 264 332 306 Other operating expense, net 175 — — Total stock-based incentive compensation $ 11,004 $ 14,232 $ 14,002 Tax benefit recognized related to stock-based incentive compensation expense (b) $ 521 $ 695 $ 677 (a) Represents amounts capitalized as part of the overhead allocation of timber-related costs. (b) A valuation allowance is recorded against the tax benefit recognized as we do not expect to be able to realize the benefit in the future. FAIR VALUE CALCULATIONS BY AWARD RESTRICTED STOCK UNITS & RESTRICTED STOCK Restricted stock units granted to employees generally vest ratably over four years. Special purpose restricted stock units may be granted with alternative vesting schedules based on defined service periods or retirement eligibility. Holders of unvested restricted stock and restricted stock unit awards receive dividend equivalent payments. Restricted stock granted to the Board of Directors vests immediately upon issuance and is subject to specific holding requirements. The fair value of restricted stock units and restricted stock is based on the Company’s stock price on the grant date. As of December 31, 2025, there was $ 6.9 million of unrecognized compensation cost attributable to our restricted stock units. We expect to recognize this cost over a weighted average period of 2.4 years. As of December 31, 2025, there was no unrecognized compensation cost attributable to our restricted stock. 120 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollar amounts in thousands unless otherwise stated) A summary of our restricted stock units is presented below: 2025 2024 2023 Restricted stock units granted 246,662 212,415 207,006 Weighted average price of restricted stock units granted $ 27.56 $ 32.46 $ 32.93 Intrinsic value of restricted stock units outstanding (a) $ 10,341 $ 12,673 $ 16,068 Grant date fair value of restricted stock units vested 6,982 5,949 4,454 Cash used to purchase common shares from current and former employees to pay withholding tax requirements on restricted stock units vested 2,166 2,186 1,665 (a) Intrinsic value of restricted stock units outstanding is based on the market price of the Company’s stock at December 31, 2025, 2024 and 2023. 2025 Number of Shares Weighted Average Grant Date Fair Value Non-vested Restricted Stock Units at January 1, 485,552 $ 33.17 Granted 246,662 27.56 Vested ( 222,530 ) 31.37 Cancelled ( 32,043 ) 31.33 Non-vested Restricted Stock Units at December 31, 477,641 $ 31.23 A summary of our restricted stock is presented below: 2025 2024 2023 Restricted stock granted 44,924 32,928 36,403 Weighted average price of restricted stock granted $ 24.21 $ 30.37 $ 30.22 Intrinsic value of restricted stock outstanding (a) — — $ 66 Grant date fair value of restricted stock vested 1,088 1,047 1,647 Cash used to purchase common shares from current and former employees to pay withholding tax requirements on restricted shares vested — 20 208 (a) Intrinsic value of restricted stock outstanding is based on the market price of the Company’s stock at December 31, 2023. 2025 Number of Shares Weighted Average Grant Date Fair Value Non-vested Restricted Stock at January 1, — — Granted 44,924 $ 24.21 Vested ( 44,924 ) 24.21 Non-vested Restricted Stock at December 31, — — 121 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollar amounts in thousands unless otherwise stated) PERFORMANCE SHARE UNITS Performance share units generally vest after a three-year performance period, with the final payout contingent upon total shareholder return relative to a selected peer group. Because the payout is based on a market condition, the grant-date fair value is determined using a Monte Carlo simulation model. As of December 31, 2025, there was $ 5.1 million of unrecognized compensation cost related to our performance share unit awards, which is attributable to awards granted in 2023, 2024 and 2025. This cost is expected to be recognized over a weighted average period of 1.7 years. A summary of our performance share units is presented below: 2025 2024 2023 Common shares reserved for performance shares granted during year 294,574 320,640 285,863 Weighted average fair value of performance share units granted $ 33.00 $ 34.51 $ 37.77 Intrinsic value of outstanding performance share units (a) $ 10,551 $ 11,463 $ 12,730 Fair value of performance shares vested 3,696 6,388 5,863 Cash used to purchase common shares from current and former employees to pay withholding tax requirements on performance shares vested 732 1,975 2,342 (a) Intrinsic value of outstanding performance share units is based on the market price of the Company's stock at December 31, 2025, 2024 and 2023. 2025 Number of Units Weighted Average Grant Date Fair Value Outstanding Performance Share units at January 1, 439,186 $ 38.50 Granted 186,462 33.00 Units Distributed ( 109,370 ) 45.67 Other Cancellations/Adjustments ( 28,917 ) 36.16 Outstanding Performance Share units at December 31, 487,361 $ 34.92 Expected volatility is based on the Company’s historical daily returns over a three-year period, and the risk-free rate is derived from the 3-year U.S. Treasury rate at the grant date. Dividend yields are excluded from the fair value calculation as awards receive dividend equivalents. A liquidity discount is applied to grants for Vice Presidents and above due to a one-year post-vest holding period. The following table provides an overview of the assumptions used in calculating the fair value of the awards granted for the three years ended December 31: 2025 2024 2023 Expected volatility 25.3 % 26.4 % 29.9 % Risk-free rate 3.8 % 4.5 % 3.7 % Liquidity discount applied to grants with a post-vesting holding restriction 2.9 % 3.9 % 4.7 % 122 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollar amounts in thousands unless otherwise stated) 21. INCOME TAXES Rayonier is a REIT under the Internal Revenue Code and generally is not subject to U.S. federal or state income tax on income distributed to shareholders. As of December 31, 2025, Rayonier owns a 99.0 % int erest 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 unitholders (including the Company) on a Schedule K-1 for inclusion in each unitholder’s income tax return. Certain activities, including log trading and specific real estate operations, such as the entitlement, development and sale of HBU properties, are conducted through our TRS, which are subject to federal and state corporate income tax. PROVISION FOR INCOME TAXES FROM CONTINUING OPERATIONS Income from continuing operations before income taxes for each of the three years ended December 31 follows: 2025 2024 2023 Domestic - U.S. $ 74,594 $ 339,838 $ 159,607 Total $ 74,594 $ 339,838 $ 159,607 The provision for income tax (expense) benefit for each of the three years ended December 31 follows: 2025 2024 2023 Current U.S. federal ($ 137 ) — — State ( 390 ) ( 200 ) ( 292 ) ( 527 ) ( 200 ) ( 292 ) Deferred U.S. federal 5,296 ( 2,260 ) 8,386 State 281 1,211 1,187 5,577 ( 1,049 ) 9,573 Changes in valuation allowance ( 5,577 ) 2,271 ( 9,574 ) Total ($ 527 ) $ 1,022 ($ 293 ) A reconciliation of the U.S. federal statutory income tax rate to the actual income tax rate for each of the three years ended December 31 follows: 2025 2024 2023 U.S. federal statutory income tax rate ($ 15,665 ) ( 21.0 ) % ($ 71,366 ) ( 21.0 ) % ($ 33,517 ) ( 21.0 ) % U.S. REIT income 15,900 21.3 77,254 22.7 42,501 26.6 Cellulosic Biofuel Producer tax credit 10,500 14.1 ( 10,814 ) ( 3.2 ) — — Change in valuation allowance ( 5,295 ) ( 7.1 ) 3,126 0.9 ( 8,374 ) ( 5.2 ) State income tax, net of federal benefit (a) ( 390 ) ( 0.5 ) ( 200 ) — ( 292 ) ( 0.2 ) Permanent nontaxable or nondeductible items ( 218 ) ( 0.3 ) ( 374 ) ( 0.1 ) ( 462 ) ( 0.3 ) Net operating loss adjustment ( 5,757 ) ( 7.7 ) — — — — Other 398 0.5 3,396 1.0 ( 149 ) ( 0.1 ) Income tax (expense) benefit as reported for net income ($ 527 ) ( 0.7 ) % $ 1,022 0.3 % ($ 293 ) ( 0.2 ) % (a) State taxes in Texas and Louisiana make up the majority of the tax effect in this category. 123 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollar amounts in thousands unless otherwise stated) The Company’s effective tax rate is below the 21 % U.S. statutory rate primarily due to tax benefits associated with being a REIT. Cash taxes paid by jurisdiction for each of the three years ended December 31 follows: 2025 2024 2023 State (a) $ 278 $ 231 $ 229 Total $ 278 $ 231 $ 229 (a) Texas and Louisiana make up the majority of the state taxes paid. DEFERRED TAXES Deferred income taxes result from differences between the timing of recognizing revenues and expenses for financial book purposes versus income tax purposes. The nature of the temporary differences and the resulting net deferred tax asset/liability for the two years ended December 31 follows: 2025 2024 Gross deferred tax assets: Pension, postretirement and other employee benefits $ 88 $ 149 Cellulosic Biofuel Producer Credit tax credit carry forwards 13,374 — Capitalized real estate costs 4,735 3,570 U.S. TRS net operating loss 29,028 37,284 Other 7,143 8,166 Total gross deferred tax assets 54,368 49,169 Less: Valuation allowance ( 53,724 ) ( 48,147 ) Total deferred tax assets after valuation allowance $ 644 $ 1,022 Gross deferred tax liabilities: Other ( 727 ) ( 1,105 ) Total gross deferred tax liabilities ( 727 ) ( 1,105 ) Net deferred tax liability reported as noncurrent ($ 83 ) ($ 83 ) Net operating loss (“NOL”) and tax credit carryforwards as of the two years ended December 31 follows: Tax Effected Balance Expiration 2025 U.S. Federal NOL Carryforwards- Post TCJA (a) $ 24,438 None U.S State NOL Carryforwards (b) 4,590 Various Cellulosic Biofuel Producer Credit (c) 13,374 2027 2024 U.S. Federal NOL Carryforwards- Post TCJA (a) $ 32,451 None U.S State NOL Carryforwards (b) 4,833 Various Cellulosic Biofuel Producer Credit — 2024 (a) The Tax Cuts and Jobs Act (TCJA) was signed into law on December 22, 2017. The TCJA lifted the 20-year federal NOL Carryforward period. Net operating losses generated after December 31, 2017 have an indefinite carryforward period. (b) The U.S. state NOL is made up of several jurisdictions that expire in various future years. No state NOL is set to expire before December 31, 2033. (c) The One, Big, Beautiful Bill Act (P.L. 119-21) was signed into law on July 4, 2025. This act allowed unused cellulosic or second generation biofuel producer credits that expired in 2024 to be claimed for an additional three years. 124 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollar amounts in thousands unless otherwise stated) We record a valuation allowance to reduce the carrying amounts of deferred tax assets if it is more likely than not that such deferred tax assets will not be realized. Since 2015, we have had a 100 % valuation allowance against the U.S. taxable REIT subsidiary's deferred tax assets, net of deferred tax liabilities. During 2025, the net deferred tax assets increased by $ 5.6 million. As a result, we recorded a change in the valuation allowance of $ 5.6 million related to the U.S. TRS's deferred tax assets, net of liabilities. TAX STATUTES Rayonier L.P., the Operating Partnership, remains subject to U.S. Internal Revenue Service examinations for the 2021 through 2024 tax years. All other REIT and TRS entities remain open for the 2022 through 2024 tax years. TAX CHARACTERISTICS OF DIVIDEND DISTRIBUTIONS The taxable nature of the dividend distributions paid for each of the three years ended December 31 follows: 2025 2024 2023 Total dividends/distributions paid per common share/unit (a) $ 2.49 $ 2.94 $ 1.34 Tax characteristics: Capital gain 100 % 100 % 100 % (a) The year ended December 31, 2025 includes an additional dividend of $ 1.40 per common share, consisting of a combination of cash and the Company’s common shares. The dividend was paid December 12, 2025, to shareholders of record on October 24, 2025. This additional dividend will be considered a 2025 distribution for federal income tax purposes. The year ended December 31, 2024 includes an additional dividend of $ 1.80 per common share, consisting of a combination of cash and the Company’s common shares. The dividend was paid January 30, 2025, to shareholders of record on December 12, 2024. This additional dividend was considered a 2024 distribution for federal income tax purposes. The year ended December 31, 2023 includes an additional cash dividend of $ 0.20 per common share. The dividend was paid January 12, 2024, to shareholders of record on December 29, 2023. This additional cash dividend was considered a 2023 distribution for federal income tax purposes. 125 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollar amounts in thousands unless otherwise stated) 22. 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 for the two years ended December 31: 2025 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 495 676 Total restricted cash, non-current: 495 676 Total restricted cash shown in the Consolidated Balance Sheets 495 20,042 Cash and cash equivalents 842,944 303,065 Total cash, cash equivalents and restricted cash from continuing operations shown in the Consolidated Statements of Cash Flows $ 843,439 $ 323,107 126 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollar amounts in thousands unless otherwise stated) 23. 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 $ 5.4 million and $ 5.4 million, as of December 31, 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 for the year ended December 31, 2025. We recognized an immaterial impairment charge during year ended December 31, 2024, on assets held for sale as of December 31, 2024, which is recorded in the Consolidated Statements of Income and Comprehensive Income (Loss) under the caption “Other operating (expense) income, net.” 24. OTHER ASSETS The following table provides the composition of Other Assets for the two years ended December 31: 2025 2024 Long-term derivative contracts (a) $ 25,438 $ 49,353 Patronage equity (b) 8,818 9,340 Long-term trade receivables (c) 8,345 — Long-term notes receivable (b) 7,400 7,400 Long-term prepaid and secondary roads (b) 3,676 5,159 Capitalized software costs (b) 3,256 4,494 Other (d) 3,082 2,530 Total $ 60,015 $ 78,276 (a) See Note 1 — Summary of Significant Accounting Policies and Note 9 — Derivative Financial Instruments and Hedging Activities for further information on derivatives including their classification on the Consolidated Balance Sheets. (b) See Note 1 — Summary of Significant Accounting Policies for additional information. (c) Represents amounts related to improved development sales, including fees earned, that are expected to be collected beyond one year. (d) Includes assets held in trust related to the Executive Severance Pay Plan, which provides benefits to eligible executives in the event of a change in control, deferred financing costs related to the Company’s Revolving Credit Facility and long term deposits. 127 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollar amounts in thousands unless otherwise stated) 25. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table presents the changes in AOCI, by component for the years ended December 31, 2025 and 2024. All amounts are presented net of tax and exclude portions attributable to noncontrolling interests. Foreign currency translation losses 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 AOCI — — ( 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 before reclassifications 19,766 — 2,256 (a) 7 22,029 ( 104 ) 21,925 Amounts reclassified from AOCI — — ( 16,868 ) ( 6 ) (b) ( 16,874 ) 796 ( 16,078 ) Amounts reclassified from AOCI 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 ) ( 15,606 ) 1 34,223 692 34,915 Balance as of December 31, 2025 — — $ 26,127 $ 231 $ 26,358 ($ 1,872 ) $ 24,486 (a) The year ended December 31, 2025, includes $ 3.8 million of other comprehensive loss related to interest rate products. The year ended December 31, 2024, includes $ 21.8 million of other comprehensive income related to interest rate products. See Note 9 — Derivative Financial Instruments and Hedging Activities for additional information. (b) This component of other comprehensive income (loss) 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. See Note 19 — Employee Benefit Plans for additional information. (c) The year ended December 31, 2025, includes $ 29.1 million of other comprehensive loss related to the deconsolidation of discontinued operations. This amount was reclassified from AOCI to “Gain on sale of discontinued operations” in the Consolidated Statements of Income and Comprehensive Income (Loss) upon completion of the disposition. 128 RAYONIER INC. AND SUBSIDIARIES RAYONIER, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (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 years ended December 31, 2025 and 2024: Details about accumulated other comprehensive income (loss) components Amount reclassified from accumulated other comprehensive income (loss) Affected line item in the Income Statement 2025 2024 Realized loss on foreign currency exchange contracts $ 1,592 $ 1,104 Income from operations of discontinued operations, net of tax Realized loss (gain) on foreign currency option contracts 40 ( 58 ) Income from operations of discontinued operations, net of tax Noncontrolling interests ( 376 ) ( 241 ) Comprehensive income attributable to noncontrolling interests Realized gain on interest rate contracts ( 17,773 ) ( 28,406 ) Interest expense, net Income tax effect from net loss on foreign currency contracts ( 351 ) ( 225 ) Income from operations of discontinued operations, net of tax Net gain on cash flow hedges reclassified from accumulated other comprehensive income (loss) ($ 16,868 ) ($ 27,826 ) 129 Table of Contents Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None.