Rayonier Inc. REIT

Welcome and thank you for joining Ray and Nir's first quarter 2022 teleconference call. At this time, all participants are in a listen-only mode. During the question and answer session, please press star 1 on your telephone keypad. Today's conference is being recorded. If you have any objections, you may disconnect at this time. Now I will turn the meeting over to Mr. Colin Meeks, Vice President, Capital Markets and Strategic Planning.

Thank you and good morning. Welcome to Ray Anear's Investor Teleconference, covering first quarter earnings. Our earnings statements and financial supplement were released yesterday afternoon and are available on our website at rayanear.com. I would like to remind you that in these presentations, we include forward-looking statements made pursuant to the safe harbor provisions of federal securities laws. Our earnings release informs 10-K and 10-Q filed with the SBC list some of the factors that may cause actual results to differ materially from the forward-looking statements we may make. They are also referenced on page two of our financial supplement. Throughout these presentations, we will also discuss non-GAAP financial measures, which are defined and reconciled to the nearest GAAP measure in our earnings release and supplemental materials. With that, let's start our teleconference with opening comments from Dave Nunes, President and CEO. Dave?

Thanks, Colin. Good morning, everyone. First, I'll make some high-level comments before turning it over to Mark McHugh, Senior Vice President and Chief Financial Officer, to review our consolidated financial results. Then we'll ask Doug Long, Senior Vice President, Forest Resources, to comment on US and New Zealand timber results. And following the review of our timber segments, Mark will discuss our real estate results, as well as our outlook for the remainder of 2022. Overall, we were very pleased with our strong start to 2022. For the first quarter, we achieved earnings per share of 20 cents and adjusted EBITDA of $98 million. First quarter adjusted EBITDA increased 41% versus the prior year quarter as record results in both our U.S. timber segments, coupled with a very solid contribution from our real estate segment, more than offset lower adjusted EBITDA from our New Zealand timber segment. Drilling down on our different operating segments, our southern timber segment generated adjusted EBITDA of $48 million for the quarter, which was 53% above the prior year first quarter and represented an all-time record quarterly result for this segment. We're very encouraged to see strong demand drive a 31% increase in net stumpage realizations. while favorable logging conditions further contributed to a 25% increase in harvest volumes. These strong results in our southern timber segment are a testament to both the strength of our operating areas as well as our team's ability to capitalize on favorable market conditions. In our Pacific Northwest timber segment, we achieved adjusted EBITDA of $22 million, up 22% from the prior year quarter, and likewise an all-time record result for this segment. The year-over-year increase was primarily attributable to 17% higher log prices partially offset by a modest reduction in harvest volumes and higher costs. Our operations in the region continue to benefit from very favorable domestic lumber markets as well as healthy export market demand. Conversely, financial results in our New Zealand timber segment declined significantly versus the prior year quarter. as higher pricing was more than offset by compressed margins due to significantly higher shipping costs, 14% lower production volumes, and unfavorable foreign exchange impacts. First quarter adjusted EBITDA on our New Zealand timber segment was $10 million, down from $21 million in the prior year quarter. In our real estate segment, we generated at Just a Debit Dob $25 million, up considerably from $5 million in the prior year period, as a significantly higher number of acres sold was partially offset by a modest decrease in weighted average prices due to the mix of acreage sold. Our team continues to do a tremendous job of capitalizing on strong demand for rural land, as well as residential lots and commercial parcels within our development projects. With that, let me turn it over to Mark for some details on our first quarter financial results.