Rayonier Inc. REIT

Welcome, and thank you for joining Rainier's second quarter 2024 conference call. At this time, all participants are in a listen-only mode. During the question and answer session, please press star one 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 Means, Vice President, Capital Markets and Strategic Planning.

Thank you, and good morning. Welcome to Rainier's Investor Teleconference covering second quarter earnings. Our earnings statements and financial supplement were released yesterday afternoon and are available on our website at rainier.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 and forms 10-K and 10-Q, followed by the SEC, 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 measures in our earnings release and supplemental materials. With that, let's start our teleconference with opening comments from Mark McHugh, our President and CEO. Mark?

Thanks, Colin. Good morning, everyone. First, I'll make some high-level comments before turning it over to April Tice, Senior Vice President and Chief Financial Officer, to review our consolidated financial results. Then we'll ask Doug Long, Executive Vice President and Chief Resource Officer, to comment on our U.S. and New Zealand timber results. And following our review of our timber segments, April will discuss our real estate results and our outlook for the balance of the year. Overall, we generated second quarter adjusted EBITDA of $56 million and proforma net income of $4 million, or two cents per share. Market conditions remain challenging during the second quarter, with much of the decline in adjusted EBITDA versus the prior year period attributable to lower harvest volumes in our timber segments, reflecting generally softer demand and the deferral of some harvest activity. We expect to recoup much of this volume over the balance of the year, which should translate to stronger second half versus first half results for our timber segments collectively. Drilling down further on our timber segment operating results, our southern timber segment generated second quarter adjusted EBITDA of $34 million, down $10 million from the prior year period. As a 17% decline in harvest volumes, more than offset a 2% improvement in net stumpage realizations. In our Pacific Northwest timber segment, second quarter adjusted EBITDA of $6 million was down $1 million from the prior year quarter as a 12% reduction in harvest volumes due to the Oregon sale completed late last year and lower non-timber income more than offset improved net stumpage realizations. Turning to our New Zealand timber segment, second quarter adjusted EBITDA of $8 million decreased $1 million versus the prior year quarter. The decrease in adjusted EBITDA was driven by lower net stumpage realizations and lower harvest volumes, partially offset by increased carbon credit sales and favorable foreign exchange impacts. In our real estate segment, we generated second quarter adjusted EBITDA of $19 million, down $1 million from the prior year period. Adjusted EBITDA in our real estate segment improved significantly versus the first quarter, but was below our expectations entering the quarter due to the timing of closings in our improved development business. However, our full-year transaction pipeline remains strong, and we expect that second-half results in our real estate segment will be significantly higher than first-half results. Overall, as April will discuss in greater detail later in the call, we are on track to achieve full-year adjusted EBITDA toward the lower end of our prior guidance range of $290 to $325 million. As we indicated at the beginning of the year, our full-year 2024 financial guidance excludes the potential impact of any additional asset sales as part of the $1 billion disposition target that we announced in November. As it relates to our disposition target, we made significant progress during the second quarter, and we currently have several large transactions that are in various stages of evaluation or negotiation. Overall, we have been encouraged by the interest received from prospective buyers as we advance our efforts to reduce leverage and capitalize on the continued disconnect between public and private values for Timberland assets. We expect to be in a position to provide additional details regarding pending transactions on or before our next quarterly earnings call. With that, let me turn it over to April for more details on our second quarter financial results.