Rayonier Inc. REIT

Hello, everyone. Thank you for joining us and welcome to the Q4 2025 Rayonier, Inc. Earnings Conference Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. To withdraw your question, press star one again. I will now hand the call over to Colin Mings, Vice President of Capital Markets and Strategic Planning. Please go ahead.

Thank you and good morning. Welcome to Rainier's Investor Teleconference, covering fourth 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 filed with the SEC list some of the factors that may cause actual results to differ materially from the forward-looking statements we may make. They're 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. Before turning to our fourth quarter results, I'd like to provide an update on our transformative merger of equals with Potlatch Deltic, which successfully closed ahead of schedule on January 30th. Achieving this milestone required an incredible amount of work and collaboration. Since announcing the proposed merger in October, teams across both organizations have worked tirelessly to complete the transaction and begin the process of integrating our operations. I want to personally thank everyone involved for their dedication and commitment throughout this process. The combination of Rainier and Potlatch Deltic has created a premier land resources company with a high-quality, well-diversified timberland portfolio that spanning over 4 million acres, a dynamic real estate platform, and a well-positioned wood products manufacturing business. As our integration efforts continue, we remain confident that this transaction will deliver significant strategic and financial benefits beyond what either company could have achieved independently. While we have initially retained the Rainier name, we plan to announce a new name and ticker symbol for the company later in the first quarter. Our leadership team is working diligently to execute key integration initiatives, including optimizing our organizational structure and implementing best practices from both companies. Despite challenging market conditions to start 2026, we are energized by the opportunities ahead of us, and I continue to be encouraged by the strong cultural alignment across the combined organization. As we continue to work through the integration process, we remain focused on creating long-term value for our shareholders through synergies, operational efficiencies, and a relentless focus on disciplined capital allocation. Moving to our fourth quarter financial results, I'll start with some high-level comments before turning it over to April Tice, Senior Vice President and Chief Accounting Officer, to review our consolidated and segment-level financial results. Following April's review of the fourth quarter, Wayne Wastechek, our newly appointed Executive Vice President and Chief Financial Officer, will discuss our 2026 outlook for the combined company. We were pleased to finish 2025 with better than expected fourth quarter financial results, which allowed us to deliver full year adjusted EBITDA of $248 million, representing an 8% increase over 2024 and exceeding the high end of our prior guidance range. This outperformance was primarily driven by the record contribution from our real estate segment, which delivered full year adjusted EBITDA of $127 million amid continued strength in our rural HBU markets and further growth in our real estate development business. Full year pro forma net income was $89 million or 57 cents per share. In the fourth quarter, we generated adjusted EBITDA of $62 million and pro forma net income of $32 million or 20 cents per share. Adjusted EBITDA exceeded the high end of our previous guidance range, but was down compared to the prior year period as real estate closing activity in 2024 was heavily concentrated in the fourth quarter. In our southern timber segment, we generated fourth quarter adjusted EBITDA of $32 million, which was down 8% from the prior year period as a decline in weighted average net stumpage realizations and lower revenue from land-based solutions was partially offset by higher harvest volumes. The increase in harvest volumes versus the prior year quarter reflects drier weather conditions, as well as the normalization of green log demand as salvage activity in the Atlantic region subsided. Turning to the Pacific Northwest timber segment, fourth quarter adjusted EBITDA of $5 million was roughly $2 million below the prior year quarter, primarily due to a 26% decline in harvest volumes resulting from the Washington dispositions that we completed at the end of 2024. In our real estate segment, we generated adjusted EBITDA of $33 million in the fourth quarter, down $31 million from an exceptionally active fourth quarter of the prior year. With that, let me turn it over to April for more details on our fourth quarter financial results.