Rayonier NZ Quarterly Performance Impresses

Wednesday 11 Aug 2021

(BMO Capital Markets) - RYN's Q2 in 100 Words: Solid Quarter, Boosting Guidance - Solid quarter. 2Q EPS of $0.22. BMO at $0.11, consensus at $0.10. Adj. EBITDA of $95.3mm. BMO = $78.2mm, consensus = $75.7mm. Real Estate and NZ drove upside. FY2021 EBITDA guide increased 3% to $300-320mm. Upside in Southern Timber, NZ, and R/E. Constructive tone as underlying demand remains strong, even with lumber price correction. Maintain Market Perform rating as the stock is near BMO’s NAV.

New Zealand (NZ). Nice beat. Adj. EBITDA $27.7mm; BMO at $21.9mm, 1Q21 $21.2mm, 2Q20 $9.9mm. 2Q harvest volumes +30.8% y/y (export +41.6%, domestic +17.8%), driven by normalized harvests and strong export/domestic demand. Big price gains. Weighted average pricing = $115.92. 1Q21 = $95.70, 2Q20 = $76.92. Strong Chinese demand, partly driven by import restrictions on Aussie logs. Chinese inventories have risen with slower seasonal demand. Q3 prices will be lower.

Source: BMO Capital Markets

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