North American timberland ownership is a hard asset investment based primarily upon the physical and economic growth of trees. Timberland ownership is well-suited to the patient investor seeking diversification with a long-term outlook focused on wealth preservation.
There is no other hard asset quite like forestland. It offers a secure, sustainable and growth-oriented investment opportunity complemented by other benefits such as personal enjoyment and recreation. That said, effective forest management must be purposeful and planned in order to realize the full potential of the forest. That is where F&W can help.
Timber volumes increase regardless of economic conditions with growth rates depending on the region of the country, sites, species, and silvicultural influences through direct management.
Trees gain value as they grow into higher-valued wood products. Foresters call this “product-shifting” or “ingrowth”. Generally, ingrowth will be greater on those properties with tree sizes at the cusp of product-shifting during the ownership tenure. (i.e. acquiring stands with high volume of pulpwood with diameters near the shifting point to the sawlog size class). Active forest management that concentrates growth on the higher valued “crop trees” has a positive impact on the level of product shifting.
The cyclical nature of wood markets, based on consumer demand, allows patient investors to capitalize on price trends that can boost appreciation.
The land itself can appreciate depending on market cycles.
Active forest management is critical to ensure the highest potential returns. F&W offers the expertise that individual owners need to ensure they get the maximum returns from every parcel of timberland. Our active land management and financial reports are tailored to meet each client’s goals. We provide the counsel, technology and expertise needed to grow timberland investments.
Data for timber investments is well-established and supported by a diverse resource of publicly available information and actual client returns that commonly point to real returns (including management fees and holding costs) of 3.0 – 5.5%.
If you are considering timberland ownership then F&W Forestry Services provides the necessary expertise to assist family buyers in the identification, analysis, and acquisition of timberland tracts.
We consider our clients to be long term partners and ensure that throughout the partnership (from acquisition, to asset management, to final disposition) their assets are managed according to the business plans we develop with them. If you are considering a timberland purchase and would like to learn more about our acquisition and due diligence services, please contact Michael Tragner if you are interested in properties located in the Northeast and Jody Strickland if your interest is in other parts of the country or world (Appalachian Region, Southern US, Pacific Northwest and South America).
