Rayonier USA Increases Dividend

With business performing rather well in both USA performance fibres and with good 2011 timberland results thanks to stronger export demand & pricing on Rayonier’s Pacific Northwest timberlands as well as its New Zealand joint-venture, the USA-parent company Rayonier has announced a stock split and increased dividend.

 Rayonier’s balance sheet is healthy, with a good ratio of net debt to estimated 2011 EBITDA. From an earnings standpoint, the parent company appears to be headed for a record year. Rayonier recently boosted its earnings guidance to US$2.85-3.10/share from US$2.50-2.70. Cash available for distribution was raised to US$285-310MM (up from $260-280MM). Analysts expect some commentary on potential timberland acquisitions. Rayonier has reportedly been a leading bidder for 50,000 acres of timberland up for auction in Louisiana. In meetings with management this spring, the company noted that it could acquire about US$1 billion in timberland over the next 3-5 years.http://www.woodweek.com/dsp_newsletter.cfm?id=144