Rayonier Earnings: Timber Markets Remain Constrained Amid Tepid Global Demand

No-moat-rated Rayonier reported fourth-quarter results well above consensus estimates due to the quick closure of the previously disclosed sale of their Oregon property to Manulife. Excluding the impact of real estate, however, Rayonier’s results were less than stellar as sales generated from Pacific Northwest and New Zealand Timber came in below our expectations. We continue to assess the positives generated by Rayonier’s continued real estate dispositions that are offset by the continued weakness experienced in the company’s core timber business. We have maintained our $35 fair value estimate.