Rayonier Earnings: Asset Sales Loom as Timber Prices Remain Depressed Amid Soft End-Market Demand

No-moat-rated Rayonier reported first-quarter results that were modestly below expectations as selling prices remained pressured. However, we think the important news coming out of the call was with regard to its previously announced shareholder value enhancement plan, in which Rayonier plans to sell $1 billion worth of land. Additionally, the firm remains on track to achieve full-year volume guidance across all timber segments and reiterated full-year adjusted EBITDA expectations of $290 million-$325 million. All things considered, we maintain our fair value estimate of $35 per share.