Weyerhaeuser Company (NYSE:WY) on Thursday disclosed the acquisition of roughly 117,000 acres of premium timberlands in North Carolina and Virginia from Roanoke Timberlands LLC for $375 million.
These well-established and highly productive forests will complement Weyerhaeuser’s current timber and mill operations in North Carolina while also extending its presence into southeastern Virginia, an area with strong market potential.
The acquisition is expected to deliver immediate and sustained portfolio-leading cash flows within the company’s Southern Timberlands business, the company said in a press release.
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The acquired timberlands are situated in robust and expanding sawlog and fiber markets in the U.S. South. The portfolio consists primarily of fee-owned land, with 81% planted in pine, offering strong site productivity and reliable, all-weather logging access.
The mature age profile of the pine stands is projected to support an average annual harvest of 7.4 tons per acre, or approximately 860,000 tons, during the first five years.
The assets are expected to generate an average annual timber-free cash flow yield of 5.1% over this period. The transaction is expected to be finalized in the third quarter, pending customary closing conditions.
Weyerhaeuser plans to fund most of the $375 million purchase through the tax-efficient sale of non-core timberland assets. Upon completion, the company will own or manage around 744,000 acres in North Carolina and 150,000 acres in Virginia.
Devin W. Stockfish, president and chief executive officer, said, “Upon closing of this acquisition, we will have acquired more than $1.1 billion of high-quality timberlands since the beginning of 2022, achieving the multi-year growth target we announced in September 2021.”
“Over a similar period, we’ve also returned a significant amount of cash back to shareholders through dividends and share repurchase and announced a compelling engineered wood products growth opportunity, all while maintaining a strong balance sheet.”
Last week, Weyerhaeuser disclosed that it has agreed to sell its lumber mill in Princeton, British Columbia, to the Gorman Group for around C$120 million in cash. Weyerhaeuser anticipates recording a gain from the sale and incurring a tax liability of about C$15 million.
As of March 31, 2025, cash and cash equivalents stood at $560 million.
Investors can gain exposure to the stock via Harbor ETF Trust Harbor AlphaEdge Next Generation REITs ETF (NYSE:AREA) and iShares Global Timber & Forestry ETF (NASDAQ:WOOD).
Price Action: WY shares are trading higher by 0.40% to $25.35 premarket at last check Friday.
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