By Gerelyn Terzo, Global AgInvesting Media
In a strategic expansion across the Southern U.S., Weyerhaeuser, one of the biggest owners of timberland on the planet, is bolstering its timberland portfolio. As a timberland real estate investment trust (REIT), the company has unveiled its plans to acquire approximately 117,000 acres of prime timberlands in North Carolina and Virginia from Roanoke Timberlands, a subsidiary of Roseburg Forest Products, in a blockbuster $375 million deal. Weyerhaeuser harkens back to a single office in Tacoma, Washington started over a century ago, a starting point from which it grew into one of the world’s leading sustainable forest product companies.
Weyerhaeuser CEO Devin Stockfish previously explained to REIT publication Nareit, “Historically, logging companies would harvest and move on, but the Weyerhaeuser family thought of a different way to do it. That includes taking care of people, supporting communities, and sustainably managing forests.”
The latest acreage addition, comprising mature and highly productive timberlands, will be added to Weyerhaeuser’s existing operations and mill network in North Carolina while also extending its reach into key markets in Southeastern Virginia. Weyerhaeuser anticipates the acquisition will deliver immediate and sustained cash flows, and also provide alternative value opportunities for its Southern Timberlands business, which controls over 7 million acres of timberlands in the U.S. South from Oklahoma to Virginia.
The timberlands are positioned within strong and expanding sawlog and fiber markets across the U.S. South. The land is primarily fee-owned, with 81 percent of the acreage dedicated to planted pine. It boasts robust site productivity and favorable conditions for year-round logging. This mature planted pine is expected to produce an average annual harvest of 7.4 tons per acre—translating to 860,000 tons in total—over the first five years.
Additionally, it is projected to deliver timber free cash flow yield of 5.1 percent on an average annual basis during that period, all while offering the possibility of accessing additional upside from real estate, natural climate solutions and other natural resource opportunities.
Weyerhaeuser’s Stockfish stated, “These are exceptional timberlands, and we’re excited and well-positioned to capitalize on this unique off-market opportunity. As we’ve demonstrated over the last several years, we are committed to active portfolio management across our unmatched timber holdings and have remained disciplined in our approach to growing the value of our timberlands — including through strategically targeted private transactions.”
Weyerhaeuser will have secured over $1.1 billion in high-quality timberlands since early 2022. The deal is expected to be completed in Q3 2025. To finance the acquisition, Weyerhaeuser is planning to sell non-core timberlands. Once the deal is complete, Weyerhaeuser’s holdings in North Carolina will expand to roughly 744,000 acres of timberlands and 150,000 acres in Virginia. The firm will also oversee three mills, two distribution centers and additional field offices, employing a workforce of more than 600 people across the two states.
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