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Timberland REITs see consolidation and large landholdings in the US

Nareit notes the sector has shrunk from five REITs in 2016 to two after a merger earlier this year, leaving the pair with nearly $23.5 billion in equity market capitalization.

Reported · Written up by our desk · Industry

Timberland REITs, which specialize in owning timberlands and harvesting and selling timber for lumber products, operate through taxable subsidiaries, according to Nareit.

The sector supports wood-based construction materials that absorb and store carbon during tree growth, positioning timber for decarbonization efforts and offering carbon capture and sequestration opportunities for net zero commitments, Nareit reported.

Nareit said the category became its own property sector in the FTSE Nareit All REITs Index in January 2011, and that over the past decade it has consolidated from five REITs in 2016 to two after a merger of equals earlier this year.

The two timberland REITs currently have nearly $23.5 billion in equity market capitalization and collectively own about 12.5 million acres of land across 17 states, primarily in the Southeast and the Pacific Northwest, Nareit added.

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