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Timberland REITs seen offering defensive upside as lumber recovers

D.A. Davidson’s Kurt Yinger said lumber and wood products are exiting a trough, supporting profitability improvement even with housing demand still “lackluster.”

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D.A. Davidson’s Kurt Yinger said timberland REITs offer an “attractive blend of defensive and offensive” characteristics amid an uncertain macro backdrop, in an interview on the REIT Report podcast, highlighting the sector’s potential for downside protection and relative outperformance.

Yinger said investors have found the timber REIT space frustrating, but he argued it should not be dismissed solely due to cyclical pressures, particularly in a housing market he described as lackluster.

He pointed to lumber and wood products moving out of a trough, saying structural supply dynamics on the lumber side are expected to support sustained profitability improvement versus the prior two to three years, even if housing demand remains weak.

Yinger also emphasized scale, noting there are only two publicly traded timberland REITs, and arguing that scale matters both for the sector itself and for public equity institutional investors.

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