Weyerhaeuser Completes $459 Million Timberland Acquisitions

Weyerhaeuser Company (NYSE:WY) has completed two timberland acquisitions totaling $459 million while advancing the sale of non-core properties expected to generate over $410 million by year-end, the company announced. The specialized REIT, currently valued at $16.89 billion, is making these strategic moves while trading near its 52-week low of $23.52, approximately 28% below its 52-week high.

The timber and wood products company finalized its previously announced $364 million acquisition of 117,000 acres in North Carolina and Virginia in August. It also completed a $95 million purchase of approximately 10,000 acres of timberlands in Washington state during the same month. According to InvestingPro data, Weyerhaeuser has maintained dividend payments for 55 consecutive years, currently offering investors a 3.62% yield while executing this portfolio transformation.

Weyerhaeuser has simultaneously progressed with three divestiture packages of non-core timberlands. The company completed the sale of 28,000 acres in coastal Oregon for $190 million in October and entered an agreement to sell approximately 86,000 acres in Georgia and Alabama for $220 million, with closing expected in December. A third divestiture of about 108,000 acres in Virginia is anticipated to close in early 2026.
"These transactions represent strategic opportunities to recycle capital in a tax-efficient manner to further optimize and improve our timberlands portfolio," said Devin W. Stockfish, president and chief executive officer of Weyerhaeuser, in a statement based on the company’s press release.

The company reported that the acquisitions were completed at a combined timber-only Adjusted EBITDA multiple of 21x, while the divestitures are expected to be sold at a combined multiple of 45x. Weyerhaeuser anticipates minimal tax liability from these transactions.

The Washington acquisition consists of mature, low-elevation timberlands adjacent to existing Weyerhaeuser holdings, with the company projecting an average annual timber-only free cash flow yield of 6.1 percent over the first decade.

Weyerhaeuser currently owns or controls approximately 10.4 million acres of timberlands in the U.S., along with additional public timberlands managed under long-term licenses in Canada.

In other recent news, Weyerhaeuser has completed the sale of its lumber mill in Princeton, British Columbia, to the Gorman Group. The transaction, initially announced in May, brought in approximately $60 million, with additional proceeds expected upon the transfer of timber licenses, pending regulatory review. Additionally, Weyerhaeuser has declared a quarterly cash dividend of $0.21 per share, payable on September 12, 2025, to shareholders recorded by August 29, 2025. This dividend is part of the company’s strategy to return 75 to 80 percent of annual Adjusted Funds Available for Distribution to its shareholders.

Meanwhile, DA Davidson has maintained its Buy rating and $35 price target for Weyerhaeuser, even though it has adjusted its forecasts due to weaker-than-expected lumber and oriented strand board pricing. The research firm shared these insights following Weyerhaeuser’s recent end-of-quarter presentation update. These developments highlight the company’s ongoing strategic adjustments and financial commitments amidst changing market conditions.

Source: Investing.com