WILDLIGHT, Fla. (News release) -- Rayonier Inc. announced the completion of two strategic timberland transactions with Resource Management Service, LLC (RMS), further advancing the Company's portfolio optimization strategy.

The transactions comprised the sale of approximately 36,000 acres of timberlands in southwest Washington for $145 million and the concurrent acquisition of approximately 57,000 acres of timberlands in Alabama and Texas for $146 million. The final price for each transaction is subject to customary closing costs, adjustments and prorations. The transactions were structured as a tax-efficient, like-kind exchange and are expected to be accretive to cash flow on a timber-only basis, with further upside potential from higher-and-better use (HBU) real estate sales and land-based solutions.

Key attributes of the newly acquired timberlands in Alabama and Texas include the following:

Highly productive timberlands - we estimate that 69% of the acquired timberlands are plantable with an average expressed site index of 75 feet.
Accretive to cash flow - the transactions are expected to generate incremental Adjusted EBITDA* of approximately $3 million annually from timber operations over the next ten years (i.e., including the net impact of the acquisition and the disposition). This estimate excludes potential contributions from HBU real estate sales and land-based solutions.
Complementary to landholdings - the acquired properties are an excellent fit with our existing U.S. South footprint, providing operational synergies while minimizing execution risk.
Embedded optionality - the acquired properties are located in markets where we have a proven track record of generating value through HBU real estate transactions and land-based solutions.

"These transactions reflect our continued focus on portfolio optimization, as we look to concentrate our capital in markets with strong cash flow attributes and favorable long-term growth prospects," said Mark McHugh, President and Chief Executive Officer. "We were pleased to collaborate with RMS on this negotiated, off-market deal that aligned well with the strategic priorities of each organization."

"Adjusted EBITDA" is a non-GAAP financial measure. See "Non-GAAP Financial Measures" below. This estimate is based on assumptions and is subject to significant uncertainties, many of which are outside of the company's control. While management believes this estimate and the underlying assumptions are reasonable, it is not a guarantee of future performance. Actual results will vary, and those variations may be material. Please consult the Forward-Looking Statements discussion below for some of the factors that may cause variations. Nothing herein is a representation by any person that this estimate will be achieved, and the company undertakes no duty to update the estimate.