Weyerhaeuser Co

The expected performance of timberland REIT Weyerhaeuser (WY) for the rest 2017 and in 2018 can be best understood by its valuation multiples.

REITs (real estate investment trusts) usually provide generous returns to their shareholders in the form of dividends or share buybacks.

REITs (real estate investment trusts) depend mostly on debt for their day-to-day functioning and working capital.

After thriving for a long time in a low interest rate environment, REITs (real estate investment trusts) are now facing a high interest rate.

REITs (real estate investment trusts) depend on debt and equity for their working capital, and so they’re directly impacted by the Fed’s interest rate policy.

Weyerhaeuser (WY) has undertaken several divestiture policies in order to dispose of its underperforming and non-core businesses.

Timberland REIT (real estate investment trust) Weyerhaeuser (WY) owns almost 13.1 million acres of timberlands across the US.

Timberland REIT (real estate investment trust) Weyerhaeuser (WY) expects to continue its growth trajectory for the rest of 2017.

Timberland REIT (real estate investment trust) Weyerhaeuser (WY) has been able to use the opportunities of the booming housing sector to its advantage.

Timberland REIT (real estate investment trust) Weyerhaeuser (WY) reported upbeat earnings results for 2Q17, backed by higher sales and prudent cost management.

The growing economy has helped REITs including Weyerhaeuser (WY), Rayonier (RYN), Resolute Forests Products (RFP), and International Paper (IP) reap higher profits.

Timberland REITs (real estate investment trusts) in the US don’t seem to be in doubt about their continued growth momentum in the near future.

Small-caps under $10 billion market capitalization outperformed large-caps last week and rose 3.5%. The sense was that the global sell-off has eased for now and investors may be turning bullish.

The timber industry provides employment to over 1.4 billion people and makes products worth more than $200 billion annually.

Analysts on Wall Street seem quite positive about the Weyerhaeuser and Plum Creek Timber securities. Eleven analysts are in support of buying the former.

For the week ending November 20, 2015, the iShares US Real Estate ETF and iShares Mortgage Real Estate Capped underperformed the SPDR S&P 500 ETF Trust.

In the MAE (material adverse effect) clause of the Plum Creek Timber–Weyerhaeuser merger, there’s a disproportionate effect clause, so if something affects PCL specifically, it is considered a MAE.

Stocks at the top of the SPY ETF on November 9 were Plum Creek Timber, Apache, and Norfolk Southern. They gained 17.3%, 13.2%, and 11.0%, respectively.

Given the antitrust risk in the Plum Creek Timber-Weyerhaeuser merger, it probably should trade at a risk-to-reward ratio of about 5:1, which works out to a spread of $1.66 and an annualized spread of 9%.

The spread in the Plum Creek Timber-Weyerhaeuser merger is trading slightly negatively (about 6 cents), but the positive dividend carry gives the deal a positive spread.

In the Plum Creek Timber-Weyerhaeuser merger, Weyerhaeuser is paying about 7.4x trailing-12-month revenues and 25.4x trailing-12-month EBITDA.

In the Plum Creek Timber-Weyerhaeuser merger, Weyerhaeuser (WY) and Plum Creek Timber (PCL) anticipate annual cost synergies of $100 million.

The equity value of the Plum Creek Timber-Weyerhaeuser merger is about $8.4 billion and $11.4 billion if you include debt.

In the Plum Creek Timber-Weyerhaeuser merger, Weyerhaeuser Company (WY) has agreed to buy Plum Creek Timber Company (PCL) for $8.4 billion in stock.

The price-to-book value ratios of Plum Creek Timber, Weyerhaeuser, Rayonier, Louisiana-Pacific, and Potlatch are 4.67x, 3.08x, 2.04x, 2.39x, and 5.83x.

After its 3Q15 earnings report, Plum Creek Timber fell by 0.15% to close at $40.79 per share as of October 26, 2015.

According to the US International Trade Report, the trade deficit widened in August to $48.3 billion from $41.8 billion in July.

Farallon Capital Management sold its position in Weyerhaeuser Co. (WY) during the third quarter. The stock accounted for 1.16% of the fund’s total 2Q14 portfolio.

Farallon Capital Management initiated a position in International Game Technology (IGT) during the third quarter. The position accounted for 2.21% of the fund’s 3Q14 portfolio.

Farallon Capital Management started a new position in Tim Hortons Inc. (THI) during the third quarter of 2014. The position accounted for 2.62% of the fund’s 3Q14 portfolio.

TRI Pointe Homes is one of the top ten–largest public homebuilders by equity market capitalization in the US. The company reaffirmed its 2015 outlook for earnings per diluted share in the range of $1.25 to $1.40.