Rayonier Inc. reported Q2 2024 net income of $1.9 million, or $0.01 per share, on revenues of $173.6 million. This compares to net income of $19.0 million, or $0.13 per share, on revenues of $208.9 million in the prior year quarter.
Q2 2024 operating income was $12.4 million versus $20.1 million in the prior year period. Q2 2024 operating income included $0.7 million of costs related to disposition initiatives.Excluding this item, pro forma operating income was $13.1 million. This compares to pro forma operating income of $20.1 million in the prior year period. Q2 2024 Adjusted EBITDA was $55.7 million versus $69.2 million in the prior year period.
“Market conditions remained challenging during the Q2, translating to a 20% decline in Adjusted EBITDA versus the prior year quarter,” said Mark McHugh, President and CEO. “Much of this decline was attributable to lower harvest volumes in our Timber segments, reflecting generally softer demand and the deferral of some harvest activity. We expect to recoup much of this volume over the balance of the year, which should translate to stronger second half versus first half results for our Timber segments, collectively.”
“Q2 Adjusted EBITDA in our Real Estate segment declined by 7% versus the prior year period, which was below our expectations entering the quarter due to the timing of closings in our Improved Development business. However, our full-year transaction pipeline remains strong, and we expect that second half results in our Real Estate segment will be significantly higher than first half results.”
“Overall, we are on track to achieve full-year Adjusted EBITDA towards the lower end of our prior guidance range, as further detailed later in this release.”
“During the Q2, we also made significant progress on our $1 billion disposition plan. Specifically, we have several large transactions that are in various stages of evaluation or negotiation, and we expect to be in a position to provide additional details regarding these transactions over the next few months.”
Rayonier is a leading timberland real estate investment trust with assets located in some of the most productive softwood timber growing regions in the United States and New Zealand.
