PORTLAND, OR, April 25, 2019 – The National Council of Real Estate Investment Fiduciaries (NCREIF) has released first quarter 2019 results of the NCREIF Timberland Index. The index returned 0.11% for the quarter, down from 0.75% last quarter and 0.92% in the first quarter 2018. The EBITDDA return, at 0.71%, decreased by 6 basis points from last quarter and decreased 16 basis points from a year ago. Appreciation in the first quarter was reported at -0.60%.
The Total Timberland Index had a 2.38% for the rolling one year return, with a 3.07% EBTIDDA and -0.67% appreciation return.
Timberland Quarterly Total Return Trends by Region
The Northeast and Northwest regions saw a drop in returns from prior quarters. The total return for the Northeast was -0.42%, with an appreciation return of -1.02%. After three straight quarters of returns over 2%, the Northwest region reported a total return of 0.25%, primarily due to an appreciation return of -0.52%. The South continued to have flat growth, with appreciation returns offsetting income returns for the quarter. The Lake States region bounced back in the first quarter, at 0.73%, due to an EBITDDA and appreciation return of 0.57% and 0.17%, respectively.
Timberland Market Value per Acre in USD by Region
Timberland market value per acre, at $1,859 as of the first quarter, saw a 2.99% increase from $1,805 over the past year. Within the regions, the south saw the largest quarter-over-quarter increase, with market value up 1.25%. The Northeast has a year-over-year increase in market value of 6.91%, while the Lake States have seen a decrease over the same period at -3.20%.
The NCREIF Timberland Index consists of 447 investment-grade timber properties with a market value of $23.7 billion. This includes 303 properties in the South, 89 in the Northwest, 37 in the Northeast, and 17 in the Lake States. This data enhances the ability of institutional investors to evaluate the risk and performance of timberland investments across the United States.