CHICAGO, IL, July 25. 2022 – The National Council of Real Estate Investment Fiduciaries (NCREIF) has released second quarter 2022 results of the NCREIF Timberland Index. The index returned 1.87% for the quarter, down from 3.21% last quarter but up from 1.70% in the second quarter of 2021. The EBITDDA return, at 0.82%, was the same from the first quarter of 2022, while the appreciation return in the second quarter decreased 134 basis points quarter-over-quarter, down to 1.05%.
The Total Timberland Index had a 12.01% rolling one-year return, comprised of a 3.41% EBITDDA and 8.38% appreciation return.
Timberland Quarterly Total Return Trends by Region
Returns for the quarter were positive across each regions except for the Lake States. The Northwest region had the highest return of the second quarter at 2.47%, comprised of 1.07% EBITDDA and 1.40% appreciation returns. The South region returned 1.92% for the quarter, driven by an appreciation return of 1.13%. The Northeast and Lake State regions returned, respectively, 0.18% and -0.21% for the quarter, driven by both negative appreciation returns of -0.45% and -.050% which were off-set by positive EBITDA returns of 0.64% and 0.29%.
Timberland Market Value per Acre in USD by Region
Timberland market value per acre was $1,849 for the second quarter, up 0.08% from its previous quarter mark. Two regions experienced per acre market value increases. The South and Northwest regions ended the quarter with market values per acre of $1,881 and $2,878, respectively, representing increases of 0.18% and 0.50% from first quarter values. This was due largely to price increases across the regions from increased demand.
The NCREIF Timberland Index consists of 469 investment-grade timber properties with a market value of $24.0 billion. This includes 328 properties in the South, 85 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.