Weyerhaeuser Provides Update on Timberlands Portfolio Optimization Actions

Rhea-AI Summary

Weyerhaeuser (NYSE: WY) announced portfolio optimization actions across its timberlands on Oct 30, 2025, closing two third-quarter acquisitions totaling $459 million and advancing three divestiture packages expected to generate $410 million of cash proceeds by year-end.

Key transactions: 117,000 acres in North Carolina & Virginia for $364M; ~10,000 acres in Washington for $95M; divestitures include $190M (28,000 acres Oregon), $220M (≈86,000 acres Georgia/Alabama), and ~108,000 acres in Virginia closing in early 2026. Company cites timber-only multiples and a 10-year timber cash flow yield metric.

Positive

• Acquisitions totaling $459M closed in Q3 2025
• North Carolina & Virginia purchase: 117,000 acres for $364M
• Washington acquisition: ~10,000 acres for $95M with 6.1% 10-year cash flow yield
• Divestitures expected to deliver $410M of cash proceeds by year-end 2025

Negative

• Divestitures priced at a combined timber-only Adjusted EBITDA multiple of 45x
• Acquisitions acquired at a combined timber-only Adjusted EBITDA multiple of 21x
• One divestiture (~108,000 acres in Virginia) not expected to close until early 2026, creating timing mismatch for proceeds

Insights

Timberlands Portfolio Strategist

Portfolio recycling via acquisitions and divestitures appears to enhance timberland quality and returns while remaining capital‑efficient.

Weyerhaeuser executed two targeted acquisitions totaling $459 million and advanced three divestiture packages expected to generate at least $410 million by year‑end, with a remaining divestiture closing in early 2026. The company states total divestiture proceeds will exceed the cash outlay for the recent acquisitions and expects minimal tax liability, implying the program largely funds the buys and preserves balance sheet strength.

Key dependencies and risks include the timing and certainty of the remaining Virginia sale closing in early 2026, and the realization of the stated timber-only Adjusted EBITDA multiples (acquisitions at 21x and divestitures at 45x), which drive the transaction economics. If closing conditions delay or change proceeds, the stated net funding outcome could alter.

Watch the actual cash received when the Virginia divestiture closes and any disclosed tax or closing adjustments through early 2026. Also track reported post-transaction timber-only free cash flow yields and any updates to portfolio allocation to confirm the claimed net capital recycling and quality improvement over the next 6–12 months.

SEATTLE, Oct. 30, 2025 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today announced updates on recent actions to enhance portfolio quality and value through a series of strategic and capital-efficient timberland transactions. In the third quarter, the company completed two high-quality acquisitions totaling $459 million, including its previously announced transaction for timberlands in North Carolina and Virginia. Additionally, in the third quarter Weyerhaeuser advanced three divestiture packages of non-core timberlands — two of which were closed or under contract in early October, totaling $410 million of expected cash proceeds by year end. The company anticipates the third divestiture to close in early 2026, with total proceeds from all divestitures expected to exceed the cash outlay required for its recently completed acquisitions.

"These transactions represent strategic opportunities to recycle capital in a tax-efficient manner to further optimize and improve our timberlands portfolio," says Devin W. Stockfish, president and chief executive officer. "As we've demonstrated over the last several years, we are committed to active portfolio management across our timber holdings and have remained disciplined and nimble in our approach to growing the quality and value of our timberlands. Through this process, we've achieved the multi-year growth target we announced in September 2021 — and by early 2026, we will have offset a significant portion of our acquisitions with divestitures of non-core acreage. Over a similar period, we've also returned a substantial amount of cash back to shareholders through dividends and share repurchase and announced a compelling engineered wood products growth opportunity — all while maintaining a strong balance sheet. Looking forward, we will continue to evaluate capital-efficient opportunities that enhance the return profile of our timberlands, while also balancing other levers across our capital allocation framework to drive superior long-term value for our shareholders."

Summary of Acquisitions

• Unique, off-market transactions featuring high-quality and strategically located acreage with portfolio-leading timber and financial attributes in their respective regions.
• Acquired at a combined timber-only Adjusted EBITDA multiple of 21x¹.
  • North Carolina & Virginia: In August, the company completed its previously announced acquisition of 117,000 acres of timberlands for $364 million, inclusive of closing adjustments.
  • Washington: In August, the company completed a targeted, off-market acquisition covering approximately 10,000 acres of exceptional timberlands from a private entity for $95 million. Comprised of mature, low-elevation and highly operable timberlands, the acreage is immediately adjacent to existing Weyerhaeuser timber holdings and offers excellent market access to a diverse set of domestic and export customers, including Weyerhaeuser's Longview mill and export yards in the region. The acquisition is expected to deliver immediate and sustained portfolio-leading cash flows within the company's Western Timberlands business, with an average annual timber-only free cash flow yield of 6.1 percent over the first 10 years.

Summary of Divestitures

• Non-core acreage with limited portfolio integration benefits.
• Divestitures in Oregon, Georgia and Alabama are expected to be divested at a combined timber-only Adjusted EBITDA multiple of 45x¹.
  • Oregon: In October, the company completed the divestiture of 28,000 acres of timberlands in coastal Oregon for $190 million.
  • Georgia & Alabama: In October, the company entered into an agreement to sell approximately 86,000 acres for $220 million. The transaction is expected to close in December and is subject to customary closing conditions.
  • Virginia: The company is in the process of divesting approximately 108,000 acres and expects to close the transaction in early 2026.
• The company anticipates minimal tax liability in conjunction with these transactions.

1. Adjusted EBITDA multiple calculated as purchase price divided by Weyerhaeuser's forecasted 10-year annual average Adjusted EBITDA from timber operations.

ABOUT WEYERHAEUSER
Weyerhaeuser Company , one of the world's largest private owners of timberlands, began operations in 1900 and today owns or controls approximately 10.4 million acres of timberlands in the U.S., as well as additional public timberlands managed under long-term licenses in Canada. Weyerhaeuser has been a global leader in sustainability for more than a century and manages 100 percent of its timberlands on a fully sustainable basis in compliance with internationally recognized sustainable forestry standards. Weyerhaeuser is also one of the largest manufacturers of wood products in North America and operates additional business lines around product distribution, climate solutions, real estate, energy and natural resources, among others. In 2024, the company generated $7.1 billion in net sales and employed approximately 9,400 people who serve customers worldwide. Operated as a real estate investment trust, Weyerhaeuser's common stock trades on the New York Stock Exchange under the symbol WY. Learn more at www.weyerhaeuser.com.

NON-GAAP FINANCIAL MEASURES
This news release references forward-looking estimates of free cash flow yield and Adjusted EBITDA multiple, each of which is a non-GAAP financial measure that management uses to evaluate the performance of the company and certain investments. Free cash flow yield, as we define it, is calculated by dividing free cash flow — defined as Adjusted EBITDA generated less capital expenditures to support operations — by the purchase price of the investment. Adjusted EBITDA multiple is calculated by dividing the timberlands purchase price by the company's forecasted 10-year average Adjusted EBITDA from timber operations. Adjusted EBITDA, as we define it, is operating income adjusted for depreciation, depletion, amortization, basis of real estate sold and special items. These measures should not be considered in isolation from, and are not intended to represent alternatives to, our GAAP results. We have not provided a reconciliation of these forward-looking non-GAAP financial measures to the most comparable GAAP measure of net cash from operations (in the case of free cash flow) and net earnings (in the case of Adjusted EBITDA, which is the basis for calculating Adjusted EBITDA multiple), because they each exclude the impact of certain items that are inherently difficult to forecast, such as changes in working capital, capital expenditures, and asset sales. Management cannot estimate these items or their impact on free cash flow yield or projected Adjusted EBITDA on a forward-looking basis without unreasonable effort. As a result, investors may be unable to accurately compare the expected impact of the acquisition to our historical results or to those of other companies that may define or calculate free cash flow yield or Adjusted EBITDA differently. Nonetheless, management believes that providing this forward-looking non-GAAP information is useful to investors. Given the uncertain nature of forward-looking statements, we believe investors are able to take into account the inherent limitations of this forward-looking non-GAAP information. Actual results may differ materially from our estimates due to the potential significance of the excluded items.

FORWARD-LOOKING STATEMENTS
This news release contains statements that are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995 including, without limitation, with respect to our expectations regarding certain timberlands divestures and related cash proceeds, as well our strategic plans concerning our timberlands portfolio and related cash flows and returns and our other capital allocation priorities. We also reference our expectations concerning the expected financial and operational contributions of its Washington timberlands acquisition, and these also constitute forward-looking statements. Forward-looking statements may be identified by our use of certain words in such statements, including without limitation words such as "anticipates," "committed," "continue," "expected," "looking forward," and "will" and similar words, terms and phrases using such terms and words. We also reference expected performance through, or events to occur by or at, a future date, and such references also constitute forward-looking statements. All forward-looking statements speak only as of the date hereof, are based on current expectations and involve and are subject to a number of assumptions, risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. These risks and uncertainties include, but are not limited to, those identified in our 2024 Annual Report on Form 10-K, as well as those set forth from time to time in our other public statements, reports, registration statements, prospectuses, information statements and other filings with the Securities and Exchange Commission. In addition, Weyerhaeuser may not be able to complete the transaction within the stated time period, or at all, because of a number of factors, including without limitation: the occurrence of any event, change or other circumstances that could give rise to a termination of the transaction under the terms of the purchase and sale agreement governing the transaction, or the failure to satisfy other closing conditions. There is no guarantee that any of the events anticipated by these forward-looking statements will occur. If any of the events occur, there is no guarantee what effect they will have on the company's business, results of operations, cash flows, financial condition and future prospects. The company undertakes no obligation to update these forward-looking statements after the date of this news release.

For more information contact:

Weyerhaeuser
Analysts – Andy Taylor, 206-539-3907
Media – Nancy Thompson, 919-861-0342

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SOURCE Weyerhaeuser Company

FAQ

What timberland transactions did Weyerhaeuser (WY) announce on Oct 30, 2025?

Weyerhaeuser reported Q3 acquisitions of $459M (117,000 acres NC/VA and ~10,000 acres WA) and three divestiture packages expected to yield $410M by year-end 2025.

How many acres did WY acquire in North Carolina and Virginia and for how much?

WY acquired 117,000 acres in North Carolina and Virginia for $364 million, inclusive of closing adjustments.

What cash flow yield did Weyerhaeuser disclose for the Washington timberland acquisition (WY)?

The Washington acquisition (~10,000 acres for $95M) is expected to deliver an average annual timber-only free cash flow yield of 6.1% over the first 10 years.

Which divestitures did Weyerhaeuser (WY) complete or announce in Oct 2025 and what proceeds are expected?

WY completed a $190M sale of 28,000 acres in Oregon, signed for ~86,000 acres in Georgia/Alabama for $220M (expected close Dec 2025), and is divesting ~108,000 acres in Virginia expected to close in early 2026.

Will Weyerhaeuser (WY) expect tax impacts from these timberland transactions?

The company anticipates minimal tax liability in conjunction with these transactions.