Replies to post #8383 on The Rising Influence of Rising Affluence

[acgood]

RYN names new CEO for timber business as split-up nears:
http://phx.corporate-ir.net/phoenix.zhtml?c=91500&p=irol-newsArticle&ID=1929740&highlight=

JACKSONVILLE, Fla.--(BUSINESS WIRE)--May 12, 2014-- Rayonier (NYSE:RYN) today announced the appointment of David L. Nunes as chief operating officer. Upon Rayonier’s previously announced mid-year separation, Nunes will assume the role of President and CEO of Rayonier and Paul Boynton, Rayonier’s current Chairman, President and CEO, will become Chairman, President and CEO of Rayonier Advanced Materials.

“Dave will provide strong leadership and direction to the new Rayonier,” said Boynton. “With 30 years of industry experience, he will continue Rayonier’s long legacy of growing shareholder value and provide strategic direction to one of the best teams of timber and real estate professionals in our industry.”

Nunes will join Rayonier Inc. on June 9 as chief operating officer and will play a key role in finalizing the separation of the company. Upon completion of the separation, he will assume responsibility for the leadership of Rayonier Inc. As previously announced, Rayonier’s Performance Fibers division will become Rayonier Advanced Materials; an independent company initially focused on the production of high-purity cellulose specialty products.

Nunes brings three decades of timber and real estate industry leadership to his new role, including more than 15 years as a senior executive. He joins Rayonier Inc. from Pope Resources (NASDAQ: POPE), where he has served as president and CEO since 2002.

Nunes joined Pope Resources in 1997 as director of portfolio management, working with prospective investors on developing timberland investment portfolios. He became vice president of portfolio development, and then served two years as senior vice president of acquisitions and portfolio development before being named president and COO in 2000.

Appointed president and CEO in 2002, Nunes launched the company’s private equity timber fund business, which now manages timberlands in three funds. Pope Resources also manages development acreage in the Seattle metropolitan area. In his tenure as CEO, Nunes has consistently delivered value to Pope’s unitholders.

Previously, Nunes spent nine years with Weyerhaeuser Company, joining the organization in 1988 as a business analyst and advancing through a number of leadership roles to become director of corporate strategic planning.

Following the separation, Richard Kincaid, director, will become chairman of Rayonier Inc.

“In preparation for the separation, we’ve strategically aligned our businesses to maximize their growth potential,” Kincaid said. “We’ve added high quality timberlands in the Gulf States, divested our non-core timberlands and increased our ownership in New Zealand. Additionally, our Real Estate business has obtained key land use entitlements to position our HBU portfolio for enhanced sales values. Dave’s experience in strategic planning and growing and diversifying timberland portfolios will play a key role in our timber and real estate strategies moving forward. The Board is excited to work with Dave to maximize shareholder value following the separation.”

“This is an exciting time to join Rayonier and I’m honored to accept this opportunity,” Nunes said. “Rayonier is an industry leader with top talent and an outstanding timberland portfolio serving U.S. and Pacific Rim markets. Coupled with the best HBU portfolio in the industry, Rayonier is well positioned to capitalize on the rebounding economy and housing markets. Rayonier’s unique combination of assets and talent will ensure that we continue the company’s long history of delivering value to our shareholders.”

Nunes holds a Bachelor of Arts in Economics from Pomona College and an MBA from the Tepper School of Business at Carnegie Mellon University.

[DewDiligence]

(PCL)—US housing starts in July rose to an annualized rate of 1.09M units (seasonally adjusted):

http://online.wsj.com/articles/u-s-housing-starts-up-sharply-in-july-1408451622

US housing starts still have a long way to go to reach the 1.5M annualized units demographers think is a steady-state number based on projected household formation from organic population growth and immigration—see chart in #msg-101175278.

[DewDiligence]

(PCL)—US exurbs begin housing comeback:

http://online.wsj.com/articles/affordable-homes-drive-rebound-in-exurbia-1411061875

The exurbs are starting to make a comeback, signaling that the housing market's recovery is slowly spreading beyond major cities.

Exurbs went bust earlier and harder than most other places during the housing downturn. That is partly because job losses, mortgage defaults and high gasoline prices hit exurban families particularly hard, hampering home sales and construction in the far-flung neighborhoods. Builders, blaming weak demand in the exurbs, shifted to building on more expensive land closer to city centers.

…Many economists deemed an exurban recovery unlikely for several years. Yet many of the areas, specifically in the South and West, are rebounding earlier than expected due to one main reason: relatively inexpensive home prices.

…The nascent exurban revival is occurring as home construction is slowly ramping up on a broader scale. Commerce Department data released Thursday show that builders started construction of 437,100 single-family homes in the first eight months of this year, up nearly 3.1% from the same period last year.

[DewDiligence]

(PCL)—Sep 2014 US housing starts were 1.02M*:

http://online.wsj.com/articles/u-s-housing-starts-up-6-3-in-september-1413549111

*Annualized and seasonally adjusted.

[DewDiligence]

PCL expects US housing starts of 1.1M in 2015, which is +10% YoY, but less than the Wall Street consensus (see chart in #msg-101175278). As a result, PCL probably won’t be raising its dividend during the next few quarters, and the stock may sell off tomorrow.

On a positive note, if the share price remains lower than what PCL believes is warranted by the private-market value of its timberlands, PCL will engage in arbitrage by selling selected timberlands and using the proceeds to repurchase its own shares.

During 3Q14, PCL repurchased $50M of stock; today, it announced the sale of $165M of conservation land in Montana and Washington State (http://finance.yahoo.com/news/nature-conservancy-acquire-165-000-200300006.html ) at an average price of $2,400 per acre.

PCL’s 3Q14 PR:
http://finance.yahoo.com/news/plum-creek-reports-results-third-200500686.html

[DewDiligence]

(PCL)—US housing starts at 8-year high:

http://www.wsj.com/articles/housing-starts-edge-up-0-2-1439901362

U.S. housing starts rose 0.2% from a month earlier to a seasonally adjusted annual rate of 1.21 million last month, the highest since October 2007, the Commerce Department said Tuesday. That is the third time in four months the figures reached a new high since the recession began.

Starts on single-family units, which exclude apartments and represent almost two-thirds of the market, jumped 12.8% to their highest level since December 2007.