Replies to post #11308 on The Rising Influence of Rising Affluence

[DewDiligence]

[PCL’s] model was the constant depletion of its real estate to make up the shortcomings of the Timber group.

Huh? Selling acreage that’s worth more to a real-estate developer than it is for growing trees is perfectly logical and is something PCL has done since its inception.

[DewDiligence]

Re: WY-PCL /real-estate business

I expect WY to either sell it all off at once or possibly spin it out somehow.

Barron’s (and I) disagree:

http://www.barrons.com/articles/pharma-fuels-bayers-revival-1447479609

Important to Weyerhaeuser’s growth will be Plum Creek’s expertise in real estate and optimizing land values.

That’s the “HBU” concept I was referring to in #msg-118372201.

[DewDiligence]

WY expects real-estate sales to comprise 15-20%, on average, of the company's overall EBITDA during the next several years (according to today's CC).

p.s. For financial reporting, WY created a new Real Estate segment; previously, WY's RE sales had been included in the Timberlands segment.