Timberland Valuation and the global economic crisesThe issue in today’s post concerns why the transaction price of timberland has shown little or no decline in value but the stock price of the publicly traded companies that own timberland has declined dramatically. I will also look at what I think is happening in the timberland market today and how I see the market for timberland investment. But first, let’s set the stage.
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Forestry returns outperform the rest over three years
London, 24th June 2009: Investment in forestry outperformed domestic commercial property and equities last year, producing a positive annual total return of 7.0%, eclipsed only by bonds, according to the IPD UK Forestry Index.By comparison, UK commercial property delivered -22.11%; UK equities returned -29.92%, while listed property companies and trusts were the most vulnerable to the global market downturn, returning -46.63% over 2008. Bonds, however, gained 154%.
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Tree-planting drive to earn Kenya revenue
Investors from industrialised countries are racing to strike financing deals with Kenya in partnerships set to open new avenues for donor support as the world switches to green economy.
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Sino-Forest Increases Investment in Greenheart Resources Strengthening foothold in South American tropical forestTORONTO, May 9, 2010 /CNW/ - Sino-Forest Corporation ("Sino-Forest") (TSX: TRE), a leading commercial forest plantation operator in China, is pleased to announce that Sino-Capital Global Inc.
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The World Bank Issue Brief: Forestry
- Forests cover between 25 and 30 percent of the earth’s land surface. They help to maintain the fertility of the soil, protect watersheds, and reduce the risk of natural disasters such as floods and landslides.
- About 350 million people worldwide depend on forest resources for their livelihood—of those, 50 million (especially indigenous communities) are wholly dependent on forests.
- About 65% of the total primary energy supply in Africa comes from biomass (30% in South Asia, 15% in Latin America and East Asia).
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Seeing the Forest for Its HedgesFOR decades, some university endowments, pension funds and other big investors have put part of their money to work in the woods. They’ve bought large tracts of timberland, viewing them as an asset class separate from stocks, bonds and other forms of real estate.
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Chile joins Brazil in raising S.America's investment potentialInvesting experts are predicting that Brazil will be joined by Chile in leading the way for new, profitable investment opportunities in South America.
The abundant natural resources in Brazil – including timber and minerals – as well as the planned work to give it a global quality infrastructure, a strong currency and excellent showing during the global recession, have made it an attractive prospect for wealth creation opportunities.
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There’s gold in them forests – but not for plantationsLondon, Aug. 16, 2010 (RISI) - I recently took part in a web meeting on the future of the financial industry's interest in forestry. It was surprising how sophisticated banks, insurance companies and analysts are becoming in evaluating forestry investments.
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Weyco Earnings and Timberland Sale
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More Thoughts on Foreign Investments in Timberland
My last post generated a couple of comments that referenced FIRPTA (Foreign Investment in Real Property Tax Act) and the likely impact that the law would “keep Asian demand in U.S. timberland muted”. The law has been around since 1981 so I thought that I would take a look at what the impact of foreign investment on timberland has been to date.
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Ugandans Invest in Trees, For Profit, ConservationWealthy investors in Uganda are taking advantage of a new money-making opportunity investing in trees. Trees have become an attractive investment because of the rising cost of timber and the allure of carbon credits. The Ugandan government sees these so-called "tree banks" as a means to combat deforestation. But practice remains controversial.
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Buy Timber Stocks and Watch Your Money Grow on Trees(MoneyMorning, Feb 1, 2012) - Chances are you've never considered timber stocks in your investing strategy.
But if that's the case, then you've been missing out.
Timber is a long-term investment that can reward your portfolio in good times, and protect it in bad.
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FRA welcomes Prediction of Timber demand increaseA recent report in the Financial Times has provided a boost for the forestry investment industry, as it outlines how timber demand could increase by 55 per cent by 2050, according to FRA.
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