Chung-Hong Fu: Managing Director Economic Research and Analysis VIEW PDF The ability to effectively value any type of asset is at the core of institutional investment decision making; timberland is no exception. The valuation process informs acquisition, management, and ultimately, disposition decisions. For timberland, the fundamentals apply but what distinguishes timberland is the sheer range [...]
Following a period of robust performance in 2021 and 2022, the U.S. housing sector has since moved at a slower pace. Over the last three years, key indicators, such as sales of existing homes, new residential construction, and home improvement spending, have remained weak. For timberland investors, this matters, as timber markets are structurally tied to the housing sector. More than 70% of U.S. lumber demand is driven by new home building or home improvement.
Chung-Hong Fu: Managing Director Economic Research and Analysis VIEW PDF Over the years, we have seen many investors exploring the timberland asset class for the first time. The questions they ask and the reference points they use are always interesting—naturally shaped by their own backgrounds and experiences with other asset classes. This is to be [...]
Over the past month, duties on Canadian softwood lumber imports into the United States have increased significantly.
Chung-Hong Fu: Managing Director Economic Research and Analysis VIEW PDF Timberland investments delivered strong performance in the five-year period following the Covid-19 pandemic, outpacing other real assets such as commercial real estate and farmland. As returns begin to moderate, what is in store next? Does timberland still hold long-term value potential? This paper examines the [...]
