Chung-Hong Fu: Managing Director Economic Research and Analysis VIEW PDF Movements in lumber markets are often viewed as a leading indicator for timberland performance, with rising prices signaling stronger timber prices and improved portfolio returns. In reality, the relationship between lumber, timber, and timberland returns is more nuanced and less direct than commonly assumed. In [...]
Chung-Hong Fu: Managing Director Economic Research and Analysis VIEW PDF “Trees, Farms, and Office Buildings: A Quick Look at Real Assets’ 5-Year Record, 2021–2025” provides a retrospective analysis of real asset performance over the past five years. Institutional investors allocate to real assets as a means of enhancing diversification, with the objective of improving risk-adjusted [...]
Savage Gulf State Park, one of Tennessee’s newest additions to the state park system, has grown by 670 acres following the successful conservation of privately owned forestland on the Cumberland Plateau.
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.
