Here's How the Merger Affects Rayonier (RYN)

Third Avenue Management, an investment management company based in New York City, released its “Third Avenue Real Estate Value Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Third Avenue Real Estate Value Fund posted a return of +11.61% (after fees) in the calendar year, compared to the MSCI ACWI IMI Core Real Estate Index’s +9.86% (before fees) return. Since its inception in 1998, the Fund has generated an annualized return of +8.96% (after fees). This year marks the 40th anniversary of Third Avenue Management, highlighting its commitment to its core principles and its adaptability in seeking long-term wealth creation for its clients. The Fund had 40.3% of its capital invested in U.S.-based companies, 27.5% in North American-based companies, 27.6% in International Real Estate companies, and the remaining 4.6% in Cash, Debt & Options. The Fund anticipates that the next five years may resemble the early 2000s, a time characterized by attractive valuations in U.S.-listed real estate. Please review the Portfolio’s top five holdings to gain insights into their key selections for 2025.

 In its fourth-quarter 2025 investor letter, Third Avenue Real Estate Value Fund highlighted Rayonier Inc. (NYSE:RYN). Rayonier Inc. (NYSE:RYN) is a leading land resources real estate investment trust specializing in delivering land to its highest and best use while managing its timberlands sustainably and maximizing the value of its whole property. On March 06, 2026, Rayonier Inc. (NYSE:RYN) stock closed at $21.55 per share. One-month return of Rayonier Inc. (NYSE:RYN) was -3.79%, and its shares lost 20.74% over the past 52 weeks. Rayonier Inc. (NYSE:RYN) has a market capitalization of $6.551 billion.

Third Avenue Real Estate Value Fund stated the following regarding Rayonier Inc. (NYSE:RYN) in its fourth quarter 2025 investor letter:

"Coincidentally, the recent quarter was one of the most active periods of resource conversion for the Real Estate Value Fund holdings in many years. As a matter of fact, more than one-third of the underlying portfolio engaged in (or announced) such initiatives during the period, with some of the most notable including: Rayonier Inc. (NYSE:RYN) , one of the largest owners of timberlands in the U.S. completing the divestiture of its New Zealand venture, paying a special dividend, and announcing a merger with industry peer PotlatchDeltic. Once completed, the combined company will benefit from additional efficiencies within its timber segment, in Fund Management’s opinion, as well as more scale in its real estate and resources portfolio that includes substantial sub-surface rights in the Smackover Formation."

Rayonier Inc. (NYSE:RYN) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 31 hedge fund portfolios held Rayonier Inc. (NYSE:RYN) at the end of the fourth quarter, compared to 35 in the previous quarter. While we acknowledge the potential of Rayonier Inc. (NYSE:RYN) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Rayonier Inc. (NYSE:RYN) and shared a list of best lumber stocks to invest in. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.