Rayonier's Q1 Earnings Miss Estimates, Revenues Decline Y/Y

Rayonier, Inc. RYN reported a first-quarter 2025 pro-forma net loss of 2 cents per share against the Zacks Consensus Estimate for pro-forma net income of 8 cents. The reported figure compares unfavorably with the prior-year quarter’s net income of 1 cent per share.

Results reflect lower-than-anticipated pro forma earnings per share (EPS). The company’s Southern Timber and Real Estate segments displayed a decline in pro forma operating income. However, a strength in the Pacific Northwest Timber was noticed.

Total revenues were $82.9 million, which missed the Zacks Consensus Estimate of $157 million. On a year-over-year basis, the figure decreased by 27.1%. Adjusted EBITDA came in at $27.1 million, down from $44.6 million in the prior-year period.

According to Mark McHugh, president and CEO of Rayonier, “Following the anticipated closing of the New Zealand transaction later this year, we expect to have significant additional capital allocation capacity, which we plan to deploy toward value-enhancing uses, including additional share repurchases.”

As a result of the company’s previously announced agreement to sell entities that hold its entire 77% New Zealand joint venture interest, the contribution from the company’s New Zealand operations are now reported as discontinued operations in its consolidated financial statements, with all prior periods adjusted retrospectively.

RYN’s Segmental Performance

In the first quarter, the pro-forma operating income in the company’s Southern Timber segment came in at $10.1 million, which decreased 56.1% from the prior-year quarter. The fall was due to lower net stumpage realizations, lower volumes, higher costs, lower non-timber income, partly offset by lower depletion expense.

The Pacific Northwest Timber segment reported a pro-forma operating income of $0.7 million against a loss of $4.4 million reported a year ago. This was driven by lower costs, lower depletion expenses, higher net stumpage realizations, lower variable costs and higher non-timber income.

Real Estate’s pro-forma operating loss was $1 million compared to a $0.1 million loss in the year-ago period. The fewer acres sold and unfavorable deferred revenues adjustments led to this loss, partially offset by higher weighted-average prices.

The Trading segment reported an operating loss of $0.5 million versus breakeven results in the prior-year quarter.

RYN’s Balance Sheet

Rayonier exited the first quarter of 2025 with $216.2 million in cash and cash equivalents, down from $303.1 million as of Dec. 31, 2024.

RYN’s Q2 2025 Outlook

In the second quarter of 2025, management expects net income attributable to Rayonier to be in the band of $3-$8 million. Pro forma EPS is expected to be between 1 cent and 4 cents. The Zacks Consensus Estimate is currently pegged at 13 cents. Adjusted EBITDA is projected in the range of $30-$40 million.

RYN’s 2025 Outlook

Management expects full-year net income attributable to Rayonier in the band of $424-$458 million, up from the prior guidance of $79-$100 million. Its revised net income attributable to Rayonier guidance includes the anticipated gain on the sale of its New Zealand joint venture interest.

Pro forma EPS is expected to be between 34 cents and 41 cents, down from the prior guidance range of 51-64 cents. The Zacks Consensus Estimate is currently pegged at 55 cents.

The adjusted EBITDA is anticipated to be between $215 million and $235 million, down from the prior guidance of $270 million and $300 million.

RYN noted that the revised guidance assumes a year-end 2025 transaction closing date and excludes any contribution from New Zealand operations in Adjusted EBITDA and pro forma EPS.

Currently, Rayonier carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Rayonier Inc. Price, Consensus and EPS Surprise

Rayonier Inc. price-consensus-eps-surprise-chart | Rayonier Inc. Quote

Performance of Other REITs

SL Green Realty Corp. SLG reported first-quarter 2025 funds from operations (FFO) per share of $1.40, which surpassed the Zacks Consensus Estimate of $1.27. The company had reported an FFO of $3.07 per share in the year-ago period.

Results reflected improved average rental rates on the Manhattan office leases signed in the period and higher same-store cash net operating income (NOI). However, elevated interest expenses undermined the results to some extent. Presently, SLG carries a Zacks Rank #3 (Hold).

Healthpeak Properties, Inc. DOC reported first-quarter 2025 FFO as adjusted per share of 46 cents, meeting the Zacks Consensus Estimate. This compares to the FFO per share of 45 cents reported in the prior year. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

Results reflect better-than-anticipated revenues. Growth in total merger-combined same-store cash (adjusted) NOI was witnessed across the portfolio. However, higher interest expenses affected the results to some extent. Currently, DOC carries a Zacks Rank #3.

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