[Management View]
Rayonier completed the sale of its New Zealand joint venture for $710 million, exceeding its asset disposition target and enhancing capital deployment plans. Management highlighted a 35% YoY increase in adjusted EBITDA to $45 million, driven by Pacific Northwest Timber and Real Estate segments, despite challenges in Southern Timber. The company remains focused on shareholder returns through buybacks and a special distribution, while maintaining a strong credit rating and advancing energy transition initiatives.

[Outlook]
Rayonier maintains its full-year adjusted EBITDA guidance of $215 million to $235 million and pro forma EPS guidance of $0.34 to $0.41. The company anticipates a stronger second half, driven by improved Southern Timber and Real Estate performance. Management plans to use proceeds from the New Zealand sale to reduce leverage and return capital to shareholders.

[Financial Performance]
Adjusted EBITDA increased 35% YoY to $45 million in Q2 2025. Southern Timber segment saw a 16% YoY decline in adjusted EBITDA due to lower harvest volumes and pricing. Pacific Northwest Timber segment's adjusted EBITDA rose 17% YoY, while Real Estate segment's adjusted EBITDA increased significantly, surpassing prior guidance.

[Q&A Highlights]
Question 1: Are timber prices in the Pacific Northwest increasing due to upcoming Canadian duties?
Answer: Improved pricing was observed, but the increase is not significant yet. Anticipation of Canadian duties is causing some market tension, but ample log supplies are currently available. A response is expected as Canadian lumber imports slow down.

Question 2: What's next for Rayonier after debt paydown and transformation?
Answer: The focus is on nimble capital allocation to build long-term value per share. Share buybacks are prioritized due to a disconnect between stock price and NAV. The company remains open to pivoting strategies as market conditions change.

Question 3: How does the upcoming hurricane season affect the U.S. South timber landscape?
Answer: While predicting storm impact is challenging, Rayonier is adapting by reducing thinning near coastlines. The company is hardening its assets against potential damage, but the overall impact remains uncertain.

Question 4: What is the outlook for the Real Estate segment in Q3 2025?
Answer: Strong demand across all real estate categories is expected, with significant transactions anticipated in Q3. The segment's performance is driven by a robust transaction pipeline.

Question 5: Impact of the One Big Beautiful Bill on solar projects?
Answer: Despite uncertainty, solar development remains strong, with new projects being negotiated. The company has over 40,000 acres under solar options and expects continued growth in this area.

Question 6: Will the $500 million cash for opportunistic actions include distribution?
Answer: A special distribution of $1 to $1.40 per share is planned, paid in cash and/or stock. The exact breakdown will be announced later in the year.

Question 7: Are Southern Timber conditions stabilizing?
Answer: Despite salvage activity, pine sawtimber pricing improved 3% QoQ. Demand is normalizing, with mills increasing sawtimber production. Positive momentum is expected as duties impact supply chains.

[Sentiment Analysis]
Analysts and management maintained a cautiously optimistic tone, acknowledging current challenges while expressing confidence in strategic initiatives and future growth prospects.

[Quarterly Comparison]
| Metric | Q2 2025 | Q2 2024 | YoY Change |
|-------------------------------|---------|---------|------------|
| Adjusted EBITDA | $45M | $33M | +35% |
| Southern Timber EBITDA | $28M | $33M | -16% |
| Pacific Northwest Timber EBITDA| $7M | $6M | +17% |
| Real Estate EBITDA | $19M | $5M | +280% |

[Risks and Concerns]
Key risks include market volatility in the Southern Timber segment due to salvage volumes and mill closures, as well as limited export demand in the Pacific Northwest due to the Chinese ban on U.S. log imports. The upcoming hurricane season poses potential risks to timber assets in the U.S. South.

[Final Takeaway]
Rayonier's strategic asset disposition and capital allocation plans position the company for long-term growth and shareholder value creation. Despite current market challenges, management's focus on operational efficiency and strategic initiatives in energy transition and real estate development provides a solid foundation for future performance. The company's proactive approach to market dynamics and disciplined financial management underscores its commitment to navigating uncertainties and capitalizing on growth opportunities.