Bandon Acreage Sells to Roseburg Resources for $100M

CatchMark Timber Trust Inc. recently completed the sale of 18,063 acres of Oregon timberlands known as the Bandon property for $100 million in cash or approximately $5,536 per acre to Roseburg Resources Co. The property had been purchased in August 2018 for $88.8 million or $4,916 per acre.

The company recognized a gain on the sale of approximately $23 million. CatchMark increased its guidance for full-year net income to a range of $13 to $17 million to reflect the sale but has not made any other adjustments to its full year 2021 guidance. CatchMark had harvested approximately 80 percent of its targeted full-year 2021 volume for the Bandon property by transaction close.

“Most of the sale proceeds will be used to pay down existing debt,” says Brian M. Davis, CatchMark chief executive officer. “Our simple strategy remains focused on investing in prime timberlands in the nation’s leading mill markets, employing delivered wood sales as well as opportunistic stumpage sales to provide predictable and stable cash flow, help cover our dividend, and create long-term shareholder value.”