RAYONIER INC MANAGEMENT REPORT OF FINANCIAL POSITION AND RESULTS OF OPERATIONS (“MD&A”) (Form 10-Q)

When we refer to "Rayonier" or "the Company" we mean Rayonier Inc. and its
consolidated subsidiaries. References to the "Operating Partnership" mean
Rayonier, L.P. and its consolidated subsidiaries. References to "we," "us," or
"our," mean collectively Rayonier Inc., the Operating Partnership and
entities/subsidiaries owned or controlled by Rayonier Inc. and/or the Operating
Partnership. References herein to "Notes to Financial Statements" refer to the
Notes to Consolidated Financial Statements of Rayonier Inc. and Rayonier, L.P.
included in Item 1 of this report.

This MD&A is intended to provide a reader of our financial statements with a
narrative from the perspective of management on our financial condition, results
of operations, liquidity, and certain other factors which may affect future
results. Our MD&A should be read in conjunction with our Consolidated Financial
Statements included in Item 1 of this report, our Annual Report on Form 10-K for
the year ended December 31, 2021 (the "2021 Form 10-K") and information
contained in our subsequent reports filed with the Securities and Exchange
Commission (the "SEC").

FORWARD-LOOKING STATEMENTS


Certain statements in this document regarding anticipated financial outcomes,
including our earnings guidance, if any, business and market conditions,
outlook, expected dividend rate, our business strategies, including the
potential effects of the ongoing global novel coronavirus ("COVID-19") pandemic,
expected harvest schedules, timberland acquisitions and dispositions, the
anticipated benefits of our business strategies, and other similar statements
relating to our future events, developments, or financial or operational
performance or results, are "forward-looking statements" made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of 1995
and other federal securities laws. These forward-looking statements are
identified by the use of words such as "may," "will," "should," "expect,"
"estimate," "believe," "intend," "project," "anticipate" and other similar
language. However, the absence of these or similar words or expressions does not
mean that a statement is not forward-looking. While management believes that
these forward-looking statements are reasonable when made, forward-looking
statements are not guarantees of future performance or events and undue reliance
should not be placed on these statements. The risk factors contained in Item 1A
- Risk Factors in our 2021 Form 10-K, Part II,   Item 1A - Risk Factors   in
this report and similar discussions included in other reports that we
subsequently file with the SEC, among others, could cause actual results or
events to differ materially from our historical experience and those expressed
in forward-looking statements made in this document.

Forward-looking statements are only as of the date they are made, and we
undertake no duty to update our forward-looking statements except as required by
law. You are advised, however, to review any subsequent disclosures we make on
related subjects in subsequent reports filed with the SEC.

NON-GAAP MEASURES


To supplement our financial statements presented in accordance with generally
accepted accounting principles in the United States ("GAAP"), we use certain
non-GAAP measures, including "Cash Available for Distribution," and "Adjusted
EBITDA," which are defined and further explained in Performance and Liquidity
Indicators below. Reconciliation of such measures to the nearest GAAP measures
can also be found in Performance and Liquidity Indicators below. Our definitions
of these non-GAAP measures may differ from similarly titled measures used by
others. These non-GAAP measures should be considered supplemental to, and not a
substitute for, financial information prepared in accordance with GAAP.

OBJECTIVE


The objective of the Management's Discussion and Analysis is to detail material
information, events, uncertainties and other factors impacting the Company and
the Operating Partnership and to provide investors an understanding of
"Management's perspective." Item 7, Management's Discussion and Analysis
("MD&A") highlights the critical areas for evaluating the Company's performance
which includes a discussion on the reportable segments, liquidity and capital,
and critical accounting estimates. The MD&A is provided as a supplement to, and
should be read in conjunction with, our financial statements and notes.


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Contents

OUR COMPANY


  We are a leading timberland real estate investment trust ("REIT") with assets
located in some of the most productive softwood timber growing regions in the
United States and New Zealand. We invest in timberlands and actively manage them
to provide current income and attractive long-term returns to our shareholders.
We conduct our business through an umbrella partnership real estate investment
trust ("UPREIT") structure in which our assets are owned by our Operating
Partnership and its subsidiaries. Rayonier manages the Operating Partnership as
its sole general partner. Our revenues, operating income and cash flows are
primarily derived from the following core business segments: Southern Timber,
Pacific Northwest Timber, New Zealand Timber, Real Estate, and Trading. As of
June 30, 2022, we owned or leased under long-term agreements approximately 2.7
million acres of timberlands located in the U.S. South (1.79 million acres),
U.S. Pacific Northwest (486,000 acres) and New Zealand (418,000 gross acres or
296,000 net plantable acres).

SEGMENT INFORMATION


  The Southern Timber, Pacific Northwest Timber and New Zealand Timber segments
include all activities related to the harvesting of timber and other non-timber
income activities, such as the licensing of properties for hunting, the leasing
of properties for mineral extraction and cell towers, and carbon credit sales.
Our New Zealand operations are conducted by Matariki Forestry Group, a joint
venture (the "New Zealand subsidiary"), in which we maintain a 77% ownership
interest. See   Note 4 - Noncontrolling Interests   for additional information
regarding our noncontrolling interests in the New Zealand Timber segment.

  The Real Estate segment includes all U.S. and New Zealand land or leasehold
sales disaggregated into six sales categories: Improved Development, Unimproved
Development, Rural, Timberland & Non-Strategic, Conservation Easements and Large
Dispositions. It also includes residential and commercial lease activity,
primarily in the town of Port Gamble, Washington.

  The Trading segment primarily reflects log trading activities in New Zealand
and Australia conducted by our New Zealand subsidiary. It also includes log
trading activities conducted from the U.S. South and Pacific Northwest. Our
Trading segment activities include an export services joint venture with a
third-party forest manager in which Matariki Forests Trading Ltd maintains a 50%
ownership interest. The Trading segment complements the New Zealand Timber
segment by providing added market intelligence, increasing the scale of export
operations and achieving cost savings that directly benefit the New Zealand
Timber segment. This additional market intelligence also benefits our Southern
and Pacific Northwest export log marketing.

ENVIRONMENTAL ISSUES


For a full description of our environmental matters, see Item 1 - "Business" in
our   Annual Report on Form 10-K for the year ended December 31, 2021   and our
sustainability report located at our Responsible Stewardship webpage.


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Contents

INDUSTRY AND MARKET CONDITIONS


  The demand for timber is directly related to the underlying demand for pulp,
paper, packaging, lumber and other wood products. The significant majority of
timber sold in our Southern Timber segment is consumed domestically. With a
higher proportion of pulpwood, our Southern Timber segment relies heavily on
downstream markets for pulp and paper, and to a lesser extent wood pellet
markets. Our Pacific Northwest Timber segment relies primarily on domestic
customers but also exports a significant volume of timber, particularly to
China. The Southern Timber and Pacific Northwest Timber segments rely on the
strength of U.S. lumber markets as well as underlying housing starts. Our New
Zealand Timber segment sells timber to domestic New Zealand wood products mills
and also exports a significant portion of its volume to Asian markets,
particularly in China and South Korea. In addition to market dynamics in the
Pacific Rim, the New Zealand Timber segment is subject to foreign exchange
fluctuations, which can impact the operating results of the segment in U.S.
dollar terms.

Global log and lumber markets were volatile during the first and second quarters
as sanctions were placed on Russia in response to their invasion of Ukraine.
While we do not expect our operations to be directly impacted by the conflict at
this time, changes in global wood and commodity flows could impact the markets
in which we operate.

As the current COVID-19 pandemic continues to evolve, the expected duration and
the extent of economic disruption it may ultimately cause remain uncertain.
Local, state and national governments continue to evaluate policies and
restrictions in order to mitigate the spread of COVID-19. Government-mandated
shutdowns or shelter-in-place orders in markets in which we operate could
negatively impact our results. Further, prolonged periods of lower overall
business activity as a result of COVID-19 could cause significant damage to the
underlying economy, which would likely impact timber markets.

  We are also subject to the risk of price fluctuations in certain of our cost
components, primarily logging and transportation (cut and haul), ocean freight
and demurrage costs. Other major components of our cost of sales are the cost
basis of timber sold (depletion) and the cost basis of real estate sold.
Depletion includes the amortization of capitalized site preparation, planting
and fertilization, real estate taxes, timberland lease payments and certain
payroll costs. The cost basis of real estate sold includes the cost basis in
land and costs directly associated with the development and construction of
identified real estate projects, such as infrastructure, roadways, utilities,
amenities and/or other improvements. Other costs include amortization of
capitalized costs related to road and bridge construction and software,
depreciation of fixed assets and equipment, road maintenance, severance and
excise taxes, fire prevention and real estate commissions and closing costs.

For more information on market conditions affecting our business, see

Operating results .

CRITICAL ACCOUNTING POLICIES AND USE OF ESTIMATES


  The preparation of financial statements requires us to make estimates,
assumptions and judgments that affect our assets, liabilities, revenues and
expenses, and disclosure of contingent assets and liabilities. We base these
estimates and assumptions on historical data and trends, current fact patterns,
expectations and other sources of information we believe are reasonable. Actual
results may differ from these estimates. For a full description of our critical
accounting policies, see Item 7 - Management's Discussion and Analysis of
Financial Condition and Results of Operations in our 2021 Form 10-K.







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DISCUSSION ON WOOD INVENTORY AND SUSTAINABLE PERFORMANCE

See Item 1 – Business – Discussion of Wood Inventory and Sustainable Yield in our 2021 Form 10-K.


OUR TIMBERLANDS

  Our timber operations are disaggregated into three geographically distinct
segments: Southern Timber, Pacific Northwest Timber and New Zealand Timber. The
following tables provide a breakdown of our timberland holdings as of June 30,
2022 and December 31, 2021:

(acres in 000s)                               As of June 30, 2022                                                 As of December 31, 2021
                              Owned                  Leased                Total                   Owned                   Leased                  Total
Southern
Alabama                          224                     14                   238                     223                      14                     237
Arkansas                           -                      4                     4                       -                       4                       4
Florida                          348                     51                   399                     350                      51                     401
Georgia                          618                     64                   682                     619                      64                     683
Louisiana                        140                      -                   140                     140                       -                     140

Oklahoma                          91                      -                    91                      92                       -                      92
South Carolina                    16                      -                    16                      16                       -                      16

Texas                            221                      -                   221                     225                       -                     225
                               1,658                    133                 1,791                   1,665                     133                   1,798

Pacific Northwest
Oregon                            61                      -                    61                      61                       -                      61
Washington                       421                      4                   425                     425                       4                     429
                                 482                      4                   486                     486                       4                     490

New Zealand (a)                  187                    231                   418                     187                     232                     419
Total                          2,327                    368                 2,695                   2,338                     369                   2,707




(a)Represents legal acres owned and leased by the New Zealand subsidiary, in
which we own a 77% interest. As of June 30, 2022, legal acres in New Zealand
consisted of 296,000 plantable acres and 122,000 non-productive acres.























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The following tables detail activity for acres owned and leased at our logging operations by state from December 31, 2021 at June 30, 2022:


(acres in 000s)                                           Acres Owned
                     December 31, 2021          Acquisitions        Sales       Other        June 30, 2022
Southern
Alabama                      223                      1               -           -               224
Florida                      350                      1              (3)          -               348
Georgia                      619                      -              (1)          -               618
Louisiana                    140                      -               -           -               140

Oklahoma                      92                      -              (1)          -                91
South Carolina                16                      -               -           -                16

Texas                        225                      -              (4)          -               221
                           1,665                      2              (9)          -             1,658

Pacific Northwest
Oregon                        61                      -               -           -                61
Washington                   425                      -              (4)          -               421
                             486                      -              (4)          -               482

New Zealand (a)              187                      -               -           -               187
Total                      2,338                      2             (13)          -             2,327




(a)Represents legal acres owned by the New Zealand subsidiary, in which we have
a 77% interest.


(acres in 000s)                                                                           Acres Leased
                                   December 31, 2021              New Leases           Sold/Expired Leases (a)            Other               June 30, 2022
Southern
Alabama                                        14                       -                            -                       -                          14
Arkansas                                        4                       -                            -                       -                           4
Florida                                        51                       -                            -                       -                          51
Georgia                                        64                       -                            -                       -                          64

                                              133                       -                            -                       -                         133

Pacific Northwest
Washington (b)                                  4                       -                            -                       -                           4

New Zealand (c)                                       232               -                           (1)                      -                         231
Total                                         369                       -                           (1)                      -                         368




(a)Includes acres previously under lease that have been harvested and activity
for the relinquishment of leased acres.
(b)Primarily timber reservations acquired in the merger with Pope Resources.
(c)Represents legal acres leased by the New Zealand subsidiary, in which we have
a 77% interest.
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RESULTS OF OPERATIONS

CONSOLIDATED RESULTS


The following table provides key financial information by segment and on a
consolidated basis:

                                                           Three Months Ended                               Six Months Ended
                                                                June 30,                                        June 30,
Financial Information (in millions)                   2022                     2021                   2022                     2021

Sales

Southern Timber                                        $66.3                    $49.3                 $143.0                   $101.0
Pacific Northwest Timber                                39.2                     35.3                   85.4                     76.8
New Zealand Timber                                      78.9                     80.6                  130.3                    138.1
Timber Funds                                               -                     18.6                      -                     33.6
Real Estate
Improved Development                                    11.6                     19.3                   16.5                     19.6

Rural                                                   23.4                     20.3                   40.4                     30.1
Timberland & Non-Strategic                                 -                        -                   11.4                        -
Conservation Easement                                      -                      3.9                      -                      3.9
Deferred Revenue/Other (a)                              (0.6)                    (5.0)                   0.3                     (4.5)
Large Dispositions                                         -                     36.0                      -                     36.0
Total Real Estate                                       34.4                     74.5                   68.6                     85.0
Trading                                                 27.7                     34.5                   41.1                     51.2
Intersegment Eliminations                               (0.1)                    (1.4)                  (0.1)                    (2.8)
Total Sales                                           $246.3                   $291.4                 $468.4                   $482.9

Operating Income
Southern Timber                                        $24.1                    $17.0                  $54.4                    $34.3
Pacific Northwest Timber                                 2.9                      1.9                    9.5                      3.2
New Zealand Timber                                       8.0                     20.7                   13.4                     34.7
Timber Funds                                               -                      2.0                      -                      3.5
Real Estate (a)(b)                                      11.0                     50.5                   21.2                     52.2
Trading                                                 (0.4)                     0.4                   (0.1)                     0.7
Corporate and Other                                    (10.1)                    (8.0)                 (17.7)                   (15.6)
Operating Income                                        35.5                     84.4                   80.8                    112.9
Interest expense, interest income and other             (8.9)                   (14.1)                 (17.7)                   (24.1)
Income tax expense                                      (1.3)                    (6.9)                  (6.8)                   (10.3)
Net Income                                              25.3                     63.4                   56.3                     78.5
Less: Net income attributable to noncontrolling
interests in consolidated affiliates                    (0.6)                    (4.5)                  (1.7)                    (8.3)
Net Income Attributable to Rayonier, L.P.              $24.7                    $58.9                  $54.6                    $70.2
Less: Net income attributable to noncontrolling
interests in the operating partnership                  (0.6)                    (1.7)                  (1.2)                    (2.1)
Net Income Attributable to Rayonier Inc.               $24.1                    $57.2                  $53.4                    $68.1

Adjusted EBITDA (c)
Southern Timber                                        $38.7                    $30.6                  $87.1                    $62.3
Pacific Northwest Timber                                14.3                     13.9                   35.8                     31.5
New Zealand Timber                                      14.9                     27.7                   25.3                     48.9
Timber Funds                                               -                      1.4                      -                      2.3
Real Estate                                             25.4                     29.1                   50.1                     34.1
Trading                                                 (0.4)                     0.4                   (0.1)                     0.7
Corporate and Other                                     (9.8)                    (7.7)                 (17.0)                   (15.1)
Total Adjusted EBITDA                                  $83.0                    $95.3                 $181.1                   $164.7




(a)Includes deferred revenue adjustments, revenue true-ups and marketing fees
related to Improved Development sales in addition to residential and commercial
lease revenue.
(b)The three and six months ended June 30, 2021 includes $30.3 million from a
Large Disposition.
(c)Adjusted EBITDA is a non-GAAP measure defined and reconciled in   Performance
and Liquidity Indicators  .
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                                                       Three Months Ended                                 Six Months Ended
                                                            June 30,                                          June 30,
Southern Timber Overview                          2022                     2021                     2022                     2021
Sales Volume (in thousands of tons)
Pine Pulpwood                                          962                      889                    2,133                    1,732
Pine Sawtimber                                         458                      516                    1,080                    1,154
Total Pine Volume                                    1,420                    1,405                    3,213                    2,886
Hardwood                                               103                       63                      206                       95
Total Volume                                         1,523                    1,468                    3,419                    2,980

% Delivered Volume (vs. Total Volume)                   47  %                    39  %                    40  %                    38  %
% Pine Sawtimber Volume (vs. Total Pine
Volume)                                                 32  %                    37  %                    34  %                    40  %
% Export Volume (vs. Total Volume) (a)                   3  %                     4  %                     2  %                     4  %

Net Stumpage Pricing (dollars per ton)
Pine Pulpwood                                       $21.46                   $18.22                   $22.93                   $17.69
Pine Sawtimber                                       34.09                    27.96                    34.86                    27.69
Weighted Average Pine                               $25.54                   $21.80                   $26.94                   $21.69
Hardwood                                             25.70                    17.49                    25.88                    15.20
Weighted Average Total                              $25.55                   $21.61                   $26.87                   $21.48

Summary Financial Data (in millions of
dollars)
Timber Sales                                         $58.2                    $43.7                   $129.2                    $87.9
Less: Cut and Haul                                   (17.6)                   (10.3)                   (33.2)                   (20.2)
Less: Port and Freight                                (1.8)                    (1.6)                    (4.1)                    (3.6)
Net Stumpage Sales                                   $38.9                    $31.7                    $91.9                    $64.0

Non-Timber Sales                                       8.1                      5.6                     13.8                     13.1
Total Sales                                          $66.3                    $49.3                   $143.0                   $101.0

Operating Income                                     $24.1                    $17.0                    $54.4                    $34.3

(+) Depreciation, depletion and
amortization                                          14.7                     13.6                     32.7                     27.9
Adjusted EBITDA (b)                                  $38.7                    $30.6                    $87.1                    $62.3

Other Data

Period-End Acres (in thousands)                      1,791                    1,743                    1,791                    1,743



(a) Estimated percentage of export volume, which includes volumes sold to third-party exporters in addition to direct exports through our log export program.

(b) Adjusted EBITDA is a non-GAAP measure defined and reconciled in Performance and Liquidity Indicators.







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                                                      Three Months Ended                                 Six Months Ended
                                                           June 30,                                          June 30,
Pacific Northwest Timber Overview               2022                      2021                     2022                     2021
Sales Volume (in thousands of tons)
Pulpwood                                               80                       70                      155                      150
Sawtimber                                             296                      330                      725                      786

Total Volume                                          376                      400                      881                      936

% Delivered Volume (vs. Total Volume)                  99  %                    96  %                    90  %                    86  %
% Sawtimber Volume (vs. Total Volume)                  79  %                    82  %                    82  %                    84  %
% Export Volume (vs. Total Volume) (a)                 16  %                    19  %                     9  %                    15  %

Delivered Log Pricing (in dollars per
ton)
Pulpwood                                           $45.17                   $29.02                   $41.83                   $29.18
Sawtimber                                          116.60                    97.80                   110.66                    94.20
Weighted Average Log Price                        $101.62                   $85.47                   $98.32                   $83.56

Summary Financial Data (in millions of
dollars)
Timber Sales                                        $37.9                    $33.8                    $83.0                    $74.1
Less: Cut and Haul                                  (16.5)                   (14.5)                   (32.8)                   (30.4)
Less: Port and Freight                               (0.4)                       -                     (0.4)                       -
Net Stumpage Sales                                  $21.0                    $19.3                    $49.8                    $43.7

Non-Timber Sales                                      1.3                      1.5                      2.4                      2.8
Total Sales                                         $39.2                    $35.3                    $85.4                    $76.8

Operating Income                                     $2.9                     $1.9                     $9.5                     $3.2
(+) Depreciation, depletion and
amortization                                         11.3                     12.0                     26.2                     28.3
Adjusted EBITDA (b)                                 $14.3                    $13.9                    $35.8                    $31.5

Other Data

Period-End Acres (in thousands)                       486                      499                      486                      499
Sawtimber (in dollars per MBF) (c)                   $905                     $750                     $873                     $740



(a) Estimated percentage of export volume, which includes volumes sold to third-party exporters in addition to direct exports through our log export program.

(b) Adjusted EBITDA is a non-GAAP measure defined and reconciled in Performance and Liquidity Indicators.

(c) Lumber delivered excluding shavings and saw.

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                                                          Three Months Ended                                 Six Months Ended
                                                               June 30,                                          June 30,
New Zealand Timber Overview                          2022                     2021                     2022                     2021
Sales Volume (in thousands of tons)
Domestic Pulpwood (Delivered)                             105                      104                      199                      210
Domestic Sawtimber (Delivered)                            188                      174                      323                      333
Export Pulpwood (Delivered)                                55                       56                       91                      103
Export Sawtimber (Delivered)                              355                      359                      604                      646

Total Volume                                              703                      692                    1,217                    1,291

% Delivered Volume (vs. Total Volume)                     100  %                   100  %                   100  %                   100  %
% Sawtimber Volume (vs. Total Volume)                      77  %                    77  %                    76  %                    76  %
% Export Volume (vs. Total Volume) (a)                     58  %                    60  %                    57  %                    58  %

Delivered Log Pricing (in dollars per ton)
Domestic Pulpwood                                      $34.56                   $43.31                   $34.76                   $41.72
Domestic Sawtimber                                      76.82                    85.09                    76.48                    83.11
Export Sawtimber                                       140.44                   148.28                   135.13                   136.45
Weighted Average Log Price                            $106.88                  $115.92                  $102.53                  $106.54

Summary Financial Data (in millions of
dollars)
Timber Sales                                            $75.1                    $80.3                   $124.8                   $137.6
Less: Cut and Haul                                      (26.7)                   (25.1)                   (45.8)                   (46.1)
Less: Port and Freight                                  (31.4)                   (23.1)                   (46.8)                   (35.1)
Net Stumpage Sales                                      $16.9                    $32.1                    $32.2                    $56.4

Non-Timber Sales / Carbon Credits                         3.8                      0.3                      5.5                      0.6
Total Sales                                             $78.9                    $80.6                   $130.3                   $138.1

Operating Income                                         $8.0                    $20.7                    $13.4                    $34.7

(+) Depreciation, depletion and amortization              6.9                      7.0                     11.9                     14.2

Adjusted EBITDA (b)                                     $14.9                    $27.7                    $25.3                    $48.9

Other Data
New Zealand Dollar to U.S. Dollar Exchange
Rate (c)                                               0.6628                   0.7164                   0.6650                   0.7189
Net Plantable Period-End Acres (in thousands)             296                      296                      296                      296
Export Sawtimber (in dollars per JAS m3)              $163.29                  $172.41                  $157.11                  $158.65
Domestic Sawtimber (in $NZD per tonne)                $127.50                  $130.65                  $126.51                  $127.18



(a) Percentage of export volume includes direct exports through our log export program.

(b) Adjusted EBITDA is a non-GAAP measure defined and reconciled in Performance and Liquidity Indicators.

(c) Represents the average rate for the period.

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                                                          Three Months Ended                                 Six Months Ended
                                                               June 30,                                          June 30,
Real Estate Overview                                2022                       2021                    2022                      2021
Sales (in millions of dollars)
Improved Development                                  $11.6                     $19.3                    $16.5                     $19.6

Rural                                                  23.4                      20.3                     40.4                      30.1
Timberland & Non-Strategic                                -                         -                     11.4                         -

Conservation Easement                                     -                       3.9                        -                       3.9
Deferred Revenue/Other (a)                             (0.6)                     (5.0)                     0.3                      (4.5)
Large Dispositions (b)                                    -                      36.0                        -                      36.0
Total Sales                                           $34.4                     $74.5                    $68.6                     $85.0

Acres Sold
Improved Development                                   60.8                     289.2                     77.0                     289.9

Rural                                                 4,633                     7,725                    9,385                    10,119
Timberland & Non-Strategic                                -                         -                    3,966                         -

Large Dispositions (b)                                    -                     8,534                        -                     8,534
Total Acres Sold                                      4,694                    16,548                   13,428                    18,943

Gross Price per Acre (dollars per acre)
Improved Development                               $190,136                   $66,864                 $214,841                   $67,590

Rural                                                 5,054                     2,627                    4,302                     2,971
Timberland & Non-Strategic                                -                         -                    2,874                         -

Large Dispositions (b)                                    -                     4,218                        -                     4,218
Weighted Average (Total) (c)                         $7,453                    $4,946                   $5,087                    $4,770
Weighted Average (Adjusted) (d)                      $5,054                    $2,627                   $3,878                    $2,971

Sales (Excluding Large Dispositions)                  $34.4                     $38.5                    $68.6                     $49.0

Operating Income                                      $11.0                     $50.5                    $21.2                     $52.2
(+) Depreciation, depletion and amortization            2.6                       3.7                     11.7                       5.3

(+) Non-cash cost of land and improved
development                                            11.8                       5.2                     17.1                       7.0

(-) Large Dispositions (b)                                -                     (30.3)                       -                     (30.3)
Adjusted EBITDA (e)                                   $25.4                     $29.1                    $50.1                     $34.1




(a)Includes deferred revenue adjustments, revenue true-ups and marketing fees
related to Improved Development sales in addition to residential and commercial
lease revenue.

(b)Large Dispositions are defined as transactions involving the sale of
timberland that exceed $20 million in size and do not have a demonstrable
premium relative to timberland value. In June 2021, we completed the disposition
of approximately 9,000 acres located in Washington for a sales price and a gain
of approximately $36.0 million and $30.3 million, respectively.

(c) Excludes large disposals.

(D)Excludes enhanced development and large disposals.

(e) Adjusted EBITDA is a non-GAAP measure defined and reconciled in Performance and Liquidity Indicators.

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                                                        Three Months Ended                             Six Months Ended
                                                             June 30,                                      June 30,
Trading Overview                                   2022                     2021                  2022                    2021
Sales Volume (in thousands of tons)
U.S.                                                   27                       -                     43                       -
NZ                                                    182                     243                    278                     384

Total Volume                                          209                     243                    320                     384

Summary Financial Data (in millions of
dollars)
Trading Sales                                       $27.3                   $34.2                  $40.4                   $50.4
Non-Timber Sales                                      0.4                     0.4                    0.8                     0.8
Total Sales                                         $27.7                   $34.5                  $41.1                   $51.2

Operating Income                                    ($0.4)                   $0.4                  ($0.1)                   $0.7

Adjusted EBITDA (a)                                 ($0.4)                   $0.4                  ($0.1)                   $0.7



(a) Adjusted EBITDA is a non-GAAP measure defined and reconciled in Performance and Liquidity Indicators.

                                       47
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                                                           Three Months Ended                               Six Months Ended
                                                                June 30,                                        June 30,
Capital Expenditures By Segment (in millions of
dollars)                                              2022                     2021                   2022                     2021
Timber Capital Expenditures
Southern Timber

Reforestation, silviculture and other capital
expenditures                                            $3.6                     $4.3                   $6.1                     $7.6
Property taxes                                           1.9                      1.8                    3.7                      3.3
Lease payments                                           0.2                      0.2                    0.9                      1.0
Allocated overhead                                       1.1                      1.0                    2.4                      2.2
Subtotal Southern Timber                                $6.8                     $7.2                  $13.1                    $14.0
Pacific Northwest Timber

Reforestation, silviculture and other capital
expenditures                                             1.5                      1.7                    5.2                      4.4
Property taxes                                           0.3                      0.3                    0.5                      0.5

Allocated overhead                                       1.4                      1.2                    2.7                      2.3
Subtotal Pacific Northwest Timber                       $3.2                     $3.1                   $8.4                     $7.3

New Zealand Timber
Reforestation, silviculture and other capital
expenditures                                             3.0                      3.1                    5.5                      5.0
Property taxes                                           0.2                      0.2                    0.4                      0.4
Lease payments                                           0.9                      0.7                    1.4                      1.2
Allocated overhead                                       0.7                      0.8                    1.4                      1.5
Subtotal New Zealand Timber                             $4.8                     $4.7                   $8.6                     $8.1
Total Timber Segments Capital Expenditures             $14.7                    $15.1                  $30.2                    $29.3
Timber Funds ("Look-through") (a)                          -                      0.2                      -                      0.4
Real Estate                                                -                        -                    0.1                      0.1

Total Capital Expenditures                             $14.7               
    $15.2                  $30.3                    $29.7

Timberland Acquisitions
Southern Timber                                         $0.4                    $11.0                   $3.2                    $41.0

New Zealand Timber                                         -                     10.9                      -                     10.9

Timberland Acquisitions                                 $0.4                    $21.9                   $3.2                    $51.9

Real Estate Development Investments (b)                 $2.9                     $3.3                   $6.0                     $6.3




(a)The three and six months ended June 30, 2021 exclude $1.2 million and $2.5
million, respectively, of capital expenditures attributable to noncontrolling
interests in Timber Funds.
(b)Represents investments in master infrastructure or entitlements in our real
estate development projects. Real Estate Development Investments are amortized
as the underlying properties are sold and included in Non-Cash Cost of Land and
Improved Development.
                                       48
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  The following tables summarize sales, operating income (loss) and Adjusted
EBITDA variances for June 30, 2022 versus June 30, 2021 (millions of dollars):
Sales                                  Southern Timber           Pacific Northwest Timber          New Zealand Timber          Timber Funds          Real Estate             Trading            Intersegment Eliminations             Total
Three Months Ended
June 30, 2021                               $49.3                          $35.3                         $80.6                   $18.6                 $74.5                 $34.5                         ($1.4)                    $291.4
Volume                                        1.2                           (1.2)                          1.2                       -                 (15.9)                 (4.9)                            -                      (19.6)
Price                                         6.0                            3.0                         (16.5)                      -                  11.0                  (2.0)                            -                        1.5
Non-timber sales                              2.4                           (0.2)                          3.4                       -                     -                     -                             -                        5.6
Foreign exchange (a)                            -                              -                          (1.4)                      -                     -                     -                             -                       (1.4)
Other                                         7.4        (b)                 2.3           (b)            11.6         (c)       (18.6)      (d)       (35.2)      (e)         0.1                           1.3            (f)       (31.1)
Three Months Ended
June 30, 2022                               $66.3                          $39.2                         $78.9                       -                 $34.4                 $27.7                         ($0.1)                    $246.3




(a)  Net of currency hedging impact.
(b)  Includes variance due to stumpage versus delivered sales.
(c)  Includes variance due to domestic versus export sales.
(d)  Timber Funds segment was liquidated in 2021.
(e)  Includes $36.0 million of sales from a Large Disposition in addition to
Conservation Easement sales in Q2 2021, residential and commercial lease income,
revenue true-ups and marketing fees related to Improved Development sales,
equity income from joint venture entities and deferred adjustments.
(f)  Includes a decrease in Intersegment eliminations related to timberland
management fees paid to us by the timber funds and reported as sales within the
Timber Funds segment.

Sales                                  Southern Timber           Pacific Northwest Timber          New Zealand Timber          Timber Funds          Real Estate             Trading            Intersegment Eliminations             Total
Six Months Ended
June 30, 2021                              $101.0                          $76.8                        $138.1                   $33.6                 $85.0                 $51.2                         ($2.8)                    $482.9
Volume                                        9.4                           (2.6)                         (7.8)                      -                  13.9                  (8.4)                            -                        4.5
Price                                        18.4                            8.7                         (22.4)                      -                   3.5                  (1.6)                            -                        6.6
Non-timber sales                              0.8                           (0.3)                          4.9                       -                     -                  (0.1)                            -                        5.3
Foreign exchange (a)                            -                              -                          (2.6)                      -                     -                     -                             -                       (2.6)
Other                                        13.4        (b)                 2.8           (b)            20.1         (c)       (33.6)         (d)    (33.8)      (e)           -                           2.7            (f)       (28.3)
Six Months Ended
June 30, 2022                              $143.0                          $85.4                        $130.3                       -                 $68.6                 $41.1                         ($0.1)                    $468.4




(a)  Net of currency hedging impact.
(b)  Includes variance due to stumpage versus delivered sales.
(c)  Includes variance due to domestic versus export sales.
(d)  Timber Funds segment was liquidated in 2021.
(e)  Includes $36.0 million of sales from a Large Disposition in addition to
Conservation Easement sales in Q2 2021, residential and commercial lease income,
revenue true-ups and marketing fees related to Improved Development sales,
equity income from joint venture entities and deferred adjustments.
(f)  Includes a decrease in Intersegment eliminations related to timberland
management fees paid to us by the timber funds and reported as sales within the
Timber Funds segment.

                                       49
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Operating Income (Loss)            Southern Timber         Pacific Northwest Timber         New Zealand Timber         Timber Funds         Real Estate           Trading            Corporate and Other           Total
Three Months Ended
June 30, 2021                          $17.0                          $1.9                        $20.7                   $2.0                $50.5                $0.4                     ($8.0)                $84.4
Volume                                   0.7                          (0.4)                         0.5                      -                (11.3)                  -                         -                 (10.5)
Price (a)                                6.0                           3.0                        (16.5)                     -                 11.0                   -                         -                   3.5
Cost                                    (1.4)                         (1.4)                        (0.9)                     -                  0.9                (0.8)                     (2.1)                 (5.7)
Non-timber income (b)                    2.4                          (0.2)                         3.4                      -                    -                   -                         -                   5.6
Foreign exchange (c)                       -                             -                          1.1                      -                    -                   -                         -                   1.1
Depreciation, depletion &
amortization                            (0.6)                            -                         (0.3)                     -                 (0.3)                  -                         -                  (1.2)
Non-cash cost of land and
improved development                       -                             -                            -                      -                 (8.6)                  -                         -                  (8.6)
Other (d)                                  -                             -                            -                   (2.0)               (31.2)                  -                         -                 (33.2)
Three Months Ended
June 30, 2022                          $24.1                          $2.9                         $8.0                      -                $11.0               ($0.4)                   ($10.1)                $35.5




(a)For Timber segments, price reflects net stumpage realizations (i.e., net of
cut and haul and shipping costs). For Real Estate, price is presented net of
cash closing costs.
(b)For the New Zealand Timber segment, includes carbon credit sales.
(c)Net of currency hedging impact.
(d)Timber Funds segment was liquidated in 2021. Real Estate includes
$30.3 million of operating income from a Large Disposition in addition to
Conservation Easement sales in Q2 2021, residential and commercial lease income,
revenue true-ups and marketing fees related to Improved Development sales,
equity income from joint venture entities and deferred adjustments.

Operating Income (Loss)            Southern Timber         Pacific Northwest Timber         New Zealand Timber         Timber Funds         Real Estate           Trading            Corporate and Other            Total
Six Months Ended
June 30, 2021                          $34.3                          $3.2                        $34.7                   $3.5                $52.2                $0.7                    ($15.6)                 $112.9
Volume                                   5.3                          (0.6)                        (2.6)                     -                  9.8                   -                         -                    11.9
Price (a)                               18.4                           8.7                        (22.4)                     -                  3.5                   -                         -                     8.2
Cost                                    (3.6)                         (1.9)                        (1.4)                     -                 (1.8)               (0.8)                     (2.1)                  (11.6)
Non-timber income (b)                    0.7                          (0.3)                         4.9                      -                    -                   -                         -                     5.3
Foreign exchange (c)                       -                             -                         (0.4)                     -                    -                   -                         -                    (0.4)
Depreciation, depletion &
amortization                            (0.7)                          0.4                          0.6                      -                 (5.1)                  -                         -                    (4.8)
Non-cash cost of land and
improved development                       -                             -                            -                      -                 (6.1)                  -                         -                    (6.1)
Other (d)                                  -                             -                            -                   (3.5)               (31.3)                  -                         -                   (34.7)
Six Months Ended
June 30, 2022                          $54.4                          $9.5                        $13.4                      -                $21.2               ($0.1)                   ($17.7)                  $80.8




(a)For Timber segments, price reflects net stumpage realizations (i.e., net of
cut and haul and shipping costs). For Real Estate, price is presented net of
cash closing costs.
(b)For the New Zealand Timber segment, includes carbon credit sales.
(c)Net of currency hedging impact.
(d)Timber Funds segment was liquidated in 2021. Real Estate includes
$30.3 million of operating income from a Large Disposition in addition to
Conservation Easement sales in Q2 2021, residential and commercial lease income,
revenue true-ups and marketing fees related to Improved Development sales,
equity income from joint venture entities and deferred adjustments.

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Adjusted EBITDA (a)                     Southern Timber         Pacific Northwest Timber         New Zealand Timber         Timber Funds         Real Estate           Trading            Corporate and Other            Total
Three Months Ended
June 30, 2021                               $30.6                         $13.9                        $27.7                   $1.4                $29.1                $0.4                     ($7.7)                 $95.3
Volume                                        1.1                          (1.0)                         0.6                      -                (15.9)                  -                         -                  (15.2)
Price (b)                                     6.0                           3.0                        (16.5)                     -                 11.0                   -                         -                    3.5
Cost                                         (1.4)                         (1.4)                        (0.9)                     -                  0.9                (0.8)                     (2.1)                  (5.7)
Non-timber income (c)                         2.4                          (0.2)                         3.4                      -                    -                   -                         -                    5.6
Foreign exchange (d)                            -                             -                          0.6                      -                    -                   -                         -                    0.6
Other (e)                                       -                             -                            -                   (1.4)                 0.3                   -                         -                   (1.1)
Three Months Ended
June 30, 2022                               $38.7                         $14.3                        $14.9                      -                $25.4               ($0.4)                    ($9.8)                 $83.0




(a)Adjusted EBITDA is a non-GAAP measure defined and reconciled in   Performance
and Liquidity Indicators   below.
(b)For Timber segments, price reflects net stumpage realizations (i.e., net of
cut and haul and shipping costs). For Real Estate, price is presented net of
cash closing costs.
(c)For the New Zealand Timber segment, includes carbon credit sales.
(d)Net of currency hedging impact.
(e)Timber Funds segment was liquidated in 2021. Real Estate includes
Conservation Easement sales in Q2 2021, residential and commercial lease income,
revenue true-ups and marketing fees related to Improved Development sales,
equity income from joint venture entities and deferred adjustments.

Adjusted EBITDA (a)                    Southern Timber         Pacific 

Northwest Timber New Zealand Timber Timber Funds Real Estate

           Trading            Corporate and Other            Total
Six Months Ended
June 30, 2021                              $62.3                         $31.5                        $48.9                   $2.3                $34.1                $0.7                    ($15.1)                 $164.7
Volume                                       9.3                          (2.2)                        (3.3)                     -                 13.9                   -                         -                    17.7
Price (b)                                   18.4                           8.7                        (22.4)                     -                  3.5                   -                         -                     8.2
Cost                                        (3.6)                         (1.9)                        (1.4)                     -                 (1.8)               (0.8)                     (1.9)                  (11.4)
Non-timber income (c)                        0.7                          (0.3)                         4.9                      -                    -                   -                         -                     5.3
Foreign exchange (d)                           -                             -                         (1.4)                     -                    -                   -                         -                    (1.4)
Other (e)                                      -                             -                            -                   (2.3)                 0.4                   -                         -                    (1.9)
Six Months Ended
June 30, 2022                              $87.1                         $35.8                        $25.3                      -               
$50.1               ($0.1)                   ($17.0)                 $181.1




(a)Adjusted EBITDA is a non-GAAP measure defined and reconciled in   Performance
and Liquidity Indicators   below.
(b)For Timber segments, price reflects net stumpage realizations (i.e., net of
cut and haul and shipping costs). For Real Estate, price is presented net of
cash closing costs.
(c)For the New Zealand Timber segment, includes carbon credit sales.
(d)Net of currency hedging impact.
(e)Timber Funds segment was liquidated in 2021. Real Estate includes
Conservation Easement sales in Q2 2021, residential and commercial lease income,
revenue true-ups and marketing fees related to Improved Development sales,
equity income from joint venture entities and deferred adjustments.

SOUTH WOOD


  Second quarter sales of $66.3 million increased $17.0 million, or 34%, versus
the prior year period. Harvest volumes increased 4% to 1.52 million tons versus
1.47 million tons in the prior year period, as demand remained strong across the
region. Average pine sawtimber stumpage prices increased 22% to $34.09 per ton
versus $27.96 per ton in the prior year period, due to strong domestic lumber
demand as well as increased competition for chip-n-saw volume from pulp mills.
Average pine pulpwood stumpage prices rose 18% to $21.46 per ton versus $18.22
per ton in the prior year period. Despite an unfavorable shift in our geographic
mix of pulpwood sales versus the prior year period, robust competition amid
strong end-market demand allowed us to capture pulpwood price increases that
more than offset the upward pressure on cut and haul costs. Overall,
weighted-average stumpage prices (including hardwood) increased 18% to $25.55
per ton versus $21.61 per ton in the prior year period. Operating income of
$24.1 million increased $7.1 million versus the prior year period due to higher
net stumpage realizations ($6.0 million), higher non-timber income ($2.4
million) and higher volumes ($0.7 million), partially offset by higher overhead
costs ($1.4 million) and higher depletion rates ($0.6 million). Second quarter
Adjusted EBITDA of $38.7 million was 27%, or $8.1 million, above the prior year
period.

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Year-to-date sales of $143.0 million increased $42.1 million, or 42%, versus the
prior year period. Harvest volumes increased 15% to 3.42 million tons versus
2.98 million in the prior year period, due to strong demand and favorable
logging conditions. Average pine sawtimber stumpage prices increased 26% to
$34.86 per ton versus $27.69 per ton in the prior year period, primarily due to
robust demand from sawmills given the strength of the domestic lumber market, as
well as competition for chip-n-saw volume from pulp mills. Average pine pulpwood
stumpage prices increased 30% to $22.93 per ton versus $17.69 per ton in the
prior year period, driven by strong demand due to low mill inventories at the
start of the year and favorable end-market demand. Overall, weighted-average
stumpage prices (including hardwood) increased 25% to $26.87 per ton versus
$21.48 per ton in the prior year period. Operating income of $54.4 million
increased $20.1 million versus the prior year period due to higher net stumpage
realizations ($18.4 million), higher volumes ($5.3 million) and higher
non-timber income ($0.7 million), partially offset by higher costs ($3.6
million) and higher depletion rates ($0.7 million).

PACIFIC NORTHWEST WOOD


Second quarter sales of $39.2 million increased $3.8 million, or 11%, versus the
prior year period, notwithstanding a decline in harvest volumes of 6% to 376,000
tons versus 400,000 tons in the prior year period. Average delivered sawtimber
prices increased 19% to $116.60 per ton versus $97.80 per ton in the prior year
period, driven by continued strong demand from domestic lumber mills as well as
a favorable species mix, as a higher proportion of Douglas-fir sawtimber was
harvested in the current year quarter. Average delivered pulpwood prices
increased 56% to $45.17 per ton versus $29.02 per ton in the prior year period,
reflecting strong end- market demand as well as the resumption of chip exports,
which resulted in greater competition from pulp mills to secure supply.
Operating income of $2.9 million improved $1.1 million versus the prior year
period due to higher net stumpage realizations ($3.0 million), partially offset
by higher overhead and other costs ($1.4 million), lower volumes ($0.4 million)
and lower non-timber income ($0.2 million). Second quarter Adjusted EBITDA of
$14.3 million was 3%, or $0.4 million, above the prior year period.

Year-to-date sales of $85.4 million increased $8.6 million, or 11%, versus the
prior year period, notwithstanding a decline in harvest volumes of 6% to 881,000
tons versus 936,000 tons in the prior year period. Average delivered sawtimber
prices increased 17% to $110.66 per ton versus $94.20 per ton in the prior year
period due to strong domestic lumber demand and a favorable species mix in the
current year period. Average delivered pulpwood prices increased 43% to $41.83
per ton versus $29.18 per ton in the prior year period, driven by strong
end-market demand, the restart of previously idled pulp mill capacity, and the
resumption of chip exports, which resulted in greater competition from pulp
mills to secure supply. Operating income of $9.5 million improved $6.3 million
versus the prior year period due to higher net stumpage realizations ($8.7
million) and lower depletion rates ($0.4 million), partially offset by higher
costs ($1.9 million), lower volumes ($0.6 million) and lower non-timber income
($0.3 million).

NEW ZEALAND TIMBER

  Second quarter sales of $78.9 million decreased $1.7 million, or 2%, versus
the prior year period. Harvest volumes increased 1% to 703,000 tons versus
692,000 tons in the prior year period, reflecting a pickup in activity to more
normalized levels following a relatively light first quarter. Average delivered
prices for export sawtimber decreased 5% to $140.44 per ton versus $148.28 per
ton in the prior year period. The decrease in export sawtimber prices versus the
prior year period was driven by reduced demand stemming from the COVID-19
lockdowns in China, which in turn contributed to persistently high port
inventories. Net stumpage realizations for export sawtimber were further reduced
by significantly higher port / freight costs, driven by elevated fuel prices as
well as increased demurrage charges due to port congestion. Average delivered
prices for domestic sawtimber decreased 10% to $76.82 per ton versus $85.09 per
ton in the prior year period. The decrease in domestic sawtimber prices (in U.S.
dollar terms) was primarily driven by the decline in the NZ$/US$ exchange rate
(US$0.66 per NZ$1.00 versus US$0.72 per NZ$1.00). Excluding the impact of
foreign exchange rates, domestic sawtimber prices decreased 2% versus the prior
year period, reflecting additional supply that was diverted into domestic
markets due to export market headwinds. Operating income of $8.0 million
decreased $12.7 million versus the prior year period due to lower net stumpage
realizations ($16.5 million), higher costs ($0.9 million) and higher depletion
rates ($0.3 million), partially offset by higher carbon credit sales ($3.4
million), favorable foreign exchange impacts ($1.1 million) and higher volumes
($0.5 million). Second quarter Adjusted EBITDA of $14.9 million was 46%, or
$12.8 million, below the prior year period.

Year-to-date sales of $130.3 million decreased $7.9 million, or 6%, versus the
prior year period. Harvest volumes decreased 6% to 1.2 million tons versus 1.3
million tons in the prior year period. Average delivered prices

                                       52
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for export sawtimber decreased 1% to $135.13 per ton versus $136.45 per ton in
the prior year period. The decrease in export sawtimber prices versus the prior
year period was primarily driven by reduced demand due to COVID-19 related
disruptions in China. Net stumpage realizations for export sawtimber were
further pressured by higher shipping and demurrage costs due to ongoing supply
chain and port congestion issues. Average delivered prices for domestic
sawtimber decreased 8% to $76.48 per ton versus $83.11 per ton in the prior year
period. The decrease in domestic sawtimber prices (in U.S. dollars terms) was
driven primarily by the decline in the NZ$/US$ exchange rate (US$0.67 per
NZ$1.00 versus US$0.72 per NZ$1.00). Excluding the impact of foreign exchange
rates, domestic sawtimber prices decreased 1% versus the prior year period.
Operating income of $13.4 million decreased $21.3 million versus the prior year
period as a result of lower net stumpage realizations ($22.4 million), lower
volumes ($2.6 million), higher costs (1.4 million) and unfavorable foreign
exchange impacts ($0.4 million), partially offset by higher carbon credit sales
(4.9 million) and lower depletion rates ($0.6 million). Year-to-date Adjusted
EBITDA of $25.3 million was $23.6 million below the prior year period.

WOOD BACKGROUNDS


During 2021, we sold the rights to manage Fund III and Fund IV, as well as our
ownership interests in both funds, and we completed the liquidation of Fund II
timberland assets. As such, we had no sales, operating income or Adjusted EBITDA
in the current quarter or year-to-date period in the Timber Funds segment, as
will be the case going forward.

The Timber Funds segment generated prior year second quarter sales of $18.6
million on harvest volumes of 175,000 tons, resulting in operating income of
$2.0 million in the prior year period. Second quarter Adjusted EBITDA was $1.4
million in the prior year period.

The Timber Funds segment generated prior year year-to-date sales of $33.6
million on harvest volumes of 319,000 tons, resulting in operating income of
$3.5 million in the prior year period. Year-to-date Adjusted EBITDA was $2.3
million in the prior year period.

IMMOVABLE


Second quarter sales of $34.4 million decreased $40.1 million versus the prior
year period, while operating income of $11.0 million decreased $39.5 million
versus the prior year period. The prior year second quarter sales and operating
income included $36.0 million and $30.3 million, respectively, from a Large
Disposition. Sales and operating income declined versus the prior year period
due to a lower number of acres sold (4,694 acres sold versus 16,548 acres sold
in the prior year period), partially offset by an increase in weighted-average
prices ($7,453 per acre versus $4,571 per acre in the prior year period).

Improved Development sales of $11.6 million included $10.5 million from the
Wildlight development project north of Jacksonville, Florida and $1.1 million
from the Heartwood development project south of Savannah, Georgia. Sales in
Wildlight consisted of a 22-acre multifamily apartment site for $4.8 million
($222,000 per acre), a 31-acre single-family build-to-rent site for $4.4 million
($140,000 per acre), and 19 residential lots for $1.3 million ($70,000 per lot).
Sales in Heartwood consisted of 26 residential lots for $1.1 million ($42,000
per lot). This compares to prior year period Improved Development sales of $19.3
million, which reflected significant activity in both Wildlight and Heartwood /
Belfast Commerce Park.

There was no Unimproved development sales for the second quarter or the prior year period.


Rural sales of $23.4 million consisted of 4,633 acres at an average price of
$5,054 per acre, which compares to prior year period sales of $20.3 million,
which consisted of 7,725 acres at an average price of $2,627 per acre.

There were no sales from Timberland & Non-Strategic during the second quarter or prior year period.

Second quarter adjusted EBITDA of $25.4 million has been $3.7 million below the period of the previous year.


Year-to-date sales of $68.6 million decreased $16.4 million versus the prior
year period, while operating income of $21.2 million decreased $31.0 million
versus the prior year period. There were no Large Dispositions in the current
year period, compared with year-to-date sales and operating income of $36.0
million and $30.3 million, respectively from a Large Disposition in the prior
year period. Sales decreased in the first six months primarily due to lower
volumes (13,428 acres sold versus 18,943 acres sold in the prior year period),
partially offset by higher weighted-average prices ($5,087 per acre versus
$4,522 per acre in the prior year period). Year-to-date Adjusted EBITDA of $50.1
million increased $15.9 million versus the prior year period.

                                       53
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TRADE


  Second quarter sales of $27.7 million decreased $6.9 million versus the prior
year period primarily due to lower volumes and prices. Sales volumes decreased
14% to 209,000 tons versus 243,000 tons in the prior year period, reflecting
elevated log inventories in China and constrained export market demand. The
Trading segment generated an operating loss of $0.4 million versus operating
income of $0.4 million in the prior year period.

Year-to-date sales of $41.1 million decreased $10.1 million versus the prior
year period primarily due to lower volumes, as well as lower prices. Sales
volumes decreased 17% to 320,000 tons versus 384,000 tons in the prior year
period. The Trading segment generated an operating loss of $0.1 million versus
operating income of $0.7 million in the prior year period.

OTHER ELEMENTS

CORPORATE AND OTHER EXPENSES / ELIMINATIONS

Corporate and other operating expenses for the second quarter of $10.1 million
increase $2.1 million compared to the same period last year, mainly due to higher compensation and benefits expenses ($1.5 million), higher legal costs ($0.3 million) and higher insurance and travel costs ($0.3 million).


Year-to-date corporate and other operating expenses of $17.7 million increased
$2.0 million versus the prior year period, primarily due to higher compensation
and benefits expenses ($1.2 million), higher legal costs ($0.4 million) and
higher insurance and travel expenses ($0.4 million).

Compensation and benefits expense was elevated in the current quarter and year-to-date due to the accelerated realization of stock compensation expense for employees eligible to retire.

INTEREST EXPENSES


  Second quarter and year-to-date interest expense of $9.1 million and
$17.4 million, respectively, decreased $3.9 million and $5.6 million versus the
prior year period, as the prior year period included a $2.2 million loss from
the termination of a cash flow hedge. Additionally, second quarter and
year-to-date interest expense benefited from lower average outstanding debt and
a lower average interest rate as compared to the prior year period.

INCOME TAX BURDEN


  Second quarter and year-to-date income tax expense of $1.3 million and
$6.8 million, respectively, decreased $5.6 million and $3.5 million versus the
prior year period. The New Zealand subsidiary is the primary driver of income
tax expense.

OUTLOOK

In our Southern Timber segment, we now expect full-year harvest volumes of 6.4
to 6.6 million tons, as strong customer demand and favorable weather conditions
are allowing us to successfully execute our annual harvest plan. We are
encouraged by the significant year-over-year pricing gains that have been
realized across our operating areas. However, we expect modestly lower
weighted-average net stumpage realizations during the second half of 2022 as
compared to the first half, primarily due to higher cut and haul costs as a
result of elevated diesel prices and a higher proportion of thinning volume.

In our Pacific Northwest Timber segment, we now expect full-year harvest volumes
of 1.6 to 1.7 million tons, due in part to a modest adjustment in our harvest
plan to reflect land sales, as well as reduced China export volume. We further
expect that weighted-average delivered log prices will remain well above prior
year levels for the balance of the year. However, we anticipate these pricing
gains will be partially offset by higher cut and haul costs due to elevated
diesel prices.

In our New Zealand Timber segment, we now expect full-year harvest volumes of
2.6 to 2.7 million tons. While domestic log demand was strong throughout the
first half of the year, export market dynamics were negatively impacted by
ongoing COVID-19 lockdowns in China. We expect export sawtimber prices to
stabilize in the second half of the year in response to improved offtake from
Chinese ports and a reduction in competing log supply. However, we expect that
net stumpage realizations on export volume will continue to be constrained by
elevated port and freight costs. In the domestic market, we anticipate continued
strong log demand, although we expect that pricing will be modestly lower in the
second half of the year as compared to the first half of the year due to added
supply pressure resulting from reduced export volume. Partially offsetting these
headwinds, we expect a higher contribution from non-timber income (carbon credit
sales) in the second half of the year as compared to the first half.
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In our Real Estate segment, following strong Real Estate results in the first
half of the year, we anticipate lower quarterly results for the balance of the
year.


CASH AND CAPITAL RESOURCES


  Our principal source of cash is cash flow from operations, primarily the
harvesting of timber and sales of real estate. As an UPREIT, our main use of
cash is dividends and unitholder distributions. We also use cash to maintain the
productivity of our timberlands through replanting and silviculture. Our
operations have generally produced consistent cash flow and required limited
capital resources. Short-term borrowings have helped fund working capital needs
while acquisitions of timberlands generally require funding from external
sources or Large Dispositions.

SUMMARY OF CASH AND FINANCING COMMITMENTS


                                                                    June 30,                    December 31,
(millions of dollars)                                                 2022                          2021
Cash and cash equivalents (excluding Timber Funds)                        $279.3                          $358.7

Total debt (a)                                                           1,272.1                         1,376.1
Noncontrolling interests in the operating partnership                      123.8                           133.8
Shareholders' equity                                                     1,820.4                         1,815.6

Total capitalization (total debt plus permanent and temporary equity)

                                                        3,216.3                         3,325.5
Debt to capital ratio                                                         40  %                           41  %
Net debt to enterprise value (b)(c)                                           15  %                           14  %



(a) Total debt as of June 30, 2022 and December 31, 2021 reflects long-term debt principal, gross of deferred financing costs and unamortized discounts.

(b) Net debt is calculated as total debt less cash and cash equivalents.


(c)Enterprise value based on market capitalization (including Rayonier, L.P.
"OP" units) plus net debt based on Rayonier's share price of $37.38 and $40.36
as of June 30, 2022 and December 31, 2021, respectively.


AT-THE-MARKET STOCK OFFERING PROGRAM (“ATM”)


On September 10, 2020, we entered into a distribution agreement with a group of
sales agents through which we may sell common shares, from time to time, having
an aggregate sales price of up to $300 million. As of June 30, 2022, $1.0
million remains available for issuance under the program.

The following table outlines common share issuances pursuant to our ATM program
(dollars in millions):

                                                         Three Months Ended
                                                              June 30,                                Six Months Ended June 30,
                                                    2022                   2021                   2022                          2021
Shares of common stock issued under the ATM
program                                                -                2,199,459                726,248                    3,307,273
Average price per share sold under the ATM
program                                                -                   $36.79                 $41.46                       $35.63
Gross proceeds from common shares issued under
the ATM program                                        -                    $80.9                  $30.1                       $117.8




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CASH FLOW

The following table summarizes our cash flows from operating, investing and financing activities for the six months ended June 30, 2022 and 2021:

(millions of dollars)               2022          2021
Cash provided by (used for):
Operating activities               $148.5        $164.6
Investing activities                (34.5)        (49.1)
Financing activities               (184.9)        112.0

CASH RELATED TO OPERATING ACTIVITIES

Cash flow from operating activities decreased $16.1 million compared to the prior year period primarily due to lower operating results and changes in working capital.

CASH USED FOR INVESTING ACTIVITIES


  Cash used for investing activities decreased $14.6 million from the prior year
period primarily due to lower timberland acquisitions ($48.6 million), lower
capital expenditures ($1.9 million) and lower real estate development
investments ($0.3 million), partially offset by lower proceeds from Large
Dispositions ($35.2 million) and other investing activities ($1.0 million).

CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES


  Cash used for financing activities of $184.9 million compares to cash provided
by financing activities of $112.0 million in the prior year period. This is
primarily due to lower net borrowings ($221.2 million), lower net proceeds from
the issuance of common shares under the ATM equity offering program ($78.8
million), higher dividends paid on common shares ($6.1 million), higher share
repurchases ($2.6 million) and lower proceeds from the issuance of common shares
under the Company's incentive stock plan ($1.9 million), partially offset by
lower distributions to consolidated affiliates ($8.5 million), lower debt
issuance costs of ($4.8 million) and lower distributions to noncontrolling
interests in the operating partnership ($0.4 million).


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FUTURE USES OF MONEY


We expect future uses of cash to include working capital requirements, principal
and interest payments on long-term debt, lease payments, capital expenditures,
real estate development investments, timberland acquisitions, dividends on
Rayonier Inc. common shares and distributions on Rayonier, L.P. units,
distributions to noncontrolling interests, and repurchases of the Company's
common shares to satisfy other commitments. During Q2 2022, the Company
announced a 5.6% increase in its quarterly cash dividend from $0.27 to $0.285
per common share and Rayonier, LP unit.

Significant long-term uses of cash include the following (in millions):


                                                                                                 Payments Due by Period
Future uses of cash (in millions)              Total                 2022                  2023-2024                2025-2026             Thereafter
Long-term debt (a)                           $1,271.5                    -                        -                  $246.5               $1,025.0

Current maturities of long-term debt (b)          0.6                    -                      0.6                       -                      -

Interest payments on long-term debt (b)         238.4                 18.1                     72.5                    67.2                   80.6

Operating leases - timberland (c)               189.5                  5.5                     14.8                    14.1                  155.1
Operating leases - PP&E, offices (c)              7.9                  0.9                      2.2                     1.2                    3.6

Commitments - development projects (d)           27.8                 19.7                      3.5                     0.5                    4.1
Commitments - derivatives (e)                    25.4                  8.1                     15.9                     1.4                      -
Commitments - environmental remediation
(f)                                              11.3                  0.7                      7.7                     1.5                    1.4
Commitments - other (g)                           1.1                  0.4                      0.6                     0.1                      -
Total                                        $1,773.5                $53.4                   $117.8                  $332.5               $1,269.8



(a) The carrying amount of long-term debt, net of deferred financing costs and unamortized discounts, is currently carried at $1,263.4 million in our consolidated balance sheets, but at maturity the liability will be $1,271.5 million. See Note 6 – Debt for more information.

(b) Projected interest payments for floating rate debt were calculated based on outstanding principal and interest rates at June 30, 2022.

(c) Excludes planned renewal options.

(d) Commitments – development projects consist primarily of payments expected to be made on our Wildlight and Heartwood projects.

(e)Commitments – derivatives represent expected payments on derivative financial instruments (interest rate swaps and deferred interest rate swaps). See Note 7 – Derivative financial instruments and hedging activities for more information.


(f)Commitments - environmental remediation represents our estimate of potential
liability associated with environmental contamination and Natural Resource
Damages in Port Gamble, Washington. See   Note 11 - Environmental and Natural
Resource Damage Liabilities   for additional information.

(g) Commitments – other includes other purchase obligations.

We expect to fund future uses of cash with a combination of existing cash balances, cash generated from operating activities, remaining issuances available under the Company’s ATM program, material disposals and the use of our revolving credit facilities.

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PLANNED EXPENSES FOR 2022


Capital expenditures in 2022 are expected to be between $80 million and
$82 million, excluding any strategic timberland acquisitions we may make.
Capital expenditures are expected to primarily consist of seedling planting,
fertilization and other silvicultural activities, property taxes, lease
payments, allocated overhead and other capitalized costs. Aside from capital
expenditures, we may also acquire timberland as we actively evaluate acquisition
opportunities.

We anticipate real estate development investments in 2022 to be between
$23 million and $25 million, net of reimbursements from community development
bonds. Expected real estate development investments are primarily related to
Wildlight, our mixed-use community development project located north of
Jacksonville, Florida and Heartwood, our mixed-use development project located
in Richmond Hill just south of Savannah, Georgia.

Our 2022 dividend payments on Rayonier Inc. common shares and distributions to
Rayonier, L.P. unitholders are expected to be approximately $164 million and
$3.7 million, respectively, assuming no change in the quarterly dividend rate of
$0.285 per share or partnership unit, or material changes in the number of
shares or partnership units outstanding.

Future share repurchases, if any, will depend on the Company’s liquidity and cash flow, as well as general market conditions and other considerations, including capital allocation priorities.

We have no mandatory pension contribution requirements for the current year.


Full-year 2022 cash tax payments are expected to be approximately $15.0 million,
primarily related to the New Zealand subsidiary. First quarter cash tax payments
were elevated due to the required timing of tax payments for our New Zealand
subsidiary following the full utilization of its NOLs.

OFF-BALANCE SHEET ARRANGEMENTS


We utilize off-balance sheet arrangements to provide credit support for certain
suppliers and vendors in case of their default on critical obligations, and
collateral for outstanding claims under our previous workers' compensation
self-insurance programs. These arrangements consist of standby letters of credit
and surety bonds. As part of our ongoing operations, we also periodically issue
guarantees to third parties. Off-balance sheet arrangements are not considered a
source of liquidity or capital resources and do not expose us to material risks
or material unfavorable financial impacts. See   Note 12 - Guarantees   for
details on the letters of credit and surety bonds as of June 30, 2022.

SUMMARY OF GUARANTOR’S FINANCIAL INFORMATION


In May 2021, Rayonier, L.P. issued $450 million of 2.75% Senior Notes due 2031
(the "Senior Notes due 2031"). Rayonier TRS Holdings Inc., Rayonier Inc., and
Rayonier Operating Company, LLC agreed to irrevocably, fully and unconditionally
guarantee jointly and severally, the obligations of Rayonier, L.P. in regards to
the Senior Notes due 2031. As a general partner of Rayonier, L.P., Rayonier Inc.
consolidates Rayonier, L.P. and has no material assets or liabilities other than
its interest in Rayonier, L.P. These notes are unsecured and unsubordinated and
will rank equally with all other unsecured and unsubordinated indebtedness from
time to time outstanding.

Rayonier, L.P. is a limited partnership, in which Rayonier Inc. is the general
partner. The operating subsidiaries of Rayonier, L.P. conduct all of our
operations. Rayonier, L.P.'s most significant assets are its interest in
operating subsidiaries, which have been eliminated in the table below to
eliminate intercompany transactions between the issuer and guarantors and to
exclude investments in non-guarantors. As a result, our ability to make required
payments on the notes depends on the performance of our operating subsidiaries
and their ability to distribute funds to us. There are no material restrictions
on dividends from the operating subsidiaries.


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The summarized balance sheet information for the consolidated obligor group of
debt issued by Rayonier, L.P. for the six months ended June 30, 2022 and year
ended December 31, 2021 are provided in the table below:

(in millions)               June 30, 2022       December 31, 2021
Current assets                $272.0                 $335.8
Non-current assets             100.9                   54.6
Current liabilities             19.2                  146.0
Non-current liabilities      1,800.6                1,821.7
Due to non-guarantors          566.3                  570.4


The summarized results of operations information for the consolidated obligor
group of debt issued by Rayonier, L.P. for the six months ended June 30, 2022
and year ended December 31, 2021 are provided in the table below:

(in millions)                    June 30, 2022       December 31, 2021
Cost and expenses                  ($14.6)                ($27.5)
Operating loss                      (14.6)                 (27.3)
Net loss                            (30.0)                 (69.7)
Revenue from non-guarantors         468.4                1,109.4



PERFORMANCE AND LIQUIDITY INDICATORS


The discussion below is presented to enhance the reader's understanding of our
operating performance, liquidity, and ability to generate cash and satisfy
rating agency and creditor requirements. This information includes two measures
of financial results: Adjusted Earnings before Interest, Taxes, Depreciation,
Depletion and Amortization ("Adjusted EBITDA") and Cash Available for
Distribution ("CAD"). These measures are not defined by Generally Accepted
Accounting Principles ("GAAP"), and the discussion of Adjusted EBITDA and CAD is
not intended to conflict with or change any of the GAAP disclosures described
above.

Management uses CAD as a liquidity measure. CAD is a non-GAAP measure of cash
generated during a period that is available for common share dividends,
distributions to operating partnership unitholders, distributions to
noncontrolling interests, repurchase of the Company's common shares, debt
reduction, timberland acquisitions and real estate development investments. CAD
is defined as cash provided by operating activities adjusted for capital
spending (excluding timberland acquisitions and real estate development
investments), CAD attributable to noncontrolling interests in Timber Funds, and
working capital and other balance sheet changes. CAD is not necessarily
indicative of the CAD that may be generated in future periods.

Management uses Adjusted EBITDA as a performance measure. Adjusted EBITDA is a
non-GAAP measure that management uses to make strategic decisions about the
business and that investors can use to evaluate the operational performance of
the assets under management. It excludes specific items that management believes
are not indicative of the Company's ongoing operating results. We define
Adjusted EBITDA as earnings before interest, taxes, depreciation, depletion,
amortization, the non-cash cost of land and improved development, non-operating
income and expense, operating income attributable to noncontrolling interests in
Timber Funds and Large Dispositions.


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We reconcile Adjusted EBITDA to Net Income for the consolidated Company and to
Operating Income for the segments, as those are the most comparable GAAP
measures for each. The following table provides a reconciliation of Net Income
to Adjusted EBITDA for the respective periods (in millions of dollars):

                                                               Three Months Ended                              Six Months Ended
                                                                    June 30,                                       June 30,
                                                          2022                     2021                  2022                     2021
Net Income to Adjusted EBITDA Reconciliation
Net Income                                                 $25.3                   $63.4                  $56.3                    $78.5
Operating income attributable to NCI in Timber Funds           -                    (1.6)                     -                     (2.7)
Interest, net attributable to NCI in Timber Funds              -                     0.2                      -                      0.2

Net Income (Excluding NCI in Timber Funds)                  25.3                    62.0                   56.3                     76.0

Interest, net income and miscellaneous attributable to spokesman

                                                  8.9                    12.8                   17.1                     22.7
Income tax expense attributable to Rayonier                  1.3                     6.8                    6.8                     10.3
Depreciation, depletion and amortization
attributable to Rayonier                                    35.8                    37.6                   83.2                     77.9
Non-cash cost of land and improved development              11.8                     5.2                   17.1                      7.0

Non-operating expense                                          -                     1.2                    0.6                      1.2

Large Dispositions (a)                                         -                   (30.3)                     -                    (30.3)

Adjusted EBITDA                                            $83.0                   $95.3                 $181.1                   $164.7




(a)Large Dispositions are defined as transactions involving the sale of
timberland that exceed $20 million in size and do not have a demonstrable
premium relative to timberland value. In June 2021, we completed the disposition
of approximately 9,000 acres located in Washington for a sales price and gain of
approximately $36.0 million and $30.3 million, respectively.
































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The following tables provide a reconciliation of Operating Income by segment to
Adjusted EBITDA by segment for the respective periods (in millions of dollars):
                                                                                                                                                                                  Corporate
                                                                                                                                                                                     and
Three Months Ended             Southern Timber         Pacific Northwest

Timber New Zealand Timber Timber Funds Real Estate

         Trading               Other               Total
June 30, 2022
Operating income (loss)            $24.1                          $2.9                         $8.0                      -                $11.0               ($0.4)               ($10.1)             $35.5

Depreciation, depletion and
amortization                        14.7                          11.3                          6.9                      -                  2.6                   -                   0.3               35.8
Non-cash cost of land and
improved development                   -                             -                            -                      -                 11.8                   -                     -               11.8

Adjusted EBITDA                    $38.7                         $14.3                        $14.9                      -                $25.4               ($0.4)                ($9.8)             $83.0

June 30, 2021
Operating income                   $17.0                          $1.9                        $20.7                   $2.0                $50.5                $0.4                 ($8.0)             $84.4

Operating income attributable
to NCI in Timber Funds                 -                             -                            -                   (1.6)                   -                   -                     -               (1.6)

Depreciation, depletion and
amortization                        13.6                          12.0                          7.0                    1.0                  3.7                   -                   0.3               37.6
Non-cash cost of land and
improved development                   -                             -                            -                      -                  5.2                   -                     -                5.2

Large Dispositions (a)                 -                             -                            -                      -                (30.3)                  -                     -              (30.3)
Adjusted EBITDA                    $30.6                         $13.9                        $27.7                   $1.4                $29.1                $0.4                 ($7.7)             $95.3




(a)Large Dispositions are defined as transactions involving the sale of
timberland that exceed $20 million in size and do not have a demonstrable
premium relative to timberland value. In June 2021, we completed the disposition
of approximately 9,000 acres located in Washington for a sales price and gain of
approximately $36.0 million and $30.3 million, respectively.

                                                                                                                                                                                  Corporate
                                                                                                                                                                                     and
Six Months Ended               Southern Timber         Pacific Northwest

Timber New Zealand Timber Timber Funds Real Estate

         Trading               Other               Total
June 30, 2022
Operating income (loss)            $54.4                          $9.5                        $13.4                      -                $21.2               ($0.1)               ($17.7)              $80.8

Depreciation, depletion and
amortization                        32.7                          26.2                         11.9                      -                 11.7                   -                   0.6                83.2
Non-cash cost of land and
improved development                   -                             -                            -                      -                 17.1                   -                     -                17.1

Adjusted EBITDA                    $87.1                         $35.8                        $25.3                      -                $50.1               ($0.1)               ($17.0)             $181.1

June 30, 2021
Operating income                   $34.3                          $3.2                        $34.7                   $3.5                $52.2                $0.7                ($15.6)             $112.9

Operating income attributable
to NCI in Timber Funds                 -                             -                            -                   (2.7)                   -                   -                     -                (2.7)

Depreciation, depletion and
amortization                        27.9                          28.3                         14.2                    1.6                  5.3                   -                   0.6                77.9
Non-cash cost of land and
improved development                   -                             -                            -                      -                  7.0                   -                     -                 7.0

Large Dispositions (a)                 -                             -                            -                      -                (30.3)                  -                     -               (30.3)
Adjusted EBITDA                    $62.3                         $31.5                        $48.9                   $2.3                $34.1        
       $0.7                ($15.1)             $164.7




(a)Large Dispositions are defined as transactions involving the sale of
timberland that exceed $20 million in size and do not have a demonstrable
premium relative to timberland value. In June 2021, we completed the disposition
of approximately 9,000 acres located in Washington for a sales price and gain of
approximately $36.0 million and $30.3 million, respectively.





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The following table provides a reconciliation of cash flow from operating activities to adjusted CAD (in millions of dollars):

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