• Timberland As An Investment
   
• Why Should You Invest in Timberland?
   
• Experience & Expertise
   
• Transaction Development
   
• Acquisition & Sale Process

Timberland offers many appealing benefits to investors such as portfolio diversification, excellent returns and low-risk investing. American Forest Management (AFM) recognizes the value of including timberland in an investment portfolio and is skilled in identifying sound opportunities, bringing interested parties together and working with investors throughout the entire acquisition process and beyond. We agree with Not Just for the Birds: Timber is a Commodity for the Long Run, an article published in the New York Times, and feel journalist Elizabeth Reed Smith eloquently summarized timberland investments. “Investors who have lost their patience with the stock market may want to take a walk in the woods. Trees, harvested as timber, make up one of the few investments whose returns have outpaced stocks, bonds, and real estate over the last 30 years.”

Why Should You Invest In Timberland?

• Portfolio Diversification – Timberland returns are negatively correlated with the traditional equities market and move independently from other asset classes.
• Excellent Returns – Income can be generated through timber sales and other activities such as hunting leases and participation in various government programs while the timber is growing. In most instances, the profits from the sale of land and timber are treated as capital gains and may be taxed at a rate not to exceed 20%. This can vary for individual investors.
• Low-Risk Investing – Forest investments have produced equity-like returns with bond-like risk. Trees grow in value regardless of market conditions. Also, timber can be harvested when prices are favorable or stored on the growing tree until prices are better.
   

During the past twenty years, changes in timberland ownership patterns have emerged. In the early 1980’s, industry began selling properties to monetize their investments and generate cash which created an opportunity for investors to begin investing in timberland. This trend is expected to continue as companies continue to sell their holdings

Experience and Expertise

For over 40 years, AFM has been successfully providing services to timberland investors. Our Investment Services personnel bring years of experience and expertise to every transaction. This experience allows AFM personnel to assess each client’s specific situation and this expertise provides the needed resources to propose strategic and tactical procedures to implement the client’s plan.


AFM Investment Services personnel are actively engaged in the timberland investment marketplace through participation in forestry organizations such as:

• Association of Consulting Foresters,
• Society of American Foresters,
• Forest Resources Association and
• American Forest and Paper Association.

Our participation in such organizations combined with our experience keeps our principals well-informed of trends in the industry and has provided a network of knowledgeable contacts.

Transaction Development

With broad experience and independence, AFM is highly qualified to help the investor and corporate landowner address timberland possibilities made by promoters of timberland investment. We are constantly scouring the market for opportunities and maintaining contact with potential buyers and sellers. When opportunities arise, we begin the acquisition/sale process

Acquisition/Sale Process

The acquisition process is methodical in nature.

• The first step is initial contact and evaluation,
• Followed by review of property and inventory data. Managing timberland for competitive financial returns requires a wealth of information on the property’s current and potential timber volumes and land value.
• AFM provides informed and tested economic resource analysis by utilizing a wide array of locally specific, yet proven, models to make informed projections of the biological growth of timber and to evaluate economic feasibility of alternative management strategies.
• Based on our findings and how they correspond with the client’s investment objectives, we proceed with assisting in the buyer/seller negotiation process.
  
  
  
   

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