Rayonier Inc (RYN) March 3, 2026 Conference Transcript

And welcome to Citi's 2026 Global Property CEO Conference. I'm Anthony Petteneri with Citi Research, and we're very pleased to have with us Ray Neer and CEO Mark McHugh and CFO Wayne Wastecheck. This session is for Citi clients, and disclosures have been made available at the Corporate Access Desk. To ask a question, you can raise your hand or go to liveqna.com and enter code GPC26 to submit questions. Mark, I'm going to turn it over to you to introduce Rainier, and we'll get into Q&A.

Yeah, thanks, Anthony, and thank you to Citi for hosting us today. I'm going to start by providing a high-level overview of Rainier for those that are less familiar with the story, including some highlights of our recent merger with Potlash Deltic, and then we'll make sure to leave plenty of time for Q&A. Just for reference, I'm going to be speaking to the presentation that was posted to our website on Monday under the heading Featured Presentation. All right, so let's start on page four, which lays out the rationale for our recent merger of equals with Potlash Deltic. And really the key theme here is we believe that this combination creates a stronger organization that will allow the combined company to realize benefits that neither of us could have achieved independently. In terms of the strategic benefits, the deal significantly expands our Timberland portfolio, which now comprises about 4.1 million acres. It also enhances our platform to realize value from both land-based solutions as well as HBU real estate. And lastly, it offers exposure to an efficient and scalable wood products manufacturing business, which really gives us another lever with which to optimize our overall portfolio value. In terms of the financial benefits, first and foremost, we're targeting annual run rate synergies of $40 million, which should translate to significant value upside. We also believe that the larger scale and better trading liquidity of the combined company will translate to an improved cost of capital over time. And lastly, from a balance sheet standpoint, the combined company is very well positioned with a conservative leverage profile and significant capital allocation flexibility. So, again, putting that all together, we really believe that this merger creates a much stronger competitor in the space. We think this is going to enhance our strategic optionality going forward. Skipping ahead to slide six, here we provided an overview of the asset profile of the combined company. Again, we now own approximately 4.1 million acres of timberland, including roughly 3.2 million acres across the U.S. South and about 930,000 acres in the Northwest, primarily in Idaho and Washington. In addition, we own six sawmills with total capacity of 1.2 billion board feet annually, as well as one plywood facility. On the real estate side, we now have three real estate development projects with the addition of Chanel Valley from the Potlatch Deltic portfolio. And we now also have an opportunity to really leverage a leading rural HBU platform over a much larger footprint of land. And lastly, within Land-Based Solutions, a combined company now has 80,000 acres under option for solar development, as well as 154,000 acres under lease for carbon capture and storage. And notably, over three-quarters of the combined company's portfolio is in the U.S. South, and that's really the area where we see the most long-term upside potential from land-based solutions. On slide seven, we've highlighted some of the key trends that are driving really future value creation opportunities within the portfolio. And they all generally center around transitioning land use towards a higher value purpose, such as rural HBU, real estate development, or land-based solutions. Rural HBU is a business that's been part of our strategy for a long time. We generally sell 1% to 1.5% of our land base into HBU markets, typically at premiums ranging from 50% to over 100% above Timberland value. That's a business that's been very consistent for us over time. But land-based solutions and real estate development, that's really where we see the significant growth opportunity for the company longer term. Our land-based solutions business includes activities such as leasing land for solar development, leasing land or really subsurface poor space rights for carbon capture and storage, or monetizing carbon stored in standing timber inventory into the carbon offset market. Our real estate development business involves investing in entitlements and horizontal infrastructure improvements, really with a view towards enhancing the value of those lands and establishing a catalyst for growth in those areas. We only do this in very select market areas, you know, really where we stand to benefit. Our portfolio stands to benefit from those investments in the adjacent portfolio. And this next slide illustrates why we're so excited about these new growth opportunities. What this chart shows is the potential value uplift per acre that we believe can be achieved by transitioning land use into some of these alternative land uses. So, for example, if you take an acre of U.S. South Timberland that has a value of, say, $2,000 to $3,000 an acre, and you're able to transition that acre into a carbon capture and storage lease, that has the potential to increase the value of that acre by up to five times. If you're able to transition that acre into a solar land lease or an unimproved development use, that has the potential to increase the value of that acre by up to 10 times. And if we're able to transition that acre into an improved development use, like our projects in wildlife, hardwood, and Chenelle Valley, we believe that has the potential to increase the value of that acre by up to 15 times. So we really see significant value creation potential from optimizing land use, especially as we grow the number of acres within the portfolio that we believe are suitable for these alternative land uses. Slide nine provides an overview of the combined company's timberland portfolio. Again, roughly 3.2 million acres in the U.S. South and about 930,000 acres in the Northwest. As you can see from this visual, the portfolio is very well diversified in both regions. As we've discussed in the past, timber supply demand dynamics are highly localized in nature, so we really think there's a benefit in the diversification of this merger from our shareholders' perspective. Skipping ahead to slide 11, we provided a snapshot of the company's wood products manufacturing operations. Again, as I noted earlier, we have roughly 1.2 billion board feet of lumber capacity across six sawmills, which positions the combined company as a top 10 lumber producer in the United States. And while Rainier didn't historically own manufacturing assets prior to the merger, we're certainly excited about the opportunity to integrate what we see as a very low-cost and large-scale lumber platform into the portfolio going forward. Skipping ahead to slide 14, I'll just touch briefly on our real estate business and some of the trends that we've been seeing there. Over the last decade, both Rainier and Potlatch Deltic have seen significant increases in our HBU value realizations. Both companies have also seen a shift in our sales mix towards these higher value development sales. So we're certainly encouraged by the fact that land values continue to appreciate, despite some challenges that we've seen in timber markets here of late. And again, we're very excited about the prospect of combining these operations and leveraging that HBU platform over a much larger land-based post-merger. Skipping ahead to slide 16, here we provide an overview of some of our focus areas within land-based solutions. Now, we've been working very hard over the last few years to build up a pipeline of opportunities in land-based solutions. This pipeline should translate to meaningful cash flow growth in the coming years. As I noted earlier, we have roughly 80,000 acres under option for solar development and over 150,000 acres under lease for CCS. So as we start to see some of these solar options convert into long-term leases, and as some of those CCS leases ultimately convert over to injection royalties, this really should drive significant growth in cash flow per acre relative to what we're able to generate on those lands currently through our timber operations. So you also see a lot of upside in carbon markets long term. Key buyers of carbon offsets are increasingly looking for very large scale projects to meet their net zero ambitions. And we feel like the combined company is going to be much better positioned to be that potential supplier of choice into the carbon offset market. So lastly, I'll just wrap up with some of our capital allocation priorities on slide 18. One of the key factors that really allowed this merger to come together is the fact that both companies shared a very similar philosophy around capital allocation. Our mantra around capital allocation has always been to be nimble and opportunistic with a view towards building long-term value per share. And that's absolutely going to remain our focus going forward. More specifically, just to touch on some of those priorities, we plan on maintaining our investment-grade credit rating, returning capital to shareholders through sustainable dividends, repurchasing our shares opportunistically, and longer-term investing in value-accredited growth opportunities when it makes sense to do so. With all that said, we certainly see buybacks as one of the more compelling capital allocation alternatives available to us today. And I note that we have been active in the buyback market here recently. So, in closing, I'll just reiterate, you know, we believe we're a very well-positioned post-merger to create value for shareholders, and we're really looking forward to getting through the merger integration. And with that, Anthony, happy to open up to questions.

Great, great. Thanks, Mark. That was an extremely helpful introduction. Maybe if we can go into the individual businesses in a little more detail, and I'd encourage people to jump in with questions, but maybe if we can just start off with Timberlands and in the south. Can you talk about market conditions in terms of pricing, activity, maybe broad thoughts on 26 for your core Timberlands business, what you're seeing?

Yeah, sure. 2025 was certainly a tough year in the southern timber business. It was kind of a perfect storm of hurricane salvage volume in one of our larger market areas in the wake of Hurricane Helene in late 2024, coupled with really dry weather conditions that just kind of exacerbated that supply. imbalance. And then you couple that with some mill shutdowns we saw in the area. It was certainly a challenging year. We certainly saw some pricing headwinds. We feel as though that that's largely settled out. We have guided toward modest uptick in pricing in 2026 relative to 2025. So again, kind of feel like we're bouncing off the bottom a little bit here. But overall, we think we're through some of the more challenging elements of what we've seen in the last 12 months.

Great. And is there any kind of distinction you'd make between kind of saw log market conditions and pulpwood market conditions? And then, you know, within the south, are you seeing any kind of variation between, you know, maybe coastal markets, inland markets? Any comments there?

Yeah, sure. I mean, in terms of saw logs, I mean, we certainly saw greater stability in saw log pricing in 2025 relative to pulpwood pricing. And again, we talked about kind of what the factors driving some of those declines we saw in pulpwood pricing. You know, the longer term story or set up for solid markets, I think, is more constructive. We have seen a fair amount of capacity come out of Canada. We have seen U.S. mills ramping up production in response to that. And so, you know, even in a relatively flat demand environment, we would expect to, you know, see some momentum in saw timber prices in 2026. And then just in terms of the geographic differences between inland and coastal, So, look, the coastal markets historically have been our strongest markets from a pricing standpoint, particularly pulpwood pricing there has historically been very strong. That's also where we've seen some of the greater weakness here of late in terms of those price declines. I will say that those markets remain some of the strongest markets in the U.S. South. The pulpwood pricing in those areas, even with these declines, is still among the best in the U.S. South. But it's certainly been the area where we've seen some of these stiffer headwinds in the last 12 months.

And I'm wondering if you can give us the same walkthrough for the Northwest and maybe touch upon the Idaho index pricing, which is a little unique.

Yeah, I'll maybe turn it over to Wayne to touch on that.

Yeah, in our Northwest region, the pricing dynamics are a little bit different than the U.S. South, where, especially in Idaho, where the largest private landowner in the state of Idaho, we own over 625,000 acres. And in that market, because of our large presence, we're able to have an indexing arrangement in that market. And what that does is we're indexed to the price of lumber. So approximately 75% of our saw logs are indexed to the price of lumber. And certainly that provides a benefit to us where markets trend upwards. But, you know, it also provides benefits to our customers as well because they have a dedicated supply of logs that they need to run their mill. So it benefits both sides, but certainly on our Timbaland business where we've, especially, you know, during that kind of COVID, post-COVID era, we saw a significant upside in log prices because of that indexing arrangement as, you know, compared to what we've experienced and what we've experienced this time.

And just given the product mix in the Northwest, we're upwards of 85% saw timber relative to pulpwood, where that mix in the U.S. South tends to be more kind of a 50-50 balance. You certainly have more direct exposure to what's going on in lumber markets, and you tend to see kind of a tighter correlation to what's happening in lumber pricing and log markets in the Northwest relative to the South.

Great, great. I'm wondering if you could talk about – we talked about logs. I'm wondering if you could talk about the market for timberlands themselves. in terms of trends you're seeing, you know, dollar per acre valuations, you know, sales activity, you know, how you'd compare that versus the last couple of years?

Yeah, you know, like we talked about on our last quarter earnings call, you know, Timberland valuations continue to be very strong in the private market. You know, by our account, there's, you know, around $10 billion of capital available for Timberland M&A. We typically see $2 billion to $3 billion of Timberland assets trade hands on an annual basis. There's not a lot in the market right now, but valuations have certainly held up very well. And again, we talked about how that impacts our HBU business as well. We've seen a very strong trajectory in land prices and HBU values. We certainly haven't seen it in the stock price, but again, we've been capitalizing on that from a buyback standpoint here recently.

Great. In terms of Timberland returns, can you kind of level set us in terms of maybe what level of returns Sutherland Timberland owners are targeting and maybe the components of those returns, how that's changed, or if there's a way to think about cap rate for timber?

Yeah, you know, recognize that Timberland is generally underwritten on a discounted cash flow basis using real discount rates. And those real discount rates are generally kind of in the four to five percent range. And so kind of call it four to five percent real or on a nominal basis, you know, assuming kind of two to two and a half percent inflation, you know, probably call it six to seven percent. I guess the way that timberland generates return is quite a bit different than other asset classes in the sense that, you know, your timber harvest cash flow is one component of that return. But then you have these other components of return, such as productivity enhancements. The fact that, you know, stands that we're harvesting today were planted 25 years ago using, you know, then current tree genetics, then current silviculture applications. The stands that we're planting today, we expect to get greater productivity off of over time. Obviously, HBU is also incremental to that. The fact that within our southern portfolio, we're typically selling 1% to 1.5% of that portfolio annually, again, at premiums, 100 plus percent above timberland value. So that's additive to that return as well. And then really the new component of growth that we've talked a lot about is land-based solutions. Again, that ability to convert land that as timber is generating, call it $75, $80 per breaker of EBITDA into these alternative uses that can generate, you know, five, 10, 15 times that. And so, again, it's a little bit, if you look at a pure EBITDA multiple on private market Timberland transactions based on harvest cash flows, those multiples are typically 40 times. But again, that doesn't really tell the whole story around what people are underwriting from a return standpoint.

I don't know if there's any questions, but, you know, if we can move to wood products and before we talk about kind of market conditions within wood products and lumber just wondering you know potlatch deltick had the the most uh sensitivity to lumber prices or leverage to lumber prices of the timber reeds reindeer didn't have a wood products business as the two come together i'm just wondering if you kind of philosophically how you think about the place of wood products within the portfolio um maybe over the cycle

yeah you know again we find um the addition of this manufacturing platform into the portfolio, you know, we find that to be appealing

long term. I think, you know, our thinking, Rainier's thinking over the years has certainly shifted a bit in terms of openness to owning manufacturing assets. And some of that is just around our ability to control our own destiny in markets that are important to us. We've talked a lot about growth drain ratios and how those can impact timber economics and local markets. Historically, Rainier didn't really have an ability to influence the drain or the consumption of timber in any given market area. And, you know, particularly as we've seen some headwinds and some mill shuts in some market areas that are important to us, you know, suffice it to say, I think we see some value in the ability to control our own destiny. You know, Rainier was never going to go out and build a greenfield mill or buy a mill on a one-off basis. We just, that wasn't a poor competency of the company. But now with this, you know, very efficient, low cost, scalable with products manufacturing platform, that's at least something that we can look at on a go forward basis. That's not to suggest that we have ambitions to meaningfully grow that business, but we kind of look at it as another tool in the capital allocation toolkit with which we can optimize the overall portfolio value of the company.

Great, great. And then just moving to wood products, kind of market conditions, you guided to kind of a 1Q EBITDA, you know, modest recovery. I think random lengths prices are up maybe 15% year to date. So we've seen this a little, you know, kind of a lumber recovery. I'm just wondering if you could talk about current market conditions and any kind of read throughs as we get into kind of the spring building season.

Yeah, I mean, we saw a nice lift in lumber prices early in the year. It's kind of flattened off here in the last few weeks, but still kind of meaningfully higher than what we saw, you know, call it four to six months ago. And so overall, I'd say a positive backdrop, certainly relative to the second half of 2025. But really what I think is going to drive potential incremental price improvement is really some incremental relief in mortgage rates, some incremental demand on new home construction, on R&R activity. Again, we've talked a lot about the mortgage lock-in effect, the impact that that's had on resale activity, and that's certainly hampered R&R demand. People tend to remodel a home either right after they buy it or just before they're about to sell it. And so the fact that there's been this sort of dearth of resale activity here of late has certainly been a headwind for R&R spending. But again, if we see some incremental mortgage rates kind of briefly drop below 6 percent, and so it's kind of a big headline that that was sort of a psychological hurdle for a lot of people. I think we're modestly above that right now, but trending in the right direction. So again, overall, more constructive backdrop, we think, than kind of where we were sitting six, nine months ago.

Great, great. And then, I mean, last year we saw tariffs, import duties, Section 232. I mean, Canadian lumber, I think it went to 35%, but we didn't necessarily see a big improvement in U.S. lumber prices. And I'm just wondering if you could talk about the dynamic with Canadian lumber and the tariffs or the import duties, if you're seeing maybe a lagged impact or how you think about that. and I don't know if there's a way to think about sort of cash costs for maybe some of these higher cost producers.

Yeah I mean we didn't see the immediate impact that perhaps some had anticipated but I do think that the more recent lumber price response we've seen has been largely supply driven. I mean demand has been relatively flattish and so we have seen some lumber price growth here in the last few months and I think that that was supply driven. I do think that that was related to the increase in the duties as well as the Section 232 tariff. So again, overall, Canadian mills are generally not profitable today with the duties and the impact of the tariffs. That has really accrued to the benefit of U.S. mills and again, that's translated to some lumber price improvements. We ultimately think that that will translate to some saw timber price improvements as well.

And you talked about real estate, but I'm wondering I guess two questions here. First, you know, the guide that you gave for, I think, 180 to 200 million of EBITDA, if there's any sort of finer point that you can put on, you know, mix property types, you know, sort of HBU values that are embedded in that guidance. Yeah, sorry.

Yeah, we generally don't provide a breakdown within our real estate guidance. You know, as we've talked about extensively in the past, real estate results tend to be pretty lumpy. They tend to be driven by, you know, a handful of larger transactions. We're always kind of generally managing to kind of an overall annual target. There is some cadence to this business. When you own millions of acres, some portion of it invariably falls out into this HBU market. And so there is some level of predictability there. But again, when we're trying to kind of guide to what is a kind of reasonable expectation of what the next year looks like, you know, we generally point to the historical averages and that's, you know, we're going to sell one, one and a half percent of our land base in the U.S. South and, you know, generally targeting, you know, 50 plus percent premiums above Timberland value. But like I said, on the earnings call, those have more recently been trending, you know, well higher than that. I mean, for the Rainier portfolio, we've been realizing premiums, you know, well in excess of 100%. So that's, that business has really been a bright spot in the portfolio. Like I said, land values have continued to appreciate, which makes sense kind of in the environment that we're in kind of, you know, flight quality, hard asset value. You know, again, it's logical that land values have continued to move up and we're really trying to capitalize on that through our HVU business, but no, no real kind of color on the specific breakdown within that real estate guidance.

Right. Right. Maybe sticking with real estate. I mean, you have these unique development properties with wildlife, heartwood, Chenal Valley. Can you just talk a little bit more about those and sort of Rainier's role, like what you're doing, what, you know, earnings contribution?

Yeah, our role is really to get entitlements on the land and to make investments in horizontal infrastructure improvements. So we're not doing any vertical development. We're not looking to produce, you know, income generating assets through that business. we're really, you know, creating that catalyst for growth, you know, investing in those horizontal improvements that then, you know, meaningfully enhance the values in that area. And just to be clear, our strategy here has always been about, you know, really enhancing value over a larger footprint of land. When we initiated that wildlife project, we said, look, if we own a thousand acres here, we would never undertake this project. We don't aspire to be real estate developers, you know, candidly at the time, it wasn't really a core competency of the company. I think it has become a core competency of the company over the last decade. But really, the play for us was always, we own this very unique, high-value portfolio of land. But importantly, we own 50,000 acres within a 10-mile radius of wildlife. And so the play for us has always been to have those investments stand on their own from a competitive return standpoint. But really, the broader play for us is to enhance the value of all that surrounding land that we own in that area. And so, you know, if you look at, you go north from downtown Jacksonville, you know, 20 miles, you get to A1A, intersection of A1A and I-95, you know, Rainier essentially owns the vast majority of the land in the northeast and northwest quadrant of that intersection of A1A and I-95. So it is a very unique portfolio of land. It's an area where it really was poised to benefit from these types of investments. And we've been really pleased with the momentum that we've seen in that project and again heartwood was a very similar story uh approximate to uh to savannah georgia uh chanel valley is is a bit of a different uh play in the sense that that project started uh back in i believe in the mid 80s and so it's it's in the relatively late stages of its life cycle um but it you know pretty consistently generates 100 to 130 uh finished lot sales annually and so it's a pretty steady contributor to earning to earnings at this point um but but relatively stable, whereas wild light and heartwood are certainly kind of more early innings, you know, and we're anticipating a pretty meaningful growth trajectory from where we are currently.

Great, great. And then, you know, land-based solutions, can you talk more about, you know, solar, CCS, I guess, mineral, land resources, and carbon markets? If you were to frame those four opportunities, you know, from kind of a near-term perspective and then a long-term perspective, Can you just walk us through your exposure and where you maybe see kind of the most upside?

Yeah, I mean, I'll start with the near-term perspective. I think solar probably has the most kind of visible growth opportunities we sit here today. As I noted in the presentation, we have roughly 80,000 acres under option for solar development. We currently only have 600 acres that are actually in a solar lease. And so really the opportunity is that as those options mature and they're, you know, some portion of those options are ultimately converted into solar land leases, that will translate to a very meaningful lift in cash flow. Again, you know, generated, call it $75, $80 per acre of EBITDA last year in our southern timber business. The rents that we're seeing on these solar land leases are upwards of $800 or even $1,000 an acre. So very meaningful lift in cash flow. And we're solely acting as a land lessor. So it's essentially, you know, 100 percent EBITDA free cash flow conversion for us. We don't have any capital obligations associated with those leases, and they generally have some form of a CPI type escalator in them, typically with, you know, 25 plus year terms with multiple extension options. So, you know, we do that very high quality and probably high multiple cash flow. So that's a very meaningful opportunity for us. And given all the work that we put into building up that option portfolio, really in the last three years, we expect that that's going to start to turn over and start to materialize in leases here over the course of the next couple of years. So, again, that's probably the most visible, tangible, near-term opportunity. In terms of carbon markets, I'd say that's an area where we've probably gotten more bullish in the last couple of years. you know, candidly for Rainier, the economics of selling carbon credits just hadn't ever really worked for our portfolio, just given the relative price point that we could sell timber for in most of the markets that we're in. You recognize you have to do something different on the land base to generate carbon credits. You can't just continue to harvest timber and sell carbon credits on top of that. You need some form of harvest deferral or investment in incremental carbon stocking on the land in order to merit the carbon credits. We're now seeing with some of these large scale buyers coming into the market and again, really wanting these large scale projects, they're willing to pay for quality projects. And that pricing and that sort of relative NPV map, I'd say is getting much more compelling relative to what we saw even just two, three years ago. So, you know, doing a lot of work on that front right now. And again, pretty optimistic about the long-term prospects for that business. And again, also optimistic about our ability to be a meaningful supplier into that market with a combined company. Again, the large-scale buyers, they want very large-scale projects, and that necessitates a large land base to support that. So again, we think the merger really positions us well in that market. Carbon capture and storage, that's one that we're, again, likewise very optimistic about, but it's taking longer to materialize. You know, these classics injection well permits just take a long time to kind of work through. Again, we have 150,000, 154,000 acres under lease for CCS currently, but we're working through the process of getting those sites, you know, with the counterparties to get those sites ultimately permitted. And where we see the big lift on those or potentially the big lift on those is when those lease payments convert over to injection royalties. But again, there's a long process to get to that point. So probably longer dated as we kind of think about how that might contribute to cash flow, but very optimistic about the pipeline we have currently to support that over the long term.

Great. Have policy changes with the administration have changed the opportunity set for solar or CCS or credits or has not been impactful, or how would you characterize it?

I don't think that it's been significantly impactful. I mean, certainly all else being equal, the rollback of some of those economic incentives, particularly around solar development, has necessitated some kind of reanalysis of NPV and kind of IRR expectations. But overall, solar is still very competitive with pretty much any other form of electricity generation. And so we haven't seen kind of these option agreements get canceled at scale. We're still seeing a lot of momentum behind that business. By most estimates, there's something like 30 to 40 gigawatts of new solar capacity additions that are expected to come online annually for the foreseeable future. And just to put that in context, it requires about seven acres of solar panels per megawatt of generation capacity. And so, again, that annual estimate of utility solar additions of 30 to 40 gigawatts implies a land need of about 210 to 280,000 acres per year. So again, a very significant land need for these, for the build out of these, these solar projects.

Right, right. But maybe kind of saving the best for last on capital allocation. I mean, you do have balance sheet capacity. Can you just talk a little bit more about, you know, optimal leverage, you know, maybe the opportunity with buybacks and then on dividend, you know, wood products profitability historically is kind of volatile? Like, how do you think about dividend in given potential volatility in what products pricing?

Yeah, I mean, starting with leverage, you know, we've been pretty clear around our leverage target of wanting to maintain net leverage at less than or equal to three times net debt EBITDA. And so, you know, and we've stated that on mid-cycle EBITDA, so recognizing that, you know, we characterize what products contribution is being more as a trough point in the cycle currently, you know, we'll kind of measure that long-term leverage target more around our view of mid-cycle EBITDA. In terms of dividend funding, you know, we feel pretty comfortable with where the dividend sits today, certainly from a funding standpoint, and that's with the lumber business really at a trough point in the cycle. We're going to have some organic cash flow growth, you know, really around the synergies realization through the merger. And obviously, you know, long-term, we want to grow the dividend. We want to grow cash flow to support the dividend, But some of that is going to have to kind of come from pricing growth and saw timber and lumber, which we think will come over time. But we are very comfortable with where the dividend level is today.

Great. Great. Well, you know, we're coming up on time, but I'm wondering if there's any kind of final take-home messages that you'd leave folks with on Rainier and the opportunity of the combined company?

Yeah, you know, again, I think we feel really good about the recent merger with Potlatch Deltic. We think that there are some pretty meaningful synergies opportunities there, you know, really optimistic about just the prospect of an improved cost of capital over time with the larger platform. I feel really good about where the balance sheet is at in terms of capital allocation flexibility. You know, like I said earlier, we have been buying back stock here of late and really try to capitalize on that disconnect that we see between private market values and where the stock is trading. So, yeah, still a lot of work to do around the merger integration, but we think we're off to a very good start here.

Great, great. Well, Mark, Wayne, thank you.

Thank you, Anthony.