BEGIN YOUR DISCOVERY
Why Invest in PotlatchDeltic
PotlatchDeltic’s high-quality, well-managed portfolio of assets is ideally positioned to take advantage of favorable industry fundamentals. We have the HIGHEST DIRECT LEVERAGE to lumber prices of the timber REITs along with the STABILITY of timberlands, which support a sustainable and growing dividend.
High Quality Timberlands
Top 10 Lumber Producer in the U.S.
Stratifying Land to Deliver Value
PotlatchDeltic is a $4 Billion Timber Real Estate Investment Trust (REIT) Focused on:
HARVESTING TREES SUSTAINABLY
BEING PART OF THE SOLUTION TO CLIMATE CHANGE
MANUFACTURING LUMBER & PLYWOOD
SELLING DEVELOPED & RURAL LAND
Million Acres of Timberland
Manufacturing Facilities that Produce Lumber and Plywood
We Operate Three Business Segments
We are the Best Timber REIT Play on Housing Because Our Integrated Strategy Provides Highest Direct Leverage to Lumber Prices
Highest Direct Leverage to Lumber Prices
1 | Source: Public filings 2016-2021.
Our Footprint Maximizes the Benefit of Structurally Higher Lumber Prices on a Regional Basis
1 | 5-year average EBITDDA exposure of Timberlands and Wood Products segment.
2 | The sawlog prices are indexed to the price of lumber along with additional 30% of volume sold externally.
3 | Based on 2021 results.
4 | As of the end of 2020 after completing the last large Minnesota timberland sale.
Demand for Lumber Used in Nonresidential Construction is
Also Poised for Growth as Environmentally Beneficial Tall Wood Buildings Take Market Share from Steel and Concrete
Benefits of Mass Timber in Tall Buildings
1 | Source: The economic emissions benefits of engineered wood products in a low‐carbon future, MIT Joint Program on the Science and Policy of Global Change, June 2018.
2 | Source: Chadwick Dearing Oliver, Nedal T. Nassar, Bruce R. Lippke, James B. McCarter (2014) Carbon, Fossil Fuel, And Biodiversity Mitigation with Wood and Forests, Journal of Sustainable Forestry.
We are Focused on Growing Shareholder Value Over the Long Term Through a Balanced Capital Allocation Strategy
1 | EBITDDA leverage is a non-GAAP measure and target is through a cycle; see appendix for definition
2 | Includes a $4 per share, or $276 million, special dividend.
Returning Cash to Shareholders Through a Sustainable, Growing Dividend and Opportunistic Share Repurchases is a Key Part of our Value Proposition
Sustainable and Growing Dividends
Opportunistic Share Repurchases
1 | Annual run rate. 2 | Based on closing stock price of $53.79 on February 1, 2022. 3 | We issued 22 million shares at $52 per share in 2018 to consummate the Deltic Timber merger. 4 | Includes $276 million special dividend.
We are Growing Our Business in a Disciplined Way Over Time
Key Mergers & Acquisitions
1 | 2022 Forecast based on current management expectations. Includes $15M for the Ola, Arkansas sawmill rebuild. The Ola Sawmill rebuild funding is mostly covered by insurance.
Maintaining a Strong Balance Sheet and Ample Liquidity Provides the Flexibility to be Opportunistic
No Significant Near-Term Debt Maturities
1 | Based on closing stock price of $53.79 on February 1, 2022.
2 | Adjusted EBITDDA leverage and net debt to enterprise value are non-GAAP measures. See appendix for definitions.
3 | Weighted average cost of debt excludes amortization of deferred issuance costs and credit facility fees and includes annual estimated patronage credit on term loan debt.
4 | As of December 31, 2021.
We are Committed to Environmental and Social Responsibility and to Responsible Governance
1 | Data from 2020 ESG Report. Percentage women Directors as of January 1, 2022. Seedlings planted and women in salaried roles are for 2021.
Superior Financial, ESG and Capital Allocation Performance Benefits all PotlatchDeltic Stakeholders, Now and Long into the Future
Total Shareholder Return
1 | Peer Group: RYN, JOE, UFPI, WY.
2 | The total shareholder return assumes $100 invested on December 31, 2015, with quarterly reinvestment of all dividends.
Forward-Looking Statements & Non-GAAP Measures
This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as amended, including without limitation, statements about the company’s business model, effect of change in lumber prices on annual EBITDDA, expected continuation of favorable industry fundamentals, estimated future harvest volumes, timberland productivity, percent of Idaho sawlogs indexed to the price of lumber, amount of carbon removed and sequestered and greenhouse gas emitted each year, climate change risks and opportunities, maintenance of third-party environmental and safety certifications, percentage of merchantable timber inventory that is comprised of sawlogs, percent of sawlogs used internally, manufacturing capacity and expansions, effect of change in log prices on company cash generation, U.S. South sawlog growth versus drain projections, lumber volume growth trends, forecasted lumber shipments and prices, North American lumber demand and production, anticipated efficiency gains and reduced costs upon completion of the Ola sawmill rebuild, and expected dates for restarting the mill and reaching full operation, projected U.S. demand for mass timber and benefits and carbon impact resulting from mass timber use, expectations regarding the US/Canadian softwood lumber import duties, anticipated European lumber imports, forecasted real estate sales, real estate business potential and land development potential, including for solar energy opportunities, capital allocation, growing dividend and dividend yield, share repurchases, future capital expenditures and anticipated return on capital expenditures, debt metrics and anticipated interest rates, investment grade credit rating, future company performance, the U.S. housing market, including housing starts, housing resales and affordability, repair and remodel activity, and similar matters. These forward-looking statements are based on current expectations, estimates, assumptions and projections that are subject to change, and actual results may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, changes in: timberland values, timber harvest levels on the company’s lands, timber prices, policy regarding governmental timber sales, the United States and international economies, U.S. job growth, U.S. bank lending practices, the level of domestic construction activity, international tariffs, quotas, and trade agreements involving wood products, domestic and international demand for wood products, production and production capacity in the forest products industry, competitive pricing pressures for the company’s products, general and industry specific environmental laws and regulations, fuel and energy costs, raw material and other costs, and tax laws that could reduce the benefits associated with REIT status. Results may also differ materially because of unanticipated manufacturing interruptions, unforeseen environmental liabilities or expenditures, climate change and weather conditions, an inability to satisfy complex rules in order to remain qualified as a REIT, other events beyond our control, such as the impact of disease epidemics and pandemics, such as the outbreak of Covid-19 and its variants, governmental responses to such outbreaks, and anticipated recovery from the pandemic on our business, suppliers, customers and employees, and other risks and uncertainties described from time to time in the company’s public filings with the Securities and Exchange Commission. All forward-looking statements are made as of the date of this presentation, and the company does not undertake to update any forward-looking statements.
This presentation presents non-U.S. GAAP financial information. A reconciliation of those numbers to U.S. GAAP is included in this presentation which is available on the company’s website at www.PotlatchDeltic.com.