Weyerhaeuser Company recently announced updates on recent actions to enhance portfolio quality and value through a series of strategic and capital-efficient timberland transactions. In the third quarter, the company completed two high-quality acquisitions totaling $459 million, including its previously announced transaction for timberlands in North Carolina and Virginia.
Additionally, in the third quarter Weyerhaeuser advanced three divestiture packages of non-core timberlands — two of which were closed or under contract in early October, totaling $410 million of expected cash proceeds by year end. The company anticipates the third divestiture to close in early 2026, with total proceeds from all divestitures expected to exceed the cash outlay required for its recently completed acquisitions.
"These transactions represent strategic opportunities to recycle capital in a tax-efficient manner to further optimize and improve our timberlands portfolio," says Devin W. Stockfish, president and chief executive officer.
"As we've demonstrated over the last several years, we are committed to active portfolio management across our timber holdings and have remained disciplined and nimble in our approach to growing the quality and value of our timberlands. Through this process, we've achieved the multi-year growth target we announced in September 2021 — and by early 2026, we will have offset a significant portion of our acquisitions with divestitures of non-core acreage.
Over a similar period, we've also returned a substantial amount of cash back to shareholders through dividends and share repurchase and announced a compelling engineered wood products growth opportunity — all while maintaining a strong balance sheet. Looking forward, we will continue to evaluate capital-efficient opportunities that enhance the return profile of our timberlands, while also balancing other levers across our capital allocation framework to drive superior long-term value for our shareholders."
Summary of Acquisitions
Unique, off-market transactions featuring high-quality and strategically located acreage with portfolio-leading timber and financial attributes in their respective regions.
Acquired at a combined timber-only Adjusted EBITDA multiple of 21x1.
- North Carolina & Virginia: In August, the company completed its previously announced acquisition of 117,000 acres of timberlands for $364 million, inclusive of closing adjustments.
- Washington: In August, the company completed a targeted, off-market acquisition covering approximately 10,000 acres of exceptional timberlands from a private entity for $95 million. Comprised of mature, low-elevation and highly operable timberlands, the acreage is immediately adjacent to existing Weyerhaeuser timber holdings and offers excellent market access to a diverse set of domestic and export customers, including Weyerhaeuser's Longview mill and export yards in the region. The acquisition is expected to deliver immediate and sustained portfolio-leading cash flows within the company's Western Timberlands business, with an average annual timber-only free cash flow yield of 6.1 percent over the first 10 years.
Summary of Divestitures
Non-core acreage with limited portfolio integration benefits.
Divestitures in Oregon, Georgia and Alabama are expected to be divested at a combined timber-only Adjusted EBITDA multiple of 45x1.
- Oregon: In October, the company completed the divestiture of 28,000 acres of timberlands in coastal Oregon for $190 million.
- Georgia & Alabama: In October, the company entered into an agreement to sell approximately 86,000 acres for $220 million. The transaction is expected to close in December and is subject to customary closing conditions.
- Virginia: The company is in the process of divesting approximately 108,000 acres and expects to close the transaction in early 2026.
The company anticipates minimal tax liability in conjunction with these transactions.
