Rayonier Closes Real Estate Deals Worth $54 Million
Oct. 3, 2006 (Press Release) - Rayonier said today that it has closed three significant real estate transactions worth approximately $54 million comprising 6,600 acres in North Florida. Two of the transactions involved development properties, including one in which Rayonier will participate with the developer over the next 10 years. The third transaction was a sale of conservation and recreation property to a county government.
These transactions represent an after-tax gain of $31 million, or 39 cents per share, with 27 cents to be recorded in the third quarter and 12 cents in the fourth.
The company noted that these transactions are consistent with the earnings guidance given in its second quarter earnings announcement.
The largest transaction — $28.3 million for 1,950 acres near Jacksonville — was with ICI Homes, a prominent Southeast U.S. home builder, and reflects Rayonier's strategy to increase per acre values by partnering with prestigious developers and participating in downstream revenues. In addition to the $22.6 million received at closing, Rayonier will receive and record $5.7 million within a 10-year period from revenue earned by ICI from the sale of homes on the property.