NCREIF Timberland Property Index Released
CHICAGO, IL, January 25, 2023 – The National Council of Real Estate Investment Fiduciaries (NCREIF) has released fourth quarter 2022 results of the NCREIF Timberland Index. The index returned 4.89% for the quarter, up from 2.38% last quarter and up from 4.56% in the fourth quarter of 2022. The EBITDDA return, at 0.71%, was relatively flat from the third quarter of 2022, while the appreciation return in the fourth quarter increased 252 basis points quarter-over-quarter, up to 4.18%.
The Total Timberland Index had a 12.90% rolling one-year return, comprised of a 3.11% EBITDDA and 9.58% appreciation return.
Timberland Quarterly Total Return Trends by Region
Returns for the quarter were positive across all regions. The Lake States region had the highest return of the fourth quarter at 9.35%, comprised of 0.87% EBITDDA and 8.48% appreciation returns. The South region returned 6.01% for the quarter, driven by an appreciation return of 5.29%. The Northwest and Northeast regions returned, respectively, 2.20% and 1.09% for the quarter, driven by positive appreciation returns of 1.51% and 0.49%.
Timberland Market Value per Acre in USD by Region
Timberland market value per acre was $1,970 for the fourth quarter, up 4.41% from its previous quarter mark. All regions experienced per acre market value increases. The Northwest, South, Northeast and Lake States regions ended the quarter with market values per acre of $2,971, $2,009, $1,557, and $673 respectively, representing increases of 1.48%, 4.62%, 2.71%, and 7.34% from the third quarter values.
The NCREIF Timberland Index consists of 464 investment-grade timber properties with a market value of $24.5 billion. This includes 322 properties in the South, 84 in the Northwest, 39 in the Northeast, and 17 in the Lake States. This data enhances the ability of institutional investors to evaluate the risk and performance of timberland investments across the United States.