FORESTLANDS NZ LTD
P.O.Box 372,
Motueka, Nelson
New Zealand 7143
Tel: 00 64 (0)3 528 8818
Fax: 00 64 (0)3 528 8851
Freephone :0800 881 881
info@forestlands.co.nz
www.forestlands.co.nz
What will I get...
Returns on each Forestlands share will vary due to the different factors influencing the forestry industry. The key variables are:
How well we can buy the forest – purchase price per hectare for trees and land Volume of logs produced per hectare at harvest (around 25-30 years old) Nett log prices achieved after all costs deducted e.g. logging and transport costs. Here’s an example for a mid-rotation forest (approximately 15 years old)....
Based on a registered Forestry Consultant’s report relating to our most recent forest purchased, and if we were able to harvest that forest today, in today’s dollars, the log return per share would equate to $3,465 for every $1,000 invested. When you throw in your share of the land value (at purchase price only), the return grows to well over $4,000... and who knows what value the land and trees could increase to by harvest time!
If you purchase shares in a mid-rotation forest (e.g. 15 years old), the investment period would only be 10 to 15 years...this equates to an approximate return of up to $400 per year on your $1,000 investment. In a nut shell, where else do you think you could find that sort of value today?
On top of the return from harvested logs and land sale is of course the potential income from the accrual and sale of carbon credits – an exciting but unknown quantity at the moment.
Where it gets interesting is when the nett price per tonne increases over time - which we think is a logical assumption given the effect of inflation on nearly everything we buy these days.
Imagine if nett log prices double over the next 15 years... considering they have already been there before.
The graph below shows some projected harvest returns at nett log prices ranging from $30 to $70 per tonne.
Please note:
Forestlands projections for earlier offers have been based on newly planted forests (a full 30 year rotation) and therefore differ from the mid-rotation example figures above.Forestlands firmly believes that NZ forests are considerably undervalued in the current market and the figures in the mid-rotation example above reflect this. This is why we are aiming to purchase as many existing, established forests as possible. This is the time to buy!
New Zealand Forestry Investments
