Timber REITs: Renewable Profits?

October 29, 2019 | Hoya Capital

Timber REITs: Renewable Profits? Uncategorized Oct 29 Written By To read the full report, click here to visit Seeking Alpha! Timber REITs have seen signs of rejuvenation in 2019, powered by the recovery in the single-family housing markets, which has sprung back to life over the last six months. The roller-coaster ride for lumber prices continued into the second half of this year. After hitting record highs in May 2018, prices plunged 50% through May 2019.

Since bottoming in 2019, however, lumber prices have recovered more than 25% as the monthly rate of housing starts and new home sales hit 12-year highs this summer. Long-term fundamentals look strong for the Timber REIT and broader housing sectors, powered by demographic trends that suggest a revival of the suburbs and single-family housing in the 2020s. Oversupply remains an issue in both the Southeast and Pacific Northwest. The use of biomass as a fuel source remains a wildcard.

We see superior long-term value in the vertically integrated REITs. To read the full report, click here to visit Seeking Alpha! Comments (0) Newest First Oldest First Newest First Most Liked Least Liked Add Comment --> Preview Edit --> Post Comment… Previous Previous Daily Recap: Stocks Pause | REITs Gain | Millennials Buying Homes Next Next Daily Recap: Record Day | Rates Climb | Merger Monday