Timberland Is Poised for Resurgence

When the U.S. housing market crashed in 2007, demand for lumber plunged along with it. With fewer houses being built, fewer building materials were needed, and investors in U.S. timberlands — who had up until the financial crisis been seeing near-double-digit gains on their timber holdings — felt the blow of lower returns. “We saw that asset suffer quite considerably,” says Neil Woods, portfolio manager at the New Zealand Superannuation Fund, a NZ$36 billion ($25 billion) pension with roughly NZ$2 billion in global timberland investments. “That caught us by surprise.”

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Source: Institutional Investor

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