The NCREIF Timberland index returned 10.48% in 2014 -- its highest return since 2007. Last year's return consisted of 7.46% price appreciation and 2.86% income return.
NCREIF said the average annual return for the index since 1986 is 12.59%. In the last five and 10 years, the index had annualized returns of 5.8% and 8.3%, respectively.
“Timberland returns remained strong in 2014, with annual appraisals contributing to a sizable bump in fourth-quarter returns. Increasing EBITDDA returns show that timberland managers are capitalizing on the renewed demand for wood in domestic markets,” said Ryan Reddish, chairman of the timberland committee and acquisitions analyst at Forest Investment Associates.