The NCREIF Timberland index returned 0.51% in the second quarter, its lowest quarterly return since the first quarter of 2012. It was also the lowest second-quarter return since 2002.
The quarterly return was 57 basis points lower than the median second quarter return since the index's inception in 1987.
According to NCREIF, the appreciation return was -0.05% in the quarter.
Ryan Reddish, chair of the timberland committee and acquisitions analyst for Forest Investment Associates, commented in a news release that, “timberland returns were relatively flat this quarter. Seasonal downward movement in product prices led to reduced harvest activity, especially in the South and Northwest markets.”
The index consists of 451 investment‐grade timber properties with a market value of $24.3 billion. This includes 319 properties in the South, 83 in the Northwest, 28 in the Northeast, and 16 in the Lake States.