Rayonier Weighed on Palm Valley Fund Despite Stronger Operations
The fund said Rayonier’s operating results beat expectations, even as weaker lumber prices and rising rates pressured the stock.
Key takeaways
- Rayonier was one of the Palm Valley Capital Fund’s three largest negative contributors in the third quarter.
- The fund said results exceeded expectations in three of Rayonier’s segments.
- Palm Valley said it added to its Rayonier position during the quarter.
Rayonier was one of the three largest negative contributors to Palm Valley Capital Fund’s third-quarter performance, the fund said. Still, the investment manager said the timberland company’s operating results exceeded its expectations.
The fund highlighted stronger results in Rayonier’s Northwest Timber, Wood Products and Real Estate segments. It also said the company generated strong cash flow, which supported its 5.6% dividend yield and share repurchases during the quarter.
Palm Valley said weaker lumber prices in August and September likely weighed on the shares, while rising interest rates hurt sentiment toward housing-related stocks. The fund said it added to its position, citing what it viewed as a discount to its estimate of the value of Rayonier’s timberland.
This article was produced with the help of AI technology. Source: Yahoo Finance
