Verdura Properties specializes in assisting institutions, private equity firms, timber companies, real estate investment trusts (REITs), and high net worth individuals acquire or divest investment grade timberland tracts. Working throughout the southeast, we collaborate with a network of land owners, foresters, and real estate professionals to identify and evaluate properties that meet the strategic needs of our clients.
Aside from the inherent recreational value, there are compelling financial reasons that make timberland tracts a sound investment.
When compared with treasury bills, U.S. bonds, U.S. small and large cap stocks, foreign large cap stocks, and commercial real estate, timberland returns in the southern U.S. have produced higher cumulative annualized returns over the past 30 years. One of the unique characteristics of this investment is the biological growth of timber – even during downturns in the timber market, trees still grow and become more valuable.
Timberland provides an excellent means of diversification, appreciation and achieving a hedge against inflation. It has a low correlation to other major asset classes such as stocks and bonds and a negative correlation to real estate.
Timber growing on Investors as managers look at new markets. A new group of institutional investors is committing capital to timber, aiming to benefit from attractive investments in new markets overseas. (Continue Reading...)