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.
Timberland as a Long-term Financial Asset. The 19th Century American humorist and writer Mark Twain once pronounced that buying land was a good investment because they’re not making any more of it. (Continue Reading...)