Seeing The Profit From The Trees
Published: Tuesday, 16 Nov 2010 | 2:32 AM ET
By: Mark McLaughlin,|Special to CNBC.com
And in today’s ultra-low, interest-rate environment, timber REIT yields above 4 percent could look appealing to income investors.
“People buying in the next few months will be buying at more realistic values,’’ adds Lutz, noting that timberland is currently valued at two thirds its long-term average.
Timber prices have fallen back to earth, but they outperformed the S&P 500 in a ten-year period, ending in 2007. The easiest way to participate in the growth of trees, sale of wood products and the appreciation of forest land is through a timber real estate investment trust.