Rayonier Announces First Quarter 2025 Dividend

Rhea-AI Summary

Rayonier (NYSE:RYN) has announced its first quarter 2025 dividend of $0.2725 per common share, payable on March 31, 2025, to shareholders of record on March 17, 2025. This represents a 4.4% reduction from the previous $0.285 per share dividend. The adjustment reflects the impact of 7.6 million additional shares issued as part of the company's recent special dividend.

The total shares and units outstanding increased by 5.1% from 150.5 million to 158.2 million following the special dividend distribution. Despite the per-share dividend reduction, the aggregate quarterly dividend payment will increase by 0.5% to $43.1 million. The company's operating partnership, Rayonier L.P., will also distribute $0.2725 per unit to unitholders of record on March 17, 2025.

Positive

• Aggregate quarterly dividend payment increases by 0.5% to $43.1 million

Negative

• Quarterly dividend reduced by 4.4% from $0.285 to $0.2725 per share
• 5.1% share dilution due to special dividend issuance (7.7 million new shares)

Insights

Financial Analyst

The dividend adjustment announcement reveals sophisticated financial engineering that benefits both Rayonier and its shareholders. While the per-share dividend decreased by 4.4% to $0.2725, the total cash distributed to shareholders actually increased by 0.5% to $43.1 million due to the 5.1% expansion in the share count from the special dividend.

This technical adjustment maintains Rayonier's commitment to shareholder returns while demonstrating prudent capital management. The special dividend structure, which included stock issuance rather than pure cash payment, helps preserve the company's financial flexibility and cash reserves - particularly important for a REIT operating in the cyclical timber industry. The approach allows Rayonier to maintain its distribution obligations while potentially reducing future dividend coverage pressure.

For income-focused investors, while the per-share dividend decreased, the total value of their holdings remains largely unchanged due to the additional shares received. The new quarterly dividend rate annualizes to $1.09 per share, still providing an attractive yield relative to the timber REIT peer group. This balanced approach to capital return demonstrates management's commitment to sustainable shareholder distributions while maintaining financial stability.

WILDLIGHT, Fla.--(BUSINESS WIRE)-- Rayonier Inc. (NYSE:RYN) announced today that the Company’s board of directors has declared a first quarter cash dividend of $0.2725 per common share. The dividend is payable on March 31, 2025, to shareholders of record on March 17, 2025. The adjustment in the quarterly dividend to $0.2725 per share from $0.285 per share reflects the 7.6 million incremental shares issued to shareholders as part of the Company’s recent special dividend and is consistent with our previous communications regarding the anticipated impact of the special dividend on the Company’s ordinary quarterly dividend.

The Company also announced today that the Company’s board of directors, in its capacity as the board of directors of the general partner of Rayonier, L.P., has declared a first quarter cash distribution of $0.2725 per operating partnership unit. The cash distribution is payable on March 31, 2025, to holders of record on March 17, 2025. Similarly, this adjustment as compared to the previous quarterly distribution reflects the incremental units issued to unitholders as part of the special dividend.

 

($ in millions, except per share amounts)	Before Special Dividend (1)	Special Dividend Impact (2)	Adjusted for Special Dividend	% Change
Shares & Units Outstanding (MMs)
Shares Outstanding	148.5	7.6	156.1	+5.1%
Units Outstanding	2.0	0.1	2.1	+5.1%
Total Shares & Units Outstanding	150.5	7.7	158.2	+5.1%
Quarterly Dividend per Share/Unit	$0.2850	–	$0.2725	-4.4%
Aggregate Quarterly Dividend	$42.9	–	$43.1	+0.5%

Notes:
(1)		Reflects shares and units outstanding as of 12/31/2024.
(2)		Reflects additional shares and units issued as part of the $1.80 per share special dividend paid on 1/30/2025.

About Rayonier
Rayonier is a leading timberland real estate investment trust with assets located in some of the most productive softwood timber growing regions in the United States and New Zealand. As of December 31, 2024, Rayonier owned or leased under long-term agreements approximately 2.5 million acres of timberlands located in the U.S. South (1.75 million acres), U.S. Pacific Northwest (308,000 acres) and New Zealand (412,000 acres). More information is available at www.rayonier.com.

Source: Rayonier Inc.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250205679604/en/

Investors/Media: Collin Mings, investorrelations@rayonier.com, 904-357-9100

Source: Rayonier Inc.

FAQ

What is Rayonier's (RYN) new quarterly dividend for Q1 2025?

Rayonier's quarterly dividend for Q1 2025 is $0.2725 per common share, payable on March 31, 2025, to shareholders of record on March 17, 2025.

Why did Rayonier (RYN) reduce its quarterly dividend in Q1 2025?

Rayonier reduced its quarterly dividend from $0.285 to $0.2725 due to the issuance of 7.6 million additional shares as part of the company's recent special dividend distribution.

How many new shares did Rayonier (RYN) issue in its special dividend?

Rayonier issued 7.7 million new shares and units as part of its $1.80 per share special dividend paid on January 30, 2025.

What is the total number of Rayonier (RYN) shares outstanding after the special dividend?

After the special dividend, Rayonier's total shares and units outstanding increased to 158.2 million, up from 150.5 million.

How much will Rayonier's (RYN) total quarterly dividend payment be after the adjustment?

Rayonier's aggregate quarterly dividend payment will be $43.1 million, representing a 0.5% increase from the previous amount.