Forecasting Timber Markets:US South

Brooks Mendellbmendell@forisk.com770.725.8447

Forisk Q1 Housing Forecasts, 2013-17

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Forisk Q1 Housing Starts Base Case Forecast

Forisk: 2017, January Forisk: 2016, January Forisk: 2015, January

Forisk: 2014, February Forisk: 2013, February US Housing Starts: Actuals

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Pine Grade Capacity Additions

3Data source: Forisk Mill Database

While the pulp and paper sector transforms, forecasted growth varies regionally with exposure to end markets.

4Source: Q4 2017 Forisk Research Quarterly

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Household/Sanitary

Market Pulp Newsprint Packaging Printing/Writing

Other PaperProducts

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North South West

Pine grade inventories continue to accumulate, even with a housing recovery; this affects expected price changes.

5Data: SOFAC, Forisk ConsultingFigure/analysis: Q4 2017 Forisk Research Quarterly

Projected Pine Grade

Inventories by State

Investors often compare timberlands to timber REITs and to bonds.

6Source: Forisk Timber REIT (FTR) Weekly Summary, 1/19/18