Rayonier's Special Dividend Election: A Windfall for Shareholders

Rayonier Inc. (NYSE:RYN) has announced the results of its special dividend election, offering shareholders a choice between receiving the dividend in cash or common shares. The dividend, totaling $1.80 per common share, is payable on January 30, 2025, to shareholders of record on December 12, 2024. The cash component of the dividend will not exceed 25% in the aggregate, with the balance payable in the Company's common shares. Shareholders who elected to receive the dividend in cash will receive a cash payment of at least $0.45 per common share, while those who elected to receive the dividend in shares will receive the full dividend in shares.



The special dividend is being made in connection with the taxable gains arising from the $495 million of timberland dispositions the Company completed during the fourth quarter as part of its previously announced asset disposition and capital structure realignment plan. Mark McHugh, President and Chief Executive Officer, stated that the substantial progress made on the disposition plan allows the Company to return cash to shareholders while also providing considerable capital allocation capacity to act opportunistically to enhance long-term shareholder value going forward. By using both cash and shares to comply with its REIT taxable income distribution requirements, the Company will retain significant flexibility to further reduce leverage, execute on share repurchases, or fund other future capital allocation priorities.



Shareholders who made no election will receive the dividend 25% in cash and 75% in common shares. The number of common shares issued as a result of the dividend will be calculated based on the volume weighted average trading prices of the Company's common shares on the New York Stock Exchange on January 17, January 21, and January 22, 2025. An information letter and election form will be mailed to shareholders of record after the record date. The properly completed election form to receive cash or common shares must be received by Computershare Trust Company, N.A., the Company's transfer agent, prior to 5:00 p.m. Eastern Time on January 16, 2025. Registered shareholders with questions regarding the dividend election may call Computershare Trust Company, N.A. at (800) 659-0158, or (201) 680-6578 for international callers. Shareholders who hold their shares through a bank, broker or nominee and have questions regarding the dividend election should contact such bank, broker or nominee, who will also be responsible for distributing to them the letter and election form and submitting the election form on their behalf.

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 one-time, special distribution to holders of operating partnership units of (i) an aggregate number of operating partnership units that would result in the Company receiving a number of operating partnership units corresponding to the aggregate number of the Company’s common shares issued to shareholders in the special dividend and (ii) an aggregate amount of cash equal to an amount that would result in the Company receiving the aggregate amount of cash payable to shareholders in the special dividend.

In conclusion, Rayonier's special dividend election offers shareholders a unique opportunity to choose between receiving the dividend in cash or common shares, providing flexibility and aligning with the Company's previously announced asset disposition and capital structure realignment plan. By offering this election, Rayonier demonstrates its commitment to returning capital to shareholders while maintaining flexibility in its capital allocation strategy.