Direct Answer
110 SEC filers are classified under the Standard Industrial Classification code that describes the timber reits industry, and their latest annual reports show $180.6 billion of combined revenue and a median operating margin of 20.0%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Timber REITs own forests that grow trees and sell logs and lumber and sometimes sell land for development. Results follow timber prices, harvest levels and land values, and the trees themselves grow in value as they mature. The first numbers to compare across companies here are harvest volume and log price, timberland acres and lumber and wood products margin.
Key Industry Metrics
- Harvest volume and log price: The amount of timber cut and the price received. Together they drive revenue, and harvests are flexed to avoid selling when prices are weak.
- Timberland acres: The land area owned or managed. Acreage sets harvest capacity and the base of value, which also grows as trees mature.
- Lumber and wood products margin: The profit earned on manufacturing and selling wood products. It moves with lumber prices and log costs, and is more volatile than timber sales alone.
- Real estate sales: Land sold for development or other uses. These sales can be lumpy and often at higher value than timber use, supporting earnings in some years.
- Funds from operations: Net income with depreciation and depletion added back and sale gains removed. It shows cash earnings available for dividends, with large swings from price cycles.
Primary Macro Drivers
- Housing and lumber demand: Building uses lumber, so housing activity lifts demand for logs and wood products, which shows in log price and harvest volume.
- Export log markets: Overseas buyers take logs when prices and shipping make sense, which shows in log price and export volume.
- Interest rates: Rates affect financing cost and what buyers pay for land, which shows in real estate sales and funds from operations.
- Land values: Buyers of timberland for development pay prices that follow housing and rates, so shifts lift or cut real estate sales, shown in sales and value per acre.
Major Risks
- Wildfire and pests: Fire, insects and disease destroy trees and reduce future harvest, so read loss disclosures and the insurance coverage.
- Housing downturns: Weak building cuts demand and prices for logs, which shows in harvest volume and log price.
- Price volatility: Log and lumber prices move with markets, which shows in log price and wood products margin.
- Regulatory limits on harvest: Rules can limit when and where trees may be cut, which shows in harvest volume and regulatory notes.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Cyclical |
| Capital Intensity | High |
| Regulatory Intensity | Medium |
| Industry Maturity | Mature |
| Geographic Importance | U.S. / Global |
Timber REITs Filers in the SEC Record
110 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification code 6798. Their latest fiscal years end between 2022 and 2026, and together they reported $180.6 billion of revenue. Median revenue growth over the prior year was 2.9%. Median operating margin was 20.0% and median net margin 10.0%. Median total liabilities were 54% of total assets, and 77 of 110 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Welltower Inc. | $10.8 billion | 35.6% | n/a | 8.6% | FY 2025 |
| American Tower Corp | $10.6 billion | 5.1% | 45.5% | 24.7% | FY 2025 |
| Equinix Inc | $9.2 billion | 5.4% | 20.0% | 14.6% | FY 2025 |
| Prologis, Inc. | $8.8 billion | 7.2% | 49.6% | 37.9% | FY 2025 |
| Weyerhaeuser Co | $6.9 billion | -3.1% | 10.6% | 4.7% | FY 2025 |
| Iron Mountain Inc | $6.9 billion | 12.2% | 16.9% | 2.2% | FY 2025 |
| Simon Property Group Inc. | $6.4 billion | 6.7% | 49.9% | 84.3% | FY 2025 |
| Host Hotels & Resorts, Inc. | $6.1 billion | 7.6% | 14.0% | 12.5% | FY 2025 |
The 8 largest of 110 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Timber REITs guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Put it to work
Frequently Asked Questions
What are the main KPIs for the Timber REITs industry?
Key performance indicators for the Timber REITs industry include: Harvest volume and log price, Timberland acres, Lumber and wood products margin, Real estate sales, Funds from operations. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Timber REITs industry?
The Timber REITs industry is cyclical, meaning its revenues and earnings tend to expand during economic expansions and contract during downturns. Investors should monitor leading economic indicators and interest rate trends when evaluating timing.
What are the biggest risks in the Timber REITs industry?
The primary risks for Timber REITs companies include: Wildfire and pests, Housing downturns, Price volatility, Regulatory limits on harvest. Investors should assess each company's exposure to these factors and its track record of navigating them.