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| 8-K - CATCHMARK INVESTOR PRESENTATION MARCH 2017 - CatchMark Timber Trust, Inc. | a8-kcatchmarkinvestorprese.htm |
1
CatchMark Timber Trust
N Y S E : C T T
M a y 2 0 1 6
C A T C H M A R K (NYSE: CTT)
F O U R T H Q U A R T E R 2 0 1 6
F O R WA R D - L O O K I N G S TAT E M E N T S
COMPANY UPDATE | FOURTH QUARTER 2016 2
This presentation contains certain forward-looking statements within the meaning of the safe harbor from civil liability provided for such
statements by the Private Securities Litigation Reform Act of 1995 (as set forth in Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended) that are subject to risks and uncertainties. Such forward-looking
statements can generally be identified by use of forward-looking terminology such as "may," "will," "expect," "intend," "anticipate,"
"estimate," "believe," "continue," or other similar words. These forward-looking statements are based on certain assumptions, discuss future
expectations, describe future plans and strategies, contain financial and operating projections or state other forward-looking information.
The Company's ability to predict results or the actual effect of future events, actions, plans or strategies is inherently uncertain. Although the
Company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, the
Company's actual results and performance could differ materially from those set forth in, or implied by, the forward-looking statements. You
should be aware that there are various factors that could cause actual results to differ materially from any forward-looking statements made
in this presentation. Factors that could cause or contribute to such differences include, but are not limited to, (i) we may not generate the
harvest volumes or the harvest mix from our timberlands that we currently anticipate; (ii) the demand for our timber may not increase at the
rate we currently anticipate or at all due to changes in general economic and business conditions in the geographic regions where our
timberlands are located; (iii) the cyclical nature of the real estate market generally, including fluctuations in demand and valuations, may
adversely impact our ability to generate income and cash flow from sales of higher-and-better use properties; (iv) housing starts and timber
prices may not increase at the rate we currently anticipate or could decline, which would negatively impact our revenues; (v) the supply of
timberlands available for acquisition that meet our investment criteria may be less than we currently anticipate; (vi) we may be unsuccessful
in winning bids for timberland that are sold through an auction process; (vii) we may not be able to access external sources of capital at
attractive rates or at all; (viii) potential increases in interest rates could have a negative impact on our business; (ix) our share repurchase
program may not be successful in improving shareholder value over the long-term; (x) our cash dividends are not guaranteed and may
fluctuate; and (xi) the factors described in Item 1A. of our Annual Report on Form 10-K for the fiscal year ended December 31, 2016, under
the heading “Risk Factors” and our other filings with Securities and Exchange Commission. You are cautioned not to place undue reliance
on any of these forward-looking statements, which reflect the Company's views only as of this date. Furthermore, except as required by law,
the Company is under no duty to, and does not intend to, update any of our forward-looking statements after this date, whether as a result of
new information, future events or otherwise.
3
CatchMark Overview
CatchMark is a public company that strives to deliver
superior risk-adjusted returns for all stakeholders
through disciplined acquisitions, sustainable harvests,
and well-timed sales.
COMPANY UPDATE | FOURTH QUARTER 2016 4
A B O U T C AT C H M A R K
Key Facts
• Publicly-traded REIT (NYSE:CTT)
• 499,600 acres of commercial timberlands
– 467,500 fee acres
– 32,100 leased acres
• Approximately 20.3 million tons of merchantable
timber
• Well-diversified species and product mix
– 74% pine / 26% hardwood by acreage
– 51% pulpwood / 49% sawtimber by volume
• Sustainable Forestry Initiative-certified
5
Counties with Ownership and Leasehold Interests (As of 12/31/2016)
All data as of 12/31/2016
COMPANY UPDATE | FOURTH QUARTER 2016
Total Lease Fee
Alabama 82,300 5,600 76,700
Florida 2,000 -- 2,000
Georgia 280,100 26,500 253,600
Louisiana 21,300 -- 21,300
North Carolina 1,600 -- 1,600
South Carolina 76,400 -- 76,400
Tennessee 300 -- 300
Texas 35,600 -- 35,600
TOTAL 499,600 32,100 467,500
E X P E R I E N C E D M A N A G E M E N T T E A M
6
CatchMark’s seasoned leadership provides significant industry experience and capability to help
realize company objectives and growth plan.
Jerry Barag, President and CEO (31 years of industry experience)
• Managing Director and Founder TimberStar Advisors and TimberStar
• Chief Investment Officer at Lend Lease Real Estate Investments
• Executive Vice President, Equitable Real Estate
Brian Davis, Chief Financial Officer (26 years)
• Senior Vice President and Chief Financial Officer of Wells Timberland
• Various executive finance roles with SunTrust Bank and CoBank, delivering
capital market solutions – advisory, capital raising, and financial risk
management to public and private companies.
John Rasor, Chief Operating Officer (46 years)
• Managing Director and Founder TimberStar Advisors and TimberStar
• Executive Vice President of Georgia Pacific, responsible for timber and
timberlands, building product businesses, and wood and fiber procurement for
wood products, pulp and paper
CEO Barag and COO
Rasor have worked
together since 2004,
completing $1.4 billion in
timberland acquisitions
and $1.9 billion
dispositions prior to
joining CatchMark. These
transactions generated
investor returns of 2.0x
equity and 1.4x total
capital in the first and only
timberland securitization
(TimberStar).
COMPANY UPDATE | FOURTH QUARTER 2016
CATCHMARK ’ S I NVESTMENT DR I VERS
• Deliver recurring dividends from sustainable harvests
on prime timberlands and opportunistic land sales,
taking advantage of the current housing recovery
• Acquire highly-productive and well-located
timberlands in high demand fiber basket markets
through disciplined capital allocations
• Grow stable and predictable cash flows and enhance
NAV through active forest management and
concerted environmental stewardship
COMPANY UPDATE | FOURTH QUARTER 2016 7
CatchMark drives superior risk-adjusted performance through a focus on higher quality assets in
select mill markets and seeks to:
INVESTMENT DRIVERS
1. Prime Timberland Assets
2. High Demand Markets
3. Active Forest Management
4. Environmental Stewardship
Q U A L I T Y E A R N I N G S F R O M L O W E R - R I S K O P E R AT I O N S M O D E L
COMPANY UPDATE | FOURTH QUARTER 2016 8
CatchMark’s business model focuses on harvest operations of owned and leased timberlands to
secure durable earnings and does not include more volatile land development and manufacturing.
Timber
Operations
Land Sales
(<2% of fee acres)
Land Sales
(>2% of fee acres)
Commercial/
Residential Land
Development Manufacturing
CTT 70%1 30%1, 2 --- --- ---
WY
PCH
RYN
Risk Lower Higher
1. Based on % of Adjusted EBITDA. Adjusted EBITDA is a non-GAAP measure. See Appendix for our reconciliation from net income (losses) to Adjusted EBITDA.
2. Average for 2014 – 2016. See Appendix for reconciliation.
K E Y T E N E T S O F O P E R AT I O N A L S T R AT E G Y
Allows greater control of supply chain
process and deeper relationships with
customer base.
COMPANY UPDATE | FOURTH QUARTER 2016 9
CatchMark strategically manages harvest plans, operating in prime mill markets for sawtimber
and pulpwood, to serve customers and optimize yields within sustainable parameters.
Provides stable demand with well
capitalized counter-parties.
Improves cash flow per acre.
DELIVERED WOOD SALES FIBER SUPPLY AGREEMENTS BALANCED HARVEST MIX
64% of 2016 total
timber sales volume
27% of 2016 total
annual harvest volume
50/50 sawlog/pulpwood
volume mix target1
1. See page 15 for CTT historical and projected harvest mix.
S U S TA I N A B L E H A R V E S T P R O D U C T I O N D R I V E S C A S H F L O W A N D VA L U E
10 COMPANY UPDATE | FOURTH QUARTER 2016
1. 4Q 2016 TimberMart-South: Southwide averages. This pricing does not necessarily reflect the pricing realized by CatchMark.
2. Management estimates based on U.S. South stumpage prices published by TimberMart-South from 1981-2016.
3. Leasing/Ancillary Revenue estimated to be approximately $10 per acre on average.
4. Forest Management/Taxes estimated to be approximately $16 per acre on average.
Harvest Assumptions
% Pine (tons) 87.5%
% Hardwood (tons) 12.5%
Sustainable harvest production growth can yield significantly increased cash flow, particularly
when factoring in a price recovery.
Illustrative per Acre Example:
3.50 Tons per Acre 5.00 Tons per Acre
Pricing Pricing Product Tons / Revenue Revenue Tons / Revenue Revenue
Product Category 12/31/20161 (Trendline)2 Mix Acre (Current) (Trendline) Acre (Current) (Trendline)
Pine Pulpwood $9.60 $10.00 50.0% 1.52 $14.70 $15.31 2.19 $21.03 $21.90
Pine CNS $16.92 $21.00 25.0% 0.77 12.95 16.08 1.09 18.44 22.89
Pine Sawtimber $24.13 $35.00 25.0% 0.77 18.48 26.80 1.09 26.30 38.15
Subtotal Pine 100.0% 3.06 $46.13 $58.19 4.37 $65.77 $82.94
Hardwood Pulpwood $8.53 $10.00 66.7% 0.29 $2.49 $2.92 0.42 $3.58 $4.20
Hardwood Sawtimber $32.68 $29.00 33.3% 0.15 4.76 4.22 0.21 6.86 6.09
Subtotal Hardwood 100.0% 0.44 $7.25 $7.14 0.63 $10.44 $10.29
Total Revenues 3.50 $53.38 $65.33 5.00 $76.21 $93.23
(+) Leasing / Ancillary Revenue3 10.00 10.00 10.00 10.00
(–) Forest Management / Taxes4 (16.00) (16.00) (16.00) (16.00)
Adjusted per Acre Revenue $47.38 $59.33 $70.21 $87.23
% Δ versus 3.5 Tons per Acre @ Current Pricing 25.00% 48.00% 84.00%
11
Acquisitions and Sales Strategy
E X PA N D E D A N D I M P R O V E D T I M B E R L A N D A S S E T S
COMPANY UPDATE | FOURTH QUARTER 2016 12
Since its listing on the NYSE in late 2013, CatchMark has significantly expanded and improved
the quality of its timberland assets and enhanced productivity through sustainable forest
management practices.
Higher Quality and Productivity2
As of 12/31/2016.
1. Compared to fee timberland acres as of 12/31/2013
2. As of 1/1 of the given year.
• 22 acquisitions: $455 million
• Fee acreage acquired: 238,200 (96% increase)1
• Merchantable inventory added: 10.3 million tons
– 75% pine plantation by acreage
– 52% sawtimber by tons
– Acquisitions averaged stocking of 42 tons
per acre
35%
40%
45%
50%
30
35
40
45
2013 2014 2015 2016 2017
Merchantable Timber (tons/acre) Sawtimber %Ton/Acre Sawtimber %
S U P E R I O R H A R V E S T P R O D U C T I V I T Y
COMPANY UPDATE | FOURTH QUARTER 2016 13
As of 12/31 or for the year ended on 12/31 of each year.
Source: Company 10-K filings. Southern timberland only. CatchMark, Weyerhaeuser, and Rayonier use the same definition of merchantable age on Southern timber.
CatchMark delivers the highest productivity per acre among its peers, while steadily improving
its per acre stocking through prime acquisitions and sustainable forest management.
CatchMark
30
35
40
45
50
55
2014 2015 2016
2.5
3.0
3.5
4.0
4.5
5.0
5.5
Stocking Harvest Productivity
Tons / Acre Tons / Acre
Weyerhaeuser
30
35
40
45
50
55
2014 2015 2016
2.5
3.0
3.5
4.0
4.5
5.0
5.5
Stocking Harvest Productivity
Tons / Acre Tons / Acre
Rayonier
30
35
40
45
50
55
2014 2015 2016
2.5
3.0
3.5
4.0
4.5
5.0
5.5
Stocking Harvest Productivity
Tons / Acre Tons / Acre Potlatch Tons / Acre Tons / Acre
30
35
40
45
50
55
2014 2015 2017
2.5
3.0
3.5
4.0
4.5
5.0
5.5
Stocking Harvest Productivity
A C Q U I S I T I O N S D R I V E I N C R E A S E D S U S TA I N A B L E H A R V E S T P R O D U C T I O N
14
3.4
3.1
2.4
3.1
0.0
1.0
2.0
3.0
4.0
5.0
6.0
1. Represents comparable publicly-traded timber company 10-year (2007-2016) historical average
Drivers of Cash Yield:
─ Sustainable harvest: 80% - 90%
─ Recreational leases: 5% - 10%
─ Land sales: 5% - 10%
+40% versus
Comparable
Company
Historical
Average
Comparable Company Data
(10-year Historical Average)1
CTT Acquisitions
(10-year Projected Average)
WY RYN DEL Weighted
Average
Waycross/
Panola
Oglethorpe/
Satilla
Weighted
Average of 4
Transactions
CTT
Pro Forma
CatchMark’s recent acquisitions exhibit strong productivity characteristics, which enhance
overall portfolio yields.
Harvest Volume per Acre (tons)
COMPANY UPDATE | FOURTH QUARTER 2016
Beauregard CTT @
12/2013
Carolinas
Midlands
III
3.9
5.0 - 5.5
4.3 - 4.7
4.2 - 4.7
4.8 - 5.8
4.7-5.1
4.4 - 4.6
R E P O S I T I O N I N G S T R AT E G Y E N H A N C E S F U T U R E VA L U E
COMPANY UPDATE | FOURTH QUARTER 2016 15
CatchMark’s evolving harvest mix to an increased share of sawtimber highlights the improved
quality of the company’s assets and enhanced prospects for future revenue growth.
Pulpwood
70%
Sawtimber
30%
2011 - 2013
Pulpwood
62%
Sawtimber
38%
2014 – 2016
Average Harvest Mix
Pulpwood
50%
Sawtimber
50%
2017 – 2021
(Near-Term Target)
Targeted Areas
Targeted states
R O B U S T A N D AT T R A C T I V E A C Q U I S I T I O N P I P E L I N E
• Key Metrics/Criteria:
– Local market dynamics (supply/demand
balance)
– Sustainable productivity (tons/acre/year)
– Merchantable inventory/mix (tons/acre)
– Target cash yield (near-term/long-term)
• Current Geographic Focus:
– Southern Pine Belt where best relative value
exists
– Continue to evaluate Pacific Northwest
opportunities
CatchMark seeks well-stocked, high-quality timberlands with near-term income potential to increase
its harvest volumes and cash flow as well as characteristics to sustain long-term growth.
16 COMPANY UPDATE | FOURTH QUARTER 2016
$0.7
$1.6
$2.0
$3.3
$2.8
$6.3
$8.3
$9.3
$5.2
$2.1
$1.4
$1.9
$7.3
$5.1
$2.3
$2.6
$3.62
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Ca
ro
lin
a
s
M
idl
a
n
d
s
I
II
1
$35 billion
75%+ TIMOs
U N I Q U E T I M I N G F O R A C C E S S T O Q U A L I T Y O P P O R T U N I T I E S
17
1. Vintage of CTT major acquisitions.
2. Approximately 60% of the total 2016 transactions came from the 2003 – 2008 transaction pool.
Source: Forest Economic Advisors, ERA Forest Products Research, RISI, Management Estimates
Historical Timberland Transaction Volume ($ in billions)
Timberland transaction volume totaled more than $35 billion between 2003 and 2008, the majority of
which was acquired by TIMOs and likely will be re-traded over the next five years.
COMPANY UPDATE | FOURTH QUARTER 2016
W
a
yc
ro
ss/
P
a
n
o
la
–
5
0
%
1
B
e
a
u
re
g
a
rd
/O
g
le
th
o
rp
e
1
L A N D S A L E S T R AT E G Y S U P P L E M E N T S P O R T F O L I O R E T U R N S
Disposition Strategy
• Higher and better use “HBU” opportunities
• Non-core operating assets
– Sub-optimal inventory stocking
– Heavy to hardwood mix
– Poor productivity
• Lower execution risk by targeting 1% - 2%
of fee acreage annually
COMPANY UPDATE | FOURTH QUARTER 2016 18
0.5%
1.0%
1.5%
2.0%
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
2013 2014 2015 2016
Land Sales $ % Fee Acres
CatchMark undertakes selective land sales to take advantage of “HBU” opportunities, divest
sub-optimal assets and augment overall portfolio returns.
Land Sale Revenue and % Fee Acres
Thousands
19
CatchMark’s Markets
H O U S I N G S TA R T S A N D S AW T I M B E R P R I C I N G
20 COMPANY UPDATE | FOURTH QUARTER 2016
1. Sawtimber prices represent TimberMart-South published south-wide average adjusted by Producer Price Index for All Commodities published by Federal Reserve Bank of St. Louis .
2. Source: Federal Reserve Bank of St. Louis, New Privately Owned Housing Units Started, Thousands of Units, Quarterly, Seasonally Adjusted Annual Rate.
0
10
20
30
40
50
60
70
Housing Start Activity Level (‘000)2
# of Data Points (right axis) Average Trendline
# of Quarters within
Housing Start
Activity Level
TMS South-wide
Sawtimber (2016 $/Ton)1
Avg +/- 1 Standard Deviation
• The average pine sawtimber
price (2016 $) when housing
starts are between 1.4-1.8
million Seasonally Adjusted
Annual Rates is $44.20/Ton.
• Over the past 40 years,
the US economy has
maintained that level of
housing starts four out of
the last ten quarters.
Quarterly Southern Pine Sawtimber Price by Housing Start Activity Level
1976 - Present
20
10
0
Housing starts will drive increase in sawtimber pricing.
M A C R O D E M A N D D R I V E R – H O U S I N G S TA R T S
21 COMPANY UPDATE | FOURTH QUARTER 2016
0.0
0.5
1.0
1.5
2.0
2.5
00 02 04 06 08 10 12 14 16 18 20
Historical and Projected U.S. Housing Starts
S
tart
s
i
n
m
ill
io
n
s
30
40
50
60
70
80
00 02 04 06 08 10 12 14 16 18 20
Projected North America Lumber Consumption
B
B
F
Source: Forest Economic Advisors January 2017, U.S. Census Bureau
0.0
0.5
1.0
1.5
2.0
2.5
00 01 02 04 05 06 07 08 09 10 11 12 13 14 15 16
Single Family and Multifamily Starts
Single Family Multifamily
CatchMark anticipates to capitalize on
increasing housing starts which should lead to
higher lumber consumption and better
sawtimber pricing.
S
tart
s
i
n
m
ill
io
n
s
C AT C H M A R K P O S I T I O N S I N O U T P E R F O R M I N G M A R K E T S
22 COMPANY UPDATE | FOURTH QUARTER 2016
1. Excludes chip-n-saw. Price represents simple average prices as reported by TimberMart-South.
Sources: TimberMart-South Sawtimber Prices
(US$ per ton)
$20
$30
$40
$50
2000 2002 2004 2006 2008 2010 2012 2014 2016
CatchMark markets consistently deliver better sawtimber pricing than other markets in the
U.S. South.
$3.53
difference
Non CTT Sawtimber Markets
CTT Sawtimber Markets
Average Sawtimber
Price Differentials
Price Time
High $7.50 Q4 2005
Low $1.14 Q2 2010
Average $4.47 Average 2000-2016
O T H E R M A C R O D E M A N D D R I V E R S
COMPANY UPDATE | FOURTH QUARTER 2016 23
1. Ministry of Forests, Lands and Natural Resource Operations, British Columbia – Current projection results, 2016; Bloomberg, “Beetle Bug Spurs
Canadians on U.S. Lumber Mill Buying Spree”, June 23, 2015.
Commercial Construction Demand
• 55% of British Columbia pine volume
may be killed by 2020, increasing timber
demand in other regions, particularly U.S.
South.
• New “Mass Timber” designs significantly
expand demand for lumber in
commercial and multifamily construction.
• New and expanded wood bioenergy
facilities in CatchMark operating regions
serve increased wood pellet demand from
Europe as a result of environmental
policies.
Wood Bioenergy Use Mountain Pine Beetle Scourge
Timber demand increases in CatchMark regions from commercial construction and bioenergy
uses while beetle infestation in British Columbia constrains overall North American supply.
M I C R O M A R K E T S M A K E A D I F F E R E N C E
24
CatchMark targets markets with favorable current and long-term supply/demand fundamentals.
COMPANY UPDATE | FOURTH QUARTER 2016
Source: Forisk, January 2017.
Source: Forisk, September 2016.
Operates in four distinct markets—
Mid-Atlantic, Coastal, South Central,
and Southwest—with diverse mills, well
capitalized customers, and strong
productivity.
• 142 pulpwood mills
• 288 pine grade mills
• Estimated annual total consumption: 73
million tons of pine products
• Outlook: Expect consumption to grow
20%-30% over next ten years.
CatchMark Acreage by Region (12/31/16)
─ Mid-Atlantic 78,500
─ Coastal 42,000
─ South Central 322,200
─ Southwest 56,900
Total 499,600
O P E R AT I N G I N M A R K E T S W I T H S T R O N G P R O D U C T I V I T Y A N D C U S T O M E R S
COMPANY UPDATE | FOURTH QUARTER 2016 25
CatchMark markets outperform TimberMart-South averages.
$15
$17
$19
$21
$23
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
Pine Pulpwood Prices
$8
$10
$12
$14
$16
$18
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
Pine Chip-n-Saw Prices
$24
$26
$28
$30
$32
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
Pine Sawtimber Prices
• Timber prices driven by local supply and
demand.
• Prices can vary greatly from market to market.
TimberMart-South Published Prices:
M I D - AT L A N T I C – 7 8 , 5 0 0 A C R E S
26 COMPANY UPDATE | FOURTH QUARTER 2016
NC
SC
# of Mills
Consumption
(millions tons)
Pulpwood 53 10.6
Pine grade 109 7.7
Total 162 18.3
ANNUAL CONSUMPTION
Source: Forisk, September 2016. As of 6/30/2016.
0
5
10
15
20
25
Q315 - Q216 2025 Base 2025 High
Million
Tons
Pulpwood Pine Grade
Forecast Scenarios Current
DEMAND
Market Overview
• Deep and diversified mills
• Ability to capture export pricing
• Tight supply produces greater price movement as housing demand
improves
C O A S TA L – 4 2 , 0 0 0 A C R E S
27 COMPANY UPDATE | FOURTH QUARTER 2016
NC
SC
# of Mills
Consumption
(millions tons)
Pulpwood 52 12.4
Pine grade 87 8.0
Total 139 20.4
ANNUAL CONSUMPTION
Source: Forisk, September 2016. As of 6/30/2016.
0
5
10
15
20
25
30
Q315 - Q216 2025 Base 2025 High
Pulpwood Pine Grade
Forecast Scenarios Current
DEMAND
Market Overview
• Deep and diversified mill market
• Top tier pine pulpwood market
• Ability to capture export pricing
Million
Tons
S O U T H C E N T R A L – 3 2 2 , 2 0 0 A C R E S
28 COMPANY UPDATE | FOURTH QUARTER 2016
NC
SC
# of Mills
Consumption
(millions tons)
Pulpwood 52 7.0
Pine grade 94 6.1
Total 146 13.1
ANNUAL CONSUMPTION
Source: Forisk, September 2016. As of 6/30/2016.
0
2
4
6
8
10
12
14
16
18
Q315 - Q216 2025 Base 2025 High
Pulpwood Pine Grade
Forecast Scenarios Current
DEMAND
Market Overview
• Well capitalized mills
• Exposure to high value pulp/paper end-use products
• CatchMark has significant market presence
Million
Tons
S O U T H W E S T – 5 6 , 9 0 0 A C R E S
29 COMPANY UPDATE | FOURTH QUARTER 2016
NC
SC
# of Mills
Consumption
(millions tons)
Pulpwood 34 11.7
Pine grade 82 9.3
Total 116 21.0
ANNUAL CONSUMPTION
Source: Forisk, September 2016. As of 6/30/2016.
0
5
10
15
20
25
30
Q315 - Q216 2025 Base 2025 High
Pulpwood Pine Grade
Million
Tons Forecast Scenarios Current
DEMAND
Market Overview
• Low volatility
• Steady price/demand growth
• Strong upside in pricing driven by consumption growth
30
Capital Position
S O L I D C A P I TA L P O S I T I O N
COMPANY UPDATE | FOURTH QUARTER 2016 31
Credit Metrics
Fixed charge coverage ratio1 5.2x
Net Debt2/Adjusted EBITDA 8.7x
Net Debt2/Enterprise value3 42%
Debt/Timberland Value4 34.8%
Weighted average cost of debt5 2.19%
A sound credit profile and access to capital provide a clear path for funding future CatchMark
growth opportunities.
1. Calculated using trailing twelve month Adjusted EBITDA divided by cash paid for interest as of 12/31/2016.
2. Net debt equals outstanding borrowings net of cash on hand.
3. Enterprise value is based on equity market capitalization as of 12/31/2016 plus net debt.
4. Timberland value per bank appraisal.
5. After consideration of effects of interest rate swaps and patronage refund.
All data as of or for the year ended 12/31/2016.
Current
Fixed
25%
Current
Floating
75%
Intended
Additional
Fixed
25%
Interest Rate Mix
Credit Facilities
Capacity Outstanding Available Maturity
Term Loan $100 M $100 M 12/2024
Multi-Draw Term Loan $365 M $226 M $139 M 12/2021
Revolver Line of Credit $35 M $35 M 12/2019
Total Credit Facilities $500 M $326 M $174 M
$139.3 M
$35.0 M
$9.1 M
-
20
40
60
80
100
120
140
160
180
200
Acquisition facility RLOC CashMillions
Liquidity
$183.4M
H I G H E S T D I V I D E N D Y I E L D I N S E C T O R W I T H S U P E R I O R
R I S K - A D J U S T E D C O V E R A G E
• CatchMark’s dividend distributions consistently have been covered by cash available for distributions2 since its IPO.
• Dividends from timber REITs generally receive capital gains treatment.
• 100% of CatchMark’s dividends were treated as return of capital for 2016, largely due to non-cash depletion expense
deduction.
• Sustainable harvest volumes from acquisitions and/or lasting product price appreciations support dividend growth.
32 COMPANY UPDATE | FOURTH QUARTER 2016
2016 Tax Treatment CTT RYN2 PCH WY
Dividend Yield (before tax)1 4.8% 3.8% 3.6% 4.1%
% Return of Capital 100% 0% 0% 0%
% Capital Gain 0% 100% 100% 100%
% Ordinary Income 0% 0% 0% 0%
Dividend Yield (after tax)1 4.8% 3.0% 2.9% 3.3%
1. Calculated with close price on 12/30/2016.
2. Cash Available for Distributions (CAD) is a non-GAAP measure. See Appendix for our reconciliation to CAD.
CatchMark registered the highest dividend yield among timber REITs. Coupled with tax advantages,
the dividend yields outpaced the company’s peers by over 45%.
CAD2 Payout Ratio 2014 2015 2016
CTT 73% 74% 74%
RYN 276% 106% 85%
WY 66% 105% 275%
PCH 58% 132% 63%
Share Price
C A P I TA L A L L O C AT I O N S
33 COMPANY UPDATE | FOURTH QUARTER 2016
0
25
50
75
100
125
150
175
200
225
250
275
2014 2015 2016
Acquisitions Dividends Share Repurchases CAPEX
Millions
Allocation of Capital
94%
6%
73%
19%
6% 3%
2% 2%
84%
12%
Opportunistic Repurchase Program
Shares
Repurchased
CatchMark prudently allocates capital to fund growth through acquisitions, provide sustainable
dividends to deliver current income, opportunistically repurchase shares at attractive prices, and
provide for reinvestment needs to sustain portfolio value.
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
$8.00
$8.50
$9.00
$9.50
$10.00
$10.50
$11.00
$11.50
$12.00
$12.50
$13.00
Close Price Shares repurchased
S U M M A R Y
CatchMark’s focus on quality—timberland assets, operational excellence, and sustainable
earnings—helps the company grow cash flow, dividends and shareholder value.
S t r a t e g y
• Expand holdings of prime,
well-stocked timberlands;
manage for durable earnings
and increase value through
sustainable environmental
practices; grow cash flow
and increase dividends per
share.
P e r f o r m a n c e
• Increased total revenues by
18% compared to full-year
2015
• Increased Adjusted EBITDA by
13% compared to for full-year
2015
• Increased total harvest
volumes by 21%
• Increased gross timber sales
by 23%
• Increased quarterly dividend by
6%, compared to 2015
O p p o r t u n i t y
• Invest in a company well-
positioned to take advantage of
the improving housing market
with an experienced and
proven management team
implementing a clear strategy,
buoyed by a strong balance
sheet.
34 COMPANY UPDATE | FOURTH QUARTER 2016
35
Appendix
S U S TA I N A B L E F O R E S T R Y I N I T I AT I V E C E R T I F I C AT I O N
CatchMark SFI Implementation Program
• Forest management planning
• Forest health and productivity
• Protection and maintenance of water resources
• Conservation and biological diversity
• Management of visual quality and recreational benefits
• Protection of special sites
• Efficient use of fiber resources
• Recognize and respect indigenous people’s rights
• Legal and regulatory compliance
• Forestry research, science, and technology
• Training and education
• Community involvement and landowner outreach
• Public land management responsibilities
• Communications and public reporting
• Management review
36 COMPANY UPDATE | FOURTH QUARTER 2016
* SFI Re-certification Audit (2015) and Surveillance Audit (2016)
“CatchMark has developed a program that continues to meet the requirements of the SFIS 2015-2019
Forest Management Edition” *
M A J O R T R A N S A C T I O N S S I N C E 2 0 1 3 L I S T I N G O N N Y S E
37 COMPANY UPDATE | FOURTH QUARTER 2016
Over the past three years CatchMark has acquired approximately 246,500 acres1 of high quality
timberlands in the U.S. South “Timber Basket” totaling $455 million.
Carolinas Midlands III
• $101 million
• South Carolina
• 51,700 acres
• 250,000-300,000 tons of
annual harvest volume
(4.8 – 5.8 tons/acre/year)
• 2.0 million tons of
merchantable timber
(39 tons/acre)
Beauregard
• $38 million
• Louisiana
• 21,300 acres
• 90,000-100,000 tons of annual
harvest volume
(4.2 – 4.7 tons/acre/year)
• 840,000 tons of merchantable
timber (39 tons/acre)
Oglethorpe/Satilla
River
• $111 million
• Georgia and Florida
• 55,600 acres
• 240,000-260,000 tons of annual
harvest volume
(4.3 – 4.7 tons/acre/year)
• 2.5 million tons of merchantable
timber (44 tons/acre)
Waycross/Panola
• $74 million
• Texas and Georgia
• 36,300 acres
• 180,000-200,000 tons of annual
harvest volume
(5.0 – 5.5 tons/acre/year)
• 1.2 million tons of merchantable
timber (33 tons/acre)
Total Acres Owned and Leased: 499,600 (12/31/16)
Major transactions include:
1. Including 8,300 acres of leasehold interest acquired in November 2016.
A D J U S T E D E B I T D A
COMPANY UPDATE | FOURTH QUARTER 2016 38
Earnings from Continuing Operations before Interest, Taxes, Depletion, and Amortization (“EBITDA”) is a non-GAAP measure of operating
performance. EBITDA is defined by the SEC; however, we have excluded certain other expenses due to their non-cash nature, and we refer
to this measure as Adjusted EBITDA. As such, our Adjusted EBITDA may not be comparable to similarly titled measures reported by other
companies and should not be viewed as an alternative to net income or cash from operations as measurements of our operating
performance. Due to the significant amount of timber assets subject to depletion and the significant amount of financing subject to interest
and amortization expense, management considers Adjusted EBITDA to be an important measure of our financial condition and
performance. Our credit agreements contain a minimum debt service coverage ratio based, in part, on Adjusted EBITDA since this measure
is representative of adjusted income available for interest payments.
R E C O N C I L I AT I O N O F N E T I N C O M E ( L O S S ) T O A D J U S T E D E B I T D A
COMPANY UPDATE | FOURTH QUARTER 2016 39
1. For the purpose of the above reconciliation, amortization includes amortization of deferred financing costs, amortization of intangible lease assets, and amortization of
mainline road costs, which are included in either interest expense, land rent expense, or other operating expenses in the accompanying consolidated statements of
operations.
(in thousands) 2014 2015 2016
Net Income (loss) $660 $(8,387) $(11,070)
Add:
Depletion 14,788 27,091 28,897
Basis of timberland sold 5,072 8,886 9,728
Amortization1 836 765 1,093
Stock-based compensation expense 418 889 1,724
Interest expense1 1,897 2,924 5,753
Casualty loss - - 361
Adjusted EBITDA $23,671 $32,168 $36,486
A D J U S T E D E B I T D A B Y S O U R C E S
COMPANY UPDATE | FOURTH QUARTER 2016 40
(in thousands) 2014 2015 2016
Timber sales 40,635 52,837 65,035
Other revenue 3,026 4,440 4,305
(-) Contract logging and hauling costs (17,322) (19,911) (25,918)
(-) Forestry management expenses (3,567) (4,495) (6,092)
(-) Land rent expense (831) (736) (625)
(-) Other operating expenses (2,942) (4,295) (5,017)
(+) Other1 174 288 814
Harvest EBITDA 19,173 28,128 32,502
Timberland sales 10,650 11,845 12,515
(-) Cost of timberland sales (5,558) (9,747) (10,405)
(+) Basis of timberland sold 5,072 8,886 9,728
Real Estate EBITDA 10,164 10,984 11,838
Total Operating EBITDA 29,337 39,112 44,340
(-) General and administrative expense (6,185) (7,667) (9,309)
(+) Stock-based compensation 342 718 1,411
(+) Interest Income 177 6 44
Non-allocated / Corporate EBITDA (5,666) (6,943) (7,854)
Adjusted EBITDA 23,671 32,169 36,486
1. Other includes non-cash items: amortization, stock-based compensation, and casualty loss
Sources: Company 10-K
C A D R E C O N C I L I AT I O N A N D D I V I D E N D P AY O U T R AT I O C A L C U L AT I O N
COMPANY UPDATE | FOURTH QUARTER 2016 41
Sources: Company filings.
(Dollars in millions)
CATCHMARK (CTT) 2014 2015 2016
Dividends Paid $15.3 $19.6 $20.4
Cash provided by operating activities, as reported $19.8 $28.5 $30.8
(-) Capital Expenditures (excluding timberland acquisitions) (0.9) (2.7) (3.2)
+/(-) Working capital changes 1.9 0.8 (0.1)
CAD $20.8 $26.6 $27.5
Payout Ratio 73% 74% 74%
C A D R E C O N C I L I AT I O N A N D D I V I D E N D P AY O U T R AT I O C A L C U L AT I O N
COMPANY UPDATE | FOURTH QUARTER 2016 42
1. Weyerhaeuser's 2014 and 2015 numbers were calculate from its Form 10-K filed in 2015.
2. For 2014, Other includes $21.4M adjustment for large dispositions and $102.4M adjustment for cash flows from discontinued operations, as reported in Rayonier’s 2016 Form 10K.
Sources: Company filings
(Dollars in millions)
WEYERHAEUSER (WY) 20141 20151 2016
Dividends Paid $563 $619 $932
Cash provided by operating activities, as reported $1,088 $1,064 $735
(-) Capital Expenditures (excluding timberland acquisitions) (395) (483) (510)
+/(-) Working capital changes 160 10 (129)
(+) Incomes taxes paid for discontinued operations - - 243
CAD $853 $591 $339
Payout Ratio 66% 105% 275%
RAYONIER (RYN) 2014 2015 2016
Dividends Paid $257.5 $124.9 $122.8
Cash provided by operating activities, as reported $320.4 $177.2 $203.8
(-) Capital Expenditures (excluding timberland acquisitions) (63.7) (57.3) (58.7)
(-) Working capital changes (39.5) (2.5) (0.8)
(-) Other2 (123.8) - -
CAD $93.4 $117.4 $144.2
Payout Ratio 276% 106% 85%
POTLATCH (PCH) 2014 2015 2016
Dividends Paid $57.8 $61.0 $60.8
Cash provided by operating activities, as reported $131.4 $74.0 $102.1
(-) Capital Expenditures (excluding timberland acquisitions) (24.2) (32.7) (19.3)
+/(-) Working capital changes (7.2) 4.8 13.8
CAD $100.0 $46.1 $96.6
Payout Ratio 58% 132% 63%