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How Weyerhaeuser's Results Reflect on Timber REITs

But couldn't the timber REITs simply cut back on logging if the prices of lumber keep dropping? There's essentially no risk to cutting back, because biological growth will continue regardless of the market conditions. And this biological growth will ultimately lead to a higher supply of timber that the companies can utilize when prices return to normal levels.

Sure, the book value of the trees may decrease, but if there's no risk to letting them continue growing, who cares?