FTREITguy

How 'Timber-Like' Are Timber REITs?

This is an interesting article, but I have a couple of questions for you about your methodology. Why use each company's return from timber-based operations to determine if investing a timber REIT is a proxy for direct timberland investment? Why not look at the return of the individual stock prices instead? After all, that is what investors can invest in and reap the benefits of. I realize that dividends may be driven from returns on timber-based activities for these companies, but an investor cannot invest solely in the timberland portion of these REITs' stocks. Also, why would you start your comparison in 1997, when Plum Creek did not become a timber REIT until 1999? Not to mention Rayonier and Potlatch, which converted in 2004 and 2006, respectively.