Update Rayonier (RYN)

On January 26 Rayonier (RYN) told income investors what they needed to hear: Even though 2009 had been a very tough year for timber and real estate sales the company, organized as a real estate investment trust (REIT) so it must pass most of its profits on to shareholders, had generated cash available for distribution of $230 million for the year. That was an increase from cash available for distribution of $213 million in 2008. And more than enough to cover the company’s $2 a share annual dividend.

Oh, yes, earnings. The Rayonier reported earnings in share of 42 cents for the fourth quarter (excluding gains from the alternative fuel mix tax credit). That was in line with Wall Street estimates. Revenues at $309.8 for the quarter were down 15% from the fourth quarter of 2008 but met Wall Street projections of $309.1 million.

The company’s three divisions certainly can’t be said to firing on all cylinders. (So, it’s a three-cylinder car.) Read more

Update Rayonier (RYN)

Considering that investing in timber seems to be falling out of favor, shares of Rayonier (RYN) have held up extremely well over the last six weeks. The stock is essentially unchanged at $42.96 on September 18 from its August 5 price of $42.29.

 Now normally I don’t like to own shares of any company when its sector is falling out of favor—it puts the trend against me rather than with me—but in this case I’m willing to hold on because the negative short-term trend is a big long-term positive. Read more