M&A Announcement

Oct 14, 2025

Hello and thank you for standing by. My name is Tiffany and I will be your conference operator today. At this time I would like to welcome everyone to the Rayonier and PotlatchDeltic merger of equals call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks there will be a question and answer session. If you would like to ask a question during that time, simply press Star then the number one on your telephone keypad. I would now like to turn the call over to Colin Mings, Vice President of Capital Markets and Strategic Planning of Rayonier. Sir, please go ahead. Thank you, and good morning. Welcome to this morning's teleconference discussing the merger of equals between Rayonier and PotlatchDeltic. This call is being webcast at rayonier.com and potlatchdeltic.com. The presentation slides for today's call can. Be found on both companies' website and have been filed with the SEC. I would like to remind you that. In this presentation, we include forward-looking statements made pursuant to the safe harbor. Provisions of federal securities laws. This morning's press release as well. Forms 10-K and 10-Q followed by the. SEC by Rayonier and PotlatchDeltic. List some of the factors that may cause actual results to differ materially from the forward-looking statements we may make throughout today's presentation. We will also discuss non-GAAP financial. Measures which are defined and reconciled to the nearest GAAP measure where possible in our materials. With that, let's put our teleconference with opening comments from Eric Cremers, PotlatchDeltic's President and CEO. Eric. Thank you, Colin. Good morning everyone. Thanks for joining the call on relatively short notice. Earlier this morning, Rayonier and PotlatchDeltic issued a joint press release announcing that we have entered into a definitive merger agreement under which the companies will combine in an all stock merger of equals transaction. I'm excited to be in Atlanta, Georgia this morning with Mark McHugh, Rayonier's. President and CEO and Wayne Waisanen, Chief. Financial Officer of PotlatchDeltic to discuss this announcement as we believe that the merger between our two companies will result in significant strategic and financial benefits beyond what either of us could achieve independently. Rayonier and PotlatchDeltic share complementary business models, similar cultures, and a long-standing commitment to sustainability. This merger significantly increases the scale of both companies as we will own nearly 4.2 million acres of timberlands across 11 states. The combined company will have an efficient and scalable wood products manufacturing business with. 1.2 billion board feet of lumber capacity. 150 million square feet of plywood capacity. In addition, the combination will result in a diverse real estate portfolio and robust opportunities to provide land-based and natural climate solutions such as leasing land for solar development or carbon capture and storage. Under the terms of the agreement, PotlatchDeltic shareholders will receive 1.7339 shares in Rayonier for each PotlatchDeltic share. This represents an 8.25% premium to PotlatchDeltic based on the closing stock price for both companies as of October 10. Importantly, this structure will provide both Rayonier and PotlatchDeltic shareholders the opportunity to participate in the upside potential of this combination. The pro forma ownership will be approximately 54% Rayonier shareholders and 46% PotlatchDeltic shareholders. The merger has been unanimously approved by. Both of our boards and is expected to close in late first quarter or early second quarter of 2026, subject to the satisfaction of customary closing conditions, including receipt of required regulatory approvals and the approval of Rayonier shareholders and PotlatchDeltic shareholders. The name of the combined company will. Be determined prior to closing. Company's headquarters will be in Atlanta, Georgia where PotlatchDeltic already has an established presence. Notably, the combined company will be the. Largest private landowner in Georgia with nearly 900,000 acres of timberland. In addition, the Hartwood Real Estate Development project is located near Savannah, Georgia, and we see significant future opportunities associated with our combined portfolio in the state. Regional offices will be maintained in both Wildlight, Florida, and Spokane, Washington. On the financial front, a combined company will have a strong pro forma balance sheet as well as an enhanced capital markets presence. Through this combination, there is also a significant opportunity to create value through synergies, operational efficiencies, and the sharing of best practices. We estimate synergies of $40 million, which will be primarily driven by corporate and operational cost optimization. We anticipate having half of these synergies. By the end of year one and the remainder by the end of year two. We expect the transaction to be accretive to cash available for distribution per share as run rate synergies are achieved over time. We will strive to identify additional synergy opportunities through the sharing of best practices and a continued focus on optimizing costs across the combined organization. Upon closing of the merger, I will serve as Executive Chair of the Board of the combined company and Mark will serve as President and CEO. Wayne Waisanen, Chief Financial Officer. Waisanen will serve as CFO of the combined company. In addition, Brett Rogers, currently Senior Vice President of Portfolio Management for Rayonier, will serve as Executive Vice President, Land Resources, overseeing timberland operations, rural land sales, and land based solutions. Ashley Pyatt, current Vice President of Wood Products at PotlatchDeltic, will serve as Executive Vice President of Wood Products overseeing. The company's manufacturing operations. The Board of Directors of the combined company will be comprised of five existing directors from Rayonier including Mark, and five existing directors from PotlatchDeltic including myself. The Lead Independent Director will be selected by Rayonier. Our team at PotlatchDeltic has been impressed by the actions taken by Rayonier to create value for its shareholders over the past several years through nimble capital allocation and active portfolio management. Likewise, I'm proud of how our team at PotlatchDeltic has executed on opportunistic. M and A to create value for. Shareholders over time and how it has navigated evolving lumber market dynamics with a strong focus on operational excellence and cost discipline. Building on these successes, Mark and I see a tremendous runway for the combined company. As a result of the merger, our collective shareholders will benefit from a more diversified timberland portfolio, a complementary wood products manufacturing. Business and an enhanced platform to unlock. Value through higher-and-better-use (HBU) real estate opportunities as well as natural climate solutions and land-based solutions. We believe now is the right time. To combine our portfolios and teams and to strive to unlock even more potential for our investors as a company with more scale and liquidity, a larger and more diversified geographic footprint, and complementary businesses. With that, I will now turn the call over to Mark. Thanks, Eric, I appreciate your comments, and likewise the Rayonier team has long admired PotlatchDeltic's focus on shareholder value creation through disciplined capital allocation. I'm very excited by the opportunity to partner with you as we lead the combined company through this transformation. I'll start by offering some perspective on. The road that led us to this transaction and then expand on the unique opportunity we see to create long-term value creating for all shareholders through this merger of equals. In November 2023, Rayonier outlined an asset disposition and capital structure realignment plan to reduce leverage and capitalize on a disparity between public and private timberland valuations. With the closing of the sale of our New Zealand business this summer, we had disposed of $1.45 billion of assets since late 2023, exceeding our original disposition goal and achieving our new leverage targets in a manner that was both accretive to cash available for distribution per share and net asset value per share while also further concentrating our assets in regions with the most long-term optionality and upside. At the same time as we considered the path forward following our disposition initiative, we became increasingly mindful of the advantages offered by a larger portfolio, especially as we look to grow our land-based solutions business and unlock value through land use optimization. We also consider the potential benefits associated with having some direct exposure to wood products manufacturing as well as the importance of scale when operating a public company in the current capital markets environment. Naturally, this led to discussions regarding potential merger with PotlatchDeltic. During the course of these discussions, the merits of a potential combination with PotlatchDeltic became increasingly clear as we believe that our portfolios and our teams fit together quite well. In addition, we saw a strong alignment in our corporate values and our philosophy around capital allocation and shareholder value creation. Following the completion of our disposition and capital structure realignment plan as well as the strategic moves made by PotlatchDeltic to expand its portfolio in the U.S. South over the past several years, we and our respective boards determined that the circumstances were well aligned to explore a potential combination. Ultimately, we both saw a compelling opportunity to create a premier land resources company with a strong balance sheet that will be well positioned to grow and create shareholder value going forward. Expanding on this point and Eric's comments, earlier slides 4 and 5 of our presentation outline the key strategic and financial benefits of this merger as well as the key terms of the transaction which Eric reviewed. The executive leadership of the combined company will reflect a roughly equal balance of talent between the two companies. Initial executive appointments are shown on slide 6. I'm looking forward to partnering with these exceptional leaders upon the closing of the merger to integrate our organization and advance our combined strategy. Additional decisions on key leaders for the combined organization will be announced between now and closing. Slide 7 lays out some key metrics on the pro forma company. The combination of the two platforms will result in a leading land resources company with roughly two times the scale that either of us has independently. The pro forma EBITDA mix comprises a large component of relatively stable cash flow, but also still has meaningful leverage to the lumber cycle. Moving to slides 8 and 9, these slides illustrate what the asset profile of the combined company will look like in more detail, including roughly 3.2 million acres in the U.S. South spread across eight states, roughly 1 million acres in the Northwest, primarily in Washington and Idaho, seven wood products facilities, and three real estate development projects. Slide 9 offers a great visual as it highlights the diversification benefits of the merger. While the assets of both companies are in the same regions, they are concentrated in different markets with different supply-demand dynamics, so both of our shareholders will benefit from the diversification impact of the merger. Also, most of the combined company's acreage is in the U.S. South, where we see meaningful long-term optionality and upside potential. Turning to slide 10, PotlatchDeltic's existing platform for wood products will leave the combined company well positioned to benefit from an eventual ramp up in U.S. lumber production in response to higher duties. On Canadian lumber imports. New tariffs recently announced on wood products imports, the prospect of additional interest rate cuts, and improved housing demand as we move forward. PotlatchDeltic's existing wood products facilities are largely top quartile mills that are poised to benefit from the targeted capital investments that PotlatchDeltic has made under the leadership of Eric Cremers and Ashley Pyatt over the past several years. Moving forward, the combined company will have a strong balance sheet with additional flexibility to make synergistic investments in the wood products business over time. We believe that this platform provides another lever with which to optimize the value of our overall land portfolio. Slide 11 highlights how both of our respective teams have been focused on increasing the premiums achieved on higher-and-better-use land sales as well as the shift of both companies towards higher value development sales over the past decade. The larger portfolio will inherently create more opportunities for our teams to leverage their expertise to identify and execute on higher-and-better-use opportunities across our combined land base. As it relates to our development project, Slide 12 provides some additional detail on the three existing projects across both companies. As we've discussed in the past, Rayonier's Wildlight and Heartwood projects have a significant runway ahead of them and we anticipate that the contribution from these projects will grow significantly in the years ahead. While PotlatchDeltic's Chenal Valley project is relatively more mature, we expect it to remain a steady contributor to cash flows moving forward. In addition, we look forward to the sharing of best practices among our teams as this project is in a different phase of its life cycle. Moving to Slide 13 on the land-based solutions and natural climate solutions front, we believe there's a lot of value in leveraging and diversifying the combined platform. Both companies have already made great strides on the solar leasing front over the past few years and through this transaction both companies are gaining exposure to additional revenue streams. In fact, just a few days ago PotlatchDeltic signed a new lithium lease for approximately 4,200 surface acres in the Smackover region of southwest Arkansas. Further, we see a lot of upside potential in carbon markets over the long term. Key buyers of carbon offsets are increasingly looking for large scale projects to meet their net zero ambitions, but we believe the Combined Company will be much better positioned as a potential supplier of choice. Turning to slide 14, this chart offers additional perspectives on the increased scale and capital markets relevance achieved through this transaction. The Combined Company will be among the largest publicly traded timber and wood products companies in North America. By combining forces, we believe we will be able to better leverage our costs, increase our portfolio diversification and optionality, and realize an improved cost of capital over time, all of which will further enhance our ability to create shareholder value in the future. On slide 15, we outline our pro forma capital structure and debt maturity profile on a trailing twelve month basis. Our combined adjusted EBITDA has totaled roughly $439 million, resulting in conservative pro forma net debt to LTM adjusted EBITDA of 2.5 times before factoring in the upside from synergies. The Combined Company will further have a well-staggered debt maturity profile as well as a significant cash position to deploy opportunistically. To this end, as detailed on slide 16, similar to the track record established by Rayonier and PotlatchDeltic as separate companies, the Combined Company will have a financial strategy focused on nimble capital allocation and prudent financial management. This strategy will focus on maintaining investment grade credit ratings, returning capital to shareholders through a sustainable dividend that grows over time, opportunistic share repurchases, and capital investments in our portfolio. Moving to slide 17, we provided details on our anticipated pro forma dividend as well as the special dividend that was also announced this morning. Notably, the Combined Company plans to maintain Rayonier's current quarterly dividend level as adjusted to reflect the increased number of common shares issued in the special dividend. The special dividend is being paid to meet REIT taxable income distribution requirements in connection with Rayonier's sale of its New Zealand business in June. The $1.40 per share special dividend will be paid to Rayonier shareholders in a combination of cash and shares during December to equalize the economic impact of the Rayonier special dividend. The merger consideration payable to PotlatchDeltic shareholders at the closing of the transaction will be adjusted so that PotlatchDeltic shareholders will receive consideration of equivalent value. Additional details regarding the adjustment mechanism are provided in the press release and the 8K filed in connection with the transaction. Slide 18 provides some highlights regarding our shared commitment to sustainability and corporate responsibility. Both companies have similar values and a longstanding commitment to responsible stewardship of our land resources, which we look forward to continuing and further strengthening as a combined company. On slide 19, we've summarized the opportunity we see to bring these two great companies together. We believe that this combination will create a premier land resources company with a high-quality, well-diversified timberland portfolio, a dynamic real estate business, and an established wood products platform that is poised to benefit from improving housing market conditions. Further, both organizations have a strong track record and commitment to safety, sustainability, and the stewardship of our land resources, which I'm optimistic will serve to align our cultures and make this merger a success. I'll now turn it back over to Eric for some closing remarks. Thanks, Mark. We both see this combination as a compelling opportunity and watershed moment for our companies, and we are committed to ensuring a successful transition. Before opening it up to questions, let me say again how energized we are to be combining two great companies with tremendous talent as well as a shared. Commitment to sustainability and a legacy of. Excellence in delivering land resources to their highest and best use. We are confident about the financial underpinnings of this merger and its benefits for the shareholders of both companies. I'm excited to work together with Mark to create value for our shareholders through this merger of equals. This concludes our prepared remarks. I'll now turn the call back to the operator for questions. At this time, if you would like to ask a question, press Star, then the number one on your telephone keypad. To withdraw your question, simply press Star one again. We will pause for just a moment to compile the Q&A roster. Your first question comes from the line of Kurt Yinger with D.A. Davidson. Please go ahead. Great. Good morning everyone, and congrats on the deal. Mark, just wanted to start with a question. Two-parter for you. First, you know, historically Rayonier has sort of positioned the lack of wood products exposure as an advantage in terms of not being subject to that volatility. I just love to hear your. Thoughts around how that plays into the vision of the combined company. With the improvements that have been made with the Rayonier balance sheet, a lot of capital allocation flexibility going forward. Just curious how you thought about this. Transaction in combination from a returns perspective relative to maybe other alternatives or private timberland acquisitions that you were seeing out there in the market. Thank you. Yeah, sure. Happy to take that. As we discussed in the. Prepared remarks coming out of our disposition plan, you know, we considered the potential benefits of having some direct exposure to wood products manufacturing. As you know, lumber mill economics can be quite volatile, but well positioned lumber mills, we think, can also generate strong returns over the cycle. We've also become increasingly mindful of the value inherent in being able to influence demand in markets that are important to our overall portfolio value. What we find attractive about PotlatchDeltic's lumber business is that it generates relatively strong margins, and it's a scalable platform. Overall, we think that this business will be a really nice complement to a 4.2 million acre combined timberland portfolio, and it really gives us another lever with which to optimize our portfolio value. As it relates to the second question, you know, like you said, we have a lot of flexibility with the current balance sheet profile that we have. We're not going to get into details on overall process or other things that we considered. There will be a fair amount of disclosure around that in the merger proxy when it's filed. Suffice it to say, we felt that this transaction was the best way to create value for both of our shareholders. Got it. Okay, appreciate the color. Lastly, for Eric, at recent prices, at least the current exchange ratio still, you know, a gap relative to where I think a lot of us have NAV. What about this transaction in combination maybe gives you more confidence around crystallizing that value relative to how you thought about that opportunity on kind of a standalone basis? Yeah, Kurt, we're both trading at significant discounts to NAV. I think from a starting position, we're both kind of in the same boat, if you will. I would say given the comparable size, the complementary asset profile, strong culture, alignment of the two companies, we really saw this as an opportunity to create a win-win for both sets of our shareholders. By combining our assets, our talented teams, we're going to be able to realize benefits beyond what either one of us could achieve independently. Through the MOE structure that we've executed on here, with relatively comparable pro forma ownership, our collective shareholders are going to be able to share equally in the economic value created by this merger. That $40 million of synergies, for example, our own shareholders are going to benefit 46% from that, and Rayonier shareholders are going to benefit 54% from that. This really is a win-win for both sets of shareholders at the end of the day. Great. Appreciate the color. Thank you. Your next question comes from the line of Anthony Pettinari with Citigroup. Please go ahead. Good morning. Morning. Hey, following up on Kurt's question on wood products, I guess the other publicly traded timber REIT with a meaningful lumber exposure has this kind of BAS variable dividend structure, which I think was put in place to reflect or manage the volatility of wood products earnings. I'm just curious how you think about that. I mean, over the very long term in terms of sustainability of a fixed but growing dividend, given that wood products earnings have been historically somewhat volatile and in recent history very volatile. I'd say that both Rayonier and PotlatchDeltic have always been very committed to a sustainable and growing dividend, and neither has felt the need to implement a variable dividend strategy. Do we really see this merger as an opportunity to grow cash flow over time and ultimately grow the dividend? Okay, and maybe just one follow-up. I mean, when looking at Southern sawlogs, it seems like Rayonier's message has been you're going to see sawlog price improvement given you're in some of these coastal regions that have pretty tight supply-demand balance. With PotlatchDeltic, it seems like log price improvement was maybe not as much of a focus given sort of more of an inland positioning. I'm just curious if you can just talk about sort of the general outlook for Southern sawlog price improvement over, you know, the midterm and then just how the portfolio is positioned in that regard. I don't think we're going to get into forecasting soft timber price improvements on this call. What I will say is one thing about this transaction that was particularly appealing is just the diversification benefit that it offered to both sets of shareholders. We're in the same broad regions, as we said in the prepared remarks, but we're actually in quite different markets within the South and the Northwest. Those markets don't always move in tandem, so we think that diversification benefit. Is quite significant for both sets of shareholders. Okay, I'll turn it over. Your next question comes from the line of Mark Weintraub with Seaport Research Partners. Please go ahead. Good morning. Congratulations. Apologies, I'm a little late to the call, so hopefully I don't ask something that has already been asked and answered. Compelling logic, totally understood. This may be getting a little far out there, but as you think about growing the business over time, would you anticipate that there'll be a fair bit of scope and or focus to increase on the wood products manufacturing side, given the, if the price arbitrage between private and public market timberland values were to consist? If that's the case, would the focus be mostly on sawmills, or is there room to consider other types of wood products manufacturing as well? Yeah, this is Mark. Look, I think that we view this as creating another option within the capital allocation toolkit. We've both been pretty clear that we think it's tough to make the economics on private market timberland acquisitions penciled in again, just given that disconnect between private market values and where the stocks have been. That said, I think the PotlatchDeltic mill system continues to have some pretty high return investment opportunities within it. I don't think that we're going to specify a different go forward capital allocation strategy here. It certainly gives us another, you know, arrow in the quiver, so to speak, as we think about deploying capital allocation strategy to maximize value per share. Yeah, when you think about it, Mark, you know, this is Eric. The one thing that PotlatchDeltic is getting out of this transaction is we're partnering with somebody that's got a super strong balance sheet. It's the extent that we do have those options to grow wood products and it may not be growing wood products volume, it could be investments to improve wood products cost structure. We're partnering with somebody who can really help us implement that kind of a strategy. You know, again, it really is a win win when you think about it. Okay, great. Please just tell me, asked and answered if that's been the case. I was late getting in. In terms of the synergies, can you give kind of more specifics of how you get them and the timing of how they'll come through? Yeah. Mark, this is Wayne. In our prepared remarks, we did mention, you know, $40 million of annual cost synergies, which really will primarily be driven by corporate and operating overhead savings. There are several functions and costs associated with being a public company that can be consolidated and better leveraged through our increased scale. We have a detailed plan we'll execute. We did a bottoms up analysis, and over time we think we'll even identify additional benefits based on our previous experience with previous deals. From a timing perspective, we think at least half of it will be achieved in the first year with the remaining in the second year. Super. Thank you very much. Your next question comes from the line of Ketan Mamtora with BMO Capital Markets. Please go ahead. Good morning and congrats on the deal. Maybe a question for both. We've seen this kind of discount to NAV at pretty wide level for an extended period of time. From your respective perspective, can you talk about sort of what will help to drive or narrow that discount with this combination? I mean, we've seen even larger peer trading at a significant discount. I'm just curious, as you think about the potential benefit of this, how do you think about kind of the discount to buy private market Timberlanders, how does that narrow? Yeah, you know, Ketan, this is Eric. I'll give my remarks and then Mark can chime in. From my perspective, public market investors are very focused on the near term. For our businesses, we're really tied to the housing cycle. At the end of the day it's all about saw log prices and to some extent lumber prices. As long as we're tied to that housing cycle, public company investors look at us and they just frown with such a relatively weak housing backdrop. That being said, I do think the tide is turning. The 10-year Treasury was at 4% this morning. There's talk of it going down into the threes, and as we can get lower mortgage rates and lower finance costs for multifamily developers, I think demand will come back. It's not a question of if, but when. When I think the housing story improves, I think investors will come back into housing and we're a great deep discount way to play the housing cycle. Yeah. Keith, I just added that, you know, both of us have been pretty clear that we believe our stock prices are trading at a pretty wide discount to intrinsic value. That said, because we're both trading at a significant discount, we felt that the relative valuation, you know, ultimately worked for this deal to come together. Look, we think that this transaction is going to give the combined company a lot of flexibility to be nimble and opportunistic around capital allocation. In addition, as we said, you know, with $40 million of estimated synergies, we think this alone will translate to a pretty material value uplift for the combined company. Of course, there are also benefits here in terms of a larger scale, which will translate to better trading liquidity, and we think an improved cost of capital over time. Again, we really see a lot of value creation potential in this merger, and we believe that the combined company will be better positioned to close that NAV gap moving forward. Understood. That's helpful perspective. One more. Clearly, the balance sheet coming out of this for the combined company will be really strong. As you think about capital allocation, can you talk about how you would think about whether it is growing in the wood products side or on the timberland side or repurchasing stock? Can you just lay it out for us in terms of where you think is the most relative attractiveness at this point? Hey Kate, this is Mark. You know, look, our view around capital allocation has always been to be nimble and opportunistic with a view towards building long-term value per share. We don't go into any period of time with prescriptive capital allocation targets. We really try to play the hand that we're dealt. I think PotlatchDeltic has really employed a capital allocation strategy with a very similar mindset. We're very much aligned on that front. We're going to continue to execute our strategy on a go-forward basis much as we have in the past. We're going to look at the opportunities we have available, look at what we think is the best opportunity for our shareholders to deploy capital, and we're going to look to execute on that. That could be investments at wood products mills, that could be timberland acquisitions. Right now, obviously the buyback opportunity is still quite compelling, but the pro forma company will still have a quite strong balance sheet, about 2.5x pro forma net debt to EBITDA. We'll still have a fair amount of capital allocation capacity. As we realize synergies and grow the cash flow over time, that capital allocation capacity will just expand. Got it. Now that's helpful. I'll turn it over. Good luck. Thanks. You have a follow up question from Mark Weintraub with Seaport Research Partners. Please go ahead. Great, thank you. Mark, you just mentioned there how at the end of the transaction about 2.5x net debt to EBITDA. How should we think about longer term target levels for financial leverage? Obviously, you know, there's volatility in the earnings stream. I don't know if it's necessarily just net debt to EBITDA, but what are kind of the longer term debt levels that you think are optimal? Yeah, we laid out a high-level financial strategy in the IR deck that was published this morning. I think, look, our mindset is relatively similar as it was coming into this. We had indicated a new leverage target of less than or equal to 3x net debt to EBITDA alongside our asset disposition and capital structure realignment plan. Obviously, we're going to be combining the boards. We'll be kind of reassessing overall strategy and financial policy. I think we're both very committed to a conservative balance sheet as well as investment grade credit ratings. Obviously, the introduction of the wood products manufacturing business will introduce some more volatility into that kind of over-the-cycle earnings stream. Our general thinking is that we would still look to maintain a very conservative leverage profile, factoring in having more of an over-the-cycle view of that lumber contribution. Super. I believe Potlatch in the past has shared a view of kind of the over the cycle lumber contribution. Is it fair to say that that's sort of the base understanding that you'll be using as you think that? Through. Yeah, Mark, you know, we are. Our view is over the cycle lumber margins average $100 per 1,000. We're obviously nowhere near that level right now. I do think the cycle is turning with these duties, with these tariffs, now with interest rates coming down and improved housing backdrop. I saw the Senate put forward some bill this morning to improve housing conditions in the U.S. I do think there's going to be a turn here and eventually we'll get prices back up and we'll get margins back up to $100 per 1,000 over the cycle. Great. One last one for me. I assume the merging of these companies has no implications for the pricing structure contracts that you have out in Idaho for saw timber, is that correct? Yeah, no, that won't be affected by this. Okay, super. Thanks so much. That concludes our question and answer session. I will now turn the call back over to Colin Mings for closing remarks. Thank you. I'd like to thank everybody for joining us this morning. Have a good rest of the day. Ladies and gentlemen, this concludes today's call. Thank you all for joining. You may now disconnect.