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Pre-conference workshop: Tuesday, June 24, 2008
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| UNDERSTANDING BEST PRACTICES FOR GLOBAL TIMBER VALUATION IN DIVERSIFIED TIMBER PORTFOLIOS |
With the expansion of timber portfolios from US assets to rapidly encompassing emerging and developed markets, the valuation of timber has become increasingly complex. The new variables that each market presents to evaluators consultants, portfolio managers, and timber managers, has added to the difficulty of arriving at accurate values for them and their clients holdings.
This workshop will examine successful market practices for valuation of timber assets in the US and across the globe. Set in an interactive format, the workshop will assess the unique challenges of measuring and correctly calculating the value of their entire timber portfolio. Participants will learn key strategies and implementation secrets for success in accurately valuing timber.
- Obtaining accurate valuation of assets in a rapidly changing currency environment
- Balancing different international accounting standards
- Surveying physical timber assets
- Accounting for fluctuations in desirability of different species of timber
- Incorporating alternate revenue streams into timber valuation
- Discounting asset values for political and other geographic or geopolitical risks
- Complying with US accounting standards for public and non-public organizations
Who should attend this workshop?
- Pension fund, endowment and family office managers
- Timber investment management professionals
- Investment, accounting and management consultants
- External portfolio managers
- Timber consultants
- Rural real estate and land appraisers
Jeff Wikle, MAI, Manager, TerraSource Valuation
Don MacKay, Forest Economist and Appraiser, Forest Research, LLC
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08.30 | Registration and coffee
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09.00 | Workshop begins
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10.30 | Refreshments
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12.00 | Lunch
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14.30 | Refreshments
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16.00 | Workshop ends
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Conference Day One: Wednesday, June 25, 2008
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08.00 | Registration and coffee
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09.00 | Chairperson’s address
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| MACROECONOMIC DYNAMICS OF THE FOREST PRODUCTS INDUSTRY |
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09.15 | Current economic conditions driving the North American forest products industry
- Impact of a US recession on forest product consumption patterns
- Assessing ramifications: the slide in the US dollar and US dollar decoupling on forest products
- Growth in emerging markets and their lack of correlation with US trends
- Global infrastructure and real estate investing and its impact on the timber industry
- Potential for consolidation in the forest products industry
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09.45 | Forces driving new investors towards timber related assets
- Understanding the recession proof / uncorrelated nature of timber and timber related investments
- Deconstructing the attractiveness of timber assets to pensions and endowments
- Reasons for private equity and hedge fund investors entering into the forest product market
- Benefiting from the growth in demand for timber related assets by institutional investors
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| | Sue Goodman, Portfolio Manager, APG Investments, Uganda
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10.30 | Networking and refreshments
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| EMERGING TRENDS IN TIMBER RELATED INDUSTRIES |
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11.00 | How to build a global timber portfolio
- Why global timberland at all?
- What are the return and risk characteristics to consider
- What might a global portfolio look like
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| | James McBride, Vice President of Business Development, RMK Timberland Group, United States
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11.30 | Analyzing the state of the US timber market and its factors
- Are owners abandoning High-Better-Use land development as a method for revenue generation?
- Impact of the sale of large industrial tracks of timber from integrated firms to investors
- Understanding changing rates of return from US timberland
- Dynamics of operating in a sellers’ market for investors looking to increase US timber holdings
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12.15 | Speed networking
This is the revolutionary, exciting, quick and non-pressurized way to meet fellow conference delegates and industry peers in one fifty minute session. These brief meetings are the starting point for conversation and networking throughout the conference. This is where long-lasting and profitable business relationships begin.
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13.00 | Lunch
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| RECESSION PROOF RETURNS |
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14.15 | What makes timber and forest products strong assets in a recession?
- Do current changes in the US economy impact the low correlation of returns
- How openly tradable timber (ETFs, Indexes, REITS, AIMS listed companies) affects timber assets in a recession
- Maximizing returns from timber assets during a region specific economic recession
- Historic measurements of timber returns versus other uncorrelated asset classes
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14.45 | Understanding the needs of institutional investors from timber investments
- Underlying factors driving pensions and endowments to purchase timber assets
- Asset allocation levels and the use of commingled funds to maximize purchasing power
- Are timber acquisitions real estate allocations for institutional investors?
- Identifying hedge and private equity funds that invest in timber and their fund mandates
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| | Liane Luke, Managing Director, Four Winds Capital Management, USA
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15.15 | Networking and refreshments
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| DRIVING NON-TIMBER RELATED RETURNS |
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15.45 | Roundtables: Understanding Timber Investments
Interactive roundtable discussions allow delegates to meet and discuss issues relevant to their job functions. Chose from a selection of 3 cutting edge topics.
Table 1: Working with woodland owners and family owned forests to build large timber acquisitions
Table 2: Comparing the benefits of managed and plantation forestry
Table 3: Utilizing private equity and hedge funds to access timber investments |
| | Jack Lutz, Founder, Forest Research Group, USA
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16.30 | Harnessing non-timber related revenue streams from forest assets
- Benefits of revenue generation through non-timber related activities
- Opening up recreational uses of timberland such as hunting leases
- Adding value to timber assets through mineral extraction rights in the midst of a commodities boom
- Examining the use of grazing and other non-timber related forest products to boost investments
- Understanding the revenue stream generated by carbon credits for US and international timber
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17.00 | Closing Keynote: Understanding the potential of cellulosic ethanol from wood
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| | Sarad Parekh, Vice President for Research & Development, SunEthanol Inc. , United States
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17.30 | End of day one
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Conference Day Two: Thursday, June 26, 2008
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08.00 | Welcome coffee
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09.00 | Chairperson’s address
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| NEW MARKETS, NEW PRODUCTS, NEW LOGISTICS |
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09.15 | Identifying emerging global timber and pulp and paper hotspots
- Markets that are causing global timber shortages in Europe
- Understanding the practices of firms successfully navigating these global markets
- Factors to consider before entering particular international markets
- Identifying global markets that match your firms competitive advantage and product profile
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10.00 | Roundtables: Emerging timber markets
Interactive roundtable discussions allow delegates to meet and discuss issues relevant to their job functions. Chose from a selection of 3 cutting edge topics.
Table 1: Dynamics of timber consumption and investments in China
Table 2: Investing in exotic timber assets
Scott Thornburgh, Chief Financial Officer, Galtere Global Timber Fund
Table 3: Generating certified carbon credits from hardwood forests in emerging markets: Africa and Brazil
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| | Scott Thornburgh , Chief Financial Officer, Galtere Global Timber Fund, United States
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10.45 | Networking and refreshments
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| PURSUING TIMBERLAND ACQUISITIONS |
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11.15 | Finding New Timberland in North America — The Hardwood Perspective
- Overview of the US hardwood sector
The diversity of hardwood investments in the US
Drivers of hardwood timber price trends
- Hardwood timberland deal sourcing
- Strategies for maximizing returns on hardwood investments
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| | Blake Stansell, Vice President for Investments, The Forestland Group, USA
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11.45 | Tax structures and benefits of timber investments
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12.25 | Lunch
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| GLOBAL TIMBER INVESTMENT MANAGEMENT |
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13.40 | Understanding the Brazilian timber market
- Drivers behind the explosive Brazilian timber market
- Acquiring and managing large parcels of timberland
- Investment structures and incentives conducive to global investors
- Exit strategies for international timber funds and managers
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| | Aldo De Cresci Neto, Partner, Fleury Malheiros, Gasparini, De Cresci e Nogueira de Lima Advogados
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| BUILDING PARTNERSHIPS TO FURTHER YOUR INVESTMENT |
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14.20 | Benefits of forest certification, conservation easements, and partnerships in US and global market
- Differentiating between leading forest certification structures and their application processes
- Quantifying the benefits of forest certification to the value of timber and timber products
- Outlining the benefits of utilizing conservation easements in land sales
- Employing mitigation and mitigation banking to increase returns on timber assets
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| | Kent Gilges, Managing Partner, Conservation Forestry, USA
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14.50 | Networking and refreshments
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15.10 | Leveraging relationships with international and local organizations
- Partnering with organizations to engage the local community and improve labor relations
- Utilizing the ability of partner organizations to obtain certifications, carbon and tax credits
- Lobbying to promote proactive legislation on a global scale
- Creating and joining national lobbying organization to advocate for the forest products industry
- Harnessing the legislative power of congress to promote and protect the US forest products industry
- Understanding the impact of international conventions and treatise on timber owners (Kyoto)
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| | Scott Jones, Executive Vice President, Forest Landowners Association, USA
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15.50 | Chairpersons closing remarks
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16.00 | End of conference
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