CatchMark and Georgia-Pacific Triple T Joint Venture Amends Timber Supply Agreement


ATLANTA, June 24, 2020 / PRNewswire / – CatchMark Timber Trust, Inc. (NYSE: CTT) today announced that its Triple T joint venture has amended its timber supply agreement with Georgia-Pacific WFS LLC (Georgia-Pacific) aimed at establishing market-based prices on timber sales. CatchMark invests in 1.1 million premium acres East Texas Timberlands through Triple T and acts as the company’s general partner on behalf of a consortium of institutional investors.

Under the amended supply agreement, Triple T will also be able to increase reimbursement for extended haul distances, sell timber to other third parties, and expand its ability to sell large plots of timber. to third party buyers. The supply agreement between Triple T and Georgia– Pacific has also been extended for two years from 2029 to 2031, with harvest volume obligations optimized to improve and preserve long-term asset value. For these amendments to the agreement, Triple T paid Georgia-Peaceful $ 145 million.

Chairman and CEO of CatchMark Brian davis said: “We expect this agreement with Georgia-Pacific will result in increased returns for all Triple T investors, including CatchMark, over the life of the joint venture. We expect these changes to increase cash flow from timber sales at market prices based on the usual pricing mechanisms, improve property value and market value over the long term, and significantly improve Triple’s capacity. T to make timely sales of forest land as well as to recapitalize our investment.

“Georgia-Pacific Building Products appreciates the partnership we have with Triple T,” said Tim chatlos, spokesperson for Georgia-Peaceful. “This agreement creates value for our two companies and allows us to continue our partnership in the future.”

John rasor, President of Triple T, said: “Georgia-Pacific has been and continues to be an integral part of Triple T’s success and we appreciate the way they worked with us to achieve this mutually beneficial agreement. “

Rasor added, “Our operations can now harness the full potential of Triple T’s core forestry operations to optimize future cash flow and value. In particular, a rapidly improving inventory profile will result in better harvest opportunities now with greater revenue growth.

In connection with the Georgia-Pacific Agreement, CatchMark also said it has amended the Triple T joint venture agreement with its institutional partners to increase its asset management fees for the next two years, reflecting the impact of the agreement. Georgia-Pacific payment on forestry investment. This amendment immediately generates CAD for CatchMark.

In july 2018, CatchMark invested $ 200 million by forming Triple T, which acquired the East Texas forests, subject to Georgia-Pacific Supply Agreement, for approximately $ 1.39 billion. Its Triple T partners include BTG Pactual Timberland Investment Group, Highland Capital Management, Medley Management Inc. and British Columbia Investment Management Corporation.

The Triple T joint venture completed the acquisition, with the intention of amending the Georgia-Pacific supply agreement and maximize asset value. Forests have a rapidly improving inventory profile and an above-average site index. The initial transaction has met all operating criteria to date.

Perella Weinberg Partners LP advised Triple T on the transaction.

About CatchMark Timber Trust, Inc.

CatchMark (NYSE: CTT) seeks to generate consistent and growing cash flow per share through disciplined acquisitions and superior management of premier woodlands located in high-demand US factory markets. By focusing on maximizing cash flow throughout economic cycles, the company strategically exploits its high-quality forests to produce sustainable revenue growth and takes advantage of nearby factory markets, which provide a reliable outlet for them. merchant stocks. Based at Atlanta and focused exclusively on woodland ownership and management, CatchMark began operations in 2007 and owns interests in 1.5 million acres * of woodland located Alabama, Florida, Georgia, North Carolina, Oregon, Caroline from the south, Tennessee and Texas. For more information visit

* Dated March 31, 2020

Forward-looking statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “anticipate”, “estimate”, “believe”. “,” Continue, “or other similar words. However, the absence of such words or expressions or the like does not mean that a statement is not forward-looking. Forward-looking statements are not guarantees of performance and are based on certain assumptions, discuss future expectations, describe plans and strategies, contain projections of operating results or financial condition or state other forward-looking information. Forward-looking statements contained in this press release include, without reference to ” limit, statements about the ability to obtain market-based pricing and the expected effect of other contract changes, the potential to achieve increased returns for all s Triple T investors, improved property value, market value and cash flow, the ability to make opportunistic sales of woodlots to recapitalize investment, increased CAD and improved inventory profile . Risks and uncertainties that could cause our actual results to differ from these forward-looking statements include, without limitation, that (i) Triple T may not generate the harvest volumes from its forests that we currently expect; (ii) the demand for Triple T timber may not increase at the rate we currently anticipate or not at all due to changes in general economic and trade conditions in the geographic areas where forests are found, including due to the COVID-19 pandemic and the measures taken to respond to it; (iii) a downturn in the real estate market, including a drop in demand and valuations, could negatively impact Triple T’s ability to generate income and cash flow from the sale of more or less properties. used; (iv) timber prices could fall, which would have a negative impact on Triple T’s revenues; (v) Triple T may not be able to make significant transfers of forest land at attractive prices to us or not at all; (vi) Triple T may not be able to access external sources of capital at attractive rates or not at all; (ix) potential increases in interest rates could have a negative impact on Triple T’s business; (vii) we may not be successful in effectively managing the Triple T joint venture and the anticipated benefits of the joint venture may not be realized, including that our asset management fees may be deferred or decreased, we may not earn an incentive promotion and our investment in the joint venture may lose value; and (ix) the factors described in Part I, Section 1A. Risk factors in our annual report on Form 10-K for the year ended December 31, 2019, Part II, Point 1A. Risk factors in our quarterly report on Form 10-Q for the quarter ended March 31, 2020, and our other documents filed with the Securities and Exchange Commission. Therefore, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. We assume no obligation to update our forward-looking statements, except as required by law.

SOURCE CatchMark Timber Trust, Inc.

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