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We operate within our restructure so a highly efficient structure and we’ve got a great balance sheet. You can see that in our investment grade Baa.[Inaudible] portfolio. And of what we have in there, of course, is our core Timberland Forest Resources and we look to continue to grow that core Timberland business. We look for further acquisitions out there and I’ll show you a little bit of a track record that we have in that regard. And of course, with that we say, okay, that’s our core, Timerland is our main Forest Resources engine and we’re constantly using silvicultural practices. We get a great RDT to say, how do you get more productivity out of that engine and we’re constantly redefining that to grow our Timberland [inaudible]. Now, as we mentioned, we have 2.7 million acres and anytime you have 2.7 million acres of Timberland, you’re automatically in the real estate business. So we’ve got a real estate team and they’re looking at our real estate timberland and mapping it out and saying, what is worth more to the company, to our shareholders than just this timber land? They look at that and say what if it had some higher, better use potential. So they identified that and we worked to monetize those parcels out there and capture that value. We also look at parcels out there that may be of non-strategic value and again, we remove those out of the portfolio just as you take our lower-end stock out of the portfolio. And then we also work on titling land, positioning timber land for some future use by the government entitlement process and we work hard to do that and position it for the future. And then our third business is our Performance Fibers business. We’ve got a very unique business with a world leader of highly purified cellulose fibers and I’ll show you what that means just shortly.
Our strategy there is to maintain that global leadership and we do that with a lot of effort towards our differentiation of our product, very technical, very high value and also we put a lot of investment and time into improving our reliability and driving our cost down. And again, we’ll take you through that. That business has been sold out for about six years now so we have an expansion currently underway, a $300 million-plus expansion in Jesup, Georgia at the site of one of our facilities, which will allow us to continue that leadership going forward.So let’s start and talk a little bit about Forest Resources. Again ,just in general, Timberland is a very attractive asset class. It’s historically outpaced inflation. We continue to see a strong interest in it. I don’t know if you’re familiar, but recently there’s been an acquisition of forest capital partners, Timberland assets over $2 billion. I don’t know the exact amount, but this demonstrates to use that there’s continued interest in moving into this asset class. We like it because it’s very flexible, flexible in how you harvest it, how you grow it, different markets, so it’s just a lot of flexibility when we look at our cash flow and our operating income. And unlike most natural resources, it continues to grow even if you decide you’re not going to harvest it at that point in time, you’re not going to monetize it, right, so it grows naturally in the forest, 4 to 6 to 7% a year just by keeping it there and waiting for the right time to move it out to market. Of course, the Timberland part of the business is what is classified as a REIT, so it’s very tax efficient and you can see the numbers there in terms of sales and EBITDA over $100 million in the last 12 months. Read the rest of this transcript for free on seekingalpha.com