In portfolio level timberland markets, most transactions are conducted privately, effectively limiting publicly available data and making fair market valuations challenging. As demand for the timberland asset has grown, so has the need for competent performance valuation of the asset. Timberland portfolios themselves have grown more complex as managers have sought to incorporate non-timber revenue generating strategies in addition to traditional harvest activities including conservation easements, mitigation banks, higher and better use development, mineral income, and the monetization of carbon credits. When a portfolio includes these types of investments, third party experts with specific experience and knowledge are needed to perform valuations for financial, investor or lender reporting.
As a leading provider of portfolio level timberland valuation, Legacy Appraisal Services is uniquely qualified to provide the combination of rigorous fundamental timberland analysis and technical, market-based perspective that regulators, auditors and investors demand. Our firm has the experience and ability to execute these types of valuations accurately by relying on our experience, contacts and large transactional level database to support our conclusions. As a market leader, we bring industry expertise and local market knowledge to our clients. We perform reviews and valuations for a broad group of clients, including financial institutions, timberland investment managers, government pension funds, private equity investors, and individual property owners. As a third-party assessor, we add an independent viewpoint as well as an extra layer of support and transparency with robust valuation policies that conform to best practices. We deliver well-supported conclusions and reports that comply with the relevant reporting standards.
Rigorous due diligence when acquiring or disposing of a portfolio level timberland asset is mandatory in meeting investor rate of return expectations. Each deal will have its own complexities. The Legacy Appraisal team has analyzed millions of acres in the timberland investment space and is intimately familiar with the complex nature of these transactions. Our methodology allows us to work with clients effectively identifying a wide range of geographical, financial and operational issues and objectively delivering our findings, including risks and opportunities that bring clarity to any given transaction. Our expert analysis will help mitigate risk, clarify potential return on investment, and safeguard the integrity of the deal. Throughout the process, we are in direct contact with the client presenting a myriad of possible results and sensitivities with regards to harvest scheduling, cost/revenue inputs, silviculture, pricing forecasts and possible value-added opportunities.
In many cases, part of the diverse structure of large scale timberland investment includes different ownership rights and encumbrances. Legacy Appraisal Services routinely deals with these differences on almost every transaction we are involved in including conservation easements, mitigation banks, lease fee and leasehold timber and land ownership. We have the experience and ability to analyze and develop financial metrics as to how different ownership structures within the overall timberland portfolio will affect the overall value of the investment. By providing conclusions backed by sound data and market knowledge, clients are able to make confident buy/sell decisions supported by data driven solutions.
Families are often faced with a wide array of challenges when timberland is part of the family estate. Heirs may not live close by or may have different future ownership objectives. Legacy Appraisal Services works directly with the clients’ succession team of lawyers and accountants to perform market valuations of the undivided (fractional) ownership interests of the family timberland asset. Our experience includes valuations for federal gift tax purposes, estate tax compliance and planning purposes, intergenerational wealth transfer and family partitioning purposes.