(Mark One) | |
x | Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended March 31, 2018 |
o | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from to |
Maryland | 20-3536671 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
N/A |
Large accelerated filer | o | Accelerated filer | x | |
Non-accelerated filer | o | (Do not check if a smaller reporting company) | Smaller reporting company | o |
Emerging growth company | o |
Page No. | ||||
PART I. FINANCIAL INFORMATION | ||||
Item 1. | ||||
Consolidated Balance Sheets as of March 31, 2018 (unaudited) and December 31, 2017 | ||||
Consolidated Statements of Operations for the Three Months Ended March 31, 2018 (unaudited) and 2017 (unaudited) | ||||
Consolidated Statements of Comprehensive Loss for the Three Months Ended March 31, 2018 (unaudited) and 2017 (unaudited) | ||||
Consolidated Statements of Stockholders' Equity for the Three Months Ended March 31, 2018 (unaudited) and 2017 (unaudited) | ||||
Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2018 (unaudited) and 2017 (unaudited) | ||||
Item 2. | ||||
Item 3. | ||||
Item 4. | ||||
PART II. OTHER INFORMATION | ||||
Item 1. | ||||
Item 1A. | ||||
Item 6. |
AFM | American Forestry Management, Inc. | |
AgFirst | Agfirst Farm Credit Bank | |
ASC | Accounting Standards Codification | |
ASU | Accounting Standards Update | |
CoBank | CoBank, ACB | |
Code | Internal Revenue Code of 1986, as amended | |
EBITDA | Earnings before Interest, Taxes, Depletion, and Amortization | |
FASB | Financial Accounting Standards Board | |
FCCR | Fixed Charge Coverage Ratio | |
FRC | Forest Resource Consultants, Inc. | |
GAAP | Generally Accepted Accounting Principles | |
HBU | Higher and Better Use | |
LIBOR | London Interbank Offered Rate | |
LTIP | Long-Term Incentive Plan | |
LTV | Loan-to-Value | |
MPERS | Missouri Department of Transportation & Patrol Retirement System | |
NYSE | New York Stock Exchange | |
Rabobank | Cooperatieve Centrale Raiffeisen-Boerenleenbank, B.A. | |
REIT | Real Estate Investment Trust | |
RSU | Restricted Stock Unit | |
SEC | Securities and Exchange Commission | |
TRS | Taxable REIT Subsidiary | |
TSR | Total Shareholder Return | |
U.S. | United States | |
VIE | Variable Interest Entity | |
WestRock | WestRock Company (formerly known as MeadWestvaco Corporation) |
PART I. | FINANCIAL INFORMATION |
(Unaudited) March 31, 2018 | December 31, 2017 | ||||||
Assets: | |||||||
Cash and cash equivalents | $ | 8,087 | $ | 7,805 | |||
Accounts receivable | 2,576 | 4,575 | |||||
Prepaid expenses and other assets | 10,342 | 5,436 | |||||
Deferred financing costs | 389 | 403 | |||||
Timber assets (Note 3): | |||||||
Timber and timberlands, net | 701,836 | 710,246 | |||||
Intangible lease assets, less accumulated amortization of $942 and $941 as of March 31, 2018 and December 31, 2017, respectively | 15 | 16 | |||||
Investment in unconsolidated joint venture (Note 4) | 11,311 | 11,677 | |||||
Total assets | $ | 734,556 | $ | 740,158 | |||
Liabilities: | |||||||
Accounts payable and accrued expenses | $ | 5,887 | $ | 4,721 | |||
Other liabilities | 1,919 | 2,969 | |||||
Notes payable and lines of credit, less net deferred financing costs (Note 5) | 262,765 | 330,088 | |||||
Total liabilities | 270,571 | 337,778 | |||||
Commitments and Contingencies (Note 7) | — | — | |||||
Stockholders’ Equity: | |||||||
Class A Common stock, $0.01 par value; 900,000 shares authorized; 49,129 and 43,425 shares issued and outstanding as of March 31, 2018 and December 31, 2017, respectively | 491 | 434 | |||||
Additional paid-in capital | 730,039 | 661,222 | |||||
Accumulated deficit and distributions | (270,852 | ) | (261,652 | ) | |||
Accumulated other comprehensive income | 4,307 | 2,376 | |||||
Total stockholders’ equity | 463,985 | 402,380 | |||||
Total liabilities and stockholders’ equity | $ | 734,556 | $ | 740,158 |
(Unaudited) Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Revenues: | |||||||
Timber sales | $ | 18,653 | $ | 16,492 | |||
Timberland sales | 4,252 | 5,450 | |||||
Other revenues | 1,199 | 1,183 | |||||
24,104 | 23,125 | ||||||
Expenses: | |||||||
Contract logging and hauling costs | 8,582 | 7,421 | |||||
Depletion | 7,062 | 6,038 | |||||
Cost of timberland sales | 3,147 | 3,863 | |||||
Forestry management expenses | 1,830 | 1,413 | |||||
General and administrative expenses | 2,945 | 2,478 | |||||
Land rent expense | 161 | 150 | |||||
Other operating expenses | 1,396 | 1,195 | |||||
25,123 | 22,558 | ||||||
Operating (loss) income | (1,019 | ) | 567 | ||||
Other income (expense): | |||||||
Interest income | 64 | 11 | |||||
Interest expense | (4,251 | ) | (2,556 | ) | |||
(4,187 | ) | (2,545 | ) | ||||
Net loss before unconsolidated joint venture | (5,206 | ) | (1,978 | ) | |||
Income from unconsolidated joint venture | 1,821 | — | |||||
Net loss | $ | (3,385 | ) | $ | (1,978 | ) | |
Weighted-average common shares outstanding - basic and diluted | 44,380 | 38,769 | |||||
Net loss per share - basic and diluted | $ | (0.08 | ) | $ | (0.05 | ) |
(Unaudited) Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Net loss | $ | (3,385 | ) | $ | (1,978 | ) | |
Other comprehensive income (loss): | |||||||
Market value adjustment to interest rate swaps | 1,931 | (279 | ) | ||||
Comprehensive loss | $ | (1,454 | ) | $ | (2,257 | ) |
Common Stock | Additional Paid-In Capital | Accumulated Deficit and Distributions | Accumulated Other Comprehensive Income | Total Stockholders’ Equity | ||||||||||||||||||
Shares | Amount | |||||||||||||||||||||
Balance, December 31, 2017 | 43,425 | $ | 434 | $ | 661,222 | $ | (261,652 | ) | $ | 2,376 | $ | 402,380 | ||||||||||
Common stock issued pursuant to: | ||||||||||||||||||||||
Equity Offering | 5,750 | 58 | 72,392 | 72,450 | ||||||||||||||||||
LTIP, net of forfeitures and amounts withheld for income taxes | (46 | ) | (1 | ) | (85 | ) | (86 | ) | ||||||||||||||
Stock issuance cost | (3,490 | ) | (3,490 | ) | ||||||||||||||||||
Dividends to common stockholders ($0.135 per share) | (5,815 | ) | (5,815 | ) | ||||||||||||||||||
Net loss | (3,385 | ) | (3,385 | ) | ||||||||||||||||||
Other comprehensive income | 1,931 | 1,931 | ||||||||||||||||||||
Balance, March 31, 2018 | 49,129 | $ | 491 | $ | 730,039 | $ | (270,852 | ) | $ | 4,307 | $ | 463,985 | ||||||||||
Common Stock | Additional Paid-In Capital | Accumulated Deficit and Distributions | Accumulated Other Comprehensive Income | Total Stockholders’ Equity | ||||||||||||||||||
Shares | Amount | |||||||||||||||||||||
Balance, December 31, 2016 | 38,797 | $ | 388 | $ | 605,728 | $ | (226,793 | ) | $ | 1,747 | $ | 381,070 | ||||||||||
Common stock issued pursuant to: | ||||||||||||||||||||||
LTIP, net of forfeitures and amounts withheld for income taxes | 53 | 1 | 167 | 168 | ||||||||||||||||||
Dividends to common stockholders ($0.135 per share) | (5,183 | ) | (5,183 | ) | ||||||||||||||||||
Repurchases of common shares | (97 | ) | (1 | ) | (1,035 | ) | (1,036 | ) | ||||||||||||||
Net loss | (1,978 | ) | (1,978 | ) | ||||||||||||||||||
Other comprehensive loss | (279 | ) | (279 | ) | ||||||||||||||||||
Balance, March 31, 2017 | 38,753 | $ | 388 | $ | 604,860 | $ | (233,954 | ) | $ | 1,468 | $ | 372,762 |
(Unaudited) Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Cash Flows from Operating Activities: | |||||||
Net loss | $ | (3,385 | ) | $ | (1,978 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Depletion | 7,062 | 6,038 | |||||
Basis of timberland sold, lease terminations and other | 2,856 | 3,536 | |||||
Stock-based compensation expense | 765 | 420 | |||||
Noncash interest expense | 1,671 | 262 | |||||
Other amortization | 54 | 42 | |||||
Income from unconsolidated joint venture | (1,821 | ) | — | ||||
Operating distribution from unconsolidated joint venture | 2,188 | — | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable | 1,330 | 1,483 | |||||
Prepaid expenses and other assets | 76 | (398 | ) | ||||
Accounts payable and accrued expenses | 1,284 | (193 | ) | ||||
Other liabilities | (1,133 | ) | (906 | ) | |||
Net cash provided by operating activities | 10,947 | 8,306 | |||||
Cash Flows from Investing Activities: | |||||||
Timberland acquisitions, earnest money paid and other | (2,319 | ) | (979 | ) | |||
Capital expenditures (excluding timberland acquisitions) | (1,545 | ) | (2,195 | ) | |||
Net cash used in investing activities | (3,864 | ) | (3,174 | ) | |||
Cash Flows from Financing Activities: | |||||||
Repayments of note payable | (69,000 | ) | — | ||||
Financing costs paid | (95 | ) | (30 | ) | |||
Issuance of common stock | 72,450 | — | |||||
Other offering costs paid | (3,490 | ) | — | ||||
Dividends paid to common stockholders | (5,815 | ) | (5,183 | ) | |||
Repurchase of common shares under the share repurchase program | — | (1,036 | ) | ||||
Repurchase of common shares for minimum tax withholdings | (851 | ) | (252 | ) | |||
Net cash used in financing activities | (6,801 | ) | (6,501 | ) | |||
Net increase (decrease) in cash and cash equivalents | 282 | (1,369 | ) | ||||
Cash and cash equivalents, beginning of period | 7,805 | 9,108 | |||||
Cash and cash equivalents, end of period | $ | 8,087 | $ | 7,739 |
1. | Organization |
3. | Timber Assets |
As of March 31, 2018 | |||||||||||
(in thousands) | Gross | Accumulated Depletion or Amortization | Net | ||||||||
Timber | $ | 303,939 | $ | 7,062 | $ | 296,877 | |||||
Timberlands | 404,201 | — | 404,201 | ||||||||
Mainline roads | 1,400 | 642 | 758 | ||||||||
Timber and timberlands | $ | 709,540 | $ | 7,704 | $ | 701,836 |
As of December 31, 2017 | |||||||||||
(in thousands) | Gross | Accumulated Depletion or Amortization | Net | ||||||||
Timber | $ | 332,253 | $ | 29,035 | $ | 303,218 | |||||
Timberlands | 406,284 | — | 406,284 | ||||||||
Mainline roads | 1,349 | 604 | 744 | ||||||||
Timber and timberlands | $ | 739,886 | $ | 29,639 | $ | 710,246 |
Three Months Ended March 31, | ||||||
Acres Sold In: | 2018 | 2017 | ||||
Alabama | — | 1,700 | ||||
Georgia | 1,400 | 700 | ||||
South Carolina | 600 | — | ||||
Texas | 100 | — | ||||
Louisiana | 100 | 400 | ||||
Total | 2,200 | 2,800 |
Acres by state as of March 31, 2018 | Fee | Lease | Total | ||||||
Alabama | 74,400 | 5,600 | 80,000 | ||||||
Florida | 2,000 | — | 2,000 | ||||||
Georgia | 262,200 | 25,300 | 287,500 | ||||||
Louisiana | 20,800 | — | 20,800 | ||||||
North Carolina | 1,600 | — | 1,600 | ||||||
South Carolina | 80,400 | — | 80,400 | ||||||
Tennessee | 300 | — | 300 | ||||||
Texas | 35,500 | — | 35,500 | ||||||
Total: | 477,200 | 30,900 | 508,100 |
4. | Unconsolidated Joint Venture |
March 31, 2018 | December 31, 2017 | ||||||
Dawsonville Bluffs Joint Venture: | |||||||
Total Assets | $ | 23,204 | $ | 24,014 | |||
Total Liabilities | $ | 583 | $ | 660 | |||
Total Equity | $ | 22,621 | $ | 23,354 | |||
CatchMark Timber Trust: | |||||||
Carrying Value of Investment | $ | 11,311 | $ | 11,677 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Dawsonville Bluffs Joint Venture: | |||||||
Total Revenues | $ | 10,793 | $ | — | |||
Net Income | $ | 3,642 | $ | — | |||
CatchMark Timber Trust: | |||||||
Equity Share of Net Income | $ | 1,821 | $ | — |
Outstanding Balance as of | |||||||||||||
Credit Facility | Maturity Date | Interest Rate | Current Interest Rate (1) | March 31, 2018 | December 31, 2017 | ||||||||
Term Loan A-1 | 12/23/2024 | LIBOR + 1.75% | 3.61% | $ | 100,000 | $ | 100,000 | ||||||
Term Loan A-2 | 12/1/2026 | LIBOR + 1.90% | 3.78% | 100,000 | 118,809 | ||||||||
Term Loan A-3 | 12/1/2027 | LIBOR + 2.00% | 3.88% | 68,619 | 118,810 | ||||||||
Total Principal Balance | $ | 268,619 | $ | 337,619 | |||||||||
Less: Net Unamortized Deferred Financing Costs | $ | (5,854 | ) | $ | (7,531 | ) | |||||||
Total | $ | 262,765 | $ | 330,088 |
(1) | Represents weighted-average interest rate as of March 31, 2018. The weighted-average interest rate excludes the impact of the interest rate swaps (see Note 6 - Interest Rate Swaps), amortization of deferred financing costs, unused commitment fees, and estimated patronage refunds. |
• | a $35.0 million five-year revolving credit facility (the “2017 Revolving Credit Facility”); |
• | a $265.0 million seven-year multi-draw term credit facility (the “2017 Multi-Draw Term Facility”); |
• | a continuation of a $100.0 million ten-year term loan (the “Term Loan A-1”), all of which was outstanding under the previous credit agreement; |
• | a $118.8 million nine-year term loan (the “Term Loan A-2”); and |
• | a $118.8 million ten-year term loan (the “Term Loan A-3”, together with the Term Loan A-1 and Term Loan A-2, the “2017 Term Loan Facilities”). |
• | limits the LTV ratio to (i) 50% at any time prior to the last day of fiscal quarter corresponding to the fourth anniversary of the effective date and (ii) 45% at any time thereafter; |
• | requires that we maintain a FCCR of not less than 1.05:1.00; and |
• | requires maintenance of a minimum liquidity balance of no less than $25.0 million at any time; and |
• | limits the aggregated capital expenditures not exceeding 1% of the value of the timberlands during any fiscal year. |
(in thousands) | ||||||||||||
Interest Rate Swap | Effective Date | Maturity Date | Pay Rate | Receive Rate | Notional Amount | |||||||
2014 Rabobank Swap | 12/23/2014 | 12/23/2024 | 2.395% | one-month LIBOR | $ | 35,000 | ||||||
2016 Rabobank Swap | 8/23/2016 | 12/23/2024 | 1.280% | one-month LIBOR | $ | 45,000 | ||||||
2017 Rabobank Swap | 3/23/2017 | 3/23/2024 | 2.330% | one-month LIBOR | $ | 20,000 | ||||||
2017 Rabobank Swap | 3/28/2017 | 3/28/2020 | 1.800% | one-month LIBOR | $ | 30,000 | ||||||
2017 Rabobank Swap | 3/28/2017 | 11/28/2021 | 2.045% | one-month LIBOR | $ | 20,000 | ||||||
2018 Rabobank Swap | 2/28/2018 | 11/28/2022 | 2.703% | one-month LIBOR | $ | 30,000 | ||||||
2018 Rabobank Swap | 2/28/2018 | 11/28/2026 | 2.884% | one-month LIBOR | $ | 20,000 | ||||||
$ | 200,000 |
(in thousands) | ||||||||||
Estimated Fair Value as of | ||||||||||
Instrument Type | Balance Sheet Classification | March 31, 2018 | December 31, 2017 | |||||||
Derivatives designated as hedging instruments: | ||||||||||
Interest rate swaps | Prepaid expenses and other assets | $ | 4,947 | $ | 2,935 | |||||
Interest rate swaps | Other liabilities | $ | (640 | ) | $ | (559 | ) |
Number of Underlying Shares | Weighted-Average Grant Date Fair Value | |||||
Unvested at December 31, 2017 | 3,356 | $ | 11.92 | |||
Granted | — | |||||
Vested | (3,356 | ) | $ | 11.92 | ||
Forfeited | — | $ | — | |||
Unvested at March 31, 2018 | — | $ | — |
Number of Underlying Shares | Weighted-Average Grant Date Fair Value | |||||
Unvested at December 31, 2017 | 278,633 | $ | 11.05 | |||
Granted | 73,000 | $ | 12.97 | |||
Vested | (83,043 | ) | $ | 11.33 | ||
Forfeited | — | $ | — | |||
Unvested at March 31, 2018 | 268,590 | $ | 11.49 |
(in thousands) | Three Months Ended March 31, | |||||||
Stock-based Compensation Expense classified as: | 2018 | 2017 | ||||||
General and administrative expenses | $ | 516 | $ | 326 | ||||
Forestry management expenses | 249 | 94 | ||||||
Total | $ | 765 | $ | 420 |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
As of March 31, 2018 | |||||||||
Acres Located In: | Fee | Lease | Total | ||||||
Alabama | 74,400 | 5,600 | 80,000 | ||||||
Florida | 2,000 | — | 2,000 | ||||||
Georgia | 262,200 | 25,300 | 287,500 | ||||||
Louisiana | 20,800 | — | 20,800 | ||||||
North Carolina | 1,600 | — | 1,600 | ||||||
South Carolina | 80,400 | — | 80,400 | ||||||
Tennessee | 300 | — | 300 | ||||||
Texas | 35,500 | — | 35,500 | ||||||
Total: | 477,200 | 30,900 | 508,100 |
Tons (in millions) | ||||||
Merchantable timber inventory: (1) | Fee | Lease | Total | |||
Pulpwood | 10.0 | 0.6 | 10.6 | |||
Sawtimber (2) | 9.6 | 0.4 | 10.0 | |||
Total | 19.6 | 1.0 | 20.6 |
(1) | Merchantable timber inventory does not include current year growth, which should approximate current year harvest volumes (see Results of Operations below for information on current year harvest volume). |
• | a $35.0 million five-year revolving credit facility (the “2017 Revolving Credit Facility”); |
• | a $265.0 million seven-year multi-draw term credit facility (the “2017 Multi-Draw Term Facility”); |
• | a continuation of a $100.0 million ten-year term loan (the “Term Loan A-1”), all of which was outstanding |
• | a $118.8 million nine-year term loan (the “Term Loan A-2”); and |
• | a $118.8 million ten-year term loan (the “Term Loan A-3”, together with the Term Loan A-1 and Term |
(dollars in thousands) | ||||||||||||||||||
Facility Name | Maturity Date | Interest Rate(1) | Unused Commitment Fee | Total Availability | Outstanding Balance | Remaining Availability | ||||||||||||
2017 Revolving Credit Facility | 12/1/2022 | LIBOR + 1.70% | 0.20% | $ | 35,000 | $ | — | $ | 35,000 | |||||||||
2017 Multi-Draw Term Facility | 12/1/2024 | LIBOR + 1.70% | 0.20% | 265,000 | — | 265,000 | ||||||||||||
Term Loan A-1 | 12/23/2024 | LIBOR + 1.75% | N/A | 100,000 | 100,000 | — | ||||||||||||
Term Loan A-2 | 12/1/2026 | LIBOR + 1.90% | N/A | 100,000 | 100,000 | — | ||||||||||||
Term Loan A-3 | 12/1/2027 | LIBOR + 2.00% | N/A | 68,619 | 68,619 | — | ||||||||||||
Total | $ | 568,619 | $ | 268,619 | $ | 300,000 |
(1) | The applicable LIBOR margin on the 2017 Revolving Credit Facility and the 2017 Multi-Draw Term Facility ranges from 1.50% to 2.20%, depending on the LTV ratio. |
• | limits the LTV ratio to (i) 50% at any time prior to the last day of fiscal quarter corresponding to the fourth anniversary of the effective date and (ii) 45% at any time thereafter; |
• | requires that we maintain a FCCR of not less than 1.05:1.00; and |
• | requires maintenance of a minimum liquidity balance of no less than $25.0 million at any time; and |
• | limits the aggregated capital expenditures not exceeding 1% of the value of the timberlands during any fiscal year. |
Payments Due by Period (in thousands) | ||||||||||||||||||||
Contractual Obligations | Total | 2018 | 2019-2020 | 2021-2022 | Thereafter | |||||||||||||||
Debt obligations (1) | $ | 268,619 | $ | — | $ | — | $ | — | $ | 268,619 | ||||||||||
Estimated interest on debt obligations (1) (2) | 85,968 | 7,926 | 21,070 | 21,036 | 35,936 | |||||||||||||||
Operating lease obligations | 3,011 | 642 | 1,443 | 926 | — | |||||||||||||||
Other liabilities (3) | 681 | 134 | 279 | 268 | — | |||||||||||||||
Total | $ | 358,279 | $ | 8,702 | $ | 22,792 | $ | 22,230 | $ | 304,555 |
(1) | Represents respective obligations under the 2017 Amended Credit Agreement as of March 31, 2018. All $268.6 million was outstanding under the 2017 Term Loan Facilities (see 2017 Amended Credit Agreement). |
(2) | Amounts include the impact of interest rate swaps. See Note 6 – Interest Rate Swaps of our accompanying consolidated financial statements for additional information. |
(3) | Represents future payments to satisfy a liability that expires in May 2022 which was assumed upon a timberland acquisition. |
Three Months Ended March 31, | Change | |||||||||
2018 | 2017 | % | ||||||||
Timber sales volume (tons) | ||||||||||
Pulpwood | 353,697 | 290,945 | 22 | % | ||||||
Sawtimber (1) | 221,088 | 220,387 | — | % | ||||||
574,785 | 511,332 | 12 | % | |||||||
Harvest mix | ||||||||||
Pulpwood | 62 | % | 57 | % | ||||||
Sawtimber (1) | 38 | % | 43 | % | ||||||
Net timber sales price (per ton) (2) | ||||||||||
Pulpwood | $ | 14 | $ | 13 | 7 | % | ||||
Sawtimber (1) | $ | 23 | $ | 24 | (3 | )% | ||||
Timberland sales | ||||||||||
Gross sales (000's) | $ | 4,252 | $ | 5,450 | ||||||
Sales volume (acres) | 2,200 | 2,800 | ||||||||
% of fee acres | ||||||||||
Sales price (per acre) | $ | 1,955 | $ | 1,930 |
(2) | Prices per ton are rounded to the nearest dollar and shown on a stumpage basis (i.e., net of contract logging and hauling costs) and, as such, the sum of these prices multiplied by the tons sold does not equal timber sales in the accompanying consolidated statements of operations for the three months ended March 31, 2018 and 2017. |
Three Months Ended March 31, 2017 | Changes attributable to: | Three Months Ended March 31, 2018 | |||||||||||||
(in thousands) | Price/Mix | Volume | |||||||||||||
Timber sales (1) | |||||||||||||||
Pulpwood | $ | 8,273 | $ | 90 | $ | 2,013 | $ | 10,376 | |||||||
Sawtimber (2) | 8,219 | 28 | 30 | 8,277 | |||||||||||
$ | 16,492 | $ | 118 | $ | 2,043 | $ | 18,653 |
(1) | Timber sales are presented on a gross basis. |
(2) | Includes chip-n-saw and sawtimber. |
• | Adjusted EBITDA does not reflect our capital expenditures, or our future requirements for capital expenditures; |
• | Adjusted EBITDA does not reflect changes in, or our interest expense or the cash requirements necessary to |
• | Although depletion is a non-cash charge, we will incur expenses to replace the timber being depleted in the |
Three Months Ended March 31, | |||||||
(in thousands) | 2018 | 2017 | |||||
Net loss | $ | (3,385 | ) | $ | (1,978 | ) | |
Add: | |||||||
Depletion | 7,062 | 6,038 | |||||
Basis of timberland sold, lease terminations and other (1) | 2,856 | 3,536 | |||||
Amortization (2) | 1,725 | 304 | |||||
Depletion, amortization, and basis of timberland and mitigation credits sold included in income from unconsolidated joint venture (3) | 3,256 | — | |||||
Stock-based compensation expense | 765 | 420 | |||||
Interest expense (2) | 2,581 | 2,294 | |||||
Other (4) | 35 | 3 | |||||
Adjusted EBITDA | $ | 14,895 | $ | 10,617 |
(1) | Includes non-cash basis of timber and timberland assets written-off related to timberland sold, terminations of timberland leases and casualty losses. |
(2) | For the purpose of the above reconciliation, amortization includes amortization of deferred financing costs, amortization of intangible lease assets, and amortization of mainline road costs, which are included in either interest expense, land rent expense, or other operating expenses in the accompanying consolidated statements of operations. |
(3) | Reflects our share of depletion, amortization, and basis of timberland and mitigation credits sold of the unconsolidated Dawsonville Bluffs Joint Venture. |
(4) | Includes certain cash expenses that management believes do not directly reflect the core business operations of our timberland portfolio on an on-going basis, including costs required to be expensed by GAAP related to acquisitions transactions, joint ventures or new business initiatives. |
Expected Maturity Date | ||||||||||||||||||||||||||||
(dollars in thousands) | 2018 | 2019 | 2020 | 2021 | 2022 | Thereafter | Total | |||||||||||||||||||||
Maturing debt: | ||||||||||||||||||||||||||||
Variable-rate debt | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 68,619 | $ | 68,619 | ||||||||||||||
Effectively fixed-rate debt | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 200,000 | $ | 200,000 | ||||||||||||||
Average interest rate: | ||||||||||||||||||||||||||||
Variable-rate debt | — | % | — | % | — | % | — | % | — | % | 3.88 | % | 3.88 | % | ||||||||||||||
Effectively fixed-rate debt | — | % | — | % | — | % | — | % | — | % | 3.92 | % | 3.92 | % |
PART II. | OTHER INFORMATION |
ITEM 1. | LEGAL PROCEEDINGS |
ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
Period | Total Number of Shares Purchased (2) | Average Price Paid per Share (2) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) | Maximum Number (Or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (1) | |||||||||||
January 1 - January 31 | 38,274 | $ | 13.21 | — | $ | 19.8 | million | ||||||||
February 1 - February 28 | 27,516 | $ | 12.53 | — | $ | 19.8 | million | ||||||||
March 1 - March 31 | — | $ | — | — | $ | 19.8 | million | ||||||||
Total | 65,790 | — |
(1) | On August 7, 2015, our Board of Directors authorized a share repurchase program under which we may repurchase up to $30 million of our outstanding common shares. |
(2) | Represents shares purchased for tax withholding purposes only. |
Exhibit Number | Description | |
3.1 | ||
3.2 | ||
3.3 | ||
3.4 | ||
3.5 | ||
3.6 | ||
31.1* | ||
31.2* | ||
32.1* | ||
101.INS* | XBRL Instance Document | |
101.SCH* | XBRL Taxonomy Extension Schema Document | |
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB* | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document | |
* Filed herewith |
CATCHMARK TIMBER TRUST, INC. (Registrant) | ||||
Date: | May 3, 2018 | By: | /s/ Brian M. Davis | |
Brian M. Davis Senior Vice President and Chief Financial Officer (Principal Financial Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of CatchMark Timber Trust, Inc. for the quarter ended March 31, 2018: |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s)and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Dated: May 3, 2018 | By: | /s/ Jerry Barag |
Jerry Barag | ||
Principal Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of CatchMark Timber Trust, Inc. for the quarter ended March 31, 2018; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Dated: May 3, 2018 | By: | /s/ Brian M. Davis |
Brian M. Davis | ||
Principal Financial Officer |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. |
/s/ Jerry Barag | |
Jerry Barag | |
Principal Executive Officer | |
May 3, 2018 | |
/s/ Brian M. Davis | |
Brian M. Davis | |
Principal Financial Officer | |
May 3, 2018 |
Document and Entity Information - shares |
3 Months Ended | |
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Mar. 31, 2018 |
Apr. 30, 2018 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | CatchMark Timber Trust, Inc. | |
Entity Central Index Key | 0001341141 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding (in shares) | 49,102,403 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Intangible lease assets, accumulated amortization | $ 942 | $ 941 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 900,000,000 | 900,000,000 |
Common stock, shares issued (in shares) | 49,129,000 | 43,425,000 |
Common stock, shares outstanding (in shares) | 49,129,000 | 43,425,000 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (3,385) | $ (1,978) |
Other comprehensive income (loss): | ||
Market value adjustment to interest rate swaps | 1,931 | (279) |
Comprehensive loss | $ (1,454) | $ (2,257) |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) (PARENTHETICAL) - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Statement of Stockholders' Equity [Abstract] | ||
Dividends to common stockholders (in dollars per share) | $ 0.135 | $ 0.135 |
Organization |
3 Months Ended |
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Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization CatchMark Timber Trust Inc. ("CatchMark Timber Trust") (NYSE: CTT) owns and operates timberlands located in the United States and has elected to be taxed as a REIT for federal income tax purposes. CatchMark Timber Trust acquires, owns, operates, manages, and disposes of timberland directly, through wholly-owned subsidiaries, or through joint ventures. CatchMark Timber Trust was incorporated in Maryland in 2005 and commenced operations in 2007. CatchMark Timber Trust conducts substantially all of its business through CatchMark Timber Operating Partnership, L.P. (“CatchMark Timber OP”), a Delaware limited partnership. CatchMark Timber Trust is the general partner of CatchMark Timber OP, possesses full legal control and authority over its operations, and owns 99.99% of its common partnership units. CatchMark LP Holder, LLC (“CatchMark LP Holder”), a wholly owned subsidiary of CatchMark Timber Trust, is the sole limited partner of CatchMark Timber OP and owns the remaining 0.01% of its common partnership units. In addition, CatchMark Timber TRS, Inc. (“CatchMark TRS”), a Delaware corporation, was formed as a wholly owned subsidiary of CatchMark Timber OP in 2006. Unless otherwise noted, references herein to CatchMark Timber Trust shall include CatchMark Timber Trust and all of its subsidiaries, including CatchMark Timber OP, and the subsidiaries of CatchMark Timber OP, including CatchMark TRS. |
Summary of Significant Accounting Policies |
3 Months Ended |
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Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The consolidated financial statements of CatchMark Timber Trust have been prepared in accordance with the rules and regulations of the SEC, including the instructions to Form 10-Q and Article 10 of Regulation S-X and do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the statements for these unaudited interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair and consistent presentation of the results for such periods. Results for these interim periods are not necessarily indicative of results for a full year. CatchMark Timber Trust’s consolidated financial statements include the accounts of any entity in which CatchMark Timber Trust or its subsidiaries owns a controlling financial interest and any limited partnership in which CatchMark Timber Trust or its subsidiaries owns a controlling general partnership interest. All intercompany balances and transactions have been eliminated in consolidation. For further information, refer to the audited financial statements and footnotes included in CatchMark Timber Trust’s Annual Report on Form 10-K for the year ended December 31, 2017. Investment in Joint Venture For joint ventures that it does not control, but exercises significant influence, CatchMark Timber Trust uses the equity method of accounting. CatchMark Timber Trust's judgment about its level of influence or control of an entity involves consideration of various factors including the form of its ownership interest; its representation in the entity's governance; its ability to participate in policy-making decisions; and the rights of other investors to participate in the decision-making process, to replace CatchMark Timber Trust as manager, and/or to liquidate the venture. Under the equity method, the investment in a joint venture is recorded at cost and adjusted for equity in earnings and cash contributions and distributions. Income or loss and cash distributions from an unconsolidated joint venture are allocated according to the provisions of the respective joint venture agreement, which may be different from its stated ownership percentage. Any difference between the carrying amount of these investments on CatchMark Timber Trust’s balance sheets and the underlying equity in net assets on the joint venture’s balance sheets is adjusted as the related underlying assets are depreciated, amortized, or sold. Distributions received from unconsolidated joint ventures are classified in the accompanying consolidated statements of cash flows using the cumulative earnings approach under which distributions received in an amount equal to cumulative equity in earnings are recognized as cash inflows from operating activities and distributions received in excess of cumulative equity in earnings represent returns of investment and therefore are classified as cash inflows from investing activities. CatchMark Timber Trust evaluates the recoverability of its investment in unconsolidated joint ventures in accordance with accounting standards for equity investments by first reviewing each investment for any indicators of impairment. If indicators are present, CatchMark Timber Trust estimates the fair value of the investment. If the carrying value of the investment is greater than the estimated fair value, management assesses whether the impairment is “temporary” or “other-than-temporary.” In making this assessment, management considers the following: (1) the length of time and the extent to which fair value has been less than cost, (2) the financial condition and near-term prospects of the entity, and (3) CatchMark Timber Trust’s intent and ability to retain its interest long enough for a recovery in market value. If management concludes that the impairment is "other than temporary," CatchMark Timber Trust reduces the investment to its estimated fair value. Reclassification Certain prior period amounts have been reclassified to conform with the current period's financial statement presentation. Within expenses on the accompanying statements of operations, basis of timber related to lease terminations, timber deed expirations and casualty losses have been reclassified from depletion or basis of timberland sold, in the amount of $19,000 and $9,000, respectively, to other operating expenses, for all periods presented. Within net cash provided by operating activities on the accompanying statements of cash flows, $19,000 has been reclassified from depletion to basis of timberland sold, lease terminations and other, for all periods presented. Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). Under this guidance, an entity is required to recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the expected consideration for those goods or services. The update requires significant additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. ASU 2014-09, as amended by ASU 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date (Topic 606), became effective for CatchMark Timber Trust on January 1, 2018. The adoption of ASU 2014-09 did not have a material effect on CatchMark Timber Trust's consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The new standard establishes a right-of-use ("ROU") model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. In January 2018, the FASB issued ASU 2018-01, Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842, to address concerns about the costs and complexity of complying with the transition provision of the new lease requirements under ASU 2016-02. The amendments in ASU 2018-01 permit an entity to elect an optional transition practical expedient to not evaluate under Topic 842 its land easements that exist or expired before its adoption of Topic 842 that were not previously accounted for as leases under Topic 840. ASU 2016-02 is effective for annual periods beginning after December 15, 2018, including interim periods within those annual periods, with early adoption permitted. A modified retrospective transition approach is required for lessees classified as capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. CatchMark Timber Trust continues to assess the impact ASU 2016-02 will have on its consolidated financial statement but does not expect the adoption of this standard will have a material effect on its consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities (Topic 815), which amends the hedge accounting recognition and presentation requirements in ASC 815, "Derivatives and Hedging." ASU 2017-12 expands an entity's ability to hedge nonfinancial and financial risk components and reduces the complexity in fair value hedges of interest rate risk. It eliminates the requirement to separately measure and report hedge ineffectiveness and requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item when the hedged item affects earnings. ASU 2017-12 is effective for public entities for fiscal years beginning after December 15, 2018, and interim periods therein. Early adoption is permitted in any interim period after issuance of ASU 2017-12. CatchMark Timber Trust adopted ASU 2017-12 on January 1, 2018 and the adoption did not have a material effect on its consolidated financial statements. |
Timber Assets |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Timber Assets | Timber Assets As of March 31, 2018 and December 31, 2017, timber and timberlands consisted of the following, respectively:
Timberland Acquisitions During the three months ended March 31, 2018 and 2017, CatchMark Timber Trust did not complete any timberland acquisitions. CatchMark Timber Trust paid $0.9 million in earnest money in the first quarter of 2017 related to the property acquired by the Dawsonville Bluffs Joint Venture. Timberland Sales During the three months ended March 31, 2018 and 2017, CatchMark Timber Trust sold approximately 2,200 and 2,800 acres of timberland for $4.3 million and $5.4 million, respectively. CatchMark Timber Trust's cost basis in the timberland sold was $2.9 million and $3.5 million, respectively. Land sale acreage by state is listed below:
Current Timberland Portfolio As of March 31, 2018, CatchMark Timber Trust directly owned interests in approximately 508,100 acres of timberlands in the U.S. South, approximately 477,200 acres of which were held in fee-simple interests and approximately 30,900 acres were held in leasehold interests. A detailed breakout of land acreage by state is listed below:
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Unconsolidated Joint Venture |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unconsolidated Joint Venture | Unconsolidated Joint Venture On April 25, 2017, CatchMark Timber Trust entered into a joint venture (the “Dawsonville Bluffs Joint Venture”) that acquired a portfolio of 11,000 acres of commercial timberlands located in North Georgia for an aggregate purchase price of $20.0 million, exclusive of transaction costs. CatchMark Timber Trust owns a 50% membership interest in the Dawsonville Bluffs Joint Venture and MPERS owns the remaining 50% interest. CatchMark Timber Trust shares substantive participation rights with MPERS, including management selection and termination, and the approval of material operating and capital decisions and, as such, uses the equity method of accounting to record its investment. Income or loss and cash distributions are allocated according to the provisions of the joint venture agreement, which are consistent with the ownership percentages for the Dawsonville Bluffs Joint Venture. Condensed balance sheet information for the Dawsonville Bluffs Joint Venture is as follows (in thousands):
Condensed income statement information for the Dawsonville Bluffs Joint Venture is as follows (in thousands):
In February 2018, CatchMark Timber Trust received a cash distribution of $2.2 million from the Dawsonville Bluffs Joint Venture. CatchMark Timber Trust serves as the sole manager of the Dawsonville Bluffs Joint Venture, whereby it manages the day-to-day operations of the business, subject to certain major decisions that require the prior consent of MPERS, in exchange for a management fee. Such management fees are included in other revenues on the accompanying consolidated statement of operations. During the three months ended March 31, 2018, CatchMark Timber Trust recognized approximately $37,000 of management fees in other revenues. |
Notes Payable and Lines of Credit |
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Notes Payable and Lines of Credit | Notes Payable and Lines of Credit As of March 31, 2018 and December 31, 2017, CatchMark Timber Trust had the following debt balances outstanding (in thousands):
2017 Amended Credit Agreement On December 1, 2017, CatchMark Timber Trust amended and restated its existing credit facilities by entering into a fifth amended and restated credit agreement (the “2017 Amended Credit Agreement”) with CoBank, AgFirst, Rabobank and certain other financial institutions. The 2017 Amended Credit Agreement increased the maximum amounts available for borrowing from $500.0 million to $637.6 million, consisting of the following:
Proceeds from Term Loan A-2 and the Term Loan A-3 were used to repay the outstanding balance of the multi-draw term facility under the previous credit agreement. During the three months ended March 31, 2018, CatchMark Timber Trust repaid $69.0 million of its outstanding debt balance on the Term Loan A-2 and A-3 with net proceeds received from the 2018 Equity Offering (See Note 8 - Stockholders' Equity for further information). CatchMark Timber Trust expensed $1.4 million of previously deferred financing costs as a result of the repayments. As of March 31, 2018, $300.0 million remained available under the 2017 Amended Credit Agreement, $265.0 million from the 2017 Multi-Draw Term Facility and $35.0 million from the 2017 Revolving Credit Facility. Borrowings under the 2017 Revolving Credit Facility may be used for general working capital, to support letters of credit, to fund cash earnest money deposits, to fund acquisitions in an amount not to exceed $5.0 million, and other general corporate purposes. The 2017 Revolving Credit Facility will bear interest at an adjustable rate equal to a base rate plus between 0.50% and 1.20% or a LIBOR rate plus between 1.50% and 2.20%, in each case depending on CatchMark Timber Trust’s LTV Ratio, and will terminate and all amounts outstanding under the facility will be due and payable on December 1, 2022. The 2017 Multi-Draw Term Facility may be used to finance timber acquisitions and associated expenses, to fund investment in joint ventures, and to reimburse payments of drafts under letters of credit. The 2017 Multi-Draw Term Facility, which is interest only until its maturity date, will bear interest at an adjustable rate equal to a base rate plus between 0.50% and 1.20% or a LIBOR rate plus between 1.50% and 2.20%, in each case depending on CatchMark Timber Trust’s LTV Ratio, and will terminate and all amounts outstanding under the facility will be due and payable on December 1, 2024. CatchMark Timber Trust will pay the lenders an unused commitment fee on the unused portion of the 2017 Revolving Credit Facility and the 2017 Multi-Draw Term Facility at an adjustable rate ranging from 0.15% to 0.35%, depending on the LTV Ratio. Under the 2017 Amended Credit Agreement, CatchMark Timber Trust continues to be eligible to receive annual patronage refunds, which are profit distributions made by CoBank and other Farm Credit System banks. The annual patronage refund is dependent on the weighted-average debt balance for the fiscal year under the 2017 Term Loan Facilities and the 2017 Multi-Draw Term Facility, as well as the financial performance of CoBank and other Farm Credit System banks. CatchMark Timber Trust’s obligations under the 2017 Amended Credit Agreement are collateralized by a first priority lien on the timberlands owned by CatchMark Timber Trust’s subsidiaries and substantially all of CatchMark Timber Trust’s subsidiaries’ other assets in which a security interest may lawfully be granted, including, without limitation, accounts, equipment, inventory, intellectual property, bank accounts and investment property. In addition, CatchMark Timber Trust's obligations under the 2017 Amended Credit Agreement are jointly and severally guaranteed by all of CatchMark Timber Trust and its subsidiaries pursuant to the terms of the 2017 Amended Credit Agreement. CatchMark Timber Trust has also agreed to guarantee certain losses caused by certain willful acts of CatchMark Timber Trust or its subsidiaries. Patronage CatchMark Timber Trust is eligible to receive annual patronage refunds from its lenders (the "Patronage Banks") under a profit-sharing program made available to borrowers of the Farm Credit System. In March 2018 and 2017, CatchMark Timber Trust received patronage refunds of $2.7 million and $2.1 million, respectively, on its eligible borrowings under the 2017 Amended Credit Agreement and the previous credit agreement. Of the total amount received, 75% was received in cash and 25% was received in equity in Patronage Banks. As of March 31, 2018 and March 31, 2017, CatchMark Timber Trust had approximately $1.5 million and $0.8 million, respectively, of equity in Patronage Banks included in prepaid expenses and other assets on the accompanying consolidated balance sheets. CatchMark Timber Trust has received a patronage refund on its eligible patronage loans for each year it has been party to its previous credit agreement, and the eligibility remains the same under the 2017 Amended Credit Agreement. Therefore, CatchMark Timber Trust accrues patronage refunds it expects to receive in 2019 based on actual patronage refunds received as a percentage of its weighted-average debt balance. For the three months ended March 31, 2018 and 2017, CatchMark Timber Trust recorded $0.7 million and $0.7 million, respectively, in expected patronage refunds against interest expense on the consolidated statements of operations. As of March 31, 2018 and December 31, 2017, approximately $0.7 million and $2.7 million of patronage refunds were included in accounts receivable on the consolidated balance sheets. Debt Covenants The 2017 Amended Credit Agreement contains, among others, the following financial covenants:
CatchMark Timber Trust was in compliance with the financial covenants of the 2017 Amended Credit Agreement as of March 31, 2018. Interest Paid and Fair Value of Outstanding Debt During the three months ended March 31, 2018 and 2017, CatchMark Timber Trust made interest payments of $2.9 million and $2.5 million, respectively, on its borrowings. Included in the interest payments for the three months ended March 31, 2018 and 2017 were unused commitment fees of $0.1 million and $0.2 million, respectively. As of March 31, 2018 and December 31, 2017, the weighted-average interest rate on these borrowings, after consideration of interest rate swaps (see Note 6 - Interest Rate Swaps), was 3.91% and 3.60%, respectively. After further consideration of expected patronage refunds, CatchMark Timber Trust's weighted-average interest rate as of March 31, 2018 and December 31, 2017 was 3.11% and 2.80%, respectively. As of March 31, 2018, the fair value of CatchMark Timber Trust's outstanding debt approximated its book value. The fair value was estimated based on discounted cash flow analysis using the current market borrowing rates for similar types of borrowing arrangements as of the measurement dates. |
Interest Rate Swaps |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Rate Swaps | Interest Rate Swaps CatchMark Timber Trust uses interest rate swaps to mitigate its exposure to changing interest rates on its variable rate debt instruments. During the first quarter of 2018, CatchMark Timber Trust entered into two separate interest rate swaps with Rabobank on $30.0 million and $20.0 million of the 2017 Term Loan Facilities (collectively, the "2018 Rabobank Swaps"). CatchMark Timber Trust had seven interest rate swaps outstanding as of March 31, 2018, with terms below:
As of March 31, 2018, CatchMark Timber Trust’s interest rate swaps effectively fixed the interest rate on $200.0 million of its $268.6 million variable rate debt at 3.92%. All seven interest rate swaps qualify for hedge accounting treatment. Fair Value and Cash Paid for Interest Under Interest Rate Swaps The following table presents information about CatchMark Timber Trust's interest rate swaps measured at fair value as of March 31, 2018 and December 31, 2017:
As of March 31, 2018, CatchMark Timber Trust estimated that approximately $61,000 will be reclassified from accumulated other comprehensive income to interest expense over the next 12 months. During the three months ended March 31, 2018 and 2017, CatchMark Timber Trust recognized a change in fair value of the interest rate swaps of approximately $1.9 million and $0.3 million as other comprehensive income and other comprehensive loss, respectively. There was no hedge ineffectiveness on the interest rate swaps required to be recognized in current earnings. During the three months ended March 31, 2018 and 2017, net payments of approximately $0.2 million and $0.2 million were made under the interest rates swaps, respectively. Interest rate swaps payments were recorded as interest expense. |
Commitments and Contingencies |
3 Months Ended |
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Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Mahrt Timber Agreements CatchMark Timber Trust is party to a fiber supply agreement and a master stumpage agreement (collectively, the “Mahrt Timber Agreements”) with a wholly owned subsidiary of WestRock. The fiber supply agreement provides that WestRock will purchase specified tonnage of timber from CatchMark TRS at specified prices per ton, depending upon the type of timber. The fiber supply agreement is subject to quarterly market pricing adjustments based on an index published by Timber Mart-South, a quarterly trade publication that reports raw forest product prices in 11 southern states. The master stumpage agreement provides that CatchMark Timber Trust will sell specified amounts of timber and make available certain portions of its timberlands to CatchMark TRS for harvesting. The initial term of the Mahrt Timber Agreements is October 9, 2007 through December 31, 2032, subject to extension and early termination provisions. The Mahrt Timber Agreements ensure a long-term source of supply of wood fiber products for WestRock in order to meet its paperboard and lumber production requirements at specified mills and provide CatchMark Timber Trust with a reliable customer for the wood products from its timberlands. Timberland Operating Agreements Pursuant to the terms of the timberland operating agreement between CatchMark Timber Trust and FRC (the "FRC Timberland Operating Agreement"), FRC manages and operates CatchMark Timber Trust's timberlands and related timber operations, including ensuring delivery of timber to WestRock in compliance with the Mahrt Timber Agreements. In consideration for rendering the services described in the timberland operating agreement, CatchMark Timber Trust pays FRC (i) a monthly management fee based on the actual acreage FRC manages, which is payable monthly in advance, and (ii) an incentive fee based on timber harvest revenues generated by the timberlands, which is payable quarterly in arrears. The FRC Timberland Operating Agreement, as amended, is effective through March 31, 2019, and is automatically extended for one-year periods unless written notice is provided by CatchMark Timber Trust or FRC to the other party at least 120 days prior to the current expiration. The FRC Timberland Operating Agreement may be terminated by either party with mutual consent or by CatchMark Timber Trust with or without cause upon providing 120 days’ prior written notice. Pursuant to the terms of the timberland operating agreement between CatchMark Timber Trust and AFM (the "AFM Timberland Operating Agreement"), AFM manages and operates CatchMark Timber Trust's timberlands and related timber operations, including ensuring delivery of timber to customers. In consideration for rendering the services described in the AFM Timberland Operating Agreement, CatchMark Timber Trust pays AFM (i) a monthly management fee based on the actual acreage AFM manages, which is payable monthly in advance, and (ii) an incentive fee based on revenues generated by the timber operations. The incentive fee is payable quarterly in arrears. The AFM Timberland Operating Agreement is effective through November 30, 2018, and is automatically extended for one-year periods unless written notice is provided by CatchMark Timber Trust or AFM to the other party at least 120 days prior to the current expiration. The AFM Timberland Operating Agreement may be terminated by either party with mutual consent or by CatchMark Timber Trust with or without cause upon providing 120 days’ prior written notice. Litigation From time to time, CatchMark Timber Trust may be a party to legal proceedings, claims, and administrative proceedings that arise in the ordinary course of its business. Management makes assumptions and estimates concerning the likelihood and amount of any reasonably possible loss relating to these matters using the latest information available. CatchMark Timber Trust records a liability for litigation if an unfavorable outcome is probable and the amount of loss or range of loss can be reasonably estimated. If an unfavorable outcome is probable and a reasonable estimate of the loss is a range, CatchMark Timber Trust accrues the best estimate within the range. If no amount within the range is a better estimate than any other amount, CatchMark Timber Trust accrues the minimum amount within the range. If an unfavorable outcome is probable but the amount of the loss cannot be reasonably estimated, CatchMark Timber Trust discloses the nature of the litigation and indicates that an estimate of the loss or range of loss cannot be made. If an unfavorable outcome is reasonably possible and the estimated loss is material, CatchMark Timber Trust discloses the nature and estimate of the possible loss of the litigation. CatchMark Timber Trust does not disclose information with respect to litigation where an unfavorable outcome is considered to be remote. CatchMark Timber Trust is not currently involved in any legal proceedings of which the outcome is reasonably likely to have a material adverse effect on the results of operations or financial condition of CatchMark Timber Trust. CatchMark Timber Trust is not aware of any legal proceedings contemplated by governmental authorities. |
Stockholders' Equity |
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Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stockholders' Equity | Stockholders' Equity Equity Offering On June 2, 2017, CatchMark Timber Trust filed a shelf registration statement on Form S-3 (File No. 333-218466) with the SEC (the "Shelf Registration Statement"), which was declared effective by the SEC on June 16, 2017. The Shelf Registration Statement provides CatchMark Timber Trust with future flexibility to offer, from time to time and in one or more offerings, debt securities, common stock, preferred stock, depositary shares, warrants, or any combination thereof. The terms of any such future offerings are established at the time of an offering. In March 2018, under the Shelf Registration Statement, CatchMark Timber Trust issued 5.75 million shares of its Class A common stock at a price of $12.60 per share (the "2018 Equity Offering"). After deducting $3.5 million in underwriting commissions and fees and other issuance costs, CatchMark Timber Trust received net proceeds of $69.0 million from the 2018 Equity Offering. CatchMark Timber Trust used the net proceeds from the 2018 Equity Offering to pay down its outstanding debt. |
Stock-based Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based Compensation | Stock-based Compensation Stock-based Compensation - Independent Directors During the three months ended March 31, 2018, CatchMark Timber Trust issued 1,239 shares to a new independent director who was appointed to CatchMark Timber Trust's board of directors on February 27, 2018. Additionally, 590 shares were issued to one independent director based on his election to receive a portion of his compensation in shares of CatchMark Timber Trust's common stock in lieu of cash. These shares vested immediately upon issuance. The per-share fair value of these grants was determined based on the closing price of CatchMark Timber Trust's common stock on the respective grant date. A rollforward of CatchMark Timber Trust's restricted stock awards previously issued to its independent directors is as follows:
Stock-based Compensation - Employees During the three months ended March 31, 2018, CatchMark Timber Trust issued 73,000 shares of service-based restricted stock grants to its non-executive employees, vesting over a four-year period. The fair value of service-based restricted stock grants was determined by the closing price of CatchMark Timber Trust's common stock on the grant date. A rollforward of CatchMark Timber Trust's unvested, service-based restricted stock awards to employees for the three months ended March 31, 2018 is as follows:
Stock-based Compensation Expense A summary of CatchMark Timber Trust's stock-based compensation expense for the three months ended March 31, 2018 and 2017 is presented below:
As of March 31, 2018, approximately $3.7 million of unrecognized compensation expense related to non-vested restricted stock and RSU's remained and will be recognized over a weighted-average period of 2.4 years. |
Subsequent Event |
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Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event Dividend Declaration On May 3, 2018, CatchMark Timber Trust declared a cash dividend of $0.135 per share for its common stockholders of record on May 31, 2017, payable on June 15, 2018. |
Summary of Significant Accounting Policies (Policies) |
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Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The consolidated financial statements of CatchMark Timber Trust have been prepared in accordance with the rules and regulations of the SEC, including the instructions to Form 10-Q and Article 10 of Regulation S-X and do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the statements for these unaudited interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair and consistent presentation of the results for such periods. Results for these interim periods are not necessarily indicative of results for a full year. CatchMark Timber Trust’s consolidated financial statements include the accounts of any entity in which CatchMark Timber Trust or its subsidiaries owns a controlling financial interest and any limited partnership in which CatchMark Timber Trust or its subsidiaries owns a controlling general partnership interest. All intercompany balances and transactions have been eliminated in consolidation. |
Investment in Joint Venture | Investment in Joint Venture For joint ventures that it does not control, but exercises significant influence, CatchMark Timber Trust uses the equity method of accounting. CatchMark Timber Trust's judgment about its level of influence or control of an entity involves consideration of various factors including the form of its ownership interest; its representation in the entity's governance; its ability to participate in policy-making decisions; and the rights of other investors to participate in the decision-making process, to replace CatchMark Timber Trust as manager, and/or to liquidate the venture. Under the equity method, the investment in a joint venture is recorded at cost and adjusted for equity in earnings and cash contributions and distributions. Income or loss and cash distributions from an unconsolidated joint venture are allocated according to the provisions of the respective joint venture agreement, which may be different from its stated ownership percentage. Any difference between the carrying amount of these investments on CatchMark Timber Trust’s balance sheets and the underlying equity in net assets on the joint venture’s balance sheets is adjusted as the related underlying assets are depreciated, amortized, or sold. Distributions received from unconsolidated joint ventures are classified in the accompanying consolidated statements of cash flows using the cumulative earnings approach under which distributions received in an amount equal to cumulative equity in earnings are recognized as cash inflows from operating activities and distributions received in excess of cumulative equity in earnings represent returns of investment and therefore are classified as cash inflows from investing activities. CatchMark Timber Trust evaluates the recoverability of its investment in unconsolidated joint ventures in accordance with accounting standards for equity investments by first reviewing each investment for any indicators of impairment. If indicators are present, CatchMark Timber Trust estimates the fair value of the investment. If the carrying value of the investment is greater than the estimated fair value, management assesses whether the impairment is “temporary” or “other-than-temporary.” In making this assessment, management considers the following: (1) the length of time and the extent to which fair value has been less than cost, (2) the financial condition and near-term prospects of the entity, and (3) CatchMark Timber Trust’s intent and ability to retain its interest long enough for a recovery in market value. If management concludes that the impairment is "other than temporary," CatchMark Timber Trust reduces the investment to its estimated fair value. |
Reclassification | Reclassification Certain prior period amounts have been reclassified to conform with the current period's financial statement presentation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). Under this guidance, an entity is required to recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the expected consideration for those goods or services. The update requires significant additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. ASU 2014-09, as amended by ASU 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date (Topic 606), became effective for CatchMark Timber Trust on January 1, 2018. The adoption of ASU 2014-09 did not have a material effect on CatchMark Timber Trust's consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The new standard establishes a right-of-use ("ROU") model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. In January 2018, the FASB issued ASU 2018-01, Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842, to address concerns about the costs and complexity of complying with the transition provision of the new lease requirements under ASU 2016-02. The amendments in ASU 2018-01 permit an entity to elect an optional transition practical expedient to not evaluate under Topic 842 its land easements that exist or expired before its adoption of Topic 842 that were not previously accounted for as leases under Topic 840. ASU 2016-02 is effective for annual periods beginning after December 15, 2018, including interim periods within those annual periods, with early adoption permitted. A modified retrospective transition approach is required for lessees classified as capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. CatchMark Timber Trust continues to assess the impact ASU 2016-02 will have on its consolidated financial statement but does not expect the adoption of this standard will have a material effect on its consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities (Topic 815), which amends the hedge accounting recognition and presentation requirements in ASC 815, "Derivatives and Hedging." ASU 2017-12 expands an entity's ability to hedge nonfinancial and financial risk components and reduces the complexity in fair value hedges of interest rate risk. It eliminates the requirement to separately measure and report hedge ineffectiveness and requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item when the hedged item affects earnings. ASU 2017-12 is effective for public entities for fiscal years beginning after December 15, 2018, and interim periods therein. Early adoption is permitted in any interim period after issuance of ASU 2017-12. CatchMark Timber Trust adopted ASU 2017-12 on January 1, 2018 and the adoption did not have a material effect on its consolidated financial statements. |
Timber Assets (Tables) |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Timber and Timberlands | A detailed breakout of land acreage by state is listed below:
As of March 31, 2018 and December 31, 2017, timber and timberlands consisted of the following, respectively:
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Schedule of Land Sale Acreage By State | Land sale acreage by state is listed below:
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Unconsolidated Joint Venture (Tables) |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedules of Financial Information, Equity Method Investment | Condensed balance sheet information for the Dawsonville Bluffs Joint Venture is as follows (in thousands):
Condensed income statement information for the Dawsonville Bluffs Joint Venture is as follows (in thousands):
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Notes Payable and Lines of Credit (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt Outstanding | As of March 31, 2018 and December 31, 2017, CatchMark Timber Trust had the following debt balances outstanding (in thousands):
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Interest Rate Swaps (Tables) |
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Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Interest Rate Swaps | CatchMark Timber Trust had seven interest rate swaps outstanding as of March 31, 2018, with terms below:
The following table presents information about CatchMark Timber Trust's interest rate swaps measured at fair value as of March 31, 2018 and December 31, 2017:
|
Stock-based Compensation (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Unvested Restricted Stock Awards Activity | A rollforward of CatchMark Timber Trust's unvested, service-based restricted stock awards to employees for the three months ended March 31, 2018 is as follows:
A rollforward of CatchMark Timber Trust's restricted stock awards previously issued to its independent directors is as follows:
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Schedule of Stock-Based Compensation Expense | A summary of CatchMark Timber Trust's stock-based compensation expense for the three months ended March 31, 2018 and 2017 is presented below:
|
Organization - Narrative (Details) |
3 Months Ended |
---|---|
Mar. 31, 2018 | |
General Partner | |
Class of Stock [Line Items] | |
Percentage of interest owned of its common partnership units | 99.99% |
Limited Partner | |
Class of Stock [Line Items] | |
Percentage of interest owned of its common partnership units | 0.01% |
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Significant Accounting Policies [Line Items] | ||
Reclassification depletion | $ (7,062) | $ (6,038) |
Reclassification basis of timberland sold | (3,147) | (3,863) |
Reclassification other operating expenses | 1,396 | 1,195 |
Reclassification basis of timberland sold, lease terminations and other | 2,856 | 3,536 |
Restatement Adjustment One | ||
Significant Accounting Policies [Line Items] | ||
Reclassification depletion | 19 | 19 |
Reclassification other operating expenses | 19 | 19 |
Reclassification basis of timberland sold, lease terminations and other | 19 | 19 |
Restatement Adjustment Two | ||
Significant Accounting Policies [Line Items] | ||
Reclassification basis of timberland sold | 9 | 9 |
Reclassification other operating expenses | $ 9 | $ 9 |
Timber Assets - Schedule of Timber and Timberlands (Details) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Gross | $ 709,540 | $ 739,886 |
Accumulated Depletion or Amortization | 7,704 | 29,639 |
Net | 701,836 | 710,246 |
Timber | ||
Property, Plant and Equipment [Line Items] | ||
Gross | 303,939 | 332,253 |
Accumulated Depletion or Amortization | 7,062 | 29,035 |
Net | 296,877 | 303,218 |
Timberlands | ||
Property, Plant and Equipment [Line Items] | ||
Gross | 404,201 | 406,284 |
Accumulated Depletion or Amortization | 0 | 0 |
Net | 404,201 | 406,284 |
Mainline roads | ||
Property, Plant and Equipment [Line Items] | ||
Gross | 1,400 | 1,349 |
Accumulated Depletion or Amortization | 642 | 604 |
Net | $ 758 | $ 744 |
Timber Assets - Narrative (Details) |
3 Months Ended | |
---|---|---|
Mar. 31, 2018
USD ($)
a
|
Mar. 31, 2017
USD ($)
a
|
|
Property, Plant and Equipment [Line Items] | ||
Payments to acquire timberland | $ 2,319,000 | $ 979,000 |
Sale of timberland, value | 4,252,000 | 5,450,000 |
Timber | ||
Property, Plant and Equipment [Line Items] | ||
Payments to acquire timberland | $ 0 | 0 |
Earnest money | $ 900,000 | |
Acres of timberland sold | a | 2,200 | 2,800 |
Sale of timberland, value | $ 4,300,000 | $ 5,400,000 |
Cost basis of timberland sold | $ 2,900,000 | $ 3,500,000 |
Area of land, owned interests | a | 508,100 | |
Area of land, held in fee-simple interests | a | 477,200 | |
Area of land, held in leasehold interests | a | 30,900 |
Timber Assets - Timberland Disposition (Details) - Timber - a |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Property, Plant and Equipment [Line Items] | ||
Timberland, acres sold | 2,200 | 2,800 |
Alabama | ||
Property, Plant and Equipment [Line Items] | ||
Timberland, acres sold | 0 | 1,700 |
Georgia | ||
Property, Plant and Equipment [Line Items] | ||
Timberland, acres sold | 1,400 | 700 |
South Carolina | ||
Property, Plant and Equipment [Line Items] | ||
Timberland, acres sold | 600 | 0 |
Texas | ||
Property, Plant and Equipment [Line Items] | ||
Timberland, acres sold | 100 | 0 |
Louisiana | ||
Property, Plant and Equipment [Line Items] | ||
Timberland, acres sold | 100 | 400 |
Timber Assets - Schedule of Timberland Portfolio (Details) - Timber |
Mar. 31, 2018
a
|
---|---|
Property, Plant and Equipment [Line Items] | |
Fee | 477,200 |
Lease | 30,900 |
Total | 508,100 |
Alabama | |
Property, Plant and Equipment [Line Items] | |
Fee | 74,400 |
Lease | 5,600 |
Total | 80,000 |
Florida | |
Property, Plant and Equipment [Line Items] | |
Fee | 2,000 |
Lease | 0 |
Total | 2,000 |
Georgia | |
Property, Plant and Equipment [Line Items] | |
Fee | 262,200 |
Lease | 25,300 |
Total | 287,500 |
Louisiana | |
Property, Plant and Equipment [Line Items] | |
Fee | 20,800 |
Lease | 0 |
Total | 20,800 |
North Carolina | |
Property, Plant and Equipment [Line Items] | |
Fee | 1,600 |
Lease | 0 |
Total | 1,600 |
South Carolina | |
Property, Plant and Equipment [Line Items] | |
Fee | 80,400 |
Lease | 0 |
Total | 80,400 |
Tennessee | |
Property, Plant and Equipment [Line Items] | |
Fee | 300 |
Lease | 0 |
Total | 300 |
Texas | |
Property, Plant and Equipment [Line Items] | |
Fee | 35,500 |
Lease | 0 |
Total | 35,500 |
Unconsolidated Joint Venture - Narrative (Details) a in Thousands, $ in Thousands |
1 Months Ended | 3 Months Ended | ||
---|---|---|---|---|
Apr. 25, 2017
USD ($)
a
|
Feb. 28, 2018
USD ($)
|
Mar. 31, 2018
USD ($)
|
Mar. 31, 2017
USD ($)
|
|
Schedule of Equity Method Investments [Line Items] | ||||
Payments to acquire timberland | $ 2,319 | $ 979 | ||
Operating distribution from unconsolidated joint venture | 2,188 | $ 0 | ||
Dawsonville Bluffs | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Area of land | a | 11 | |||
Payments to acquire timberland | $ 20,000 | |||
Ownership interest | 50.00% | |||
Operating distribution from unconsolidated joint venture | $ 2,200 | |||
Dawsonville Bluffs | Other Revenues | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Management fees recognized in other revenues | $ 37 | |||
Dawsonville Bluffs | MPERS | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership interest | 50.00% |
Unconsolidated Joint Venture - Schedule of Condensed Balance Sheet Information (Details) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
CatchMark Timber Trust: | ||
Carrying Value of Investment | $ 11,311 | $ 11,677 |
Dawsonville Bluffs | ||
Dawsonville Bluffs Joint Venture: | ||
Total Assets | 23,204 | 24,014 |
Total Liabilities | 583 | 660 |
Total Equity | 22,621 | 23,354 |
CatchMark Timber Trust: | ||
Carrying Value of Investment | $ 11,311 | $ 11,677 |
Unconsolidated Joint Venture - Schedule of Condensed Income Statement Information (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
CatchMark Timber Trust: | ||
Equity Share of Net Income | $ 1,821 | $ 0 |
Dawsonville Bluffs | ||
Dawsonville Bluffs Joint Venture: | ||
Total Revenues | 10,793 | 0 |
Net Income | 3,642 | 0 |
CatchMark Timber Trust: | ||
Equity Share of Net Income | $ 1,821 | $ 0 |
Notes Payable and Lines of Credit - 2017 Amended Credit Agreement - Narrative (Details) - USD ($) |
1 Months Ended | 3 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2017 |
Mar. 31, 2018 |
Dec. 01, 2017 |
Nov. 30, 2017 |
|
2014 Amended Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 500,000,000 | |||
2017 Amended Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 637,600,000 | |||
Remaining borrowing capacity | $ 300,000,000 | |||
2017 Amended Credit Agreement | 2017 Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | 35,000,000 | |||
Debt term | 5 years | |||
Remaining borrowing capacity | 35,000,000 | |||
Amount of credit facility allowed to be used for timberland acquisitions (not to exceed) | $ 5,000,000.0 | |||
2017 Amended Credit Agreement | 2017 Revolving Credit Facility | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Description of variable rate basis | base rate | |||
2017 Amended Credit Agreement | 2017 Revolving Credit Facility | Base Rate | Minimum | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.50% | |||
2017 Amended Credit Agreement | 2017 Revolving Credit Facility | Base Rate | Maximum | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.20% | |||
2017 Amended Credit Agreement | 2017 Revolving Credit Facility | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Description of variable rate basis | LIBOR | |||
2017 Amended Credit Agreement | 2017 Revolving Credit Facility | LIBOR | Minimum | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.50% | |||
2017 Amended Credit Agreement | 2017 Revolving Credit Facility | LIBOR | Maximum | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 2.20% | |||
2017 Amended Credit Agreement | 2017 Multi-Draw Term Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | 265,000,000 | |||
Debt term | 7 years | |||
Remaining borrowing capacity | $ 265,000,000 | |||
2017 Amended Credit Agreement | 2017 Multi-Draw Term Facility | Minimum | ||||
Debt Instrument [Line Items] | ||||
Commitment fee percentage on unused portion | 0.15% | |||
2017 Amended Credit Agreement | 2017 Multi-Draw Term Facility | Maximum | ||||
Debt Instrument [Line Items] | ||||
Commitment fee percentage on unused portion | 0.35% | |||
2017 Amended Credit Agreement | 2017 Multi-Draw Term Facility | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Description of variable rate basis | base rate | |||
2017 Amended Credit Agreement | 2017 Multi-Draw Term Facility | Base Rate | Minimum | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.50% | |||
2017 Amended Credit Agreement | 2017 Multi-Draw Term Facility | Base Rate | Maximum | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.20% | |||
2017 Amended Credit Agreement | 2017 Multi-Draw Term Facility | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Description of variable rate basis | LIBOR | |||
2017 Amended Credit Agreement | 2017 Multi-Draw Term Facility | LIBOR | Minimum | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.50% | |||
2017 Amended Credit Agreement | 2017 Multi-Draw Term Facility | LIBOR | Maximum | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 2.20% | |||
2017 Amended Credit Agreement | 2017 Term Loan Facility A-1 | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | 100,000,000 | |||
Debt term | 10 years | |||
Basis spread on variable rate | 1.75% | |||
2017 Amended Credit Agreement | 2017 Term Loan Facility A-1 | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Description of variable rate basis | LIBOR | |||
2017 Amended Credit Agreement | 2017 Term Loan Facility A-2 | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | 118,800,000 | |||
Debt term | 9 years | |||
Basis spread on variable rate | 1.90% | |||
2017 Amended Credit Agreement | 2017 Term Loan Facility A-2 | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Description of variable rate basis | LIBOR | |||
2017 Amended Credit Agreement | 2017 Term Loan Facility A-3 | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 118,800,000 | |||
Debt term | 10 years | |||
Basis spread on variable rate | 2.00% | |||
2017 Amended Credit Agreement | 2017 Term Loan Facility A-3 | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Description of variable rate basis | LIBOR | |||
2017 Amended Credit Agreement | 2017 Term Loan Facility A-2 And 2017 Term Loan Facility A-3 | ||||
Debt Instrument [Line Items] | ||||
Repayment of debt | $ 69,000,000 | |||
Write off of deferred financing costs | $ 1,400,000 |
Notes Payable and Lines of Credit - Patronage - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
Dec. 31, 2017 |
|
Debt Disclosure [Abstract] | |||
Patronage refunds received | $ 2.7 | $ 2.1 | |
Patronage refunds, percentage received in cash | 75.00% | ||
Patronage refunds, percentage received in equity | 25.00% | ||
Patronage refunds, value of equity in patronage banks | $ 1.5 | 0.8 | |
Patronage refund accrual | 0.7 | $ 0.7 | |
Patronage refund receivable | $ 0.7 | $ 2.7 |
Notes Payable and Lines of Credit - Debt Covenants - Narrative (Details) - 2017 Amended Credit Agreement |
3 Months Ended |
---|---|
Mar. 31, 2018
USD ($)
| |
Debt Instrument [Line Items] | |
Covenant term, loan to value (LTV) ratio (percent) | 45.00% |
Covenant terms, fixed charge coverage ratio (not less than) | 1.05 |
Capital expenditure percentage of timberlands | 1.00% |
Maximum | |
Debt Instrument [Line Items] | |
Covenant term, loan to value (LTV) ratio (percent) | 50.00% |
Minimum | |
Debt Instrument [Line Items] | |
Covenant terms, minimum liquidity balance required (no less than) | $ 25,000,000.0 |
Notes Payable and Lines of Credit - Interest Paid and Fair Value of Outstanding Debt - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
Dec. 31, 2017 |
|
Debt Instrument [Line Items] | |||
Interest payments | $ 2.9 | $ 2.5 | |
Unused borrowing capacity fee | $ 0.1 | $ 0.2 | |
Secured Debt | |||
Debt Instrument [Line Items] | |||
Weighted-average interest rate | 3.91% | 3.60% | |
Weighted-average interest rate, after patronage refunds | 3.11% | 2.80% |
Interest Rate Swaps - Narrative (Details) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2018
USD ($)
derivative
|
Mar. 31, 2017
USD ($)
|
Dec. 31, 2017
USD ($)
|
|
Derivative [Line Items] | |||
Variable rate debt | $ 268,619,000 | $ 337,619,000 | |
Change in fair value of interest rate swaps, other comprehensive income (loss) | 1,931,000 | $ (279,000) | |
Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Notional amount | $ 200,000,000 | ||
Derivative, fixed interest rate | 3.92% | ||
Amount to be reclassified from accumulated other comprehensive income to interest expense net 12 months | $ 61,000 | ||
Change in fair value of interest rate swaps, other comprehensive income (loss) | 1,900,000 | (300,000) | |
Amount of ineffectiveness on interest rate swaps | 0 | 0 | |
Payments for interest rate swap | $ 200,000 | $ 200,000 | |
Interest Rate Swap | Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Number of interest rate derivatives added | derivative | 2 | ||
Number of interest rate derivatives outstanding | derivative | 7 | ||
2018 Rabobank Swap, One | Designated as Hedging Instrument | LIBOR | |||
Derivative [Line Items] | |||
Notional amount | $ 30,000,000 | ||
Derivative, fixed interest rate | 2.703% | ||
2018 Rabobank Swap, Two | Designated as Hedging Instrument | LIBOR | |||
Derivative [Line Items] | |||
Notional amount | $ 20,000,000 | ||
Derivative, fixed interest rate | 2.884% |
Interest Rate Swaps - Schedule of Interest Rate Swaps Outstanding (Details) - Designated as Hedging Instrument |
Mar. 31, 2018
USD ($)
|
---|---|
Derivative [Line Items] | |
Pay Rate | 3.92% |
Notional Amount | $ 200,000,000 |
2014 Rabobank Swap | LIBOR | |
Derivative [Line Items] | |
Pay Rate | 2.395% |
Notional Amount | $ 35,000,000 |
2016 Rabobank Swap | LIBOR | |
Derivative [Line Items] | |
Pay Rate | 1.28% |
Notional Amount | $ 45,000,000 |
2017 Rabobank Swap, One | LIBOR | |
Derivative [Line Items] | |
Pay Rate | 2.33% |
Notional Amount | $ 20,000,000 |
2017 Rabobank Swap, Two | LIBOR | |
Derivative [Line Items] | |
Pay Rate | 1.80% |
Notional Amount | $ 30,000,000 |
2017 Rabobank Swap, Three | LIBOR | |
Derivative [Line Items] | |
Pay Rate | 2.045% |
Notional Amount | $ 20,000,000 |
2018 Rabobank Swap, One | LIBOR | |
Derivative [Line Items] | |
Pay Rate | 2.703% |
Notional Amount | $ 30,000,000 |
2018 Rabobank Swap, Two | LIBOR | |
Derivative [Line Items] | |
Pay Rate | 2.884% |
Notional Amount | $ 20,000,000 |
Interest Rate Swaps - Schedule of Interest Rate Swaps Measured at Fair Value (Details) - Interest rate swaps - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Prepaid expenses and other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives designated as hedging instruments, estimated fair value | $ 4,947 | $ 2,935 |
Other liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives designated as hedging instruments, estimated fair value | $ (640) | $ (559) |
Commitments and Contingencies - Narrative (Details) |
3 Months Ended |
---|---|
Mar. 31, 2018
USD ($)
state
| |
Commitments and Contingencies [Line Items] | |
Number of southern states reporting raw forest product prices | state | 11 |
Legal proceedings | $ | $ 0 |
Forest Resource Consultants, Inc. | |
Commitments and Contingencies [Line Items] | |
Operating agreement, notice of termination option | 120 days |
American Forestry Management, Inc. | |
Commitments and Contingencies [Line Items] | |
Operating agreement, notice of termination option | 120 days |
Forest Resource Consultants, Inc. | |
Commitments and Contingencies [Line Items] | |
Operating agreement, term of extension option | 1 year |
Days notice required before automatic renewal | 120 days |
Operating agreement, notice of termination option | 120 days |
American Forestry Management, Inc. | |
Commitments and Contingencies [Line Items] | |
Operating agreement, term of extension option | 1 year |
Days notice required before automatic renewal | 120 days |
Operating agreement, notice of termination option | 120 days |
Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
1 Months Ended | 3 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2018 |
Mar. 31, 2018 |
Mar. 31, 2017 |
Mar. 22, 2018 |
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Equity offering, shares issued (in shares) | 5,750 | |||
Equity offering, shares issued, price per share (in dollars per share) | $ 12.60 | $ 12.60 | $ 12.60 | |
Other offering costs paid | $ 3,500 | $ 3,490 | $ 0 | |
Issuance of common stock | $ 69,000 | $ 72,450 | $ 0 |
Stock-based Compensation - Stock-based Compensation-Independent Directors - Narrative (Details) - Amended 2005 Long-Term Incentive Plan |
3 Months Ended | |
---|---|---|
Feb. 27, 2018
director
shares
|
Mar. 31, 2018
shares
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of independent directors issued additional shares | director | 1 | |
Director | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Issued in period (in shares) | shares | 590 | 1,239 |
Stock-based Compensation - Rollforward of Restricted Stock to Independent Directors (Details) - Restricted Stock |
3 Months Ended |
---|---|
Mar. 31, 2018
$ / shares
shares
| |
Number of Underlying Shares | |
Unvested, beginning of period (in shares) | shares | 278,633 |
Granted (in shares) | shares | 73,000 |
Vested (in shares) | shares | (83,043) |
Forfeited (in shares) | shares | 0 |
Unvested, end of period (in shares) | shares | 268,590 |
Weighted-Average Grant Date Fair Value | |
Unvested, beginning of period (in dollars per share) | $ / shares | $ 11.05 |
Granted (in dollars per share) | $ / shares | 12.97 |
Vested (in dollars per share) | $ / shares | 11.33 |
Forfeited (in dollars per share) | $ / shares | 0.00 |
Unvested, end of period (in dollars per share) | $ / shares | $ 11.49 |
Director | |
Number of Underlying Shares | |
Unvested, beginning of period (in shares) | shares | 3,356 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | (3,356) |
Forfeited (in shares) | shares | 0 |
Unvested, end of period (in shares) | shares | 0 |
Weighted-Average Grant Date Fair Value | |
Unvested, beginning of period (in dollars per share) | $ / shares | $ 11.92 |
Granted (in dollars per share) | $ / shares | |
Vested (in dollars per share) | $ / shares | 11.92 |
Forfeited (in dollars per share) | $ / shares | 0.00 |
Unvested, end of period (in dollars per share) | $ / shares | $ 0.00 |
Stock-based Compensation - Stock-based Compensation-Employees - Narrative (Details) - Restricted Stock |
3 Months Ended |
---|---|
Mar. 31, 2018
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Issued in period (in shares) | 73,000 |
Vesting period | 4 years |
Stock-based Compensation - Rollforward of Service-based Restricted Stock to Employees (Details) - Restricted Stock |
3 Months Ended |
---|---|
Mar. 31, 2018
$ / shares
shares
| |
Number of Underlying Shares | |
Unvested, beginning of period (in shares) | shares | 278,633 |
Granted (in shares) | shares | 73,000 |
Vested (in shares) | shares | (83,043) |
Forfeited (in shares) | shares | 0 |
Unvested, end of period (in shares) | shares | 268,590 |
Weighted-Average Grant Date Fair Value | |
Unvested, beginning of period (in dollars per share) | $ / shares | $ 11.05 |
Granted (in dollars per share) | $ / shares | 12.97 |
Vested (in dollars per share) | $ / shares | 11.33 |
Forfeited (in dollars per share) | $ / shares | 0.00 |
Unvested, end of period (in dollars per share) | $ / shares | $ 11.49 |
Stock-based Compensation - Summary of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 765 | $ 420 |
General and administrative expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 516 | 326 |
Forestry management expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 249 | $ 94 |
Stock-based Compensation - Stock-based Compensation Expense - Narrative (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2018
USD ($)
| |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Nonvested awards, unrecognized compensation expense | $ 3.7 |
Nonvested awards, unrecognized compensation expense, period for recognition | 2 years 5 months 1 day |
Subsequent Event - Narrative (Details) - $ / shares |
3 Months Ended | ||
---|---|---|---|
May 03, 2018 |
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Subsequent Event [Line Items] | |||
Cash dividend declared, per share (in dollars per share) | $ 0.135 | $ 0.135 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Cash dividend declared, per share (in dollars per share) | $ 0.135 |
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