DISCONTINUED OPERATIONS

9 Months Ended

Sep. 30, 2025

Discontinued Operations and Disposal Groups [Abstract]

On March 9, 2025, Rayonier entered into a purchase and sale agreement with Taurus Forest Holdings Limited, pursuant to which Rayonier agreed to sell its entire 77% interest in its New Zealand operations. Accordingly, in the first quarter of 2025, the financial results of the New Zealand Timber segment and the New Zealand portion of the Real Estate, former Trading and Corporate segments were classified as discontinued operations in our Consolidated Statements of Income and Comprehensive Income (Loss) for all periods presented.

On June 30, 2025, we completed the sale of our New Zealand operations for a purchase price of $710 million. Net proceeds to Rayonier, after adjusting for estimated net debt, working capital, transaction costs, and other closing adjustments, were $698.6 million. We received a final purchase price adjustment of $0.7 million during the third quarter, which was recognized as a receivable on our June 30, 2025 Consolidated Balance Sheet. In connection with the sale, we recognized a gain on disposal of discontinued operations of $404.5 million.

The following table summarizes the results of our New Zealand operations for the three and nine months ended September 30, 2025 and 2024, as presented in “Income from discontinued operations” in the Consolidated Statements of Income and Comprehensive Income (Loss):


	Three Months Ended September 30,		Nine Months Ended September 30,
	2025	2024	2025	2024
Sales	—	$70,891	$109,332	$199,254
Costs and Expenses
Cost of sales	—	(60,870)	(102,050)	(172,298)

Other operating expense, net (a)	—	(1,247)	(3,400)	(2,710)
	—	(62,117)	(105,450)	(175,008)
Operating income from discontinued operations	—	8,774	3,882	24,246
Interest expense, net	—	(812)	(1,508)	(2,390)
Interest income	—	265	202	777
Income from operations of discontinued operations before income taxes	—	8,227	2,576	22,633
Income tax expense	—	(25)	(693)	(684)
Income from operations of discontinued operations, net of tax	—	8,202	1,883	21,949
Gain on sale of discontinued operations (b)	—	—	404,463	—
Income from discontinued operations	—	8,202	406,346	21,949
Less: Net income from discontinued operations attributable to noncontrolling interests in the Operating Partnership	—	(93)	(5,375)	(256)
Less: Net (income) loss from discontinued operations attributable to noncontrolling interests in consolidated affiliates	—	(1,303)	192	(3,362)
Net income from discontinued operations attributable to Rayonier Inc.	—	$6,806	$401,163	$18,331

(a)The nine months ended September 30, 2025 includes transaction costs of $0.2 million. The three and nine months ended September 30, 2024 include transaction costs of $0.2 million and $0.7 million, respectively.

(b)The gain on sale of discontinued operations is not subject to income tax, as it relates to a partnership interest.

The major classes of the New Zealand operation’s assets and liabilities as reported on the December 31, 2024 Balance Sheet are as follows:


									December 31, 2024
ASSETS
CURRENT ASSETS
Cash and cash equivalents									$20,093
Trade receivables, less allowance for doubtful accounts of $0									18,935

Inventory									1,462
Prepaid expenses									6,206
Other current assets									624
Total current assets									47,320
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION									339,724
PROPERTY, PLANT AND EQUIPMENT
Buildings									1,707
Machinery and equipment									171
Total property, plant and equipment, gross									1,878
Less — accumulated depreciation									(935)
Total property, plant and equipment, net									943
RIGHT-OF-USE ASSETS									64,082
OTHER ASSETS									23,850
TOTAL ASSETS									$475,919

LIABILITIES
CURRENT LIABILITIES
Accounts payable									$9,145
Current maturities of long-term debt, net									19,442
Accrued taxes									2,399
Accrued payroll and benefits									793
Other current liabilities									15,556
Total current liabilities									47,335
LONG-TERM DEBT, NET									45,360
LONG-TERM LEASE LIABILITY									60,038
OTHER NON-CURRENT LIABILITIES									65,443
TOTAL LIABILITIES									$218,176

The following table summarizes the depreciation, depletion and amortization, capital expenditures and non-cash cost of land sold and improved development of the Company’s discontinued operations for the three and nine months ended September 30, 2025 and 2024:


	Three Months Ended September 30,		Nine Months Ended September 30,
	2025	2024	2025	2024
Depreciation, depletion and amortization	—	$5,632	$9,081	$20,533
Capital expenditures	—	4,820	7,098	12,904
Non-cash cost of land and improved development	—	—	—	3,041