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Investor Relations
Why invest in The Forest Company?

The Forest Company offers investors long-term real returns. Moreover, by investing in The Forest Company you can make a positive difference in developing countries. The Forest Company’s existing portfolio of operating and cash flow generating forestry projects in South America combined with new add-on investments underpins returns through income yield and capital appreciation.

Since inception, in local currency, The Forest Company has generated an aggregate project after-tax IRR (internal rate of return) of 9% in Brazil and respectively, 12% in Colombia (as at 30 June 2022). The Forest Company’s investor base includes leading European and American institutional investors, among them pension funds, family offices, insurance companies, and development finance institutions.

The overall objective is to provide shareholders with low-risk and high-quality real long-term returns, via cash distributions and growth in net asset value, through sustainable investments in forest assets. The Forest Company targets an nominal IRR of 10%-12% after taxes while aiming to distribute an aggregate annual dividend of equivalent to 3%-5% of adjusted net asset value.

As of 30 June 2022, The Forest Company had distributed USD 60.2 million in dividends to its investors.

The Forest Company delivers stable and attractive returns to its investors through the participation in the value chain of competitive and sustainable industries. The Company has built a timberland portfolio that is diversified in terms of age, class and species, to maximise the risk/return profile. The Company believes that this approach will generate both long-term capital appreciation for shareholders and an attractive and sustainable income yield.

All of The Forest Company’s subsidiaries have a local corporate social responsibility plan with specific actions, developed and maintained by the local management. Overall it is a well-defined, coordinated plan, with strong pillars and core values, embodied in the Company’s very own DNA.

The Forest Company supplies over 60 clients in four main value chains, as a way to diversify its end markets and reduce the inherent risk of cyclical markets. The four main value chains are: pulp and paper, energy, wood mechanics (sawmilling and wood-based panels), and charcoal.