Pope Resources reported positive net income amid 25% growth of revenues in 1Q2017 y-o-y. According to the announcement, the company’s sales accounted for USD 15.9 million, generating net income attributable to its unitholders of USD 0.2 million in the period.
In January-June, the company generated USD 3.5 million net income attributable to unitholders, on revenue of USD 33.2 million.
Tom Ringo, Pope Resources’ President and CEO, commented:
“Log markets in our operating regions are strong due to a multitude of demand and supply factors. Continued improvement in housing starts is supporting domestic log prices and export demand is generally adding pricing tension to our markets. Furthermore, a new sawmill in our Hood Canal wood basket has added a second production line, creating welcome incremental demand for our logs. The recent fire situation in British Columbia is starting to crimp lumber supply coming to the U.S., further tilting lumber pricing drivers in favor of regional domestic mills, and derivatively pushing up demand for our logs. On the supply side, reduced harvest volumes and sales from our competitors have put upward pressure on our log prices.
Whereas our 2016 harvest activity was heavily weighted toward the back end of the year, in 2017 we will have a fairly balanced spreading of volume across the quarters. As such, the first half of this year compares quite favorably with last year given the significant year-to-date harvest volume coupled with the higher log prices we are seeing.
The Puget Sound housing market is quite strong and our Real Estate segment enjoys some of the ripple effect of that phenomenon, especially in our Gig Harbor project where we have been constructing a significant number of single-family lots to close in the second half of this year.”
In 1Q2017 Pope Resources reported positive net income.
About Pope Resources:
The company is a publicly traded limited partnership, together with its subsidiaries Olympic Resource Management and Olympic Property Group it owns or manage 193,000 acres of timberland and development property in Washington, Oregon, and California. It also manages, co-invests in, and consolidates three private equity timber funds, for which it earns management fees.