Pope Resources, a publicly traded limited partnership, and its subsidiaries Olympic Resource Management and Olympic Property Group, own or manage 210,000 acres of timberland and development property in Washington, Oregon, and California. These acres include three private equity timber funds that we manage, co-invest in, and consolidate in our financial statements and from which we earn management fees. These funds provide an efficient means of investing our own capital in Pacific Northwest timberland and earning fee revenue from managing the funds for third-party investors. The Partnership and its predecessor companies have owned and managed timberlands and development properties for over 160 years. Additional information on the company can be found at www.poperesources.com.
POULSBO, Wash. - Lumber supplier Pope Resources says a new sawmill in Washington and diminished imports of Canadian logs are driving up its prices.
"Log markets in our operating regions are strong due to a multitude of demand and supply factors," said Tom Ringo, President and CEO. "Continued improvement in housing starts is supporting domestic log prices and export demand is generally adding pricing tension to our markets."
Ringo said a new sawmill in the Hood Canal area of Washington State has added a second production line, creating incremental demand for its 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," says Ringo. "On the supply side, reduced harvest volumes and sales from our competitors have put upward pressure on our log prices."
Pope Resources reported net income of $158,000, down 60 -erent from a year ago, on revenue of $15.9 million, about 25 percent, for the quarter ended June 30, 2017.
"Our 2016 harvest activity was heavily weighted toward the back end of the year," Ringo said. "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 average realized log price was $616 per thousand board feet in the quarter, a 9 percent rise. As a percentage of total harvest, volume sold to domestic markets in the quarter fell to 50 percent from 66 percent a year ago; volume sold to export markets increased to 21 percent versus 15 percent a year ago.