Our farm project also involves the reforestation and enrichment of severely degraded forest land with a mixture of both indigenous trees and fast-growth species appropriate to the locality. These semi-natural timber plantation assets assist in reducing global forest loss.
Timber’s greatest virtue as an asset class is its biological growth rate. Trees continue to grow irrespective of any economic upheaval at an average annual rate of 8 percent (North American average).
Returns from timberland investments, as measured by the National Council of Real Estate Investment Fiduciaries Timberland Index, beat the S&P 500 Index for eleven of the past 20 years from 1990 through 2009. In that time period, the NCREIF Timberland Index annual compounded return was 11.8 percent versus 7.3 percent for the S&P 500. Our projects follow the sustainable forestry management practices of the internationally recognized Windhorse Farm, North America’s leading sustainable forestry operation, which has produced 50 per cent more volume and higher quality wood over the past 168 years than it would have produced by clear cutting four times over the same time period.
Our Timber is harvested on a sustainable basis, and in compliance with the Climate, Community and Biodiversity Standards (CCBS), and Forest Stewardship Council (FSC) standards.