31 Inverness Center Parkway
Birmingham, AL 35242
Phone: (800) 995-9516
Fax: (205) 991-2807
Our investment strategy focuses on intensively managed plantations in countries of low to moderate risk with established timber markets.
- Our core investment geographies include the US South, Brazil, New Zealand, Australia and China. In our view, these countries offer an attractive combination of highly productive plantation assets, deep timber markets, very competitive wood growing and production costs and significant opportunities to acquire investment-grade timberlands.
- In these areas, we see potential to invest in plantations comprised of fast-growing softwoods (loblolly, slash and radiata pine) and hardwoods (eucalyptus and poplar). RMS and our investors have a powerful combination of available capital, access to technology and an investment-oriented ownership objective. Plantation assets enable us to fully utilize proven and developing tree-growing science and leverage improvements in harvesting systems and manufacturing technologies to increase long-term asset value.
- Plantation forests in established markets typically represent lower risk assets. They feature lower environmental risk than natural forests due to the absence of old growth and related endangered species issues. Total volume yield and product mix are more predictable in plantations than in natural forests, reducing production risks. Finally, plantation timberlands commonly offer excellent road infrastructure for operational access, allowing us to effectively manage natural hazard risk from fire, insects and other damaging agents.
We believe extraordinary benefits can be gained if we achieve and leverage significant operating scale in our selected investment regions. Scale facilitates our ability to develop value-added silvicultural programs through investment in region-specific science. As a frequent timber seller, we possess the superior market knowledge, customer relationships and market presence necessary to capture consistent timber sales value. Further, operating scale provides cost efficiencies in forestry operations, access to dependable, high-quality service vendors and gives us a deeper understanding of investment and operating risks in regions with diverse political and cultural environments. Fundamentally, we believe that scale is a critical element of active management and active management is the keystone for maximizing long-term total returns.
We utilize forestry and economic research and analysis to inform all aspects of investment and forest management activities. Our goal is to be the industry leader in applied forest technology -- a goal that is consistent with our strategic focus on intensively-managed plantations assets. RMS and its investors are active participants in a number of timberland-related research and advocacy groups; we invest approximately $1 million annually in dues and in-kind contributions. We leverage our annual expenditures through participation in the premier university research cooperatives in the countries where we operate.
We believe well-managed forests provide many benefits to society and seek to implement scientifically, environmentally, socially, and economically sustainable forestry practices on our clients' forestlands. RMS has strong relationships with mainstream conservation groups and experience in a variety of conservation-related issues. While many of our employees are active participants in these groups, leadership in sustainable forestry is provided by a dedicated senior management position. Third-party certification is an essential component of our stewardship program. RMS-managed timberlands are certified under the Sustainable Forestry Initiative (SFI) in the United States and the Forest Stewardship Council (FSC) in Brazil.