About Forestry Investment
Forestry Investment Returns
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Here you can read the financial analysis of our first forest planted 30 years on and learn about some issues you need to consider when looking at the returns from forestry investment -
The
Waterfalls Forest Investors' Story
Importance
of Tax Paid Real Returns
Return
Projections for Current Investment Opportunities
The Waterfalls Forest Investors' Story
In 2001, we began harveting our first two forests - completing the investment cycle from planting to harvest for our original Investors.
With harvesting now well underway we have selected one of these forests, Waterfalls, and looked back over the life of the forest since planting in 1973. The objective of the analysis being to find out how profitable forestry investment has been over the last 30 years.
Despite some difficult financial times, the return at harvest for Waterfalls Investors is projected to be an impressive $151,506 - or expressed as a percentage, a taxable rate of return of 16.24% compouned per annum for the 30 plus years of the investment!
To read the full story on Waterfalls Forest Investment online click here or download the story as a PDF file below.
The Waterfalls Forest Investors' Story
(110KB)
To download this file to your computer right-click on the
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open the saved file. (You will need Adobe Acrobat Reader to view PDF files.
If you need details on how to get Adobe Acrobat Reader click here)
See also the Importance of Tax Paid Real Returns and Return Projections for Current Investment Opportunities below.
Importance of Tax Paid Real Returns
With any medium to longer term investment, it is the projected return after:
- maintaining the purchasing power of your money
- paying any tax due
that is most important. This is the tax paid real return.
The difference between the the gross return and the tax paid real return, is the impact of inflation over the period on the purchasing power of the New Zealand dollar plus taxation.
Inflation at just 2.0% halves the purchasing power of the dollar in about the same time as it takes a Radiata seedling to grow into a mature tree.
Historically, forestry investment has demonstrated an ability to maintain value with inflation and to reward investors with substantial real (after inflation) returns.
Other investments with a similar potential are property and equities.
Return Projections for Current Investment Opportunities
As the industry leader, we take a more conservative approach than most and still come up with excellent projected returns for our new investments.
Return projections using a number of scenarios are calculated for all current investments.
Refer to Investment Opportunities for returns relating to specific investment opportunities.