With many of our forest investments approaching harvesting age, this question from investors is understandable because it is an indication of when to expect investment returns.
Indicative harvest dates have been reported each year in the investment’s annual Financial Report, reflecting the expectations in the original Prospectus to harvest exactly at tree age 28 years. However, these dates were not definitive and were, in reality, unlikely.
Harvesting throughout New Zealand presently faces a number of constraints, namely the combination of predicted high log volumes, status of essential infrastructure such as public road quality and capacity, rail and port capacity and log storage, plus contractor resourcing and availability (logging crews and trucks).
Such practicalities mean that the harvest of our investors’ forests is likely to begin a little earlier and finish later than originally expected. As a responsible forest manager, we must also harvest in a way that protects the land and minimises environmental impact, and this approach necessitates longer harvest timeframes.
Investors will note in the December 2019 and March 2020 annual Financial Reports that the Projected Cashflow has been revised to reflect a longer harvest period. These dates may still change.
As we get closer to harvest, we will be in touch with investors to discuss our proposed plan for the best way to harvest your forest.