As we approached the release of our latest investment offer – Pukekōwhai Forest Investment – we’ve been talking with potential investors about why forestry is so investible.
Giving investors access to the best
There are very few opportunities for individuals to invest in forestry in New Zealand due to the scale required for successful forestry operations.
For nearly 50 years, Forest Enterprises has been helping kiwis grow their wealth through investments in sustainable forestry. They offer an affordable entry into forestry investment with exceptional land and high quality, proven plantations. Their forests are in some of the best forestry sites in New Zealand.
The future is in trees
As the world pursues a low carbon future, renewables are increasingly being sought to substitute carbon intensive alternatives like steel, concrete and plastic. This is driving timber demand. Uses include engineered timber products for construction, appearance-grade products for interiors, for industrial products, and consumer goods.
Forests are valued for their carbon storage and are essential if New Zealand is to achieve its climate change goals. Forests will help remove greenhouse gases from the atmosphere in the short term, while strategies for eliminating or reducing greenhouse gas emissions are sought in the longer term.
Diversification and other investment benefits
Investors have turned to forestry investments as a hedge against volatility in markets and fluctuations in the value of other investments.
Investing in assets like forestry can be complementary to equities, interest bearing deposits, fixed income and property for diversifying and lowering the risk in an investment portfolio.
Forestry is a good way to diversify your investment portfolio into a land-based, responsible and resilient investment. Forestry is New Zealand’s 3rd largest export behind dairy and meat, earning $6.25 billion in the year to June 2021 from logs and other forest products.
Because income is deferred until harvest starts, investing in forestry can be a great way to invest for future income, like for retirement or younger family members.
Investors are seeing returns
Around a third of Forest Enterprises clients are currently earning harvest income from the investments they made in the 1990s.
Forest Enterprises’ latest round of harvest distributions took our total investor payments in the last 4.5 years to over $91m.
Get more information about Pukekōwhai Forest Investment and a Product Disclosure Statement >>