Forestry Investment – Mineral resource and real estate firm, Forester Group, has reported that it made $51 million in the second quarter of the year boosted by the sale of a large amount of timberland.
The firm sold 75,000 acres of forested land during the quarter for a total of $120 million. The firms profits rose 500 per cent from $9.6 million during the same quarter in 2008.
The sale of the timberland, which is based in Georgia and Alabama, was made to Hancock Timber Resource Group. It also announced last night that it sold a further 20,000 acres of Georgia timberland to St Regis Paper Co for $39.5 million. This sale is likely to benefit the firm when it announces its results for the third quarter. The deal was overseen by Goldman, Sachs & Co.
The firm says the timberland deals are helping it to stay on track with its plan to reduce debt by disposing of certain assets.
Shares of the firm rose 2 per cent last week to trade at $13.50. Forrester has 93 employees and was the result of a spin-off from Temple-Inland Inc.