Are timberland REITs a good investment?

They can make very good long-term investments if the REIT is well managed, the trees are well cared for, and a good mix of products is maintained.

Can timberland REITs act as a hedge against inflation?

Timberland REITs have often acted as hedges against inflation due to the ongoing land appreciation that accompanies this business. Even when timber sales are slow, land can be sold to offset shortfalls.

What makes timberland REITs different from other REITs?

Timberland REITs differ from other REITs in that they largely don't rely on rents to stay afloat. Instead, they produce wood products. The value of the land appreciates and can be sold.

Can individual investors buy timberland REITs?

Absolutely! There are two mentioned in this article that are available on the stock market for anyone to buy.

Do timberland REITs pay dividends?

All REITs pay dividends as part of their overall structure.

How do timber prices affect timberland REIT performance?

The price of timber is the single most important driver of timberland REIT performance. Since timber REITs don't rent land to other companies and instead grow timber on their properties, the vast majority of their income comes from the sale of the trees and tree products they grow.

Who invests in timberland REITs?

Timberland REITs tend to be the domain of long-term investors, especially those with plenty of time to wait for trees to grow and be harvested. These REITs are also a great hedge against inflation and market volatility.

Best Timberland REITs for 2026 and How to Invest

Considering investing in timberland? These timberland REITs can give you the returns without the headache of self-management.

By Kristi Waterworth – Updated Sep 24, 2026 at 2:26 AM EST | Fact-checked by Frank Bass

Key Points

Timberland REITs specialize in land for timber and differ from other REITs that earn from rentals.
Weyerhaeuser, a large timberland REIT, offers dividends adjusted to lumber market prices.
Investing in timberland REITs taps into lumber market dynamics, serving as an inflation hedge.

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Ticker Information Table
Name and ticker	Market capMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.	Dividend yield
Weyerhaeuser (NYSE:WY)	$13.3 billion	4.55%
Rayonier (NYSE:RYN)	$5.4 billion	5.83%

Data as of Oct 4, 2026. Showing 2 of 2 total entries.

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Here's a closer look at these timberland REITs.

1. Weyerhaeuser

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NYSE: WY

Weyerhaeuser

Premium Feature

Moneyball Superscore

61/100

Today's Change

(-0.65%) $-0.12

Current Price

$18.47

Key Data Points

Market Cap

$13B

Day's Range

$18.41 - $18.88

52wk Range

$18.41 - $27.75

Volume

7.7M

Avg Vol

5.8M

Gross Margin

14.51%

Dividend Yield

4.55%

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Weyerhaeuser (WY -0.65%) is, by far, the largest timberland REIT. It owns 10 million acres of timberland in the U.S. and manages land in Canada under long-term licenses. The company also operates 33 wood product manufacturing facilities across North America. In addition, it has a real estate, energy, and natural resources business that aims to maximize value from every acre of land it owns.

Aside from its scale and diversification, another factor that sets Weyerhaeuser apart from other timberland REITs is its dividend policy. The company implemented a new framework in late 2020 to pay a base quarterly dividend, plus a variable supplemental dividend.

The company set the base payout to be sustainable at lower commodity prices. Meanwhile, the variable supplemental dividend would see Weyerhaeuser pay out additional cash to shareholders when lumber prices are higher. Overall, it aims to distribute 75%-80% of its available annual funds as dividends.

2. Rayonier

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NYSE: RYN

Rayonier

Premium Feature

Moneyball Superscore

55/100

Today's Change

(-0.88%) $-0.16

Current Price

$18.06

Key Data Points

Market Cap

$5.4B

Day's Range

$18.03 - $18.45

52wk Range

$17.91 - $27.02

Volume

3.8M

Avg Vol

3.1M

Gross Margin

24.22%

Dividend Yield

5.83%

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Rayonier (RYN -0.88%) operates three core businesses: forest resources, sawmills, and real estate. The company holds approximately 4 million acres of timberland across 11 states in the Pacific Northwest and the U.S. South. It now owns and operates six wood products manufacturing facilities across the United States, following a merger with Spokane, Wash.-based PotlatchDeltic that closed in January 2026.

The company reported $10.2 million in merger-related costs in its second-quarter 2026 filing. But now that the merger is complete, the company is realizing significantly higher harvests across both its southern and northwest regions. The southern region's Q2 2026 sales increased 102% year over year due to the merger with PotlatchDeltic; the northwest region saw an even greater increase of 177%.

How to invest in timberland REITs

Open your brokerage account: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
Search for the stock: Enter the ticker into the search bar to bring up the stock's trading page.
Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Submit your order: Confirm the details and submit your buy order.
Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

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Benefits and risks of investing in timberland REITs

There are a few advantages to owning timberland REITs in your portfolio, including:

Solid lumber investment play: Higher timber prices can drive up timber REIT earnings. That makes timberland REITs a great way to invest in lumber during cyclical market upswings. The housing market is a big driver of lumber prices, making timberland REITs another way to invest in housing.
Increasing timber demand: While lumber prices can be volatile due to demand fluctuations, they tend to rise over the long term. A growing population drives demand for more housing and lumber.
Inflation hedging: As a commodity, lumber benefits from inflation. Timberland is a good inflation hedge, as rising lumber and land prices should boost the value of a timber REIT's land portfolio and its cash flow from timber, wood products, and real estate sales.
Possible boost from Canadian tariffs: Although it's not a straightforward calculus, there could be some small benefits from tariffs on Canadian lumber for U.S. timberland REITs. Because Canada has traditionally supplied significant lumber to the U.S., the cost advantages of Canadian timber producers are being rapidly eroded. In addition, these tariffs make U.S. lumber more attractive, which can further push demand.

The risks of timberland REITs aren't insubstantial, however, and should also be considered before investing. These include:

Possible volatility: While timberland REITs benefit from higher lumber prices, which boost their revenue and earnings, falling lumber prices can cause revenue and earnings to decline. That variability can make timberland REIT stock prices more volatile than other REITs. Periods of prolonged lower lumber prices can force a timber REIT to reduce its dividend.
Unpredictable natural disasters: In addition to commodity price risk, natural disasters pose another risk for timberland REITs. Wildfires, weather events, diseases, and insects can all destroy timberland. The effects of climate change could have an outsize impact on timberland REITs.
Interest rate risk: Like other REITs, timberland REITs tend to borrow heavily to acquire property. As interest rates rise, a timberland REIT's interest expenses can increase if it has floating-rate debt or an upcoming debt maturity.
Potential for declining stock prices: Rising interest rates also increase the income yield on lower-risk investments such as government bonds. That gives income-focused investors more options. As a result, REIT stock prices often decline, and dividend yields are increased to compensate investors for their higher risk profile. Some of this risk can be offset with appropriate portfolio diversification, even if you prefer to keep all your money in REITs.

Methodology: How these stocks were chosen

There are currently only two timberland REITs available on American stock exchanges. Both were included for completeness, though they are also both reasonably run companies. The Motley Fool is focused on companies with long-term viability, and both meet that standard.

The bottom line

Whether or not you choose to invest in timberland REITs, there are several factors specific to them to consider before investing, including:

Timber prices: Your timberland REIT can only perform as well as the timber market allows. No matter how good the business is, there may be some cyclicality, and you'll need to be prepared for ups and downs.
Product mix: Sawlogs, pulpwood, and non-timber income are all part of the mix for many timberland REITs. Sawlogs become lumber, which has a higher margin; pulpwood becomes paper, which has a lower margin. Other income will depend on the location and activity.
Geographic and climate impacts: Your timberland REIT's location affects how well the trees will grow, as does the climate. With climate change a very real risk, it's important to monitor and consider the effects of weather on your REIT. An area that was once moist and is now experiencing unusual droughts, for example, might not be a great long-term prospect.
Tax considerations: Like all REITs, timberland REITs distribute dividends that are then taxable to the recipient. However, for timberland REITs, these dividends are often taxed as capital gains because profits from the sale of standing timber are generally treated as capital gains.

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Timberland REITs FAQ

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About the Author

Kristi Waterworth has been a contributing real estate and financial expert at The Motley Fool, covering real estate, investing, and personal finance topics, since 2020. Kristi has been interviewed by various TV media outlets and podcasts for her real estate investing expertise – from residential real estate to digital real estate and everything in between. Kristi’s journalist career spans over 25 years, and she has written about real estate investing, homeownership, and home construction specifically for the last decade. She was also previously a licensed Realtor and general building contractor before the Great Recession and housing market collapse. She holds a bachelor’s degree in American history from Columbia College in Missouri.

TMFMaldivesBlue

@MaldivesBlues

Kristi Waterworth has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Best Timberland REITs for 2026 and How to Invest

Considering investing in timberland? These timberland REITs can give you the returns without the headache of self-management.

Key Points

1. Weyerhaeuser

NYSE: WY

Key Data Points

2. Rayonier

NYSE: RYN

Key Data Points

How to invest in timberland REITs

Benefits and risks of investing in timberland REITs

Methodology: How these stocks were chosen

The bottom line

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Timberland REITs FAQ

Are timberland REITs a good investment?

Can timberland REITs act as a hedge against inflation?

What makes timberland REITs different from other REITs?

Can individual investors buy timberland REITs?

Do timberland REITs pay dividends?

How do timber prices affect timberland REIT performance?

Who invests in timberland REITs?

1. Weyerhaeuser

Benefits and risks of investing in timberland REITs

Methodology: How these stocks were chosen

The bottom line

Related investing topics

Understanding timberland REITs

2 top timberland REITs to consider in 2026

2. Rayonier

How to invest in timberland REITs

NYSE: WY

Key Data Points

NYSE: RYN

Key Data Points