Investment returns from New Zealand’s large-scale commercial forests 2009 to 2023

Authors: David Evison
Publication: New Zealand Journal of Forestry, Volume N.Z.J.For. 2025, Issue N.Z.J.For. 69(4) 2025, pp Pages 3-10, Feb 2025
Publisher: New Zealand Institute of Forestry

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Abstract: A financial database representing around 40% of New Zealand’s commercial forest area has been developed and is being updated annually. The data is extracted from the annual reports of companies whose sole or dominant business is forest growing. Annual investment returns have been calculated from 2009 to 2023, as the sum of cash real return on assets and the change in real asset value. The average annual real return from commercial forests over this period was 8% (of which 4.8% was cash return on assets and 3.2% change in asset value). Both components of total return were generally above average between 2013 and 2020. The database can be used to benchmark individual company performance (an example is shown) and to compare investment returns with other land uses. Over the same period, the average annual return from dairy farming was 2.7%, and from hill country sheep and beef farming around 5%.

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