Investment Logic

Forestry investments are an internationally established and almost traditional asset class. For First Forest this comprises the investment into forest with its characteristics of being a natural renewable resource and its significant contribution to climate protection.
Investment value and non-correlation with traditional assets are mainly driven by biological growth of the trees. Growth varies by species, region, composition of soil and quality of forest management. Therefore the selection of investments and ongoing forest management are of significant importance.

During their growth from seedlings to mature and solid trees forests enter various stages of use. While after the first years the wood typically is used as woodchips and for pulp production in the later part of the growth cycle the timber produced is of higher value. Examples of product segments include wood for construction and furniture. During the harvesting period a cost efficient cutting and a profitable sale of the timber is key. Based on the analysis of the current market situation the ideal timing for cuts is defined and the most attractive market segments identified. The market price is mainly driven by species, quality grade and region. US Dollar is currently the common reference currency. First Forest secures a superior investment strategy along the full growth cycle by leveraging its asset management and forestry expertise (Investment Approach).

Trees are the most important terrestrial carbon sink and in consequence positive for climate and environment. Forestry Investments therefore can be efficiently used in strategies against global warming. This positive value for climate protection offers additional return potential, being it tradable carbon certificates or part of a philantrophic approach.

The overview above is simplified on purpose and has been put together to explain the basic investment logic of forestry investments. An illustration of a forestry plantation you will find here.
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Forestry Investments

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