Although DEL owns sizable resources, they are almost all concentrated in Arkansas, not a very high growth area for their real estate division. Also with the oncoming slowdown their timber product sales could suffer. By the way, whatever happened to their projected sale of agricultural assets in Louisiana? Feedback appreciated.....Thanks
I am pretty sure that they have sold, or contracted to sell, most of the farmland and are 1031 exchanging it for timberland.
Their real estate development in Arkansas may not be the envy of the nation, but they are a big fish in a small pond and have created good value. They are selling lots in Little Rock and Hot Springs, which are the attractive Arkansas markets. No trailer houses, here.
The arkansas timberland is concentrated, but also has some good points relative to federal restrictions in the far northwest on private lands. In fact, Clinton recently has stopped logging in a couple of the national forests in Arkansas, which will remove some supply and should create higher prices over time. I do expect some short-term price weakness due to the ice storm damage and salvage in Arkansas and NE Texas, but this will pass.