Background to forestry

UK commercial forestry plantations are an important source of sustainable softwood timber that is used in a range of industrial activities, including house building and construction and paper production.

With freehold land values and future demand for timber underpinning steady returns from timber growth and subsequent harvesting, commercial forestry plantations can provide a long-term steady return profile with acquirers willing to pay a locational premium for well-sited properties.

Beyond returns from timber growth, forestry typically delivers returns from increases in the value of timber, growth in the value of the underlying land and the infrastructure value of the plantations.

Participating in forestry

Elm Trading owns nine forests in the UK, with six in Scotland and three in Wales.  In total the forests cover over 6,800 gross hectares and are either open space, some with waterways planted with commercial trees, or commercial mixed broadleaves that also support biodiversity, in line with forestry requirements.

Why forestry is an attractive trading opportunity

• Physical asset with inherent organic growth
• Capital appreciation should be delivered as a consequence of the increasing demand for, and volume of timber as the commercial crops grow over the long term; higher yielding trees will deliver a greater volume of timber for use in timber products
• Commercial forests and woodlands are an important long term asset class, also providing diversification to shareholders in the UK