Research

Investment analyses for Timber Investments

Timber Finance is a leading investment analyst for Timber Investments and publishes business reports, index reports, market updates and white papers on a regular basis.

Author: SC Download the report as PDF.   1. Approach and Summary This valuation analysis looks at the current and historical price to book values of European and North American timber stocks in the timber construction value chain. Figure 1: Timber Construction Value Chain. Source: Timber Finance.   The period taken into consideration for historical […]
Author: S.C. 1. Executive Summary The third quarter was characterised by rebounding lumber prices, sharply falling long-term yields and a sudden spike in volatility across multiple asset classes. Inflation continues its downwards trajectory and monetary policy continues to normalise, moving in the right direction for the real estate and construction sectors.   2. Macro Overview […]
Author: SC   Timber stocks in the TF Forest-Based Construction Tracker range from forest owners to engineered wood products manufactureres and distributors located in both North America and Europe. These stocks are exposed to several market factors – the analysis presented here (download) quantifies the importance of different factors and tries to identify some drivers […]
Author: SC Download the report in PDF format.   1. Finnish Residential Construction Activity   As in other European countries, construction activity has slowed down, but the severity of the reduction in building permits and construction starts has been extraordinary. On a 12-month average basis, permits have fallen from almost 4’000 in 2021 to less […]
Author: S.C.   1. Executive Summary The Timber Finance Carbon & Storage Index was down -11.3% in Q2 in USD terms and down -11.5% YTD at the end of the quarter (30.06.2024). Performance during the quarter was volatile, broadly in line with the swings of the homebuilding sector. Macro weakness continues to affect the construction […]
Author: SC Download the report in PDF format.   1. The Swedish Residential Market   Swedish residential construction, as in other European countries such as Germany, suffered a very strong deceleration in 2022-2023 due to the rise in interest rates. The collapse in building permits was unprecedented when taken from peak to (current) trough, even […]
Author: SC Download the report in PDF format.   1. The French Residential Market   The French housing market is peculiar: it is characterised by a high vacancy rate of 8%[1], while it reportedly takes several months to find a studio in Paris[2] and apartments in Paris are estimated to be the most expensive in […]
Author: SC Download the report in PDF format.   1. Construction Activity The UK and Ireland are markets generally described as suffering from significant undersupply of homes[1]. The British government has had a goal of 300’000 homes a year since 2006, although the peak construction rate was reached in 2019-2020 at 243’000 homes after falling […]
Author: SC   1. Results Overview From a macro point of view, the first quarter of the year was characterised by rising sovereign bond yields on worries that central banks, especially the Fed, would keep interest rates higher for longer given the very resilient U.S. economy. Lumber prices trended higher during the quarter (before falling […]
Author: S.C. April marks the 1-year anniversary of the launch of the Timber Finance Forest-Based Construction Tracker. The tracker delivered a performance of +5.35% since launch, net of fess, as of end of April 2024. 1. Solid performance in a challenging macroeconomic environment The performance over the last year was solid despite the fact that […]

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