FINANCE: UK forestry returned 15.8% in 2013, a lower rate than 2012’s 18.6%, but a continuation of the sector’s strong performance, according to the IPD UK Annual Forestry Index.
Forestry has returned 22.2%, 19.7% and 17.9% in three, five and 10 year horizons respectively, with no years of negative returns, even during the downturn.
The south of Scotland, which represents 50% of the total value of the IPD Forestry Index, was the highest-returning region with a total return of 23.3% in 2013.
Mark Weedon, vice president, IPD, said: “Forestry is a long-term investment and has shown low correlation with equity performance, but does show performance trends in response to the fundamental return drivers. Land-based assets are providing an alternative home for cash deposits in times of low interest rates and for investors in genera, seeking less volatile markets.”
The IPD Forestry Index is based on 143 holdings with a combined capital value of £237.2m.
sophia.furber@estatesgazette.com
