COMPETITIVE RETURNS

The National Council of Real Estate Investment Fiduciaries ("NCREIF") publishes a timberland index patterned after the NCREIF Property Index, which is well known for measuring commercial real estate returns. NCREIF compiles the data from members who submit property return information specific to the properties they manage. This becomes the basis for the composite return figures for the timberland asset class.

Based on statistics compiled by The Campbell Group, timberland returns, represented by the NCREIF Timberland Index, have outperformed stocks and long-term corporate bonds over the last 18 years. The Campbell Group believes a real rate of return between six and eight percent is both achievable and sustainable over the life of the timberland asset.