ATP invests in timberland in USA and Australia
ATP’s subsidiary, ATP Timberland Invest K/S, invests in timberland in OECD countries. To date ATP Timberland Invest K/S has invested in North America and Australia. Timberlands fits well in ATP’s overall portfolio and is placed in ATPs inflation bucket.
Why does ATP invest in timberland?
Timberland investments are characterized by:
- relatively high risk adjusted return
- valuable risk-diversification opportunities
- stable value in times of high inflation - as opposed for e.g. bonds and equities
Since harvesting can be tailored to meet demand, timberland values are usually stable. If production (logging) is postponed, the value does not deteriorate. On the contrary, biological forest growth is 4-8 per cent per year.
Is it sustainable?
Timberlands owned by ATP are FSC-certified or managed after similar standards. The management standards thus balance the economic, social and environmental interests in the timberlands. When ATP buys timberland, it will bring these in compliance with standards for well managed forests.