I am wading through Wells Timberland's 10-K. There is a significant data to digest. The one parcel of Timberland was acquired in mid-October 2007, so the 10-K reflects one quarter of operations. I have questions that need answers before I can make sensible comments on Timberland's status, especially in terms of timber sales and operations and interest expense.
One item that does not need clarification is that in January and February the REIT raised $12.4 million, and had raised a total of $55.5 million of investor capital. At a $6 million per month run rate, by the end of June Timberland should have an additional $24 million ($6 million for March, April, May and June). At year-end, the mezzanine debt had been paid down by $10.4 million. At the current run rate, it looks like the first $40 million payment (which at year-end was $29.6 million) at the end of June looks likely. The second payment of $30 million in August needs a ramped up run rate.