logo INVESTMENT UNIQUE BENEFITS The Unique Benefits of Investing in Timberland Low Volatility Timber offers a level of price stability over the long term that is more comparable to bonds than stocks. The biological and investment growth cycles are steady and predictable. In low-price years, timber can be left standing until more desirable pricing is available. Returns and Cash Yields The total return is enhanced by the biological growth of the timber as well as product class jumps. With proper acquisition, active management and disposition, rates of return can be enhanced and be structured to provide annual cash yields at relatively low risk levels. Favorable Supply and Demand Historically, demand for wood products has tracked closely with worldwide population growth. World population is expected to increase from 7.7 billion to 9.7 billion by the year 2050, according to World Population Prospects 2019 from the United Nations. Rapid Growth of Investment Investment in American timberland, particularly from institutional investors, continues to grow. This increase could ultimately push the price of timberland higher as buyers compete for available land. Flexible Harvesting Since a tree’s life cycle does not require it to be harvested at any particular time, it can be left standing during poor price periods. Liquidity Liquidity of the timberland investment is achievable in a moderate period of time. Diversification The investment performance of timberland has low equity correlation and extremely low fixed-income correlation. It also has a positive correlation to inflation. Timberland holdings, as a result, offer investors a hedge against market downturns and inflation. Tax Advantages Under current tax laws, timber investments receive favorable capital gains treatment on harvest sales. Loan interest is tax-deductible on non-recourse borrowing. The depletion allowance offers additional tax advantages. Environmental Responsibility Timber is a renewable, natural resource that provides ecosystems with benefits such as clean air, clean water, wildlife habitat and carbon sequestration. Conservation ensures the preservation of forest lands for future generations. More Information Contact us for more information about investing with Molpus Woodlands Group. IN THIS SECTION Why Invest with Molpus? Unique Benefits Potential Risks Acquisition Process Molpus Woodlands Group 654 North State Street Jackson, MS 39202 P: (601) 948-8733 F: (601) 352-7463 E: mwg@molpus.com Disclosure & Liability Notice © 2021 Molpus Woodlands Group Linkedin Icon All information contained herein is © 2021 Molpus Woodlands Group and The Molpus Company. All rights reserved. No material will be used without permission of Molpus Woodlands Group, LLC and/or the parties herein. Please view our full site disclosure & liability notice. All information placed on the website is for informational purposes only. No information herein constitutes an offer to sell or a solicitation of an offer to subscribe for or buy any security with respect to any fund or to provide any investment advice. In considering the performance of investments referred to in these materials, prospective timberland investors should keep in mind that prior performance of Molpus investments is not indicative of future results, and there can be no assurance that Molpus will achieve comparable results in the future.