Molpus Timber Investment Group
Registered Investment Advisors
Through many decades of changing market dynamics, changing economics—on a local, national and global level—as well as dramatic changes in timber management and timber products, The Molpus Woodlands Group, LLC (MWG), a registered investment advisor, has developed a reputation for being knowledgeable, resourceful and responsible in its business operations.
At MWG and its sister operating companies (collectively "Molpus"), we still hold true to our structure that was innovative and trailblazing to the timberland investment management organization (TIMO) industry. With a history in the timber industry dating back to 1905, Molpus finds itself as one of the oldest timber-related companies in the nation. At Molpus, we believe our deep history and qualities of stability combined with our sophisticated, entrepreneurial edge have allowed us to set our company apart and emphasize our main selling point: Since inception, Molpus' client investments performed in excess of the benchmark for TIMOs in the U.S. (known as the National Council for Real Estate Investment Fiduciaries or NCREIF).
Performance: Benchmark Comparison Since 2003 (1)
1) Returns are gross of management fees and audited through 12/31/2011; Source: National Council of Real Estate Investment Fiduciaries, Russell 2000 Index (DRI), S&P 500 Index (TR), Barclays Aggregate Bond Index (all maturities) Merrill Lynch 3 Month T-bills Index, Molpus Woodlands Group, NCREIF and PerTrac.
In considering 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.
When you consider Molpus' century-old history in the timber industry and the fact that Molpus is in the third generation of ownership and management by the Molpus family, it is of little surprise to find a tradition and passion for striving for excellence. Molpus still holds tight to the belief that innovative thinking, combined with opportunity, leads to success. We will continue to be a disciplined TIMO with an entrepreneurial edge in the future.
At Molpus, we adhere to a vertically integrated business structure where accounting, acquisition, forestry, information systems (including GIS) and legal functions are handled or supervised by in-house experts as opposed to being outsourced to unrelated third-party contractors. Since inception, Molpus has acquired more than 2.8 million acres for clients valued at approximately $2.9 billion. Our unique vertical integration benefits our clients by allowing Molpus to:
- Improve due diligence by leveraging Molpus' depth and breath of experience when analyzing opportunities;
- Enhance deal flow by sourcing acquisition opportunities from Molpus' broad-ranging industry contacts;
- Optimize biological growth rates and harvest by coordinating intensive asset management with a given investor's risk/return objectives;
- Maximize timber sale prices by using Molpus' bargaining power and extensive knowledge of local markets;
- Optimize "value added" opportunities of higher and better use land sales, alternative energy opportunities, conservation easements, endangered species habitats, etc. with an experienced in-house team; and
- Enhance client returns by aligning client performance with incentive bonus program for all Molpus employees.
Over the course of a calendar year, Molpus receives numerous acquisition opportunities and evaluates them before actually making a recommendation on a select property to a client. Please see "Acquisitions Process" for more information.
As for on-the-ground management of your timberland investment, Molpus, through its sister operating company, Molpus Timberlands Management, LLC (MTM), uses its vertically integrated approach to manage its clients' timberland investments on a day-to-day basis. From the use of sophisticated growth and cash flow models for developing management plans to the uses of the highest technologies available for timberland management, Molpus is able to leverage in-house expertise in establishing and implementing the appropriate management strategies for a given client's investment. The technologies utilized include Geographic Information System (GIS), satellite/infra-red imaging, Timberlands Information Management System (TIMMS) and Stand Treatment Economic Assessment Model (STEAM). TIMMS is a customized development for Molpus integrating the many functions of the company including land acquisitions, legal services, value-added, timber inventory, timber accounting and forest management. STEAM, developed in-house by Molpus employees, is a tool to financially assess the silvicultural inputs, economic parameters and timber outputs of intensive Southern pine plantation management.
Molpus-managed properties are certified to the Sustainable Forestry Initiative® 2010-2014 Standards and also comply with the Best Management Practices for each state in which we operate (as promulgated by each state's forestry association). Molpus is on the forefront of capturing value-added opportunities such as carbon sequestration, alternative energy, conservation easements and mitigation banks. These important opportunities serve to protect the environment and enhance the value of a timberland investment.
Why Molpus? From the time of the Model T car and the invention of the airplane to the age of GIS software and satellite imagery, Molpus has proven that its legacy of more than a century of timber-related experience and knowledge is beneficial to its timberland investors. When this experience and knowledge base is coupled with Molpus' clients' strong performance, a timberland investor will see that Molpus' legacy will make for a strong, trustworthy investment partner for your timberland investments.
Why Invest With Molpus?