Acadian Timber: The Mirage of Dividend Yield
By David Desjardins
1.69K Followers
Summary
Acadian Timber owns 775,000 acres of timberlands in New Brunswick, in addition to 300,000 acres in Maine. Despite being one of the largest freehold timberland owners in the Eastern basin, the company remains a relatively small player compared to the timberland REITs in the United States.
With an enterprise value of approximately CAD$380 million, ADN: CA is currently valued at about CAD$350 (SD250) per acre. This valuation is well below the price levels seen in recent private transactions in New Brunswick.
In the first nine months of 2025, Acadian paid a total of CAD$15.6 million in dividends, while free cash flow generation amounted to only CAD$4.8 million. This current dividend policy places unnecessary strain on the company’s balance sheet, particularly considering the timber industry is undergoing a severe downturn.
In my view, a dividend cut would be a net positive for the long-term health of Acadian Timber’s balance sheet.
Portfolio Overview
After recently covering the three publicly listed timberland REITs in the United States, I now turn my attention to Acadian Timber (OTCPK: ACAZF) (ADN: CA).
About the Author
For almost a decade, I held research analyst positions with various investment firms, mostly based in Toronto. I began in sell-side research at a Canadian bank, then moved to a hedge fund, followed by a family office, and finally concluded my career in wealth management.
I was just 20 years old on my first day on Bay Street—a milestone I will always remember. Coming from a small French-speaking town in Québec, I had worked incredibly hard to reach that point. Earning my CFA and CAIA designations by age 25 was another important achievement on my journey. I was a young man with big dreams, eager to make an impact.
However, life soon taught me a painful lesson: before conquering the world, a man must first conquer himself by exploring the depths of his own abyss. Only through this self-discovery can one shed naivety and become truly capable of love.
For the past three years, I’ve been living in a yurt deep in the boreal forest, approximately 100 kilometers away from the nearest paved road or grocery store. Surrounded by a forest full of birds and beside a lake abundant with fish, I draw water from a nearby creek and heat my home with local white birch and quaking aspen.
If I need anything from town, I have more than enough financial means to cover my needs. Now 30 years old, I am as free as the birds in the sky. What more could I ask for?
In all humility and gratitude, I give thanks to this grand symphony we call life.
Analyst’s Disclosure
I/we have no stock, option, or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it other than from Seeking Alpha. I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha’s Disclosure
Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor.
Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker, US investment adviser, or investment bank. Our analysts are third-party authors, including both professional and individual investors, who may not be licensed or certified by any institute or regulatory body.
