COURSE SYLLABUS

Course Number: FORY 5620 / 6620

Course Title: Forest Finance and Investment

Course Instructor: Mr. Richard W. Hall

Credit Hours: 3

Prerequisites: Basic finance / economics

Co-requisite: None

Objectives

Principles of corporate and real estate finance as applied to commercial timberland and the place of this asset class in individual and institutional portfolios.

Recommended Textbooks / References (no assigned textbooks)

Zinkhan et al, 1992, Timberland Investments

Cottle, Murray, Block Graham and Dodd’s Security Analysis

SparkCharts - Finance

Grading and Evaluation Procedures

Final Exam – 30%

Class Project – 30%

Mid-term – 20%

Weekly Writing & Problem Assignments – 10%

Class Presentations / Short Quizzes – 10%

Conventional 10 point grading system:

90 – 100 = A

80 – 89 = B

70 – 79 = C

60 – 69 = D

Below 60 = F

Course Requirements and Procedures

Attendance and participation expected.

Unannounced quizzes a possibility.

Policies

Students with Disabilities

Students who need special accommodations should make an appointment to discuss the Accommodation Memo. If you do not have an Accommodation Memo, but need special accommodations, contact The Program for Students with Disabilities in 1244 Haley Center (844-2096 V/TTY).

Academic Honesty

Auburn University expects students to pursue their academic work with honesty and integrity. Violations of the Student Academic Honesty Code and potential sanctions are detailed under Title XII of the SGA Code of Laws, which can be found in the Tiger Cub.

Justification for Graduate Credit

This course is an in-depth examination of finance and investment with respect to private-sector timberland. The role of this asset class is examined using conventional financial measures and Capital Asset Pricing Theory, and statistically-derived asset allocation schemes are developed and analyzed. Such development and analysis involves rigorous application of accounting, economics, law, finance, and statistics within very specific settings and warrants graduate credit for the successful completion of the course material.

Graduate students will be expected to complete additional readings in addition to those assigned to the undergraduate students. Graduate students will also have two supplemental class sessions, one covering portfolio allocation and the other covering risk management principles and techniques. As part of the class project, graduate students will be asked to prepare additional materials related to these two specific topics.

Outline of Course Content

WeekTopics

1Overview / History of Timberland Investments

2Timberland in a Portfolio(with supplemental graduate class period)

3Timberland Valuation and Appraisal Part 1

4Timberland Valuation and Appraisal Part 2

5Risk Management for Timberland Investors Part 1(with supplemental graduate class period)

6Risk Management for Timberland Investors Part 2

7Mid-term

8Financing Timberland Investments

9Structuring Timberland Investments

10Tax Strategies and Implications for Timberland Investments

11Managing Timberland Investments

12Environmental, Social and Governance (ESG) Reporting and Forest Certification

13Alternative Uses for Timberland / HBU

14International Timberland Investments

15Ethical Considerations and Professionalism

Environmental, Social and Governance (ESG) Reporting and Forest Certification

Section 12 Outline

(3 classroom hours)

Environmental, Social, Governance (ESG) Reporting

History and Evolution of ESG Reporting in Business and the Financial Markets

Overview of Specific ESG Reporting Standards

  • Ceres Roadmap for Sustainability
  • Global Reporting Initiative
  • Sustainability Accounting Standards Board

Cost / Benefit Considerations for ESG Reporting

Case Studies

  • U.S. Forest Products Company
  • U.S. Financial Institution
  • Developing Markets

Forest Certification

History and Evolution of Forest Certification Regimes

Overview of Specific Forest Certification Regimes

  • Sustainable Forestry Initiative (SFI)
  • Forest Stewardship Council (FSC)
  • NAFO Sustainability Principles
  • American Tree Farm System

Cost / Benefit Considerations for Forest Certification

Case Studies

  • U.S. Forest Products Company
  • U.S. Retail Company
  • Foreign Company