WY Stock: Weyerhaeuser Dividend, Adjusted FAD and Debt (2026)

The $0.84 dividend against Adjusted FAD

Weyerhaeuser does not report funds from operations (FFO) or adjusted FFO, the measures used on our pages for Prologis and Realty Income. We searched all ten of its filings and releases we saved for “funds from operations” and found none. Its cash measure is Adjusted Funds Available for Distribution (Adjusted FAD), which the 10-K defines as “net cash from operations adjusted for capital expenditures and significant non-recurring items.” That makes it a stricter test than FFO, because every dollar of sawmill and timberland capital spending is taken out first. The company also adds back the cash contribution to its pension plan and the Monticello, Arkansas plant it is building, so the table shows the numbers before and after those add-backs.

What is added back. For 2025 the 10-K starts from $562 million of net cash from operations, subtracts $474 million of capital expenditures to get FAD of $88 million, then adds back a $200 million cash contribution to the U.S. qualified pension plan and $109 million of Monticello capital expenditures to reach $397 million. For the first half of 2026 the release adds back $93 million of Monticello spending and removes a $28 million product remediation insurance recovery. Whatever you think of the add-backs, the dividend is not covered even at the generous figure.

The dividend has not moved. Dividends paid per share were $1.66 in 2023, $0.94 in 2024 and $0.84 in 2025, and $0.21 in each of Q1 and Q2 2026 ($0.42 for the half). The 2024 figure includes a $0.14 supplemental dividend ($102 million) paid in the first quarter of 2024 on 2023 results. The Q4 2025 release says the company “increased our base dividend by 5 percent” in 2025. At the $26.75 closing price the 10-Q used on February 13, 2026 to value performance share units, $0.84 is 3.14% (our arithmetic; a historical price, not a current yield). The filings we read state no third-quarter or later change; the company announces dividends by press release, not in the filings we saved.

The framework is where the tension sits. The 10-Q says the company plans to supplement the base dividend with repurchases and/or a supplemental dividend “to achieve a targeted total return to shareholders of 75 to 80 percent of annual Adjusted Funds Available for Distribution.” The September 24, 2026 presentation repeats that the “Cash Return Target Remains Intact At 75-80% Of Adjusted FAD On An Annual Basis,” and says the base dividend is “supported by Timberlands & Strategic Land Solutions cash flow, even at the bottom of the cycle.” On the numbers above, the base dividend alone has used more than 100% of annual Adjusted FAD in 2024 (excluding the supplemental, 102.6%), 2025 and the last four quarters, which leaves nothing for a supplemental. The same presentation says a supplemental is “normally declared and paid annually in Q1, based on prior year results,” and 2025 Adjusted FAD was $397 million.

Which segment pays the dividend

Weyerhaeuser has three reporting segments. Real Estate, Energy and Natural Resources was renamed Strategic Land Solutions from the first quarter of 2026, so older pages and the 10-K use the former name. Adjusted EBITDA is the company's non-GAAP operating measure, before interest, taxes, depreciation and the basis of land sold.

The company's own words are that the base dividend rests on the two land-based segments. The table below sets each segment's Adjusted EBITDA against the cash dividends paid. These ratios are our arithmetic and come before interest ($273 million in 2025, $132 million in the first half of 2026), unallocated costs, taxes and capital spending ($474 million and $251 million), so they show where the earnings are, not how much cash is left.

Why only part of it can come from the mills. The 10-K says Weyerhaeuser qualifies as a REIT and “REIT income can be distributed to shareholders without first paying corporate level tax.” It owns most timberland through two REIT subsidiaries, western since tax year 2022 and southern since tax year 2025, and pays corporate tax on its taxable REIT subsidiaries (TRSs), “which include our Wood Products segment and a portion of our Timberlands and Real Estate, Energy and Natural Resources segments.” A risk factor adds: “We may be limited in our ability to fund distributions using cash generated through our TRSs.” That is the one structural fact a rent REIT does not have: a large share of the cash comes from factories that sit outside the REIT.

The first half of 2026 was helped by one-off Strategic Land Solutions income. Q1 Strategic Land Solutions Adjusted EBITDA was $193 million, including a $94 million conservation easement transaction in Climate Solutions with no repeat in Q2, when it was $129 million. The company raised its full-year 2026 outlook for the segment to about $450 million, up $25 million; the first half delivered $322 million.

Where the first-half 2026 cash came from and went

The cash flow statement in the Q2 10-Q shows how the dividend was paid while Adjusted FAD fell short.

Operations less capital expenditures was $200 million (our arithmetic), $103 million less than the dividends paid. Timberland sales covered it. Total debt fell from $5,572 million at December 31, 2025 to $5,425 million at June 30, 2026 ($122 million current plus $5,303 million long-term). The company says it had $527 million of cash, a $1.75 billion undrawn revolver that expires in June 2030 and $1.5 billion of commercial paper capacity. Repurchases are small: 409,734 shares for about $10 million in Q2, and $938 million of authorization remained at December 31, 2025 (about $918 million after the first half, our arithmetic). Diluted shares were 721.9 million in Q2 2026 against 723.9 million a year earlier.

What a $10 move in lumber or a $5 move in logs is worth

The 10-K gives five years of log and product volumes and prices but no dollar sensitivity. The company's September 24, 2026 investor presentation does, in dollars of annual EBITDA.

Wood Products is where the swings were. The company says lumber realizations rose 15% and OSB 3% from the Q1 to the Q2 2026 average, and Wood Products Adjusted EBITDA went from $71 million to $129 million. The 10-K's structural lumber sales divided by volume (our arithmetic, an approximation because net sales include some complementary lumber) was $759 per thousand board feet in 2021, $724 in 2022, $424 in 2024 and $430 in 2025.

The Q3 move, as of September 18. The September 24 presentation says lumber realizations were $10 per thousand board feet higher for the quarter to date than the Q2 average but $20 lower at the current price, and OSB $5 per thousand square feet lower on both measures. At the company's sensitivities that is about minus $100 million a year for lumber and minus $15 million for OSB, or $115 million (our arithmetic), before the lag between market prices and order files, which the company says exists. In the Q2 release the CEO said, “we are encouraged by the recent increase in pricing for lumber and western logs.” That was July 30; the September update moved the other way for lumber and OSB.

Acres, harvest and the land being sold

At December 31, 2025 the company sustainably managed owned or contracted timberlands in 17 states: 2.5 million acres in the West (Oregon and Washington), 6.7 million in the South and 1.2 million in the North. It owns 9.7 million of those acres and holds licences on more than 14 million acres in Canada. After the 2026 sales the September presentation shows 10.3 million U.S. acres against 4.1 million for Rayonier, which it says merged with PotlatchDeltic on January 30, 2026.

The West is 26% of harvest tons but nearly half of third-party log sales. Total fee harvest was up 1.3% on 2024 and 7.2% on 2021 (our arithmetic; 34,817 against 34,356 and 32,473 thousand tons). The 10-K timber inventory on owned and contracted U.S. land is about 594 million tons.

The 2025 and 2026 transactions.

The gains are special items and are excluded from Adjusted EBITDA; the proceeds are not in Adjusted FAD. Real estate sales are a smaller, recurring land business: 57,095 acres at an average $4,827 an acre in 2025 against 94,908 acres at $2,682 in 2024. Wood Products is also a capital spender: the company says it will invest about $500 million between 2025 and 2027 in a new TimberStrand plant in Monticello, Arkansas, expects about $300 million in 2026, and expects more than $100 million of annual Adjusted EBITDA at full operating capacity, with startup in 2027. Its 2026 to 2030 capital expenditure target is $400 to $450 million a year excluding that plant. Management's growth target is $1.5 billion of incremental Adjusted EBITDA by 2030 against a 2024 baseline, a goal, not a forecast.

Debt: 5.0 times net debt to Adjusted EBITDA

Net debt of $4.9 billion on $975 million of EBITDA is the number a dividend screen does not show: the ratio is high because EBITDA dropped (from $4.49 billion for the twelve months to March 2022, when lumber prices were high) while debt stayed between $5.05 billion and $5.80 billion over that time (company reconciliation). At the end of 2025 the 10-K showed $522 million of fixed-rate debt due in 2026 at 6.26%, $300 million in 2027 at 6.95%, nothing in 2028 on the fixed side, $750 million in 2029 at 4.00% and $1,050 million of variable-rate debt in 2028 (the $800 million term loan is swapped to fixed). In the second quarter of 2026 the company repaid $250 million of 4.75% notes, in July it repaid $122 million of 7.35% and 7.85% debentures, and it pushed two term loans ($300 million and $250 million) out to April 2031. The weighted rate on long-term debt was 5.11% at December 31, 2025 and 4.9% at July 31, 2026, but the leverage ratio is driven by the earnings denominator. Interest expense net of capitalized interest was $273 million in 2025 and $132 million in the first half of 2026.

What makes a timber REIT different from the REITs we cover

Weyerhaeuser is a REIT, but it is not a rent story. Read it next to our pages on Prologis, Realty Income and Public Storage and the differences are in the first column below.

For the structural question of listed against non-traded REITs, see our page on non-traded REITs against publicly traded REITs, and for how REIT dividends are taxed, return of capital and REIT distributions. Weyerhaeuser's filings do not give the taxable split of its dividend in the documents we saved, so we make no claim on it here.

The Q3 2026 outlook and what to watch before the 10-Q

The Q2 release and the September 24 update give the company's own expectations for the third quarter.

On those guides, and before the price effects above, Q3 Adjusted EBITDA would land below the $310 million of Q2, with unallocated costs of $71 million in Q2 as the reference. The Q3 earnings release and 10-Q are the first filings that show how much of that reached cash.

What a holder can do with this

This page is analysis of public documents, not investment, legal or tax advice. What the filings let you check yourself:

• Compare the dividend with Adjusted FAD, not earnings. 2025 cash dividends of $606 million were 152.6% of Adjusted FAD of $397 million, and the last four quarters were 169.0%. Q2 2026 alone was 46.7%, so a good quarter does not change the year.
• Read the Wood Products line next to the Timberlands line. Wood Products Adjusted EBITDA fell from $661 million to $250 million in 2025 while Timberlands rose to $581 million. The 10-K says the company may be limited in using TRS cash for distributions.
• Put the price sensitivities next to the quarter. A $20 per thousand board feet fall in lumber is about $100 million a year at the company's own rule of thumb.
• Count what is sold to pay. $306 million of timberland proceeds in the first half funded a dividend that operations less capital spending ($200 million) did not.
• Track four dated items in the Q3 filings: Adjusted FAD against about $151 million of quarterly dividends, net debt to Adjusted EBITDA (5.0x now), whether the Q3 guidance for Strategic Land Solutions and Wood Products held, and any change in the base dividend or repurchases.
• Count the exposure you already have. If you also hold non-traded REITs, a timber position is a different risk (commodity prices and land sales) from the rent and occupancy risk in those funds.

If a large part of your income depends on this one payer, a conversation with a qualified adviser about how it fits with the rest of your holdings may be worth having.

FAQ

All figures are from Weyerhaeuser Company (SEC CIK 106535) filings read on EDGAR on October 16, 2026: Form 10-K for 2025 (accession 0001193125-26-051422, filed February 13, 2026); Forms 10-Q for the quarters ended March 31, 2026 (0001193125-26-201473, filed May 1, 2026) and June 30, 2026 (0001193125-26-328606, filed July 31, 2026); earnings releases attached to Forms 8-K for Q4 2025 (0001193125-26-029351), Q1 2026 (0001193125-26-197281) and Q2 2026 (0001193125-26-326124); and the investor presentation attached to the Form 8-K of September 24, 2026 (0001193125-26-400727), which is also the source of the price sensitivities, the net debt to Adjusted EBITDA history, the debt profile, the Q3 outlook update and the Rayonier comparison. Percentages of Adjusted FAD, segment shares of the dividend, per-acre and per-board-foot figures, the last-four-quarter totals, the sources and uses table and the Q3 illustration are our arithmetic from those rows. Adjusted EBITDA, Adjusted FAD, FAD and net debt to Adjusted EBITDA are the company's own non-GAAP measures and definitions. This is analysis of public documents, not investment, legal or tax advice.