CatchMark Timber Trust, Inc. - Quarter Report: 2020 September (Form 10-Q)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended September 30, 2020


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to

Commission File Number 001-36239

CATCHMARK TIMBER TRUST, INC.

(Exact name of registrant as specified in its charter)


Maryland						20-3536671
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification Number)

5 Concourse Parkway, Suite 2650, Atlanta, GA						30328
(Address of principal executive offices)						(Zip Code)

(855) 858-9794

(Registrant’s telephone number, including area code)


N/A

(Former name, former address, and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of exchange on which registered
Class A Common Stock, $0.01 Par Value Per Share	CTT	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer," “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☐

Accelerated filer

☒

Non-accelerated filer

☐

Smaller reporting company

☒

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Number of shares outstanding of the registrant’s common stock, as of October 28, 2020: 48,765,497 shares

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GLOSSARY


The following abbreviations or acronyms may be used in this document and shall have the adjacent meanings set forth below:

AFM						American Forestry Management, Inc.
ASC						Accounting Standards Codification
ASU						Accounting Standards Update
CoBank						CoBank, ACB
Common Stock						Class A common stock, $0.01 par value per share of CatchMark Timber Trust, Inc.
Code						Internal Revenue Code of 1986, as amended
EBITDA						Earnings before Interest, Taxes, Depletion, and Amortization
FASB						Financial Accounting Standards Board
FCCR						Fixed Charge Coverage Ratio
FRC						Forest Resource Consultants, Inc.
GAAP						U.S. Generally Accepted Accounting Principles
GP						Georgia-Pacific WFS LLC
HBU						Higher and Better Use
HLBV						Hypothetical Liquidation at Book Value
IP						International Paper Company
LIBOR						London Interbank Offered Rate
LTC						Long-Term Contract
LTIP						Long-Term Incentive Plan
LTV						Loan-to-Value
MBF						Thousand Board Feet
MPERS						Missouri Department of Transportation & Patrol Retirement System
NYSE						New York Stock Exchange
Rabobank						Cooperatieve Centrale Raiffeisen-Boerenleenbank, B.A.
REIT						Real Estate Investment Trust
SEC						Securities and Exchange Commission
SRP						Share Repurchase Program
TRS						Taxable REIT Subsidiary
U.S.						United States
VIE						Variable Interest Entity
WestRock						WestRock Company

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FORM 10-Q

CATCHMARK TIMBER TRUST, INC.

TABLE OF CONTENTS

Page No.

PART I. FINANCIAL INFORMATION

Item 1.

Condensed Consolidated Financial Statements (unaudited)

Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019

Consolidated Statements of Operations for the Three Months and Nine Months Ended September 30, 2020 and 2019

Consolidated Statements of Comprehensive Loss for the Three Months and Nine Months Ended September 30, 2020 and 2019

Consolidated Statements of Equity for the Three Months and Nine Months Ended September 30, 2020 and 2019

Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2020 and 2019

Condensed Notes to Consolidated Financial Statements

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Item 4.

Controls and Procedures

PART II. OTHER INFORMATION

Item 1.

Legal Proceedings

Item 1A.

Risk Factors

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

Item 6.

Exhibits

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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements contained in this Quarterly Report on Form 10-Q of CatchMark Timber Trust, Inc. and subsidiaries (“CatchMark,” “we,” “our,” or “us”) may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). In addition, CatchMark, or its executive officers on CatchMark's behalf, may from time to time make forward-looking statements in other reports and documents CatchMark files with the SEC or in connection with written or oral statements made to the press, potential investors, or others. We intend for all such forward-looking statements to be covered by the applicable safe harbor provisions for forward-looking statements contained in the Securities Act and the Exchange Act.

Forward-looking statements can generally be identified by our use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “continue,” or other similar words. However, the absence of these or similar words or expressions does not mean that a statement is not forward-looking. Forward looking statements are not guarantees of performance and are based on certain assumptions, discuss future expectations, describe plans and strategies, contain projections of results of operations or of financial condition or state other forward-looking information. Forward-looking statements in this report, include, but are not limited to, that we manage our operations to generate highly-predictable and stable cash flow from sustainable harvests, opportunistic land sales and asset management fees that comfortably cover our dividend throughout the business cycle; that we are bolstered by our delivered wood model and fiber supply agreements, which provide a steady source of demand from reliable counterparties; that our investment management business provides access to long-term institutional capital to acquire, own and manage timberland properties to provide sustainable growth for stockholders; that our active debt and interest rate management strategy provides us attractive borrowing costs; that we have no plans to reduce spending on capital investment projects; the anticipated impact of the novel coronavirus (COVID-19) on our business and the businesses of our unconsolidated joint ventures; that we believe we will meet our 2020 harvest plan; property performance and anticipated growth in our portfolio; expected uses of cash generated from operations, debt financings and debt and equity offerings; expected sources and adequacy of capital resources and liquidity; our anticipated distribution policy; change in depletion rates, merchantable timber book value and standing timber inventory volume; anticipated harvest volume and mix of harvest volume; and other factors that may lead to fluctuations in future net income (loss). Forward-looking statements in this report also relate to the Triple T Joint Venture (as defined herein), including the expected benefits of the amended wood supply agreement between the Triple T Joint Venture and GP, including market-based pricing on timber sales, increased reimbursement for extended haul distances, the ability for the Triple T Joint Venture to sell timber to other third parties, the increased ability to sell large timberland parcels to third-party buyers, and an extended term with optimized harvest volume obligations to enhance and preserve long-term asset value.

Forward-looking statements are based on a number of assumptions involving judgments and are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from our historical experience and our present expectations. Such risks and uncertainties related to us and the Triple T Joint Venture include those discussed in Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2019 and our subsequent reports filed with the SEC. Accordingly, readers are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date that this report is filed with the SEC. We do not intend to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

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PART I FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The information furnished in the accompanying consolidated balance sheets and related consolidated statements of operations, comprehensive loss, equity, and cash flows reflects all adjustments, consisting solely of normal and recurring adjustments, that are, in management’s opinion, necessary for a fair and consistent presentation of the aforementioned financial statements.

The accompanying consolidated financial statements should be read in conjunction with the condensed notes to our consolidated financial statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in this Quarterly Report on Form 10-Q and with our Annual Report on Form 10-K for the year ended December 31, 2019. Our results of operations for the three months and nine months ended September 30, 2020 are not necessarily indicative of the operating results expected for the full year.

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CATCHMARK TIMBER TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in thousands, except for per-share amounts)



	September 30, 2020		December 31, 2019
Assets:
Cash and cash equivalents	$	8,034	$	11,487
Accounts receivable	8,090		7,998
Prepaid expenses and other assets	6,435		5,459
Operating lease right-of-use asset (Note 7)	2,903		3,120
Deferred financing costs	189		246
Timber assets (Note 3):
Timber and timberlands, net	590,297		633,581
Intangible lease assets	6		9
Investments in unconsolidated joint ventures (Note 4)	1,838		1,965
Total assets	$	617,792	$	663,865

Liabilities:
Accounts payable and accrued expenses	$	5,923	$	3,580
Operating lease liability (Note 7)	3,054		3,242
Other liabilities	36,086		10,853
Notes payable and lines of credit, net of deferred financing costs (Note 5)	437,236		452,987
Total liabilities	482,299		470,662

Commitments and Contingencies (Note 7)	—		—

Stockholders’ Equity:
Class A Common stock, $0.01 par value; 900,000 shares authorized; 48,765 and 49,008 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively	488		490
Additional paid-in capital	727,767		729,274
Accumulated deficit and distributions	(563,041)		(528,847)
Accumulated other comprehensive loss	(31,204)		(8,276)
Total stockholders’ equity	134,010		192,641
Noncontrolling Interests	1,483		562
Total equity	135,493		193,203
Total liabilities and equity	$	617,792	$	663,865

See accompanying notes.

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CATCHMARK TIMBER TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(in thousands, except for per-share amounts)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Revenues:
Timber sales	$	18,060	$	19,706	$	52,399	$	52,530
Timberland sales	2,430		2,264		8,882		12,578
Asset management fees	3,118		3,436		8,950		9,119
Other revenues	1,005		974		3,111		3,386
	24,613		26,380		73,342		77,613
Expenses:
Contract logging and hauling costs	7,688		8,269		21,943		22,778
Depletion	7,286		8,235		20,934		19,533
Cost of timberland sales	1,926		2,081		6,811		10,562
Forestry management expenses	1,666		1,656		5,171		4,982
General and administrative expenses	2,768		2,984		13,059		9,550
Land rent expense	114		125		334		400
Other operating expenses	1,458		1,341		4,679		4,614
	22,906		24,691		72,931		72,419

Other income (expense):
Interest income	1		80		51		142
Interest expense	(3,563)		(4,472)		(11,590)		(13,803)
Gain on large dispositions	—		7,197		1,274		7,961
	(3,562)		2,805		(10,265)		(5,700)

Income (loss) before unconsolidated joint ventures	(1,855)		4,494		(9,854)		(506)
Loss from unconsolidated joint ventures (Note 4)	(2,294)		(25,051)		(4,727)		(81,011)
Net loss	$	(4,149)	$	(20,557)	$	(14,581)	$	(81,517)

Weighted-average common shares outstanding - basic and diluted	48,766		49,008		48,833		49,049

Net loss per share - basic and diluted	$	(0.09)	$	(0.42)	$	(0.30)	$	(1.66)

See accompanying notes.

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CATCHMARK TIMBER TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED)

(in thousands)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Net loss	$	(4,149)	$	(20,557)	$	(14,581)	$	(81,517)
Other comprehensive income (loss):
Market value adjustment to interest rate swaps	3,799		(3,104)		(22,928)		(14,025)
Comprehensive loss	$	(350)	$	(23,661)	$	(37,509)	$	(95,542)

See accompanying notes.

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CATCHMARK TIMBER TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED)

(in thousands, except for per-share amounts)


	Common Stock			Additional Paid-In Capital		Accumulated Deficit and Distributions		Accumulated Other Comprehensive Income (Loss)		Total Stockholders’ Equity		Noncontrolling Interests		Total Equity
	Shares	Amount
Balance, December 31, 2019	49,008	$	490	$	729,274	$	(528,847)	$	(8,276)	$	192,641	$	562	$	193,203
Common stock issued pursuant to:
LTIP, net of forfeitures and amounts withheld for income taxes	91	1		215		—		—		216		691		907
Dividends/distributions ($0.135 per share/unit)	—	—		—		(6,564)		—		(6,564)		(84)		(6,648)
Repurchase of common stock	(352)	(4)		(2,550)						(2,554)		—		(2,554)
Net loss	—	—		—		(4,249)		—		(4,249)		—		(4,249)
Other comprehensive loss	—	—		—		—		(24,478)		(24,478)		—		(24,478)
Balance, March 31, 2020	48,747	$	487	$	726,939	$	(539,660)	$	(32,754)	$	155,012	$	1,169	$	156,181
Common stock issued pursuant to:
LTIP, net of forfeitures and amounts withheld for income taxes	33	1		537		—		—		538		125		663
Dividends/distributions ($0.135 per share/unit)	—	—		—		(6,524)		—		(6,524)		(17)		(6,541)
Repurchase of common stock	(9)	—		(67)		—		—		(67)		—		(67)
Net loss	—	—		—		(6,183)				(6,183)		—		(6,183)
Other comprehensive loss	—	—		—		—		(2,249)		(2,249)		—		(2,249)
Balance, June 30, 2020	48,771	$	488	$	727,409	$	(552,367)	$	(35,003)	$	140,527	$	1,277	$	141,804
Common stock issued pursuant to:
LTIP, net of forfeitures and amounts withheld for income taxes	(6)	—		358		—		—		358		218		576
Dividends/distributions ($0.135 per share/unit)	—	—		—		(6,525)		—		(6,525)		(12)		(6,537)
Repurchase of common stock	—	—		—		—		—		—		—		—
Net loss	—	—		—		(4,149)		—		(4,149)		—		(4,149)
Other comprehensive income	—	—		—		—		3,799		3,799		—		3,799
Balance, September 30, 2020	48,765	$	488	$	727,767	$	(563,041)	$	(31,204)	$	134,010	$	1,483	$	135,493

See accompanying notes.

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CATCHMARK TIMBER TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED) (CONTINUED)

(in thousands, except for per-share amounts)


	Common Stock			Additional Paid-In Capital		Accumulated Deficit and Distributions		Accumulated Other Comprehensive Income (Loss)		Total Stockholders’ Equity		Noncontrolling Interests		Total Equity
	Shares	Amount
Balance, December 31, 2018	49,127	$	492	$	730,416	$	(409,260)	$	8	$	321,656	$	—	$	321,656
Common stock issued pursuant to:
LTIP, net of forfeitures and amounts withheld for income taxes	92	1		292		—		—		293		—		293
Dividends to common stockholders ($0.135 per share)	—	—		—		(6,578)		—		(6,578)		—		(6,578)
Repurchase of common stock	(136)	(1)		(1,003)						(1,004)		—		(1,004)
Net loss	—	—		—		(30,395)		—		(30,395)		—		(30,395)
Other comprehensive loss	—	—		—		—		(3,941)		(3,941)		—		(3,941)
Balance, March 31, 2019	49,083	$	492	$	729,705	$	(446,233)	$	(3,933)	$	280,031	$	—	$	280,031
Common stock issued pursuant to:
LTIP, net of forfeitures and amounts withheld for income taxes	17	—		490		—		—		490		—		490
Dividends to common stockholders ($0.135 per share)	—	—		—		(6,578)		—		(6,578)		—		(6,578)
Repurchase of common stock	(135)	(2)		(1,403)		—		—		(1,405)		—		(1,405)
Net loss	—	—		—		(30,565)		—		(30,565)		—		(30,565)
Other comprehensive loss	—	—		—		—		(6,980)		(6,980)		—		(6,980)
Balance, June 30, 2019	48,965	$	490	$	728,792	$	(483,376)	$	(10,913)	$	234,993	$	—	$	234,993
Common stock issued pursuant to:
LTIP, net of forfeitures and amounts withheld for income taxes	100	1		802		—		—		803		—		803
Dividends to common stockholders ($0.135 per share)	—	—		—		(6,555)		—		(6,555)		—		(6,555)
Repurchase of common stock	(58)	(1)		(594)		—		—		(595)		—		(595)
Net loss	—	—		—		(20,557)		—		(20,557)		—		(20,557)
Other comprehensive loss	—	—		—		—		(3,104)		(3,104)		—		(3,104)
Balance, September 30, 2019	49,007	$	490	$	729,000	$	(510,488)	$	(14,017)	$	204,985	$	—	$	204,985

See accompanying notes.

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CATCHMARK TIMBER TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(in thousands)


	Nine Months Ended September 30,
	2020		2019
Cash Flows from Operating Activities:
Net loss	$	(14,581)	$	(81,517)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depletion	20,934		19,533
Basis of timberland sold, lease terminations and other	6,988		10,329
Stock-based compensation expense	3,207		1,952
Noncash interest expense	2,469		816
Other amortization	152		170
Gain on large dispositions	(1,274)		(7,961)
Loss from unconsolidated joint ventures	4,727		81,011
Operating distributions from unconsolidated joint ventures	273		789
Interest paid under swaps with other-than-insignificant financing element	2,904		—
Changes in assets and liabilities:
Accounts receivable	(1,092)		2,007
Prepaid expenses and other assets	(5)		221
Accounts payable and accrued expenses	1,959		138
Other liabilities	986		1,025
Net cash provided by operating activities	27,647		28,513

Cash Flows from Investing Activities:
Capital expenditures (excluding timberland acquisitions)	(4,332)		(3,031)
Investment in unconsolidated joint ventures	(5,000)		—
Distributions from unconsolidated joint ventures	127		4,019
Net proceeds from large dispositions	20,863		25,151
Net cash provided by investing activities	11,658		26,139

Cash Flows from Financing Activities:
Repayment of notes payable	(20,850)		(20,064)
Proceeds from notes payable	5,000		—
Financing costs paid	(1,019)		(48)
Interest paid under swaps with other-than-insignificant financing element	(2,904)		—
Dividends/distributions paid	(19,726)		(19,711)
Repurchase of common shares	(2,207)		(3,004)
Repurchase of common shares for minimum tax withholding	(1,052)		(365)
Net cash used in financing activities	(42,758)		(43,192)
Net change in cash and cash equivalents	(3,453)		11,460
Cash and cash equivalents, beginning of period	11,487		5,614
Cash and cash equivalents, end of period	$	8,034	$	17,074

See accompanying notes.

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CATCHMARK TIMBER TRUST, INC. AND SUBSIDIARIES

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2020 (UNAUDITED)

1. Organization

CatchMark Timber Trust Inc. ("CatchMark Timber Trust") (NYSE: CTT) owns and operates timberlands located in the United States and has elected to be taxed as a REIT for federal income tax purposes. CatchMark Timber Trust acquires, owns, operates, manages, and disposes of timberland directly, through wholly-owned subsidiaries, or through joint ventures. CatchMark Timber Trust was incorporated in Maryland in 2005 and commenced operations in 2007. CatchMark Timber Trust conducts substantially all of its business through CatchMark Timber Operating Partnership, L.P. (“CatchMark Timber OP”), a Delaware limited partnership. CatchMark Timber Trust is the general partner of CatchMark Timber OP, possesses full legal control and authority over its operations, and owns 99.82% of its common partnership units. CatchMark LP Holder, LLC (“CatchMark LP Holder”), a Delaware limited liability company and wholly-owned subsidiary of CatchMark Timber Trust, is a limited partner of CatchMark Timber OP and owns 0.01% of its common partnership units. The remaining 0.17% of CatchMark Timber OP’s common partnership units are owned by current and former officers and directors of CatchMark Timber Trust. In addition, CatchMark Timber Trust conducts certain of its business through CatchMark Timber TRS, Inc. (“CatchMark TRS”), a Delaware corporation formed as a wholly-owned subsidiary of CatchMark Timber OP in 2006. CatchMark TRS is a taxable REIT subsidiary. Unless otherwise noted, references herein to CatchMark shall include CatchMark Timber Trust and all of its subsidiaries, including CatchMark Timber OP, and the subsidiaries of CatchMark Timber OP, including CatchMark TRS.

Risks and Uncertainties

CatchMark is subject to risks and uncertainties as a result of the COVID-19 pandemic. The extent of the impact of the COVID-19 pandemic on CatchMark’s business and that of its customers and contractors is uncertain and difficult to predict. The rapid spread of the outbreak has caused significant disruptions in the U.S. and global economies and capital markets, and the impact is expected to continue to be significant during the remainder of 2020 and into 2021. Such economic disruption could have a material adverse effect on CatchMark’s business due to declines in sawtimber harvest volumes resulting from a deterioration in the housing market; a decline in production level at CatchMark’s customers' mills due to instances of COVID-19 among their employees or decreased demand for their products; the inability to complete timberland sales due to the inability of potential buyers to complete title searches and other customary due diligence, including as a result of state and local government office closures; effects on key employees, including operational management personnel and those charged with preparing, monitoring and evaluating CatchMark’s financial reporting and internal controls; and market volatility and market downturns negatively impacting the trading of CatchMark’s common stock.

The severity of the impact of the COVID-19 pandemic on CatchMark’s business will depend on a number of factors, including, but not limited to, the duration and severity of the pandemic and the extent and severity of the impact on CatchMark’s customers, all of which are uncertain and cannot be predicted. CatchMark’s future results of operations and liquidity could be adversely impacted by uncertain customer demand and the impact of any initiatives or programs that CatchMark may undertake to address financial and operational challenges faced by its customers. As of the date of issuance of these condensed consolidated financial statements, the extent to which the COVID-19 pandemic may materially impact CatchMark’s financial condition, liquidity, or results of operations is uncertain. See Note 5 — Notes Payable and Lines of Credit for additional information on CatchMark’s outstanding indebtedness and debt covenants.

2. Summary of Significant Accounting Policies

Basis of Presentation and Principles of Consolidation

The consolidated financial statements of CatchMark have been prepared in accordance with the rules and regulations of the SEC, including the instructions to Form 10-Q and Article 10 of Regulation S-X and do not include all the

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information and footnotes required by GAAP for complete financial statements. In the opinion of management, the financial statements for the unaudited interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair and consistent presentation of the results for such periods. Results for these interim periods are not necessarily indicative of results for a full year.

CatchMark’s consolidated financial statements include the accounts of CatchMark and any VIE in which CatchMark is deemed the primary beneficiary. With respect to entities that are not VIEs, CatchMark's consolidated financial statements also include the accounts of any entity in which CatchMark owns a controlling financial interest and any limited partnership in which CatchMark owns a controlling general partnership interest. In determining whether a controlling interest exists, CatchMark considers, among other factors, the ownership of voting interests, protective rights, and participatory rights of the investors. All intercompany balances and transactions have been eliminated in consolidation. For further information, refer to the audited financial statements and footnotes included in CatchMark’s Annual Report on Form 10-K for the year ended December 31, 2019.

Investments in Joint Ventures

For joint ventures that it does not control but exercises significant influence, CatchMark uses the equity method of accounting. CatchMark's judgment about its level of influence or control of an entity involves consideration of various factors including the form of its ownership interest; its representation in the entity's governance; its ability to participate in policy-making decisions; and the rights of other investors to participate in the decision-making process, to replace CatchMark as manager, and/or to liquidate the venture. Under the equity method, the investment in a joint venture is recorded at cost and adjusted for equity in earnings and cash contributions and distributions. Income or loss and cash distributions from an unconsolidated joint venture are allocated according to the provisions of the respective joint venture agreement, which may be different from its stated ownership percentages. Any difference between the carrying amount of these investments on CatchMark’s balance sheets and the underlying equity in net assets on the joint venture’s balance sheets is adjusted as the related underlying assets are depreciated, amortized, or sold. Distributions received from unconsolidated joint ventures are classified in the accompanying consolidated statements of cash flows using the cumulative earnings approach under which distributions received in an amount equal to cumulative equity in earnings are classified as cash inflows from operating activities and distributions received in excess of cumulative equity in earnings represent returns of investment and therefore are classified as cash inflows from investing activities.

CatchMark evaluates the recoverability of its investments in unconsolidated joint ventures in accordance with accounting standards for equity investments by first reviewing each investment for any indicators of impairment. If indicators are present, CatchMark estimates the fair value of the investment. If the carrying value of the investment is greater than the estimated fair value, management assesses whether the impairment is “temporary” or “other-than-temporary.” In making this assessment, management considers the following: (1) the length of time and the extent to which fair value has been less than cost, (2) the financial condition and near-term prospects of the entity, and (3) CatchMark’s intent and ability to retain its interest long enough for a recovery in market value. If management concludes that the impairment is "other than temporary," CatchMark reduces the investment to its estimated fair value.

For information on CatchMark’s unconsolidated joint ventures, which are accounted for using the equity method of accounting, see Note 4 — Unconsolidated Joint Ventures.

Impairment Testing

ASC 360-10 requires impairment testing to be completed whenever events or changes in circumstances indicate the asset's carrying value may not be recoverable. Examples of such circumstances for CatchMark include, but are not limited to, a significant decrease in market price of the timber assets, a significant adverse change in the extent or manner in which timber assets are being used, or a significant adverse change in legal factors or in the business climate that could affect the value of the timber assets. CatchMark monitors such events and changes in circumstances, and when indicators of potential impairment are present, evaluates if the carrying amounts of its timber assets exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposal of its timber assets (the "Recoverable Amount") and if the carrying amount exceeds the timber assets' fair value. The

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Recoverable Amount and fair value are estimated based on the following information in order of preference, dependent upon availability: (i) recently quoted market prices, (ii) market prices for comparable assets, or (iii) the present value of undiscounted cash flows, including estimated salvage value, using data from one harvest cycle. CatchMark has determined that there has been no impairment to its timber assets as of September 30, 2020.

Segment Information

CatchMark primarily engages in the acquisition, ownership, operation, management, and disposition of timberland properties located in the United States, either directly through wholly-owned subsidiaries or through equity method investments in affiliated joint ventures. CatchMark defines operating segments in accordance with ASC Topic 280, Segment Reporting, to reflect the manner in which its chief operating decision maker, the Chief Executive Officer, evaluates performance and allocates resources in managing the business. CatchMark has aggregated its operating segments into three reportable segments: Harvest, Real Estate and Investment Management. See Note 9 — Segment Information for additional information.

Recent Accounting Pronouncements

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which removed certain exceptions for intra-period tax allocation, recognition of deferred tax liabilities, and calculation of income taxes in interim periods. This ASU also added guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. ASU 2019-12 is effective for public entities for fiscal years beginning after December 15, 2020, and interim periods therein. CatchMark is currently assessing the impact ASU 2019-12 will have on its consolidated financial statements.

In March 2020, the FASB issued ASU 2020-03, Codification Improvements to Financial Instruments, which provides clarifications on seven topics related to financial instruments in the ASC. The update became effective for CatchMark upon issuance and the adoption did not have a material impact on its consolidated financial statements.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides companies with optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform if certain criteria are met. CatchMark has elected the optional expedients offered in this update. The amendments did not apply to any transaction in the current quarter and will be applied prospectively to all eligible contracts and hedging relationships.

3. Timber Assets

As of September 30, 2020 and December 31, 2019, timber and timberlands consisted of the following, respectively:


	As of September 30, 2020
(in thousands)	Gross		Accumulated Depletion or Amortization		Net
Timber	$	280,284	$	20,934	$	259,350
Timberlands	330,605		—		330,605
Mainline roads	1,153		811		342
Timber and timberlands	$	612,042	$	21,745	$	590,297

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	As of December 31, 2019
(in thousands)	Gross		Accumulated Depletion or Amortization		Net
Timber	$	312,452	$	28,064	$	284,388
Timberlands	348,825		—		348,825
Mainline roads	1,106		738		368
Timber and timberlands	$	662,383	$	28,802	$	633,581

Timberland Sales

During the three months ended September 30, 2020 and 2019, CatchMark sold 1,200 and 1,100 acres of timberland for $2.4 million and $2.3 million, respectively. CatchMark's cost basis in the timberland sold was $1.8 million and $1.8 million, respectively.

During the nine months ended September 30, 2020 and 2019, CatchMark sold 5,200 and 6,000 acres of timberland for $8.9 million and $12.6 million, respectively. CatchMark's cost basis in the timberland sold was $6.3 million and $9.8 million, respectively.

Large Dispositions

CatchMark did not close any large dispositions in the current quarter. During the nine months ended September 30, 2020, CatchMark completed the sale of 14,400 acres of its wholly-owned timberlands for $21.3 million. CatchMark's cost basis was $19.6 million. Of the total net proceeds, $20.9 million was used to pay down CatchMark's outstanding debt balance on the Multi-Draw Term Facility.

During the three months ended September 30, 2019, CatchMark completed the sale of 10,800 acres of its wholly-owned timberlands for $19.9 million. CatchMark's total cost basis was $12.6 million. During the nine months ended September 30, 2019, CatchMark completed the sale of 14,400 acres of its wholly-owned timberlands for $25.4 million in two transactions. CatchMark's total cost basis was $17.2 million. Of the total net proceeds, $20.1 million was used to pay down CatchMark's outstanding debt balance on the Multi-Draw Term Facility.

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Timberland sales and large dispositions acreage by state is listed below:


	Nine Months Ended September 30,
Acres Sold In	2020	2019
South
Timberland Sales
Alabama	2,200	700
Georgia	1,500	1,100
North Carolina	—	500
South Carolina	1,200	3,700
Tennessee	300	—
	5,200	6,000
Large Dispositions
Alabama	—	2,200
Georgia	14,400	12,200
	14,400	14,400

Total	19,600	20,400

Current Timberland Portfolio

As of September 30, 2020, CatchMark directly owned interests in 412,500 acres of timberlands in the U.S. South and Pacific Northwest, 390,500 acres of which were fee-simple interests and 22,000 acres were leasehold interests. Land acreage by state is listed below:


Acres by state as of September 30, 2020 (1)	Fee	Lease	Total
South
Alabama	67,800	1,800	69,600
Florida	2,000	—	2,000
Georgia	232,100	20,200	252,300
North Carolina	100	—	100
South Carolina	70,400	—	70,400
	372,400	22,000	394,400
Pacific Northwest
Oregon	18,100	—	18,100
Total	390,500	22,000	412,500

(1)Represents CatchMark wholly-owned acreage only; excludes ownership interest in acreage held by joint ventures.

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4. Unconsolidated Joint Ventures

As of September 30, 2020, CatchMark owned interests in two joint ventures with unrelated parties: the Triple T Joint Venture and the Dawsonville Bluffs Joint Venture (each as defined and described below).


	As of September 30, 2020
	Dawsonville Bluffs Joint Venture	Triple T Joint Venture
Ownership percentage	50.0%	22.0%	(1)
Acreage owned by the joint venture	—	1,085,000
Merchantable timber inventory (million tons)	—	41.1	(2)
Location	Georgia	Texas

(1)Represents our share of total partner capital contributions.

(2)The Triple T Joint Venture considers inventory to be merchantable at age 12. Merchantable timber inventory does not include current year growth.

CatchMark accounts for these investments using the equity method of accounting.

Triple T Joint Venture

During 2018, CatchMark formed TexMark Timber Treasury, L.P., a Delaware limited partnership (the "Triple T Joint Venture"), with a consortium of institutional investors (the "Preferred Investors") to acquire 1.1 million acres of high-quality East Texas industrial timberlands (the “Triple T Timberlands”), for $1.39 billion (the “Acquisition Price”), exclusive of transaction costs. The Triple T Joint Venture completed the acquisition of the Triple T Timberlands in July 2018. CatchMark invested $200.0 million in the Triple T Joint Venture, equal to 21.6% of the total equity contributions at that time, in exchange for a common limited partnership interest. CatchMark, through a separate wholly-owned and consolidated subsidiary, is the sole general partner of the Triple T Joint Venture.

On June 24, 2020, CatchMark invested an additional $5.0 million of equity on the same terms and conditions as its existing investment in the Triple T Joint Venture in connection with amendments to the joint venture agreement and asset management agreement. The amended asset management agreement designated Brian M. Davis, Chief Executive Officer and President of CatchMark, as the “Key Man” and increased the asset management fee payable to CatchMark as described below in Asset Management Fees. The amended joint venture agreement increased the 10.25% cumulative return on the preferred investors’ interests in the Triple T Joint Venture’s subsidiary REIT by 0.5% per quarter, subject to a maximum increase of 2.0% and subject to decreases in other circumstances. The proceeds of CatchMark’s additional $5.0 million investment, along with the proceeds from $140.0 million of borrowings under the Triple T Joint Venture’s credit facility, were used to make a payment of $145.0 million to GP in connection with an amendment to a wood supply agreement between the Triple T Joint Venture and GP. This amendment was intended to achieve market-based pricing on timber sales, increase reimbursement for extended haul distances, provide the ability for the Triple T Joint Venture to sell sawtimber to other third parties, and expand the Triple T Joint Venture’s ability to sell large timberland parcels to third-party buyers. The supply agreement between the Triple T Joint Venture and GP was also extended by two years from 2029 to 2031.

CatchMark uses the equity method to account for its investment in the Triple T Joint Venture since it does not possess the power to direct the activities that most significantly impact the economic performance of the Triple T Joint Venture, and accordingly, CatchMark does not possess the first characteristic of a primary beneficiary described in GAAP. CatchMark has appointed three common board members of the Triple T Joint Venture, including its Chief Executive Officer, Chief Resources Officer and Vice President - Acquisitions, which provides CatchMark with significant influence over the Triple T Joint Venture. Accordingly, pursuant to the applicable accounting literature, it is appropriate for CatchMark to apply the equity method of accounting to its investment in the Triple T Joint Venture.

The Triple T Joint Venture agreement provides for liquidation rights and distribution priorities that are significantly different from CatchMark's stated ownership percentage based on total equity contributions. The Preferred Investors are entitled to a minimum cumulative return on their equity contributions, plus a complete return of their equity

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contributions before any distributions may be made on CatchMark’s common limited partnership interest. As such, CatchMark uses the hypothetical-liquidation-at-book-value method (“HLBV”) to determine its equity in the earnings of the Triple T Joint Venture. The HLBV method is commonly applied to equity investments in real estate, where cash distribution percentages vary at different points in time and are not directly linked to an investor's ownership percentage. For investments accounted for under the HLBV method, applying the percentage ownership interest to GAAP net income in order to determine earnings or losses would not accurately represent the income allocation and cash flow distributions that will ultimately be received by the investors.

CatchMark applies HLBV using a balance sheet approach. A calculation is prepared at each balance sheet date to determine the amount that CatchMark would receive if the Triple T Joint Venture were to liquidate all of its assets (at book value in accordance with GAAP) on that date and distribute the proceeds to the partners based on the contractually-defined liquidation priorities. The difference between the calculated liquidation distribution amounts at the beginning and the end of the reporting period, after adjusting for capital contributions and distributions, is CatchMark's income or loss from the Triple T Joint Venture for the period.

Condensed balance sheet information for the Triple T Joint Venture is as follows:


	As of
(in thousands)	September 30, 2020		December 31, 2019
Triple T Joint Venture
Total assets	$	1,567,084	$	1,573,172
Total liabilities	$	773,660	$	751,655
Total equity	$	793,424	$	821,517
CatchMark
Carrying value of investment	$	—	$	—

Condensed income statement information for the Triple T Joint Venture is as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2020		2019		2020		2019
Triple T Joint Venture
Total revenues	$	44,222	$	41,509	$	114,091	$	121,450
Net loss	$	(9,973)	$	(4,613)	$	(25,636)	$	(10,480)
CatchMark
Equity share of net loss	$	(2,689)	$	(25,712)	$	(5,000)	$	(81,800)

Condensed statement of cash flow information for the Triple T Joint Venture is as follows:


	Nine Months Ended September 30,
(in thousands)	2020		2019
Triple T Joint Venture
Net cash provided by operating activities	$	2,305	$	9,040
Net cash used in investing activities	$	(151,473)	$	(3,263)
Net cash provided by financing activities	$	154,111	$	87
Net change in cash and cash equivalents	$	4,943	$	5,864
Cash and cash equivalents, beginning of period	$	39,614	$	39,300
Cash and cash equivalents, end of period	$	44,557	$	45,164

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As of September 30 2020, CatchMark had recognized cumulative HLBV losses of $205.0 million, reducing the carrying value of its investment to zero. CatchMark does not expect to recognize any additional losses from the Triple T Joint Venture as CatchMark has not guaranteed obligations of the venture and is not otherwise committed to provide it additional financial support.

Dawsonville Bluffs Joint Venture

During 2017, CatchMark formed the Dawsonville Bluffs Joint Venture with MPERS, and each owns a 50% membership interest. CatchMark shares substantive participation rights with MPERS, including management selection and termination, and the approval of material operating and capital decisions and, as such, uses the equity method of accounting to record its investment. Income or loss and cash distributions are allocated according to the provisions of the joint venture agreement, which are consistent with the ownership percentages for the Dawsonville Bluffs Joint Venture.

As of September 30, 2020, the Dawsonville Bluffs Joint Venture had a mitigation bank with a book basis of $2.3 million remaining in its portfolio. Condensed balance sheet information for the Dawsonville Bluffs Joint Venture is as follows:


	As of
(in thousands)	September 30, 2020		December 31, 2019
Dawsonville Bluffs Joint Venture
Total assets	$	3,707	$	4,041
Total liabilities	$	31	$	111
Total equity	$	3,676	$	3,930
CatchMark
Carrying value of investment	$	1,838	$	1,965

Condensed income statement information for the Dawsonville Bluffs Joint Venture is as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2020		2019		2020		2019
Dawsonville Bluffs Joint Venture
Total revenues	$	1,246	$	8,648	$	1,246	$	10,068
Net income	$	790	$	1,323	$	546	$	1,578
CatchMark
Equity share of net income	$	395	$	661	$	273	$	789

Condensed statement of cash flow information for the Dawsonville Joint Venture is as follows:


	Nine Months Ended September 30,
(in thousands)	2020		2019
Dawsonville Joint Venture
Net cash provided by operating activities	$	633	$	8,873
Net cash used in financing activities	$	(800)	$	(9,616)
Net change in cash and cash equivalents	$	(167)	$	(743)
Cash and cash equivalents, beginning of period	$	1,441	$	1,731
Cash and cash equivalents, end of period	$	1,274	$	988

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For the nine months ended September 30, 2020 and 2019, CatchMark received cash distributions of $0.4 million and $4.8 million, respectively, from the Dawsonville Bluffs Joint Venture.

Risks and Uncertainties Related to Unconsolidated Joint Ventures

CatchMark’s unconsolidated joint ventures, most notably the Triple T Joint Venture, are subject to risks and uncertainties as a result of the COVID-19 pandemic. The extent of the impact of the COVID-19 pandemic on the Triple T Joint Venture’s business and that of its customers and contractors is uncertain and difficult to predict. The rapid spread of the outbreak has caused significant disruptions in the U.S. and global economies and capital markets, and the impact is expected to continue to be significant during the remainder of 2020 and into 2021. Such economic disruption could have a material adverse effect on the Triple T Joint Venture’s business due to the same reasons discussed in Note 1 — Organization with respect to CatchMark. The severity of the impact of the COVID-19 pandemic on the Triple T Joint Venture’s business will depend on a number of factors, including, but not limited to, the duration and severity of the pandemic and the extent and severity of the impact on the Triple T Joint Venture’s customers, all of which are uncertain and cannot be predicted. As of the date of issuance of these condensed consolidated financial statements, the extent to which the COVID-19 pandemic may materially impact the financial condition, liquidity, or results of operations of CatchMark’s unconsolidated joint ventures is uncertain.

Asset Management Fees

CatchMark provides asset management services to the Triple T Joint Venture and the Dawsonville Bluffs Joint Venture. Under these arrangements, CatchMark oversees the day-to-day operations of these joint ventures and their properties, including accounting, reporting and other administrative services, subject to certain major decisions that require partner approval.

On June 24, 2020, in connection with its additional $5.0 million equity investment in the Triple T Joint Venture, CatchMark entered into an amended and restated asset management agreement with the Triple T Joint Venture. Prior to this amendment, for management of the Triple T Joint Venture, CatchMark received a fee equal to 1% of the Acquisition Price multiplied by 78.4%, which represented the percentage of the original equity contributions made to the Triple T Joint Venture by the Preferred Investors. In the event the Preferred Investors had not received a return of their capital contributions plus their preferred return as described above, then the asset management fee percentage would have decreased from 1% to 0.75% at October 1, 2021, and to 0.50% at October 1, 2022. The amended asset management agreement provides that, effective June 24, 2020, CatchMark earns an asset management fee equal to 1% of (a) the sum of the Acquisition Price and the $145.0 million paid to GP, multiplied by (b) 78.4%, and in the event the Preferred Investors have not received a return of their capital contributions plus their preferred return, then the asset management fee percentage decreases from 1% to 0.75% at October 1, 2021, and to 0.25% at July 1, 2022. The fee is also subject to deferment in certain circumstances.

For management of the Dawsonville Bluffs Joint Venture, CatchMark receives a percentage fee based on invested capital, as defined by the joint venture agreement. Additionally, CatchMark receives an incentive-based promote earned for exceeding investment hurdles.

During the three months and nine months ended September 30, 2020 and 2019, CatchMark earned the following fees from these unconsolidated joint ventures:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2020		2019		2020		2019
Triple T Joint Venture (1)	$	3,112	$	2,821	$	8,789	$	8,464
Dawsonville Bluffs Joint Venture (2)	6		615		161		655
	$	3,118	$	3,436	$	8,950	$	9,119

(1)Includes $0.1 million of reimbursements of compensation costs for the three months ended September 30, 2020 and 2019. Includes $0.4 million of reimbursements of compensation costs for the nine months ended September 30, 2020 and 2019.

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(2)Includes $0.1 million and $0.6 million of incentive-based promote earned for exceeding investment hurdle in the first quarter of 2020 and in the third quarter of 2019, respectively.

5. Notes Payable and Lines of Credit

Amended Credit Agreement

As of September 30, 2020, CatchMark was party to a credit agreement dated as of December 1, 2017, as amended on August 22, 2018, June 28, 2019, February 12, 2020, and May 1, 2020 (the "Amended Credit Agreement"), with a syndicate of lenders, including CoBank, which serves as the administrative agent. The Amended Credit Agreement provides for borrowing under credit facilities consisting of the following:

•a $35.0 million five-year revolving credit facility (the “Revolving Credit Facility”);

•a $150.0 million seven-year multi-draw term credit facility (the “Multi-Draw Term Facility”);

•a $100.0 million ten-year term loan (the “Term Loan A-1”);

•a $100.0 million nine-year term loan (the “Term Loan A-2”);

•a $68.6 million ten-year term loan (the “Term Loan A-3”); and

•a $140.0 million seven-year term loan (the "Term Loan A-4").

The amendment dated May 1, 2020 provided for, among other things: (1) the removal of the LTV ratio covenant reduction, from 50% to 45%, which would have otherwise been effective on December 31, 2021; (2) the removal of the minimum liquidity balance of $25.0 million, which enables CatchMark to draw down more proceeds for working capital or other purposes if needed under its Revolving Credit Facility; (3) a reduction in the Multi-Draw Term Facility commitment from $200 million to $150 million, which provides CatchMark ample capacity for future acquisitions while lowering its unused commitment fees; and (4) the ability to make additional investments in joint ventures during 2020 if CatchMark meets certain LTV ratio requirements.

During the nine months ended September 30, 2020, CatchMark borrowed $5.0 million under its Multi-Draw Term Facility to fund its additional equity investment in the Triple T Joint Venture (see Note 4 — Unconsolidated Joint Ventures). CatchMark paid down $20.9 million of its outstanding balance on the Multi-Draw Term Facility with proceeds from a large disposition during the first quarter of 2020. As of September 30, 2020 and December 31, 2019, CatchMark had the following debt balances outstanding:


(dollar amounts in thousands)			Current Interest Rate (1)	Outstanding Balance as of
Credit Facility	Maturity Date	Interest Rate		September 30, 2020		December 31, 2019
Term Loan A-1	12/23/2024	LIBOR + 1.75%	1.90%	$	100,000	$	100,000
Term Loan A-2	12/1/2026	LIBOR + 1.90%	2.05%	100,000		100,000
Term Loan A-3	12/1/2027	LIBOR + 2.00%	2.15%	68,619		68,619
Term Loan A-4	8/22/2025	LIBOR + 1.70%	1.85%	140,000		140,000
Multi-Draw Term Facility	12/1/2024	LIBOR + 1.90%	2.05%	34,086		49,936
Total principal balance				$	442,705	$	458,555
Less: net unamortized deferred financing costs				(5,469)		(5,568)
Total				$	437,236	$	452,987

(1)For the Multi-Draw Term Facility, the interest rate represents weighted-average interest rate as of September 30, 2020. The weighted-average interest rate excludes the impact of the interest rate swaps (see Note 6 — Interest Rate Swaps), amortization of deferred financing costs, unused commitment fees, and estimated patronage dividends.

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As of September 30, 2020, CatchMark had $150.9 million of borrowing capacity remaining under its credit facilities, consisting of $115.9 million under the Multi-Draw Term Facility and $35.0 million under the Revolving Credit Facility.

Borrowings under the Revolving Credit Facility may be used for general working capital, to support letters of credit, to fund cash earnest money deposits, to fund acquisitions in an amount not to exceed $5.0 million, and for other general corporate purposes. The Revolving Credit Facility bears interest at an adjustable rate equal to a base rate plus between 0.50% and 1.20% or a LIBOR rate plus between 1.50% and 2.20%, in each case depending on CatchMark's LTV Ratio, and will terminate and all amounts outstanding under the facility will be due and payable on December 1, 2022.

The Multi-Draw Term Facility may be used to finance timberland acquisitions and associated expenses, to fund investment in joint ventures, to fund the repurchase of CatchMark's common stock, and to reimburse payments of drafts under letters of credit. The Multi-Draw Term Facility, which is interest only until its maturity date, bears interest at an adjustable rate equal to a base rate plus between 0.50% and 1.20% or a LIBOR rate plus between 1.50% and 2.20%, in each case depending on CatchMark's LTV Ratio, and will terminate and all amounts outstanding under the facility will be due and payable on December 1, 2024.

CatchMark pays the lenders an unused commitment fee on the unused portions of the Revolving Credit Facility and the Multi-Draw Term Facility at an adjustable rate ranging from 0.15% to 0.35%, depending on the LTV Ratio. For the three months ended September 30, 2020 and 2019, CatchMark recognized $0.1 million and $0.2 million of unused commitment fees as interest expense on its consolidated statements of operations. For the nine month ended September 30, 2020 and 2019, CatchMark recognized $0.4 million and $0.5 million of unused commitment fees as interest expense on its consolidated statements of operations.

CatchMark’s obligations under the credit agreement are collateralized by a first priority lien on the timberlands owned by CatchMark’s subsidiaries and substantially all of CatchMark’s subsidiaries’ other assets in which a security interest may lawfully be granted, including, without limitation, accounts, equipment, inventory, intellectual property, bank accounts and investment property. In addition, the obligations under the credit agreement are jointly and severally guaranteed by CatchMark and all of its subsidiaries pursuant to the terms of the credit agreement. CatchMark has also agreed to guarantee certain losses caused by certain willful acts of CatchMark or its subsidiaries.

Patronage Dividends

CatchMark is eligible to receive annual patronage dividends from its lenders (the "Patronage Banks") under a profit-sharing program made available to borrowers of the Farm Credit System. CatchMark has received a patronage dividend on its eligible patronage loans annually since 2015. The eligibility remains the same under the Amended Credit Agreement. Therefore, CatchMark accrues patronage dividends it expects to receive based on actual patronage dividends received as a percentage of its weighted-average eligible debt balance. For each of the three months ended September 30, 2020 and 2019, CatchMark accrued $0.9 million as patronage dividends receivable on its consolidated balance sheets and as an offset against interest expense on the consolidated statements of operations. For the nine months ended September 30, 2020 and 2019, CatchMark accrued $2.7 million and $2.9 million, respectively, as patronage dividends receivable on its consolidated balance sheets and as an offset against interest expense on the consolidated statements of operations.

In March 2020 and 2019, CatchMark received patronage dividends of $4.1 million and $3.3 million, respectively, on its patronage eligible borrowings. Of the total patronage dividends received in March 2020, $3.1 million was received in cash, including a $0.1 million special cash distribution, and $1.0 million was received in equity of the Patronage Banks.

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As of September 30, 2020 and December 31, 2019, the following balances related to the patronage dividend program were included on CatchMark's consolidated balance sheets:


(in thousands)	As of
Patronage dividends classified as:	September 30, 2020		December 31, 2019
Accounts receivable	$	2,691	$	3,810
Prepaid expenses and other assets (1)	3,335		2,329
Total	$	6,026	$	6,139

(1)Represents cumulative patronage dividends received as equity in the Patronage Banks.

Debt Covenants

The Amended Credit Agreement contains, among others, the following financial covenants which:

•limit the LTV ratio to 50% at any time;

•require maintenance of a FCCR of not less than 1.05:1.00 at any time; and

•limit the aggregated capital expenditures to 1% of the value of the timberlands during any fiscal year.

The Amended Credit Agreement permits CatchMark to declare, set aside funds for, or pay dividends, distributions, or other payments to stockholders so long as it is not in default under the credit agreement. However, if CatchMark has suffered a bankruptcy event or a change of control, the credit agreement prohibits CatchMark from declaring, setting aside, or paying any dividend, distribution, or other payment other than as required to maintain its REIT qualification. The Amended Credit Agreement also subjects CatchMark to mandatory prepayment from proceeds generated from dispositions of timberlands or lease terminations, which may have the effect of limiting its ability to make distributions to stockholders under certain circumstances.

CatchMark was in compliance with the financial covenants of its credit agreement as of September 30, 2020. See Note 1 — Organization for discussion of uncertainties and risks to CatchMark’s financial position, liquidity and results of operations, including impacts of the global COVID-19 pandemic.

Interest Paid and Fair Value of Outstanding Debt

During the three months ended September 30, 2020 and 2019, CatchMark made interest payments of $2.2 million and $5.0 million, respectively, on its borrowings. No unused commitment fee was paid during the three months ended September 30, 2020 and 2019.

During the nine months ended September 30, 2020 and 2019, CatchMark made interest payments of $9.2 million and $15.6 million, respectively, on its borrowings. Included in the interest payments for the nine months ended September 30, 2020 and 2019 were unused commitment fees of $0.3 million and $0.1 million, respectively.

As of September 30, 2020 and December 31, 2019, the weighted-average interest rate on CatchMark's borrowings, after consideration of its interest rate swaps (see Note 6 — Interest Rate Swaps), was 3.22% and 3.87%, respectively. After further consideration of expected patronage dividends, CatchMark's weighted-average interest rate as of September 30, 2020 and December 31, 2019 was 2.42% and 3.07%, respectively.

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6. Interest Rate Swaps

CatchMark uses interest rate swaps to mitigate its exposure to changing interest rates on its variable rate debt instruments. As of September 30, 2020, CatchMark had two outstanding interest rate swaps with terms below:

(dollar amounts in thousands)

Notional Amount

Interest Rate Swap

Effective Date

Maturity Date

Pay Rate

Receive Rate

2019 Swap - 10YR

11/29/2019

11/30/2029

2.2067%

one-month LIBOR

200,000

2019 Swap - 7YR

11/29/2019

11/30/2026

2.0830%

one-month LIBOR

75,000

275,000

As of September 30, 2020, CatchMark’s interest rate swaps effectively fixed the interest rate on $275.0 million of its $442.7 million variable-rate debt at 3.98%, inclusive of the applicable spread and before consideration of expected patronage dividends. The 2019 swaps contain an other-than-insignificant financing element and, accordingly, the associated cash flows are reported as financing activities in the accompanying consolidated statements of cash flows.

During the nine months ended September 30, 2019, CatchMark had ten interest rate swaps that effectively fixed the interest rates on $350.0 million of CatchMark's variable-rate debt at 4.26%, inclusive of the applicable spread but before considering patronage dividends.

All of CatchMark's outstanding interest rate swaps during the nine months ended September 30, 2020 and 2019 qualified for hedge accounting treatment.

Fair Value and Cash Paid for Interest Under Interest Rate Swaps

The following table presents information about CatchMark's interest rate swaps measured at fair value as of September 30, 2020 and December 31, 2019:

(in thousands)

Estimated Fair Value as of

Instrument Type

Balance Sheet Classification

September 30, 2020

December 31, 2019

Derivatives designated as hedging instruments:

Interest rate swaps

Other liabilities

(33,015)

(8,769)

During the three months ended September 30, 2020 and 2019, CatchMark recognized a change in fair value of its interest rate swaps of $3.4 million and $3.1 million, as other comprehensive gain and other comprehensive loss, respectively. During the three months ended September 30, 2020, CatchMark reclassified $0.4 million from accumulated other comprehensive loss to interest expense related to the off-market swap value at hedge inception.

During the nine months ended September 30, 2020 and 2019, CatchMark recognized a change in fair value of its interest rate swaps of $24.2 million and $14.0 million, respectively, as other comprehensive loss. During the nine months ended September 30, 2020, CatchMark reclassified $1.3 million from accumulated other comprehensive loss to interest expense related to the off-market swap value at hedge inception.

Pursuant to the terms of its interest rate swaps, CatchMark paid $1.4 million and $0.1 million during the three months ended September 30, 2020 and 2019, respectively. For the nine months ended September 30, 2020 and 2019, CatchMark paid $2.9 million and $0.1 million, respectively. All amounts were included in interest expense in the consolidated statements of operations.

As of September 30, 2020, CatchMark estimated that approximately $6.7 million will be reclassified from accumulated other comprehensive loss to interest expense over the next 12 months.

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7. Commitments and Contingencies

Mahrt Timber Agreements

In connection with its acquisition of timberlands from WestRock in 2007, CatchMark entered into a master stumpage agreement and a fiber supply agreement (collectively, the “Mahrt Timber Agreements”) with a wholly-owned subsidiary of WestRock. The master stumpage agreement provides that CatchMark will sell specified amounts of timber and make available certain portions of our timberlands to CatchMark TRS for harvesting. The fiber supply agreement provides that WestRock will purchase a specified tonnage of timber from CatchMark TRS at specified prices per ton, depending upon the type of timber product. The prices for the timber purchased pursuant to the fiber supply agreement are negotiated every two years but are subject to quarterly market pricing adjustments based on an index published by TimberMart-South, a quarterly trade publication that reports raw forest product prices in 11 southern states. The initial term of the Mahrt Timber Agreements is October 9, 2007 through December 31, 2032, subject to extension and early termination provisions. The Mahrt Timber Agreements ensure a long-term source of supply of wood fiber products for WestRock in order to meet its paperboard and lumber production requirements at specified mills and provide CatchMark with a reliable customer for the wood products from its timberlands.

WestRock can terminate the Mahrt Timber Agreements prior to the expiration of the initial term if CatchMark replaces FRC as the forest manager without the prior written consent of WestRock, except pursuant to an internalization of the company's forestry management functions. CatchMark can terminate the Mahrt Timber Agreements if WestRock (i) ceases to operate the Mahrt mill for a period that exceeds 12 consecutive months, (ii) fails to purchase a specified tonnage of timber for two consecutive years, subject to certain limited exceptions or (iii) fails to make payments when due (and fails to cure within 30 days).

In addition, either party can terminate the Mahrt Timber Agreements if the other party commits a material breach (and fails to cure within 60 days) or becomes insolvent. In addition, the Mahrt Timber Agreements provide for adjustments to both parties' obligations in the event of a force majeure, which is defined to include, among other things, lightning, fires, storms, floods, infestation and other acts of God or nature.

For the nine months ended September 30, 2020, WestRock purchased 308,900 tons under the Mahrt Timber Agreements, which represented 12% of CatchMark's net timber sales revenue.

Timberland Operating Agreements

Pursuant to the terms of the timberland operating agreement between CatchMark and FRC (the "FRC Timberland Operating Agreement"), FRC manages and operates certain of CatchMark's timberlands and related timber operations, including ensuring delivery of timber to WestRock in compliance with the Mahrt Timber Agreements. In consideration for rendering the services described in the timberland operating agreement, CatchMark pays FRC (i) a management fee based on the actual acreage that FRC manages, which is payable monthly in advance, and (ii) an incentive fee based on timber harvest revenues generated by the timberlands, which is payable quarterly in arrears. The FRC Timberland Operating Agreement, as amended, is effective through March 31, 2021, and is automatically extended for one-year periods unless written notice is provided by CatchMark or FRC to the other party at least 120 days prior to the current expiration. The FRC Timberland Operating Agreement may be terminated by either party with mutual consent or by CatchMark with or without cause upon providing 120 days’ prior written notice.

Pursuant to the terms of the timberland operating agreement between CatchMark and AFM (the "AFM Timberland Operating Agreement"), AFM manages and operates certain of CatchMark's timberlands and related timber operations, including ensuring delivery of timber to customers. In consideration for rendering the services described in the AFM Timberland Operating Agreement, CatchMark pays AFM (i) a management fee based on the actual acreage AFM manages, which is payable monthly in advance, and (ii) an incentive fee based on revenues generated by the timber operations, which is payable quarterly in arrears. The AFM Timberland Operating Agreement is effective through November 30, 2021 for the U.S. South region and December 31, 2021 for the Pacific Northwest region, and is automatically extended for one-year periods unless written notice is provided by CatchMark or AFM to the other

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party at least 120 days prior to the current expiration. The AFM Timberland Operating Agreement may be terminated by either party with mutual consent or by CatchMark with or without cause upon providing 120 days’ prior written notice.

Obligations under Operating Leases

CatchMark's office lease commenced in January 2019 and expires in November 2028 and qualifies as an operating lease under ASC 842. As of January 1, 2019, CatchMark recorded an operating lease right-of-use (“ROU”) asset and an operating lease liability of $3.4 million on its balance sheet, which represents the net present value of lease payments over the lease term discounted using CatchMark's incremental borrowing rate at commencement date. CatchMark’s office lease contains renewal options; however, the options were not included in the calculation of the operating lease ROU asset and operating lease liability as it is not reasonably certain that CatchMark will exercise the renewal options. CatchMark recorded $108,400 of operating lease expense for each of the three months ended September 30, 2020 and 2019. For the nine months ended September 30, 2020 and 2019, CatchMark recorded $325,000 and $256,000 of operating lease expense, respectively, which was included in general and administrative expenses on its consolidated statements of operations. For the three months ended September 30, 2020 and 2019, CatchMark paid $100,000 and $98,000, respectively, in cash for its office lease. For the nine months ended September 30, 2020 and 2019, CatchMark paid $297,000 and $215,000, respectively, in cash for its office lease, which was included in operating cash flows on its consolidated statements of cash flows. The adoption of ASC 842 did not result in a cumulative-effect adjustment to CatchMark's retained earnings, as its office lease commenced in January 2019.

CatchMark had the following future annual payments for its operating lease as of September 30, 2020 and December 31, 2019:


	As of
(in thousands)	September 30, 2020			December 31, 2019
Required payments
2020	$	100		397
2021	412			412
2022	424			424
2023	435			435
2024	447			447
Thereafter	1,873			1,873
	$	3,691		$	3,988
Less: imputed interest	(637)
Operating lease liability	$	3,054

Remaining lease term (years)	8.2
Discount rate	4.58		%

CatchMark holds leasehold interests in 22,000 acres of timberlands under a long-term lease that expires in May 2022 (the “LTC Lease”). The LTC Lease provides CatchMark access rights to harvest timber as specified in the LTC Lease, which is, therefore, a lease of biological assets, and is excluded from the scope of ASC 842.

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As of September 30, 2020, CatchMark had the following future lease payments under the LTC Lease:


(in thousands)	Required Payments
2020	$	16
2021	397
2022	349
	$	762

Litigation

From time to time, CatchMark may be a party to legal proceedings, claims, and administrative proceedings that arise in the ordinary course of its business. Management makes assumptions and estimates concerning the likelihood and amount of any reasonably possible loss relating to these matters using the latest information available. CatchMark records a liability for litigation if an unfavorable outcome is probable and the amount of loss or range of loss can be reasonably estimated. If an unfavorable outcome is probable and a reasonable estimate of the loss is a range, CatchMark accrues the best estimate within the range. If no amount within the range is a better estimate than any other amount, CatchMark accrues the minimum amount within the range. If an unfavorable outcome is probable but the amount of the loss cannot be reasonably estimated, CatchMark discloses the nature of the litigation and indicates that an estimate of the loss or range of loss cannot be made. If an unfavorable outcome is reasonably possible and the estimated loss is material, CatchMark discloses the nature and estimate of the possible loss of the litigation. CatchMark does not disclose information with respect to litigation where an unfavorable outcome is considered to be remote.

CatchMark is not currently involved in any legal proceedings of which the outcome is reasonably likely to have a material adverse effect on the results of operations or financial condition of CatchMark. CatchMark is not aware of any legal proceedings contemplated by governmental authorities.

8. Stock-based Compensation

Accelerated Vesting of Former CEO's Outstanding Equity Awards

On January 21, 2020, Jerrold Barag retired as the Chief Executive Officer of CatchMark and as a member of CatchMark's board of directors. In connection with Mr. Barag's retirement, 103,135 shares of his time-based restricted stock awards vested immediately, 46,912 shares of which were withheld to cover required tax withholding. CatchMark repurchased the remaining 56,223 fully vested shares at a per-share price of $11.05, which was the average closing price of the common stock for the five-day trading period ended prior to January 21, 2020, payable to Mr. Barag in 24 equal installments through January 2022. During the three months and nine months ended September 30, 2020, CatchMark made installment payments totaling $78,000 and $207,000 related to the repurchase of 56,223 shares from Mr. Barag. Mr. Barag’s 72,272 performance-based LTIP Units issued under the executive officer’s 2017 compensation program had a performance period from January 1, 2017 to December 31, 2019. 25,218 of these 72,272 LTIP Units were earned and vested on January 29, 2020. Mr. Barag’s remaining 142,909 performance-based LTIP units issued under the executive officers' 2018 and 2019 compensation programs were treated as if the performance period for such awards ended on January 21, 2020. The Compensation Committee determined that Mr. Barag earned a total of 32,780 LTIP Units, which were vested on January 29, 2020. In accordance with ASC 718: Compensation - Stock Compensation, CatchMark applied modification accounting and recognized the incremental fair value of these awards in the amount of $1.2 million as stock-based compensation expense in the first quarter of 2020. For complete terms and conditions of the Separation Agreement, see the Form 8-K filed with the SEC on January 21, 2020.

Restricted Stock Vesting

On July 13, 2020, 14,224 shares of service-based restricted stock granted to CatchMark's executive officers vested, which represents one quarter of shares of restricted stock granted on July 12, 2019 pursuant to the 2019 executive compensation plan previously approved by the compensation committee of the board of directors. Of these vested shares, 5,810 shares were withheld to satisfy tax withholding requirements.

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Stock-based Compensation Expense

A summary of CatchMark's stock-based compensation expense for the three months and nine months ended September 30, 2020 and 2019 is presented below:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2020		2019		2020		2019
General and administrative expenses (1)	$	520	$	729	$	2,900	$	1,763
Forestry management expenses	110		74		307		189
Total (2)	$	630	$	803	$	3,207	$	1,952

(1)The nine months ended September 30, 2020 includes $1.2 million of accelerated stock-based compensation expense related to the retirement of CatchMark's former CEO in January 2020.

(2)Includes $0.2 million and $1.0 million of stock-based compensation recognized as noncontrolling interest for the three months and nine months ended September 30, 2020, respectively.

As of September 30, 2020, approximately $5.0 million of compensation expense related to unvested restricted stock and LTIP Units remained to be recognized over a weighted-average period of 2.4 years.

9. Segment Information

As of September 30, 2020, CatchMark had the following reportable segments: Harvest, Real Estate and Investment Management. Harvest includes wholly-owned timber assets and associated timber sales, other revenues and related expenses. Real Estate includes timberland sales, cost of timberland sales and large dispositions. Investment Management includes investment in and income (loss) from unconsolidated joint ventures and asset management fee revenues earned for the management of these joint ventures. General and administrative expenses, along with other expense and income items, are not allocated among segments. Asset information and capital expenditures by segment are not reported because CatchMark does not use these measures to assess performance. CatchMark’s investments in unconsolidated joint ventures are reported separately on the accompanying consolidated balance sheets. During the periods presented, there have been no material intersegment transactions.

The following table presents revenues by reportable segment:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2020		2019		2020		2019
Harvest	$	19,065	$	20,680	$	55,510	$	55,916
Real Estate	2,430		2,264		8,882		12,578
Investment Management	3,118		3,436		8,950		9,119
Total	$	24,613	$	26,380	$	73,342	$	77,613

Adjusted EBITDA is the primary performance measure reviewed by management to assess operating performance. The following table presents Adjusted EBITDA by reportable segment:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2020		2019		2020		2019
Harvest	$	8,502	$	9,390	$	24,497	$	23,935
Real Estate	2,272		2,036		8,342		11,821
Investment Management	3,653		7,250		9,363		13,455
Corporate	(2,028)		(2,154)		(7,479)		(7,440)
Total	$	12,399	$	16,522	$	34,723	$	41,771

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A reconciliation of Adjusted EBITDA to GAAP net loss is presented below:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2020		2019		2020		2019
Adjusted EBITDA	$	12,399	$	16,522	$	34,723	$	41,771
Subtract:
Depletion	7,286		8,235		20,934		19,533
Interest expense (1)	2,865		4,220		9,121		12,987
Amortization (1)	747		299		2,621		986
Depletion, amortization, and basis of timberland and mitigation credits sold included in loss from unconsolidated joint venture (2)	140		3,152		140		3,547
Basis of timberland sold, lease terminations and other (3)	1,991		1,854		6,988		10,329
Stock-based compensation expense	630		803		3,207		1,952
Gain on large dispositions (4)	—		(7,197)		(1,274)		(7,961)
HLBV loss from unconsolidated joint venture (5)	2,689		25,712		5,000		81,800
Post-employment benefits (6)	10		—		2,307		—
Other (7)	190		1		260		115
Net loss	$	(4,149)	$	(20,557)	$	(14,581)	$	(81,517)

(1)For the purpose of the above reconciliation, amortization includes amortization of deferred financing costs, amortization of operating lease assets and liabilities, amortization of intangible lease assets, and amortization of mainline road costs, which are included in either interest expense, land rent expense, or other operating expenses in the accompanying consolidated statements of operations. Includes non-cash basis of timber and timberland assets written-off related to timberland sold, terminations of timberland leases and casualty losses.

(2)Reflects our share of depletion, amortization, and basis of timberland and mitigation credits sold of the unconsolidated Dawsonville Bluffs Joint Venture.

(3)Includes non-cash basis of timber and timberland assets written-off related to timberland sold, terminations of timberland leases and casualty losses.

(4)Large dispositions are sales of blocks of timberland properties in one or several transactions with the objective to generate proceeds to fund capital allocation priorities. Large dispositions may or may not have a higher or better use than timber production or result in a price premium above the land’s timber production value. Such dispositions are infrequent in nature, are not part of core operations, and would cause material variances in comparative results if not reported separately.

(5)Reflects HLBV (income) losses from the Triple T Joint Venture, which is determined based on a hypothetical liquidation of the underlying joint venture at book value as of the reporting date.

(6)Reflects one-time, non-recurring post-employment benefits associated with the retirement of our former CEO, including severance pay, payroll taxes, professional fees, and accrued dividend equivalents.

(7)Includes certain cash expenses paid, or reimbursement received, that management believes do not directly reflect the core business operations of our timberland portfolio on an on-going basis, including costs required to be expensed by GAAP related to acquisitions, transactions, joint ventures or new business initiatives.

10. Subsequent Event

Dividend Declaration

On October 29, 2020, CatchMark declared a cash dividend of $0.135 per share for its common stockholders of record on November 30, 2020, payable on December 15, 2020.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis should be read in conjunction with our accompanying consolidated financial statements and notes thereto. See also “Cautionary Note Regarding Forward-Looking Statements” preceding Part I of this report, as well as our consolidated financial statements and the notes thereto and Management's Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2019.

Overview

We acquire and own prime timberlands located in high-demand U.S. mill markets. We manage our operations to generate highly-predictable and stable cash flow from sustainable harvests, opportunistic land sales and asset management fees that comfortably covers our dividend throughout the business cycle.

During the third quarter of 2020, we continued to actively manage our timberlands to achieve an optimum balance among biological timber growth, current harvest cash flow, and responsible environmental stewardship. We actively managed our log merchandising efforts together with delivered and stumpage sales to achieve the highest available price for our timber products. Demand for pulp-related products remained strong and increased housing starts and robust repair and remodeling activity improved demand patterns for sawtimber products since the onset of the COVID-19 pandemic, supporting steady harvest volume flow to our mill customers. During the quarter, we avoided weather and fire-related losses to our timberlands in the U.S. South and Pacific Northwest, although some harvests were delayed until fourth quarter. Our delivered wood program provided strong production opportunities and sales under our fiber supply agreements remained stable and consistent, providing steady cash flows and offsetting delayed harvests due to weather and fire disruptions. Our stumpage prices in our U.S. South region maintained significant premiums over South-wide averages, a result of our micro-market advantages and the quality of harvests from our prime timberlands. Due to our proven business strategy, we generated consistent operating cash flow in the third quarter that fully covered our quarterly dividend and we remained on course to achieve our full-year operating objectives despite weather, fire and pandemic related challenges experience during the quarter.

We continuously assess potential alternative uses of our timberlands, as some of our properties may be more valuable for development, conservation, recreational or other rural purposes than for growing timber. In the third quarter of 2020, we capitalized on the value of our timberland portfolio by opportunistically monetizing timberland properties, including selling 1,200 acres of timberland for $2.4 million. Year-to-date as of September 30, 2020, we sold 5,200 acres of timberland for $8.9 million. In addition, during the first quarter of 2020, we completed a large disposition of 14,400 acres of timberland located in Georgia for $21.3 million under our capital recycling program, using the net proceeds to pay down debt. When evaluating our land sale opportunities, we assess a full range of matters relating to the timberland property or properties, including, but not limited to inventory stocking below portfolio average, higher mix of hardwood inventory, poor productivity characteristics, geographical procurement and operating areas, and/or timber reservation opportunities.

We are continuing to actively pursue additional strategic investment opportunities in our target markets, including direct acquisition of high-quality industrial timberland properties, with our average transaction size ranging from 2,500 to 25,000 acres.

We continue to leverage our scale and timberland management efficiencies through our investment management business which generates significant asset management fee revenue. Additionally, our investment management business provides access to long-term institutional capital to opportunistically acquire, own and manage timberland properties that fit our investment strategy through joint ventures that can provide sustainable growth for our stockholders.

We continue to have ample liquidity for growth initiatives and other capital allocation priorities, including direct acquisitions and joint venture investments. Our active debt and interest rate management strategy provides us attractive borrowing costs, staggered long-term maturities and a favorable mix of fixed-to-floating rate debt.

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From time to time when we believe our stock is undervalued, we may take advantage of market opportunities by using our share repurchase program, or SRP, to buy shares and return capital to our stockholders. For the nine months ended September 30, 2020, we repurchased $2.0 million in shares under our SRP and, as of September 30, 2020, $13.7 million remains available under our current repurchase program.

Impact of COVID-19 On Our Business

In March 2020, the World Health Organization declared the coronavirus (COVID-19) outbreak a pandemic, and the President of the United States declared the COVID-19 outbreak a national emergency. The COVID-19 outbreak is a widespread health crisis that has adversely affected the economies and financial markets of many countries, including the U.S., resulting in an economic downturn that could affect demand for our products and impact our operating results. Economists expect the impact of the pandemic will continue to be significant during the remainder of 2020 and into 2021.

The outbreak resulted in authorities implementing numerous measures to try to contain the virus, such as quarantines and shelter in place orders. During March and April 2020, most states issued executive orders requiring workers to remain at home, unless their work was critical, essential, or life-sustaining. While many of these executive orders have expired or been partially lifted, others remain in place and call for extended quarantines. These measures may remain in place for a significant period and adversely affect our business, results of operations and financial condition as well as the business, operations and financial conditions of our customers and contractors. We believe that, based on the various standards published to date, our business, particularly with respect to supplying raw materials to the forest products, paper and packaging industry, and the businesses of our customers are essential industries that have been allowed to remain open. Accordingly, COVID-19 has had a limited impact on our physical operations to date. We have implemented new procedures to support the health and safety of our employees, contractors and customers and we are following all federal, state and local health department guidelines. The costs associated with these safety procedures were not material.

While the response to the COVID-19 pandemic began to impact our business toward the end of the first quarter of 2020 and continued through the quarter ended September 30, 2020, we managed our harvest operations effectively through the pandemic during the second and third quarters, increasing year-to-date harvest volumes by 8% and generating comparable timber sales revenue and Harvest EBITDA to the prior year period. Projections under these circumstances are necessarily guarded and subject to change, but demand for pulp-related products has remained strong and demand patterns for sawtimber products have improved from the early days of the pandemic as demand and pricing for lumber has been strong due to increased housing starts and robust repair and remodeling activity. However, given the ongoing and dynamic nature of the circumstances, it is not possible to predict how long the impact of the coronavirus outbreak on the economic environment and on our business will last or how significant it will ultimately be. A sustained decline in the economy as a result of the COVID-19 pandemic and the demand for timber could materially and adversely impact our business, results of operations and financial condition and our ability to make distributions to our stockholders.

The ultimate risk posed by COVID-19 remains uncertain; however, reports as of the date hereof suggest that it poses a material risk to our business, results of operations and financial condition, including as a result of (1) declines in our harvest volumes due to (i) a deterioration in the housing market and a resulting decrease in demand for our sawtimber, (ii) a decline in production level at our customers' mills due to instances of COVID-19 among their employees or decreased demand for their products and (iii) the effects of COVID-19 on contract logging operations, transportation and other critical third-party providers; (2) the inability to complete timberland sales due to the inability of potential buyers to complete title searches and other customary due diligence, including as a result of state and local government office closures; (3) effects on key employees, including operational management personnel and those charged with preparing, monitoring and evaluating the company’s financial reporting and internal controls; and (4) market volatility and market downturns negatively impacting the trading of our common stock.

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In view of the rapidly changing business environment, unprecedented market volatility and heightened degree of uncertainty resulting from COVID-19, we are currently unable to fully determine its future impact on our business. However, we are monitoring the progression of the pandemic and its potential effect on our financial position, results of operations, and cash flows. We will continue to actively monitor the situation and may take further actions that alter our business operations as may be required by federal, state or local authorities or that we determine are in the best interests of our employees, customers, suppliers and shareholders. We are bolstered by our delivered wood model and fiber supply agreements, which provide a steady source of demand from reliable counterparties. With respect to liquidity, we believe we have access to adequate liquidity and capital resources, including cash flow generated from operations, cash on-hand and borrowing capacity, necessary to meet our current and future obligations that become due over the next 12 months. We currently have no plans to reduce anticipated spending on capital investment projects. After our deleveraging initiatives and other balance sheet strengthening in 2019 and the first half of 2020, we believe we are well positioned to weather the economic turmoil.

Timberland Portfolio

As of September 30, 2020, we wholly owned interests in 412,500 acres of high-quality industrial timberland in the U.S. South and Pacific Northwest, consisting of 390,500 acres of fee timberlands and 22,000 acres of leased timberlands. Our wholly-owned timberlands are located within attractive fiber baskets encompassing a diverse group of pulp, paper and wood products manufacturing facilities. Our Southern timberlands consisted of 72% pine plantations by acreage and 53% sawtimber by volume. Our Pacific Northwest timberlands consisted of 90% productive acres and 81% sawtimber by volume. Our leased timberlands include 22,000 acres under one long-term lease expiring in 2022, which we refer to as the LTC Lease. Wholly-owned timberland acreage by state is listed below:


Acres by state as of September 30, 2020 (1)	Fee	Lease	Total
South
Alabama	67,800	1,800	69,600
Florida	2,000	—	2,000
Georgia	232,100	20,200	252,300
North Carolina	100	—	100
South Carolina	70,400	—	70,400
	372,400	22,000	394,400
Pacific Northwest
Oregon	18,100	—	18,100
Total	390,500	22,000	412,500

(1) Represents wholly-owned acreage only; excludes ownership interest in acreage acquired by joint ventures.

As of September 30, 2020, our wholly-owned timber inventory consisted of an estimated 15.9 million tons of merchantable inventory with the following components:


(in millions)	Tons
Merchantable timber inventory (1)	Fee	Lease	Total
Pulpwood	6.9	0.4	7.3
Sawtimber (2)	8.4	0.2	8.6
Total	15.3	0.6	15.9

(1)Merchantable timber inventory does not include current year growth. Pacific Northwest merchantable timber inventory is converted from MBF to tons using a factor of eight.

(2) Includes chip-n-saw and sawtimber.

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In addition to our wholly-owned timberlands, we had the following investments in joint ventures as of September 30, 2020 (see Note 4 — Unconsolidated Joint Ventures to our accompanying consolidated financial statements for further details):


	As of September 30, 2020
	Dawsonville Bluffs Joint Venture	Triple T Joint Venture
Ownership percentage	50.0%	22.0%	(1)
Acreage owned by the joint venture	—	1,085,000
Merchantable timber inventory (million tons)	—	41.1	(2)
Location	Georgia	Texas

(1)Represents our share of total partner capital contributions.

(2)Triple T considers inventory to be merchantable at age 12. Merchantable timber inventory does not include current year growth.

Segment Information

We have three reportable segments: Harvest, Real Estate and Investment Management. Our Harvest segment includes wholly-owned timber assets and associated timber sales, other revenues and related expenses. Our Real Estate segment includes timberland sales, cost of timberland sales and large dispositions. Our Investment Management segment includes investments in and income (loss) from unconsolidated joint ventures and asset management fee revenues earned for the management of these joint ventures. General and administrative expenses, along with other expense and income items, are not allocated among segments. For additional information, see Note 9 — Segment Information to our accompanying consolidated financial statements.

Timber Agreements

A significant portion of our timber sales is derived from the Mahrt Timber Agreements under which we sell specified amounts of timber to WestRock subject to market pricing adjustments. For full year 2020, WestRock is required to purchase a minimum of 409,000 tons of timber under the Mahrt Timber Agreements. For the nine months ended September 30, 2020, WestRock purchased 308,900 tons under the Mahrt Timber Agreements, which represented 12% of our net timber sales revenue. WestRock has historically purchased tonnage that exceeded the minimum requirement under the Mahrt Timber Agreements. See Note 7 — Commitments and Contingencies to our accompanying consolidated financial statements for additional information regarding the material terms of the Mahrt Timber Agreements.

We assumed a pulpwood supply agreement with IP (the "Carolinas Supply Agreement") in connection with a timberland acquisition in 2016. For full year 2020, IP is required to purchase a minimum of 82,000 tons of pulpwood under the Carolinas Supply Agreement. During the nine months ended September 30, 2020, we sold 62,500 tons under the Carolinas Supply Agreement, which represented 3% of our net timber sales revenue.

Liquidity and Capital Resources

Overview

Cash flows generated from our operations are primarily used to fund recurring expenditures and distributions to our stockholders. The amount of distributions to common stockholders is authorized by our board of directors and is dependent upon a number of factors, including funds deemed available for distribution based principally on our current and future projected operating cash flows, less capital requirements necessary to maintain our existing timberland portfolio. In determining the amount of distributions to common stockholders, we also consider our financial condition, our expectations of future sources of liquidity, current and future economic conditions, market demand for timber and timberlands, and tax considerations, including the annual distribution requirements necessary to maintain our status as a REIT under the Code.

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In determining how to allocate cash resources in the future, we will initially consider the source of the cash. We anticipate using a portion of cash generated from operations, after payments of periodic operating expenses and interest expense, to fund certain capital expenditures required for our timberlands. Any remaining cash generated from operations may be used to partially fund timberland acquisitions and pay distributions to stockholders. Therefore, to the extent that cash flows from operations are lower, timberland acquisitions and stockholder distributions are anticipated to be lower as well. Capital expenditures, including new timberland acquisitions, are generally funded with cash flow from operations or existing debt availability; however, proceeds from future debt financings, and equity and debt offerings may be used to fund capital expenditures, acquire new timberland properties, invest in joint ventures, and pay down existing and future borrowings. From time to time, we also sell certain large timberland properties in order to generate capital to fund capital allocation priorities, including but not limited to redeployment into more desirable timberland investments, pay down of outstanding debt or repurchase of shares of our common stock. Such large dispositions are typically larger in size and more infrequent than sales under our normal land sales program.

Shelf Registration Statement and Equity Offerings

On February 28, 2020, we filed a shelf registration statement on Form S-3 (File No. 333-236793) with the SEC, which was declared effective on May 7, 2020. Our shelf registration statement provides us with future flexibility to offer, from time to time and in one or more offerings, up to $600 million in an undefined combination of debt securities, common stock, preferred stock, depositary shares, or warrants. The terms of any such future offerings would be established at the time of an offering. On May 7, 2020, we entered into a distribution agreement with a group of sales agents relating to the sale from time to time of up to $75 million in shares of our common stock in at-the-market offerings or as otherwise agreed with the applicable sales agent, including in block transactions. These shares are registered with the SEC under our shelf registration statement. As of September 30, 2020, we have not sold any shares of common stock under the distribution agreement.

Amendment to Amended Credit Agreement

On May 1, 2020, we entered into an amendment to our credit agreement dated as of December 1, 2017, as amended on August 22, 2018, June 28, 2019 and February 12, 2020 with CoBank, which provided for, among other things: (1) the removal of the LTV ratio covenant reduction, from 50% to 45%, which would have otherwise been effective on December 31, 2021; (2) the removal of the minimum liquidity balance of $25.0 million, which enables us to draw down more proceeds for working capital or other purposes if needed under our Revolving Credit Facility; (3) a reduction in the Multi-Draw Term Facility commitment from $200 million to $150 million, which still provides us with ample capacity for future acquisitions while lowering our unused commitment fees; and (4) the ability to make additional investments in joint ventures during 2020 if we meet certain LTV ratio requirements.

The table below presents the details of each credit facility under the Amended Credit Agreement as of September 30, 2020:


(dollars in thousands)
Facility Name	Maturity Date	Interest Rate(1)	Unused Commitment Fee	Total Capacity		Outstanding Balance		Remaining Capacity
Revolving Credit Facility	12/1/2022	LIBOR + 1.90%	0.35%	$	35,000	$	—	$	35,000
Multi-Draw Term Facility	12/1/2024	LIBOR + 1.90%	0.35%	150,000		34,086		115,914
Term Loan A-1	12/23/2024	LIBOR + 1.75%	N/A	100,000		100,000		—
Term Loan A-2	12/1/2026	LIBOR + 1.90%	N/A	100,000		100,000		—
Term Loan A-3	12/1/2027	LIBOR + 2.00%	N/A	68,619		68,619		—
Term Loan A-4	8/22/2025	LIBOR + 1.70%	N/A	140,000		140,000		$	—
Total				$	593,619	$	442,705	$	150,914

(1)The applicable LIBOR margin on the Revolving Credit Facility and the Multi-Draw Term Facility ranges from a base rate plus between 0.50% to 1.20% or a LIBOR rate plus 1.50% to 2.20%, depending on the LTV ratio. The unused commitment fee rates also depend on the LTV ratio.

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Borrowings under the Revolving Credit Facility may be used for general working capital, to support letters of credit, to fund cash earnest money deposits, to fund acquisitions in an amount not to exceed $5.0 million, and for other general corporate purposes. The Multi-Draw Term Facility, which is interest only until its maturity date, may be used to finance timberland acquisitions and associated expenses, to fund investment in joint ventures, to fund the repurchase of our common stock, and to reimburse payments of drafts under letters of credit.

Patronage Dividends

We are eligible to receive annual patronage dividends from our lenders (the "Patronage Banks") under the Amended Credit Agreement. The annual patronage dividend depends on the weighted-average patronage-eligible debt balance with each participating lender during the respective fiscal year, as calculated by CoBank, as well as the financial performance of the Patronage Banks. In March 2020, we received patronage dividends of $4.1 million, including $4.0 million of standard patronage dividends and a $0.1 million special patronage dividend. 75% of the standard patronage dividends was received in cash and the remaining 25% was received in equity in Patronage Banks. The equity component of the patronage dividend is redeemable for cash only at the discretion of the Patronage Banks' board of directors. The special patronage dividend was received in cash. For the three months ended September 30, 2020, we accrued $0.9 million of patronage dividends receivable for 2020. For the nine months ended September 30, 2020, we accrued $2.7 million of patronage dividends receivable for 2020, approximately 75% of which is expected to be received in cash in March 2021.

Debt Covenants

As of September 30, 2020, the Amended Credit Agreement contains, among others, the following financial covenants which:

•limit the LTV ratio to 50%;

•require maintenance of a FCCR of not less than 1.05:1.00 at any time; and

•limit the aggregate capital expenditures to 1% of the value of the timberlands during any fiscal year.

We were in compliance with the financial covenants of the Amended Credit Agreement as of September 30, 2020.

Interest Rate Swaps

As of September 30, 2020, we had two outstanding interest rate swaps, which effectively fixed the interest rate on $275.0 million of our $442.7 million variable-rate debt at 3.98%, inclusive of the applicable spread but before considering patronage dividends. See Note 6 —Interest Rate Swaps to our accompanying financial statements for further details on our interest rate swaps.

Share Repurchase Program

On August 7, 2015, our board of directors approved a share repurchase program for up to $30.0 million of our common stock at management's discretion (the "SRP"). The program has no set duration and the board may discontinue or suspend the program at any time. During the three months ended September 30, 2020, we did not repurchase any share of our common stock under the SRP. During the nine months ended September 30, 2020, we repurchased 304,719 shares of our common stock at an average price of $6.53 per share for a total of $2.0 million under the SRP, including transaction costs. All common stock purchases under the SRP were made in open-market transactions and were funded with cash on-hand. As of September 30, 2020, we had 48.8 million shares of common stock outstanding and may repurchase up to an additional $13.7 million under the SRP. We can borrow up to $30.0 million under the Multi-Draw Term Facility to repurchase our common stock. Management believes that opportunistic repurchases of our common stock are a prudent use of capital resources.

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Short-Term Liquidity and Capital Resources

Net cash provided by operating activities for the nine months ended September 30, 2020 was $27.6 million, $0.9 million lower than the nine months ended September 30, 2019. Cash provided by operating activities consisted primarily of receipts from customers for timber, timberland sales and asset management fees, reduced by payments for operating costs, general and administrative expenses, and interest expense. The decrease was primarily due to a $3.5 million decrease in net proceeds from timberland sales, a $3.0 million increase in asset management fee receivable from the Triple T Joint Venture due to timing of receipt, a $2.4 million increase in general and administrative expense (including $1.6 million paid in connection with our former CEO's retirement), a $0.5 million decrease in operating distributions from the Dawsonville Bluffs Joint Venture, and a $0.3 million decrease in other revenues, offset by a $6.8 million decrease in cash paid for interest, a $1.5 million decrease in cash used for working capital due to timing of receipts and payments, and a $0.7 million increase in net timber sales.

Net cash provided by investing activities for the nine months ended September 30, 2020 was $11.7 million as compared to $26.1 million for the nine months ended September 30, 2019. We invested an additional $5.0 million in the Triple T Joint Venture in 2020, received $4.3 million less in gross proceeds from large dispositions and $3.9 million less in cash distributions from the Dawsonville Bluffs Joint Venture, and incurred $1.3 million more in capital expenditures during the nine months ended September 30, 2020 as compared to 2019.

Net cash used in financing activities for the nine months ended September 30, 2020 was $42.8 million as compared to $43.2 million for the nine months ended September 30, 2019. We paid down $20.9 million of our outstanding debt balance on the Multi-Draw Term Facility with net proceeds received from large dispositions. We paid cash distributions of $19.7 million to our stockholders during the nine months ended September 30, 2020, funded from net cash provided by operating activities. We repurchased $3.3 million of shares of our common stock using cash on-hand and paid $2.9 million in interest expense pursuant to the terms of our interest rate swaps during the nine months ended September 30, 2020. Additionally, we paid $1.0 million in deferred financing costs, of which $0.9 million was paid in connection with the amendment to our credit agreement in May 2020. We also borrowed $5.0 million under our Multi-Draw Term Facility to fund the additional equity investment in the Triple T Joint Venture.

We believe that we have access to adequate liquidity and capital resources, including cash flow generated from operations, cash on-hand and borrowing capacity, necessary to meet our current and future obligations that become due over the next 12 months. As of September 30, 2020, we had a cash balance of $8.0 million and had access to $150.9 million of additional borrowing capacity under the Amended Credit Agreement.

Long-Term Liquidity and Capital Resources

Over the long-term, we expect our primary sources of capital to include net cash flows from operations, including proceeds from timber sales, timberland sales, asset management fees, and distributions from unconsolidated joint ventures, and from other capital raising activities, including large dispositions, proceeds from secured or unsecured financings from banks and other lenders; and public offerings of equity or debt securities. Our principal demands for capital include operating expenses, interest expense on any outstanding indebtedness, repayment of debt, timberland acquisitions, certain other capital expenditures, and stockholder distributions.

Contractual Obligations and Commitments

As of September 30, 2020, our contractual obligations were as follows:


	Payments Due by Period
(in thousands)	Total		2020		2021-2022		2023-2024		Thereafter
Debt obligations (1)	$	442,705	$	—	$	—	$	134,086	$	308,619
Estimated interest on debt obligations (1) (2)	$	82,741	$	3,568	$	28,549	$	28,477	$	22,147
Operating lease obligations (3)	$	4,453	$	116	$	1,582	$	882	$	1,873
Total	$	529,899	$	3,684	$	30,131	$	163,445	$	332,639

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(1)Represents respective obligations under our Amended Credit Agreement as of September 30, 2020, of which $408.6 million was outstanding under the term loans and $34.1 million was outstanding under the Multi-Draw Term Facility.

(2)Amounts are before the consideration of patronage dividends and include the impact of interest rate swaps. See Note 5 — Notes Payable and Lines of Credit and Note 6 — Interest Rate Swaps to our accompanying consolidated financial statements for additional information.

(3)Represents future payments for our office lease and timberland operating lease. See Note 7 — Commitments and Contingencies to our accompanying consolidated financial statements for additional information.

Distributions

Our board of directors has authorized cash distributions quarterly. The amount of future distributions that we may pay will be authorized by our board of directors. During the nine months ended September 30, 2020, our board of directors authorized the following distributions:

Declaration Date

Record Date

Payment Date

Distribution Per Share

February 13, 2020

February 28, 2020

March 16, 2020

$0.135

May 4, 2020

May 29, 2020

June 15, 2020

$0.135

August 3, 2020

August 31, 2020

September 15, 2020

$0.135

For the nine months ended September 30, 2020, we paid total distributions of $19.7 million, including $0.1 million paid to the limited partners of CatchMark Timber OP. The distributions were funded from net cash provided by operating activities.

On October 29, 2020, we declared a cash dividend of $0.135 per share for our common stockholders of record on November 30, 2020, payable on December 15, 2020.

Results of Operations

Overview

Our results of operations are materially impacted by the fluctuating nature of timber prices, changes in the levels and mix of our harvest volumes and associated depletion expense, changes to associated depletion rates, the level of timberland sales, management fees earned, large dispositions, varying interest expense based on the amount and cost of outstanding borrowings, and performance of our unconsolidated joint ventures.

Timber sales volumes, harvest mix, net timber sales prices, timberland sales, large dispositions, and changes in the levels and composition for the three months and nine months ended September 30, 2020 and 2019 are shown in the following tables:


	Three Months Ended September 30,				Change
(dollar amounts in thousands, except for per-ton and per-acre amounts)	2020		2019		%
Consolidated
Timber sales revenue	$	18,060	$	19,706	(8)	%
Timberland sales revenue	$	2,430	$	2,264	7	%
Asset management fees revenue	$	3,118	$	3,436	(9)	%

Timber sales volume (tons)
Pulpwood	349,405		375,549		(7)	%
Sawtimber (1)	231,123		258,182		(10)	%
	580,528		633,731		(8)	%

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U.S. South
Timber sales revenue	$	15,385		$	17,880		(14)	%

Timber sales volume (tons)
Pulpwood	346,043			372,389			(7)	%
Sawtimber (1)	206,495			237,385			(13)	%
	552,538			609,774			(9)	%

Harvest Mix
Pulpwood	63		%	61		%
Sawtimber (1)	37		%	39		%
Delivered % as of total volume	63		%	64		%
Stumpage % as of total volume	37		%	36		%

Net timber sales price (per ton) (2)
Pulpwood	$	13		$	14		(6)	%
Sawtimber (1)	$	22		$	24		(7)	%

Timberland sales
Gross sales	$	2,430		$	2,264		7	%
Acres sold	1,200			1,100			8	%
% of fee acres	0.3		%	0.2		%
Price per acre (3)	$	2,047		$	2,166		(5)	%

Large Dispositions (4)
Gross sales	$	—		$	19,920
Acres sold	—			10,800
Price per acre	$	—		$	1,845
Gain on large dispositions	$	—		$	7,197

Pacific Northwest
Timber sales revenue	$	2,675		$	1,826		46	%

Timber sales volume (tons)
Pulpwood	3,362			3,160			6	%
Sawtimber	24,628			20,797			18	%
	27,990			23,957			17	%

Harvest Mix
Pulpwood	12		%	13		%
Sawtimber	88		%	87		%
Delivered % as of total volume	100		%	100		%
Stumpage % as of total volume	—		%	—		%

Delivered timber sales price (per ton) (2)(5)
Pulpwood	$	28		$	30		(7)	%
Sawtimber	$	105		$	83		26	%

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(1)Includes chip-n-saw and sawtimber.

(2)Prices per ton are rounded to the nearest dollar.

(3)Excludes value of timber reservations, which retained 8,000 tons of merchantable inventory, with a pulpwood mix of 100%, for the three months ended September 30, 2020. No timber reservations retained for the three months ended September 30, 2019.

(4)Large dispositions are sales of blocks of timberland properties in one or several transactions with the objective to generate proceeds to fund capital allocation priorities. Large dispositions are typically larger transactions in acreage and gross sales price than recurring HBU sales and are not part of core operations, are infrequent in nature and would cause material variances in comparative results if not reported separately. Large dispositions may or may not have a higher or better use than timber production or result in a price premium above the land’s timber production value.

(5)Shown on a delivered basis which includes contract logging and hauling costs.


	Nine Months Ended September 30,						Change
(dollar amounts in thousands, except for per-ton and per-acre amounts)	2020			2019			%
Consolidated
Timber sales revenue	$	52,399		$	52,530		—	%
Timberland sales revenue	$	8,882		$	12,578		(29)	%
Asset management fees revenue	$	8,950		$	9,119		(2)	%

Timber sales volume (tons)
Pulpwood	1,028,075			974,373			6	%
Sawtimber (1)	715,255			640,876			12	%
	1,743,330			1,615,249			8	%

U.S. South
Timber sales revenue	$	46,222		$	49,003		(6)	%

Timber sales volume (tons)
Pulpwood	1,017,617			969,702			5	%
Sawtimber (1)	651,509			602,243			8	%
	1,669,126			1,571,945			6	%

Harvest Mix
Pulpwood	61		%	62		%
Sawtimber (1)	39		%	38		%
Delivered % as of total volume	62		%	72		%
Stumpage % as of total volume	38		%	28		%

Net timber sales price (per ton) (2)
Pulpwood	$	13		$	14		(10)	%
Sawtimber (1)	$	23		$	24		(6)	%

Timberland sales
Gross sales	$	8,882		$	12,578		(29)	%
Acres sold	5,200			6,000			(13)	%
% of fee acres	1.3		%	1.4		%
Price per acre (3)	$	1,710		$	2,114		(19)	%

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Large Dispositions (4)
Gross sales	$	21,250		$	25,395		(16)	%
Acres sold	14,400			14,400			—
Price per acre	$	1,474		$	1,758		(16)	%
Gain on large dispositions	$	1,274		$	7,961		(84)	%

Pacific Northwest
Timber sales revenue	$	6,177		$	3,527		75	%

Timber sales volume (tons)
Pulpwood	10,458			4,671			124	%
Sawtimber	63,746			38,633			65	%
	74,204			43,304			71	%

Harvest Mix
Pulpwood	14		%	11		%
Sawtimber	86		%	89		%
Delivered % as of total volume	95		%	96		%
Stumpage % as of total volume	5		%	4		%

Delivered timber sales price (per ton) (2)(5)
Pulpwood	$	30		$	33		(9)	%
Sawtimber	$	94		$	89		6	%

(1)Includes chip-n-saw and sawtimber.

(2)Prices per ton are rounded to the nearest dollar.

(3)Excludes value of timber reservations, which retained 123,000 tons and 6,000 tons of merchantable inventory, respectively, with a sawtimber mix of 48% and 6%, respectively, for the nine months ended September 30, 2020 and 2019.

(4)Large dispositions are sales of blocks of timberland properties in one or several transactions with the objective to generate proceeds to fund capital allocation priorities. Large dispositions are typically larger transactions in acreage and gross sales price than recurring HBU sales and are not part of core operations, are infrequent in nature and would cause material variances in comparative results if not reported separately. Large dispositions may or may not have a higher or better use than timber production or result in a price premium above the land’s timber production value.

(5)Shown on a delivered basis which includes contract logging and hauling costs.

We generated $18.1 million of gross timber sales revenue in the third quarter, as compared to $19.7 million in the prior year quarter, as a result of a $2.5 million decrease in the U.S. South, partially offset by a $0.9 million increase in the Pacific Northwest.

Our timber sales revenue decreased 14% in the U.S. South due to a 9% decrease in volume as well as lower stumpage prices. The decrease in harvest volume was primarily a result of (i) 2020’s harvest being more evenly distributed throughout the year while 2019’s harvest was more heavily weighted towards the second half of the year, and (ii) persistent wet weather in the U.S. South during the quarter, especially in our Carolinas market. Despite the impact from the weather, we believe that we will achieve our 2020 harvest plan. Our realized stumpage prices for pulpwood and sawtimber were 6% and 7% lower, respectively, compared to the prior year quarter, trending with 11% and 13% decreases in South-wide average prices as tracked by TimberMart-South. Our sawtimber stumpage price decreased from prior year quarter due to a heavier mix of chip-n-saw and smaller diameter sawtimber as a result of shifting demand patterns during the current economic environment. However, our realized stumpage prices

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have improved from the second quarter of 2020 and continue to hold a significant premium over South-wide averages as a result of operating in strong micro-markets where we selectively assembled our prime timberlands portfolio.

In the Pacific Northwest, the wildfires that erupted in early September did not cause any direct damage to our timberlands; however, shutdowns of harvesting activities ordered by the local government authorities interrupted our harvest operations towards the end of the third quarter. Despite the impact from the shutdowns, our harvest volume increased 17% from the prior year quarter, and our delivered sawtimber price increased 26% due to strong demand fundamentals fueled by increased housing starts, lack of finished lumber in the supply chain and reduced mill inventories as a result of the wildfires. We have fully resumed our operations since the beginning of the fourth quarter and we expect to meet our 2020 harvest plan for the Pacific Northwest region.

Comparison of the three months ended September 30, 2020 versus the three months ended September 30, 2019

Revenues. Revenues for the three months ended September 30, 2020 were $24.6 million, $1.8 million lower than the three months ended September 30, 2019 as a result of a $1.6 million decrease in timber sales, and a $0.3 million decrease in asset management fees, offset by a $0.2 million increase in timberland sales revenue. Timber sales revenue decreased primarily due to lower harvest volume, as expected, due to timing of the harvest in accordance with our 2020 harvest plan and wet weather. Asset management fees decreased $0.3 million as we received a $0.6 million incentive-based promote from the Dawsonville Bluffs Joint Venture in the prior year quarter for exceeding investment hurdles, offset by a $0.3 million increase in the current quarter in connection with the amendment to the Triple T Joint Venture's asset management agreement during the second quarter of 2020. Timberland sales revenue increased by $0.2 million due to selling more acres in the current quarter but at lower price per acre due to lower average merchantable timber stocking levels on the acres sold in the current year quarter.

Timber sales revenue by product for the three months ended September 30, 2020 and 2019 is shown in the following table:


	Three Months Ended September 30, 2019		Changes attributable to:				Three Months Ended September 30, 2020
(in thousands)			Price/Mix		Volume
Timber sales (1)
Pulpwood	$	9,756	$	(376)	$	(881)	$	8,499
Sawtimber (2)	9,950		348		(737)		9,561
	$	19,706	$	(28)	$	(1,618)	$	18,060

(1)Timber sales are presented on a gross basis.

(2)Includes chip-n-saw and sawtimber.

Operating Expenses. Contract logging and hauling costs were $7.7 million for the three months ended September 30, 2020, $0.6 million lower than prior year quarter primarily due to a 10% decrease in delivered volume in the U.S. South as anticipated in our harvest plan.

Depletion expense decreased 12% to $7.3 million for the three months ended September 30, 2020 from $8.2 million for the three months ended September 30, 2019 due to lower harvest volumes in the U.S. South and lower blended depletion rates in both the U.S. South and Pacific Northwest. We calculate depletion rates annually by dividing the beginning merchantable inventory book value, after the write-off of accumulated depletion, by current standing timber inventory volume. Before the impact of any future acquisitions or significant land sales, the merchantable book value is expected to decrease over time due to depletion while the standing timber inventory volume is expected to stay relatively stable due to our sustainable harvest management practices. Therefore, we generally expect the depletion rates of our current portfolio to decrease over time.

Cost of timberland sales decreased to $1.9 million for the three months ended September 30, 2020 from $2.1 million for the three months ended September 30, 2019 despite selling more acres due to lower cost basis as a result of lower average merchantable timber stocking on acres sold in the current year quarter.

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General and administrative expenses were $2.8 million for the three months ended September 30, 2020, $0.2 million lower than 2019 primarily due to a decrease in personnel costs related to the retirement of our former CEO in January 2020.

Interest expense. Interest expense decreased $0.9 million to $3.6 million for the three months ended September 30, 2020 primarily due to a $1.4 million decrease in interest paid, offset by $0.4 million of amortization of the off-market swap value at hedge inception in the current year quarter. We paid less interest as a result of a decrease in average outstanding debt balance and a lower weighted-average interest rate compared to the prior year quarter.

Gain on large dispositions. During the three months ended September 30, 2020, we did not complete any large dispositions. During the same period in 2019, we recognized a gain of $7.2 million on the disposition of 10,800 acres of our wholly-owned timberlands.

Loss from unconsolidated joint ventures. We recognized a $2.7 million loss from the Triple T Joint Venture under the HLBV method of accounting during the third quarter, reducing the carrying value of the additional $5.0 million equity investment we made last quarter to zero. For the three months ended September 30, 2019, we recognized a $25.7 million HLBV loss from the Triple T Joint Venture.

Net loss. Our net loss decreased by $16.4 million to $4.1 million for the three months ended September 30, 2020 from $20.6 million for the three months ended September 30, 2019 primarily due to a $23.0 million decrease in losses allocated from the Triple T Joint Venture and a $1.8 million decrease in total expenses, offset by a $7.2 million decrease in gain on large dispositions and a $1.6 million decrease in gross timber sales. Our net loss per share for the three months ended September 30, 2020 and 2019 was $0.09 and $0.42, respectively.

Comparison of the nine months ended September 30, 2020 versus the nine months ended September 30, 2019

Revenues. Revenues for the nine months ended September 30, 2020 were $73.3 million, $4.3 million lower than the nine months ended September 30, 2019 as a result of a $3.7 million decrease in timberland sales revenue, a $0.3 million decrease in other revenues, and a $0.2 million decrease in asset management fees. Timberland sales revenue decreased by $3.7 million due to selling fewer acres in the current year and such acres being sold at lower per-acre price as a result of a lower average merchantable timber stocking levels and higher timber reservations. Other revenues were higher in 2019 due to a $0.3 million gain from an early lease termination. Asset management fees decreased by $0.2 million from the prior year as a result of receiving a higher incentive-based promote from the Dawsonville Bluffs Joint Venture in 2019 offset by increase in asset management fees earned from the Triple T Joint Venture in connection with the amendment to the asset management agreement during the second quarter of 2020.

Timber sales revenue by product for the nine months ended September 30, 2020 and 2019 is shown in the following table:


	Nine Months Ended September 30, 2019		Changes attributable to:				Nine Months Ended September 30, 2020
(in thousands)			Price/Mix		Volume
Timber sales (1)
Pulpwood	$	26,728	$	(1,499)	$	(875)	$	24,354
Sawtimber (2)	25,802		(489)		2,732		28,045
	$	52,530	$	(1,988)	$	1,857	$	52,399

(1)Timber sales are presented on a gross basis.

(2)Includes chip-n-saw and sawtimber.

Operating Expenses. Contract logging and hauling costs were $21.9 million for the nine months ended September 30, 2020, $0.8 million, or 4%, lower than the prior year as a result of a $2.2 million decrease in the U.S.

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South driven by lower delivered volume and blended logging rates, offset by a $1.4 million increase in the Pacific Northwest driven by increased harvest volume.

Depletion expense increased 7% to $20.9 million for the nine months ended September 30, 2020 from $19.5 million for the nine months ended September 30, 2019 primarily due to a $1.5 million increase in the Pacific Northwest driven by an increase of 30,900 tons in harvest volume from 2019 to 2020. Depletion rates in both regions decreased from the prior year period.

Cost of timberland sales decreased to $6.8 million for nine months ended September 30, 2020 from $10.6 million for the nine months ended September 30, 2019 as we sold fewer acres in 2020 and the per-acre cost basis was lower than in 2019 as a result of lower merchantable timber stocking on the acres sold in 2020.

General and administrative expenses were $13.1 million for the nine months ended September 30, 2020, $3.5 million higher than the prior year primarily as a result of recognizing non-recurring post-employment benefits of $3.5 million related to the retirement of our former CEO in January 2020, of which $1.2 million represents the incremental non-cash stock-based compensation expense related to the accelerated vesting of his outstanding equity awards. See further detail in Note 8 — Stock-based Compensation to our accompanying consolidated financial statements for additional information.

Interest expense. Interest expense decreased $2.2 million to $11.6 million for the nine months ended September 30, 2020 primarily due to a $3.9 million net decrease in interest on our outstanding debt as a result of a lower average outstanding debt balance and lower weighted-average interest rates, offset by a $1.3 million increase in non-cash interest expense related to the amortization of the off-market swap value at hedge inception in the current year, and a $0.4 million write-off of deferred financing costs as a result of amending our credit agreement in May 2020. See Note 5 — Notes Payable and Lines of Credit to our accompanying consolidated financial statements.

Gain on large dispositions. During the nine months ended September 30, 2020, we recognized a gain of $1.3 million on the disposition of 14,400 acres of our wholly-owned timberlands. During the nine months ended September 30, 2019, we recognized a gain of $8.0 million on the disposition of 14,400 acres of our wholly-owned timberlands. Large dispositions in 2019 generated a higher gain primarily driven by a higher per-acre sales price due to the HBU characteristics and lower cost basis in land as a result of lower allocated acquisition basis.

Loss from unconsolidated joint ventures. During the nine months ended September 30, 2020, we made an additional equity investment of $5.0 million in the Triple T Joint Venture and recognized $5.0 million of losses from the unconsolidated joint venture under the HLBV method of accounting. We had previously recognized cumulative HLBV losses of $200.0 million as of December 31, 2019, reducing the carrying value of our investment to zero and ceasing the recognition of additional losses from the Triple T Joint Venture under equity method accounting until our additional $5.0 million investment in June 2020. For the nine months ended September 30, 2019, we recognized a $81.8 million loss from the Triple T Joint Venture.

Net loss. Our net loss decreased by $66.9 million to $14.6 million for the nine months ended September 30, 2020 from $81.5 million for the nine months ended September 30, 2019 primarily due to a $76.8 million decrease in losses allocated from the Triple T Joint Venture, offset by a $6.7 million decrease in gain on large dispositions, and a $4.3 million decrease in total gross revenues. Our net loss per share for the nine months ended September 30, 2020 and 2019 was $0.30 and $1.66, respectively.

Adjusted EBITDA

The discussion below is intended to enhance the reader’s understanding of our operating performance and ability to satisfy lender requirements. EBITDA is a non-GAAP financial measure of operating performance. EBITDA is defined by the SEC as earnings before interest, taxes, depreciation and amortization; however, we have excluded certain other expenses which we believe are not indicative of the ongoing operating results of our timberland portfolio, and we refer to this measure as Adjusted EBITDA (see the reconciliation table below). As such, our

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Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. Due to the significant amount of timber assets subject to depletion, significant income (losses) from unconsolidated joint ventures based on HLBV, and the significant amount of financing subject to interest and amortization expense, management considers Adjusted EBITDA to be an important measure of our financial performance. By providing this non-GAAP financial measure, together with the reconciliation below, we believe we are enhancing investors’ understanding of our business and our ongoing results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives. Items excluded from Adjusted EBITDA are significant components in understanding and assessing financial performance. Adjusted EBITDA is a supplemental measure of operating performance that does not represent and should not be considered in isolation or as an alternative to, or substitute for net income, cash flow from operations, or other financial statement data presented in accordance with GAAP in our consolidated financial statements as indicators of our operating performance. Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Some of the limitations are:

•Adjusted EBITDA does not reflect our capital expenditures, or our future requirements for capital expenditures;

•Adjusted EBITDA does not reflect changes in, or our interest expense or the cash requirements necessary to service interest or principal payments on, our debt;

•Although depletion is a non-cash charge, we will incur expenses to replace the timber being depleted in the future, and Adjusted EBITDA does not reflect all cash requirements for such expenses; and

•Although HLBV income and losses are primarily hypothetical and non-cash in nature, Adjusted EBITDA does not reflect cash income or losses from unconsolidated joint ventures for which we use the HLBV method of accounting to determine our equity in earnings.

•Adjusted EBITDA does not reflect the cash requirements necessary to fund post-employment benefits or transaction costs related to acquisitions, investments, joint ventures or new business initiatives, which may be substantial.

Due to these limitations, Adjusted EBITDA should not be considered as a measure of discretionary cash available to us to invest in the growth of our business. Our credit agreement contains a minimum debt service coverage ratio based, in part, on Adjusted EBITDA since this measure is representative of adjusted income available for interest payments. We further believe that our presentation of this non-GAAP financial measurement provides information that is useful to analysts and investors because they are important indicators of the strength of our operations and the performance of our business.

For the three months ended September 30, 2020, Adjusted EBITDA was $12.4 million, a $4.1 million decrease from the three months ended September 30, 2019, primarily due to a $3.3 million decrease in Adjusted EBITDA generated by the Dawsonville Bluffs Joint Venture, and a $1.1 million decrease in net timber sales, offset by a $0.2 million increase in net timberland sales.

For the nine months ended September 30, 2020, Adjusted EBITDA was $34.7 million, a $7.0 million decrease from the nine months ended September 30, 2019, primarily due to a $3.9 million decrease in Adjusted EBITDA generated by the Dawsonville Bluffs Joint Venture, a $3.5 million decrease in net timberland sales, and a $0.3 million decrease in other revenues, offset by a $0.7 million increase in net timber sales.

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Our reconciliation of net loss to Adjusted EBITDA for the three months and nine months ended September 30, 2020 and 2019 follows:


`	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2020		2019		2020		2019
Net loss	$	(4,149)	$	(20,557)	$	(14,581)	$	(81,517)
Add:
Depletion	7,286		8,235		20,934		19,533
Interest expense (1)	2,865		4,220		9,121		12,987
Amortization (1)	747		299		2,621		986
Depletion, amortization, basis of timberland, mitigation credits sold included in loss from unconsolidated joint venture (2)	140		3,152		140		3,547
Basis of timberland sold, lease terminations and other (3)	1,991		1,854		6,988		10,329
Stock-based compensation expense	630		803		3,207		1,952
Gain on large dispositions (4)	—		(7,197)		(1,274)		(7,961)
HLBV loss from unconsolidated joint venture (5)	2,689		25,712		5,000		81,800
Post-employment benefits (6)	10		—		2,307		—
Other (7)	190		1		260		115
Adjusted EBITDA	$	12,399	$	16,522	$	34,723	$	41,771

(2)Reflects our share of depletion, amortization, and basis of timberland and mitigation credits sold of the unconsolidated Dawsonville Bluffs Joint Venture.

(3)Includes non-cash basis of timber and timberland assets written-off related to timberland sold, terminations of timberland leases and casualty losses.

(5)Reflects HLBV (income) losses from the Triple T Joint Venture, which is determined based on a hypothetical liquidation of the underlying joint venture at book value as of the reporting date.

Application of Critical Accounting Policies

There have been no material changes to our critical accounting policies from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2019.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

As a result of our debt facilities, we are exposed to interest rate changes. Our interest rate risk management objectives are to limit the impact of interest rate changes on earnings and cash flows and to lower our overall borrowing costs. To achieve these objectives, we have entered into interest rate swaps, and may enter into other

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interest rate swaps, caps, or other arrangements in order to mitigate our interest rate risk on a related financial instrument. We do not enter into derivative or interest rate transactions for speculative purposes; however, certain of our derivatives may not qualify for hedge accounting treatment. All of our debt was entered into for other than trading purposes. We manage our ratio of fixed-to-floating-rate debt with the objective of achieving a mix that we believe is appropriate in light of anticipated changes in interest rates. We closely monitor interest rates and will continue to consider the sources and terms of our borrowing facilities to determine whether we have appropriately guarded ourselves against the risk of increasing interest rates in future periods.

As of September 30, 2020, we had following debt balances outstanding under the Amended Credit Agreement:

(in thousands)

Credit Facility

Maturity Date

Interest Rate

Outstanding Balance

Term Loan A-1

12/23/2024

LIBOR + 1.75%

100,000

Term Loan A-2

12/1/2026

LIBOR + 1.90%

100,000

Term Loan A-3

12/1/2027

LIBOR + 2.00%

68,619

Term Loan A-4

8/22/2025

LIBOR + 1.70%

140,000

Multi-Draw Term Facility

12/1/2024

LIBOR + 1.90%

34,086

Total Principal Balance

442,705

As of September 30, 2020, we had two outstanding interest rate swaps with terms below:

(in thousands)

Interest Rate Swap

Effective Date

Maturity Date

Pay Rate

Receive Rate

Notional Amount

2019 Swap - 10YR

11/29/2019

11/30/2029

2.2067%

one-month LIBOR

200,000

2019 Swap - 7YR

11/29/2019

11/30/2026

2.0830%

one-month LIBOR

75,000

Total

275,000

As of September 30, 2020, after consideration of the interest rate swaps, $167.7 million of our total debt outstanding was subject to variable interest rates while the remaining $275.0 million was subject to effectively fixed interest rates. A change in the market interest rate impacts the net financial instrument position of our effectively fixed-rate debt portfolio; however, it has no impact on interest incurred or cash flows.

Details of our variable-rate and effectively fixed-rate debt outstanding as of September 30, 2020, along with the corresponding average interest rates, are listed below:


	Expected Maturity Date
(dollars in thousands)	2020			2021			2022			2023			2024			Thereafter			Total
Maturing debt:
Variable-rate debt	$	—		$	—		$	—		$	—		$	66,786		$	100,919		$	167,705
Effectively fixed-rate debt	$	—		$	—		$	—		$	—		$	67,300		$	207,700		$	275,000
Average interest rate: (1)
Variable-rate debt	—		%	—		%	—		%	—		%	1.98		%	1.98		%	1.98		%
Effectively fixed-rate debt	—		%	—		%	—		%	—		%	3.98		%	3.98		%	3.98		%

(1)Inclusive of applicable spread but before considering patronage dividends.

As of September 30, 2020, the weighted-average interest rate of our outstanding debt, after consideration of the interest rate swaps, was 3.22%, before considering patronage dividends. A 1.0% change in interest rates would result in a change in interest expense of $1.7 million per year. The amount of effectively variable-rate debt outstanding in the future will largely be dependent upon the level of cash flow from operations and the rate at which we are able to deploy such cash flow toward repayment of outstanding debt, the acquisition of timberland properties, and investments in joint ventures.

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ITEM 4. CONTROLS AND PROCEDURES

Management’s Conclusions Regarding the Effectiveness of Disclosure Controls and Procedures

We carried out an evaluation, under the supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this report. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report in providing a reasonable level of assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods in SEC rules and forms, including providing a reasonable level of assurance that information required to be disclosed by us in such reports is accumulated and communicated to our management, including our Chief Executive Officer and our Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting during the quarter ended September 30, 2020 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. In response to the COVID-19 pandemic, our teams have been working remotely since the middle of March. We took precautionary measures to ensure our internal control over financial reporting addressed the risks of working in a remote environment. We are continually monitoring and assessing the potential effects of the COVID-19 pandemic on the design and operating effectiveness of our internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1.LEGAL PROCEEDINGS

From time to time, we are party to legal proceedings, which arise in the ordinary course of our business. We are not currently involved in any legal proceedings of which the outcome is reasonably likely to have a material adverse effect on our results of operations or financial condition, nor are we aware of any such legal proceedings contemplated by governmental authorities.

ITEM 1A. RISK FACTORS

There are no material changes from the risk factors included in our Annual Report on Form 10-K for the year ended December 31, 2019 and our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Issuer Purchases of Equity Securities

The following table provides information regarding our purchases of our common stock during the quarter ended September 30, 2020:

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Period	Total Number of Shares Repurchased (2)	Average Price Paid per Share (2)		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1)	Average Price Paid per Share (1)		Maximum Number (Or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (1)
July 1 - July 31	5,810	$	9.21	—	$	—	$	13.7	million
August 1 - August 31	—	$	—	—	$	—	$	13.7	million
September 1 - September 30	—	$	—	—	$	—	$	13.7	million
Total	5,810			—

(1)See Item 2— Management Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources for details of our SRP.

(2)Includes shares purchased for tax withholding purposes outside of our SRP.

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ITEM 6. EXHIBITS

The exhibits required to be filed with this report are set forth below and incorporated by reference herein.


Exhibit Number						Description

3.1						Sixth Articles of Amendment and Restatement of CatchMark Timber Trust, Inc. (incorporated by reference to Exhibit 3.1 to the Quarterly Report on Form 10-Q for the quarter ended June 30, 2013 filed on August 9, 2013)

3.2						First Articles of Amendment to the Sixth Articles of Amendment and Restatement of CatchMark Timber Trust, Inc. (incorporated by reference to Exhibit 3.2 to the Registration Statement on Form S-11 (File No. 333-191322) filed on September 23, 2013

3.3						Articles of Amendment of CatchMark Timber Trust, Inc. (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed on October 25, 2013 (the “October 25 Form 8-K”))

3.4						Articles of Amendment of CatchMark Timber Trust, Inc. (incorporated by reference to Exhibit 3.2 to the October 25 Form 8-K)

3.5						Articles Supplementary (incorporated by reference to Exhibit 3.3 to the October 25 Form 8-K)

3.6						Amended and Restated Bylaws (incorporated by reference to Exhibit 3.6 to Registration Statement on Form S-8 (File No. 333-191916) filed on October 25, 2013)

3.7						Amendment No. 1 to Amended and Restated Bylaws (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed on January 30, 2020)

31.1*						Certification of the Principal Executive Officer of the Company, pursuant to Securities Exchange Act Rule 13a-14 and 15d-14 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2*						Certification of the Principal Financial Officer of the Company, pursuant to Securities Exchange Act Rules 13a-14 and 15d-14 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1*						Certification of the Principal Executive Officer and Principal Financial Officer of the Company, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS*						XBRL Instance Document — the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document

101.SCH*						XBRL Taxonomy Extension Schema Document

101.CAL*						XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF*						XBRL Taxonomy Extension Definition Linkbase Document

101.LAB*						XBRL Taxonomy Extension Label Linkbase Document

101.PRE*						XBRL Taxonomy Extension Presentation Linkbase Document

104*						Cover Page Interactive Data File (embedded within the Inline XBRL document and contained in Exhibit 101)
* Filed herewith.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

CATCHMARK TIMBER TRUST, INC.

(Registrant)

Date:

October 29, 2020

By:

/s/ Ursula Godoy-Arbelaez

Ursula Godoy-Arbelaez
Chief Financial Officer, Senior Vice President, and Treasurer
(Principal Financial Officer and Principal Accounting Officer)