We think the gain in Weyerhaeuser (WY, Financial)’s stock was driven by stronger housing numbers. Before the global financial crisis, the United States had nearly two million housing starts a year. That number fell below 700,000 in 2009, but it has now recovered to over 1.2 million.4 Weyerhaeuser has often said that when housing starts reach 1.2 or 1.3 million, timber prices may begin to advance.
Timber pricing has remained weak in the Southeastern United States, and this could represent a source of latent earning power for Weyerhaeuser. In the meantime, a dividend yield of more than 4% has kept us comfortable holding this stock.
Hang Lung Properties is a Hong Kong-based company that owns office buildings and grade-A shopping malls throughout China. During the first quarter, the stock advanced as Hang Lung’s business showed signs of recovery.
From the First Eagle Global Value Fund first quarter 2017 commentary.
