World Tree Eco-Tree Program
Invest in Eco-Timber in North and Latin America
Demand for timber predicted to double by 2050
A truly green, climate-focused investment
Offset your carbon footprint
Climate change, soil degradation and deforestation are issues that will affect us all. Our investors are putting their money into action to create impactful climate change solutions!
World Tree’s programs are based on the fastest growing tree in the world: The Empress Splendor. When you invest in the Empress, you are investing in eco-timber farms across North and Latin America. You are supporting farmers and protecting our forests, and get to share in any profits from the sale of the lumber.
We project long term potential to be high, as the United Nations predicts that demand for timber will double by 2050. Most trees take 20 to 50 years to reach maturity. Empress trees reach hardwood maturity in approximately 10 years and regenerate a new tree after they have been harvested. This means we can keep up with the demand for timber without sacrificing our forests.
Issuer: World Tree USA LLC
Price per Unit: $1.50 USD
Min. Subscription: $3,000 USD
Units issued: Series A 2020 Eco-Tree
Time to harvest: 8-12 years
Why invest in trees?
Timber has been a historically strong investment option
Timber has increased in value at a rate 3% higher than inflation for the last 90 years
Timber investments have outperformed the stock market (S&P 500) for the last 100 years
The timber industry predicts a surge in prices
Demand for wood is rising. The average North American consumes the equivalent of a 100-foot tree every year and the United Nations forecasts that world demand for wood will double by 2050. At the same time, the supply of wood is decreasing. Trees take a long time to grow and we are not keeping up with demand. The environmental impact is degradation of our soils, destruction of our forests and reduced resiliency to climate change.
Timber is a beautiful resource that we all love to use. However, we need to find a way to keep up with demand in a way that is regenerative and actually restores the land rather than depletes it. The fast growth rate of the Empress Tree makes it an ideal timber source and its ability to capture carbon and restore the soil provide long-reaching environmental benefits.
For many of us investing in trees is a new concept. What you may not know is that timber is a valuable, finite resource that has consistently increased in value. Timber has increased in value at a rate 3% higher than inflation for the past 90 years. Since most timber investments are private holdings, they are not as susceptible to the whims of the stock market. In fact, timber has out-performed the stock market for the last 100 years (referenced from Investopedia’s archive on timber investing ).
Return on Investment
Pricing depends on the quality and finish of the wood and currently ranges from $3 per board foot for rough lumber and up to $14 per board foot or more for finished lumber. World Tree uses a proprietary 3 grade system, with different prices depending on whether the wood is sold rough or finished.
Returns will depend on the volume and quality of lumber produced. In practice, we can expect to see variation in our farms, producing a mix of low, medium and high grade lumber.
Profits, if any, are shared with farmers, investors and World Tree. Farmers receive 50% of gross profits, our investors 25% and World Tree retains 25%. This graph shows the potential return to an investor on a $3,000 investment based on tree survival assuming that half the lumber harvested is medium grade, and the rest is a mix of low and high grade.
In 10 years time, even if only 10% of the trees survived, investor returns would be approximately $4,744 at current market prices. We are targeting at least 75% survival, which could produce investor returns of $35,000 or more.
These numbers include all the costs of managing the plantations and harvesting the lumber. However they are only projections and cannot be guaranteed.
How to invest
TAKE THE FUTURE INTO YOUR OWN HANDS
We would love to hear from you and we offer private webinars to potential investors to get your questions answered. Please fill in the form below and we will send you an information package and next steps.