World Tree Eco-Tree Program
Invest in Eco-Timber in North and Central 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 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 plantations of eco-timber across North and Central 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 within 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: $1.25 (Limited availability)
Min. Subscription: $25,000 USD
Units issued: Series A 2019 Eco-Tree
Time to harvest: 8-12 years
IRA eligible: Yes
Investment is available to accredited investors, under Regulation D Rule 506(c).
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.
Sharing the Profits
Profits, if any, are shared with farmers, investors and World Tree. Farmers receive 50% of gross profits and World Tree USA, LLC the other 50%. World Tree then shares these profits 50/50 with its investors. The following example illustrates the potential return on a $25,000 investment:
Yield and Potential Returns on $25,000 investment*
Trees planted: 1,100 (10 acres)
Yield per acre: 33,000 board feet
Average yield: 247,500 bf
Revenue and expenses summary*
25% low grade @ $3/bf: $185,625
50% medium @ $7/bf: $866,250
25% high@ $14/bf: $866,250
Total Revenue: $1,918,125
Cost of harvest: $495,000
Profit on harvest: $1,423,125
Profit sharing on $1,423,125*
Farmer (50%): $711,562
Investor (25%): $355,781
World Tree (25%): $355,781
Numbers are shown for illustration purposes and are not a prediction of actual returns.
Pricing, yield and survival are estimates based on World Tree’s current experience in the market.
See the World Tree USA, LLC PPM for more information on yield, survival and pricing, as well as the sections on Risk Factors and “Forward Looking Statements”.
How to invest
TAKE THE FUTURE INTO YOUR OWN HANDS
Thank you for considering this investment for your portfolio. The next step is to read our Private Placement Memorandum. Fill in the form below to receive your copy.
We would love to hear from you and we offer private webinars to potential investors to get your questions answered. After filling in the contact form, we will send you an email with a link to schedule a call if you wish.