000134114112/312020Q3falseP2Y00013411412020-01-012020-09-30xbrli:shares00013411412020-10-28iso4217:USD00013411412020-09-3000013411412019-12-31iso4217:USDxbrli:shares0001341141us-gaap:TimberMember2020-07-012020-09-300001341141us-gaap:TimberMember2019-07-012019-09-300001341141us-gaap:TimberMember2020-01-012020-09-300001341141us-gaap:TimberMember2019-01-012019-09-300001341141us-gaap:RealEstateMember2020-07-012020-09-300001341141us-gaap:RealEstateMember2019-07-012019-09-300001341141us-gaap:RealEstateMember2020-01-012020-09-300001341141us-gaap:RealEstateMember2019-01-012019-09-300001341141us-gaap:ManagementServiceMember2020-07-012020-09-300001341141us-gaap:ManagementServiceMember2019-07-012019-09-300001341141us-gaap:ManagementServiceMember2020-01-012020-09-300001341141us-gaap:ManagementServiceMember2019-01-012019-09-300001341141us-gaap:RealEstateOtherMember2020-07-012020-09-300001341141us-gaap:RealEstateOtherMember2019-07-012019-09-300001341141us-gaap:RealEstateOtherMember2020-01-012020-09-300001341141us-gaap:RealEstateOtherMember2019-01-012019-09-3000013411412020-07-012020-09-3000013411412019-07-012019-09-3000013411412019-01-012019-09-300001341141ctt:ContractLoggingAndHaulingCostsMember2020-07-012020-09-300001341141ctt:ContractLoggingAndHaulingCostsMember2019-07-012019-09-300001341141ctt:ContractLoggingAndHaulingCostsMember2020-01-012020-09-300001341141ctt:ContractLoggingAndHaulingCostsMember2019-01-012019-09-300001341141us-gaap:CommonStockMember2019-12-310001341141us-gaap:AdditionalPaidInCapitalMember2019-12-310001341141us-gaap:RetainedEarningsMember2019-12-310001341141us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310001341141us-gaap:ParentMember2019-12-310001341141us-gaap:NoncontrollingInterestMember2019-12-310001341141us-gaap:CommonStockMember2020-01-012020-03-310001341141us-gaap:AdditionalPaidInCapitalMember2020-01-012020-03-310001341141us-gaap:ParentMember2020-01-012020-03-310001341141us-gaap:NoncontrollingInterestMember2020-01-012020-03-3100013411412020-01-012020-03-310001341141us-gaap:RetainedEarningsMember2020-01-012020-03-310001341141us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-03-310001341141us-gaap:CommonStockMember2020-03-310001341141us-gaap:AdditionalPaidInCapitalMember2020-03-310001341141us-gaap:RetainedEarningsMember2020-03-310001341141us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-310001341141us-gaap:ParentMember2020-03-310001341141us-gaap:NoncontrollingInterestMember2020-03-3100013411412020-03-310001341141us-gaap:CommonStockMember2020-04-012020-06-300001341141us-gaap:AdditionalPaidInCapitalMember2020-04-012020-06-300001341141us-gaap:ParentMember2020-04-012020-06-300001341141us-gaap:NoncontrollingInterestMember2020-04-012020-06-3000013411412020-04-012020-06-300001341141us-gaap:RetainedEarningsMember2020-04-012020-06-300001341141us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-04-012020-06-300001341141us-gaap:CommonStockMember2020-06-300001341141us-gaap:AdditionalPaidInCapitalMember2020-06-300001341141us-gaap:RetainedEarningsMember2020-06-300001341141us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-300001341141us-gaap:ParentMember2020-06-300001341141us-gaap:NoncontrollingInterestMember2020-06-3000013411412020-06-300001341141us-gaap:CommonStockMember2020-07-012020-09-300001341141us-gaap:AdditionalPaidInCapitalMember2020-07-012020-09-300001341141us-gaap:ParentMember2020-07-012020-09-300001341141us-gaap:NoncontrollingInterestMember2020-07-012020-09-300001341141us-gaap:RetainedEarningsMember2020-07-012020-09-300001341141us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-07-012020-09-300001341141us-gaap:CommonStockMember2020-09-300001341141us-gaap:AdditionalPaidInCapitalMember2020-09-300001341141us-gaap:RetainedEarningsMember2020-09-300001341141us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-300001341141us-gaap:ParentMember2020-09-300001341141us-gaap:NoncontrollingInterestMember2020-09-300001341141us-gaap:CommonStockMember2018-12-310001341141us-gaap:AdditionalPaidInCapitalMember2018-12-310001341141us-gaap:RetainedEarningsMember2018-12-310001341141us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-12-310001341141us-gaap:ParentMember2018-12-310001341141us-gaap:NoncontrollingInterestMember2018-12-3100013411412018-12-310001341141us-gaap:CommonStockMember2019-01-012019-03-310001341141us-gaap:AdditionalPaidInCapitalMember2019-01-012019-03-310001341141us-gaap:ParentMember2019-01-012019-03-3100013411412019-01-012019-03-310001341141us-gaap:RetainedEarningsMember2019-01-012019-03-310001341141us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-01-012019-03-310001341141us-gaap:CommonStockMember2019-03-310001341141us-gaap:AdditionalPaidInCapitalMember2019-03-310001341141us-gaap:RetainedEarningsMember2019-03-310001341141us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-03-310001341141us-gaap:ParentMember2019-03-310001341141us-gaap:NoncontrollingInterestMember2019-03-3100013411412019-03-310001341141us-gaap:CommonStockMember2019-04-012019-06-300001341141us-gaap:AdditionalPaidInCapitalMember2019-04-012019-06-300001341141us-gaap:ParentMember2019-04-012019-06-3000013411412019-04-012019-06-300001341141us-gaap:RetainedEarningsMember2019-04-012019-06-300001341141us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-04-012019-06-300001341141us-gaap:CommonStockMember2019-06-300001341141us-gaap:AdditionalPaidInCapitalMember2019-06-300001341141us-gaap:RetainedEarningsMember2019-06-300001341141us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-06-300001341141us-gaap:ParentMember2019-06-300001341141us-gaap:NoncontrollingInterestMember2019-06-3000013411412019-06-300001341141us-gaap:CommonStockMember2019-07-012019-09-300001341141us-gaap:AdditionalPaidInCapitalMember2019-07-012019-09-300001341141us-gaap:ParentMember2019-07-012019-09-300001341141us-gaap:RetainedEarningsMember2019-07-012019-09-300001341141us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-07-012019-09-300001341141us-gaap:CommonStockMember2019-09-300001341141us-gaap:AdditionalPaidInCapitalMember2019-09-300001341141us-gaap:RetainedEarningsMember2019-09-300001341141us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-09-300001341141us-gaap:ParentMember2019-09-300001341141us-gaap:NoncontrollingInterestMember2019-09-3000013411412019-09-30xbrli:pure0001341141ctt:CatchMarkTimberOPMember2020-01-012020-09-300001341141ctt:CatchMarkLPHolderLLCMemberctt:CatchMarkTimberOPMember2020-01-012020-09-300001341141ctt:CurrentAndFormerOfficersAndDirectorsMemberctt:CatchMarkTimberOPMember2020-01-012020-09-30ctt:segment0001341141us-gaap:TimberPropertiesMember2020-09-300001341141us-gaap:ProductiveLandMember2020-09-300001341141ctt:MainlineLoggingRoadsMember2020-09-300001341141us-gaap:TimberPropertiesMember2019-12-310001341141us-gaap:ProductiveLandMember2019-12-310001341141ctt:MainlineLoggingRoadsMember2019-12-31utr:acre0001341141us-gaap:TimberPropertiesMember2020-07-012020-09-300001341141us-gaap:TimberPropertiesMember2019-07-012019-09-300001341141us-gaap:TimberPropertiesMemberus-gaap:RealEstateMember2020-07-012020-09-300001341141us-gaap:TimberPropertiesMemberus-gaap:RealEstateMember2019-07-012019-09-300001341141us-gaap:TimberPropertiesMember2020-01-012020-09-300001341141us-gaap:TimberPropertiesMember2019-01-012019-09-300001341141us-gaap:TimberPropertiesMemberus-gaap:RealEstateMember2020-01-012020-09-300001341141us-gaap:TimberPropertiesMemberus-gaap:RealEstateMember2019-01-012019-09-30ctt:disposition0001341141ctt:TimberPropertiesLargeDispositionMember2020-07-012020-09-300001341141ctt:TimberPropertiesLargeDispositionMember2020-01-312020-01-310001341141us-gaap:RealEstateMemberctt:TimberPropertiesLargeDispositionMember2020-01-312020-01-310001341141ctt:MultiDrawTermFacilityMemberctt:TimberPropertiesLargeDispositionMember2020-01-312020-01-310001341141ctt:TimberPropertiesLargeDispositionMember2019-07-012019-09-300001341141us-gaap:RealEstateMemberctt:TimberPropertiesLargeDispositionMember2019-07-012019-09-300001341141ctt:TimberPropertiesLargeDispositionMember2019-01-012019-09-300001341141us-gaap:RealEstateMemberctt:TimberPropertiesLargeDispositionMember2019-01-012019-09-30ctt:transaction0001341141ctt:MultiDrawTermFacilityMember2019-01-012019-09-300001341141us-gaap:TimberPropertiesMemberstpr:ALctt:GeographicDistributionDomesticSouthMember2020-01-012020-09-300001341141us-gaap:TimberPropertiesMemberstpr:ALctt:GeographicDistributionDomesticSouthMember2019-01-012019-09-300001341141us-gaap:TimberPropertiesMemberstpr:GActt:GeographicDistributionDomesticSouthMember2020-01-012020-09-300001341141us-gaap:TimberPropertiesMemberstpr:GActt:GeographicDistributionDomesticSouthMember2019-01-012019-09-300001341141us-gaap:TimberPropertiesMemberstpr:NCctt:GeographicDistributionDomesticSouthMember2020-01-012020-09-300001341141us-gaap:TimberPropertiesMemberstpr:NCctt:GeographicDistributionDomesticSouthMember2019-01-012019-09-300001341141stpr:SCus-gaap:TimberPropertiesMemberctt:GeographicDistributionDomesticSouthMember2020-01-012020-09-300001341141stpr:SCus-gaap:TimberPropertiesMemberctt:GeographicDistributionDomesticSouthMember2019-01-012019-09-300001341141us-gaap:TimberPropertiesMemberctt:GeographicDistributionDomesticSouthMemberstpr:TX2020-01-012020-09-300001341141us-gaap:TimberPropertiesMemberctt:GeographicDistributionDomesticSouthMemberstpr:TX2019-01-012019-09-300001341141us-gaap:TimberPropertiesMemberctt:GeographicDistributionDomesticSouthMember2020-01-012020-09-300001341141us-gaap:TimberPropertiesMemberctt:GeographicDistributionDomesticSouthMember2019-01-012019-09-300001341141us-gaap:TimberPropertiesMemberstpr:ALctt:GeographicDistributionDomesticSouthMember2020-09-300001341141us-gaap:TimberPropertiesMemberctt:GeographicDistributionDomesticSouthMemberstpr:FL2020-09-300001341141us-gaap:TimberPropertiesMemberstpr:GActt:GeographicDistributionDomesticSouthMember2020-09-300001341141us-gaap:TimberPropertiesMemberstpr:NCctt:GeographicDistributionDomesticSouthMember2020-09-300001341141stpr:SCus-gaap:TimberPropertiesMemberctt:GeographicDistributionDomesticSouthMember2020-09-300001341141us-gaap:TimberPropertiesMemberctt:GeographicDistributionDomesticSouthMember2020-09-300001341141us-gaap:TimberPropertiesMemberctt:GeographicDistributionDomesticPacificNorthwestMemberstpr:OR2020-09-30ctt:joint_venture0001341141ctt:DawsonvilleBluffsMember2020-09-300001341141ctt:TripleTJointVentureMember2020-09-30utr:T0001341141ctt:DawsonvilleBluffsMember2020-01-012020-09-300001341141ctt:TripleTJointVentureMember2020-01-012020-09-300001341141ctt:TripleTTimberlandsMember2018-12-310001341141ctt:TripleTTimberlandsMember2018-01-012018-12-310001341141ctt:TripleTJointVentureMember2018-07-310001341141ctt:TripleTJointVentureMember2020-06-240001341141ctt:TripleTJointVentureMemberctt:PreferredInvestorsMember2020-06-240001341141ctt:TripleTJointVentureMemberus-gaap:RevolvingCreditFacilityMember2020-06-242020-06-240001341141ctt:TripleTJointVentureMemberctt:GeorgiaPacificWFSLLCMemberctt:WoodSupplyAgreementMember2020-06-242020-06-24ctt:boardOfDirectorMember0001341141ctt:TripleTJointVentureMember2020-09-300001341141ctt:TripleTJointVentureMember2019-12-310001341141ctt:TripleTJointVentureMember2019-12-310001341141ctt:TripleTJointVentureMember2020-07-012020-09-300001341141ctt:TripleTJointVentureMember2019-07-012019-09-300001341141ctt:TripleTJointVentureMember2020-01-012020-09-300001341141ctt:TripleTJointVentureMember2019-01-012019-09-300001341141ctt:TripleTJointVentureMember2020-07-012020-09-300001341141ctt:TripleTJointVentureMember2019-07-012019-09-300001341141ctt:TripleTJointVentureMember2019-01-012019-09-300001341141ctt:TripleTJointVentureMember2018-12-310001341141ctt:TripleTJointVentureMember2019-09-300001341141ctt:DawsonvilleBluffsMember2017-12-310001341141ctt:DawsonvilleBluffsJointVentureMember2020-09-300001341141ctt:DawsonvilleBluffsJointVentureMember2019-12-310001341141ctt:DawsonvilleBluffsMember2019-12-310001341141ctt:DawsonvilleBluffsJointVentureMember2020-07-012020-09-300001341141ctt:DawsonvilleBluffsJointVentureMember2019-07-012019-09-300001341141ctt:DawsonvilleBluffsJointVentureMember2020-01-012020-09-300001341141ctt:DawsonvilleBluffsJointVentureMember2019-01-012019-09-300001341141ctt:DawsonvilleBluffsMember2020-07-012020-09-300001341141ctt:DawsonvilleBluffsMember2019-07-012019-09-300001341141ctt:DawsonvilleBluffsMember2019-01-012019-09-300001341141ctt:DawsonvilleBluffsJointVentureMember2018-12-310001341141ctt:DawsonvilleBluffsJointVentureMember2019-09-300001341141ctt:TripleTJointVentureMember2020-06-230001341141ctt:TripleTJointVentureMemberctt:PreferredInvestorsMember2020-06-230001341141ctt:TripleTJointVentureMembersrt:ScenarioForecastMember2021-10-010001341141ctt:TripleTJointVentureMembersrt:ScenarioForecastMember2022-10-010001341141ctt:TripleTJointVentureMembersrt:ScenarioForecastMember2022-07-010001341141ctt:TripleTJointVentureMemberus-gaap:ManagementServiceMember2020-07-012020-09-300001341141ctt:TripleTJointVentureMemberus-gaap:ManagementServiceMember2019-07-012019-09-300001341141ctt:TripleTJointVentureMemberus-gaap:ManagementServiceMember2020-01-012020-09-300001341141ctt:TripleTJointVentureMemberus-gaap:ManagementServiceMember2019-01-012019-09-300001341141us-gaap:ManagementServiceMemberctt:DawsonvilleBluffsMember2020-07-012020-09-300001341141us-gaap:ManagementServiceMemberctt:DawsonvilleBluffsMember2019-07-012019-09-300001341141us-gaap:ManagementServiceMemberctt:DawsonvilleBluffsMember2020-01-012020-09-300001341141us-gaap:ManagementServiceMemberctt:DawsonvilleBluffsMember2019-01-012019-09-300001341141us-gaap:ManagementServiceMemberctt:DawsonvilleBluffsMember2020-01-012020-03-310001341141us-gaap:RevolvingCreditFacilityMemberctt:AmendedCreditAgreementMember2020-05-010001341141us-gaap:RevolvingCreditFacilityMemberctt:AmendedCreditAgreementMember2020-05-012020-05-010001341141ctt:MultiDrawTermFacilityMemberctt:AmendedCreditAgreementMember2020-05-010001341141ctt:MultiDrawTermFacilityMemberctt:AmendedCreditAgreementMember2020-05-012020-05-010001341141ctt:TermLoanFacilityA1Memberctt:AmendedCreditAgreementMember2020-05-010001341141ctt:TermLoanFacilityA1Memberctt:AmendedCreditAgreementMember2020-05-012020-05-010001341141ctt:TermLoanFacilityA2Memberctt:AmendedCreditAgreementMember2020-05-010001341141ctt:TermLoanFacilityA2Memberctt:AmendedCreditAgreementMember2020-05-012020-05-010001341141ctt:TermLoanFacilityA3Memberctt:AmendedCreditAgreementMember2020-05-010001341141ctt:TermLoanFacilityA3Memberctt:AmendedCreditAgreementMember2020-05-012020-05-010001341141ctt:AmendedCreditAgreementMemberctt:TermLoanFacilityA4Member2020-05-010001341141ctt:AmendedCreditAgreementMemberctt:TermLoanFacilityA4Member2020-05-012020-05-010001341141srt:MaximumMemberctt:AmendedCreditAgreementMember2020-05-012020-05-010001341141srt:MaximumMemberctt:AmendedCreditAgreementMember2020-04-302020-04-300001341141srt:MinimumMemberctt:AmendedCreditAgreementMember2020-04-300001341141srt:MinimumMemberctt:AmendedCreditAgreementMember2020-05-010001341141ctt:MultiDrawTermFacilityMemberctt:AmendedCreditAgreementMember2020-04-300001341141ctt:TripleTJointVentureMemberctt:MultiDrawTermFacilityMemberctt:AmendedCreditAgreementMember2020-09-300001341141ctt:MultiDrawTermFacilityMemberctt:AmendedCreditAgreementMember2020-01-012020-03-310001341141ctt:TermLoanFacilityA1Memberctt:AmendedCreditAgreementMember2020-01-012020-09-300001341141ctt:TermLoanFacilityA1Memberus-gaap:LondonInterbankOfferedRateLIBORMemberctt:AmendedCreditAgreementMember2020-01-012020-09-300001341141ctt:TermLoanFacilityA1Memberctt:AmendedCreditAgreementMember2020-09-300001341141ctt:TermLoanFacilityA1Memberctt:AmendedCreditAgreementMember2019-12-310001341141ctt:TermLoanFacilityA2Memberctt:AmendedCreditAgreementMember2020-01-012020-09-300001341141us-gaap:LondonInterbankOfferedRateLIBORMemberctt:TermLoanFacilityA2Memberctt:AmendedCreditAgreementMember2020-01-012020-09-300001341141ctt:TermLoanFacilityA2Memberctt:AmendedCreditAgreementMember2020-09-300001341141ctt:TermLoanFacilityA2Memberctt:AmendedCreditAgreementMember2019-12-310001341141ctt:TermLoanFacilityA3Memberctt:AmendedCreditAgreementMember2020-01-012020-09-300001341141us-gaap:LondonInterbankOfferedRateLIBORMemberctt:TermLoanFacilityA3Memberctt:AmendedCreditAgreementMember2020-01-012020-09-300001341141ctt:TermLoanFacilityA3Memberctt:AmendedCreditAgreementMember2020-09-300001341141ctt:TermLoanFacilityA3Memberctt:AmendedCreditAgreementMember2019-12-310001341141ctt:AmendedCreditAgreementMemberctt:TermLoanFacilityA4Member2020-01-012020-09-300001341141us-gaap:LondonInterbankOfferedRateLIBORMemberctt:AmendedCreditAgreementMemberctt:TermLoanFacilityA4Member2020-01-012020-09-300001341141ctt:AmendedCreditAgreementMemberctt:TermLoanFacilityA4Member2020-09-300001341141ctt:AmendedCreditAgreementMemberctt:TermLoanFacilityA4Member2019-12-310001341141ctt:MultiDrawTermFacilityMemberctt:AmendedCreditAgreementMember2020-01-012020-09-300001341141us-gaap:LondonInterbankOfferedRateLIBORMemberctt:MultiDrawTermFacilityMemberctt:AmendedCreditAgreementMember2020-01-012020-09-300001341141ctt:MultiDrawTermFacilityMemberctt:AmendedCreditAgreementMember2020-09-300001341141ctt:MultiDrawTermFacilityMemberctt:AmendedCreditAgreementMember2019-12-310001341141ctt:AmendedCreditAgreementMember2020-09-300001341141us-gaap:RevolvingCreditFacilityMemberctt:AmendedCreditAgreementMember2020-09-300001341141us-gaap:RevolvingCreditFacilityMemberctt:AmendedCreditAgreementMember2020-01-012020-09-300001341141us-gaap:RevolvingCreditFacilityMemberus-gaap:BaseRateMemberctt:AmendedCreditAgreementMember2020-01-012020-09-300001341141us-gaap:RevolvingCreditFacilityMembersrt:MinimumMemberus-gaap:BaseRateMemberctt:AmendedCreditAgreementMember2020-01-012020-09-300001341141srt:MaximumMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:BaseRateMemberctt:AmendedCreditAgreementMember2020-01-012020-09-300001341141us-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:RevolvingCreditFacilityMemberctt:AmendedCreditAgreementMember2020-01-012020-09-300001341141us-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:RevolvingCreditFacilityMembersrt:MinimumMemberctt:AmendedCreditAgreementMember2020-01-012020-09-300001341141us-gaap:LondonInterbankOfferedRateLIBORMembersrt:MaximumMemberus-gaap:RevolvingCreditFacilityMemberctt:AmendedCreditAgreementMember2020-01-012020-09-300001341141ctt:MultiDrawTermFacilityMemberus-gaap:BaseRateMemberctt:AmendedCreditAgreementMember2020-01-012020-09-300001341141ctt:MultiDrawTermFacilityMembersrt:MinimumMemberus-gaap:BaseRateMemberctt:AmendedCreditAgreementMember2020-01-012020-09-300001341141ctt:MultiDrawTermFacilityMembersrt:MaximumMemberus-gaap:BaseRateMemberctt:AmendedCreditAgreementMember2020-01-012020-09-300001341141us-gaap:LondonInterbankOfferedRateLIBORMemberctt:MultiDrawTermFacilityMembersrt:MinimumMemberctt:AmendedCreditAgreementMember2020-01-012020-09-300001341141us-gaap:LondonInterbankOfferedRateLIBORMemberctt:MultiDrawTermFacilityMembersrt:MaximumMemberctt:AmendedCreditAgreementMember2020-01-012020-09-300001341141ctt:MultiDrawTermFacilityMembersrt:MinimumMemberctt:AmendedCreditAgreementMember2020-01-012020-09-300001341141ctt:MultiDrawTermFacilityMembersrt:MaximumMemberctt:AmendedCreditAgreementMember2020-01-012020-09-3000013411412020-03-012020-03-3100013411412019-03-012019-03-310001341141us-gaap:AccountsReceivableMember2020-09-300001341141us-gaap:AccountsReceivableMember2019-12-310001341141us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2020-09-300001341141us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2019-12-310001341141srt:MaximumMemberctt:AmendedCreditAgreementMember2020-01-012020-09-300001341141ctt:AmendedCreditAgreementMember2020-01-012020-09-300001341141us-gaap:SecuredDebtMember2020-09-300001341141us-gaap:SecuredDebtMember2019-12-31ctt:derivative0001341141us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-09-300001341141us-gaap:DesignatedAsHedgingInstrumentMemberctt:InterestRateSwap12019Memberus-gaap:LondonInterbankOfferedRateLIBORMember2020-01-012020-09-300001341141us-gaap:DesignatedAsHedgingInstrumentMemberctt:InterestRateSwap12019Memberus-gaap:LondonInterbankOfferedRateLIBORMember2020-09-300001341141us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:LondonInterbankOfferedRateLIBORMemberctt:InterestRateSwap22019Member2020-01-012020-09-300001341141us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:LondonInterbankOfferedRateLIBORMemberctt:InterestRateSwap22019Member2020-09-300001341141us-gaap:DesignatedAsHedgingInstrumentMember2020-09-300001341141us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-09-300001341141us-gaap:DesignatedAsHedgingInstrumentMember2019-09-300001341141us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherLiabilitiesMember2020-09-300001341141us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherLiabilitiesMember2019-12-310001341141us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-07-012020-09-300001341141us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-07-012019-09-300001341141us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-01-012020-09-300001341141us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-01-012019-09-3000013411412008-01-012008-03-31ctt:state00013411412007-12-310001341141ctt:WestRockCorporationMember2008-01-012008-03-310001341141ctt:WestRockCorporationMember2020-01-012020-09-300001341141us-gaap:TimberMemberctt:WestRockCorporationMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2020-01-012020-09-300001341141ctt:ForestResourceConsultantsInc.Member2020-01-012020-09-300001341141ctt:ForestResourceConsultantsInc.Member2020-01-012020-09-300001341141ctt:AmericanForestryManagementInc.Member2020-01-012020-09-300001341141ctt:AmericanForestryManagementInc.Member2020-01-012020-09-3000013411412019-01-010001341141ctt:ServiceBasedRestrictedStockMembersrt:ChiefExecutiveOfficerMember2020-01-212020-01-21ctt:installmentPayment0001341141ctt:ServiceBasedRestrictedStockMembersrt:ChiefExecutiveOfficerMember2020-07-012020-09-300001341141ctt:ServiceBasedRestrictedStockMembersrt:ChiefExecutiveOfficerMember2020-01-012020-09-300001341141ctt:LTIPUnitMemberctt:TwoThousandSeventeenCompensationProgramMembersrt:ChiefExecutiveOfficerMember2020-01-212020-01-210001341141ctt:LTIPUnitMemberctt:TwoThousandSeventeenCompensationProgramMembersrt:ChiefExecutiveOfficerMember2020-01-292020-01-290001341141ctt:TwoThousandEighteenAndTwoThousandNineteenCompensationProgramMemberctt:LTIPUnitMembersrt:ChiefExecutiveOfficerMember2020-01-212020-01-210001341141ctt:TwoThousandEighteenAndTwoThousandNineteenCompensationProgramMemberctt:LTIPUnitMembersrt:ChiefExecutiveOfficerMember2020-01-292020-01-290001341141srt:ChiefExecutiveOfficerMember2020-01-012020-03-310001341141srt:ExecutiveOfficerMemberctt:ServiceBasedRestrictedStockMember2020-07-132020-07-130001341141us-gaap:GeneralAndAdministrativeExpenseMember2020-07-012020-09-300001341141us-gaap:GeneralAndAdministrativeExpenseMember2019-07-012019-09-300001341141us-gaap:GeneralAndAdministrativeExpenseMember2020-01-012020-09-300001341141us-gaap:GeneralAndAdministrativeExpenseMember2019-01-012019-09-300001341141ctt:ForestryManagementExpenseMember2020-07-012020-09-300001341141ctt:ForestryManagementExpenseMember2019-07-012019-09-300001341141ctt:ForestryManagementExpenseMember2020-01-012020-09-300001341141ctt:ForestryManagementExpenseMember2019-01-012019-09-300001341141srt:ChiefExecutiveOfficerMember2020-01-012020-09-300001341141us-gaap:NoncontrollingInterestMember2020-01-012020-09-300001341141ctt:HarvestSegmentMember2020-07-012020-09-300001341141ctt:HarvestSegmentMember2019-07-012019-09-300001341141ctt:HarvestSegmentMember2020-01-012020-09-300001341141ctt:HarvestSegmentMember2019-01-012019-09-300001341141ctt:RealEstateSegmentMember2020-07-012020-09-300001341141ctt:RealEstateSegmentMember2019-07-012019-09-300001341141ctt:RealEstateSegmentMember2020-01-012020-09-300001341141ctt:RealEstateSegmentMember2019-01-012019-09-300001341141ctt:InvestmentManagementSegmentMember2020-07-012020-09-300001341141ctt:InvestmentManagementSegmentMember2019-07-012019-09-300001341141ctt:InvestmentManagementSegmentMember2020-01-012020-09-300001341141ctt:InvestmentManagementSegmentMember2019-01-012019-09-300001341141ctt:HarvestSegmentMemberus-gaap:OperatingSegmentsMember2020-07-012020-09-300001341141ctt:HarvestSegmentMemberus-gaap:OperatingSegmentsMember2019-07-012019-09-300001341141ctt:HarvestSegmentMemberus-gaap:OperatingSegmentsMember2020-01-012020-09-300001341141ctt:HarvestSegmentMemberus-gaap:OperatingSegmentsMember2019-01-012019-09-300001341141ctt:RealEstateSegmentMemberus-gaap:OperatingSegmentsMember2020-07-012020-09-300001341141ctt:RealEstateSegmentMemberus-gaap:OperatingSegmentsMember2019-07-012019-09-300001341141ctt:RealEstateSegmentMemberus-gaap:OperatingSegmentsMember2020-01-012020-09-300001341141ctt:RealEstateSegmentMemberus-gaap:OperatingSegmentsMember2019-01-012019-09-300001341141ctt:InvestmentManagementSegmentMemberus-gaap:OperatingSegmentsMember2020-07-012020-09-300001341141ctt:InvestmentManagementSegmentMemberus-gaap:OperatingSegmentsMember2019-07-012019-09-300001341141ctt:InvestmentManagementSegmentMemberus-gaap:OperatingSegmentsMember2020-01-012020-09-300001341141ctt:InvestmentManagementSegmentMemberus-gaap:OperatingSegmentsMember2019-01-012019-09-300001341141us-gaap:CorporateNonSegmentMember2020-07-012020-09-300001341141us-gaap:CorporateNonSegmentMember2019-07-012019-09-300001341141us-gaap:CorporateNonSegmentMember2020-01-012020-09-300001341141us-gaap:CorporateNonSegmentMember2019-01-012019-09-300001341141ctt:DawsonvilleBluffsJointVentureMember2020-07-012020-09-300001341141ctt:DawsonvilleBluffsJointVentureMember2019-07-012019-09-300001341141ctt:DawsonvilleBluffsJointVentureMember2020-01-012020-09-300001341141ctt:DawsonvilleBluffsJointVentureMember2019-01-012019-09-300001341141srt:ChiefExecutiveOfficerMember2020-07-012020-09-300001341141srt:ChiefExecutiveOfficerMember2019-07-012019-09-300001341141srt:ChiefExecutiveOfficerMember2019-01-012019-09-300001341141us-gaap:SubsequentEventMember2020-10-292020-10-29


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
OR
 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)
Maryland20-3536671
(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 SymbolName of exchange on which registered
Class A Common Stock, $0.01 Par Value Per Share CTTNew 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



Table of Contents
GLOSSARY


The following abbreviations or acronyms may be used in this document and shall have the adjacent meanings set forth below:
AFMAmerican Forestry Management, Inc.
ASCAccounting Standards Codification
ASUAccounting Standards Update
CoBankCoBank, ACB
Common StockClass A common stock, $0.01 par value per share of CatchMark Timber Trust, Inc.
CodeInternal Revenue Code of 1986, as amended
EBITDAEarnings before Interest, Taxes, Depletion, and Amortization
FASBFinancial Accounting Standards Board
FCCRFixed Charge Coverage Ratio
FRCForest Resource Consultants, Inc.
GAAPU.S. Generally Accepted Accounting Principles
GPGeorgia-Pacific WFS LLC
HBUHigher and Better Use
HLBVHypothetical Liquidation at Book Value
IPInternational Paper Company
LIBORLondon Interbank Offered Rate
LTCLong-Term Contract
LTIPLong-Term Incentive Plan
LTVLoan-to-Value
MBFThousand Board Feet
MPERSMissouri Department of Transportation & Patrol Retirement System
NYSENew York Stock Exchange
RabobankCooperatieve Centrale Raiffeisen-Boerenleenbank, B.A.
REITReal Estate Investment Trust
SECSecurities and Exchange Commission
SRPShare Repurchase Program
TRSTaxable REIT Subsidiary
U.S.United States
VIEVariable Interest Entity
WestRockWestRock Company


1

Table of Contents
FORM 10-Q

CATCHMARK TIMBER TRUST, INC.

TABLE OF CONTENTS
 
Page No.
PART I. FINANCIAL INFORMATION
Item 1.
Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019
Item 2.
Item 3.
Item 4.
PART II. OTHER INFORMATION
Item 1.
Item 1A.
Item 2.
Item 6.

2

Table of Contents
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.




3

Table of Contents

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.

4

Table of Contents
CATCHMARK TIMBER TRUST, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands, except for per-share amounts)
September 30, 2020December 31, 2019
Assets:
Cash and cash equivalents$8,034 $11,487 
Accounts receivable8,090 7,998 
Prepaid expenses and other assets6,435 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, net590,297 633,581 
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 liabilities36,086 10,853 
Notes payable and lines of credit, net of deferred financing costs (Note 5)437,236 452,987 
Total liabilities482,299 470,662 
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 capital727,767 729,274 
Accumulated deficit and distributions(563,041)(528,847)
Accumulated other comprehensive loss(31,204)(8,276)
Total stockholders’ equity134,010 192,641 
Noncontrolling Interests1,483 562 
Total equity135,493 193,203 
Total liabilities and equity$617,792 $663,865 
See accompanying notes.
5

Table of Contents
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,
 2020201920202019
Revenues:
Timber sales$18,060 $19,706 $52,399 $52,530 
Timberland sales2,430 2,264 8,882 12,578 
Asset management fees3,118 3,436 8,950 9,119 
Other revenues1,005 974 3,111 3,386 
24,613 26,380 73,342 77,613 
Expenses:
Contract logging and hauling costs7,688 8,269 21,943 22,778 
Depletion7,286 8,235 20,934 19,533 
Cost of timberland sales1,926 2,081 6,811 10,562 
Forestry management expenses1,666 1,656 5,171 4,982 
General and administrative expenses2,768 2,984 13,059 9,550 
Land rent expense114 125 334 400 
Other operating expenses1,458 1,341 4,679 4,614 
22,906 24,691 72,931 72,419 
Other income (expense):
Interest income1 80 51 142 
Interest expense(3,563)(4,472)(11,590)(13,803)
Gain on large dispositions 7,197 1,274 7,961 
(3,562)2,805 (10,265)(5,700)
Income (loss) before unconsolidated joint ventures(1,855)4,494 (9,854)(506)
Loss from unconsolidated joint ventures (Note 4)(2,294)(25,051)(4,727)(81,011)
Net loss$(4,149)$(20,557)$(14,581)$(81,517)
Weighted-average common shares outstanding - basic and diluted48,766 49,008 48,833 49,049 
Net loss per share - basic and diluted$(0.09)$(0.42)$(0.30)$(1.66)

See accompanying notes.
6

Table of Contents

CATCHMARK TIMBER TRUST, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED)
(in thousands)

 Three Months Ended September 30,Nine Months Ended September 30,
 2020201920202019
Net loss$(4,149)$(20,557)$(14,581)$(81,517)
Other comprehensive income (loss):
     Market value adjustment to interest rate swaps3,799 (3,104)(22,928)(14,025)
Comprehensive loss$(350)$(23,661)$(37,509)$(95,542)


See accompanying notes.

7

Table of Contents
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 InterestsTotal Equity
SharesAmount
Balance, December 31, 201949,008 $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, 202048,747 $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, 202048,771 $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, 202048,765 $488 $727,767 $(563,041)$(31,204)$134,010 $1,483 $135,493 


See accompanying notes.

8

Table of Contents
CATCHMARK TIMBER TRUST, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED) (CONTINUED)
(in thousands, except for per-share amounts)
Common StockAdditional Paid-In CapitalAccumulated Deficit and DistributionsAccumulated Other Comprehensive Income (Loss)Total Stockholders’ EquityNoncontrolling InterestsTotal Equity
SharesAmount
Balance, December 31, 201849,127 $492 $730,416 $(409,260)$8 $321,656 $ $321,656 
Common stock issued pursuant to:
LTIP, net of forfeitures and amounts withheld for income taxes92 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, 201949,083 $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 taxes17 — 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, 201948,965 $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 taxes100 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, 201949,007 $490 $729,000 $(510,488)$(14,017)$204,985 $ $204,985 



See accompanying notes.
9

Table of Contents
CATCHMARK TIMBER TRUST, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)
 
Nine Months Ended September 30,
 20202019
Cash Flows from Operating Activities:
Net loss$(14,581)$(81,517)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depletion20,934 19,533 
Basis of timberland sold, lease terminations and other 6,988 10,329 
Stock-based compensation expense3,207 1,952 
Noncash interest expense2,469 816 
Other amortization152 170 
Gain on large dispositions(1,274)(7,961)
Loss from unconsolidated joint ventures4,727 81,011 
Operating distributions from unconsolidated joint ventures273 789 
Interest paid under swaps with other-than-insignificant financing element2,904  
Changes in assets and liabilities:
Accounts receivable(1,092)2,007 
Prepaid expenses and other assets(5)221 
Accounts payable and accrued expenses1,959 138 
Other liabilities986 1,025 
Net cash provided by operating activities27,647 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 ventures127 4,019 
Net proceeds from large dispositions20,863 25,151 
Net cash provided by investing activities11,658 26,139 
Cash Flows from Financing Activities:
Repayment of notes payable(20,850)(20,064)
Proceeds from notes payable5,000  
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 period11,487 5,614 
Cash and cash equivalents, end of period$8,034 $17,074 

See accompanying notes.
10

Table of Contents
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
11

Table of Contents
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
12

Table of Contents
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)GrossAccumulated
Depletion or
Amortization
Net
Timber$280,284 $20,934 $259,350 
Timberlands330,605  330,605 
Mainline roads1,153 811 342 
Timber and timberlands$612,042 $21,745 $590,297 

13

Table of Contents
As of December 31, 2019
(in thousands)GrossAccumulated
Depletion or
Amortization
Net
Timber$312,452 $28,064 $284,388 
Timberlands348,825  348,825 
Mainline roads1,106 738 368 
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.

14

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

Nine Months Ended September 30,
Acres Sold In20202019
South
     Timberland Sales
          Alabama2,200 700 
          Georgia1,500 1,100 
          North Carolina 500 
          South Carolina1,200 3,700 
          Tennessee300  
5,200 6,000 
     Large Dispositions
           Alabama 2,200 
         Georgia14,400 12,200 
14,400 14,400 
Total19,600 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)
FeeLeaseTotal
South
Alabama67,800 1,800 69,600 
Florida2,000  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 
Total390,500 22,000 412,500 
(1)Represents CatchMark wholly-owned acreage only; excludes ownership interest in acreage held by joint ventures.


15

Table of Contents
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 VentureTriple 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)
LocationGeorgiaTexas
(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
16

Table of Contents
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, 2020December 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)2020201920202019
Triple T Joint Venture
Total revenues$