European Paper and Packaging: Forest Valuation Expert Feedback: Values up

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European Paper and Packaging: Forest Valuation Expert Feedback: Values up

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European Paper and Packaging

Forest Valuation Expert Feedback: Values

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Industry Overview

Forest values resilient despite softer wood prices 25 June 2026

We recently hosted an expert call with Niklas Lundberg, Head of Business Development Equity

at Svefa. Svefa is Sweden’s largest forest land advisor and conducts regular market Europe

analysis. Key takeaway: 1) Swedish forest values remain well supported despite >12 Paper and Packaging

months of declines in sawlog/pulpwood prices, with only limited sensitivity to near term Reinhardt van der Walt >>

timber price moves. 2) Niklas gauges current forest/ wood price sensitivity at c. 15% Research Analyst

lumber price translating to c. 3-5% forest value change. 3) Broader weak macro MLI+44 (UK)20 7995 9270

confidence is weighing on market activity (more so than lumber prices). 4) Growing reinhardt.vanderwalt@bofa.com

China pulp overcapacity trends are starting to feature in buyers’/ sellers’ thinking (still no George L. Staphos

Research Analyst

impact on liquidity/ prices though). 5) According to Svefa, 2025 Swedish forest property BofAS

values increased by c. +2.3% on average and early 2026 data suggests another year of george.l.staphos@bofa.com

low single digit increases. 6) STERV Forest Co likely has limited self-help levers to pull Caio Ribeiro >>

on for value creation (forests already very well managed). Merrill Lynch (Brazil)

caio.ribeiro@bofa.com

Structural demand supporting forest land values Jason Fairclough >>

The market has absorbed several headwinds, including weaker Swedish construction MLI (UK)

activity, falling price lists and c. 11M m³ storm-driven windfall in southern Norrland, jason.fairclough@bofa.com