Wells Timberland - Why Timberland

As of the Wells Timberland follow-on offering is not yet effective in Alabama, Maryland, Michigan, Ohio, or Tennessee.

Why the Timberland Asset Class?

Historically, the timberland asset class has provided investors with the opportunity for several key benefits. These include the potential for:

Additional portfolio diversification
A partial inflation hedge, and
Environmental responsibility.

Portfolio diversification

Timberland is a potential tool for additional portfolio diversification. As a real asset, timberland may help to increase long-term returns and reduce overall volatility when added to certain diversified investment portfolios.
Returns for the timberland asset class are driven primarily by tree growth, a natural, biological process that is not affected by economic cycles or market changes.

A partial inflation hedge

As an asset class, timberland may help to preserve capital in the face of rising consumer prices, because timberland returns historically have tended to outpace inflation.¹
For example, pine sawtimber prices have exceeded inflation since 1915.²*

Timber Prices

*Timber prices do not reflect actual timberland investment returns. These prices reflect historical data and are not indicative of future pricing. Prices differ from region to region.
1 “Inflation and Timberland Returns,” Forest Research Notes, Forest Research Group, Q3 2007.
2 Southern Pine Sawtimber Prices from U.S. Forest Service for 1915-1975 and Timber Mart-South for 1976-2009; Inflation/PPI data from Bureau of Labor Statistics.

Environmental responsibility

As the world’s only naturally renewable building material, timber represents an important, low-energy source of fuel and raw materials.
Trees also play an important role in removing carbon dioxide from the earth’s atmosphere by consuming carbon dioxide and releasing oxygen.

DISCLOSURES

Click here to view SEC filings for up-to-the-minute updates to the Wells Timberland portfolio. Click here to view a PDF of the prospectus. Click here to view a risk factor disclosure.

Wells Timberland REIT, Inc. has a limited operating history and to date has made only one acquisition, Mahrt Timberland, a collection of timberlands in Georgia and Alabama. Wells Timberland REIT, Inc. may not achieve the level of diversification described in the prospectus.

As of March 24, 2010, Wells Timberland's total borrowings were approximately 114% of net assets and 50% of the cost of the timber assets before adjustments for depletion and amortization. Wells Timberland is prohibited from making discretionary distributions or redeeming shares under its share redemption program (except for qualified disabilities and death) until certain loans and financial targets are satisfied.

This material contains forward-looking statements, which generally can be identified by our use of words such as "may," "will," "expect," "intend," "anticipate," "estimate," "believe," "continue," or other similar words. Factors that could cause actual results to vary materially from those expressed in forward-looking statements include fluctuations in interest rates, demand risks, and lack of availability of financing.

Wells Timberland REIT, Inc. is sponsored by Wells Real Estate Funds, Inc. Wells Real Estate Funds, Inc. is affiliated with Wells Investment Securities, Inc. – Distributor – Member FINRA/SIPC.