{"id":3535,"date":"2024-10-14T10:04:00","date_gmt":"2024-10-14T07:04:00","guid":{"rendered":"https:\/\/sijoitusmetsat.fi\/uncategorized\/total-return-on-forest-investment-in-2023-was-3-9\/"},"modified":"2026-09-23T16:16:09","modified_gmt":"2026-09-23T13:16:09","slug":"total-return-on-forest-investment-in-2023-was-3-9","status":"publish","type":"post","link":"https:\/\/sijoitusmetsat.fi\/en\/market-reports\/total-return-on-forest-investment-in-2023-was-3-9\/","title":{"rendered":"Total return on forest investment in 2023 was 3.9%"},"content":{"rendered":"\n

Chart: Total return on forest investment by component (2017\u20132023)<\/em><\/p>\n\n

At 3.9%, the total return on private forests in 2023 fell well short of the average of previous years. The sharp fall was driven by slower growth in forest property prices. <\/strong><\/p>\n\n

The Suomen Sijoitusmets\u00e4t total return on forest investment combines operating profit and the net value increment of the growing stock, both taken from the investment return calculations of Natural Resources Institute Finland (Luke), with the change in the market price level of forest properties. In 2022, the total return was 12.3%, and the average for the previous seven years was 10.3%. Last year, the rise in the market price level added only 0.7 percentage points to the total return, whereas it had previously accounted for more than half of it. The more stable return components, operating profit and the net value increment of the growing stock, contributed 2.4 and 0.8 percentage points respectively. <\/p>\n\n

\u201cAfter years of brisk growth, the market price level levelled off in 2023, although it did not turn negative on an annual basis,\u201d says Eero Viitanen, Head of Forest Information at Suomen Sijoitusmets\u00e4t. \u201cOperating profit and net value increment are linked: when more timber is harvested in a year, operating profit rises and net value increment falls. Operating profit is also affected by changes in stumpage prices.\u201d <\/p>\n