Owning Teak is physical ownership of an agricultural hard asset combining land and production of a commodity in high demand historically. A conservative plantation uses a 25-year harvest cycle, and Hardwoods has elected to base its harvest projections on a full 25-year growing period.
The trees are currently 16 years old with an additional 9 years to harvest. Harvest projections are between $24,000+ per 1000 square meter (approximately one-quarter acre) plantation for wholesale of logs at today’s teak price with an upside potential of $39,000+ if sold in boards and assuming a 5.5% price growth for Teak lumber. Teak prices have risen steadily averaging
5.5% over the past few decades and any future rise above this rate in Teak prices will create an even greater harvest yield.