And on top of that custom, weaker multifamily construction also plays a role in this. The Southern Yellow Pine is increasingly being utilized in prefabricating trusses and wall panels as well as engineered wood products, which make up a larger share of the lumber consumption for multifamily or commercial construction compared to single-family construction. But we believe that it’s very much can be used in that process. And so the market is just going to fill that gap as we see things work its way out. And then Canadian tariffs are set to increase from 8% to 14% as we go into the summer. So builders who preferred those Western grades have been more active buying ahead basically, and that’s particularly in the single-family home construction.
But as we said before, eventually, we believe that builders and other consumers will continue to move towards the value that’s presented by Southern Yellow Pine and then these markets will normalize as we’ve seen in the past.
Gregory Andreopoulos: Great. That’s helpful. And just thinking about Southern — like returning to Southern saw-wood pricing in the first quarter. You called out the year-over-year decline, but I was just looking, pricing looks like it was up about 6% or so from the fourth quarter. So I’m wondering if you can just kind of comment on what drove that increase, whether it was mix or the fact that competitors couldn’t bring logs to market? And then how you think that kind of dynamic plays out over the second quarter and then into the second half if lumber op rates are a little bit stronger than you’re anticipating?
Douglas Long: Sure. Yes. So yes, you’re right. On a quarter-over-quarter basis, we did see improvement in that pricing and the — some of that was due to wet weather we saw. But also, I think going in the year, there was some encouragement in the mills. So we saw lots of strength basically in the sawmills and going into that. And that has tempered a little bit as we’ve gone through the rest of the quarter basically as we see that. When we talked about that some of our pricing that we’re seeing going from Q1 to kind of Q2 and think can go on outlook really the shift in geography basically. So we’re going to have a shift in our harvest moving a little bit from the Atlantic or more towards the Gulf states, which typically have just slightly lower pricing as well as we’re going to have an increase in our thinning harvest throughout the rest of the year. And that typically produces either more pulpwood but as well as lower grade sawlogs and smaller ones.
Gregory Andreopoulos: Thank you very much. I’ll turn it over.
Operator: [Operator Instructions] Our last caller is Michael Roxland with Truist Securities. You may go ahead.
Niko Pacini: Hi, guys. Thanks for taking my questions. This is Niko Pacini on for Mike Roxland. Just on the $1 billion disposition plan, can you comment maybe on where you’re seeing the most interest, is it public companies, TMOs, things like that? And then on the Washington parcel the nonstrategic qualities that make it attractive for disposition. Is that similar to the Oregon parcel and that it maybe is geographically dislocated from the rest of your holdings in the area?
Mark McHugh: Yes. I mean in terms of the first question, I’d say that we’re seeing a pretty wide range of interest across the board. I mean the TMOs continue to have a fair amount of capital to place. By our estimates about the $4 billion that’s actively looking for timberland acquisitions. I think there’s also a fair amount of capital that’s flowing into the space or looking to get in the space just around carbon related or impact related investments. And so again, we continue to see pretty strong bid in the timberland market and just a pretty robust M&A market overall. As it relates to the Washington properties, again, we’re not commenting specifically on the nature of those properties at this juncture. Suffice it to say, as we’ve looked at potential properties for disposition, we have really looked at trying to maintain strategic scale within each of our regions.
And so again, we’ve generally focused on properties that we think will allow us to maintain that across our three different operating areas.
Niko Pacini: Got it. And then I guess just switching gears. You talked about some of the demand for your development projects. What are you hearing from some of your customers that are homebuilders on take up on interest demand? Can you give any update on that, please?
Mark McHugh: Again, single-family dynamics continue to be pretty strong and favorable. And then we’ve certainly seen that in our development projects. Recognize that a lot of the activity that we are focused on right now is around single-family residential, including age restricted. And so we continue to see pretty robust demand in both of our major development projects.
Niko Pacini: Got it. Thank you very much. That’s all for me.
Operator: And thank you. There are no further questions at this time. I’ll turn the call over to Collin Mings.
Collin Mings: Thank you. This is Collin Mings. I’d like to thank everybody for joining us. Please contact us with any follow-up questions.
Operator: Thank you. This concludes today’s conference call. You may go ahead and disconnect at this time.
