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A natural element in the portfolio

AP3 began investing in timberland in 2004 and now owns circa 240,000 hectares of production forest. These holdings are to a major part directly owned but also held through a group of 10 or so funds. The forests are sustainably managed and 95% are certified. The timber is used primarily for building materials, furniture and to manufacture paper products.

Timberland investments

AP3 owns timberland in Sweden, North America, Latin America, Africa and Oceania, mainly directly through Three Tree and Gysinge Skog, but also through a dozen forest funds. Investing in different regions and tree species diversifies the risk.

As of 12/31/2022

Timberland 3.1 percent of the portfolio
Return +15.8%
Contribution +0.4%

Directly owned timberland investments

Gysinge Skog

Gysinge Skog manages approximately 60,000 hectares of productive forest land, mainly in Central Sweden in the counties of Dalarna, Uppsala, Gävleborg, Örebro and Västmanland. There is also a larger holding in Jämtland County. AP3 and Kåpan each own half of Gysinge Skog. The company conducts long-term and environmentally sound forestry with sustainable profitability. It also leases out land and water for hunting and fishing and leases land for gravel pits and wind power. Forestry is certified. Read more at

a view of one of the AP3 forest investments in Gysinge Sweden

Three Tree

Three Tree invests strategically and long-term in forest assets in the United States. The company currently owns a total of approximately 140,000 hectares in Oregon and Texas, two regions with a long tradition of forestry and well-developed forest industries where the right conditions exist for sustainable modern forestry. The forest is managed long-term and sustainably by local partners and forest managers. Douglas fir and Loblolly pine grow mainly on the company’s land, tree species whose primary use is as structural lumber and pulpwood. The forestry is certified.


a view of one of the AP3 forest investments in the US via the Three Tree Holding company

Forests store carbon dioxide

As a long-term investment, timberland is an excellent fit for the AP3 portfolio. Forests take decades to grow and as they do so they store carbon dioxide independently of the business cycle. AP3’s forests store circa of 49 million tonnes of carbon and their annual growth keep storing tonnes of atmospheric carbon. The Fund’s timberland holdings can also be expected to generate strong returns if climate scenarios turn negative. For example, increased atmospheric carbon and higher temperatures due to global warming are likely to promote faster tree growth in Sweden. Hence, timberland adds stability to AP3’s overall investment returns over time.

New uses of sustainable forest raw materials

For centuries, forests have provided raw material for the pulp and lumber industries and demand is now growing also from new products such as wood chips, biofuel and other alternative materials. In building construction, interest is growing for replacing materials like concrete and steel with wood as a way to save energy and store carbon. Through collaboration and strategic partnerships, AP3 sees great potential for providing sustainable timber and other wood-based raw material to the industry.

Geographical distribution of forest, percent 12/31- 2022

Latin America 2
North America 65
Globally 2
Sweden 11
Oceania 20