RAYONIER INC — Director's Dealing 2005

May 27, 2005

SEC Form 3 — Initial Statement of Beneficial Ownership

Issuer: RAYONIER INC (RYN)
CIK: 0000052827
Period of Report: 2005-05-20

Reporting Person: MARGIOTTA CHARLES (SR VP, Business Development)

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Shares	20450	Direct
Common Shares	9716	Indirect

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
01/02/01 Employee Stock Option	$21.52	2011-01-04	Common Shares (17805.00)		Direct
01/03/00 Employee Stock Options	$26.26	2010-01-05	Common Shares (26708.00)		Direct
01/04/99 Employee Stock Option	$25.59	2009-01-06	Common Shares (11354.00)		Direct
Employee Stock Option	$27.88	2012-01-04	Common Shares (17805.00)		Direct
Employee Stock Option	$41.20	2014-01-01	Common Shares (10000.00)		Direct
Employee Stock Options	$25.84	2013-01-04	Common Shares (17805.00)		Direct
Employee Stock Options	$48.40	2015-01-03	Common Shares (10000.00)		Direct

Footnotes

F1: Shares are held in the Rayonier Investment and Savings Plan for this person's account.

F2: Vests in one-third installments annually commencing 12/30/04.

F3: Vest in one-third installments annually commencing 01/02/2004.

F4: Vests in one-third installments annually commencing 1/3/06.