Weyerhaeuser To Convert to REIT

FEDERAL WAY, WA-Weyerhaeuser said Tuesday its board wants the company to convert to a real estate investment trust in order to take advantage of certain tax benefits. The timing of the conversion will depend upon the economic recovery and changes in tax policy but likely will occur sometime in 2010.

Weyerhaeuser primarily grows and harvests trees, develops residential lots and builds homes, and makes a range of forest products. It manages 22 million acres of forests and generated $8 billion in net sales in 2008. Through the first nine months of 2009 it has generated just over $4 billion in sales, 35% behind the same 2008 period.

“This conversion will position us to be more competitive in our timberlands business,” Dan Fulton, president and CEO, said in a statement.