Weyerhauser says conversion to a REIT supports its strategic direction

By Lisa Kerner

Charlotte, N.C., Dec. 15 - Weyerhauser Co. expects to convert to a real estate investment trust in 2010, it was announced on Tuesday.

The company's board of directors believes the move supports its strategic direction, according to a Weyerhauser news release.

"This conversion will position us to be more competitive in our timberlands business," Weyerhauser president and chief executive officer Dan Fulton said in the release.

"In addition, we are able to convert with our existing business mix of timberlands, wood products, cellulose fibers and real estate," Fulton said.

According to Weyerhauser, it must issue a special, taxable dividend to stockholders of its undistributed earnings and profits by the end of the year of conversion.

The Federal Way, Wash., forest products company said it expects its earnings and profits to total just under $6 billion at the beginning of 2010.

Weyerhauser intends to pay a "significant portion of the dividend" in stock, the release said.

Shareholders would need to approve an increase in the authorized number of shares at the annual shareholder meeting in April.

Also at the meeting, shareholders will be asked to approve amendments to the company's articles of incorporation to eliminate Weyerhauser's classified board structure and remove existing supermajority voting provisions, the company said.

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