Weyerhaeuser Shareholder Vote Clears Path for REIT Conversion

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Weyerhaeuser Co., Federal Way, Wash., USA, this week reported it has received shareholder approval to issue a significant number of shares to enable the payout of its Earnings and Profits to shareholders in conjunction with its conversion to a Real Estate Investment Trust (REIT). No timetable has been set for the conversion and Earnings and Profit payout. However, the Board of Directors has previously stated that the earliest and most likely timing would be in 2010.

The Weyerhaeuser Board of Directors also announced that when the Earnings and Profit payout occurs, it intends to distribute the maximum amount of stock allowable under the Internal Revenue Code. For 2010, the IRS allows a 90% stock distribution of Earnings and Profits. "The REIT structure best supports our strategic direction," said Dan Fulton, president and CEO. "We appreciate the approval by shareholders, which will allow us to take the necessary steps to complete the conversion process."
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