Business News
WEYERHAEUSER ANNOUNCES INTENT TO ELECT REIT STATUS; TIMING UNDER CONSIDERATION
Wednesday 16. December 2009 - Weyerhaeuser Company (NYSE: WY) today announced that its board of directors has determined that conversion to a real estate investment trust (REIT) would best support the companys strategic direction.
“Our company will be enhanced by the REIT structure,” said Dan Fulton, president and chief executive officer. “This conversion will position us to be more competitive in our timberlands business. In addition, we are able to convert with our existing business mix of Timberlands, Wood Products, Cellulose Fibers and Real Estate.”
Chuck Williamson, chairman, said “The board has not set a date for the conversion, but the earliest and most likely date would be for the year 2010 based on circumstances as we know them today.”
Factors the board will consider in determining the timing of converting to a REIT include the state of the economic recovery, changes in tax policy including shareholder tax rates and the distribution of earnings and profits required under tax laws for REIT election.
By the end of the year of conversion, Weyerhaeuser must issue a special, taxable dividend to stockholders of its undistributed earnings and profits. As of the beginning of 2010, Weyerhaeuser expects earnings and profits to total just under $6 billion.
Weyerhaeuser said it intends to pay a significant portion of the dividend in stock. This will require shareholder approval to increase the authorized number of shares at the annual shareholder meeting in April. Shareholders will receive information on this proposal, and the proposed governance changes announced earlier this morning, in the 2010 proxy statement to be mailed in February.