(Dec. 15) Federal Way, Wash.-based Weyerhaeuser said that its board of directors has approved a conversion of the timberlands company to a real estate investment trust, allowing the company to take advantage of certain tax benefits.

The company said the conversion could happen as soon as next year, depending on economic recovery and changes in tax policy.

“Our company will be enhanced by the REIT structure,” said Dan Fulton, president and CEO. “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.”

The company said that by the end of the year of the conversion, they must issue a special, taxable dividend to stockholders of its undistributed earnings and profits. They also said they intend to pay a significant portion of the dividend in stock.