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Timber REITs: Weyerhaeuser’s Conversion and Special Dividend Timeline

Interested in owning Weyerhaeuser (WY) shares prior to a special dividend distribution? In 2009, the company announced its intent to convert to a timberland-owning real estate investment trust (timber REIT).  With this likely to occur in 2010, it requires WY to issue to shareholders a special, taxable dividend of its undistributed earnings and profits.  Expected to total $5.5 to $5.7 billion, the dividend will be paid out in cash (up to 10%) and WY common shares.*

While the exact timing of the payout has yet to be determined, a general timeline (below) based on information from WY shows how the special dividend affects current and potential shareholders.

*This theme will be addressed further during the “Applied Forest Finance” and “Valuing Timber REITs” courses on August 4, 2010 in Atlanta, Georgia

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