Further evidence that Weyerhaeuser is preparing to change structure.

Implications: For more than a year there has been strong conjecture that Weyerhaeuser, the last of the wood products giants still standing as a vertically integrated company, would soon follow Plum Creek, Potlatch, Rayonier & others and restructure itself as a Timber REIT.  The naming of Daniel Fulton, VP of their Real Estate Division, to be President certainly seems to add credence to that  position.

Analysis: Weyerhaeuser has long prided itself on its vertical integration and near full self sufficiency for raw material, and that pride is deeply embedded in the company's culture. They truly consider themselves "The tree growing company". 
However, the tax inefficiencies for a timberland owning vertically integrated C corporation relative to a REIT or TIMO structure, and the pressures of the investment community have been pushing them relentlessly (and reluctantly) towards a change in structure.  If they are successful in their lobbying efforts to gain tax treatment for their timberlands on a par with REITs etc., they will likely remain a vertically integrated company.  However, success in those efforts seems quite unlikely.
In order to qualify for conversion to a REIT a company must (among other things) receive at least 75% of its income from REIT qualifying operations (e.g. Real Estate, timberl & timberlands) and place the non-qualifying operations (e.g. lumber and paper mills) in a subsidiary company.  Over the last year or so WY has been divesting itself of non-REIT qualifying operations at an unprecedented pace. However, a couple of months ago when I asked a company VP " At your current rate of striping non-REIT qualifying  operations, how long will it be before you could convert to a REIT?", the question was somewhat deflected by the VP statiing that the company was always looking out for their shareholders' interest by evaluating and disposing of assets that were under performing their goals. 
While the current rate of divestiture or indefinite shuttering of building supply yards and lumber, plywood, and other solid wood products mills, can be explained by the extreme downturn in home construction, the same is not true for their closing or sale of paper products operations (e.g. Dotmar transaction).
Thus at this point the naming of the VP of their Real Estate Division to President would seem to be almost akin to their overtly announcing their intention to convert to a REIT or other tax efficient structure.