How long can Weyerhaeuser resist the pressures to restructure.

Implications: The article states that Weyerhauser has put off conversion to a REIT this year, largely in response to passage of the TREE act (Timber Revitalization and Economic Enhancement Act ) by Congress. This closely fits the prediction I made in my analysis in early January this year (see:" Further Evidence That Weyerhaeuser Is Planning To Change Structure" 01/02/08).

Analysis: Though passage of the TREE act will give them about $50 million in tax benefits, it doesn't equal the tax benefits that they could eventually reap by converting to a REIT (or similar structure).  Additionally as the lumber market continues to struggle (likely well into 2009 and perhaps beyond), they well have additional pressure to trim additional manufacturing facilities. I predict that that plus the pressures from investors wanting the additional returns that REITs provide will force them to convert to a REIT no later than the end of 2009.