Converting to a REIT, Weyerhaeuser will lower its federal tax by 35%, increase shareholder distributions, and pay out a huge initial distribution, amounting to about $26. WY shares sell for about $37.
Most of that initial payout will be in the form of stock; cash distributions are limited to 10% of the total distribution.
According to the message boards, the distribution will be taxable and may result in taxes greater than the cash payout.
REITs often pay no corporate income tax.