Weyerhaeuser Closes Door On REIT Conversion In '09

She cited as reasons Weyerhaeuser's current low level of timber income, which reduces the benefit from converting to REIT status this year, plus a hefty one-time cash distribution that would be required.

Nevertheless, the CFO also said the situation was fluid.

"While the board continues to review the benefits and risks associated with REIT conversion, no final decision has been made," she said. "We believe it is unlikely that REIT conversion in 2009 would be value creating. However, if economic conditions improve, this outlook could change."

In afternoon trading, shares fell 15 cents to $33.24.