Weyerhauser just reported net earnings of more than $1.1 billion in the third quarter, which works out to $3.50 per share. That’s exciting news for shareholders, in that it demonstrates conclusively that Weyerhauser’s ongoing conversion to a REIT is a canny move. County and state officials might have a different take; the Wall Street Journal says REIT-sizing “should slash Weyerhaeuser’s tax rate to nil as it tries to improve results.”

It’s the single most profitable thing that Weyerhauser has done over Q3, in that if you exclude the $1 billion booked for tax adjustments, per-share profit falls to $0.25. In terms of actual business, Weyerhauser’s Cellulose Fibers division led the way, up $15 million in year-over-year profits, to $181 million total for Q3.

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Otherwise wood products sales were affected by the weak housing market, said Dan Fulton, president and chief executive officer, adding: “The housing market also affects our Timberlands business, where we continue to defer harvest due to lower log demand.” Weyerhauser warned that fourth quarter operating earnings are expected to be lower than the third, due to soft markets in all areas.