Sep 21, 2005. /Lesprom Network/. Potlatch Corporation, an integrated forest products company, announced that its board of directors has approved a restructuring to convert the company to a real estate investment trust, effective January 1, 2006. The company expects its annual dividend, post conversion, to be approximately $76 million, or $2.60 per share. Potlatch also intends to issue a special, taxable dividend to stockholders of its undistributed earnings and profits of approximately $440-$480 million in the first quarter of 2006. In addition, Potlatch provided information on two ongoing resource initiatives that are expected to generate significant long-term cash flow and earnings growth. Under the conversion plan, income from the company's 1.5 million acres of timberland assets will qualify for REIT tax treatment. All of Potlatch's non-qualifying operations, including the company's wood products, pulp and paperboard and consumer products businesses, will be transferred into a wholly-owned taxable REIT subsidiary and will continue to pay corporate level tax on earnings. Potlatch is a diversified forest products company with timberlands in Arkansas, Idaho, Minnesota and Oregon.