UPDATE 1-Weyerhaeuser says REIT change unlikely this year

* Weyerhaeuser says REIT conversion unlikely this year

* View could change if economy improves

* Stock down slightly (Adds more comments, background, stock down)

By Steve James

NEW YORK, May 29 (Reuters) - Timber company Weyerhaeuser Co (WY.N: Quote, Profile, Research) said on Friday it was unlikely to convert to a real estate investment trust (REIT) structure this year, although that might change if economic conditions improve.

"Several factors, including the low level of timber income this year ... make it unlikely that conversion to a REIT will be beneficial in 2009," Chief Financial Officer Patricia Bedient said at the company's annual investor conference.

"However, if economic conditions improve that outlook could change," she said, noting the company's board had considered a potential REIT conversion, but had made no final decision.

Weyerhaeuser, which has been undergoing a multiyear restructuring, has been under pressure from analysts and investors to adopt a REIT structure, which is more tax efficient than its current corporate structure.

Last year, at the same event, Bedient had ruled out converting to a REIT in 2008 or 2009, saying such a move given the dismal U.S. housing market conditions would not be tax efficient and would only increase the company's debt burden.