Take ~$120mm from PZN, send it down the operating company, have it send $100mm back to PZN and call it rent, and then PZN expenses nothing against that so they book a $100mm increase in FFO. I seriously question the merits of this treatment.
For those not familiar, Boston Chicken was one of the biggest disasters of all time, I think it is now Bankrupt. Boston Chicken was a restaurant franchisor that had a bunch of franchisees that were paying it big fanchise fees. Boston Chicken was booking a lot of earnings from the franchise fees, but the franchisees were actually losing money after paying Boston Chicken the fees. On top of that, Boston Chicken was actually loaning money to the franchisees to send the franchise fee back up to the parent. Meanwhile, the franchisees were going broke, and ultimately couldn't pay back the loan. So even though Boston Chicken corporate was reporting good EPS (becasue you can do a lot w/accounting relative to how you treat cash expenses), the system as a whole was failing. Eventually, the Ponzi scheme collapsed on itself.
Not sure if what PZN is doing is much different. Granted, PZN is a great company with some very positive charasteristics. However, numbers are numbers and aggressive acounting can only mask so much. Think is the part of the reason the auditors forced so much disclosure in the Q, so we would know about all the monies moving back and forth. Will be interesting to see how this plays out. JMHO.