Your right. But importantly understand that PZN will need to borrow to pay that dividend. They will not be able sustain the $2.20 through normal cash flow until 2000. Again the reason is the inducement fee is paid out to CCA but it does hit a one time expense at PZN, it's capitalized over a long period, so of course FFO changes by a small amount.
I agree this company is trading like it's going bankruot which I don't feel is the case as I too boought a lot fo shares in this week.
We'll get our dividends, but watch the cash going out that is not included on a line item.
There seem to be alot of people who are afraid that PZN may have to borrow to pay the special dividend. Sounds logical since none of us would buy stock with a credit card, right? Well, consider this: PZN is not paying the special dividend because they think their investors are "soooo special" and need some good lovin' to keep them on board. They are paying it because they have to. When they acquired CCA they also aquired the accumulated profits for the year for CCA - which according to the new REIT status - had to be returned to guess who... the shareholders. What PZN got the chance to do was spend CCA's money last year to invest in new capital expenitures - essentially borrowing our money last year interest free! What a great idea. Sure, they'll borrow to pay us back this year - but in the interim they have already effectively borrowed the money for a year interest free. They are already ahead of themselves. Bravo. Confucious says, " When hiking in the forest, don't lose sight of the trees."