Please Post in a perspicacious manner
You're both right, but it's a little complicated.
To be a REIT, PZN has to pay out not only 95% of
this year's taxable income, but also 100% of CCA's
"earnings and profits" that were accumulated as of
12/31/98. The only timing requirement is that they be paid
out by the end of 1999.
Currently, PZN has
been paying .05/share of the special dividend
quarterly. In addition, the quarterly operating dividend is
about .04/share higher than required under the 95%
rule, so that excess comes out of CCA's E&P, which also
reduces the amount that has to be paid as a special
dividend ine December.
If PZN continues to pay .60
per share each quarter this year, but taxable income
decreases, then the additional excess over the 95%
requirement will also come out of CCA's E&P, thus further
reducing the amount required to be paid in
December.
You understand correctly that the CCA E&P is a fixed
amount. The only variable is when it is paid. The more
that is paid in the quarterlies, the less will be paid
in Dec.