Your question was improperly phrased. I didn't say they didn't make enough FFO to pay the regular dividend. I said they didn't make enough to pay the special dividend in December.
Any examination of the fundamentals proves that. And NO answer has ever been recieved as to why they haven't already paid the required special dividend if they could afford to do so. There is no reason to wait until December except that they don't have the money. They were hoping to earn the money, or borrow the money, or dilute the company by issuing stock (all negatives for investors). Their ability to do any of these things now is questionable.
The remainder is simple logic. Once the company gives up on paying the special December dividend, and faces having to pay the resultant tax penalties, there remains little reason to continue paying REIT-required type regular dividends from their perspective. They'll need to retain that cash to pay Uncle. Or face the possibility of becoming insolvent.
This logic seems inescapable. I wish somebody could put forth any argument to counter it, instead of the ostrich-in-the-sand counters I keep hearing.
Valueing this stock on the basis of a dividend yield that is increasingly insecure seems foolish. And that is why all the smart investors are bailing!