"Since PZN isn't coming close to making the $2.20 dividend..."
This is where the accounting games come in. Both tax rules and financial reporting rules require capitalization of the fees being paid by PZN to OPCO. As Doc said in the CC - which analysts have rejected out of hand, but which is nevertheless true - there is little if any impact on projected FFO. Even though we'ere losing a nickel here and a nickel there on financing costs, 1999 FFO should be pretty much on target, and 95% of 1999 taxable income should be pretty close to the scheduled dividends. By virtue of another accounting fluke, any shortfall in taxable income would decrease the 12/31 special dividend, assuming they keep paying .60/share.
On the OPCO side, things aren't quite as "simple". The book accounting mirrors PZN's - fees are also capitalized (deferrred revenue). This creates a mismatch. The expenses being reimbursed are NOT capitalized on OPCO's books, so they show huge losses. As badly as Doc handled the CC, he was right about all this accounting stuff. But for tax purposes, the income is not deferred, not that it matters to OPCO.
If PZN and OPCO were combined, all the capitlization disappears. Under prior accounting rules, the start-up costs would be capitalized, but that changed and they would now be expensed, so at that point the combined operation would show perhaps half of what PZN now shows. I think maybe that is how the analysts are now viewing it.