HCP Announces Q4 Impairment Charges Including $48 Million Associated With Erickson

HCP, Inc. (NYSE:HCP) announced a series of impairment charges on Monday in an 8-K filing that includes a $48 million dollar charge associated with three direct financing leases and a $10 million participation in a senior construction loan associated with properties operated by Erickson Retirement Communities or certain of its affiliates.   The 8-K filing outlines the series of events behind the impairment charges that dates back to the October 2006 acquisition of CNL Retirement Properties, Inc. 

The Company has also determined that its senior secured term loan made to an affiliate of the Cirrus Group, LLC (“Cirrus”), which had a carrying value of $85 million, including accrued interest of $3 million at September 30, 2009, was impaired and that HCP will record a non-cash impairment charge in the fourth quarter of 2009 of approximately $4 million.

For the full filing, click here.