Sunrise Senior Living (NYSE:SRZ) reported a third-quarter profit as it saw $40 million in buyout fees from HCP in the quarter to bring its income to $18.7 million, or $0.33 per fully diluted share. Revenues for the quarter were up to $383 million compared to $361 million for the same period in 2009. Sunrise stated that its community operating expenses for the third quarter of 2010 increased 3.3 percent over the third quarter of 2009 from $352.0 million to $363.7 million and that its revenues increased by 2.9% to $495 million in Q3 2010. Average unit occupancy at the communities rose to 87% from 86.2% in Q2 2010.
Sunrise’s profitability for the quarter was helped with the settlement agreement with HCP that allowed HCP the right to to terminate Sunrise as the manager of 27 communities that HCP owns. During the fourth quarter, HCP paid Sunrise an additional $10 million as part of the settlement and restructuring agreement.
"We continue to be pleased with our structural improvements," said Mark Ordan, Sunrise’s chief executive officer. "Our results and trends make us optimistic about our short- and long-term future."
See the full Sunrise Q3 2010 8-K