Net income for Sunrise Senior Living, Inc. (NYSE:SRZ) tanked to $1.8 million, and $0.02 per diluted share, for the quarter ending on June 30, 2011. This is 96% lower than the previous year’s $46.3 million, and $0.81 per diluted share, and reflects the affect the housing bust had on the company.
Revenue also decreased to $322 million, down from the second quarter 2010’s $348.1 million.
Despite decreases in net income and revenue, occupancy in Sunrise’s facilities remains steady at 86%, up from last year’s 83.8%, and net operating income has increased by more than 14% for Sunrise’s total properties.
“We are pleased with our second quarter performance which shows continued strength in occupancy, rate and operating results. We are also pleased with our continuing progress in achieving our strategic goals,” says Mark Ordan, Sunrise CEO. “While our second quarter sequential occupancy dropped by 50 basis points from the first quarter to the second quarter, we have seen renewed strength in recent weeks.”
During the second quarter, Sunrise purchased a group of funds affiliated with Morgan Stanley an 80% ownership interest in a joint venture entity, AL US Development Venture, LLC, that owns 15 senior living communities for a purchase price of $45 million. Sunrise says it now owns 100% of the ownership interest in the portfolio of 15 Sunrise-managed senior living communities.
Written by Alyssa Gerace