Sunrise Senior Living (NYSE:SRZ) posted a net income attributable to common shareholders of $1.8 million in the fourth quarter ended Dec. 31, 2011, compared to 2010’s Q4 net income of $50 million, and $1.72 per diluted share.
The quarter’s income represents a nearly 96% decrease from the same period in 2010, and net income per diluted share dropped from $0.87 per share to $0.03. Sunrise had a total-year net loss of $23.4 million, or ($0.41) per diluted share.
“We are pleased to report a solid fourth quarter showing continued gains in occupancy, rate, and NOI,” said Sunrise CEO Mark Ordan in the fourth quarter earnings report.
Total operating revenue increased to $330.6 million in the fourth quarter, up from $317.2 million in the same period last year. However, full-year revenues saw a slight downturn after significantly fewer buyout fees, dropping to $1.3 billion compared to 2010’s $1.4 billion.
Operating expenses rose minimally in the quarter to $329.6 million, but fell 4% for the full year to $1.33 billion, down from 2010’s $1.39 billion.
Sunrise posted an average occupancy rate of 87.2% at the end of the fourth quarter for all its properties, an improvement from the previous year’s 86.0%. For the year ended Dec. 31, 2011, total average occupancy was at 86.5%, up from 2010’s 84.5%.
The average occupancy rate for stabilized properties in the fourth quarter was 88.2%, with average daily revenue per occupied unit for stabilized properties increasing 3% to $218.92.
As part of its efforts to reduce general and administrative expenses, Sunrise eliminated 69 positions in 2011, incurring severance costs of $8.1 million, with $1.4 million of that coming in the fourth quarter.
Written by Alyssa Gerace