Sunrise Senior Living reports profit
- November 4, 2010
Sunrise Senior Living swung to a third-quarter profit helped by a $40 million buyout.
The McLean-based company reported a profit of $18.7 million, or 33 cents per diluted share, compared with a loss of $44.4 million, or 88 cents per share, in the third quarter last year.
The senior living community received $40 million from a buyout with HCP, which owned 27 communities that were operated by Sunrise. The agreement allowed HCP to drop Sunrise as an operator and ended litigation between the companies. Sunrise used the money to pay down its debt. Since the quarter ended, it has received another $10 million.
The company has been aggressively paying down its debt. Sunrise had a consolidated debt of $267.2 million as of Sept. 30, compared with a $440.2 million debt on Dec. 31, 2009.
Total revenue in the quarter grew to $383.3 million, compared with $361.5 million during the same period last year. Community revenue, occupancy and average daily revenue all increased in the third quarter.
Comparable community revenue increased 2.9 percent to $495.1 million, compared with $481 million in the third quarter of 2009. Average unit occupancy grew to 87 percent in the third quarter, compared with 86.6 percent last year. Average daily revenue grew 2.4 percent to $202.05 for the third quarter of 2010.