Sunrise loses 15 properties
Washington Business Journal - by Jeff Clabaugh Staff Reporter
HCP Inc., whose real estate holdings include hundreds of senior communities, is firing Sunrise Senior Living Inc. from more than a dozen of its properties.
Long Beach, Calif.-based HCP said it has terminated management contracts at 15 communities operated by Sunrise for failing to meet performance goals. Sunrise, based in McLean, will cease managing those properties by Oct. The contracts do not require it to pay a termination fee, HCP said.
The company said it is in discussions with a new management company for the properties and intends to improve its operating margins.
HCP acquired 101 Sunrise Senior Living-managed properties as part of its acquisition of CNL Retirement Properties Inc. in 2006. In 2008, it terminated Sunrise contracts at 11 of those properties.
In addition to owning senior communities, HCP owns medical office buildings, labs and hospitals.
Sunrise, which avoided a potential bankruptcy filing when it restructured debt in April, announced 150 layoffs at its corporate headquarters last month. The company reported an $18.2 million first-quarter loss and has scaled back expansion plans.
Sunrise stock (NYSE: SRZ) ended Thursday trading at $2.46 per share. It has lost 90 percent of its market value in the past year.
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