MCLEAN, Va., May 30, 2012 /PRNewswire/ -- Sunrise Senior Living, Inc. (NYSE: SRZ) announced today that on May 29, 2012, the Company agreed to pay $4 million to settle the previously disclosed litigation with Five Star Quality Care, Inc. and its affiliates.
Sunrise also announced that the Company has reached an agreement with Senior Housing Properties Trust (SNH), to allow Sunrise's early termination of leases on 10 communities leased from SNH that were scheduled to expire on December 31, 2013. Sunrise expects to transition management of the 10 communities to Five Star over the next 12 months, with the majority transitioning within the first 120 days, subject to required regulatory approvals. As part of this agreement, SNH will pay Sunrise $1 million as consideration for in place furniture, fixtures and equipment (FF&E). Sunrise will take an impairment charge in the second quarter of 2012 of approximately $16 million to the book value of leasehold improvements and FF&E at the 10 communities.
I guess it depends on when they get the check. "settles the litigation" sounds like there is no option to appeal and this is done. Q2, Q3, I don't care at this point. This is VERY good news for FVE. Nice windfall from the settlement, plus new income from managing several thousand additional units. $10. Is that too much to ask?