HCP Inc (NYSE:HCP), a real estate investment trust, filed complaints with the Deleware Chancery Court on June 29 to terminate agreements on 64 properties with Sunrise Senior Living (NYSE:SRZ). HCP says that Sunrise, who operates on property owned by the REIT, has not met its performance standards, and previously sought earlier this month to eliminate contracts on 15 facilities. It alleges that Sunrise was "operating the properties in a manner that impermissibly favored the interests of Sunrise and its affiliates at the expense of HCP and its tenants." In a statement, Sunrise CEO Mark Ordan said, "HCP purchased these communities under long-term management contracts with many years remaining . . . The communities have steadily improved their performance, yet HCP has continually expressed their desire to terminate their agreements. We see today's announcement as just another attempt to unlawfully terminate our agreements and we will enforce our rights vigorously on behalf of all Sunrise stakeholders." Shares of Sunrise Senior Living are down 20.9% at $1.70, and HCP is trading 0.8% lower at $20.94.

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