MCLEAN, Va., Aug. 6 /PRNewswire-FirstCall/ -- Sunrise Senior
Living, Inc. (NYSE:SRZ) today reported financial results and
operating data for the second quarter of 2009. Sunrise will host a
conference call and webcast Thursday, August 6, 2009, at 9:00 a.m.
ET, to discuss the financial results. "Our restructuring activities
have progressed and we have seen signs of progress in expense
controls. In recent weeks we have seen a modest lift in occupancy,"
said Mark Ordan, Sunrise's chief executive officer. "While we are
pleased by these accomplishments, we have much more to do and our
organization is fully committed to this task." Financial Results
for Second-Quarter 2009 Sunrise reported revenues of $380.9 million
for the second quarter of 2009, as compared to $411.3 million for
the second quarter of 2008. Net loss for the second quarter of 2009
was ($81.8) million, or ($1.62) per fully diluted share, as
compared to net loss of ($31.8) million, or ($0.63) per fully
diluted share, for the second quarter of 2008. Included in the loss
from discontinued operations of ($46.9) million for the three
months ended June 30, 2009, is an operating loss of approximately
$8 million, as well as an impairment loss of $52.4 million, both
relating to Sunrise's nine German communities, which are now
considered assets held for sale. Also included in discontinued
operations is a $7.1 million gain from the settlement between us
and the previous owners of Trinity. In the second quarter, net loss
from operations for the three months ended June 30, 2009, was
($43.2) million. Excluding SEC investigation costs of $1.2 million
and restructuring costs of $9.2 million and non-cash charges
including depreciation and amortization of $14.4 million, the
provision for doubtful accounts of $2.0 million, write-off of
capitalized project costs of $1.4 million and impairment of long
lived assets of $25.0 million, adjusted income from ongoing
operations is $10.0 million. Adjusted income from ongoing
operations is a measure of operating performance that is not
calculated in accordance with U.S. GAAP and should not be
considered as a substitute for income or loss from operations or
net income or loss. Adjusted income from ongoing operations is used
by management to focus on income generated from the ongoing
operations of the Company and to help management assess if
adjustments to current spending decisions are needed. For a
reconciliation of these items, please refer to the attached table
"Income from Ongoing Operations." Cash and Liquidity Update As
previously announced, on April 28, 2009, Sunrise entered into the
Twelfth Amendment to the Bank Credit Facility. Sunrise has reduced
outstanding borrowings on its Bank Credit Facility with its $20.8
million from federal tax refunds, $1 million of the proceeds from
the sale of its equity interest and receivable from the Aston
Gardens venture, and in June 2009, $2.5 million of the proceeds
from a settlement agreement with Trinity Hospice's prior owners. On
June 30, 2009, Sunrise had under its Bank Credit Facility
outstanding borrowings of $69.2 million and outstanding letters of
credit of $23.9 million. Sunrise has no borrowing availability
under the Bank Credit Facility. Sunrise had $37.0 million and $29.5
million of unrestricted cash at June 30, 2009 and December 31,
2008, respectively. As of June 30, 2009, Sunrise and its
consolidated subsidiaries had debt of $614.5 million, of which
$99.1 million of debt is scheduled to mature in 2009, along with
$69.2 million of draws on the Bank Credit Facility. Long-term debt
that is in default totals $360.4 million, including $190.2 million
of debt that is in default as a result of the failure to pay
principal and interest to the lenders of Sunrise's German
communities, as further described below, and $170.2 million of debt
that is in default as a result of Sunrise's failure to meet certain
financial covenants. Sunrise has reflected current debt and
long-term debt that is in default as a current liability. Sunrise
is engaged in discussions to extend the maturity dates of, and to
obtain covenant waivers with respect to, some of its debt. Even if
these efforts are successful, additional financing resources will
be required to refinance existing indebtedness that comes due
within the next 12 months. Sunrise is also engaged in discussions
with various venture partners and third parties regarding the sale
of certain assets with the purpose of increasing liquidity and
reducing its obligations to enable Sunrise to continue its
operations. Assuming Sunrise is able to extend or refinance the
scheduled maturities and obtain the covenant waivers with respect
to the consolidated debt that is in default, Sunrise believes it
has adequate cash resources to fund operations and meet its
obligations as they come due until the December 2, 2009 maturity
date of the Bank Credit Facility. Germany As previously announced,
Sunrise has standstill agreements with all of the lenders to its
German communities, which standstills will generally remain in
effect until the end of August. Sunrise continues its discussions
with the lenders to its German communities with the objective of
settling their claims against Sunrise, in order to allow Sunrise to
exit the German market altogether. In the second quarter of 2009,
Sunrise engaged a broker to assist in the sale of its nine German
communities and the Company expects a sale to occur within 90 days,
although there can be no assurance that the initial bids received
will result in the consummation of a sale. If a sale does not
occur, Sunrise will proceed with closing the communities and
negotiating a settlement with the lenders. Based on the bids the
Company has received, Sunrise determined that the book value of the
assets was in excess of the fair value less estimated costs to
sell, and has therefore recorded an impairment charge of $52.4
million in discontinued operations. Sunrise expects to settle the
German debt for an amount that is less than the carrying amount on
our consolidated balance sheet of $190.2 million, which was
recorded at fair value on September 1, 2008 in connection with the
consolidation of the venture, as the debt is only partially
recourse to Sunrise. Any difference between the recorded amount of
debt and the amount ultimately paid to the lenders as a settlement
will be recorded as a gain once the debt is legally satisfied.
Trinity Hospice Settlement During the second quarter of 2009,
Sunrise received approximately $9.8 million as part of a settlement
agreement with the former majority stockholders of its wholly owned
subsidiary, Trinity Hospice. Sunrise received a release all claims
and causes of action against it as part of the settlement
agreement. Putative Class Action and Shareholder Litigation
Settlements On June 26, 2009, the U.S. District Court for the
District of Columbia granted final approval of the settlement of
the two previously disclosed federal securities and shareholder
class action lawsuits entitled In Re: Sunrise Senior Living Systems
Securities Litigation and In re Sunrise Senior Living Derivative
Litigation, Inc., respectively. Under the settlements, all claims
against the Company and the individual defendants have been
dismissed with prejudice, in exchange for, among other things,
payment to the class of $13.5 million, of which $13.4 million has
been paid by insurance proceeds and $100,000 has been paid by the
Company. EdenCare Portfolio Transition As the Company previously
disclosed, Sunrise could be terminated in 2009 from management of a
portfolio of communities owned by HCP, Inc. for failure to meet
performance thresholds. On June 18, 2009, HCP announced that this
termination right had been exercised. Sunrise's management, which
earned fees totaling $3.0 million in 2008, is expected to
transition to another manager by October 2009. Operating Data for
Second-Quarter 2009 The nine German communities have been excluded
from Sunrise's 2009 second quarter operating results set forth
below because they are considered discontinued operations. --
Comparable community revenues for the second quarter of 2009
decreased by 1.4 percent, from $553.3 million for the second
quarter of 2008 to $545.3 million for the second quarter of 2009.
Excluding the impact of foreign exchange rates, comparable
community revenues for the second quarter of 2009 remained flat
year over year. Sunrise's comparable community portfolio consists
of communities that were open and operating as of January 1, 2007,
and include consolidated, unconsolidated venture, and managed
communities in the United States, Canada and the United Kingdom. --
Average unit occupancy in comparable communities for the second
quarter of 2009 was 86.9 percent, which was down from 89.6 percent
for the second quarter of 2008. Pricing incentives were
conservative in the first half of 2009. Toward the end of the
second quarter, Sunrise implemented focused initiatives to build
census, and is beginning to see positive results in the third
quarter of 2009. -- Average daily revenue per occupied unit
increased 2.0 percent from $181.42 for the second quarter of 2008
to $185.04 for the second quarter of 2009. Excluding the impact of
foreign exchange rates, average daily revenue per occupied unit for
the comparable community portfolio increased 3.5 percent for the
second quarter of 2009 as compared to the second quarter of 2008.
-- Comparable community operating expenses for the second quarter
of 2009 decreased 1.8 percent over the second-quarter of 2008 from
$412.7 million to $405.3 million. Excluding a $5 million health and
dental credit experienced in the second quarter of 2008, and
excluding the impact of foreign exchange rates, comparable
community operating expenses decreased 1.7 percent. Comparable
community operating expense results for the quarter continue to
demonstrate Sunrise's system-wide focus on aggressively managing
all operating expenses, without compromising quality of care, to
reflect current occupancy levels and to maximize community
profitability. -- In the second quarter of 2009, Sunrise opened
five new communities, with a combined capacity of 587 units. As of
June 30, 2009, Sunrise had nine communities under construction,
with capacity for an additional 745 units. -- As of June 30, 2009,
Sunrise operated 415 communities located in the United States,
Canada, the United Kingdom and Germany, with a unit capacity of
approximately 42,750 units. Sunrise's management believes that
total comparable-community revenues, average daily revenue per
occupied unit, average unit occupancy rates and total
comparable-community expenses are useful indicators of trends in
Sunrise's management business. For additional details on Sunrise's
comparable-community operations data, please refer to the
Supplemental Information attached. Conference Call and Webcast
Sunrise will host a conference call and webcast at 9:00 a.m. ET on
Thursday, August 6, 2009, to discuss the financial results for the
second quarter of 2009 and the other matters discussed in this
press release. The call-in number for the conference call is
888-298-3451 and 719-457-1529 (from outside the U.S.). Callers
should reference the "Sunrise Senior Living Q2 Earnings Call" or
the participant passcode: 4727771. Those interested may also go to
the Investor Relations section of Sunrise's Web site
(http://www.sunriseseniorliving.com/) to listen to the earnings
call. A telephone replay of the call will be available until August
20, 2009 at 12 p.m. ET, by dialing 888-203-1112 or 719-457-0820
(passcode: 4727771); a replay will also be available on Sunrise's
Web site during that period. About Sunrise Senior Living Sunrise
Senior Living, a McLean, Va.-based company, employs approximately
40,000 people. As of June 30, 2009, Sunrise operated 415
communities in the United States, Canada, Germany and the United
Kingdom, with a combined unit capacity of approximately 42,750
units. Sunrise offers a full range of personalized senior living
services, including independent living, assisted living, care for
individuals with Alzheimer's and other forms of memory loss, as
well as nursing and rehabilitative services. Sunrise's senior
living services are delivered by staff trained to encourage the
independence, preserve the dignity, enable freedom of choice and
protect the privacy of residents. To learn more about Sunrise,
please visit http://www.sunriseseniorliving.com/. Forward-Looking
Statements Certain matters discussed in this press release may be
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Although Sunrise believes
the expectations reflected in such forward-looking statements are
based on reasonable assumptions, there can be no assurances that
these expectations will be realized. Sunrise's actual results could
differ materially from those anticipated in these forward-looking
statements as a result of various factors, including, but not
limited to, changes in the Company's anticipated cash flow and
liquidity; the Company's ability to maintain adequate liquidity to
operate its business and execute its restructuring; the Company's
ability to obtain waivers, cure or reach agreements with respect to
defaults under the Company's loan, joint venture and construction
agreements; the risk that a group of the Company's creditors,
acting together, could force the Company into an involuntary
bankruptcy proceeding; the Company's ability to sell its Germany
communities and settle the related debt within a reasonable time
period, and to negotiate a comprehensive restructuring of the
Company's obligations in respect of its Fountains portfolio and
certain other of its ventures; the Company's ability to refinance
its Bank Credit Facility and other debt due in 2009 and/or raise
funds from other sources; the Company's ability to achieve
anticipated savings from the Company's cost reduction program; the
outcome of the U.S. Securities and Exchange Commission's
investigation; the outcome of the IRS audit of the Company's tax
returns for the tax years ended December 31, 2005, 2006 and 2007;
the Company's ability to continue to recognize income from
refinancings and sales of communities by ventures; risk of changes
in the Company's critical accounting estimates; risk of further
write-downs or impairments of the Company's assets; risk of future
obligations to fund guarantees and other support arrangements to
some of the Company's ventures, lenders to the ventures or
third-party owners; risk of declining occupancies in existing
communities or slower than expected leasing of new communities;
risk resulting from any international expansion; development and
construction risks; availability of financing for development,
including construction loans as to which we are in default; risks
associated with past or any future acquisitions; compliance with
government regulations; risk of new legislation or regulatory
developments; business conditions and market factors that could
affect occupancy rates at and revenues from the Company's
communities and the value of the Company's properties generally;
competition and our response to pricing and promotional activities
of our competitors; changes in interest rates; unanticipated
expenses; the risks of further downturns in general economic
conditions including, but not limited to, financial market
performance, consumer credit availability, interest rates,
inflation, energy prices, unemployment and consumer sentiment about
the economy in general; risks associated with the ownership and
operation of assisted living and independent living communities;
and other risks detailed in the Company's 2008 Annual Report on
Form 10-K filed with the SEC, as may be amended or supplemented in
the Company's Form 10-Q filings or otherwise. The Company assumes
no obligation to update or supplement forward-looking statements
that become untrue because of subsequent events. SUNRISE SENIOR
LIVING, INC. CONSOLIDATED BALANCE SHEETS (In thousands, except per
share and share June 30, December 31, amounts) 2009 2008 ---- ----
ASSETS (Unaudited) Current Assets: Cash and cash equivalents
$36,965 $29,513 Accounts receivable, net 33,673 54,842 Income taxes
receivable 6,486 30,351 Notes receivable 170 - Due from
unconsolidated communities 24,237 45,255 Deferred income taxes, net
21,832 25,341 Restricted cash 34,816 37,392 Assets held for sale
52,424 49,076 German assets held for sale 101,893 - Prepaid
insurance 3,571 8,850 Prepaid expenses and other current assets
42,165 24,288 ------ ------ Total current assets 358,232 304,908
Property and equipment, net 473,015 681,352 Investment in
marketable securities 31,389 31,080 Due from unconsolidated
communities 15,444 31,693 Intangible assets, net 56,517 70,642
Goodwill - 39,025 Investments in unconsolidated communities 78,845
66,852 Investments accounted for under the profit-sharing method
14,622 22,005 Restricted cash 104,516 123,772 Other assets, net
9,891 10,228 ----- ------ Total assets $1,142,471 $1,381,557
========== ========== LIABILITIES AND EQUITY Current Liabilities:
Current maturities of debt $334,681 $377,449 Outstanding draws on
bank credit facility 69,200 95,000 Debt relating to German assets
held for sale 190,213 - Accounts payable and accrued expenses
160,474 184,144 Liabilities associated with German assets held for
sale 8,061 - Due to unconsolidated communities 1,775 914 Deferred
revenue 7,455 7,327 Entrance fees 34,461 35,270 Self-insurance
liabilities 46,613 35,317 ------ ------ Total current liabilities
852,933 735,421 Debt, less current maturities 20,439 163,682
Investment accounted for under the profit-sharing method - 8,332
Guarantee liabilities 13,339 13,972 Self-insurance liabilities
62,145 68,858 Deferred gains on the sale of real estate and
deferred revenues 19,950 88,706 Deferred income tax liabilities
21,832 28,129 Other long-term liabilities, net 101,755 126,543
------- ------- Total liabilities 1,092,393 1,233,643 ---------
--------- Equity: Preferred stock, $0.01 par value, 10,000,000
shares authorized, no shares issued and outstanding - - Common
stock, $0.01 par value, 120,000,000 shares authorized, 50,825,364
and 50,872,711 shares issued and outstanding, net of 389,872 and
342,525, at June 30, 2009 and December 31, 2008, respectively 508
509 Additional paid-in capital 460,899 458,404 Retained loss
(427,005) (327,056) Accumulated other comprehensive income 13,434
6,671 ------ ----- Total stockholders' equity 47,836 138,528 ------
------- Noncontrolling interests 2,242 9,386 ----- ----- Total
equity 50,078 147,914 ------ ------- Total liabilities and equity
$1,142,471 $1,381,557 ========== ========== See accompanying notes
SUNRISE SENIOR LIVING, INC. CONSOLIDATED STATEMENTS OF INCOME Three
Months Ended Six Months Ended June 30, June 30, (In thousands,
except per share -------- -------- amounts) 2009 2008 2009 2008
---- ---- ---- ---- (Unaudited) (Unaudited) Operating revenue:
Management fees $29,072 $31,234 $57,510 $64,892 Resident fees for
consolidated communities 106,862 104,286 214,489 209,247 Ancillary
fees 11,860 10,672 23,081 20,962 Professional fees from
development, marketing and other 3,809 13,133 10,534 21,001
Reimbursed costs incurred on behalf of managed communities 229,256
251,935 471,348 504,698 ------- ------- ------- ------- Total
operating revenues 380,859 411,260 776,962 820,800 Operating
expenses: Community expense for consolidated communities 80,867
77,514 162,364 153,891 Community lease expense 14,603 14,884 29,157
29,732 Depreciation and amortization 14,357 11,110 29,795 22,654
Ancillary expenses 11,141 9,365 21,502 18,858 General and
administrative 27,372 44,830 57,805 76,611 Development expense
3,494 8,190 8,665 20,617 Write-off of capitalized project costs
1,417 11,719 13,495 36,697 Accounting Restatement, Special
Independent Committee inquiry, SEC investigation and stockholder
litigation 1,176 4,938 2,433 23,428 Restructuring costs 9,236 -
16,923 - Provision for doubtful accounts 2,016 1,458 11,004 3,440
(Gain) loss on financial guarantees and other contracts (443) 572
654 727 Impairment of long-lived assets 25,040 2,349 25,040 2,349
Costs incurred on behalf of managed communities 233,824 252,715
479,241 503,308 ------- ------- ------- ------- Total operating
expenses 424,100 439,644 858,078 892,312 ------- ------- -------
------- Loss from operations (43,241) (28,384) (81,116) (71,512)
Other non-operating income (expense): Interest income 119 1,508 856
2,974 Interest expense (3,210) (2,615) (7,148) (3,940) Gain (loss)
on investments 2,114 (720) 809 (4,720) Other income (expense) 2,365
530 1,319 (5,646) ----- --- ----- ------ Total other non-operating
income (expense) 1,388 (1,297) (4,164) (11,332) Gain on the sale
and development of real estate and equity interests 14,961 3,952
16,703 14,312 Sunrise's share of (loss) earnings and return on
investment in unconsolidated communities (4,400) 2,047 13,975 8,342
Loss from investments accounted for under the profit-sharing method
(2,448) (791) (6,260) (499) ------ ---- ------ ---- Loss before
(provision for) benefit from income taxes and discontinued
operations (33,740) (24,473) (60,862) (60,689) (Provision for)
benefit from income taxes (956) 4,124 2,459 16,228 ---- ----- -----
------ Loss before discontinued operations (34,696) (20,349)
(58,403) (44,461) Discontinued operations, net of tax (46,863)
(12,890) (41,440) (23,036) ------- ------- ------- ------- Net loss
(81,559) (33,239) (99,843) (67,497) Less: Net (income) loss
attributable to noncontrolling interests (229) 1,463 (106) 2,596
---- ----- ---- ----- Net loss attributable to common shareholders
$(81,788) $(31,776) $(99,949) $(64,901) ======== ======== ========
======== Earnings per share data: Basic net loss per common share
Loss before discontinued operations $(0.69) $(0.40) $(1.16) $(0.88)
Discontinued operations, net of tax (0.93) (0.23) (0.82) (0.41)
----- ----- ----- ----- Net loss $(1.62) $(0.63) $(1.98) $(1.29)
====== ====== ====== ====== Diluted net loss per common share Loss
before discontinued operations $(0.69) $(0.40) $(1.16) $(0.88)
Discontinued operations, net of tax (0.93) (0.23) (0.82) (0.41)
----- ----- ----- ----- Net loss $(1.62) $(0.63) $(1.98) $(1.29)
====== ====== ====== ====== See accompanying notes SUNRISE SENIOR
LIVING, INC. INCOME FROM ONGOING OPERATIONS Three Months Ended Six
Months Ended June 30, June 30, -------- -------- (In thousands)
2009 2008 2009 2008 ---- ---- ---- ---- (Unaudited) (Unaudited)
Loss From Operations $(43,241) $(28,384) $(81,116) $(71,512)
Non-cash expenses: Depreciation and amortization 14,357 11,110
29,795 22,654 Write-off of capitalized project costs 1,417 11,719
13,495 36,697 Provision for doubtful accounts 2,016 1,458 11,004
3,440 Impairment of long-lived assets 25,040 2,349 25,040 2,349
------ ----- ------ ----- Loss From Operations before non-cash
expenses (411) (1,748) (1,782) (6,372) Accounting Restatement,
Special Independent Committee inquiry, SEC investigation and
stockholder litigation 1,176 4,938 2,433 23,428 Restructuring costs
9,236 - 16,923 - ----- --- ------ --- Adjusted income from ongoing
operations $10,001 $3,190 $17,574 $17,056 ======= ====== =======
======= Adjusted income from ongoing operations is a measure of
operating performance that is not calculated in accordance with
U.S. generally accepted accounting principles ("GAAP") and should
not be considered as a substitute for income/loss from operations
or net income/loss. Adjusted income from ongoing operations is used
by management to focus on liquidity generated from the ongoing
operations of the Company and to help management assess if
adjustments to current spending decisions are needed. Sunrise
Senior Living, Inc. Supplemental Information As of June 30, 2009 ($
in thousand except average daily rate) Unit Resident Communities
Capacity Capacity ----------- -------- -------- Q2 09 Q2 08 Q2 09
Q2 08 Q2 09 Q2 08 ----- ----- ----- ----- ----- ----- Community
Data (1,2) Communities managed for third-party owners (excluding
Greystone) 136 149 14,109 15,496 15,509 16,966 Communities in
ventures 209 206 19,434 20,421 22,211 23,027 Communities
consolidated 70 64 9,211 8,527 9,720 8,940 Greystone communities -
22 - 5,850 - 5,850 --- -- --- ----- --- ----- Total communities
operated 415 441 42,754 50,294 47,440 54,783 === === ====== ======
====== ====== Percentage of Total Operating Portfolio Assisted
Living 76% 73% Independent Living 19% 22% Skilled Nursing 5% 5% ---
--- Total 100% 100% === === Selected Operating Results Comparable
Community Owned Portfolio Operating Results (3) Q2 09 Q2 08 %
Change -------------------------- ----- ----- -------- Total
Comparable-Community Portfolio --------------------------- Number
of Communities 361 361 Unit Capacity 37,282 37,370 Resident
Capacity 41,151 41,286 Community Revenues $545,313 $553,300 -1.4%
Community Revenues Excluding Impact of '09 Exchange Rates $553,197
$553,300 0.0% Community Operating Expenses $405,304 $412,734 -1.8%
Community Operating Expenses Excluding Impact of '09 Exchange Rates
and Health and Dental Credit $410,412 $417,692 -1.7% Average Daily
Revenue Per Occupied Unit $185.04 $181.42 2.0% Average Daily
Revenue Per Occupied Unit Excluding Impact of '09 Exchange Rates
$187.72 $181.42 3.5% Average Unit Occupancy Rate 86.9% 89.6% (270)
basis points Communities in ventures and managed for third- party
owners (excluding Greystone) ------------------------ Number of
Communities 302 302 Unit Capacity 29,124 29,150 Resident Capacity
32,351 32,704 Community Revenues $441,895 $449,892 -1.8% Community
Revenues Excluding Impact of '09 Exchange Rates $449,778 $449,892
0.0% Community Operating Expenses $325,303 $330,472 -1.6% Community
Operating Expenses Excluding Impact of '09 Exchange Rates and
Health and Dental Credit $330,410 $334,281 -1.2% Average Daily
Revenue Per Occupied Unit $192.81 $190.19 1.4% Average Daily
Revenue Per Occupied Unit Excluding Impact of '09 Exchange Rates
$196.25 $190.19 3.2% Average Unit Occupancy Rate 86.5% 89.1% (260)
basis points Communities consolidated -------------------------
Number of Communities 59 59 Unit Capacity 8,158 8,220 Resident
Capacity 8,500 8,582 Community Revenues $103,419 $103,409 0.0%
Community Revenues Excluding Impact of '09 Exchange Rates $103,419
$103,409 0.0% Community Operating Expenses $80,002 $82,263 -2.7%
Community Operating Expenses Excluding Impact of '09 Exchange Rates
and Health and Dental Credit $80,002 $83,411 -4.1% Average Daily
Revenue Per Occupied Unit $157.86 $151.09 4.5% Average Daily
Revenue Per Occupied Unit Excluding Impact of '09 Exchange Rates
$157.86 $151.09 4.5% Average Unit Occupancy Rate 88.2% 91.5% (330)
basis points Development Communities to be Opened (# Communities)
---------------------------------------------------- Q309 Q4 09 Q1
10 Q2 10 Total ---- ----- ----- ----- ----- Consolidated
communities - - - - - Venture communities 6 3 - 9 --- --- --- ---
--- 6 3 - - 9 Development Communities to be Opened (# Units)
---------------------------------------------- Q309 Q4 09 Q1 10 Q2
10 Total ---- ----- ----- ----- ----- Consolidated communities - -
- - - Venture communities 502 243 - 745 --- --- --- --- --- 502 243
- - 745 Development Communities to be Opened (# Residents)
-------------------------------------------------- Q309 Q4 09 Q1 10
Q2 10 Total ---- ----- ----- ----- ----- Consolidated communities -
- - - - Venture communities 596 282 - 878 --- --- --- --- --- 596
282 - - 878 Notes ----- (1) During the second quarter of 2009,
Sunrise opened five venture communities. There were also six
venture communities sold or disposed and one management contract
terminated in the second quarter. (2) Comparable community
portfolio consists of all communities in which Sunrise has an
ownership interest in or management agreement with and were under
Sunrise ownership or management for at least 24 months as of the
January 1, 2009. This includes consolidated communities,
communities in ventures and communities managed for third-party
owners. (3) Community operating expenses exclude management fees
paid to Sunrise with respect to comparable-community ventures in
order to make comparisons between consolidated and venture
communities consistent. DATASOURCE: Sunrise Senior Living, Inc.
CONTACT: Meghan Lublin, Corporate and Investor Communications,
+1-703-854-0299 Web Site: http://www.sunriseseniorliving.com/
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