Sunrise Reports Financial Results for Third Quarter of 2012

MCLEAN, Va., Nov. 7, 2012 /PRNewswire/ -- Sunrise Senior Living, Inc. (NYSE: SRZ) today reported financial results and operating data for the third quarter of 2012. 

Mark Ordan, Sunrise's chief executive officer, commented on the quarter, "We are very pleased with our third quarter results leading up to the completion of our merger with Health Care REIT that we anticipate will close in early 2013."

2012 Third Quarter Results

In the third quarter of 2012, Sunrise reported net income of $21.1 million or $0.35 per fully diluted share, as compared to a net loss of $(8.7) million, or $(0.15) per fully diluted share, for the third quarter of 2011.  Sunrise's third quarter 2012 results included a $30.7 million gain resulting from the sale of five venture-owned communities and $9.6 million in transaction costs related to the proposed merger with Health Care REIT, Inc. (NYSE: HCN) and the related proposed sale of Sunrise's management business to Red Fox Management LP, a newly formed entity in which affiliates of Kohlberg Kravis Roberts & Co. L.P., affiliates of Beecken Petty O'Keefe & Company, Coastwood Senior Housing Partners LLC and Health Care REIT will invest. 

Adjusted EBITDAR for the third quarter of 2012 was $30.0 million as compared to $36.5 million for the third quarter of 2011.  The decrease in adjusted EBITDAR was due primarily to transaction costs related to the proposed merger with Health Care REIT and management business sale. 

Adjusted EBITDAR is used by management to focus on income generated from the ongoing operations of the Company.  This 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/(loss) from operations or net income/(loss).  For a reconciliation of this measure, please refer to the attached table "Reconciliation for EBITDA, Adjusted EBITDA and Adjusted EBITDAR." 

Cash and Liquidity Update

Sunrise had $106.5 million of unrestricted cash at September 30, 2012.  Subsequent to the end of the third quarter, the balance of $24.2 million on the liquidating trust notes was paid in full in November, 2012.  As of September 30, 2012, the principal amount of Sunrise's consolidated debt was $528.9 million, as compared to $607.4 million at December 31, 2011, a decrease of $78.5 million.  The decrease in consolidated debt primarily relates to its Connecticut Avenue community moving off balance sheet totaling $27.8 million and the pay down of $39 million in outstanding draws against the Company's credit facility.

As of September 30, 2012, there was no outstanding balance against the Company's credit facility and the Company had $9.9 million in letters of credit outstanding. 

Proposed Merger with Health Care REIT and Management Business Sale

On August 21, 2012, Sunrise entered into an Agreement and Plan of Merger (the "Merger Agreement") with Health Care REIT, pursuant to which the parties agreed that, upon satisfaction of the terms and subject to the conditions set forth in the Merger Agreement, Health Care REIT would acquire Sunrise in an all-cash merger in which Sunrise's stockholders would receive $14.50 in cash for each share of Sunrise common stock, Sunrise shareholders will be entitled to receive additional transaction consideration under certain circumstances if the merger is completed after February 21, 2013 as described further in the Company's Form 8-K filed on August 22, 2012 and the Company's preliminary proxy statement filed on September 28, 2012 with the Securities and Exchange Commission.

In connection with the Merger Agreement, on September 13, 2012, Sunrise, at the request of Health Care REIT, entered into a Membership Interest Purchase Agreement with Red Fox Management LP, pursuant to which Sunrise would sell its management business and certain additional assets and liabilities for a purchase price of $129.5 million in cash.  This transaction has been agreed within the framework of the Merger Agreement, which contemplated a sale or other disposition of Sunrise's management business to take effect immediately prior to the consummation of the acquisition of Sunrise by Health Care REIT.  

Sunrise announced today that a special meeting of stockholders will be held on Monday, January 7, 2013, at which Sunrise will seek stockholder approval of the Merger Agreement with Health Care REIT and certain related matters.  Stockholders of record as of the close of business on November 21, 2012 will be entitled to vote at the special meeting.  Approval of the Merger Agreement by the Sunrise stockholders is a condition to the completion of the merger with Health Care REIT.

In addition, Sunrise today announced that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the "HSR Act"), applicable to the proposed merger with Health Care REIT expired on October 26, 2012 and the waiting period under the HSR Act applicable to the related proposed management business sale expired on November 2, 2012.  Expiration of the applicable waiting periods under the HSR Act satisfies a condition to the completion of each of these transactions. 

The completion of each transaction remains subject to other customary conditions.

The Company has filed a preliminary proxy statement and will file a definitive proxy statement with the U.S. Securities and Exchange Commission in connection with the proposed merger with Health Care REIT.  Stockholders of the Company are urged to read the definitive proxy statement when it becomes available, because it will contain important information. Stockholders will be able to obtain a free copy of the definitive proxy statement, as well as other filings containing information about the Company and the merger, when available, without charge, at the U.S. Securities and Exchange Commission's Internet site (www.sec.gov).  In addition, copies of the definitive proxy statement and other filings containing information about the Company and the proposed merger can be obtained, when available without charge, by directing a request to Sunrise Senior Living, Inc., Attention: Investor Relations, 7900 Westpark Drive, McLean, Virginia 22102, by phone at (703) 273-7500, or on the Company's website at www.sunriseseniorliving.com.

The Company, Health Care REIT and their respective directors and executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies from the Company's stockholders in respect of the proposed merger. You can find information about the Company's executive officers and directors in the Company's definitive annual proxy statement filed with the SEC on March 23, 2012. You can find information about Health Care REIT's executive officers and directors in Health Care REIT's definitive annual proxy statement filed with the SEC on March 29, 2012. You can obtain free copies of the Company's annual proxy statement, and the Company's definitive proxy statement in connection with the proposed merger (when it becomes available), by contacting the Company's investor relations department. Additional information regarding the interests of the Company's directors and executive officers will be included in the definitive proxy statement and the other relevant documents filed with the SEC when they become available.

This document shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the U.S. Securities Act of 1933, as amended.

Venture Sale of Five Communities

On August 31, 2012, ventures in the U.K. in which Sunrise is a member sold five communities to HCN UK Investments Limited for an aggregate purchase price of £154 million ($243.6 million).  Sunrise received approximately $56.1 million in cash from the transaction and recognized $30.7 million in return on investment which is included in Sunrise's share of earnings (loss) and return on investment in unconsolidated communities in the Company's consolidated statement of operations.  Sunrise remains the manager of the five communities under the same terms of the pre-existing management agreements with respect to management fees and contract length, which range from 12 to 27 years.

Operating Data for Third Quarter 2012

  • Average unit occupancy for stabilized properties for the third quarter of 2012 was 89.2 percent, which was up 130 basis points from 87.9 percent for the third quarter of 2011 and up 90 basis points sequentially compared to 88.3 percent for same communities for the second quarter of 2012. 
  • Average daily revenue per occupied unit for stabilized properties increased 2.1 percent from $218.69 for the third quarter of 2011 to $223.24 for the third quarter of 2012.
  • Stabilized property net operating income increased 7.5 percent from $145.4 million for the third quarter of 2011 to $156.3 million for the third quarter of 2012.  Overall, net operating income including lease up properties increased 7.9 percent from the third quarter of 2011 to the third quarter of 2012. 

Stabilized properties are single properties or pools of properties owned or leased by Sunrise or owned by a joint venture or third party where the single property or all of the communities in the pool have been open and operating for more than 36 months as of September 30, 2012. 

Subsequent to Quarter End

Health Care REIT Financing

On October 1, 2012, Sunrise entered into a credit agreement with Health Care REIT for approximately $467 million and borrowed $359 million in term loans under such agreement.  The borrowing was made to finance (i) Sunrise's acquisition of the HVP interests (see below) in two ventures, and (ii) repay existing mortgage debt on the certain senior living facilities Sunrise acquired in those transactions.

On October 16, 2012, Sunrise borrowed an additional $104 million under the Health Care REIT credit agreement to finance (i) the acquisition of Sunrise's partner interest in the MSREF joint venture in the United Kingdom (the "MSREF Interest") (see below), and (ii) to repay the existing mortgage debt on two senior living facilities in the MSREF venture.

HVP Sun Investor LLC and HVP Sun Investor II LLC ("HVP") Purchases

On October 1, 2012, Sunrise purchased HVP's majority interests in two ventures in which Sunrise owned minority interests.  The ventures owned 16 senior living facilities.  Sunrise paid approximately $171.0 million for HVP's interests and paid off the existing mortgage debt on 12 of the communities using proceeds from its Health Care REIT credit agreement and assumed $75 million of debt on four of the communities. 

MSREF Purchase

On October 16, 2012, Sunrise purchased the 90.19% interest held by Morgan Stanley Real Estate Fund VI Special-A International, L.P., MSREF VI Special-B C.V., Morgan Stanley Real Estate Fund VI International-T, L.P., MREF VI TE C.V. and Morgan Stanley Real Estate Investors VI International, L.P. in a venture in which Sunrise owned 9.81%.  The venture owns 17 senior living facilities in the U.K. Sunrise paid £28.7 million (approximately $46 million) for MSREF's interest. 

Immediately following the acquisition, Sunrise repaid £35.7 million (approximately $57 million) of existing mortgage debt with respect to two of the senior living facilities.  Sunrise also entered into an amended and restated term loan facility agreement that modified the terms of the existing £401.9 million (approximately $645 million) of mortgage debt with Bank of Scotland plc with respect to 15 other senior living facilities.

KeyBank Credit Facility Amendment

On October 1, 2012, Sunrise entered into a First Amendment (the "Amendment") to its Credit Agreement (the "Credit Facility"), dated June 16, 2011, with KeyBank National Association, as administrative agent.  The Amendment modified certain financial and other covenants in the Credit Facility to, among other things, permit the borrowings and security under the Health Care REIT credit agreement.  The financial and other covenant modifications will remain in place until the earlier to occur of (i) September 5, 2013 and (ii) 15 days after the termination of the Merger Agreement with Health Care REIT.

Supplemental Information

For additional details on Sunrise's stabilized and lease up properties, please refer to the Supplemental Information attached. Also, additional supplemental information has been furnished to the Securities and Exchange Commission in a Form 8-K, and can also be found on the Supplemental Data link on the Investor Relations section of the Company's website at http://suppdata.sunriseseniorliving.com/

Conference Call and Webcast

In light of the pending merger between Sunrise and Health Care REIT, Sunrise will not be hosting an earnings conference call.

About Sunrise Senior Living

Sunrise Senior Living, a McLean, Va.-based company, employs approximately 31,600 people. As of September 30, 2012, Sunrise operated 303 communities located in the United States, Canada and the United Kingdom, with a unit capacity of approximately 29,400 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 assurance 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; the risk that the proposed merger with Health Care REIT, Inc. ("HCN") and the related proposed sale of Sunrise's management business will not close due to failure to satisfy the various conditions precedent thereto or have such conditions waived; the occurrence of any event, change or circumstances that could give rise to the termination of the Merger Agreement; the ability to obtain stockholder and regulatory approvals of the Merger on the timing and terms thereof; the risk that we may not be able to complete the Reorganization on the expected timing and terms thereof; completion of the Management Business Sale (or, if such sale does not occur and HCN requests that we spin off our management business, the spin-off of) the management business; unanticipated difficulties and/or expenditures relating to the Merger; the ability to extend leases on our operation properties at expiration; or the possibility that we will be unable to obtain certain third party consents, any of which events would likely have a material adverse effect on the market value of our common stock; the risk that we may be unable to reduce expenses and generate positive operating cash flows; the risk of future obligations to fund guarantees to some of our ventures and  lenders to the ventures; the risk of further write-downs or impairments of our assets; the risk that we are unable to obtain waivers, cure or reach agreements with respect to existing or future defaults  under our loan, venture and construction agreements; the risk that we will be unable to repay, extend or refinance our indebtedness as it matures, or that we will not comply with loan covenants; the risk that our ventures will be unable to repay, extend or refinance their indebtedness as it matures, or that they will not comply with loan covenants creating a foreclosure risk to our venture interest and a termination risk to our management agreements; the risk that we are unable to continue to recognize income from refinancings and sales of communities by ventures; the risk of declining occupancies in existing communities or slower than expected leasing of newer communities; the risk that we are unable to extend leases on our operating properties at expiration; the risk that some of our management agreements, subject to early termination provisions based on various performance measures, could be terminated due to failure to achieve the performance measures; the risk that our management agreements can be terminated in certain circumstances due to our failure to comply with the terms of the management agreements or to fulfill our obligations thereunder; the risk that ownership of the communities we manage is heavily concentrated in a limited number of business partners; the risk that our current and future investments in ventures could be adversely affected by our lack of sole decision-making authority, our reliance on venture partners' financial condition, any disputes that may arise between us and our venture partners and our exposure to potential losses from the actions of our venture partners; the risk related to operating international communities that could adversely affect those operations and thus our profitability and operating results; the risk from competition and our response to pricing and promotional activities of our competitors; the risk that liability claims against us in excess of insurance limits could adversely affect our financial condition and results of operations including publicity surrounding some claims that may damage our reputation, which would not be covered by insurance; the risk of not complying with government regulations; the risk of new legislation or regulatory developments; the risk of changes in interest rates; the risk of unanticipated expenses; the risks of further downturns in general economic conditions including, but not limited to, financial market performance, downturns in the housing market, consumer credit availability, interest rates, inflation, energy prices, unemployment and consumer sentiment about the economy in general; the risks associated with the ownership and operation of assisted living and independent living communities; other risk factors contained in the Company's Form 10-K filed with the SEC on March 1, 2012, as amended on March 15, 2012, and as may be amended or supplemented in our Form 10-Q filings. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events. Unless the context suggests otherwise, references herein to "Sunrise," the "Company," "we," "us" and "our" mean Sunrise Senior Living, Inc. and our consolidated subsidiaries.

Investor Relations Contact
Tim Smith, 703-854-0348

Media Contact
Meghan Lublin, 703-854-0299

 

SUNRISE SENIOR LIVING, INC.

CONSOLIDATED BALANCE SHEETS












September 30,


December 31,

(In thousands, except per share and share amounts)

2012


2011

ASSETS

(Unaudited)




Current Assets:






Cash and cash equivalents

$         106,462


$           49,549



Accounts receivable, net

47,744


40,538



Due from unconsolidated communities

12,058


17,926



Deferred income taxes, net

24,047


19,912



Restricted cash

50,691


47,873



Assets held for sale

5,929


1,025



Prepaid expenses and other current assets

27,622


12,290




Total current assets

274,553


189,113


Property and equipment, net

552,756


624,585


Intangible assets, net

35,046


38,726


Investments in unconsolidated communities including those accounted for under the profit-sharing method

19,392


42,925


Restricted cash

184,339


183,622


Restricted investments in marketable securities

2,690


2,479


Assets held in the liquidating trust

20,912


23,649


Other assets, net

9,811


13,269




Total assets

$      1,099,499


$      1,118,368








LIABILITIES AND EQUITY





Current Liabilities:






Current maturities of debt

$           24,344


$           77,861



Outstanding draws on bank credit facility

0


39,000



Liquidating trust notes, at fair value

24,161


26,255



Accounts payable and accrued expenses

173,525


134,157



Due to unconsolidated communities

288


404



Deferred revenue 

10,538


11,804



Entrance fees

17,845


19,618



Self-insurance liabilities

42,560


42,004




Total current liabilities

293,261


351,103


Debt, less current maturities

470,201


450,549


Investments accounted for under the profit-sharing method

15,632


12,209


Self-insurance liabilities

39,414


43,611


Deferred gains on the sale of real estate and deferred revenues

0


8,184


Deferred income tax liabilities

24,047


19,912


Interest rate swap

19,966


21,359


Other long-term liabilities, net

94,276


109,548




Total liabilities

956,797


1,016,475


Equity:






Preferred stock, $0.01 par value, 10,000,000 shares authorized, 







no shares issued and outstanding

0


0



Common stock, $0.01 par value, 120,000,000 shares authorized, 58,389,117 and







57,640,010 shares issued and outstanding, net of 658,435 and 509,577 treasury shares, 







at September 30, 2012 and December 31, 2011, respectively

584


576



Additional paid-in capital

496,788


487,277



Retained loss

(352,543)


(385,294)



Accumulated other comprehensive loss

(8,234)


(5,932)




Total stockholders' equity

136,595


96,627


Noncontrolling interests

6,107


5,266




Total equity

142,702


101,893




Total liabilities and  equity

$      1,099,499


$      1,118,368















 

SUNRISE SENIOR LIVING, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS


















Three Months Ended


Nine Months Ended






September 30,


September 30,

(In thousands, except per share amounts)

2012


2011


2012


2011






(Unaudited)


(Unaudited)

Operating revenue:









Management fees

$        24,855


$        23,496


$        74,510


$        72,110


Buyout fee

1,200


3,044


1,450


3,044


Resident fees for consolidated communities

121,599


120,855


376,067


323,027


Ancillary fees

8,460


7,641


24,754


22,751


Professional fees from development, marketing and other

521


553


999


1,398


Reimbursed costs incurred on behalf of managed communities

167,251


179,038


509,132


543,168



Total operating revenues

323,886


334,627


986,912


965,498

Operating expenses:









Community expense for consolidated communities

85,442


87,159


264,400


231,832


Community lease expense

16,315


18,746


53,454


55,071


Depreciation and amortization

9,624


10,536


31,442


26,165


Ancillary expenses

7,924


7,127


23,063


21,099


General and administrative

44,003


28,263


97,871


88,216


Carrying costs of liquidating trust assets and idle land

490


658


1,780


1,700


Provision for doubtful accounts

111


990


1,968


2,450


Impairment of long-lived assets

805


2,899


15,860


8,254


Gain on financial guarantees and other contracts

0


0


0


(12)


Costs incurred on behalf of managed communities

167,994


180,275


509,668


545,953



Total operating expenses

332,708


336,653


999,506


980,728




Loss from operations

(8,822)


(2,026)


(12,594)


(15,230)

Other non-operating income (expense):









Interest income

167


705


771


1,868


Interest expense

(6,157)


(6,373)


(22,646)


(12,537)


Gain on fair value resulting from business combinations, including pre-existing investments

0


0


7,470


11,250


Gain on fair value of liquidating trust note

0


0


0


88


Other income (expense)

2,151


(2,590)


2,062


(2,618)



Total other non-operating expense

(3,839)


(8,258)


(12,343)


(1,949)

Gain on the sale and development of real estate and equity interests

0


727


4,457


3,817

Sunrise's share of earnings (loss) and return on investment 









in unconsolidated communities

32,445


5,304


60,994


(1,454)

Loss from investments accounted for under the profit-sharing method

(1,202)


(2,096)


(5,873)


(6,860)




Income (loss) before provision for income 












taxes and discontinued operations 

18,582


(6,349)


34,641


(21,676)

Benefit from (provision for) income taxes

1,559


(72)


264


(1,575)




Income (loss) before discontinued operations 

20,141


(6,421)


34,905


(23,251)

Discontinued operations, net of tax 

1,491


(1,906)


(255)


(502)




Net income (loss) 

21,632


(8,327)


34,650


(23,753)





Less: Income attributable to noncontrolling interests, net of tax

(509)


(407)


(1,899)


(1,408)




Net income (loss) attributable to common shareholders

$        21,123


$        (8,734)


$        32,751


$      (25,161)













Earnings per share data:









Basic net income (loss) per common share










Income (loss) before discontinued operations

$            0.34


$          (0.12)


$            0.57


$          (0.43)



Discontinued operations, net of tax

0.03


(0.03)


0.00


(0.01)




Net income (loss)

$            0.37


$          (0.15)


$            0.57


$          (0.44)














Diluted net income (loss) per common share










Income (loss) before discontinued operations

$            0.33


$          (0.12)


$            0.55


$          (0.43)



Discontinued operations, net of tax

0.02


(0.03)


0.00


(0.01)




Net income (loss)

$            0.35


$          (0.15)


$            0.55


$          (0.44)













 

SUNRISE SENIOR LIVING, INC.

Reconciliation For EBITDA, Adjusted EBITDA, and Adjusted EBITDAR













EBITDA, Adjusted EBITDA, and Adjusted EBITDAR













EBITDA, adjusted EBITDA, and adjusted EBITDAR are measures of operating performance that are not calculated in accordance with U.S. generally accepted accounting principles and should not be considered as a substitute for income/loss from operations or net income/loss. EBITDA, adjusted EBITDA, and adjusted EBITDAR are used by management to focus on performance and liquidity as EBITDA excludes depreciation and amortization, interest income, interest expense, and provision for income taxes.  Adjusted EBITDA further excludes buyout fees, allowance for uncollectible receivables from owners, impairment of long-lived assets, gain on financial guarantees and other contracts, gain on fair value resulting from business combinations, gain on fair value of liquidating trust note, other income/(expense), stock compensation, gain on the sale and development of real estate and equity interests, proportionate share of joint venture interest, taxes, transaction costs, depreciation, amortization, and rent, loss from investments accounted for under the profit-sharing method, and discontinued operations, net of tax.  Adjusted EBITDAR further excludes consolidated community lease expense and our share of lease expense from consolidated New York communities leased from a venture.













The following table reconciles adjusted EBITDA and adjusted EBITDAR to net income (loss) attributable to
common shareholders (in millions):


















Three Months Ended


Nine Months Ended






September 30,


September 30,






2012


2011


2012


2011













Net (loss) income attributable to common shareholders

$         21.1


$         (8.7)


$         32.8


$       (25.2)


Depreciation and amortization

9.6


10.5


31.4


26.2


Interest income

(0.2)


(0.7)


(0.8)


(1.9)


Interest expense

6.2


6.4


22.6


12.5


Provision for income taxes

(1.6)


0.1


(0.3)


1.6

EBITDA

35.1


7.6


85.7


13.2


Buyout Fees

(1.2)


(3.0)


(1.5)


(3.0)


Allowance for uncollectible receivables from owners

0.2


0.3


0.9


0.8


Impairment of long-lived assets

0.8


2.9


15.9


8.3


Gain on fair value resulting from business combinations

-


-


(7.5)


(11.3)


Gain on fair value of liquidating trust note

-


-


-


(0.1)


Other income/(expense)

(2.2)


2.6


(2.1)


2.6


Stock compensation

3.0


2.2


7.8


5.9


Gain on the sale and development of real estate and equity interests

-


(0.7)


(4.5)


(3.8)


Proportionate Share of Joint Venture Interest, Taxes, Transaction Costs, Depr., Amort., and rent, 










net of equity in earnings

(19.1)


4.4


(24.7)


33.4


Loss from investments accounted for under the profit-sharing method

1.2


2.1


5.9


6.9


Discontinued operations, net of tax 

(1.5)


1.9


0.3


0.5

Adjusted EBITDA

$         16.3


$         20.3


$         76.2


$         53.4


Consolidated Community Lease Expense

12.0


14.5


40.3


42.7


Lease expense from Consolidated New York communities leased from a venture (Sunrise share)

1.7


1.7


5.3


4.9

Adjusted EBITDAR

$         30.0


$         36.5


$      121.8


$      101.0













Sunrise's general and administrative expense included $9.6 million in transaction costs related to the proposed merger with HCN and the management business sale for the quarter and nine months ended September 30, 2012.













 

Sunrise Senior Living





















Community Data





















Ownership Type






















































Portfolio Breakout 









Revenue by Payor Mix










By Senior Living Service/Care Options









Three Months Ended September 30, 2012








Percentage of Total Resident Occupancy As of 9/30/12








Private Pay






94.8%






Assisted Living

56.0%






Medicare






3.1%






Independent Living


15.4%






Medicaid






2.1%






Memory Care



26.1%






Total 






100.0%






Skilled Nursing



2.5%


















Total 



100.0%









































Stabilized Properties 2)


Unit Occupancy


Net Operating Income 1)


Community Operating Revenue


Revenue per Occupied Unit






Three Months Ended


Nine Months Ended


Three Months Ended


Nine Months Ended


Three Months Ended


Three Months Ended






September 30,


September 30,


September 30,


September 30,


September 30,


September 30,

Ownership Type

Comm.


Units


2012


2011


2012


2011


2012


2011


2012


2011


2012


2011


2012


2011

Consolidated 4)

23


2,111


85.7%


84.1%


84.8%


83.0%


$     12,511,305


$     10,406,300


$     35,571,354


$     31,073,783


$     36,409,674


$      34,861,511


$      218.64


$      214.44

Leased 4)

23


5,326


89.5%


89.2%


89.2%


89.3%


18,099,453


17,527,864


54,259,754


57,043,720


71,886,447


71,288,799


163.92


163.09

Joint Ventures-US

66


4,910


90.2%


88.7%


89.5%


88.7%


34,234,643


28,616,686


95,774,789


85,809,275


103,660,605


97,456,401


250.07


239.04

Joint Ventures-UK

22


1,833


85.6%


87.9%


86.6%


87.2%


15,348,505


15,114,457


46,335,311


41,700,240


43,989,500


44,735,361


304.74


301.98

Managed

152


13,341


89.8%


87.6%


89.0%


87.2%


76,056,303


73,689,363


222,592,003


212,804,207


250,006,017


239,405,812


226.72


222.69

Total Stabilized

286


27,521


89.2%


87.9%


88.6%


87.6%


$   156,250,209


$   145,354,670


$   454,533,211


$   428,431,225


$   505,952,243


$    487,747,884


223.24


218.69





























Lease-Up Properties 3)


Unit Occupancy


Net Operating Income 1)


Community Operating Revenue


Revenue per Occupied Unit






Three Months Ended


Nine Months Ended


Three Months Ended


Nine Months Ended


Three Months Ended


Three Months Ended






September 30,


September 30,


September 30,


September 30,


September 30,


September 30,

Ownership Type

Comm.


Units


2012


2011


2012


2011


2012


2011


2012


2011


2012


2011


2012


2011

Joint Ventures-US

11


1,355


74.4%


66.9%


72.1%


63.1%


4,773,828


4,165,576


13,681,260


10,312,607


16,780,420


15,508,092


195.43


202.88

Managed

6


506


91.9%


79.8%


88.5%


75.5%


3,767,727


3,187,323


11,049,033


8,400,973


10,919,386


9,970,077


278.90


289.22

Total Lease Up

17


1,861


79.2%


70.4%


76.6%


66.5%


$       8,541,555


$       7,352,899


$     24,730,293


$     18,713,580


$     27,699,806


$      25,478,169


215.19


222.79





























Total Properties


Unit Occupancy


Net Operating Income 1)


Community Operating Revenue


Revenue per Occupied Unit






Three Months Ended


Nine Months Ended


Three Months Ended


Nine Months Ended


Three Months Ended


Three Months Ended






September 30,


September 30,


September 30,


September 30,


September 30,


September 30,

Ownership Type

Comm.


Units


2012


2011


2012


2011


2012


2011


2012


2011


2012


2011


2012


2011

Consolidated 4)

23


2,111


85.7%


84.1%


84.8%


83.0%


$     12,511,305


$     10,406,300


$     35,571,354


$     31,073,783


$     36,409,674


$      34,861,511


$      218.64


$      214.44

Leased 4) 

23


5,326


89.5%


89.2%


89.2%


89.3%


18,099,453


17,527,864


54,259,754


57,043,720


71,886,447


71,288,799


163.92


163.09

Joint Ventures-US

77


6,265


86.8%


84.0%


85.7%


83.2%


39,008,471


32,782,262


109,456,049


96,121,882


120,441,025


112,964,493


240.69


233.33

Joint Ventures-UK

22


1,833


85.6%


87.9%


86.6%


87.2%


15,348,505


15,114,457


46,335,311


41,700,240


43,989,500


44,735,361


304.74


301.98

Managed

158


13,847


89.9%


87.4%


88.9%


86.8%


79,824,030


76,876,686


233,641,036


221,205,180


260,925,403


249,375,889


227.94


224.06

Total Properties

303


29,382


88.6%


86.8%


87.9%


86.2%


$   164,791,764


$   152,707,569


$   479,263,504


$   447,144,805


$   533,652,049


$    513,226,053


222.86


218.86





























Footnotes:
























1)  Net operating income from consolidated and leased communities is not reduced by allocated management fees as we eliminate management fees from 









consolidated and leased communities.























2)  Stabilized properties are single properties or pools of properties owned or leased by us or owned by a joint venture or third party where the single property or all of the 







communities in the pool have been open and operating for more than 36 months as of September 30, 2012.  















3)  Lease-up properties are single properties or pools of properties owned or leased by us or owned by a joint venture or third party where the single property or any of the 







communities in the pool have been open and operating for less than 36 months as of September 30, 2012.















4)  Net operating income is a non-GAAP measure.  Our nearest GAAP measure on our consolidated statement of operations is income/(loss) from operations. 









Net operating income excludes depreciation, amortization, lease expense, and impairment charges from these communities.  On page 6 of the supplemental tables 








please refer to a complete reconciliation of net operating income to income/(loss) from operations.











































 

Sunrise Senior Living




Community Data




Ownership Type
























Stabilized Properties 1)



Sequential Same Community-Unit Occupancy






Three Months Ended


Three Months Ended


Three Months Ended






September 30,


June 30,


March 31,

Ownership Type

Comm.


Units


2012


2012 3)


2012 3)

Consolidated 

23


2,111


85.7%


84.4%


84.3%

Leased 

23


5,326


89.5%


88.9%


89.2%

Joint Ventures-US

66


4,910


90.2%


89.2%


88.9%

Joint Ventures-UK

22


1,833


85.6%


86.3%


88.0%

Managed

152


13,341


89.8%


88.7%


88.4%

Total Stabilized

286


27,521


89.2%


88.3%


88.3%











Lease-Up Properties 2)



Sequential Same Community-Unit Occupancy






Three Months Ended


Three Months Ended


Three Months Ended






September 30,


June 30,


March 31,

Ownership Type

Comm.


Units


2012


2012 3)


2012 3)

Joint Ventures-US

11


1,355


74.4%


71.0%


71.0%

Managed

6


506


91.9%


88.7%


85.1%

Total Lease Up

17


1,861


79.2%


75.8%


74.8%











Total Properties



Sequential Same Community-Unit Occupancy






Three Months Ended


Three Months Ended


Three Months Ended






September 30,


June 30,


March 31,

Ownership Type

Comm.


Units


2012


2012 3)


2012 3)

Consolidated 

23


2,111


85.7%


84.4%


84.3%

Leased 

23


5,326


89.5%


88.9%


89.2%

Joint Ventures-US

77


6,265


86.8%


85.3%


85.0%

Joint Ventures-UK

22


1,833


85.6%


86.3%


88.0%

Managed

158


13,847


89.9%


88.7%


88.2%

Total Properties

303


29,382


88.6%


87.5%


87.4%











Footnotes:










1)  Stabilized properties are single properties or pools of properties owned or leased by us or owned by a joint venture or a third party where the single property or all of the communities in the pool have been open and operating for more than 36 months as of September 30, 2012.  

2)  Lease-up properties are single properties or pools of properties owned or leased by us or owned by a joint venture or third party where the single property or any of the communities in the pool have been open and operating for less than 36 months as of September 30, 2012.

3)  For sequential same community purposes, we have provided revised March 31, 2012 and June 30, 2012 occupancy tables which includes the same community count that exists as of the period ended September 30, 2012.  











SOURCE Sunrise Senior Living, Inc.



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