Published: August 03, 2011
Sunrise Reports Financial Results for Second Quarter of 2011
MCLEAN, Va., Aug. 3, 2011 /PRNewswire/ -- Sunrise Senior Living, Inc. (NYSE: SRZ) today reported financial results and operating data for the second quarter of 2011. Sunrise will host a conference call and webcast on Thursday, August 4, 2011, at 9:00 a.m. ET, to discuss the financial results.
2011 Second Quarter Results
In the second quarter of 2011, Sunrise reported revenues of $322.0 million as compared to $348.1 million for the second quarter of 2010. Net income for the second quarter of 2011 was $1.3 million or $0.02 per fully diluted share, as compared to net income of $46.3 million, or $0.81 per fully diluted share, for the second quarter of 2010. Sunrise's second quarter 2011 results included an $11.3 million gain on the fair value of pre-existing equity interest relating to acquiring the AL US portfolio. Sunrise's second quarter 2010 results included a $52.0 million gain from the German debt restructuring and a $12.7 million gain from the termination of certain management contracts.
Adjusted EBITDAR for the second quarter of 2011 was $39.1 million as compared to $32.0 million for the second quarter of 2010. This measure is used by management to focus on income generated from the ongoing operations of the Company. Adjusted EBITDAR 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 $65.1 million of unrestricted cash at June 30, 2011. As of June 30, 2011, Sunrise's consolidated debt was $565.5 million, as compared to $163.0 million at December 31, 2010, an increase of $402.5 million. The increase in consolidated debt relates to the AL US acquisition totaling $325.4 million (at fair value) and the issuance of junior subordinated convertible notes totaling $86.3 million during the second quarter of 2011.
Sunrise entered into a new $50 million senior revolving line of credit with KeyBank which closed during the second quarter of 2011. As of June 30, 2011, there were no outstanding draws against this credit facility and $0.5 million of letters of credit were issued and outstanding. Sunrise has $13.4 million in outstanding letters of credit on its terminated Bank of America Bank Credit Facility that are fully cash collateralized. Sunrise is in the process of transferring these letters of credit to its new credit facility with KeyBank, at which point the current cash collateral will be available for general corporate purposes.
AL US Acquisition
On June 2, 2011 the Company purchased from a group of funds affiliated with Morgan Stanley an 80 percent ownership interest in a joint venture entity, AL US Development Venture, LLC, that owns 15 senior living communities for a purchase price of $45 million. The Company now owns 100 percent of the ownership interest in the portfolio of 15 Sunrise-managed senior living communities. In connection with the closing of the transaction, the Company entered into a loan modification agreement with AL US's lender, HSH Nordbank, that provides for an extension of the maturity date through June 14, 2015, a partial pay down of $25 million, a cash sweep through maturity, and the release of certain management fees that were escrowed. In addition, the loan modification eliminated the requirement to further subordinate or defer management fees provided no event of default occurs. The loan modification also provides relief under current debt service coverage requirements and restructures other terms of the loan.
General and Administrative Expenses
In connection with the Company's ongoing efforts to reduce its general and administrative expenses, Sunrise eliminated 20 positions during the quarter ended June 30, 2011 and incurred $1.1 million of severance costs associated with these terminations. Further, during the quarter ended June 30, 2011, Sunrise's general and administrative expenses included $1.0 million in professional expenses associated with its previously announced transactions.
Operating Data for Second Quarter 2011
-- Average unit occupancy for total stabilized properties for the second
quarter of 2011 was 87.8 percent, which was up 40 basis points from 87.4
percent for the second quarter of 2010, but down 50 basis points
sequentially compared to 88.3 percent for the first quarter of 2011.
-- Average daily revenue per occupied unit for total stabilized properties
increased 5.2 percent from $200.84 for the second quarter of 2010 to
$211.27 for the second quarter of 2011.
-- Total stabilized property net operating income for the second quarter of
2011 increased 10.3 percent over the second quarter of 2010 from $125.1
million to $137.9 million. Overall, net operating income including
lease up properties increased 14.4 percent for the second quarter of
2011 over the second quarter of 2010.
Mark Ordan, Sunrise's chief executive officer, commented on the quarter, "We are pleased with our second quarter performance which shows continued strength in occupancy, rate and operating results. We are also pleased with our continuing progress in achieving our strategic goals. While our second quarter sequential occupancy dropped by 50 basis points from the first quarter to the second quarter, we have seen renewed strength in recent weeks."
Stabilized properties are single properties or pools of properties owned or leased by us or owned by a joint venture where the single property or all of the communities in the pool have been open and operating for more than 36 months as of June 30, 2011. This differs from our "comparable community" definition which defines comparable at the individual community level as having been open and operating as of January 1, 2009.
Venture Transaction - Subsequent to Quarter End
On August 2, 2011, Sunrise and its venture partner in a portfolio of six communities transferred ownership of the portfolio to a new joint venture owned 70 percent by a wholly-owned subsidiary of CNL Lifestyle Properties ("CNL Sub") and 30 percent by Sunrise. As part of the new venture agreement with CNL Sub, from the start of year four to the end of year six, Sunrise will have a buyout option to purchase CNL Sub's 70 percent interest in the venture for a 16% internal rate of return to CNL Sub. In addition, the new venture modified the existing mortgage loan in the amount of $133.2 million to provide for, among other things, (i) pay down of the loan by approximately $28.7 million and (ii) an extension of the maturity date of the loan to April 2014 which may be extended by two additional years under certain conditions. In connection with the transaction, Sunrise contributed $8.1 million and CNL Sub contributed $19.0 million to the new venture. See below for key financial statistics on this portfolio.
Key Financial Statistics*
Avg Unit Occ% (1) 66.40%
------------------ -----
Total Avg Daily Rate $187.65
-------------------- -------
Total Revenue ('000s) $32,661
--------------------- -------
5% Management Fee ('000s)
(2) $1,633
------------------------- ------
NOI w/ 5% MF ('000s) $8,135
-------------------- ------
Principal Loan Balance
after Paydown ('000,000s) $104.5
-------------------------- ------
Interest Rate (3) 4.58%
----------------- ----
CNL Sub Annual Preference 13% (year 1), 12% (year 2), 11.5% (year
on Cash Flow 3-6), pro-rata (year 7+)
------------------------- ---------------------------------------
*June 2011 YTD Annualized
1) The portfolio is still in the lease-up phase.
2) In connection with this transaction, our management fee was
reduced from 7% of revenue to 5% of
revenue. However, we have an incentive management fee opportunity if
certain operating results are achieved.
3) Interest rate is libor plus 208 with a 250 bps floor on libor
resulting in a current all in rate of 4.58%.
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 Web site at http://suppdata.sunriseseniorliving.com/
Conference Call and Webcast
Sunrise will host a conference call and webcast at 9:00 a.m. ET on Thursday, August 4, 2011, to discuss the financial results for the second quarter of 2011 and the other matters discussed in this press release. The call-in number for the conference call is 888-215-6896 or 913-312-1444 (from outside the U.S.). Callers should reference the "Sunrise Senior Living Q2 Earnings Call" or the participant passcode: 4094017. Those interested may also go to the Investor Relations section of the Company's Web site (http://www.sunriseseniorliving.com) to listen to the earnings call. A telephone replay of the call will be available until August 18, 2011 at 1 p.m. ET, by dialing 888-203-1112 or 719-457-0820 (passcode: 4094017); 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 31,700 people. As of June 30, 2011, Sunrise operated 316 communities located in the United States, Canada and the United Kingdom, with a unit capacity of approximately 31,000 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, the risk that we may not be able to successfully execute our plan to sell certain assets mortgaged to our German restructure transaction or the net sale proceeds of the mortgaged North American properties are not sufficient to pay the minimum amount guaranteed by Sunrise to the lenders that are party to the German restructure transactions; 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, in some cases, the expiration is as early as 2013; 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 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 risks from our international operations which are subject to a variety of risks 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 of 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; and other risk factors detailed in our Current Report on Form 8-K filed with the SEC on April 14, 2011, and as may be further 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 ContactTim Smith, 703-854-0348
Media ContactSara Krueger, 703-744-1829
SUNRISE SENIOR LIVING, INC.
CONSOLIDATED BALANCE SHEETS
December
June 30, 31,
(In thousands, except per share and share
amounts) 2011 2010
---- ----
ASSETS (unaudited)
Current Assets:
Cash and cash equivalents $65,126 $66,720
Accounts receivable, net 35,716 37,484
Income taxes receivable 2,937 4,532
Due from unconsolidated communities 15,096 19,135
Deferred income taxes, net 15,676 20,318
Restricted cash 47,738 43,355
Assets held for sale 1,404 1,099
Prepaid expenses and other current assets 10,395 20,167
------ ------
Total current assets 194,088 212,810
Property and equipment, net 637,694 238,674
Due from unconsolidated communities 3,869 3,868
Intangible assets, net 39,577 40,749
Investments in unconsolidated communities 34,942 38,675
Restricted cash 112,067 103,334
Restricted investments in marketable
securities 2,610 2,509
Assets held in the liquidating trust 43,661 50,750
Other assets, net 16,316 10,089
------ ------
Total assets $1,084,824 $701,458
========== ========
LIABILITIES AND EQUITY
Current Liabilities:
Current maturities of debt $80,308 $80,176
Accounts payable and accrued expenses 117,551 131,904
Due to unconsolidated communities 702 502
Deferred revenue 16,828 15,946
Entrance fees 30,629 30,688
Self-insurance liabilities 39,971 35,514
------ ------
Total current liabilities 285,989 294,730
Debt, less current maturities 455,306 44,560
Liquidating trust notes, at fair value 29,846 38,264
Investments accounted for under the
profit-sharing method 5,844 419
Self-insurance liabilities 44,154 51,870
Deferred gains on the sale of real estate
and deferred revenues 14,293 16,187
Deferred income tax liabilities 15,676 20,318
Interest rate swap, at fair value 16,986 0
Other long-term liabilities, net 105,871 110,553
------- -------
Total liabilities 973,965 576,901
------- -------
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,
57,633,610 and
56,453,192 shares issued and outstanding,
net of 445,238 and 428,026 treasury
shares,
at June 30, 2011 and December 31, 2010,
respectively 576 565
Additional paid-in capital 483,477 478,605
Retained loss (378,331) (361,904)
Accumulated other comprehensive income 597 2,885
--- -----
Total stockholders' equity 106,319 120,151
------- -------
Noncontrolling interests 4,540 4,406
----- -----
Total equity 110,859 124,557
------- -------
Total liabilities and equity $1,084,824 $701,458
========== ========
SUNRISE SENIOR LIVING, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
June 30,
--------
(In thousands, except per
share amounts) 2011 2010
---- ----
(Unaudited)
Operating revenue:
Management fees $24,400 $24,163
Buyout fees 0 12,717
Resident fees for
consolidated communities 111,260 88,030
Ancillary fees 7,513 10,829
Professional fees from
development, marketing
and other 522 590
Reimbursed costs incurred
on behalf of managed
communities 178,265 211,768
------- -------
Total operating revenues 321,960 348,097
Operating expenses:
Community expense for
consolidated communities 79,248 65,490
Community lease expense 19,108 14,896
Depreciation and
amortization 8,786 8,591
Ancillary expenses 6,968 10,146
General and
administrative 27,564 28,321
Carrying costs of
liquidating trust assets 635 614
Accounting Restatement,
Special Independent
Committee inquiry,
SEC investigation and
stockholder litigation 0 301
Restructuring costs 0 5,209
Provision for doubtful
accounts 86 967
Impairment of long-lived
assets 5,355 2,659
(Gain) loss on financial
guarantees and other
contracts (12) 310
Costs incurred on behalf
of managed communities 179,294 210,775
------- -------
Total operating expenses 327,032 348,279
------- -------
Loss from
operations (5,072) (182)
Other non-operating
income (expense):
Interest income 323 243
Interest expense (4,493) (2,102)
Gain on investments 0 94
Gain on fair value of
pre-existing equity
interest from a business
combination 11,250 0
Gain on fair value of
liquidating trust note 88 1,113
Other expense (961) (2,408)
---- ------
Total other non-
operating income
(expense) 6,207 (3,060)
Gain on the sale and
development of real
estate and equity
interests 2,598 1,745
Sunrise's share of
earnings (loss) and
return on investment
in unconsolidated
communities 931 (828)
Loss from investments
accounted for under the
profit-sharing method (1,740) (2,259)
------ ------
Income (loss)
before provision
for income
taxes and
discontinued
operations 2,924 (4,584)
Provision for income
taxes (773) (678)
---- ----
Income (loss)
before
discontinued
operations 2,151 (5,262)
Discontinued operations,
net of tax (333) 52,019
---- ------
Net income (loss) 1,818 46,757
Less: Net income
attributable to
noncontrolling
interests (540) (429)
-----
Net income (loss)
attributable to
common
shareholders $1,278 $46,328
=========
Earnings per share data:
Basic net income (loss)
per common share
Income (loss) before
discontinued operations $0.03 $(0.10)
Discontinued operations,
net of tax (0.01) 0.93
----- ----
Net income (loss) $0.02 $0.83
=====
Diluted net income (loss)
per common share
Income (loss) before
discontinued operations $0.03 $(0.10)
Discontinued operations,
net of tax (0.01) 0.91
----- ----
Net income (loss) $0.02 $0.81
=====
Six Months Ended
June 30,
--------
(In thousands, except per
share amounts) 2011 2010
---- ----
(Unaudited)
Operating revenue:
Management fees $48,614 $52,770
Buyout fees 0 13,471
Resident fees for
consolidated communities 213,997 175,964
Ancillary fees 15,110 21,422
Professional fees from
development, marketing
and other 845 2,692
Reimbursed costs incurred
on behalf of managed
communities 364,130 436,093
------- -------
Total operating revenues 642,696 702,412
Operating expenses:
Community expense for
consolidated communities 154,325 131,174
Community lease expense 37,805 29,639
Depreciation and
amortization 16,203 17,035
Ancillary expenses 13,972 19,946
General and
administrative 59,953 61,615
Carrying costs of
liquidating trust assets 1,042 1,239
Accounting Restatement,
Special Independent
Committee inquiry,
SEC investigation and
stockholder litigation 0 359
Restructuring costs 0 9,824
Provision for doubtful
accounts 1,524 2,078
Impairment of long-lived
assets 5,355 3,359
(Gain) loss on financial
guarantees and other
contracts (12) 310
Costs incurred on behalf
of managed communities 365,678 435,141
------- -------
Total operating expenses 655,845 711,719
------- -------
Loss from
operations (13,149) (9,307)
Other non-operating
income (expense):
Interest income 1,163 610
Interest expense (5,840) (4,238)
Gain on investments 0 647
Gain on fair value of
pre-existing equity
interest from a business
combination 11,250 0
Gain on fair value of
liquidating trust note 88 1,113
Other expense (28) (1,235)
--- ------
Total other non-
operating income
(expense) 6,633 (3,103)
Gain on the sale and
development of real
estate and equity
interests 3,090 2,210
Sunrise's share of
earnings (loss) and
return on investment
in unconsolidated
communities (6,758) (2,341)
Loss from investments
accounted for under the
profit-sharing method (4,764) (4,777)
------ ------
Income (loss)
before provision
for income
taxes and
discontinued
operations (14,948) (17,318)
Provision for income
taxes (1,503) (1,118)
------ ------
Income (loss)
before
discontinued
operations (16,451) (18,436)
Discontinued operations,
net of tax 1,025 49,727
----- ------
Net income (loss) (15,426) 31,291
Less: Net income
attributable to
noncontrolling
interests (1,001) (980)
-------
Net income (loss)
attributable to
common
shareholders $(16,427) $30,311
==========
Earnings per share data:
Basic net income (loss)
per common share
Income (loss) before
discontinued operations $(0.31) $(0.35)
Discontinued operations,
net of tax 0.02 0.89
---- ----
Net income (loss) $(0.29) $0.54
=======
Diluted net income (loss)
per common share
Income (loss) before
discontinued operations $(0.31) $(0.35)
Discontinued operations,
net of tax 0.02 0.88
---- ----
Net income (loss) $(0.29) $0.53
=======
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 accounting restatement, special independent
committee inquiry, SEC investigation, stockholder litigation, buyout
fees,
restructuring costs, write-off of capitalized project costs,
allowance for uncollectible receivables from owners, impairment of
long-lived assets,
gain on investments, other income (expense), stock compensation, gain
on the sale and development of real estate and equity interests,
proportionate share of joint venture interest, taxes, depreciation,
and amortization, 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
June 30,
--------
2011 2010
---- ----
Net income (loss)
attributable to common
shareholders $1.3 $46.3
Depreciation and
amortization 8.8 8.6
Interest income (0.3) (0.2)
Interest expense 4.5 2.1
Provision for income taxes 0.8 0.7
--- ---
EBITDA 15.1 57.5
---- ----
Accounting Restatement,
Special Independent
Committee inquiry,
SEC investigation and
stockholder litigation - 0.3
Buyout Fees - (12.7)
Restructuring costs - 5.2
Allowance for uncollectible
receivables from owners (0.2) 0.5
Impairment of long-lived
assets 5.4 2.7
(Gain) loss on financial
guarantees and other
contracts (0.0) 0.3
Gain on investments - (0.1)
Gain on fair value of pre-
existing equity interest
from a business
combination (11.3) -
Gain on fair value of
liquidating trust note (0.1) (1.1)
Other expense 1.0 2.4
Stock compensation 2.0 1.1
Gain on the sale and
development of real estate
and equity interests (2.6) (1.7)
Proportionate Share of
Joint Venture Interest,
Taxes, Transaction Costs,
Depr., and Amort.,
net of equity in earnings 11.2 12.4
Loss from investments
accounted for under the
profit-sharing method 1.7 2.3
Discontinued operations,
net of tax 0.3 (52.0)
--- -----
Adjusted EBITDA $22.5 $17.1
----- -----
Consolidated Community
Lease Expense 14.9 14.9
Lease expense from
Consolidated New York
communities leased from a
venture (Sunrise share) 1.7 -
--- ---
Adjusted EBITDAR $39.1 $32.0
===== =====
Six Months Ended
June 30,
--------
2011 2010
---- ----
Net income (loss)
attributable to common
shareholders $(16.4) $30.3
Depreciation and
amortization 16.2 17.0
Interest income (1.2) (0.6)
Interest expense 5.8 4.2
Provision for income taxes 1.5 1.1
--- ---
EBITDA 5.9 52.0
--- ----
Accounting Restatement,
Special Independent
Committee inquiry,
SEC investigation and
stockholder litigation - 0.4
Buyout Fees - (13.5)
Restructuring costs - 9.8
Allowance for uncollectible
receivables from owners 0.9 1.4
Impairment of long-lived
assets 5.4 3.4
(Gain) loss on financial
guarantees and other
contracts (0.0) 0.3
Gain on investments - (0.6)
Gain on fair value of pre-
existing equity interest
from a business
combination (11.3) -
Gain on fair value of
liquidating trust note (0.1) (1.1)
Other expense 0.0 1.2
Stock compensation 3.7 2.0
Gain on the sale and
development of real estate
and equity interests (3.1) (2.2)
Proportionate Share of
Joint Venture Interest,
Taxes, Transaction Costs,
Depr., and Amort.,
net of equity in earnings 29.0 25.2
Loss from investments
accounted for under the
profit-sharing method 4.8 4.8
Discontinued operations,
net of tax (1.0) (49.7)
---- -----
Adjusted EBITDA $34.2 $33.4
----- -----
Consolidated Community
Lease Expense 29.7 29.6
Lease expense from
Consolidated New York
communities leased from a
venture (Sunrise share) 3.2
---
Adjusted EBITDAR $67.1 $63.0
===== =====
Footnotes:
In connection with the Company's ongoing efforts to reduce its
general and administrative expenses, Sunrise eliminated 20 positions
during the
quarter ended June 30, 2011 and incurred $1.1 million of severance
costs associated with these terminations. Further, during the
quarter ended
June 30, 2011, Sunrise's general and administrative expenses included
$1.0 million in professional expenses associated with its previously
announced venture transactions.
Sunrise Senior Living
Community Data
Ownership Type
Stabilized Properties (2) Unit Occupancy
------------------------- --------------
Three Months Six Months
Ended Ended
------------- ----------
June 30, June 30,
-------- --------
Ownership Type Comm. Units 2011 2010 2011 2010
-------------- ----- ----- ---- ---- ---- ----
Consolidated (4) 21 1,898 87.2% 86.2% 87.0% 86.3%
Leased (4) 26 5,675 88.3% 88.6% 88.5% 88.9%
Joint Ventures-US 74 5,454 88.0% 86.6% 88.2% 86.3%
Joint Ventures-UK 5 434 92.9% 88.7% 92.7% 89.2%
Managed 144 13,234 87.4% 87.4% 87.6% 87.4%
--- ------ ---- ---- ---- ----
Total Stabilized 270 26,695 87.8% 87.4% 88.0% 87.4%
=== ====== ---- ---- ---- ----
Stabilized Properties (2) Net Operating Income (1)
------------------------- ------------------------
Three Months Ended
------------------
June 30,
--------
Ownership Type 2011 2010
-------------- ---- ----
Consolidated (4) $11,618,218 $10,417,507
Leased (4) 20,934,867 19,014,397
Joint Ventures-US 32,690,040 28,627,165
Joint Ventures-UK 3,896,445 3,493,707
Managed 68,763,696 63,515,706
---------- ----------
Total Stabilized $137,903,266 $125,068,482
============ ============
Stabilized Properties (2) Net Operating Income (1)
------------------------- ------------------------
Six Months Ended
----------------
June 30,
--------
Ownership Type 2011 2010
-------------- ---- ----
Consolidated (4) $20,877,368 $20,621,611
Leased (4) 42,009,190 38,647,548
Joint Ventures-US 61,578,221 54,643,148
Joint Ventures-UK 7,726,155 7,239,620
Managed 131,587,858 123,038,171
----------- -----------
Total Stabilized $263,778,792 $244,190,098
============ ============
Revenue per
Stabilized Properties (2) Occupied Unit
------------------------- -------------
Three Months
Ended
-------------
June 30,
--------
Ownership Type 2011 2010
-------------- ---- ----
Consolidated (4) $217.09 $208.16
Leased (4) 167.84 157.51
Joint Ventures-US 232.80 224.17
Joint Ventures-UK 311.58 287.72
Managed 216.81 206.20
------ ------
Total Stabilized 211.27 200.84
------ ------
Lease-Up
Properties (3) Unit Occupancy
--------------- --------------
Three Months Six Months
Ended Ended
------------- ----------
June 30, June 30,
-------- --------
Ownership Type Comm. Units 2011 2010 2011 2010
-------------- ----- ----- ---- ---- ---- ----
Consolidated (4) 4 345 61.2% 54.4% 60.4% 52.3%
Joint Ventures-US 20 2,091 67.8% 52.0% 66.4% 49.2%
Joint Ventures-UK 22 1,831 85.6% 73.0% 84.2% 70.8%
Total Lease Up 46 4,267 74.9% 61.2% 73.5% 58.7%
=== ===== ---- ---- ---- ----
Lease-Up Properties (3) Net Operating Income 1)
----------------------- -----------------------
Three Months Ended
------------------
June 30,
--------
Ownership Type 2011 2010
-------------- ---- ----
Consolidated (4) $1,017,944 $737,833
Joint Ventures-US 6,481,660 1,850,141
Joint Ventures-UK 12,144,513 10,044,008
Total Lease Up $19,644,117 $12,631,982
=========== ===========
Lease-Up Properties (3) Net Operating Income 1)
----------------------- -----------------------
Six Months Ended
----------------
June 30,
--------
Ownership Type 2011 2010
-------------- ---- ----
Consolidated (4) $1,570,419 $931,689
Joint Ventures-US 11,461,825 1,782,767
Joint Ventures-UK 23,754,938 18,792,110
Total Lease Up $36,787,182 $21,506,566
=========== ===========
Revenue per
Lease-Up Properties (3) Occupied Unit
----------------------- -------------
Three Months
Ended
-------------
June 30,
--------
Ownership Type 2011 2010
-------------- ---- ----
Consolidated (4) $245.95 $234.76
Joint Ventures-US 220.09 215.33
Joint Ventures-UK 293.78 275.98
Total Lease Up 257.94 247.76
------ ------
Total Properties Unit Occupancy
---------------- --------------
Three Months Six Months
Ended Ended
------------- ----------
June 30, June 30,
-------- --------
Ownership Type Comm. Units 2011 2010 2011 2010
-------------- ----- ----- ---- ---- ---- ----
Consolidated (4) 25 2,243 83.2% 81.3% 82.9% 81.1%
Leased (4) 26 5,675 88.3% 88.6% 88.5% 88.9%
Joint Ventures-US 94 7,545 82.4% 77.0% 82.2% 76.0%
Joint Ventures-UK 27 2,265 87.0% 76.0% 85.8% 74.3%
Managed 144 13,234 87.4% 87.4% 87.6% 87.4%
Total Properties 316 30,962 86.0% 83.8% 86.0% 83.5%
=== ====== ---- ---- ---- ----
Total Properties Net Operating Income 1)
---------------- -----------------------
Three Months Ended
------------------
June 30,
--------
Ownership Type 2011 2010
-------------- ---- ----
Consolidated (4) $12,636,162 $11,155,340
Leased (4) 20,934,867 19,014,397
Joint Ventures-US 39,171,700 30,477,306
Joint Ventures-UK 16,040,958 13,537,715
Managed 68,763,696 63,515,706
Total Properties $157,547,383 $137,700,464
============ ============
Total Properties Net Operating Income 1)
---------------- -----------------------
Six Months Ended
----------------
June 30,
--------
Ownership Type 2011 2010
-------------- ---- ----
Consolidated (4) $22,447,787 $21,553,300
Leased (4) 42,009,190 38,647,548
Joint Ventures-US 73,040,046 56,425,915
Joint Ventures-UK 31,481,094 26,031,731
Managed 131,587,858 123,038,171
Total Properties $300,565,975 $265,696,665
============ ============
Revenue per
Total Properties Occupied Unit
---------------- -------------
Three Months
Ended
-------------
June 30,
--------
Ownership Type 2011 2010
-------------- ---- ----
Consolidated (4) $220.35 $210.89
Leased (4) 167.84 157.51
Joint Ventures-US 229.90 222.51
Joint Ventures-UK 297.42 278.60
Managed 216.81 206.20
Total Properties 216.87 205.56
------ ------
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 where
the single property or all of the
communities in the pool have been open and operating for more than 36
months as of June 30, 2011. This differs from our "comparable
community" definition which
defines comparable at the individual community level as having been
open and operating as of January 1, 2009. All managed communities
are stabilized properties.
3) Lease-up properties are single properties or pools of properties
owned or leased by us or owned by a joint venture where the single
property or any of the
communities in the pool have been open and operating for less than 36
months as of June 30, 2011.
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 7
of the supplemental tables
please refer to a complete reconciliation of net operating income to
income/(loss) from operations.
SOURCE Sunrise Senior Living, Inc.
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