SUNRISE SENIOR LIVING INC - FORM 8-K - EX-99.2 - SUPPLEMENTAL INFORMATION - August 3, 2011

Attached files

file filename
8-K - FORM 8-K - SUNRISE SENIOR LIVING INCd8k.htm
EX-99.1 - PRESS RELEASE ISSUED BY SUNRISE SENIOR LIVING, INC. - SUNRISE SENIOR LIVING INCdex991.htm

Exhibit 99.2

Sunrise Senior Living

Community Data

Consolidated Communities

 

Stabilized Properties 2)

                               Unit Occupancy     Net Operating Income 1)  

Community

    Comm.      Units      Ownership
Interest 		    State/
Province		      Three Months Ended
June 30,		     Six Months Ended
June 30,		     Three Months Ended
June 30,		     Six Months Ended
June 30,		  
              2011     2010     2011     2010     2011      2010     2011     2010  

Connecticut Avenue 4)

      1         100         100.0 %      DC         89.3 %      81.3 %      87.9 %      82.1 %    $ 992,189       $ 767,658      $ 1,884,540      $ 1,459,288   

AL US 6)

      15         1,091         100.0 %      Various         87.5 %      87.4 %      87.5 %      87.3 %      8,082,604         8,071,325        15,666,047        15,734,463   

Other Consolidated 4)

      1         371         0.0 %      NJ         74.0 %      74.6 %      73.6 %      75.5 %      728,010         578,645        1,098,893        1,056,177   

Other Consolidated 4)

      1         137         50.0 %      MD         98.5 %      95.4 %      97.5 %      95.1 %      1,413,922         1,293,284        2,690,629        2,495,227   
  

 

 

     

 

 

          

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Total Stabilized Excluding 3 Condos

      18         1,699              85.6 %      84.9 %      85.3 %      85.1 %      11,216,725         10,710,912        21,340,109        20,745,155   

Other Consolidated 4), 5)

      3         199         100.0 %      Various         101.4 %      97.6 %      102.0 %      97.2 %      401,493         (293,405 )      (462,741 )      (123,544 ) 
  

 

 

     

 

 

          

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Total Stablilized

      21         1,898              87.2 %      86.2 %      87.0 %      86.3 %    $ 11,618,218       $ 10,417,507      $ 20,877,368      $ 20,621,611   
  

 

 

     

 

 

          

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Lease-Up Properties 3)

                               Unit Occupancy     Net Operating Income 1)  

Community

    Comm.      Units      Ownership
Interest 		    State/
Province		      Three Months Ended
June 30,		     Six Months Ended
June 30,		     Three Months Ended
June 30,		     Six Months Ended
June 30,		  
              2011     2010     2011     2010     2011      2010     2011     2010  

Quebec 4),

     3         246         100.0 %      QU         61.9 %      51.6 %      60.1 %      50.2 %    $ 669,725       $ 258,818      $ 925,181      $ 338,261   

Monterey 4)

      1         99         100.0 %      CA         59.5 %      61.1 %      61.1 %      57.5 %      348,219         479,015        645,238        593,428   
  

 

 

     

 

 

          

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Total Lease-Up

      4         345              61.2 %      54.4 %      60.4 %      52.3 %    $ 1,017,944       $ 737,833      $ 1,570,419      $ 931,689   
  

 

 

     

 

 

          

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Total Properties

                               Unit Occupancy     Net Operating Income 1)  
      Comm.      Units      Ownership
Interest 		    State/
Province		      Three Months Ended
June 30,		     Six Months Ended
June 30,		     Three Months Ended
June 30,		     Six Months Ended
June 30,		  

Community

               2011     2010     2011     2010     2011      2010     2011     2010  

Connecticut Avenue 4)

      1         100         100.0 %      DC         89.3 %      81.3 %      87.9 %      82.1 %    $ 992,189       $ 767,658      $ 1,884,540      $ 1,459,288   

AL US 6)

      15         1,091         100.0 %      Various         87.5 %      87.4 %      87.5 %      87.3 %      8,082,604         8,071,325        15,666,047        15,734,463   

Other Consolidated 4)

      1         371         0.0 %      NJ         74.0 %      74.6 %      73.6 %      75.5 %      728,010         578,645        1,098,893        1,056,177   

Other Consolidated 4)

      1         137         50.0 %      MD         98.5 %      95.4 %      97.5 %      95.1 %      1,413,922         1,293,284        2,690,629        2,495,227   

Other Consolidated 4), 5)

      3         199         100.0 %      Various         101.4 %      97.6 %      102.0 %      97.2 %      401,493         (293,405 )      (462,741 )      (123,544 ) 

Quebec 4)

      3         246         100.0 %      QU         61.9 %      51.6 %      60.1 %      50.2 %      669,725         258,818        925,181        338,261   

Monterey 4)

      1         99         100.0 %      CA         59.5 %      61.1 %      61.1 %      57.5 %      348,219         479,015        645,238        593,428   
  

 

 

     

 

 

          

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Total Properties

      25         2,243              83.2 %      81.3 %      82.9 %      81.1 %    $ 12,636,162       $ 11,155,340      $ 22,447,787      $ 21,553,300   
  

 

 

     

 

 

          

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Footnotes:

1) Net operating income from consolidated communities is not reduced by allocated management fees as we eliminate management fees from consolidated 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.
5) Property types are primarily condominium units and not typical Sunrise communities. One of the three communities is also collateral for the liquidating trust.
6) Net operating income is consolidated from June 2, 2011 forward. The portfolio was a joint venture prior to June 2.

Sunrise Senior Living

Community Data

Leased Communities

 

Leased Communities

                       Unit Occupancy     Net Operating Income 1)  
                        Three Months Ended
June 30,		     Six Months Ended
June 30,		     Three Months Ended
June 30,		      Six Months Ended
June 30,		  

Lessor

    Comm.      Units      Country    2011     2010     2011     2010     2011      2010      2011      2010  

HRPT 3)

      14         3,902       US      88.4 %      88.7 %      88.7 %      88.8 %    $ 12,940,026       $ 11,299,794       $ 25,830,380       $ 23,046,317   

HCP 3)

      2         1,055       US      86.7 %      88.6 %      87.4 %      89.5 %      4,342,504         4,878,945         9,376,400         9,960,961   

LTC 3)

      3         186       US      86.2 %      90.1 %      86.2 %      90.6 %      798,869         788,349         1,584,307         1,529,606   

Missouri River Corp. 3)

      2         133       US      85.9 %      85.0 %      85.2 %      84.6 %      462,557         283,280         729,510         656,180   

Oakmont 3)

      3         228       US      91.3 %      88.1 %      92.4 %      87.8 %      1,411,328         1,180,175         2,836,805         2,323,954   

Other 3)

      2         171       US      94.3 %      89.7 %      92.9 %      90.7 %      979,583         583,854         1,651,788         1,130,530   
  

 

 

     

 

 

        

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total Leased

      26         5,675            88.3 %      88.6 %      88.5 %      88.9 %    $ 20,934,867       $ 19,014,397       $ 42,009,190       $ 38,647,548   
  

 

 

     

 

 

        

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Leased Communities

                       Lease Coverage-
Straight-Line Lease
Expense 2)		     Lease Coverage-
Straight-Line Lease
Expense 2)		     Lease Coverage-Cash Lease
Expense 2)		      Lease Coverage-Cash Lease
Expense 2)		  

Lessor

           Current
Lease Term
Expiration 4)		           Three Months Ended
June 30,		     Six Months Ended
June 30,		     Three Months Ended
June 30,		      Six Months Ended
June 30,		  
            2011     2010     2011     2010     2011      2010      2011      2010  

HRPT

         2013            1.56        1.39        1.56        1.41        1.67         1.35         1.67         1.38   

HCP

         2018            1.09        1.22        1.18        1.26        1.10         1.25         1.19         1.29   

LTC

         2018            1.18        1.19        1.18        1.16        1.18         1.19         1.18         1.16   

Missouri River Corp.

         2018            0.99        0.62        0.79        0.72        0.99         0.62         0.79         0.72   

Oakmont

         2012-2013            2.07        1.76        2.09        1.73        2.01         1.71         2.03         1.68   

Other

         2013            2.51        1.50        2.12        1.45        2.40         1.45         2.02         1.41   
           

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total Leased

               1.44        1.33        1.45        1.35        1.50         1.31         1.51         1.34   
           

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Footnotes:

1) Net operating income from leased communities is not reduced by allocated management fees as we eliminate management fees from leased communities.
2) Lease coverage is defined as net operating income divided by lease expense.
3) 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.
4) Lease agreements may include possible lease extensions. For HRPT an extension will require 3rd party approval.

 

2

Sunrise Senior Living

Community Data

Joint Venture Communities

 

Stabilized Properties 5)

                             Unit Occupancy     Net Operating Income of Venture  
                         Ownership
Interest 4)		     Three Months Ended June 30,     Six Months Ended
June 30,		     Three Months Ended
June 30,		     Six Months Ended
June 30,		  

Venture Pool 1)

    Comm.      Units      Country      2011     2010     2011     2010     2011      2010     2011      2010  

Pool 1

      5         434       UK      20.00 %      92.9 %      88.7 %      92.7 %      89.2 %    $ 3,896,445       $ 3,493,707      $ 7,726,155       $ 7,239,620   

Pool 7 3), 7)

      29         2,082       US      40.00 %      87.9 %      86.9 %      88.4 %      86.4 %      12,869,428         10,904,527        24,030,104         20,665,338   

Pool 8

      4         310       US      20.00 %      88.4 %      83.8 %      89.4 %      84.5 %      2,209,664         2,003,734        4,283,585         3,915,606   

Pool 9

      12         872       US      25.00 %      88.8 %      88.9 %      89.6 %      88.5 %      5,038,539         4,611,394        9,530,295         8,795,700   

Pool 10

      2         106       US      25.00 %      85.4 %      88.2 %      85.4 %      87.8 %      310,333         370,972        492,854         651,258   

Pool 11

      2         152       US      30.00 %      90.7 %      84.3 %      90.1 %      83.1 %      1,135,391         842,475        2,071,602         1,463,453   

Pool 13

      1         79       US      20.00 %      95.1 %      98.0 %      96.0 %      98.5 %      696,726         667,907        1,293,564         1,283,923   

Pool 14

      3         219       US      20.00 %      87.9 %      85.9 %      88.0 %      84.5 %      964,350         814,609        1,817,309         1,492,375   

Pool 15 2)

      7         601       US      20%/50%        87.6 %      84.3 %      87.3 %      84.6 %      3,530,640         3,108,670        6,705,753         6,104,992   

Pool 16

      8         621       US      20.00 %      85.9 %      84.0 %      84.5 %      83.2 %      3,175,170         2,693,646        5,924,028         5,076,410   

Pool 24

      6         412       US      10%-50%        88.2 %      88.7 %      88.6 %      89.0 %      2,759,799         2,609,231        5,429,127         5,194,093   
  

 

 

     

 

 

          

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Total JV’s-Stabilized

      79         5,888              88.3 %      86.8 %      88.5 %      86.5 %    $ 36,586,485       $ 32,120,872      $ 69,304,376       $ 61,882,768   
  

 

 

     

 

 

          

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Lease-Up Properties 6)

                             Unit Occupancy     Net Operating Income of Venture  
                         Ownership
Interest 4)		     Three Months Ended
June 30,		     Six Months Ended
June 30,		     Three Months Ended
June 30,		     Six Months Ended
June 30,		  

Venture Pool 1)

    Comm.      Units      Country      2011     2010     2011     2010     2011      2010     2011      2010  

Pool 2

      2         156       UK      9.81 %      93.2 %      81.7 %      92.0 %      78.1 %    $ 1,704,032       $ 1,290,989      $ 3,261,480       $ 2,457,396   

Pool 3

      15         1,243       UK      9.81 %      85.4 %      74.9 %      84.2 %      73.7 %      7,984,683         7,259,011        15,561,633         13,640,759   

Pool 4

      3         237       UK      20.00 %      87.9 %      70.9 %      86.5 %      64.7 %      2,028,498         1,336,037        4,082,502         2,411,731   

Pool 5

      1         81       UK      17.30 %      74.3 %      60.1 %      70.1 %      56.3 %      198,276         110,254        301,462         132,637   

Pool 6

      1         114       UK      17.30 %      79.7 %      54.5 %      78.0 %      52.2 %      229,024         47,717        547,861         149,587   

Pool 17

      3         229       US      20.00 %      81.0 %      71.4 %      80.5 %      69.6 %      809,603         424,786        1,442,136         785,788   

Pool 18

      4         348       US      20.00 %      67.4 %      50.2 %      67.2 %      44.6 %      1,297,676         237,864        2,393,387         (81,799 ) 

Pool 19

      3         295       US      20.00 %      77.5 %      57.0 %      76.3 %      54.8 %      845,789         462,354        1,598,907         650,248   

Pool 20

      6         598       US      20.00 %      68.3 %      51.7 %      66.4 %      48.6 %      2,030,060         736,860        3,605,562         763,754   

Pool 21

      2         222       US      20.00 %      65.7 %      40.1 %      60.7 %      36.0 %      672,387         (73,140 )      942,563         (552,487 ) 

Pool 22

      1         76       US      20.00 %      88.8 %      77.1 %      90.7 %      76.8 %      512,752         295,737        940,251         573,069   

Pool 23 8)

      1         323       US      30.00 %      45.4 %      38.7 %      44.7 %      38.3 %      313,393         (234,320 )      539,019         (355,806 ) 
  

 

 

     

 

 

          

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Total JV’s-Lease Up

      42         3,922              76.1 %      61.8 %      74.7 %      59.3 %    $ 18,626,173       $ 11,894,149      $ 35,216,763       $ 20,574,877   
  

 

 

     

 

 

          

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Total Properties

                             Unit Occupancy     Net Operating Income of Venture  
                        Ownership
Interest 4)		     Three Months Ended
June 30,		     Six Months Ended
June 30,		     Three Months Ended
June 30,		     Six Months Ended
June 30,		  

Venture Pool 1)

    Comm.      Units      Country      2011     2010     2011     2010     2011      2010     2011      2010  

Pool 1

      5         434       UK      20.00 %      92.9 %      88.7 %      92.7 %      89.2 %    $ 3,896,445       $ 3,493,707      $ 7,726,155       $ 7,239,620   

Pool 2

      2         156       UK      9.81 %      93.2 %      81.7 %      92.0 %      78.1 %      1,704,032         1,290,989        3,261,480         2,457,396   

Pool 3

      15         1,243       UK      9.81 %      85.4 %      74.9 %      84.2 %      73.7 %      7,984,683         7,259,011        15,561,633         13,640,759   

Pool 4

      3         237       UK      20.00 %      87.9 %      70.9 %      86.5 %      64.7 %      2,028,498         1,336,037        4,082,502         2,411,731   

Pool 5

      1         81       UK      17.30 %      74.3 %      60.1 %      70.1 %      56.3 %      198,276         110,254        301,462         132,637   

Pool 6

      1         114       UK      17.30 %      79.7 %      54.5 %      78.0 %      52.2 %      229,024         47,717        547,861         149,587   

Pool 7 3), 7)

      29         2,082       US      40.00 %      87.9 %      86.9 %      88.4 %      86.4 %      12,869,428         10,904,527        24,030,104         20,665,338   

Pool 8

      4         310       US      20.00 %      88.4 %      83.8 %      89.4 %      84.5 %      2,209,664         2,003,734        4,283,585         3,915,606   

Pool 9

      12         872       US      25.00 %      88.8 %      88.9 %      89.6 %      88.5 %      5,038,539         4,611,394        9,530,295         8,795,700   

Pool 10

      2         106       US      25.00 %      85.4 %      88.2 %      85.4 %      87.8 %      310,333         370,972        492,854         651,258   

Pool 11

      2         152       US      30.00 %      90.7 %      84.3 %      90.1 %      83.1 %      1,135,391         842,475        2,071,602         1,463,453   

Pool 13

      1         79       US      20.00 %      95.1 %      98.0 %      96.0 %      98.5 %      696,726         667,907        1,293,564         1,283,923   

Pool 14

      3         219       US      20.00 %      87.9 %      85.9 %      88.0 %      84.5 %      964,350         814,609        1,817,309         1,492,375   

Pool 15 2)

      7         601       US      20%/50%        87.6 %      84.3 %      87.3 %      84.6 %      3,530,640         3,108,670        6,705,753         6,104,992   

Pool 16

      8         621       US      20.00 %      85.9 %      84.0 %      84.5 %      83.2 %      3,175,170         2,693,646        5,924,028         5,076,410   

Pool 17

      3         229       US      20.00 %      81.0 %      71.4 %      80.5 %      69.6 %      809,603         424,786        1,442,136         785,788   

Pool 18

      4         348       US      20.00 %      67.4 %      50.2 %      67.2 %      44.6 %      1,297,676         237,864        2,393,387         (81,799 ) 

Pool 19

      3         295       US      20.00 %      77.5 %      57.0 %      76.3 %      54.8 %      845,789         462,354        1,598,907         650,248   

Pool 20

      6         598       US      20.00 %      68.3 %      51.7 %      66.4 %      48.6 %      2,030,060         736,860        3,605,562         763,754   

Pool 21

      2         222       US      20.00 %      65.7 %      40.1 %      60.7 %      36.0 %      672,387         (73,140 )      942,563         (552,487 ) 

Pool 22

      1         76       US      20.00 %      88.8 %      77.1 %      90.7 %      76.8 %      512,752         295,737        940,251         573,069   

Pool 23 8)

      1         323       US      30.00 %      45.4 %      38.7 %      44.7 %      38.3 %      313,393         (234,320 )      539,019         (355,806 ) 

Pool 24

      6         412       US      10%-50%        88.2 %      88.7 %      88.6 %      89.0 %      2,759,799         2,609,231        5,429,127         5,194,093   
  

 

 

     

 

 

          

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Total Joint Ventures

      121         9,810              83.4 %      76.8 %      83.0 %      75.6 %    $ 55,212,658       $ 44,015,021      $ 104,521,139       $ 82,457,645   
  

 

 

     

 

 

          

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Footnotes:

1) Legal names of the venture and partner are omitted due to possible confidentiality concerns in the governing documents. Venture pools represent pools of properties owned by a joint venture that were financed together as a distinct loan pool, other than pool 24 which is an amalgamation of six single property joint ventures.
2) We own a 50% interest in Tenant LP; however, our economic ownership in the venture is 20% interest in Venture LP.
3) In January 2011, we increased our ownership percentage from 10% to 40% and the venture was recapitalized. Operating results include the results from 6 New York entities that are leased and operated by Sunrise but owned by the venture.
4) In certain situations, our share of cash distributions, profits or losses, are not equal to our ownership percentage.
5) 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.
6) 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.
7) The venture net operating income reflects a 7% management fee expense for quarter and year to date 2010 and a 5% management fee expense for quarter and year to date 2011.
8) Unit count includes 240 condo units associated with pool 25, however, NOI and occupancy only reflects the assisted living component of this venture.

 

3

Sunrise Senior Living

Community Data

Management Contracts

 

Joint Venture Communities

                            Management Fees 2)  
                        Average
Maturity  Date		    Three Months Ended
June 30,		      Six Months Ended
June 30,		  

Venture Pool 1)

    Comm.      Units      Country       2011      2010      2011      2010  

Pool 1 3)

      5         434       UK    2028    $ 800,286       $ 750,226       $ 1,570,535       $ 1,563,677   

Pool 2

      2         156       UK    2037      325,779         249,226         627,671         401,494   

Pool 3

      15         1,243       UK    2037      1,908,902         1,611,879         3,712,190         3,253,391   

Pool 4

      3         237       UK    2024      310,168         211,642         597,360         453,640   

Pool 5

      1         81       UK    2039      96,683         104,053         210,255         210,383   

Pool 6

      1         114       UK    2039      166,784         105,462         354,655         209,062   

Pool 7 7)

      29         2,082       US    2028      1,418,998         2,384,303         2,933,963         4,705,215   

Pool 8

      4         310       US    2032      440,823         410,406         880,145         821,691   

Pool 9 5)

      12         872       US    2030      1,106,141         1,064,157         2,204,518         2,104,306   

Pool 10

      2         106       US    2037      95,178         114,372         186,349         230,264   

Pool 11

      2         152       US    2038      153,371         133,529         297,952         258,919   

Pool 13

      1         79       US    2037      78,091         111,891         208,643         213,679   

Pool 14

      3         219       US    2037      159,095         213,049         425,970         404,607   

Pool 15

      7         601       US    2030      732,408         677,974         1,443,010         1,360,127   

Pool 16 3)

      8         621       US    2030      719,696         310,833         1,397,175         968,332   

Pool 17 3)

      3         229       US    2030      242,823         198,044         476,217         388,353   

Pool 18

      4         348       US    2037      358,739         317,199         637,042         627,410   

Pool 19 6)

      3         295       US    2037      256,683         231,066         509,169         456,215   

Pool 20

      6         598       US    2037      630,457         524,803         1,238,440         1,005,493   

Pool 21

      2         222       US    2038      188,410         166,500         365,280         326,082   

Pool 22

      1         76       US    2038      109,140         88,939         216,465         185,870   

Pool 23 & Pool 25 9)

      1         323       US    2034      —           —           —           —     

Pool 24

      6         412       US    Various      494,344         487,499         995,949         971,822   
  

 

 

     

 

 

           

 

 

     

 

 

     

 

 

     

 

 

  

Total Joint Ventures

      121         9,810             $ 10,792,999       $ 10,467,052       $ 21,488,953       $ 21,120,032   
  

 

 

     

 

 

           

 

 

     

 

 

     

 

 

     

 

 

  

Managed Communities

                            Management Fees 2)  
                        Average
Maturity Date		    Three Months Ended
June 30,		      Six Months Ended
June 30,		  

Owner

    Comm.      Units      Country       2011      2010      2011      2010  

Care Institute

      2         209       US    2011    $ 163,481       $ 159,064       $ 316,963       $ 310,129   

Cooperative

      2         684       US    2012 and 2034      635,328         613,576         1,264,605         1,258,029   

HCPI 8)

      46         4,513       US    2028-2038      4,675,473         4,151,096         8,818,355         7,981,476   

Inova

      4         313       US    2013      371,105         354,676         847,312         708,511   

Live Oaks Living Ctrs 11)

      2         92       US    2021      75,263         75,699         150,127         153,066   

Ventas 4)

      79         6,507       US    2034-2037      5,771,868         2,556,899         11,357,915         7,950,545   

Wedum Foundation

      4         235       US    2013      235,640         238,744         478,682         477,487   

Other

      5         681       US    Various      578,152         484,045         1,148,951         987,388   
  

 

 

     

 

 

           

 

 

     

 

 

     

 

 

     

 

 

  

Total Managed

      144         13,234             $ 12,506,310       $ 8,633,799       $ 24,382,910       $ 19,826,631   
  

 

 

     

 

 

           

 

 

     

 

 

     

 

 

     

 

 

  

Total JV and Managed Communities

      265         23,044             $ 23,299,309       $ 19,100,851       $ 45,871,863       $ 40,946,663   
  

 

 

     

 

 

           

 

 

     

 

 

     

 

 

     

 

 

  

Other/Terminated Management Fees 10)

                $ 1,100,879       $ 5,062,462       $ 2,742,160       $ 11,823,366   
              

 

 

     

 

 

     

 

 

     

 

 

  

Total Management Fees

                $ 24,400,188       $ 24,163,313       $ 48,614,023       $ 52,770,029   
              

 

 

     

 

 

     

 

 

     

 

 

  

Footnotes:

1) Legal names of the venture and partner are omitted due to possible confidentiality concerns in the governing documents. Venture pools represent pools of properties owned by a joint venture that were financed together as a distinct loan pool, other than pool 24 which is an amalgamation of six single property joint ventures.
2) The majority of our management contracts contain performance based termination tests with cure rights.
3) Sunrise made a cure payment to this venture related to community financial performance.
4) Sunrise entered into amended and restated master and management agreements governing these communities effective as of December 1, 2010.
5) Contracts contain at-will termination provisions for a specified fee to Sunrise.
6) Current fee partially subordinated due to lender related financial covenants.
7) In January 2011, as part of the recapitalization of the venture our management contract was amended, restated and extended to 2041.
8) The contracts relating to one portfolio of 14 properties contain at-will termination provisions for a specified fee to Sunrise.
9) No management fees are associated with this venture as these fees are eliminated due to accounting for this venture under the profit sharing method.
10) Includes $0.9 million and $2.4 million, respectively, for the three months and six months ended June 30, 2011 from the previous AL US venture.
11) These contracts were terminated in July, 2011 in connection with the sale of the facilities by the owner for a fee.

 

4

Sunrise Senior Living

Consolidated and Joint Venture Debt

Scheduled Debt Maturities as of June 30, 2011

 

(dollars in thousands)                                           

Consolidated Debt

                                           

Consolidated Communities

    Ownership
Percentage		     Number of
Communities		      Maturity
Date 6)		    Weighted Aver.
Interest Rate		     Outstanding
Debt		      In
Default		      SRZ
Guaranty

AL US Development Portfolio

      100.00 %      15       Jun 15      4.24 %    $ 325,376       $ —         N

Connecticut Ave

     100.00 %      1       Jun 12      4.87 %      27,911         —         Y

Monterey

      100.00 %      1       Jun 13      3.50 %      21,021         —         N

Quebec 7)

      100.00 %      3       Apr 11      4.75 %      47,936         47,936       Y

Cedar Parke

      0.00 %      1       Jul 29      0.58 %      22,145         1,365       Y
    

 

 

          

 

 

     

 

 

     

Consolidated Community Debt

        21            $ 444,389       $ 49,301      
    

 

 

          

 

 

     

 

 

     

Convertible Notes

      100.00 %      0       Apr 41      5.00 %    $ 86,250       $ —         Y

Restructure Note

      100.00 %      0       Oct 12      0.00 %      29,846         —         Y

Restructure Note

      100.00 %      0       Apr 14      0.00 %      4,975         —         Y
    

 

 

          

 

 

     

 

 

     

Other Consolidated Debt

        0            $ 121,071       $ —        
    

 

 

          

 

 

     

 

 

     

Total Consolidated Debt

        21            $ 565,460       $ 49,301      
    

 

 

          

 

 

     

 

 

     
Joint Venture Entities                                           

Venture Pool 1)

    Ownership
Percentage  4)		     Number of
Communities		      Maturity Date 6)    Weighted Aver.
Interest Rate		     Outstanding
Debt		      In Default      SRZ
Guaranty

Pool 1

      20.00 %      5       May 13      4.64 %    $ 137,111         —         N

Pool 2

      9.81 %      2       Jan 15      5.13 %      60,066         —         N

Pool 3 10)

      9.81 %      15       Jul 14      3.41 %      643,714         —         N

Pool 4

      20.00 %      3       Nov 2012 -Jun 2013      2.43 %      93,882         —         Y

Pool 5

      17.30 %      1       Dec 12      2.13 %      30,253         30,253       Y

Pool 6

      17.30 %      1       Apr 13      3.88 %      43,065         —         Y

Pool 7 3)

      40.00 %      29       Feb 14      6.76 %      435,000         —         N

Pool 8

      20.00 %      4       Apr 14      5.89 %      76,627         —         N

Pool 9

      25.00 %      12       Jan 14      6.00 %      184,480         —         N

Pool 10

      25.00 %      2       May 13      7.25 %      9,156         1,545       N

Pool 11

      30.00 %      2       Mar 13      5.23 %      35,864         —         N

Pool 13

      20.00 %      1       Mar 12      4.25 %      13,766         —         Y

Pool 14

      20.00 %      3       Dec 11      3.50 %      45,641         —         Y

Pool 15 2)

      20 %/50%      7       Oct 11      6.25 %      100,951         —         N

Pool 16

      20.00 %      8       Dec 11      6.50 %      110,850         —         Y

Pool 17

      20.00 %      3       Dec 12      6.50 %      41,964         —         Y

Pool 18

      20.00 %      4       Dec 2011 -Jul 2012      3.25 %      76,244         —         Y

Pool 19

      20.00 %      3       Sep 10      5.00 %      65,813         65,813       Y

Pool 20 8)

      20.00 %      6       Apr 11      9.58 %      133,249         133,249       Y

Pool 21 11)

      20.00 %      2       Oct 11      5.75 %      56,666         56,666       Y

Pool 22

      20.00 %      1       Dec 11      6.00 %      14,561         —         Y

Pool 23 5)

      30.00 %      1       Dec 11      5.69 %      30,117         30,117       Y

Pool 24

      10 %-50%      6       Dec 2011 -Jan 2020      6.29 %      59,016         —         N

Pool 25

      30.00 %      0       Dec 11      3.40 %      116,355         —         Y
    

 

 

          

 

 

     

 

 

     

Total Joint Ventures 9)

        121            $ 2,614,411       $ 317,643      
    

 

 

          

 

 

     

 

 

     

Footnotes:

1) Legal names of the venture and partner are omitted due to possible confidentiality concerns in the governing documents. Venture pools represent pools of properties owned by a joint venture that were financed together as a distinct loan pool, other than pool 24 which is an amalgamation of six single property joint ventures.
2) We own a 50% interest in Tenant LP; however, our economic ownership in the venture is 20% interest in Venture LP.
3) In January 2011, we increased our ownership percentage from 10% to 40% and the venture was recapitalized.
4) In certain situations, our respective percentage shares of cash distributions, profits or losses, are not equal to our ownership percentage.
5) Outstanding debt includes default interest that is accruing, but remains unpaid.
6) Maturity dates assume exercising extensions allowable under the loan documents.
7) Three communities in Canada that are wholly owned have been slow to lease up. The outstanding loan balance relating to these communities is non-recourse to us but we have provided operating deficit guarantees to the lender. We are not currently funding under these operating deficit guarantees. The principal balance of $47.9 million was due on April 30, 2011. We are in discussions with the lender and are working toward implementing a revised business plan at the communities and obtaining a loan extension. If we are unable to extend the mortgage, it may have an adverse impact on our financial condition, cash flows and results of operations.
8) On August 2, 2011, we and our 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 us. As part of our new venture agreement with CNL Sub, from the start of year four to the end of year six, we 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, we contributed $8.1 million and CNL Sub contributed $19.0 million to the new venture.
9) Sunrise’s share of joint venture debt as of June 30, 2011 is $567 million.
10) The venture’s mortgage loan includes loan to value and debt service covenants, and it is uncertain whether the venture will continue to be in compliance with these covenants. The mortgage loan balance was $643.7 million as of June 30, 2011. The loan is collateralized by 15 communities owned by the venture located in the United Kingdom. If the venture breaches the loan to value and/or debt service covenants and the default is not cured, the lender has rights which include foreclosure and/or termination of our management agreement. During the six months ended June 30, 2011, we recognized $3.7 million in management fees from this venture. Our United Kingdom Management segment reported $2.6 million in income from operations for the six months ended June 30, 2011. Our investment balance in this venture was zero at June 30, 2011.
11) The debt default was cured and the maturity date extended to October 2012 subsequent to June 30, 2011.

 

5

SUNRISE SENIOR LIVING, INC.

Reconciliation For Consolidated Net Operating Income

Consolidated Net Operating Income

Net operating income is a measure of operating performance that is 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. Management considers net operating income to be a useful measure in analyzing our community operating income without regard to management fees and other adjustments.

The following table reconciles net operating income from consolidated communities to loss from operations.

(in thousands)

 

     Three Months Ended     Six Months Ended  
     June 30,     June 30,  
     2011     2010     2011     2010  

Consolidated Community NOI

    $ 12,636      $ 11,155      $ 22,448      $ 21,553   

Leased Community NOI

      20,935        19,014        42,009        38,648   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total Consolidated NOI

      33,571        30,170        64,457        60,201   

Less: AL US NOI (during period the venture was not consolidated)

      (6,097 )      (8,071 )      (13,681 )      (15,734 ) 

Plus: NOI from Consolidated New York communities leased from a venture (NOI is reflected in Joint Venture loan pool analysis)

      4,268        —          8,290        —     
  

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted Total Consolidated NOI

      31,742        22,098        59,066        44,467   

Less: Consolidated Community Lease Expense (includes $4.2 million and $8.1 million, respectively, for the three months ended and six month ended of lease expense from consolidated New York communities leased from a venture)

      19,108        14,896        37,805        29,639   

Less: Depreciation and Amortization

      8,786        8,591        16,203        17,035   

Less: Impairment of long-lived assets

      5,355        2,659        5,355        3,359   
  

 

 

    

 

 

    

 

 

    

 

 

  
   $ (1,507 )    $ (4,048 )    $ (297 )    $ (5,566 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Plus: Other Sunrise Revenue

         

Management fees

      24,400        24,163        48,614        52,770   

Buyout fees

      —          12,717        —          13,471   

Ancillary fees

      7,513        10,829        15,110        21,422   

Professional fees from development, marketing and other

      522        590        845        2,692   

Reimbursed costs incurred on behalf of managed communities

      178,265        211,768        364,130        436,093   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total Other Revenue

      210,700        260,067        428,699        526,448   

Less: Other Sunrise Expense

         

Ancillary expenses

      6,968        10,146        13,972        19,946   

General and administrative

      27,564        28,321        59,953        61,615   

Carrying costs of liquidating trust assets

      635        614        1,042        1,239   

Accounting Restatement, Special Independent Committee inquiry, SEC investigation and stockholder litigation

      —          301        —          359   

Restructuring costs

      —          5,209        —          9,824   

Allowance for uncollectible receivables from owners

      (205 )      550        892        1,470   

Loss on financial guarantees and other contracts

      (12 )      310        (12 )      310   

Costs incurred on behalf of managed communities

      179,294        210,775        365,678        435,141   

Misc. Expense for Non-Operating Communities

      21        (25 )      26        285   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total Other Expense

      214,265        256,201        441,551        530,189   
  

 

 

    

 

 

    

 

 

    

 

 

  

Loss from operations

    $ (5,072 )    $ (182 )    $ (13,149 )    $ (9,307 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

 

6

Sunrise Senior Living, Inc.

Supplemental Information

As of June, 30, 2011

($ in thousands except average daily revenues)

 

     Communities
June 30, 2011		      Unit Capacity
June 30, 2011		     Resident Capacity
June 30, 2011		  

Total Community Data (1,2)

        

Communities managed for third-party owners

      144         13,234        15,128   

Communities in ventures

      121         9,810        11,443   

Communities consolidated

      51         7,918        8,312   
  

 

 

     

 

 

    

 

 

  

Total communities operated

      316         30,962        34,883   
  

 

 

     

 

 

    

 

 

  

Percentage of Total Operating Portfolio

        

Assisted Living

         80.9 %   

Independent Living

         16.1 %   

Skilled Nursing

         3.0 %   
     

 

 

    

Total

         100.0 %   
     

 

 

    

Selected Operating Results

 

      QTD     QTD            

Comparable Community Portfolio Operating Results (3,4)

    June 30, 2011     June 30, 2010     % Change      

Total Comparable-Community Portfolio

         

Number of Communities

      293        293        0.0 %   

Unit Capacity

      28,633        28,633        0.0 %   

Resident Capacity

      32,232        32,232        0.0 %   

Community Revenues

    $ 489,972      $ 459,439        6.6 %   

Community Revenues Excluding Impact of Exchange Rates

    $ 484,931      $ 459,439        5.5 %   

Community Operating Expenses

    $ 345,696      $ 329,788        -4.8 %   

Community Operating Expenses Excluding Impact of Exchange Rates

    $ 341,870      $ 329,788        -3.7 %   

Average Daily Revenue Per Occupied Unit

    $ 214.37      $ 203.54        5.3 %   

Average Daily Revenue Per Occupied Unit Excluding Impact of Exchange Rates

    $ 212.15      $ 203.54        4.2 %   

Average Unit Occupancy Rate

      87.4 %      86.3 %      110      basis points

Communities in ventures and managed for third-party owners

         

Number of Communities

      243        243        0.0 %   

Unit Capacity

      20,814        20,814        0.0 %   

Resident Capacity

      24,032        24,032        0.0 %   

Community Revenues

    $ 375,696      $ 352,285        6.6 %   

Community Revenues Excluding Impact of Exchange Rates

    $ 370,852      $ 352,285        5.3 %   

Community Operating Expenses

    $ 260,744      $ 248,558        -4.9 %   

Community Operating Expenses Excluding Impact of Exchange Rates

    $ 257,092      $ 248,558        -3.4 %   

Average Daily Revenue Per Occupied Unit

    $ 226.69      $ 215.86        5.0 %   

Average Daily Revenue Per Occupied Unit Excluding Impact of Exchange Rates

    $ 223.77      $ 215.86        3.7 %   

Average Unit Occupancy Rate

      87.4 %      86.1 %      130      basis points

Communities consolidated

         

Number of Communities

      50        50        0.0 %   

Unit Capacity

      7,819        7,819        0.0 %   

Resident Capacity

      8,200        8,200        0.0 %   

Community Revenues

    $ 114,275      $ 107,154        6.6 %   

Community Revenues Excluding Impact of Exchange Rates

    $ 114,079      $ 107,154        6.5 %   

Community Operating Expenses

    $ 84,952      $ 81,231        -4.6 %   

Community Operating Expenses Excluding Impact of Exchange Rates

    $ 84,778      $ 81,231        -4.4 %   

Average Daily Revenue Per Occupied Unit

    $ 181.46      $ 171.02        6.1 %   

Average Daily Revenue Per Occupied Unit Excluding Impact of Exchange Rates

    $ 181.14      $ 171.02        5.9 %   

Average Unit Occupancy Rate

      87.2 %      86.9 %      30      basis points

Notes

(1) During the fourth quarter of 2009, Sunrise opened five venture communities and sold or disposed of one joint ventture community. Additionally, Sunrise transitioned 16 joint venture communities to managed. There were also 21 consolidated communities sold or disposed.
(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.

 

7

Sunrise Senior Living, Inc.

Supplemental Information

As of June, 30, 2011

($ in thousands except average daily revenues)

 

     Communities
June 30, 2011		      Unit Capacity
June 30, 2011		     Resident Capacity
June 30, 2011		  

Total Community Data (1,2)

        

Communities managed for third-party owners

      144         13,234        15,128   

Communities in ventures

      121         9,810        11,443   

Communities consolidated

      51         7,918        8,312   
  

 

 

     

 

 

    

 

 

  

Total communities operated

      316         30,962        34,883   
  

 

 

     

 

 

    

 

 

  

Percentage of Total Operating Portfolio

        

Assisted Living

         80.9 %   

Independent Living

         16.1 %   

Skilled Nursing

         3.0 %   
     

 

 

    

Total

         100.0 %   
     

 

 

    

Selected Operating Results

 

      QTD     QTD            

All Community Portfolio Operating Results (3,4)

    June 30, 2011     June 30, 2010     % Change      

Total Community Portfolio

         

Number of Communities

      316        316        0.0 %   

Unit Capacity

      30,962        30,962        0.0 %   

Resident Capacity

      34,883        34,883        0.0 %   

Community Revenues

    $ 527,414      $ 487,293        8.2 %   

Community Revenues Excluding Impact of Exchange Rates

    $ 521,082      $ 487,293        6.9 %   

Community Operating Expenses

    $ 373,862      $ 353,456        -5.8 %   

Community Operating Expenses Excluding Impact of Exchange Rates

    $ 369,047      $ 353,456        -4.4 %   

Average Daily Revenue Per Occupied Unit

    $ 216.87      $ 205.56        5.5 %   

Average Daily Revenue Per Occupied Unit Excluding Impact of Exchange Rates

    $ 214.26      $ 205.56        4.2 %   

Average Unit Occupancy Rate

      86.0 %      83.8 %      220      basis points

Communities in ventures and managed for third-party owners

         

Number of Communities

      265        265        0.0 %   

Unit Capacity

      23,044        23,044        0.0 %   

Resident Capacity

      26,571        26,571        0.0 %   

Community Revenues

    $ 411,767      $ 378,757        8.7 %   

Community Revenues Excluding Impact of Exchange Rates

    $ 405,632      $ 378,757        7.1 %   

Community Operating Expenses

    $ 287,791      $ 271,226        -6.1 %   

Community Operating Expenses Excluding Impact of Exchange Rates

    $ 283,150      $ 271,226        -4.4 %   

Average Daily Revenue Per Occupied Unit

    $ 228.97      $ 217.69        5.2 %   

Average Daily Revenue Per Occupied Unit Excluding Impact of Exchange Rates

    $ 225.56      $ 217.69        3.6 %   

Average Unit Occupancy Rate

      85.7 %      82.9 %      280      basis points

Communities consolidated

         

Number of Communities

      51        51        0.0 %   

Unit Capacity

      7,918        7,918        0.0 %   

Resident Capacity

      8,312        8,312        0.0 %   

Community Revenues

    $ 115,647      $ 108,537        6.6 %   

Community Revenues Excluding Impact of Exchange Rates

    $ 115,450      $ 108,537        6.4 %   

Community Operating Expenses

    $ 86,071      $ 82,230        -4.7 %   

Community Operating Expenses Excluding Impact of Exchange Rates

    $ 85,898      $ 82,230        -4.5 %   

Average Daily Revenue Per Occupied Unit

    $ 182.10      $ 171.72        6.0 %   

Average Daily Revenue Per Occupied Unit Excluding Impact of Exchange Rates

    $ 181.79      $ 171.72        5.9 %   

Average Unit Occupancy Rate

      86.8 %      86.5 %      30      basis points

Notes

(1) During the fourth quarter of 2009, Sunrise opened five venture communities and sold or disposed of one joint ventture community. Additionally, Sunrise transitioned 16 joint venture communities to managed. There were also 21 consolidated communities sold or disposed.
(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.

 

8

Stock widget

Investing forum

SUNRISE SENIOR LIVING INC Reports