SUNRISE SENIOR LIVING INC - FORM 8-K - EX-99.2 - SUPPLEMENTAL INFORMATION - May 6, 2011

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Exhibit 99.2

Sunrise Senior Living

Community Data

Ownership Type

 

Stabilized Properties 2)

                  Unit Occupancy     Net Operating Income 1)      Revenue per Occupied Unit  
                   Three Months Ended     Three Months Ended      Three Months Ended  
                   March 31,     March 31,      March 31,  

Ownership Type

    Comm.      Units      2011     2010     2011      2010      2011      2010  

Consolidated 5)

      6         807         86.0 %      85.3 %    $ 2,236,816       $ 2,479,161       $ 175.73       $ 174.08   

Leased 5)

      26         5,675         88.8 %      89.2 %      21,074,324         19,633,147         168.04         158.44   

Joint Ventures-US

      79         5,791         88.6 %      86.7 %      31,416,138         29,398,215         233.35         227.54   

Joint Ventures-UK

      5         434         92.5 %      89.7 %      3,829,709         3,745,915         304.70         302.24   

Managed

      144         13,238         87.9 %      87.3 %      62,824,158         59,522,467         213.78         206.22   
                                                                     

Total Stabilized

      260         25,945         88.3 %      87.6 %    $ 121,381,145       $ 114,778,905         208.54         200.96   
                                                                     

Lease-Up Properties 3)

                  Unit Occupancy     Net Operating Income 1)      Revenue per Occupied Unit  
                   Three Months Ended     Three Months Ended      Three Months Ended  
                   March 31,     March 31,      March 31,  

Ownership Type

    Comm.      Units      2011     2010     2011      2010      2011      2010  

Consolidated 4), 5)

      4         345         59.5 %      50.3 %    $ 552,474       $ 193,856       $ 238.47       $ 226.63   

Joint Ventures-US

      31         2,931         70.5 %      56.7 %      8,581,982         2,993,156         215.29         210.14   

Joint Ventures-UK

      22         1,831         82.8 %      68.6 %      11,610,429         8,748,106         291.88         288.57   
                                                                     

Total Lease Up

      57         5,107         74.2 %      60.5 %    $ 20,744,885       $ 11,935,118         247.19         242.92   
                                                                     

Total Properties

                  Unit Occupancy     Net Operating Income 1)      Revenue per Occupied Unit  
                   Three Months Ended     Three Months Ended      Three Months Ended  
                   March 31,     March 31,      March 31,  

Ownership Type

    Comm.      Units      2011     2010     2011      2010      2011      2010  

Consolidated 4), 5)

      10         1,152         78.1 %      74.8 %    $ 2,789,290       $ 2,673,017       $ 190.05       $ 184.66   

Leased 5)

     26         5,675         88.8 %      89.2 %      21,074,324         19,633,147         168.04         158.44   

Joint Ventures-US

      110         8,722         82.6 %      76.6 %      39,998,120         32,391,371         228.16         223.21   

Joint Ventures-UK

      27         2,265         84.6 %      72.6 %      15,440,138         12,494,021         294.57         291.81   

Managed

      144         13,238         87.9 %      87.3 %      62,824,158         59,522,467         213.78         206.22   
                                                                     

Total Properties

      317         31,052         85.9 %      83.1 %    $ 142,126,030       $ 126,714,023         214.02         205.98   
                                                                     

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 March 31, 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 March 31, 2011.
4) Includes 3 properties that were being marketed for sale at quarter end totaling 246 units that contributed $0.3 million of NOI in Q1 2011 and $0.1 million of NOI in Q1 2010.
5) 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.

 

1

Sunrise Senior Living

Community Data

Consolidated Communities

 

Stabilized Properties 2)

                               Unit Occupancy     Net Operating Income 1)  
                                Three Months Ended     Three Months Ended  
                   Ownership     State/      March 31,     March 31,  

Community

    Comm.      Units      Interest     Province      2011     2010     2011     2010  

Connecticut Avenue 4)

      1         100         100.0 %      DC         86.5 %      82.9 %    $ 892,350      $ 691,630   

Other Consolidated 4)

      3         199         100.0 %      Various         102.5 %      96.8 %      (259,253 )      169,861   

Other Consolidated 4)

      1         371         0.0 %      NJ         73.2 %      76.3 %      327,012        415,727   

Other Consolidated 4)

      1         137         50.0 %      MD         96.6 %      94.9 %      1,276,707        1,201,943   
                                                       

Total Stablilized

      6         807              86.0 %      85.3 %    $ 2,236,816      $ 2,479,161   
                                                       

Lease-Up Properties 3)

                               Unit Occupancy     Net Operating Income 1)  
                                Three Months Ended     Three Months Ended  
                   Ownership     State/      March 31,     March 31,  

Community

    Comm.      Units      Interest     Province      2011     2010     2011     2010  

Quebec 4), 5)

      3         246         100.0 %      QU         58.3 %      48.8 %    $ 255,456      $ 79,443   

Monterey 4)

      1         99         100.0 %      CA         62.7 %      54.0 %      297,018        114,413   
                                                       

Total Lease-Up

      4         345              59.5 %      50.3 %    $ 552,474      $ 193,856   
                                                       

Total Properties

                               Unit Occupancy     Net Operating Income 1)  
                                Three Months Ended     Three Months Ended  
                   Ownership     State/      March 31,     March 31,  

Community

    Comm.      Units      Interest     Province      2011     2010     2011     2010  

Connecticut Avenue 4)

      1         100         100.0 %      DC         86.5 %      82.9 %    $ 892,350      $ 691,630   

Other Consolidated 4)

      3         199         100.0 %      Various         102.5 %      96.8 %      (259,253 )      169,861   

Other Consolidated 4)

      1         371         0.0 %      NJ         73.2 %      76.3 %      327,012        415,727   

Other Consolidated 4)

      1         137         50.0 %      MD         96.6 %      94.9 %      1,276,707        1,201,943   

Quebec 4), 5)

      3         246         100.0 %      QU         58.3 %      48.8 %      255,456        79,443   

Monterey 4)

      1         99         100.0 %      CA         62.7 %      54.0 %      297,018        114,413   
                                                       

Total Properties

      10         1,152              78.1 %      74.8 %    $ 2,789,290      $ 2,673,017   
                                                       

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 March 31, 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 March 31, 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) Includes 3 properties that were being marketed for sale at quarter end totaling 246 units that contributed $.3 million of NOI in Q1 2011 and $.1 million of NOI in Q1 2010.

 

2

Sunrise Senior Living

Community Data

Leased Communities

 

Leased Communities

                         Unit Occupancy     Net Operating Income 1)  
                          Three Months Ended
March 31,		     Three Months Ended
March 31,		  

Lessor

    Comm.      Units      Country      2011     2010     2011      2010  

HRPT 3)

      14         3,902         US         88.9 %      89.0 %    $ 12,890,357       $ 11,746,520   

HCP 3)

      2         1,055         US         88.1 %      90.5 %      5,033,896         5,082,017   

LTC 3)

      3         186         US         86.3 %      91.1 %      785,437         741,256   

Missouri River Corp. 3)

      2         133         US         84.5 %      84.2 %      266,952         372,900   

Oakmont 3)

      3         228         US         93.6 %      87.6 %      1,425,477         1,143,778   

Other 3)

      2         171         US         91.5 %      91.8 %      672,205         546,676   
                                                      

Total Leased

      26         5,675            88.8 %      89.2 %    $ 21,074,324       $ 19,633,147   
                                                      

Leased Communities

                         Lease Coverage-
Straight-Line Lease
Expense 2)		     Lease Coverage-Cash Lease
Expense 2)		  
            Current             Three Months Ended     Three Months Ended  
            Lease Term             March 31,     March 31,  

Lessor

           Expiration  4)             2011     2010     2011      2010  

HRPT

         2013            1.56        1.44        1.67         1.40   

HCP

         2018            1.27        1.30        1.28         1.32   

LTC

         2018            1.18        1.13        1.17         1.13   

Missouri River Corp.

         2018            0.58        0.83        0.58         0.83   

Oakmont

         2012-2013            2.12        1.69        2.06         1.64   

Other

         2013            1.72        1.41        1.65         1.36   
                                          

Total Leased

               1.46        1.38        1.52         1.36   
                                          

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.

 

3

Sunrise Senior Living

Community Data

Joint Venture Communities

 

Stabilized Properties 5)

                               Unit Occupancy     Net Operating Income of
Venture		  
                                Three Months Ended     Three Months Ended  
                          Ownership     March 31,     March 31,  

Venture Pool 1)

    Comm.      Units      Country      Interest 4)     2011     2010     2011      2010  

Pool 1

      5         434         UK         20.00 %      92.5 %      89.7 %    $ 3,829,709       $ 3,745,915   

Pool 7 3), 7)

      29         2,082         US         40.00 %      89.0 %      85.9 %      11,160,673         9,760,809   

Pool 8

      4         310         US         20.00 %      90.5 %      85.3 %      2,073,920         1,911,872   

Pool 9

      12         872         US         25.00 %      90.5 %      88.1 %      4,491,755         4,184,305   

Pool 10

      2         106         US         25.00 %      85.5 %      87.3 %      182,521         280,286   

Pool 11

      2         152         US         30.00 %      89.6 %      81.8 %      936,212         620,978   

Pool 12

      15         1,091         US         20.00 %      87.4 %      87.2 %      6,148,827         6,256,956   

Pool 13

      1         79         US         20.00 %      96.9 %      99.0 %      596,838         616,016   

Pool 15 2)

      7         601         US         20%/50 %      87.0 %      84.9 %      3,175,113         2,996,323   

Pool 24

      7         498         US         10%-50 %      86.6 %      88.8 %      2,650,279         2,770,670   
                                                        

Total JV’s-Stabilized

      84         6,225              88.9 %      86.9 %    $ 35,245,847       $ 33,144,130   
                                                        

Lease-Up Properties 6)

                               Unit Occupancy     Net Operating Income of
Venture		  
                                Three Months Ended     Three Months Ended  
                          Ownership     March 31,     March 31,  

Venture Pool 1)

    Comm.      Units      Country      Interest 4)     2011     2010     2011      2010  

Pool 2

      2         156         UK         9.81 %      90.8 %      74.4 %    $ 1,557,448       $ 1,166,409   

Pool 3

      15         1,243         UK         9.81 %      83.0 %      72.5 %      7,576,952         6,381,750   

Pool 4

      3         237         UK         20.00 %      85.1 %      58.4 %      2,054,005         1,075,695   

Pool 5

      1         81         UK         17.30 %      65.9 %      52.4 %      103,187         22,383   

Pool 6

      1         114         UK         17.30 %      76.3 %      49.9 %      318,837         101,869   

Pool 14

      3         219         US         20.00 %      87.9 %      83.2 %      852,960         677,766   

Pool 16

      8         621         US         20.00 %      83.1 %      82.4 %      2,748,860         2,382,764   

Pool 17

      3         229         US         20.00 %      80.0 %      67.6 %      632,534         361,002   

Pool 18

      4         348         US         20.00 %      66.9 %      38.9 %      1,095,711         (319,663 ) 

Pool 19

      3         295         US         20.00 %      75.2 %      52.6 %      753,118         187,893   

Pool 20

      6         598         US         20.00 %      64.4 %      45.4 %      1,575,499         26,894   

Pool 21

      2         222         US         20.00 %      55.7 %      31.9 %      270,175         (479,347 ) 

Pool 22

      1         76         US         20.00 %      92.6 %      76.4 %      427,499         277,332   

Pool 23

      1         323         US         30.00 %      44.0 %      38.0 %      225,626         (121,485 ) 
                                                        

Total JV’s-Lease Up

      53         4,762              75.2 %      61.3 %    $ 20,192,411       $ 11,741,262   
                                                        

Total Properties

                               Unit Occupancy     Net Operating Income of
Venture		  
                                Three Months Ended     Three Months Ended  
                          Ownership     March 31,     March 31,  

Venture Pool 1)

    Comm.      Units      Country      Interest 4)     2011     2010     2011      2010  

Pool 1

      5         434         UK         20.00 %      92.5 %      89.7 %    $ 3,829,709       $ 3,745,915   

Pool 2

      2         156         UK         9.81 %      90.8 %      74.4 %      1,557,448         1,166,409   

Pool 3

      15         1,243         UK         9.81 %      83.0 %      72.5 %      7,576,952         6,381,750   

Pool 4

      3         237         UK         20.00 %      85.1 %      58.4 %      2,054,005         1,075,695   

Pool 5

      1         81         UK         17.30 %      65.9 %      52.4 %      103,187         22,383   

Pool 6

      1         114         UK         17.30 %      76.3 %      49.9 %      318,837         101,869   

Pool 7 3), 7)

      29         2,082         US         40.00 %      89.0 %      85.9 %      11,160,673         9,760,809   

Pool 8

      4         310         US         20.00 %      90.5 %      85.3 %      2,073,920         1,911,872   

Pool 9

      12         872         US         25.00 %      90.5 %      88.1 %      4,491,755         4,184,305   

Pool 10

      2         106         US         25.00 %      85.5 %      87.3 %      182,521         280,286   

Pool 11

      2         152         US         30.00 %      89.6 %      81.8 %      936,212         620,978   

Pool 12

      15         1,091         US         20.00 %      87.4 %      87.2 %      6,148,827         6,256,956   

Pool 13

      1         79         US         20.00 %      96.9 %      99.0 %      596,838         616,016   

Pool 14

      3         219         US         20.00 %      87.9 %      83.2 %      852,960         677,766   

Pool 15 2)

      7         601         US         20%/50 %      87.0 %      84.9 %      3,175,113         2,996,323   

Pool 16

      8         621         US         20.00 %      83.1 %      82.4 %      2,748,860         2,382,764   

Pool 17

      3         229         US         20.00 %      80.0 %      67.6 %      632,534         361,002   

Pool 18

      4         348         US         20.00 %      66.9 %      38.9 %      1,095,711         (319,663 ) 

Pool 19

      3         295         US         20.00 %      75.2 %      52.6 %      753,118         187,893   

Pool 20

      6         598         US         20.00 %      64.4 %      45.4 %      1,575,499         26,894   

Pool 21

      2         222         US         20.00 %      55.7 %      31.9 %      270,175         (479,347 ) 

Pool 22

      1         76         US         20.00 %      92.6 %      76.4 %      427,499         277,332   

Pool 23

      1         323         US         30.00 %      44.0 %      38.0 %      225,626         (121,485 ) 

Pool 24

      7         498         US         10%-50 %      86.6 %      88.8 %      2,650,279         2,770,670   
                                                        

Total Joint Ventures

      137         10,987              83.0 %      75.8 %    $ 55,438,258       $ 44,885,392   
                                                        

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 seven 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 March 31, 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 March 31, 2011.
7) The venture net operating income includes a 7% management fee in the first quarter of 2010 and a 5% management fee in the first quarter of 2011.

 

4

Sunrise Senior Living

Community Data

Management Contracts

 

Joint Venture Communities

                                Management Fees 2)  
                                 Three Months Ended  
                          Average      March 31,  

Venture Pool 1)

    Comm.      Units      Country      Maturity Date      2011      2010  

Pool 1 3)

      5         434         UK         2028       $ 770,249       $ 813,452   

Pool 2

      2         156         UK         2037         301,891         152,268   

Pool 3

      15         1,243         UK         2037         1,803,289         1,641,512   

Pool 4

      3         237         UK         2024         287,192         241,998   

Pool 5

      1         81         UK         2039         113,571         106,330   

Pool 6

      1         114         UK         2039         187,871         103,600   

Pool 7 7)

      29         2,082         US         2028         1,514,966         2,320,912   

Pool 8

      4         310         US         2032         439,322         411,285   

Pool 9 5)

      12         872         US         2030         1,098,377         1,040,149   

Pool 10

      2         106         US         2037         91,171         115,892   

Pool 11

      2         152         US         2038         144,581         125,390   

Pool 12 6)

      15         1,091         US         2037         1,434,618         1,406,180   

Pool 13

      1         79         US         2037         130,552         101,788   

Pool 14

      3         219         US         2037         266,875         191,559   

Pool 15

      7         601         US         2030         710,601         682,152   

Pool 16 3)

      8         621         US         2030         677,479         657,500   

Pool 17 3)

      3         229         US         2030         233,394         190,309   

Pool 18

      4         348         US         2037         278,303         310,211   

Pool 19 6)

      3         295         US         2037         252,486         225,149   

Pool 20 10)

      6         598         US         2037         607,983         480,690   

Pool 21

      2         222         US         2038         176,870         159,582   

Pool 22

      1         76         US         2038         107,325         96,931   

Pool 23 9)

      1         323         US         2034         —           —     

Pool 24

      7         498         US         Various         549,898         543,479   
                                         

Total Joint Ventures

      137         10,987             $ 12,178,865       $ 12,118,318   
                                         

Managed Communities

                                Management Fees 2)  
                                 Three Months Ended  
                          Average      March 31,  

Owner

    Comm.      Units      Country      Maturity Date      2011      2010  
                 

Care Institute

      2         209         US         2011       $ 153,481       $ 151,064   

Cooperative

      2         684         US         2012 and 2034         629,277         644,452   

HCPI 8)

      46         4,513         US         2028-2038         4,142,882         3,830,380   

Inova

      4         313         US         2013         476,207         353,835   

Live Oaks Living Ctrs

      2         92         US         2021         74,864         77,367   

Ventas 4)

      79         6,511         US         2034-2037         5,586,048         5,393,646   

Wedum Foundation

      4         235         US         2013         243,041         238,744   

Other

      5         681         US         Various         570,800         503,343   
                                         

Total Managed

      144         13,238             $ 11,876,600       $ 11,192,831   
                                         

Total JV and Managed Communities

      281         24,225             $ 24,055,465       $ 23,311,149   
                                         

Other Management Fees

                $ 158,368       $ 6,049,566   
                             

Total Management Fees

                $ 24,213,834       $ 29,360,715   
                             

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 seven 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 15 properties contain at-will termination provisions for a specified fee to Sunrise.
9) No management fees are associated with this venture (condominiums).
10) This debt matured in April 2011, and on May 4, 2011, we were notified by the lender that an event of default, due to the loan maturity, had occurred. The loan amount is $133.2 million and is collateralized by six communities in the venture. As a result of this default, the lender may foreclose on the communities and/or terminate our management agreement. The lender has elected to retain us as manager until further notice, and our management fee has been reduced to five percent. The venture is in discussion with the lender on these matters.

 

5

Sunrise Senior Living

Consolidated and Joint Venture Debt

Scheduled Debt Maturities as of March 31, 2011

(dollars in thousands)

Consolidated Debt

 

Consolidated Communities

    Ownership
Percentage		     Number of
Communities		   

Maturity

Date 6)

    Weighted Aver.
Interest Rate		      Outstanding
Debt		     

SRZ
Guaranty

Connecticut Ave

     100.00 %    1    Jun 12      4.94%       $ 28,010       Y

Monterey

      100.00 %    1    Jun 13      3.26%         21,022       N

Quebec 7)

      100.00 %    3    Apr 11      4.75%         48,147       Y

Cedar Parke

      0.00 %    1    Jul 29      0.66%         22,145       Y
                        

Consolidated Community Debt

      6          $ 119,324      
                        

Restructure Note

      100.00 %    0    Oct 12      0.00%       $ 29,934       Y

Restructure Note

      100.00 %    0    Apr 14      0.00%         5,442       Y
                        

Other Consolidated Debt

      0          $ 35,376      
                        

Total Consolidated Debt

      6          $ 154,700      
                        

Joint Venture Entities

 

Venture Pool 1)

    Ownership
Percentage  4)		     Number of
Communities		   

Maturity

Date 6)

    Weighted Aver.
Interest Rate		      Outstanding
Debt		     

SRZ
ODA

Pool 1

      20.00 %    5    May 13      4.64%       $ 137,230       N

Pool 2

      9.81 %    2    Feb 15      5.12%         54,805       N

Pool 3

      9.81 %    15    Jul 14      1.77%         649,586       N

Pool 4

      20.00 %    3    Nov 2012 - Jun 2013      2.42%         95,134       Y

Pool 5

      17.30 %    1    Apr 13      3.87%         43,043       Y

Pool 6

      17.30 %    1    Dec 12      2.12%         30,688       Y

Pool 7 3)

      40.00 %    29    Feb 14      6.76%         435,000       N

Pool 8

      20.00 %    4    Apr 14      5.89%         76,929       N

Pool 9

      25.00 %    12    Jan 14      6.00%         185,063       N

Pool 10

      25.00 %    2    May 13      6.87%         9,184       N

Pool 11

      30.00 %    2    Mar 13      5.23%         36,005       N

Pool 12

      20.00 %    15    Jun 12      4.49%         365,342       N

Pool 13

      20.00 %    1    Mar 12      4.25%         13,879       Y

Pool 14

      20.00 %    3    Dec 11      3.50%         46,028       Y

Pool 15 2)

      20%/50 %    7    Apr 11      6.25%         101,395       N

Pool 16

      20.00 %    8    Dec 11      6.50%         111,350       Y

Pool 17

      20.00 %    3    Dec 12      6.50%         41,932       Y

Pool 18

      20.00 %    4    Dec 2010 - Jul 2012      3.75%         76,165       Y

Pool 19

      20.00 %    3    Sep 10      2.00%         65,813       Y

Pool 20 8)

      20.00 %    6    Apr 11      5.30%         133,249       Y

Pool 21

      20.00 %    2    Oct 11      5.75%         56,189       Y

Pool 22

      20.00 %    1    Jun 11      6.00%         14,561       Y

Pool 23 5)

      30.00 %    1    Mar 11      5.75%         30,244       Y

Pool 24

      10%-50 %    7    Jun 2011 - Jan 2020      6.51%         65,186       N

Pool 25

      30.00 %    0    Mar 11      3.93%         116,355       Y
                        

Total Joint Ventures 9)

      137          $ 2,990,355      
                        

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 seven 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 $48.1 million was due on April 30, 2011. We are seeking a loan extension while we market the communities for sale. If we are unable to sell the properties or the net proceeds from the sale are not sufficient to repay the related debt; or if we are unable to extend the mortgage, it may have an adverse impact on our financial condition, cash flows and results of operations. The bids we have received recently are not consistent with our estimate of market value. If we are not able to sell at a favorable price, we may choose to hold the assets and continue to operate them until we can obtain favorable pricing.
8) This debt matured in April 2011, and on May 4, 2011, we were notified by the lender that an event of default, due to the loan maturity, had occurred. The loan amount is $133.2 million and is collateralized by six communities in the venture. As a result of this default, the lender may foreclose on the communities and/or terminate our management agreement. The lender has elected to retain us as manager until further notice, and our management fee has been reduced to five percent. The venture is in discussion with the lender on these matters.
9) Sunrise’s share of joint venture debt as of March 31, 2011 is $642 million.

 

6

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  
     March 31,  
     2011     2010  

Consolidated Community NOI

    $ 2,789      $ 2,673   

Leased Community NOI

      21,074        19,633   
                

Total Consolidated NOI

      23,863        22,306   

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

      3,579        —     
                

Adjusted Total Consolidated NOI

      27,442        22,306   

Less: Consolidated Community Lease Expense (includes $3.9 million of lease expense from consolidated New York communities leased from a venture)

      18,697        14,743   

Less: Depreciation and Amortization

      7,417        8,444   

Less: Impairment of long-lived assets

      —          700   
                
     1,328        (1,581 ) 
                

Plus: Other Sunrise Revenue

     

Management fees

      24,214        29,361   

Ancillary fees

      7,597        10,593   

Professional fees from development, marketing and other

      323        2,102   

Reimbursed costs incurred on behalf of managed communities

      185,865        224,325   
                

Total Other Revenue

      217,999        266,381   

Less: Other Sunrise Expense

     

Ancillary expenses

      7,004        9,800   

General and administrative

      32,389        33,294   

Carrying costs of liquidating trust assets

      407        625   

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

      —          58   

Restructuring costs

      —          4,615   

Allowance for uncollectible receivables from owners

      1,125        920   

Costs incurred on behalf of managed communities

      186,384        224,366   

Misc. Expense for Non-Operating Communities

      95        247   
                

Total Other Expense

      227,404        273,925   
                

Loss from operations

    $ (8,077 )    $ (9,125 ) 
                

 

7

Sunrise Senior Living, Inc.

Supplemental Information

As of March, 31 2011

($ in thousand except average daily rate)

 

     Communities
Q1 11		      Unit Capacity
Q1 11		      Resident Capacity
Q1 11		  

Total Community Data (1,2)

         

Communities managed for third-party owners

      144         13,238         15,129   

Communities in ventures

      137         10,987         12,843   

Communities consolidated

      36         6,827         7,012   
                          

Total communities operated

      317         31,052         34,984   
                          

 

Percentage of Total Operating Portfolio

   

Assisted Living

      80.9 % 

Independent Living

      16.0 % 

Skilled Nursing

      3.1 % 
        

Total

      100.0 % 
        

Selected Operating Results

 

Comparable Community Portfolio Operating Results (3,4)

    Q1 11     Q1 10     % Change      

Total Comparable-Community Portfolio

         

Number of Communities

      294        294        0.0 %   

Unit Capacity

      28,723        28,723        0.0 %   

Resident Capacity

      32,333        32,333        0.0 %   

Community Revenues

    $ 480,597      $ 456,148        5.4 %   

Community Revenues Excluding Impact of Exchange Rates

    $ 478,795      $ 456,148        5.0 %   

Community Operating Expenses

    $ 348,882      $ 333,411        -4.6 %   

Community Operating Expenses Excluding Impact of Exchange Rates

    $ 347,690      $ 333,411        -4.3 %   

Average Daily Revenue Per Occupied Unit

    $ 211.60      $ 203.98        3.7 %   

Average Daily Revenue Per Occupied Unit Excluding Impact of Exchange Rates

    $ 210.80      $ 203.98        3.3 %   

Average Unit Occupancy Rate

      87.5 %      86.1 %      140      basis points

Communities in ventures and managed for third-party owners

         

Number of Communities

      259        259        0.0 %   

Unit Capacity

      21,995        21,995        0.0 %   

Resident Capacity

      25,433        25,433        0.0 %   

Community Revenues

    $ 388,866      $ 369,230        5.3 %   

Community Revenues Excluding Impact of Exchange Rates

    $ 387,251      $ 369,230        4.9 %   

Community Operating Expenses

    $ 278,367      $ 266,399        -4.5 %   

Community Operating Expenses Excluding Impact of Exchange Rates

    $ 277,367      $ 266,399        -4.1 %   

Average Daily Revenue Per Occupied Unit

    $ 224.09      $ 217.25        3.2 %   

Average Daily Revenue Per Occupied Unit Excluding Impact of Exchange Rates

    $ 223.16      $ 217.25        2.7 %   

Average Unit Occupancy Rate

      87.6 %      85.7 %      190      basis points

Communities consolidated

         

Number of Communities

      35        35        0.0 %   

Unit Capacity

      6,728        6,728        0.0 %   

Resident Capacity

      6,900        6,900        0.0 %   

Community Revenues

    $ 91,731      $ 86,919        5.5 %   

Community Revenues Excluding Impact of Exchange Rates

    $ 91,544      $ 86,919        5.3 %   

Community Operating Expenses

    $ 70,515      $ 67,012        -5.2 %   

Community Operating Expenses Excluding Impact of Exchange Rates

    $ 70,323      $ 67,012        -4.9 %   

Average Daily Revenue Per Occupied Unit

    $ 170.64      $ 161.31        5.8 %   

Average Daily Revenue Per Occupied Unit Excluding Impact of Exchange Rates

    $ 170.28      $ 161.31        5.6 %   

Average Unit Occupancy Rate

      87.4 %      87.3 %      10      basis points

Notes

 

(1) During the first quarter of 2011, Sunrise sold or disposed of two consolidated communities .
(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, 2011. This includes consolidated communities, communities in ventures and communities managed for third-party owners.

Sunrise Senior Living, Inc.

Supplemental Information

As of March, 31 2011

($ in thousand except average daily rate)

 

     Communities
Q1 11		      Unit Capacity
Q1 11		      Resident Capacity
Q1 11		  

Total Community Data (1,2)

         

Communities managed for third-party owners

      144         13,238         15,129   

Communities in ventures

      137         10,987         12,843   

Communities consolidated

      36         6,827         7,012   
                          

Total communities operated

      317         31,052         34,984   
                          

 

Percentage of Total Operating Portfolio   

Assisted Living

      80.9 % 

Independent Living

      16.0 % 

Skilled Nursing

      3.1 % 
        

Total

      100.0 % 
        

Selected Operating Results

 

All Community Portfolio Operating Results (3,4)

    Q1 11     Q1 10     % Change      

Total Community Portfolio

         

Number of Communities

      317        317        0.0 %   

Unit Capacity

      31,052        31,052        0.0 %   

Resident Capacity

      34,984        34,984        0.0 %   

Community Revenues

    $ 515,759      $ 480,675        7.3 %   

Community Revenues Excluding Impact of Exchange Rates

    $ 517,523      $ 480,675        7.7 %   

Community Operating Expenses

    $ 376,078      $ 356,335        -5.5 %   

Community Operating Expenses Excluding Impact of Exchange Rates

    $ 374,678      $ 356,335        -5.1 %   

Average Daily Revenue Per Occupied Unit

    $ 214.02      $ 205.98        3.9 %   

Average Daily Revenue Per Occupied Unit Excluding Impact of Exchange Rates

    $ 214.76      $ 205.98        4.3 %   

Average Unit Occupancy Rate

      85.9 %      83.1 %      280      basis points

Communities in ventures and managed for third-party owners

         

Number of Communities

      281        281        0.0 %   

Unit Capacity

      24,225        24,225        0.0 %   

Resident Capacity

      27,972        27,972        0.0 %   

Community Revenues

    $ 422,680      $ 392,481        7.7 %   

Community Revenues Excluding Impact of Exchange Rates

    $ 424,631      $ 392,481        8.2 %   

Community Operating Expenses

    $ 304,418      $ 288,073        -5.7 %   

Community Operating Expenses Excluding Impact of Exchange Rates

    $ 303,209      $ 288,073        -5.3 %   

Average Daily Revenue Per Occupied Unit

    $ 226.23      $ 219.00        3.3 %   

Average Daily Revenue Per Occupied Unit Excluding Impact of Exchange Rates

    $ 227.28      $ 219.00        3.8 %   

Average Unit Occupancy Rate

      85.6 %      82.1 %      350      basis points

Communities consolidated

         

Number of Communities

      36        36        0.0 %   

Unit Capacity

      6,827        6,827        0.0 %   

Resident Capacity

      7,012        7,012        0.0 %   

Community Revenues

    $ 93,079      $ 88,194        5.5 %   

Community Revenues Excluding Impact of Exchange Rates

    $ 92,892      $ 88,194        5.3 %   

Community Operating Expenses

    $ 71,660      $ 68,262        -5.0 %   

Community Operating Expenses Excluding Impact of Exchange Rates

    $ 71,469      $ 68,262        -4.7 %   

Average Daily Revenue Per Occupied Unit

    $ 171.37      $ 162.25        5.6 %   

Average Daily Revenue Per Occupied Unit Excluding Impact of Exchange Rates

    $ 171.02      $ 162.25        5.4 %   

Average Unit Occupancy Rate

      87.0 %      86.8 %      20      basis points

Notes

 

(1) During the first quarter of 2011, Sunrise sold or disposed of two consolidated communities .
(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, 2011. This includes consolidated communities, communities in ventures and communities managed for third-party owners.

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