SUNRISE SENIOR LIVING INC - FORM 8-K - EX-99.2 - SUPPLEMENTAL INFORMATION - May 1, 2012

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Exhibit 99.2

Sunrise Senior Living

Community Data

Ownership Type

 

Stabilized Properties 1)

                  Sequential Same Community-Unit Occupancy  
                   Three Months Ended     Three Months Ended  
                   March 31,     December 31,  

Ownership Type

    Comm.      Units      2012     2011 3)  

Consolidated

      25         2,281         85.2 %      85.2 % 

Leased

      26         5,673         88.2 %      88.0 % 

Joint Ventures-US

      76         5,666         88.0 %      88.5 % 

Joint Ventures-UK

      23         1,947         88.0 %      89.1 % 

Managed

      139         12,676         88.7 %      88.6 % 
  

 

 

     

 

 

     

 

 

    

 

 

  

Total Stabilized

      289         28,243         88.2 %      88.2 % 
  

 

 

     

 

 

     

 

 

    

 

 

  

Lease-Up Properties 2)

                  Sequential Same Community-Unit Occupancy  
                   Three Months Ended     Three Months Ended  
                   March 31,     December 31,  

Ownership Type

    Comm.      Units      2012     2011 3)  

Consolidated

      5         517         80.3 %      79.8 % 

Joint Ventures-US

      10         1,186         69.1 %      66.5 % 

Joint Ventures-UK

      4         318         93.6 %      93.3 % 
  

 

 

     

 

 

     

 

 

    

 

 

  

Total Lease Up

      19         2,021         75.8 %      74.1 % 
  

 

 

     

 

 

     

 

 

    

 

 

  

Total Properties

                  Sequential Same Community-Unit Occupancy  
                   Three Months Ended     Three Months Ended  
                   March 31,     December 31,  

Ownership Type

    Comm.      Units      2012     2011 3)  

Consolidated

      30         2,798         84.3 %      84.2 % 

Leased

      26         5,673         88.2 %      88.0 % 

Joint Ventures-US

      86         6,852         84.7 %      84.7 % 

Joint Ventures-UK

      27         2,265         88.8 %      89.6 % 

Managed

      139         12,676         88.7 %      88.6 % 
  

 

 

     

 

 

     

 

 

    

 

 

  

Total Properties

      308         30,264         87.3 %      87.3 % 
  

 

 

     

 

 

     

 

 

    

 

 

  

Footnotes:

 

1) 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, 2012. All managed communities are stabilized properties.
2) 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, 2012.
3) For sequential same community purposes, we have provided a revised December 31, 2011 occupancy table which includes the same community count that exists as of the period ended March 31, 2012.

 

1

Sunrise Senior Living

Community Data

Consolidated Communities

 

Stabilized Properties 2)

                             Unit Occupancy     Net Operating Income 1), 4)  
                              Three Months Ended     Three Months Ended  
     Comm.      Units      Ownership     State/    March 31,     March 31,  

Community

          Interest     Province    2012     2011     2012      2011  

Connecticut Avenue

      1         100         100.0 %    DC      97.1 %      86.5 %    $ 1,169,828       $ 886,898   

Santa Monica 8)

      1         70         100.0 %    CA      96.4 %      95.5 %      654,220         682,102   

AL US 6)

      15         1,091         100.0 %    Various      89.2 %      87.4 %      8,273,045         7,583,446   

Quebec

     3         246         100.0 %    QU      72.5 %      58.3 %      925,034         250,843   

Monterey

      1         99         100.0 %    CA      71.3 %      62.7 %      495,416         291,465   

Other Consolidated

      1         371         0.0 %    NJ      70.5 %      73.2 %      289,166         317,561   

Other Consolidated 7)

      1         137         50.0 %    MD      95.9 %      96.6 %      1,379,246         1,273,250   
  

 

 

     

 

 

          

 

 

    

 

 

    

 

 

     

 

 

  

Total Stabilized Excluding 2 Condos

      23         2,114              84.2 %      81.2 %      13,185,955         11,285,565   

Other Consolidated 5)

      2         167         100.0 %    Various      97.8 %      102.7 %      51,344         (521,474 ) 
  

 

 

     

 

 

          

 

 

    

 

 

    

 

 

     

 

 

  

Total Stabilized

      25         2,281              85.2 %      82.7 %    $ 13,237,299       $ 10,764,091   
  

 

 

     

 

 

          

 

 

    

 

 

    

 

 

     

 

 

  

Lease-Up Properties 3)

                             Unit Occupancy     Net Operating Income 1), 4)  
                              Three Months Ended     Three Months Ended  
     Comm.      Units      Ownership     State/    March 31,     March 31,  

Community

          Interest     Province    2012     2011     2012      2011  

Pool 19 9)

      3         295         100.0 %    Various      89.7 %      75.2 %    $ 1,511,412       $ 1,005,604   

Pool 21 9)

      2         222         100.0 %    Various      67.8 %      55.7 %      788,450         447,045   
  

 

 

     

 

 

          

 

 

    

 

 

    

 

 

     

 

 

  

Total Lease-Up

      5         517              80.3 %      66.8 %    $ 2,299,862       $ 1,452,649   
  

 

 

     

 

 

          

 

 

    

 

 

    

 

 

     

 

 

  

Total Properties

                             Unit Occupancy     Net Operating Income 1), 4)  
                              Three Months Ended     Three Months Ended  
     Comm.      Units      Ownership     State/    March 31,     March 31,  

Community

          Interest     Province    2012     2011     2012      2011  

Connecticut Avenue

      1         100         100.0 %    DC      97.1 %      86.5 %    $ 1,169,828       $ 886,898   

Santa Monica 8)

      1         70         100.0 %    CA      96.4 %      95.5 %      654,220         682,102   

AL US 6)

      15         1,091         100.0 %    Various      89.2 %      87.4 %      8,273,045         7,583,446   

Quebec

     3         246         100.0 %    QU      72.5 %      58.3 %      925,034         250,843   

Monterey

      1         99         100.0 %    CA      71.3 %      62.7 %      495,416         291,465   

Pool 19 9)

      3         295         100.0 %    Various      89.7 %      75.2 %      1,511,412         1,005,604   

Pool 21 9)

      2         222         100.0 %    Various      67.8 %      55.7 %      788,450         447,045   

Other Consolidated

      1         371         0.0 %    NJ      70.5 %      73.2 %      289,166         317,561   

Other Consolidated 7)

      1         137         50.0 %    MD      95.9 %      96.6 %      1,379,246         1,273,250   

Total Properties Excluding 2 Condos

      28         2,631              83.4 %      78.3 %      15,485,817         12,738,214   
  

 

 

     

 

 

          

 

 

    

 

 

    

 

 

     

 

 

  

Other Consolidated 5)

      2         167         100.0 %    Various      97.8 %      102.7 %      51,344         (521,474 ) 
  

 

 

     

 

 

          

 

 

    

 

 

    

 

 

     

 

 

  

Total Properties

      30         2,798              84.3 %      79.7 %    $ 15,537,161       $ 12,216,740   
  

 

 

     

 

 

          

 

 

    

 

 

    

 

 

     

 

 

  

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, 2012. 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, 2012.
4) Net operating income is a non-GAAP measure. Our nearest GAAP measure on our consolidated statement of operations is income/(loss) from operations. Net operating income excludes depreciation, amortization, lease expense, and impairment charges from these communities. On page 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.
6) Net operating income is consolidated from June 2, 2011 forward. The portfolio was a joint venture prior to June 2.
7) This community is a joint venture community that we consolidate under the accounting guidelines. The information provided above only includes the results of operations of the operator who has a lease with an unconsolidated 3rd party. In 2011, the consolidated venture paid $1.7 million to the landlord in rent. In 2012, the terms of the lease will be re-negotiated and we expect the rent expense to increase significantly.
8) Net operating income is consolidated from February 28, 2012 forward. The community was a joint venture prior to February 28.
9) Net operating income is consolidated from March 20, 2012 forward. The portfolio was a joint venture prior to March 20.

 

2

Sunrise Senior Living

Community Data

Leased Communities

 

Leased Communities

                       Unit Occupancy     Net Operating Income 1), 3)  
                        Three Months Ended     Three Months Ended  
                        March 31,     March 31,  

Lessor

    Comm.      Units      Country    2012     2011     2012      2011  

HRPT 5)

      4         1,594       US      93.6 %      91.8 %    $ 6,957,723       $ 6,677,065   

HRPT 6)

      10         2,306       US      85.5 %      86.8 %      4,529,140         6,128,212   

HCP

      2         1,055       US      86.7 %      88.1 %      4,537,623         5,001,708   

LTC

      3         186       US      80.4 %      86.3 %      773,186         778,566   

Missouri River Corp.

      2         133       US      82.2 %      84.5 %      482,264         262,226   

Oakmont

      3         228       US      93.4 %      93.5 %      1,409,228         1,411,619   

Other

      2         171       US      90.7 %      91.5 %      800,175         667,712   
  

 

 

     

 

 

        

 

 

    

 

 

    

 

 

     

 

 

  

Total Leased

      26         5,673            88.2 %      88.8 %    $ 19,489,339       $ 20,927,108   
  

 

 

     

 

 

        

 

 

    

 

 

    

 

 

     

 

 

  

 

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)    2012      2011      2012      2011  

HRPT (4 communities) 5)

    2013      1.91         1.84         1.91         1.84   

HRPT (10 communities) 6)

    2013      0.98         1.32         1.11         1.49   

HCP

    2018      1.14         1.26         1.13         1.28   

LTC

    2018      1.02         1.17         1.02         1.16   

Missouri River Corp.

    2018      0.84         0.57         0.84         0.57   

Oakmont

    2012-2013      2.02         2.10         1.97         2.04   

Other

    2013      2.05         1.71         1.93         1.64   
     

 

 

     

 

 

     

 

 

     

 

 

  

Total Leased

         1.33         1.45         1.37         1.51   
     

 

 

     

 

 

     

 

 

     

 

 

  

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.
5) On December 29, 2011, we received 3rd party consent to the extension of the term of the four leases for an additional five-year term commencing January 1, 2014.
6) We notified the landlord that the ten leases will terminate effective December 31, 2013.

 

3

Sunrise Senior Living

Community Data

Joint Venture Communities

 

Stabilized Properties 4)

                             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 3)     2012     2011     2012      2011  

Pool 1

      5         434       UK      20.00 %      94.8 %      92.5 %    $ 4,345,638       $ 3,866,223   

Pool 2

      2         156       UK      9.81 %      93.3 %      90.9 %      1,838,764         1,557,450   

Pool 3

      15         1,243       UK      9.81 %      84.9 %      83.0 %      8,863,382         7,576,949   

Pool 6

      1         114       UK      17.30 %      88.9 %      76.3 %      774,546         318,837   

Pool 7 2)

      29         2,082       US      40.00 %      87.5 %      89.0 %      11,824,393         11,145,013   

Pool 8

      4         310       US      20.00 %      90.5 %      90.5 %      2,358,019         2,073,920   

Pool 9

      12         872       US      25.00 %      91.0 %      90.5 %      5,630,958         4,491,755   

Pool 11

      2         152       US      30.00 %      91.8 %      89.6 %      991,742         936,212   

Pool 13/14

      4         298       US      20.00 %      88.9 %      90.3 %      1,508,045         1,449,798   

Pool 15

      7         601       US      32.12 %      87.8 %      86.9 %      3,590,619         3,175,113   

Pool 16 6)

      8         621       US      20.00 %      85.3 %      83.1 %      3,180,539         2,748,860   

Pool 17 6)

      3         229       US      20.00 %      81.9 %      80.0 %      923,261         632,534   

Pool 22 6)

      1         76       US      20.00 %      86.4 %      92.6 %      366,259         427,499   

Pool 23 8)

     1         83       US      30.00 %      89.1 %      85.5 %      580,737         202,866   

Pool 24

      5         342       US      10%-50 %      87.4 %      87.6 %      2,258,546         2,101,587   
  

 

 

     

 

 

          

 

 

    

 

 

    

 

 

     

 

 

  

Total JV’s-Stabilized

      99         7,613              88.0 %      87.4 %    $ 49,035,448       $ 42,704,616   
  

 

 

     

 

 

          

 

 

    

 

 

    

 

 

     

 

 

  

 

Lease-Up 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 3)     2012     2011     2012      2011  

Pool 4

      3         237       UK      20.00 %      98.3 %      85.1 %      2,999,928         2,053,940   

Pool 5

      1         81       UK      17.30 %      79.7 %      65.9 %      393,775         103,186   

Pool 18 6)

      4         348       US      20.00 %      78.4 %      66.9 %      1,499,751         1,095,711   

Pool 20

      6         598       US      30.00 %      78.8 %      64.4 %      2,474,400         1,575,499   

Pool 25 7)

      0         240       US      30.00 %      31.3 %      29.7 %      —           —     
  

 

 

     

 

 

          

 

 

    

 

 

    

 

 

     

 

 

  

Total JV’s-Lease Up

      14         1,504              74.3 %      62.8 %    $ 7,367,854       $ 4,828,336   
  

 

 

     

 

 

          

 

 

    

 

 

    

 

 

     

 

 

  

 

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 3)     2012     2011     2012      2011  

Pool 1

      5         434       UK      20.00 %      94.8 %      92.5 %    $ 4,345,638       $ 3,866,223   

Pool 2

      2         156       UK      9.81 %      93.3 %      90.9 %      1,838,764         1,557,450   

Pool 3

      15         1,243       UK      9.81 %      84.9 %      83.0 %      8,863,382         7,576,949   

Pool 4

      3         237       UK      20.00 %      98.3 %      85.1 %      2,999,928         2,053,940   

Pool 5

      1         81       UK      17.30 %      79.7 %      65.9 %      393,775         103,186   

Pool 6

      1         114       UK      17.30 %      88.9 %      76.3 %      774,546         318,837   

Pool 7 2)

      29         2,082       US      40.00 %      87.5 %      89.0 %      11,824,393         11,145,013   

Pool 8

      4         310       US      20.00 %      90.5 %      90.5 %      2,358,019         2,073,920   

Pool 9

      12         872       US      25.00 %      91.0 %      90.5 %      5,630,958         4,491,755   

Pool 11

      2         152       US      30.00 %      91.8 %      89.6 %      991,742         936,212   

Pool 13/14

      4         298       US      20.00 %      88.9 %      90.3 %      1,508,045         1,449,798   

Pool 15

      7         601       US      32.12 %      87.8 %      86.9 %      3,590,619         3,175,113   

Pool 16 6)

      8         621       US      20.00 %      85.3 %      83.1 %      3,180,539         2,748,860   

Pool 17 6)

      3         229       US      20.00 %      81.9 %      80.0 %      923,261         632,534   

Pool 18 6)

      4         348       US      20.00 %      78.4 %      66.9 %      1,499,751         1,095,711   

Pool 20

      6         598       US      30.00 %      78.8 %      64.4 %      2,474,400         1,575,499   

Pool 22 6)

      1         76       US      20.00 %      86.4 %      92.6 %      366,259         427,499   

Pool 23 8)

     1         83       US      30.00 %      89.1 %      85.5 %      580,737         202,866   

Pool 24

      5         342       US      10%-50 %      87.4 %      87.6 %      2,258,546         2,101,587   

Pool 25 7)

      0         240       US      30.00 %      31.3 %      29.7 %      —           —     
  

 

 

     

 

 

          

 

 

    

 

 

    

 

 

     

 

 

  

Total Joint Ventures

      113         9,117              85.7 %      83.3 %    $ 56,403,302       $ 47,532,952   
  

 

 

     

 

 

          

 

 

    

 

 

    

 

 

     

 

 

  

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 five single property joint ventures.
2) Operating results include the results from 6 New York entities that are leased and operated by Sunrise but owned by the venture.
3) In certain situations, our share of cash distributions, profits or losses, are not equal to our ownership percentage.
4) 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, 2012.
5) 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, 2012.
6) Closed on the sale of these venture pools on May 1, 2012.
7) This condominium community is currently in foreclosure with the lender.
8) Represents the assisted living side of the condo project (pool 25).

 

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    2012      2011  

Pool 1

      5         434       UK    2028    $ 799,022       $ 770,249   

Pool 2

      2         156       UK    2037      332,105         301,891   

Pool 3

      15         1,243       UK    2037      2,069,582         1,803,289   

Pool 4

      3         237       UK    2024      348,204         287,192   

Pool 5

      1         81       UK    2039      126,375         113,571   

Pool 6

      1         114       UK    2039      231,302         187,871   

Pool 7

      29         2,082       US    2028      1,464,500         1,514,966   

Pool 8

      4         310       US    2032      467,033         439,322   

Pool 9 3)

      12         872       US    2030      1,169,054         1,098,377   

Pool 11

      2         152       US    2038      154,463         144,581   

Pool 13/14

      4         298       US    2037      374,418         397,428   

Pool 15

      7         601       US    2030      748,123         710,601   

Pool 16

      8         621       US    2030      732,600         677,479   

Pool 17

      3         229       US    2030      257,189         233,394   

Pool 18

      4         348       US    2037      378,501         278,303   

Pool 20

      6         598       US    2037      449,835         607,983   

Pool 22

      1         76       US    2038      104,062         107,325   

Pool 23 5)

      1         83       US    2034      —           —     

Pool 24

      5         342       US    Various      400,455         387,246   

Pool 25 5)

      0         240       US         —           —     
  

 

 

     

 

 

           

 

 

     

 

 

  

Total Joint Ventures

      113         9,117             $ 10,606,823       $ 10,061,068   
  

 

 

     

 

 

           

 

 

     

 

 

  

 

Managed Communities

                              Management Fees 2)  
                               Three Months Ended  
                          Average    March 31,  

Owner

    Comm.      Units      Country      Maturity Date    2012      2011  

Cooperative 7)

     2         684         US       2012 and 2034      637,141         629,277   

HCPI 4)

      46         4,511         US       2028-2038      4,865,473         4,142,882   

Inova

      4         313         US       2013      390,632         476,207   

Ventas

      79         6,507         US       2034-2037      6,502,899         5,586,048   

Wedum Foundation

      4         235         US       2013      242,590         243,041   

Other

      4         426         US       Various      381,856         378,175   
  

 

 

     

 

 

           

 

 

     

 

 

  

Total Managed

      139         12,676             $ 13,020,591       $ 11,455,630   
  

 

 

     

 

 

           

 

 

     

 

 

  
                 
  

 

 

     

 

 

           

 

 

     

 

 

  

Total JV and Managed Communities

      252         21,793             $ 23,627,414       $ 21,516,698   
  

 

 

     

 

 

           

 

 

     

 

 

  
                 
              

 

 

     

 

 

  

Other/Terminated Management Fees 6)

                $ 687,495       $ 2,697,137   
              

 

 

     

 

 

  
                 
              

 

 

     

 

 

  

Total Management Fees

                $ 24,314,909       $ 24,213,835   
              

 

 

     

 

 

  

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 five single property joint ventures.
2) The majority of our management contracts contain performance based termination tests with certain limited cure rights.
3) Contracts contain at-will termination provisions for a specified fee to Sunrise.
4) The contracts relating to one portfolio of 14 properties contain at-will termination provisions for a specified fee to Sunrise.
5) No management fees are associated with this venture as these fees are eliminated due to accounting for this venture under the profit sharing method.
6) Includes $1.5 million for the three months ended March 31, 2011 from the previous AL US venture.
7) The owner has notified us that they will not seek to extend us as manager with respect to the community with a 2012 contract maturity. We earned approximately $1.5 million in management fees from this community in 2011.

 

5

Sunrise Senior Living

Consolidated and Joint Venture Debt

Scheduled Debt Maturities as of March 31, 2012

 

(dollars in thousands)                                         

Consolidated Debt

                                         
     Ownership     Number of      Maturity    Weighted Aver.     Outstanding     In     SRZ

Consolidated Communities

    Percentage     Communities      Date 4)    Interest Rate     Debt     Default     Guaranty

AL US Development Portfolio

      100.00 %      15       Jun 15      4.30 %    $ 331,731      $ —        N

Pool 19 7)

      100.00 %      3       Jan 13      5.00 %      62,479        62,479      N

Pool 21

      100.00 %      2       Oct 12      6.50 %      57,189        —        Y

Connecticut Ave

     100.00 %      1       Mar 19      4.66 %      33,932        —        N

Santa Monica

      100.00 %      1       Mar 19      4.66 %      21,068        —        N

Monterey

      100.00 %      1       Jun 13      3.50 %      21,022        —        N

Quebec

      100.00 %      3       Feb 14      5.00 %      46,873        —        Y

Cedar Parke

      0.00 %      1       Jul 29      0.55 %      21,385        1,365      Y
    

 

 

          

 

 

    

 

 

    

Consolidated Community Debt

        27            $ 595,679      $ 63,843     
    

 

 

          

 

 

    

 

 

    

Revolving Credit Facility

      100.00 %      0       Jun 14      5.49 %    $ 39,000      $ —        Y

Convertible Notes

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

Restructure Note

      100.00 %      0       Oct 12      0.00 %      26,255        —        Y

Restructure Note

      100.00 %      0       Apr 14      0.00 %      4,317        —        Y
    

 

 

          

 

 

    

 

 

    

Other Consolidated Debt

        0            $ 155,822      $ —       
    

 

 

          

 

 

    

 

 

    

Total Principal Amount of Debt

              $ 751,501      $ 63,843     

Less: Fair Value Adjustments

                (13,602 )      (818 )   
    

 

 

          

 

 

    

 

 

    

Total Consolidated Debt

        27            $ 737,899      $ 63,025     
    

 

 

          

 

 

    

 

 

    

 

Joint Venture Entities

                                           
     Ownership     Number of      Maturity    Weighted Aver.     Outstanding      In      SRZ

Venture Pool 1)

    Percentage  2)     Communities      Date 4)    Interest Rate     Debt      Default      Guaranty

Pool 1

      20.00 %      5       May 13      4.64 %    $ 131,760       $ —         N

Pool 2

      9.81 %      2       Jan 15      5.13 %      57,788         —         N

Pool 3 6)

      9.81 %      15       Jul 14      3.41 %      639,125         639,125       N

Pool 4

      20.00 %      3       Nov 2012 - Jun 2013      2.43 %      90,499         —         Y

Pool 5

      16.90 %      1       Dec 12      2.13 %      29,616         —         Y

Pool 6

      16.90 %      1       Apr 13      3.88 %      35,076         —         Y

Pool 7

      40.00 %      29       Feb 14      6.76 %      434,940         —         N

Pool 8

      20.00 %      4       Apr 14      5.89 %      75,694         —         N

Pool 9

      25.00 %      12       Jan 14      6.00 %      182,616         —         N

Pool 11

      30.00 %      2       Mar 13      5.23 %      35,419         —         N

Pool 13/14

      20.00 %      4       Jan 19      4.98 %      58,500         —         N

Pool 15

      32.12 %      7       Nov 18      4.80 %      120,000         —         N

Pool 16

      20.00 %      8       Jul 12      6.50 %      109,350         —         Y

Pool 17

      20.00 %      3       Dec 12      6.50 %      41,794         —         Y

Pool 18

      20.00 %      4       Jul 2012 - Dec 2012      3.25 %      75,608         —         Y

Pool 20

      30.00 %      6       Apr 14      4.58 %      104,549         —         N

Pool 22

      20.00 %      1       Jun 12      7.00 %      14,561         —         Y

Pool 23 3)

      30.00 %      1       Dec 11      5.74 %      29,741         29,741       Y

Pool 24

      10%-50 %      5       Sep 2012 - Apr 2022      6.03 %      45,751         —         N

Pool 25 3)

      30.00 %      0       Sep 11      11.75 %      116,970         116,970       Y
    

 

 

          

 

 

     

 

 

     

Total Joint Ventures 5)

        113            $ 2,429,357       $ 785,836      
    

 

 

          

 

 

     

 

 

     

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 five single property joint ventures.
2) In certain situations, our respective percentage shares of cash distributions, profits or losses, are not equal to our ownership percentage.
3) As of March 31, 2012, loans of $117.0 million for the residential condominium venture and $29.7 million for the assisted living venture are both in default. We have accrued $4.2 million in default interest relating to these loans. In February 2012, the lenders for the residential condominium venture commenced legal proceedings necessary to foreclose on the assets of the residential condominium venture. We are still in discussions with the lender for the assisted living venture regarding the default on the loan.
4) Maturity dates assume exercising extensions allowable under the loan documents.
5) Sunrise’s share of joint venture debt as of March 31, 2012 is $541 million.
6) The venture’s mortgage loan is in default at March 31, 2012 due to a violation of certain loan covenants. The mortgage loan balance was $0.6 billion as of March 31, 2012. The loan is collateralized by 15 communities owned by the venture located in the United Kingdom. The lender has rights which include foreclosure on the communities and/or termination of our management agreements. The venture is in discussions with the lender regarding the possibility of entering into a loan modification. During 2011, we recognized $9.0 million in management fees from this venture. Our United Kingdom Management segment reported $1.6 million in income from operations in 2011 and $0.7 million for the first quarter of 2012. Our investment balance in this venture was zero at March 31, 2012.
7) Currently under maturity default, but the lender has agreed to a forbearance that effectively extends the term of the loan through January 2013 and imposes a cash sweep on the communities net of a working capital reserve.

 

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,  
     2012     2011  

Consolidated Community NOI

    $ 15,537      $ 12,217   

Leased Community NOI

      19,489        20,927   
  

 

 

    

 

 

  

Total Consolidated NOI

      35,026        33,144   

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

      —          (7,583 ) 

Less: Santa Monica NOI (during period the venture was not consolidated)

      (417 )      (682 ) 

Less: Pool 19 NOI (during period the venture was not consolidated)

      (1,312 )      (1,006 ) 

Less: Pool 21 NOI (during period the venture was not consolidated)

      (684 )      (447 ) 

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

      4,222        3,605   
  

 

 

    

 

 

  

Adjusted Total Consolidated NOI

      36,835        27,031   

Less: Consolidated Community Lease Expense (includes $4.3 million for the three months ended March 31, 2012 and $3.9 million for the three months ended March 31, 2011 of lease expense from consolidated New York communities leased from a venture)

      (19,236 )      (18,697 ) 

Less: Depreciation and Amortization

      (10,758 )      (7,330 ) 

Less: Impairment of long-lived assets

      (555 )      —     
  

 

 

    

 

 

  
   $ 6,286      $ 1,004   
  

 

 

    

 

 

  

Plus: Other Sunrise Revenue

     

Management fees

      24,315        24,214   

Ancillary fees

      7,926        7,597   

Professional fees from development, marketing and other

      200        323   

Reimbursed costs incurred on behalf of managed communities

      174,073        185,865   
  

 

 

    

 

 

  

Total Other Revenue

      206,514        217,999   

Less: Other Sunrise Expense

     

Ancillary expenses

      7,458        7,004   

General and administrative

      28,641        32,389   

Carrying costs of liquidating trust assets

      583        407   

Allowance for uncollectible receivables from owners

      223        398   

Costs incurred on behalf of managed communities

      174,495        186,384   

Misc. Expense for Non-Operating Communities

      (235 )      265   
  

 

 

    

 

 

  

Total Other Expense

      211,165        226,847   
  

 

 

    

 

 

  
    
  

 

 

    

 

 

  

(Loss) income from operations

    $ 1,635      $ (7,844 ) 
  

 

 

    

 

 

  

 

7

SUNRISE SENIOR LIVING, INC.

Reconciliation For Consolidated Community Operating Revenue

Consolidated Community Operating Revenue

Community operating revenue 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 resident fees for consolidated communities. Management considers community operating revenue to be a useful measure in analyzing comparable revenue growth.

The following table reconciles community operating revenue from consolidated communities to resident fees for consolidated communities.

 

(in thousands)             
     Three Months Ended  
     March 31,  
     2012     2011  

Consolidated Community Operating Revenue

    $ 47,085      $ 42,730   

Leased Community Operating Revenue

      76,341        76,227   
  

 

 

    

 

 

  

Total Consolidated Community Operating Revenue

      123,426        118,957   

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

      —          (20,495 ) 

Less: Santa Monica Revenue (during period the venture was not consolidated)

      (1,145 )      (1,634 ) 

Less: Pool 19 Revenue (during period the venture was not consolidated)

      (3,673 )      (3,428 ) 

Less: Pool 21 Revenue (during period the venture was not consolidated)

      (2,381 )      (2,281 ) 

Plus: Revenue from Consolidated New York communities leased from a venture (Revenue is reflected in Joint Venture revenue)

      10,969        9,676   
  

 

 

    

 

 

  

Adjusted Total Consolidated Revenue

      127,196        100,795   

Endowment Amortization

      1,960        1,504   
  

 

 

    

 

 

  

Resident Fees for Consolidated Communities

    $ 129,156      $ 102,299   
  

 

 

    

 

 

  

 

8

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SUNRISE SENIOR LIVING INC Reports