Sunrise Reports Preliminary Selected Financial and Operating Data for Fourth-Qu...(fourth quarter to $153.82. Same-communit...),Health

average daily rate for communities in ventures increased 5.8 percent

over the prior-year fourth quarter to $156.85, while same-community

average daily rate for consolidated communities increased 7.9 percent

over the prior-year fourth quarter to $148.27. Rates grew over the

prior-year fourth quarter primarily through increases in resident fees

for new and existing residents. Rates decreased slightly from the

third quarter of 2007 average daily rate of $155.48 due to the

integration of The Fountains communities into the same-community

portfolio. Of these communities, nine communities offer entrance fee

models, which require higher up-front payments and lower monthly rates.

-- Same-community operating expenses decreased 3.4 percent in the fourth

quarter 2007 to $198.3 million, as compared to $205.2 million in the

prior-year fourth quarter. Same-community operating expense excludes

management fees paid to Sunrise with respect to same-community ventures

in order to make comparisons between consolidated and venture

communities consistent. Same-community expense for communities in

ventures decreased 2.4 percent for the quarter and same-community

expense growth for consolidated communities decreased 5.0 percent. The

decrease was due to expense credits of approximately $15.4 million

primarily related to prior periods. Following the Company's recent

review of its self-insurance and health and dental benefits programs,

the Company concluded that, based on historical claims levels and other

information, existing reserve levels for these programs were higher

than needed to cover projected claims, so a portion of the excess

reserves was credited back to the communities. Excluding these

credits, same-communi
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