assets and recapitalizations the substantial majority of the income and
gains deferred in the restatement will be recaptured during the three-
year period of 2006-2008. More than half of the cumulative net income
impact of the adjustments (excluding stock option expense and Greystone
adjustments) has already been recaptured for the period through
December 31, 2007.
The Company has ventures in the United Kingdom and Germany to develop
and operate senior living communities.
-- United Kingdom. As previously disclosed, during the third quarter of
2007, this venture, in which the Company has a 20 percent equity
interest sold six communities to a venture in which the Company has a
10 percent interest. The Company received cash proceeds of
approximately $42 million related to the transaction. In addition, the
Company received approximately $47 million resulting from a loan to the
venture collateralized by a forward-sale purchase agreement for nine
additional communities. In the fourth quarter of 2007 the Company
completed the first of the forward-sales and will receive additional
cash proceeds of $3 million.
-- Germany. As previously disclosed, the Company expects to fund cash
shortfalls related to operating deficit guarantees related to its
Germany venture in which it has a 20 percent interest. To date,
Sunrise has funded approximately $29 million under these guarantees and
other loans, and expects to fund an additional net $60 million through
2012, the date at which the Company estimates that no further funding
will be required. The Company expects to record a pre-tax charge of
$50 million as it does not expect full repayment of the loans resulting
from the funding. The Company has now determined t
|SOURCE Sunrise Senior Living, Inc.|
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