Sunrise Reports Preliminary Selected Financial and Operating Data for Third-Qu...(ommunity operating expenses increased 5 ...),Health

year third 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 growth for communities

in ventures was 4.1 percent for the quarter while same-community

expense growth for consolidated communities was 6.3 percent. The

increase in same-community operating expense was due to increases in

labor expense, property insurance premiums and repairs and maintenance

expense. Operating expense growth for the consolidated portfolio is

higher than ventures due to the fact that these communities tend to be

older and are largely not purpose-built by Sunrise.

-- The same-community occupancy rate was 91.4 percent for the quarter

compared to 92.5 percent in the prior-year third quarter. For

communities in ventures, the same-community occupancy rate was 92.8

percent, down from 94.2 percent in the prior-year third quarter. For

consolidated communities, the occupancy rate was 89.3 percent, down

from 90 percent in the prior-year third quarter. As disclosed in the

second quarter of 2007, while the Company still considers these

occupancy rates to be strong, the Company has identified several

existing markets and select communities that have shown declines in

occupancy and has put plans in place to address these markets.

-- At quarter-end, Sunrise had approximately $243 million of cash and cash

equivalents. The Company also had approximately $190 million in debt.

Borrowing proceeds were largely used to invest in real estate and

development ventures. During the month of October, the Company paid

down $28 million of net borrowi
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