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
|SOURCE Sunrise Senior Living, Inc.|
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