Sunrise Announces Agreement to Assume Management Of 22 EdenCare Communities

Category:

Monday, October 20, 2003 8:08 am EDT

Dateline:

MCLEAN, Va.

Public Company Information:

NYSE:
SRZ
"We are looking forward to welcoming over 1,000 EdenCare employees to the Sunrise team and between now and closing will focus on working with EdenCare to ensure a smooth transition so the EdenCare residents continue to receive the high quality care and services they have come to expect."

Sunrise Senior Living, Inc. (NYSE: SRZ), today announced that it has reached an agreement to become the manager of 22 EdenCare Senior Living Services ("EdenCare") communities, located in the southern United States. Sunrise expects to assume management of the 22 communities, with a resident capacity of approximately 2,000, in late November 2003.

EdenCare, based near Atlanta, Georgia, is an owner and operator of senior housing. The Company was founded in 1996 and currently operates in seven states (Alabama, Florida, Georgia, Kentucky, North Carolina, South Carolina and Texas). EdenCare announced today that it has executed an agreement to sell a 100 percent interest in 25 of its communities to a real estate investor, which has selected Sunrise to manage 22 of the communities. The 22- property portfolio consists of 19 assisted living and Alzheimer care communities (ranging from 40 to 90 units) and three full service campuses providing independent living, assisted living and Alzheimer care (ranging from 190 to 210 units).

The transaction is expected to close by the end of November 2003, at which point Sunrise will begin earning management fees for operating the 22 communities (one each in Alabama and North Carolina, six in Georgia, two in Kentucky, five in South Carolina and seven in Texas). Sunrise will have no ownership interest in the communities, which currently generate approximately $50 million in annual revenues at a 75 percent occupancy level. Given the anticipated closing date, Sunrise does not expect this transaction to have a material effect on its 2003 earnings guidance. The company will incorporate its expectations for this portfolio in its 2004 earnings guidance, which will be provided in the company's third-quarter 2003 earnings release.

"This exciting new management contract opportunity is in-line with our strategy to grow our presence in existing markets while introducing our senior care services into new locations," said Paul Klaassen, chairman and CEO of Sunrise Senior Living. "We are looking forward to welcoming over 1,000 EdenCare employees to the Sunrise team and between now and closing will focus on working with EdenCare to ensure a smooth transition so the EdenCare residents continue to receive the high quality care and services they have come to expect."

Sunrise Senior Living is the nation's largest provider of senior living services. The McLean, Va.-based Company, which employs more than 30,000 people, has over 360 senior living communities either open or under construction in the United States, United Kingdom and Canada with a combined resident capacity of more than 40,000. Sunrise communities offer a full range of personalized senior living services, from independent living, to assisted living, to care for individuals with Alzheimer's and other forms of memory loss and nursing and rehabilitative care. Sunrise's senior living services are delivered by staff trained to encourage the independence, preserve the dignity, enable freedom of choice and protect the privacy of residents. To learn more about Sunrise please visit http://www.sunriseseniorliving.com/.

Estimates of future earnings are by definition, and certain other matters discussed in this press release may be, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although Sunrise believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, there can be no assurances that its expectations will be realized. Sunrise's actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including, but not limited to, development and construction risks, acquisition risks, licensing risks, business conditions, competition, changes in interest rates, the Company's ability to execute on its sale/manage back program, market factors that could affect the value of the Company's properties, the risks of downturns in economic conditions generally, success in integrating Marriott Senior Living Services operations, satisfaction of closing conditions and availability of financing for development and acquisitions. These and other risks are detailed in the Company's annual report on Form 10-K filed with the Securities and Exchange Commission. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

Web site: http://www.sunriseseniorliving.com/

Contact:

Sunrise Senior Living, Inc.
Charles A. Post
Senior Vice President, Corporate Strategy and Capital Markets
+1-703-273-7500
or
Jamison Gosselin
Manager, External Communications
+1-703-744-1841

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