Sunrise Senior Living, McLean, Va., said it will restate its financial results for the past three years and expects a cumulative reduction in net income of $60 million to $110 million for 1999 to 2005; adjustments for the earlier periods will be reflected in the company's 2003 opening balance. The restatements, part of a previously announced accounting review, relate to when net income from real estate sales is recognized. Sunrise said it expects to recapture the majority of the reduction in net income this year and next. The company will issue another update on its accounting review Aug. 8.
Separately, Sunrise said it will acquire the long-term management contracts of three continuing-care retirement communities in the San Francisco Bay Area, as well as ownership of one of the communities, for about $28 million. The sellers are Raiser Resources and Raiser Senior Services. The communities have combined revenue of about $10 million. Sunrise will manage 17 senior-living communities in the Bay Area after the transaction. As of June 30, it operated 422 senior-living communities in North America, Germany and the United Kingdom, and had 43 additional communities under construction. -- by Jessica Zigmond