SRZ: Update: Peek into 3rd Qtr Reports

Sunrise Senior Living share price (SRZ) Leaped with the 8 million refinancing deal stock moved from 75 cents to 2.2USD 193% jump.

The great part of the story is SRZ management had already declared that 8 million deal was in the pipeline for Q4 2008 in their Q3 2008 meeting

"potential refinancings related to the Company's ventures resulting in estimated net proceeds of $8 million projected to occur in the fourth quarter of 2008"

Let us look at if there are any such pleasant surprises hidden in the Q3 2008 reports.

• sale of 15 land parcels related to abandoned development project with a book value of $74 million and related debt of $31 million projected to occur throughout 2009;
• sales of properties that are currently wholly-owned to a venture with net proceeds of approximately $10 million projected during 2009
• successful completion of bond financing for non-profit development projects being developed by the Company's subsidiary Greystone, of which at least two are forecasted to close in late 2008 or early 2009, generating anticipated net proceeds of $11 million.

The way it looks to me:

- **sale of 15 land parcel is expected to be positive though proceeds of 43 million might not be possible maybe 30 million

- **Sale of property and 10 million proceeds likely.

- **Greystone funding looks unlikely.

**P.N.: These are my understanding/readings of Q3 report and not based on any information source.

Additional points dicovered are:

• Companies land purchase commitments are terminable by Sunrise and the $13.1 million in land deposits (included in other assets on the Company's consolidated balance sheet) are refundable.
• Additional tax refunds of up to $27 million are anticipated to be received by mid-2009, subject to the filing of the Company's tax returns for 2008