Good day and welcome to the Sunrise Senior Living Third Quarter Earnings Conference Call, today's call is being recorded. At this time I would like to turn the conference over to Ms. Meghan Lublin, please go ahead ma'am.

Good morning and welcome to Sunrise Senior Living Investor Conference Call, this is Meghan Lublin, Sunrise's Vice President of Investor Relation. Before we begin let me remind you this call is been recorded and that Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995 apply to this conference call. During the course of this call the company will make various remarks concerning management's expectations, predictions, plans and prospects that constitute forward-looking statements. Actual results may differ materially from those anticipated by these forward-looking statements. Any forward-looking statements reflect management's current view only and the company undertakes no obligation to revise or update such statements in the future. I will now turn the call over the Julie Pangelinan, Sunrise's Chief Financial Officer.

Good morning. I'm CFO and I would lay out our financial results for the quarter. Today I am particularly happy to do so. Our occupancy for the third quarter 2010 in our comparable communities was 87%, which was up 80 basis points from comparable communities for the second quarter of 2010 and that’s 40 basis points from the third quarter of 2009. September experienced occupancy of 87.5% which is our highest occupancy level since February of 2009. Including October, we've had five consecutive months of positive occupancy growth. Excluding the 27 communities owned by HCP on which we will be transitioning management on November 1 our occupancy with 87.8% for the quarter. Our average daily revenue per occupied unit in our comparable communities increased by 2.4% in the third quarter to $202.05 compared to $197.28 in 2009. As a reminder we share our results with and without the impact of foreign exchange rate to prevent our data in a manner consistent with others in the industry that operate predominantly in the US. If we exclude the impact of foreign exchange rates on our average daily revenue per occupied unit it increased 2.7% year-over-year. Our comparable community revenue for our 495.1 million for the quarter an increase of 2.9% compared to the prior year period. Excluding the impact of foreign exchange rates our third quarter revenue increased by 3.2% to 496.6 million year-over-year. Our comparable community expenses were 353.7 million this quarter an increase of 3.3% as compared to the prior year period. Excluding the impact of foreign exchange rates, these operating expenses increased 3.7% year-over-year. The increase in expenses this quarter was primarily driven by utilities and collective labor. Now I will turn to our financial results for the quarter. We reported revenues of 383.3 million for the third quarter…

Thanks Julie. Continuing with our previous quarterly investor call precedent I will only update you on our ongoing restructuring events arising since the last quarter. The main topics for this call are: number one, HCP settlements; number two, Ventas joint venture interest sale and management contract restructure; number three, Germany in a liquidity trust and number four loan balances maturities in the falls. Number one: HCP, in august 2010 Sunrise entered into a settlement and restructuring agreement with HCP regarding certain senior living communities owned by HCP and operated by Sunrise. Pursuant to agreements, Sunrise gave HCP the right to terminate the company as manager of 27 communities owned by HCP. The agreement also provided for the release of all claims to an HCP Sunrise and third party tenant including the settlement of a ongoing litigation between the parties. On funding agreement, HCP made a cash payment to Sunrise of $40 million. As of November 1, 2010 the management of all 27 committees has been transitioned to the new third-party operators and HCP has paid Sunrise the final $10 million due under documents. To the part of this agreement as noted in our 8-K filing on September 3 where they filed a settlement and restructuring agreement signed by HCP and us. We agree to co-operate with HCP to negotiate, to restructure the leasing and management structure of up to 35 facilities to implement possible alternative structures pursuant to their idea rules but no net adverse impact on us. The 27 transition properties were generally lower performing and generally would not meet our ongoing underwriting standards of the 27 10 ha skilled nursing communities, eight were Maple Ridge communities with a less efficient multi-cottage design in a balance for Brighton Gardens communities many of which were in not for markets for…

Julie and Greg described the company whose turnaround is underway and real. This is not an exercise in financial rebalancing but an across the board drives forward. Our team, thanks to the best brand in Senior Living, a very strong paying spirit as we determine long-term effort has steadily solidified our balance sheet restored our fighting culture and positioned our return to profitability and we expect growth. Greg sighted the latest two transactions with both HCP and Ventas and their important effect on us. These are the two leading capital partners in Senior Housing and we are proud of both relationships. Well in both cases we had to work through difficulties, we have added and are determined to continue to add value to our portfolios and to our product. We are very pleased to be able to move forward and we do what we need to do to enjoy both a long-term relationship and one that maximizes value for both companies. As Greg said with HCP, we now manage a very strong growing high margin portfolio. With Ventas, where we have always enjoyed a strong partner relationships, we are very pleased to continue to manage the entire portfolio and expect to do so for many years. As Julie detailed, Sunrise has taken advantage of the stabilizing economy and the many organizational changes we've made to enjoy its 5 straight months of occupancy gains along with the overall revenue growth. Our overhead has steadily declined, with our transaction expenses as Julie mentioned is now approaching a forecast of $100 million run rate. Our overall and lead course debt levels have both declined great. Our line bank balance as Greg mentioned is now at 0, a 100% reduction from our recent high of $95 million. Now that our only relationship with our…

Thanks and congratulations on a good quarter and a lot of progress. I just had a couple things. On the debt, you went through it and there's still something else, sort of yet to close. So do you have a sense as to where you're going to end up at year-end in terms of remaining debt balances? I was trying to do the adds and subtract.

The remaining debt balances?

Yes.

Where we are today with the line at the end of the quarter was $8 million and that’s a zero. And the other things that we had anticipated doing are reflected just looking down the list to make sure this is accurate. I believe are reflected into our consolidated debt balances.

Okay.

With the pay downs that we have subsequent to year end, we are below $200 million and we close that when the Ventas transactions closes we expect to use some of those proceeds to further pay down debts.

Okay. So the only thing is yet to be done that we know of is Ventas. Okay. And just I was wondering if we could get a little more color on the off balance sheet again. You have made a lot of progress there. If I heard you, Fox Hill is now done; you're down to $462 million or so that's in very in default or whatever on the off balance sheet stuff, any big chunk there or just its sort of kind of JV by JV. Any more color there would be helpful?

It is a few JVs and we have a couple of loan pools in this joint ventures that we are working through. But an aggregate now as I said earlier on the call or just ramp $460 million. And we keep chipping away at those.

Okay.

And just push them through and extend and remove the defaults.

Okay and I guess I was wondering just about, obviously there's been the Ventas sort of atria and also HCN Merrill, so the JV's valuations certainly based on those couple deals probably look more attractive than they have been. Are there opportunities to basically sell or refi JVs and not only maybe restructure debt but perhaps generate, I think you alluded to increased ownership or generate some further gains out of that kind of stuff?

As we've said now for a few quarters we are looking at opportunities where we can own more of our assets. And we think that there are possible opportunities in some of our JVs to reconstruct where we are, so we are possible where we are going to look to do that if we think we have a proven record of adding value to real assets. So we like that part of the business.

And basically, I mean, I guess I'm reading the capital environment that kind of opportunity which you know you had done in the past may be reopening. Is that sort of an accurate read do you think?

Well certainly like to the atria and other transactions we see we see like in the capital markets just the other thing that’s great is that we have. We have pools of extremely high performing, high-margin assets. So that certainly makes it a lot easier. We think some of our portfolios are absolutely best of class.

Okay. And just wanted some words quick from you, Mark. Is the portfolio we're looking at now pretty much sort of what you are going to run with for the of 320, any other sort of assets that might move out of that or is it relatively stabilized at this point?

We don’t anticipate any exchange in that number so we think this is the size of the company and unless we get there.

Sure. And then just last thing, I guess I was wondering if we can get a little more color on sort of occupancy rate, your competitive environment. I mean certainly by the tone of your comments, you know, a lot of the restructuring now behind you, you're getting sort of more combative, or whatever, I don't know if that was your word but something like that, fighting spirit. You know, how do you see Sunrise in kind of a competitive position at this point and just kind of the sense of occupancy rate, where do we see it sort of going forward?

I can’t forecast where occupancy is going to go. My point is that when a company gets stronger, it gets stronger overall. Its not enough to be stronger in pockets. And I think that’s true to Sunrise and I think that that does in a competitive world, I'm not ashamed to say lead to a fighting spirit and we should be competing for market share based on our brand, based on the care that we give to our residence, based on the 30 years of mission that was well articulated and built by Paul and Terry and many of the people. So we just think that that leads to increasing strength and if the economy is stable to growing we think we will atleast get our share of the pie.

(Operator Instructions) And it appear we have no further questions at this time.

Great then we thank everybody for as I said earlier on behalf of the team your support and we wish you all a great day and holiday season.