Sunrise Assisted Living of McLean, which operates hotel-style residences for seniors, boosted its earnings outlook for the fourth quarter and 2002, crediting the accelerated sale of properties.
Sunrise said it sold 11 facilities for $170 million to investors advised by Macquarie Capital Partners, with Prudential Financial providing $130 million in funding. Sunrise also made a pact with the California Public Employees' Retirement System, the biggest U.S. pension fund, to develop up to a dozen elderly living centers. In both deals, Sunrise plans to keep a 20 percent ownership stake and operate the senior centers.
Sunrise predicts earnings of 81 cents to 83 cents per share in the fourth quarter, above the forecast of 76 cents to 78 cents it gave in November. The company predicts earnings of $2.32 to $2.35 per share for the full year, up from its November forecast of $2.27 to $2.30.
Sinclair Broadcast Group, a television broadcasting company that owns and operates WBFF-TV and WNUV-TV in Baltimore, said it is making a $20 million cash investment, representing a 17.5 percent equity interest in convertible preferred stock, in Summa Holdings, which owns car dealerships, tire franchises and a leasing company. Because David D. Smith, Sinclair's president and chief executive, holds a significant amount of Summa stock and sits on the company's board, an independent committee negotiated the terms of the investment. Summa plans to use the proceeds to acquire car dealerships and is committed to maintaining a certain amount of advertising on Sinclair TV stations. Summa's businesses overlap with WBFF and WNUV, so Sinclair will not be involved in Summa's daily management or operations. It will, however, hold one board seat in addition to that held by Smith.
American Capital Strategies of Bethesda said it has exited its year-old, $25 million investment in Middleby, the maker of food-service equipment, earning $2.4 million in long-term capital gains and achieving a 37 percent compounded annual return. Middleby repaid its original note and $500,000 worth of PIK notes; it also bought American Capital's warrants. With its latest action, American Capital gained 7 percent more than the most recent quarterly valuation of these assets. This is its third exit this quarter, its 11th this year and its 19th since its initial public offering in 1997. Its total exits equal $220 million on $1.5 billion of investments.
EPlus, a Herndon business services firm, said it has bought 522,833 shares of its common stock in privately negotiated transactions since it announced its stock repurchase plan in October. The total cost for the purchases was $3.7 million. As of last week, ePlus had about 9.6 million shares issued and outstanding, compared with 10 million shares as of Nov. 12. The repurchase plan authorized the buyback of up to 3 million shares of common stock worth up to $7.5 million through next October.
Mills, the Arlington-based shopping mall company, said its redevelopment plan for land in New Jersey's Meadowlands Sports Complex received the backing of the National Football League's New York Giants, one of the sports teams that calls the complex home. According to the company, the $1.3 billion plan, submitted jointly by Mills and Mack-Cali Realty, is the only one of three plans under consideration to redevelop the 106-acre site to receive the Giants' backing. Mills said the Giants believe that the proposal, which includes a hotel, a Minor League Baseball stadium, and a venue for indoor surfing and skiing, would be the best to help secure the 2008 Superbowl for the Meadowlands. The other proposals were submitted by the Westfield shopping center organization and a partnership between developers Forest City Ratner and Hartz Mountain Industries. Mills said the New Jersey Sports and Exposition Authority will choose a developer by the end of January for the site, now occupied by the Continental Arena
Compiled from reports by the Associated Press, Bloomberg News, Dow Jones News Service and Washington Post staff writers