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While residential and commercial construction remains in the doldrums, the senior housing market remains unaffected. Sunrise Senior Living (NYSE: SRZ) is enjoying an expanding market, opening seven new communities in 4Q 2007 alone. Sixteen more new senior living communities are in the works for 2008, to join the 22 new communities Sunrise opened in 2007. 4Q revenue under management increased 7% to $616.7 million and FY2007 revenue under management increased 8% to $2.37 million. Revenue growth was a result of a combination of acquisitions of existing senior communities, building new communities, as well as a 5.8-7.9% increase in the average daily rate in existing communities.

Presently, Sunrise Senior Living is enjoying a trifecta. The number of revenue producing senior communities is on the increase. The company usually hits its 95% occupancy rate within the first 12 months if not sooner, and the average daily rates paid by an increasing number of those residents is also going up. More people paying more money. For an investor, what's not to like?

Due to accounting restatements for its Greystone subsidiary, Sunrise Senior Living is currently in the midst of a $140 million reduction in net income for the period 1996-2005. By the end of 2008, the company predicts the accounting restatements will no longer be a drag on the balance sheet, which will then allow it to expand its senior living offerings in the U.S., the U.K. and Germany. Currently the stock trades at under $25. There will be no shortage of seniors in the next few years looking for attractive housing options, so now might be a good time to investigate investments in the senior housing market.

It's a well-known fact that corporate governance in general, and annual meetings in particular, are a complete joke. If you believe in shareholder democracy, then please give me the tooth fairy's email address.

But Sunrise Senior Living, Inc. (NYSE: SRZ) has taken the corporate governance parody to astounding heights. On October 16th, 17 months after its last annual meeting, and after options scandals, accounting scandals, and the firing of a CEO among other thing, shareholders will convene for the annual meeting.

The New York Times piece on this travesty sums it up: Welcome to the annual meeting. Now be quiet. Only three directors will be standing for re-election, and no other business issues will be allowed to be discussed.

And we thought the shareholders owned the company, and the board/officers were supposed to be held accountable to them. Hah!

We can only hope Sunrise's assisted-living facilities treat their residents with more respect than the company treats its shareholders.

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