UPDATE 1-Sunrise Senior Living Q1 loss narrows

* Q1 loss/shr $0.36 vs loss $0.66/shr, a year ago

* Revenue rises 2 pct to $404.4 mln

May 8 (Reuters) - Sunrise Senior Living Inc (SRZ.N) posted a narrower quarterly loss helped by lower expenses and sales of its non-core assets.

Sunrise recorded a net income from discontinued operations of $14.0 million in the first quarter, mainly from the sale of Greystone subsidiary.

The company also said that a venture in which it has a 20 percent stake, sold three of its UK communities in the quarter.

In March, Sunrise, which provides senior living services, said it may have to reorganize under bankruptcy protection if it cannot reach agreements with lenders to restructure debt.

As of March 31, Sunrise had $33.9 million of unrestricted cash, and debt of about $622.5 million, of which $196.6 million is scheduled to mature in 2009 and $265.8 million of debt was in default.

For the first quarter, the company reported a net loss of $18.2 million, or 36 cents a share, compared with a loss of $33.1 million, or 66 cents a share, a year ago.

Revenue rose 2 percent to $404.4 million. For the quarter operating expenses fell 3 percent to $445.9 million.

Shares of the company closed at $2.62 Thursday on the New York Stock Exchange.

For the alerts, double-click [ID:nWNAB6351] (Reporting by Anand Basu in Bangalore; editing by Akshay Lodaya)