Slide 1: Table of Contents
Summary 3 Heat Map - Triple-Net Master Lease Profile 5 Capitalization 6 Indebtedness and Ratios 8 Investments, Commitments and Dispositions 10 Portfolio Portfolio Summary 13 Senior Housing 18 Post-Acute/Skilled 24 Life Science 28 Medical Office 31 Hospital 33 Unconsolidated Joint Ventures 34 Entranc
Slide 2: The Numbers Summary
THE NUMBERS Summary(1) As of and for the quarter ended June 30, 2016, dollars in thousands, except per share data PORTFOLIO INCOME 4% Hospital Three Months Ended June 30, 2016 2015 14% Medical office Diluted FFO per common share 0.71 0.65 Diluted FAD per common share 0.72 0.69 42% Senior housing Rev
Slide 3: Portfolio Summary
Portfolio Summary As of and for the quarter ended June 30, 2016, dollars in thousands Property Portfolio Post-acute/skilled 4,285,510 109,363 Medical office 3,591,517 67,020 $ 21,230,433 $ 445,786 Senior housing $ 59,301 $ 16,474 $ 792,226 $ 32,787 Senior housing(2) $ 16,560 $ — Medical office 60,54
Slide 4: Heat Map - Triple-Net Master Lease Profile
HEAT MAP Triple-Net Master Lease Profile(1) 1.3% 0.4% 0.4% 0.1% 0.7% 0.1% 0.2% 0.7% 0.2% 0.5% 0.6% 0.8% 1.3% 0.4% 1.0% 0.1% 0.2% 0.5% 8.4% (3) 0.4% 0.2% 2205 0 2 4 6 8 10 12 14 16 18 TERM (YEARS TO EXPIRATION) 94% INVESTMENT TYPE: Senior Housing Post-Acute/Skilled Hospital No Corporate Guaranty % Sh
Slide 5: Capitalization
Capitalization Dollars and shares in thousands, except price per share data TOTAL DEBT June 30, 2016 December 31, 2015 June 30, 2015 Term loans(2)(3) 477,890 524,807 559,308 Mortgage debt(2) 688,910 932,212 965,844 Consolidated Debt $ 10,755,449 $ 11,069,003 $ 11,164,285 HCP’s share of unconsolidate
Slide 6: Capitalization - Common Stock and Equivalents
Capitalization Common Stock and Equivalents In thousands Common stock equivalent securities: Dilutive impact of options 54 54 54 54 56 56 56 Total common stock and equivalents 474,357 471,425 473,149 473,149 466,777 472,667 472,667 7 Memorial Hermann - Southeast Pearland, TX Convertible partnership
Slide 7: Indebtedness and Ratios - Debt Maturities
Indebtedness and Ratios As of June 30, 2016, dollars in thousands DEBT MATURITIES AND SCHEDULED PRINCIPAL REPAYMENTS (AMORTIZATION) Senior Unsecured Notes HCP’s Share of Unconsolidated JV Debt Mortgage Debt Total Debt 183,868(6) 750,000 2017 — 6.02 581,891 6.08 1,515,759 63,074 3.01 1,578,833 5.47 2
Slide 8: Indebtedness and Ratios - Credit Metrics
Indebtedness and Ratios CREDIT METRICS June 30, 2016 December 31, 2015 Consolidated Debt/Consolidated Gross Assets(1) 45.3% 45.6% Consolidated Secured Debt/Consolidated Gross Assets 2.9% 3.9% Fixed Rate Total Debt 89.8% 95.8% 100.0% 100.0% FINANCIAL COVENANTS AS OF JUNE 30, 2016(3) Bank Line of Cred
Slide 9: Investments
Investments Dollars in thousands INVESTMENTS June 30, 2016 Description Three Months Ended Six Months Ended Investment in unconsolidated joint venture — 14,500 Debt investments — 17,007 Skyline Medical Nashville, TN 10 Total Investments $ 62,000 $ 426,260 Development commitments 62,000 284,330 Invest
Slide 10: Acquisitions, Commitments and Dispositions
Acquisitions, Commitments and Dispositions For the six months ended June 30, 2016, dollars and square feet in thousands Property Count Investment/ Sales Price(1) Location/Portfolio Date Capacity Segment Senior housing/ Post-acute/skilled Various January 484 Units/Beds 6 $ 95,471 Investment in Uncons
Slide 11: Developments and Capital Expenditures
Developments and Capital Expenditures As of June 30, 2016, dollars and square feet in thousands DEVELOPMENT PROJECTS IN PROCESS Estimated Total Investment Estimated/Actual Completion Date Investment to Date Name of Project Location Segment Capacity Memorial Hermann - Pearland II(1) Pearland, TX Medi
Slide 12: Portfolio Summary
Portfolio Summary As of and for the quarter ended June 30, 2016, dollars and square feet in thousands Property Count Cash NOI Age (Years) Occupancy % EBITDARM CFC EBITDAR CFC Property Portfolio Investment Capacity Senior housing - operating 107 2,733,854 48,759 22 15,127 Units 87.9 N/A N/A Life scie
Slide 13: Portfolio Summary - NOI and Cash NOI
The Solana at Deer Park Deer Park, IL Portfolio Summary For the quarter ended June 30, 2016, dollars in thousands NOI, CASH NOI AND INTEREST INCOME Rental and Operating Revenues Operating Expenses Cash NOI(2) Interest Income Cash NOI and Interest Income Segment NOI(2) Post-acute/skilled 110,125 589
Slide 14: Portfolio Diversification
Portfolio Diversification As of and for the quarter ended June 30, 2016, dollars in thousands CASH NOI BY STATE % of Total Senior Housing Post-Acute/ Skilled Life Science Medical Office State Properties Total Hospital TX 120 51,742 12 24,274 1,318 — 18,364 7,786 — — PA 58 35,333 8 5,840 24,940 4,553
Slide 15: Same Property Portfolio
Same Property Portfolio As of June 30, 2016, dollars in thousands THREE-MONTH SPP Post-acute/skilled 274 4,100,655 96 83.5% 86.0% (12.6)% 3.0% 83.5% 82.5% 2.9% 3.0% Medical office 210 3,020,426 84 91.1% 90.4% 2.6% 3.8% 91.1% 90.8% 0.9% 1.8% Total Portfolio 1,054 $ 19,177,606 90 (2.4)% 4.0% 1.4% 2.6%
Slide 16: Expirations and Maturities
Expirations and Maturities As of June 30, 2016, dollars in thousands ANNUALIZED BASE RENT - LEASE EXPIRATIONS(1) Senior Housing(2) Post-Acute/ Skilled Life Science(3) Medical Office Year Total % of Total Hospital 2017 102,645 6 9,405 — 29,024 56,401 7,815 2019 98,342 6 9,224 19,368 18,498 43,892 7,3
Slide 17: Senior Housing Investments
As of and for the quarter ended June 30, 2016, dollars in thousands INVESTMENTS Property Count Cash NOI Occupancy % EBITDARM CFC EBITDAR CFC Property Portfolio Investment Units Assisted living 257 $ 3,401,687 $ 68,081 18,840 86.9 1.23x 1.05x CCRCs 11 530,149 12,380 3,085 85.2 1.26x 1.05x Assisted li
Slide 18: Senior Housing Same Property Portfolio
Same Property Portfolio Dollars in thousands 2Q15 3Q15 4Q15 1Q16 2Q16 Investment $ 7,789,164 $ 7,819,916 $ 8,079,702 $8,102,749 $ 8,112,933 3-month Occupancy % 87.3 86.6 86.9 86.7 86.4 EBITDAR CFC 1.10x 1.10x 1.08x 1.07x 1.06x Total revenues $ 234,689 $ 233,789 $ 240,679 $ 237,033 $ 238,049 $ 159,87
Slide 19: Lease and Debt Investment Relationships
Lease and Debt Investment Relationships As of and for the quarter ended June 30, 2016, dollars in thousands Leased Portfolio(1) Properties Cash NOI HCRMC 1,179,180 17,485 17,520 61 100 4,472 83.4 N/A N/A Aegis Senior Living 182,152 3,944 4,270 10 80 701 87.9 1.22x 1.06x Other 796,405 32,166 31,889 7
Slide 20: Operating Portfolio
Operating Portfolio As of and for the quarter ended June 30, 2016, dollars in thousands, except REVPOR OPERATING PORTFOLIO METRICS Units(1) REVPOR(1) % of Operating NOI 3-Month Occupancy % Market Investment Cash NOI IL AL IL AL Denver, CO 288,557 4,106 6.6 715 154 93.8 4,222 3,646 Miami, FL 189,767
Slide 21: Operating Portfolio - New Supply Analysis
Operating Portfolio As of and for the quarter ended June 30, 2016, dollars in thousands NEW SUPPLY ANALYSIS 5-Mile Radius(1) HCP Portfolio Properties/ Units Under Construction(2) Potential NOI Impact(3) 5 Year Total Population Growth % (4) 5 Year 75+ Population Growth % (4) Median Household Income P
Slide 22: Operating Portfolio Trend
Operating Portfolio Trend Dollars in thousands, except REVPOR TOTAL OPERATING PORTFOLIO(1) 2Q15(2) 3Q15 4Q15 1Q16 2Q16 Investment $ 2,593,843 $ 2,610,854 $ 2,681,111 $ 2,700,410 $ 2,733,854 3-month Occupancy % 86.0 87.7 88.2 88.4 87.9 NOI: Operating expenses (75,205) (109,952) (110,444) (113,890) (1
Slide 23: Post-Acute/Skilled
Post-Acute/Skilled As of and for the quarter ended June 30, 2016, dollars in thousands INVESTMENTS Leased Properties Property Count Cash NOI Occupancy % EBITDARM CFC EBITDAR CFC Investment Beds HCRMC DFLs 249 3,941,848 98,896 32,527 83.0 N/A N/A Interest Income Debt Investments Investment DSC Tandem
Slide 24: Post-Acute/Skilled Same Property Portfolio
Post-Acute/Skilled Dollars in thousands SAME PROPERTY PORTFOLIO 2Q15 3Q15 4Q15 1Q16 2Q16 Investment $ 5,177,977 $ 5,148,453 $ 4,110,827 $ 4,100,655 $ 4,100,655 3-month Occupancy % 86.0 83.4 82.6 82.5 83.5 Total revenues $ 120,568 $ 121,760 $ 122,869 $ 102,452 $ 105,431 $ 120,520 $ 121,712 $ 122,847
Slide 25: HCR ManorCare Portfolio Summary
Post-Acute/Skilled HCR ManorCare Portfolio Summary As of and for the quarter ended June 30, 2016, dollars in thousands HCP INVESTMENT IN HCRMC Property Count Cash NOI Occupancy % Investment Capacity Post-acute/skilled 249 3,941,848 98,896 32,527 Beds 83.0 For the trailing twelve months ended, dollar
Slide 26: Reconciliation of HCRMC EBITDAR and FCC
Post-Acute/Skilled Reconciliation of HCRMC EBITDAR and FCC Dollars in millions HCRMC UNAUDITED RESULTS OF OPERATIONS(1) Trailing 12 Months Ended June 30, 2016 March 31, 2016 Operating and general and administrative expenses (3,455.1) (3,507.9) Asset impairment(2) (6.0) — Interest expense (467.6) (47
Slide 27: Life Science
Life Science As of and for the quarter ended June 30, 2016, dollars and square feet in thousands INVESTMENTS Property Count Cash NOI Square Feet Occupancy % Leased Properties Investment San Diego 24 690,003 12,104 1,788 96.5 113 $ 3,439,401 $ 71,695 7,016 98.7 SAME PROPERTY PORTFOLIO 2Q15 3Q15 4Q15
Slide 28: Life Science Lease Expiration and Leasing Activity
Life Science Dollars and square feet in thousands, except dollars per square foot SELECTED LEASE EXPIRATION DATA (NEXT 3 YEARS) Total San Francisco San Diego Other 2017 724 10 29,024 11 414 15,987 310 13,037 — — Thereafter 4,808 70 172,124 64 2,750 118,007 1,301 35,474 757 18,643 LEASING ACTIVITY Le
Slide 29: Life Science Tenant Concentration
Shoreline Mountain View, CA Life Science As of June 30, 2016, dollars and square feet in thousands TENANT CONCENTRATION Genentech(1) 400 6 22,032 8 LinkedIn Corporation 373 5 14,419 5 Google 290 4 10,005 4 Takeda 166 2 7,736 3 ARUP 324 5 6,087 2 (1) Excludes 457,000 square feet and $24.1 million of
Slide 30: Medical Office
Medical Office As of and for the quarter ended June 30, 2016, dollars and square feet in thousands INVESTMENTS Healthcare System Affiliated % Property Count Cash NOI Square Feet Occupancy % Leased Properties Investment Off-campus 50 802,373 12,433 3,082 91.1 69.6 SAME PROPERTY PORTFOLIO 2Q15 3Q15 4Q
Slide 31: Medical Office Lease Expiration and Leasing Activity
Medical Office Dollars and square feet in thousands, except dollars per square foot SELECTED LEASE EXPIRATION DATA (NEXT 3 YEARS) Total On-Campus Off-Campus 2017 2,350 15 56,401 16 1,859 44,828 491 11,573 Thereafter 9,746 62 216,899 60 8,001 175,992 1,745 40,907 LEASING ACTIVITY Leased Square Feet A
Slide 32: Hospital
Hospital As of and for the quarter ended June 30, 2016, dollars in thousands INVESTMENTS Occupancy % (1) Property Count Cash NOI EBITDARM CFC EBITDAR CFC Leased Properties Investment Beds Other 11 213,857 6,049 733 59.9 3.32x 3.04x SAME PROPERTY PORTFOLIO 2Q15 3Q15 4Q15 1Q16 2Q16 Investment $ 594,08
Slide 33: Unconsolidated Joint Ventures
Unconsolidated Joint Ventures As of and for the quarter ended June 30, 2016, dollars and square feet in thousands INVESTMENTS Medical Office Life Science Post-Acute/ Skilled(1) Senior Housing(2) Total Joint ventures’ investment $ 390,894 $ 14,359 $ 155,473 $ 11,438 $ 209,624 HCP’s net equity investm
Slide 34: Brookdale Entrance Fee CCRC Portfolio
Unconsolidated Joint Ventures Brookdale Entrance Fee CCRC Portfolio As of and for the quarter ended June 30, 2016, dollars in thousands, except REVPOR CAPITALIZATION PORTFOLIO METRICS Joint venture’s mortgage debt (excludes Entrance Fees) $ 211,660 Units 7,175 HCP’s net equity investment(1) $ 459,65
Slide 35: Definitions
REPORTING Definitions Adjusted Fixed Charge Coverage* Adjusted EBITDA divided by Fixed Charges. Adjusted Fixed Charge Coverage is a supplemental measure of liquidity and the Company’s ability to meet its interest payments on outstanding debt and pay dividends to its preferred stockholders, if applic
Slide 36: Definitions
REPORTING Definitions Estimated / Actual Completion Date For Developments, management’s estimate of the period the core and shell structure improvements are expected to be or have been completed. For Redevelopments, management’s estimate of the period in which major construction activity in relation
Slide 37: Definitions
REPORTING Definitions Net Operating Income from Continuing Operations (“NOI”) and Cash NOI* See the “Net Operating Income and Same Property Performance” section of the accompanying earnings release for information regarding NOI and Cash NOI. Occupancy For life science facilities and medical office b
Slide 38: Definitions
REPORTING Definitions Total Market Equity The total number of outstanding shares of the Company’s common stock multiplied by the closing price per share of its common stock on the New York Stock Exchange as of period end, plus the total number of convertible partnership units multiplied by the closi
Slide 39: Reconciliations of Non-GAAP Measures - EBITDA
Reconciliations of Non-GAAP Measures Dollars in thousands EBITDA AND ADJUSTED EBITDA FROM NET INCOME Three Months Ended June 30, 2016 2015 Interest expense 121,333 118,632 Depreciation and amortization of real estate, in-place lease and other intangibles 141,386 120,403 HCP’s share of unconsolidated
Slide 40: Reconciliations of Non-GAAP Measures - Fixed Charge Coverage
Reconciliations of Non-GAAP Measures Dollars in thousands ADJUSTED FIXED CHARGE COVERAGE Three Months Ended June 30, 2016 2015 Interest expense 121,333 118,632 Capitalized interest 2,605 2,006 TOTAL GROSS ASSETS June 30, 2016 December 31, 2015 June 30, 2015 Consolidated total assets(1) $ 21,116,457
Slide 41: Reconciliations of Non-GAAP Measures
Reconciliations of Non-GAAP Measures As of June 30, 2016, dollars in thousands INVESTMENT Senior Housing Post-Acute/ Skilled Life Science Medical Office Hospital Non-Segment Total Investments in and advances to unconsolidated joint ventures (513,941) (1,294) (68,438) (21,268) — — (604,941) Accumulat
Slide 42: Company Information
COMPANY Information BOARD OF DIRECTORS MICHAEL D. MCKEE Chairman of the Board, President and Chief Executive Officer, HCP, Inc. JAMES P. HOFFMANN Former Partner and Senior Vice President, Wellington Management Company DAVID B. HENRY Lead Independent Director, HCP, Inc. Former Vice Chairman and Chief
Slide 43: Forward-Looking Statements & Risk Factors (Continued)
The Atrium Nashville, TN Forward-Looking Statements & Risk Factors (Continued) healthcare industry that affect the Company’s costs of compliance or increase the costs, or otherwise affect the operations, of its tenants and operators; volatility or uncertainty in the capital markets, the availability
Slide 44: Corporate Headquarters
CORPRATE HEADQUARTERS 1920 MAIN STREET, SUITE 1200 IRVINE , CA 92614 (949) 407-0700 LOS ANGELES OFFICE 11150 SANTA MONICA BOULEVARD, SUITE 1600 LOS ANGELES, CA 90025 SAN FRANCIS CO OFFICE 950 TOWER LANE , SUITE 1650 FOSTER CITY, CA 94404 NASHVILLE OFFICE 3000 MERIDIAN BOULEVARD, SUITE 200 FRANKLIN ,
Slide 45: Office Locations
LOS ANGELES OFFICE 11150 SANTA MONICA BOULEVARD, SUITE 1600 LOS ANGELES, CA 90025 CORPORATE HEADQUARTERS: 1920 MAIN STREET, SUITE 1200 IRVINE, CA 92614 (949) 407-0700 SAN FRANCISCO OFFICE 950 TOWER LANE, SUITE 1650 FOSTER CITY, CA 94404 LONDON OFFICE 24 BERKELEY SQUARE LONDON, WU 6HE NASHVILLE OFFIC