Slide 1: Table of Contents
Sustainability 3 Summary 4 Heat Map - Triple-Net Master Lease Profile 6 Credit Profile 7 Capitalization 9 Indebtedness and Ratios 11 Investments 13 Portfolio Portfolio Summary 16 Senior Housing 21 Post-Acute/Skilled 26 Life Science 29 Medical Office 32 Hospital 34 Unconsolidated Joint Ventures 35 En
Slide 2: This Quarter: Sustainability
THIS QUAR TER Sustainability The Fairfax Fort Belvoir, VA 3 HCP’s The Fairfax at Fort Belvoir in Virginia is the first ever Senior Living Community to be certified as a Wildlife Sanctuary by the Audubon Society Our residents and operator, Sunrise Senior Living, worked together to plant native plants
Slide 3: The Numbers: Summary
THE NUMBER S Summary Dollars in thousands, except per share data INCOME FROM INVESTMENT PORTFOLIO (1) Three Months Ended September 30, 5% Hospital 14% Medical Office NOI 464,142 479,075 Year-Over-Year SPP Cash NOI % Growth (0.8%) 3.2% 40% Senior Housing Adjusted EBITDA $ 492,466 $ 464,219 14% Life S
Slide 4: Portfolio Summary
Portfolio Summary As of and for the quarter ended September 30, 2015, dollars in thousands Owned Portfolio Post-acute/skilled 5,596,040 111,757 Medical office 3,447,068 65,120 $ 22,232,886 $ 433,949 Senior housing $ 108,321 $ 2,411 Hospital 16,987 — Developments Life science 67,354 — $ 226,983 $ — S
Slide 5: Heat Map: Triple-Net Master Lease Profile
HEAT MAP Triple-Net Master Lease Profile(1) 0.8% 0.4% 0.4% 0.1% 0.7% 0.7% 0.1% 0.5% 0.7% 0.4% 0.4% 0.2% 0.2% 1.3% 0.8% 0.9% 0.4% 0.6% 0.7% 0.7% 0.1% 8.4% (3) 0.7% 0.2% 0 2 4 6 8 10 12 14 16 18 2205 TERM (YEARS TO EXPIRATION) 95% INVESTMENT TYPE: Senior Housing Post-Acute/Skilled Hospital No Corporat
Slide 6: Credit Profile
CREDIT Profile Financial Leverage Adjusted Fixed Charge Coverage 5.0x 80% 4.0x 60% 3.0x 2.4x 40% 2.3x 2.2x 2.0x 20% 1.0x 0% 0.0x 2010 (1) Pre-CNL 2006 2007 Acquisition 2008 2009 2011 2012 2013 2014 3Q 2015 Pre-CNL 2006 2007 2008 2009 Acquisition 2010 2011 2012 2013 2014 3Q 2015 Secured Debt Ratio Ne
Slide 7: Credit Profile
CREDIT Profile Same Property Cash NOI Growth Total Gross Assets (in billions) 6% $30 $25 4% 3.3% 3.2% 3.1% $20 2.1% 2.1% 2.0% 2% $15 0% $10 (0.8%) (2%) $5 (4%) $0 2010 (4) 2011 Pre-CNL 2006 2007 Acquisition 2008 2009 2012 2013 2014 3Q 2015 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 3Q 2015 Ma
Slide 8: Capitalization
Capitalization Dollars and shares in thousands, except price per share data TOTAL DEBT September 30, 2015 December 31, 2014 September 30, 2014 Term loans(2) 540,784 213,610 222,118 Mortgage debt 939,982 984,431 1,199,633 Consolidated Debt $ 11,144,880 $ 9,759,773 $ 9,214,637 HCP’s share of unconsoli
Slide 9: Capitalization: Common Stock and Equivalents
Capitalization Common Stock and Equivalents In thousands Common stock equivalent securities: Dilutive impact of options 117 117 117 117 165 165 165 Total common stock and equivalents 471,507 463,586 467,772 469,590 462,302 462,302 468,320 10 Fresno Surgical Hospital Fresno, CA Convertible partnershi
Slide 10: Indebtedness and Ratios
Indebtedness and Ratios As of September 30, 2015, dollars in thousands DEBT MATURITIES AND SCHEDULED PRINCIPAL REPAYMENTS (AMORTIZATION) Senior Unsecured Notes HCP’s Share of Unconsolidated JV Debt Mortgage Debt Total Debt 2016 — 207,528 900,000 5.10 279,194 6.83 1,386,722 49,357 6.06 1,436,079 5.01
Slide 11: Indebtedness and Ratios
Indebtedness and Ratios September 30, 2015 December 31, 2014 Consolidated Debt/Consolidated Gross Assets 45.5% 41.8% Secured Debt Ratio (Total Secured Debt/Total Gross Assets) 4.8% 5.0% Fixed Rate Total Debt 90.4% 90.8% 100% 100% FINANCIAL COVENANTS AS OF SEPTEMBER 30, 2015(2) Bank Line of Credit Se
Slide 12: Investments
Investments Dollars in thousands INVESTMENTS(1) September 30, 2015 (1) Represents consolidated investments (including related non-controlling interests) and the Company’s pro rata share of investments in unconsolidated joint ventures. (2) Includes Debt Investments that were converted into sale-lease
Slide 13: Investments and Dispositions
For the nine months ended September 30, 2015, dollars and square feet in thousands INVESTMENTS AND DISPOSITIONS Property Count Investment (1)/ Gross Sales Price Location/Portfolio Date Capacity Segment Houston, TX(2) March 19, 2015 87 Units 1 Senior housing (RIDEA) $ 22,190 Germantown, TN(2) June 1,
Slide 14: Developments and Capital Expenditures
Developments and Capital Expenditures As of September 30, 2015, dollars and square feet in thousands DEVELOPMENT PROJECTS IN PROCESS Estimated Completion Date Estimated Total Investment(1) Investment to Date(1) Name of Project Location Segment Capacity Robin Run Village (CCRC JV) Indianapolis, IN Se
Slide 15: Portfolio Summary
Portfolio Summary As of and for the quarter ended September 30, 2015, dollars and square feet in thousands Property Count Cash NOI Age (Years) Occupancy % EBITDARM CFC EBITDAR CFC Property Portfolio Investment Capacity Senior housing - operating 106 2,610,854 45,338 21 15,241 Units 87.7 N/A N/A Life
Slide 16: Portfolio Summary: NOI, Cash NOI and Interest Income
Oak Park Senior Housing Oak Park, IL Portfolio Summary For the quarter ended September 30, 2015, dollars in thousands NOI, CASH NOI AND INTEREST INCOME Rental and RIDEA Revenues Operating Expenses Cash NOI Interest Income Cash NOI and Interest Income Segment NOI(2) Post-acute/skilled 132,650 531 132
Slide 17: Portfolio Diversification
Portfolio Diversification As of and for the quarter ended September 30, 2015, dollars in thousands CASH NOI BY STATE Senior Housing Post-Acute/ Skilled Life Science Medical Office % of Total State Properties Hospital Total TX 129 22,717 1,875 — 17,837 8,354 50,783 12 — — PA 57 6,003 24,214 4,479 34,
Slide 18: Same Property Portfolio
Same Property Portfolio As of September 30, 2015, dollars in thousands THREE-MONTH SPP Post-acute/skilled 300 5,409,111 97 82.9% 84.3% (7.4%) (11.0%) 82.9% 85.3% 1.0% 0.0% Medical office 206 2,742,454 80 90.5% 91.0% 5.1% 4.2% 90.5% 90.1% 1.0% 1.5% Total Portfolio 1,033 $ 19,271,036 87 (0.5%) (0.8%)
Slide 19: Expirations and Maturities
Expirations and Maturities As of September 30, 2015, dollars in thousands ANNUALIZED REVENUES - LEASE EXPIRATIONS(1) Senior Housing (3) Post-Acute/ Skilled Life Science Medical Office Year Total % of Total Hospital 2016 63,294 4 13,283 — 10,370 39,641 — 2018 139,184 8 50,102 1,197 38,397 49,488 — 20
Slide 20: Senior Housing Investments
As of and for the quarter ended September 30, 2015, dollars in thousands INVESTMENTS Property Count Cash NOI Occupancy % EBITDARM CFC EBITDAR CFC Property Portfolio Investment Units Assisted living 254 $ 3,334,052 $ 66,537 18,702 88.3 1.27x 1.08x CCRCs 11 523,454 12,610 3,086 86.4 1.26x 1.05x Assist
Slide 21: Senior Housing: Same Property Portfolio
Same Property Portfolio Dollars in thousands 3Q14 4Q14 1Q15 2Q15 3Q15 Investment $ 6,817,719 $ 6,832,164 $ 6,899,958 $6,920,655 $ 6,943,969 3-month Occupancy % 87.4 88.1 88.2 87.3 86.7 EBITDAR CFC 1.12x 1.12x 1.10x 1.10x 1.09x Total revenues $ 166,556 $ 170,679 $ 166,733 $ 169,634 $ 168,807 $ 142,35
Slide 22: Leased and Debt Investment Relationships
Leased and Debt Investment Relationships As of and for the quarter ended September 30, 2015, dollars in thousands Leased Portfolio(1) Properties Cash NOI Sunrise Senior Living 1,336,178 20,520 21,668 48 98 5,557 88.9 1.44x 1.16x Harbor Retirement Associates 211,737 4,546 4,418 14 100 1,346 83.0 1.48
Slide 23: Brookdale RIDEA Operating Portfolio Trend
Brookdale RIDEA Operating Portfolio Trend Dollars in thousands, except REVPOR TOTAL OPERATING PORTFOLIO 3Q14(1) 4Q14 1Q15 2Q15(2) 3Q15 Units 9,869 9,869 10,053 15,253 15,241 REVPOR $ 4,038 $ 4,048 $ 4,058 $ 4,067 $ 3,873 Total revenues $ 62,182 $ 103,430 $ 105,013 $ 106,826 $ 155,290 $ 20,088 $ 29,3
Slide 24: Post-Acute/Skilled
Post-Acute/Skilled As of and for the quarter ended September 30, 2015, dollars in thousands INVESTMENTS Leased Properties Property Count Cash NOI Occupancy % EBITDARM CFC EBITDAR CFC Investment Beds HCRMC DFLs 266 5,196,870 100,987 34,263 83.6 N/A N/A Interest Income Debt Investments Investment DSC
Slide 25: Post-Acute/Skilled: Same Property Portfolio
Post-Acute/Skilled Dollars in thousands SAME PROPERTY PORTFOLIO 3Q14 4Q14 1Q15 2Q15 3Q15 Investment $ 5,830,839 $ 5,861,702 $ 5,346,487 $ 5,377,534 $ 5,409,111 3-month Occupancy % 84.3 83.3 83.5 85.3 82.9 Total revenues $ 138,750 $ 139,462 $ 140,239 $ 127,304 $ 128,549 $ 138,677 $ 139,508 $ 140,165
Slide 26: HCR ManorCare Portfolio Summary
Post-Acute/Skilled HCR ManorCare* Portfolio Summary *HCR ManorCare is a privately held company headquartered in Toledo, Ohio that operates over 500 skilled nursing and rehabilitation centers, assisted living facilities, memory care facilities, outpatient rehabilitation clinics, and hospice and home
Slide 27: Life Science
Life Science As of and for the quarter ended September 30, 2015, dollars and square feet in thousands INVESTMENTS Property Count Cash NOI Square Feet Occupancy % Leased Properties Investment San Diego 24 678,628 10,556 1,788 95.9 112 $ 3,697,734 $ 65,742 7,381 98.1 SAME PROPERTY PORTFOLIO 3Q14 4Q14
Slide 28: Life Science: Lease Expirations 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 2016 369 5 10,370 4 317 8,784 52 1,586 — — Thereafter 5,956 82 229,548 84 3,887 174,696 1,315 34,283 754 20,569 LEASING ACTIVITY Leased
Slide 29: Life Science: Tenant Concentration
Oyster Point II - Building C South San Francisco, CA Life Science As of September 30, 2015, dollars and square feet in thousands TENANT CONCENTRATION Genentech 856 12 44,907 16 LinkedIn Corporation 373 5 13,932 5 Google 290 4 9,758 4 Takeda 166 2 7,511 3 ARUP 324 4 5,889 2 7,242 100 $ 273,036 100 31
Slide 30: Medical Office
Medical Office As of and for the quarter ended September 30, 2015, dollars and square feet in thousands INVESTMENTS Healthcare System Affiliated % Property Count Cash NOI Square Feet Occupancy % Leased Properties Investment Off-campus 50 727,900 12,138 2,942 89.5 68.1 SAME PROPERTY PORTFOLIO 3Q14 4Q
Slide 31: Medical Office: Lease Expirations 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 2016 1,744 11 39,641 11 1,564 35,398 180 4,243 Thereafter 10,530 68 231,696 67 8,643 189,040 1,887 42,656 LEASING ACTIVITY Leased Square Feet A
Slide 32: Hospital
Hospital As of and for the quarter ended September 30, 2015, dollars in thousands INVESTMENTS Occupancy % (1) Property Count Cash NOI EBITDARM CFC EBITDAR CFC Leased Properties Investment Beds Other 11 213,857 6,712 713 62.0 2.48x 2.23x Interest Income Debt Investments Investment Total $ 611,072 $ 2
Slide 33: Unconsolidated Joint Ventures
Unconsolidated Joint Ventures As of and for the quarter ended September 30, 2015, dollars and square feet in thousands INVESTMENTS Medical Office (1) Life Science Senior Housing(2) Total Joint ventures’ Investment $ 1,173,287 $ 855,630 $ 153,300 $ 164,357 HCP’s net equity investment(3) 131,129 35,89
Slide 34: Unconsolidated Joint Ventures: Entrance Fee CCRC Portfolio
Unconsolidated Joint Ventures Brookdale RIDEA Entrance Fee CCRC Portfolio As of and for the quarter ended September 30, 2015, dollars in thousands, except REVPOR CAPITALIZATION PORTFOLIO METRICS Joint venture’s mortgage debt (excludes Entrance Fees) $ 215,695 Units 6,958 HCP’s net equity investment(
Slide 35: Definitions
REP OR TING 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 appl
Slide 36: Definitions: Entrance Fees
Entrance Fees Certain of the Company’s communities have residency agreements which require the resident to pay an upfront entrance fee prior to taking occupancy at the community. For GAAP NOI, net income and FFO, the non-refundable portion of the entrance fee is recorded as deferred entrance fee rev
Slide 37: Definitions
REP OR TING Definitions Net Debt* Total Debt less the carrying amount of cash and cash equivalents as reported in the Company’s consolidated financial statements and the Company’s pro rata share of cash and cash equivalents from the Company’s unconsolidated joint ventures. Net Debt to Adjusted EBITD
Slide 38: Definitions
REP OR TING Definitions Secured Debt Ratio* Total Secured Debt divided by Total Gross Assets. Secured Debt Ratio is a supplemental measure of the Company’s financial position, which enables both management and investors to analyze its leverage and to compare its leverage to that of other companies.
Slide 39: Reconciliations of Non-GAAP Measures
Reconciliations of Non-GAAP Measures Dollars in thousands EBITDA AND ADJUSTED EBITDA FROM NET INCOME Three Months Ended September 30, 2015 2014 Interest expense 122,157 111,275 Depreciation and amortization of real estate, in-place lease and other intangibles 134,704 122,975 HCP’s share of unconsoli
Slide 40: Reconciliations of Non-GAAP Measures
Reconciliations of Non-GAAP Measures Dollars in thousands ADJUSTED FIXED CHARGE COVERAGE Three Months Ended September 30, 2015 2014 Interest expense 122,157 111,275 Capitalized interest 2,291 2,203 TOTAL GROSS ASSETS September 30, 2015 December 31, 2014 September 30, 2014 Investments in and advances
Slide 41: Company Information
COMPANY Information Board of Directors Michael D. McKee Chairman of the Board, HCP, Inc. and Chief Executive Officer, Bentall Kennedy U.S., L.P. James P. Hoffmann Former Partner and Senior Vice President Wellington Management Company Brian G. Cartwright Senior Advisor Patomak Global Partners LLC Lau
Slide 42: Forward Looking Statements & Risk Factors
Physicians Park Nashville, TN Forward Looking Statements & Risk Factors “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this supplemental report which are not historical facts are forward-looking statements within the meaning of Section
Slide 43: Forward Looking Statements & Risk Factors (Continued)
2201 Medical Plaza Nashville, TN Forward Looking Statements & Risk Factors (Continued) interest rates, changes in the Company’s credit ratings, and the value of its common stock, and other conditions that may adversely impact the Company’s ability to fund its obligations or consummate transactions,
Slide 44: Our Commitment: Strategy, Execution, Results
our commitment STRATEGY EXECUTION RESULTS Corporate Headquarters 1920 Main Street, Suite 1200 Irvine, CA 92614 (949) 407-0700 London Office 24 Berkeley Square London, WIJ 6HE Los Angeles Office 11150 Santa Monica Boulevard, Suite 1600 Los Angeles, CA 90025 Nashville Office 3000 Meridian Boulevard, S
Slide 45: Our Commitment
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