Slide 1: Table of Contents
Vision 3 Sustainability 4 Summary 5 Heat Map - Triple-Net Master Lease Profile 7 Credit Profile 8 Capitalization 10 Indebtedness and Ratios 12 Investments and Dispositions 14 Portfolio Portfolio Summary 17 Senior Housing 22 Post-Acute/Skilled 28 Life Science 32 Medical Office 35 Hospital 37 Unconsol
Slide 2: Vision: Building Healthy Partnerships
VISION Building Healthy Partnerships LIFE S CIENCE “FOR BOTH OPERATORS AND INVESTORS, HCP IS YOUR TRUSTED CAPITAL PARTNER IN A DYNAMIC HEALTHCARE ENVIRONMENT” RESEAR CH MEDIC AL OFFICE SENIOR HOUSING SENIOR HOUSING ATIVE MEDICINE $2234BB INVES TMENT P OR TF OLIO SENIOR C ARE HO SPITALIZATION RE CO
Slide 3: This Quarter: Sustainability
THIS QUAR TER Sustainability Named 2016 Industry Mover and to the Sustainability Yearbook for performance on 2015 Dow Jones Sustainability Index (DJSI) Assessment •The Industry Mover designation is given to the company achieving the largest improvement in sustainability performance in its industry o
Slide 4: The Numbers: Summary
THE NUMBER S Summary As of and for the quarter ended March 31, 2016, dollars in thousands, except per share data PORTFOLIO INCOME 5% Hospital Three Months Ended March 31, 2016 2015 14% Medical office NOI 445,707 445,038 Year-Over-Year SPP Cash NOI % change (0.5)% 3.5% 40% Senior housing Adjusted EBI
Slide 5: Portfolio Summary
Portfolio Summary As of and for the quarter ended March 31, 2016, dollars in thousands Property Portfolio Post-acute/skilled 4,338,095 106,355 Medical office 3,507,004 65,876 $ 21,226,994 $ 438,305 Senior housing $ 90,997 $ 1,851 $ 869,813 $ 18,029 Senior housing(2) $ 60,411 $ — Medical office 130,8
Slide 6: Heat Map: Triple-Net Master Lease Profile
HEAT MAP Triple-Net Master Lease Profile(1) 1.2% 0.4% 0.4% 0.1% 0.7% 0.1% 0.5% 0.7% 0.4% 1.0% 1.3% 0.2% 0.6% 0.5% 0.8% 0.4% 0.2% 0.1% 0.6% (3) 1.2% 0.2% 2205 0 2 4 6 8 10 12 14 16 18 TERM (YEARS TO EXPIRATION) 95% INVESTMENT TYPE: Senior Housing Post-Acute/Skilled Hospital No Corporate Guaranty % Sh
Slide 7: Credit Profile
CREDIT Profile Financial Leverage Adjusted Fixed Charge Coverage 5.0x 80% 4.0x 60% 2.9x 2.9x 3.0x 2.4x 40% 2.3x 2.2x 2.0x 20% 1.0x 0% 0.0x (1) (2) Pre-CNL 2006 2007 2008 Acquisition 2009 2010 2011 2012 2013 2014 2015 1Q 2016 Pre-CNL 2006 2007 2008 2009 2010 Acquisition 2011 2012 2013 2014 2015 1Q 20
Slide 8: 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 (2%) $5 (4%) $0 (5) 2010 (4) 2011 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1Q 2016 Pre-CNL 2006 2007 Acquisition 2008 2009 2012 2013 2014 2015 1Q
Slide 9: Capitalization
Capitalization Dollars and shares in thousands, except price per share data TOTAL DEBT March 31, 2016 December 31, 2015 March 31, 2015 Term loans(2)(3) 511,737 524,807 527,601 Mortgage debt(2) 895,289 932,212 978,453 Consolidated Debt $ 10,935,944 $ 11,069,003 $ 9,942,545 HCP’s share of unconsolidat
Slide 10: Capitalization: Common Stock and Equivalents
Capitalization Common Stock and Equivalents In thousands Common stock equivalent securities: Dilutive impact of options 57 57 57 57 Total common stock and equivalents 473,908 466,262 472,186 472,186 11 Hoag Hospital Irvine, CA Convertible partnership units 5,876 —5,924 5,924 Restricted stock and uni
Slide 11: Indebtedness and Ratios
Indebtedness and Ratios As of March 31, 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 2017 — — 750,000 6.02 581,891 6.08 1,331,891 63,074 3.01 1,394,965 5.91 2019 — 31
Slide 12: Indebtedness and Ratios
Indebtedness and Ratios March 31, 2016 December 31, 2015 Consolidated Debt/Consolidated Gross Assets(1) 46.1% 45.6% Consolidated Secured Debt/Consolidated Gross Assets 3.8% 3.9% Fixed Rate Total Debt 92.1% 95.8% 100% 100% FINANCIAL COVENANTS AS OF MARCH 31, 2016(3) Bank Line of Credit Secured Debt R
Slide 13: Investments
Investments For the quarter ended March 31, 2016, dollars in thousands INVESTMENTS Description Development commitments 222,330 Investments in unconsolidated joint ventures 14,500 Chancellor Gardens at Clearfield Clearfield, UT 14 Total Investments $ 364,260 Debt Investments 17,007 Investment in real
Slide 14: Acquisitions and Dispositions
Acquisitions and Dispositions For the quarter ended March 31, 2016, dollars and square feet in thousands ACQUISITIONS AND DISPOSITIONS Property Count Investment/ Sales Price(1) Location/Portfolio Date Capacity Segment Senior housing/ Post-acute/skilled Various January 484 Units/Beds 6 $ 95,471 Devel
Slide 15: Developments and Capital Expenditures
Developments and Capital Expenditures As of and for the quarter ended March 31, 2016, dollars and square feet in thousands DEVELOPMENT PROJECTS IN PROCESS Estimated Total Investment Estimated Completion Date Investment to Date Name of Project Location Segment Capacity Memorial Hermann - Pearland II(
Slide 16: Portfolio Summary
Portfolio Summary As of and for the quarter ended March 31, 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 108 2,700,410 51,873 21 15,403 Units 88.4 N/A N/A Life sci
Slide 17: Portfolio Summary: NOI, Cash NOI and Interest Income
Regency Oaks Clearwater, FL Portfolio Summary For the quarter ended March 31, 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 107,190 564 106,626 1
Slide 18: Portfolio Diversification
Portfolio Diversification As of and for the quarter ended March 31, 2016, dollars in thousands CASH NOI BY STATE Senior Housing Post-Acute/ Skilled Life Science Medical Office % of Total State Properties Hospital Total TX 121 24,072 1,336 — 18,394 7,883 51,685 12 — — PA 58 2,179 24,214 4,517 30,910
Slide 19: Same Property Portfolio
Same Property Portfolio As of March 31, 2016, dollars in thousands THREE-MONTH SPP Post-acute/skilled 279 4,134,774 95 82.6% 84.4% (22.2)% (10.5)% 82.6% 82.7% (16.5)% —% Medical office 212 3,017,592 86 90.8% 90.6% 1.2% 3.3% 90.8% 91.3% (0.6)% (1.3)% Total Portfolio 1,063 $ 19,218,872 91 (5.7)% (0.5)
Slide 20: Expirations and Maturities
Expirations and Maturities As of March 31, 2016, dollars in thousands ANNUALIZED REVENUES - LEASE EXPIRATIONS(1) Senior Housing(2) Post-Acute/ Skilled Life Science(3) Medical Office Year Total % of Total Hospital 2017 107,445 7 9,273 — 29,792 55,523 12,857 2019 96,979 6 9,224 19,056 19,648 41,691 7,
Slide 21: Senior Housing Investments
As of and for the quarter ended March 31, 2016, dollars in thousands INVESTMENTS Property Count Cash NOI Occupancy % EBITDARM CFC EBITDAR CFC Property Portfolio Investment Units Assisted living 259 $ 3,429,560 $ 66,160 19,062 87.4 1.25x 1.07x CCRCs 11 527,612 9,043 3,087 85.6 1.28x 1.07x Assisted li
Slide 22: Senior Housing Same Property Portfolio
Same Property Portfolio Dollars in thousands 1Q15 2Q15 3Q15 4Q15 1Q16 Investment $ 7,743,670 $ 7,772,671 $ 7,803,414 $8,063,193 $ 8,086,222 3-month Occupancy % 88.1 87.3 86.6 86.9 86.7 EBITDAR CFC(1) 1.11x 1.11x 1.10x 1.08x 1.07x Total revenues $ 232,214 $ 233,884 $ 232,996 $ 239,919 $ 236,198 $ 157
Slide 23: Lease and Debt Investment Relationships
Lease and Debt Investment Relationships As of and for the quarter ended March 31, 2016, dollars in thousands Leased Portfolio(1) Properties Cash NOI HCRMC 1,179,180 16,854 16,888 61 100 4,451 83.9 N/A N/A Aegis Senior Living 182,152 3,944 4,270 10 80 701 88.5 1.22x 1.06x Other 862,052 15,677 15,360
Slide 24: Brookdale Operating Portfolio
Brookdale* Operating Portfolio *Brookdale Senior Living, Inc. (NYSE:BKD) is headquartered in Brentwood, TN and is the leading operator of senior living communities throughout the United States (“U.S.”). Brookdale is committed to providing senior living solutions primarily within properties that are
Slide 25: Brookdale Operating Portfolio: New Supply Analysis
Brookdale Operating Portfolio As of and for the quarter ended March 31, 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
Slide 26: Brookdale Operating Portfolio Trend
Brookdale Operating Portfolio Trend Dollars in thousands, except REVPOR TOTAL OPERATING PORTFOLIO(1) 1Q15 2Q15(2) 3Q15 4Q15 1Q16 Investment $ 1,672,640 $ 2,593,843 $ 2,610,854 $ 2,681,111 $ 2,700,410 3-month Occupancy % 86.4 86.0 87.7 88.2 88.4 NOI: Operating expenses (74,598) (75,205) (109,952) (11
Slide 27: Post-Acute/Skilled
Post-Acute/Skilled As of and for the quarter ended March 31, 2016, dollars in thousands INVESTMENTS Leased Properties Property Count Cash NOI Occupancy % EBITDARM CFC EBITDAR CFC Investment Beds HCRMC DFLs 249 3,941,848 96,130 32,515 83.6 N/A N/A Interest Income Debt Investments Investment DSC Tande
Slide 28: Post-Acute/Skilled Same Property Portfolio
Post-Acute/Skilled Dollars in thousands SAME PROPERTY PORTFOLIO 1Q15 2Q15 3Q15 4Q15 1Q16 Investment $ 5,132,150 $ 5,162,657 $ 5,194,010 $ 4,156,384 $ 4,134,774 3-month Occupancy % 84.4 86.0 83.5 82.7 82.6 Total revenues $ 133,749 $ 122,210 $ 123,452 $ 124,547 $ 104,059 $ 133,702 $ 122,163 $ 123,404
Slide 29: HCR ManorCare Portfolio Summary
Post-Acute/Skilled HCR ManorCare Portfolio Summary As of and for the quarter ended March 31, 2016, dollars in thousands HCP INVESTMENT IN HCRMC Property Count Cash NOI Occupancy % Investment Capacity Post-acute/skilled 249 3,941,848 96,130 32,515 Beds 83.6 For the trailing twelve months ended, dolla
Slide 30: 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 March 31, 2016 December 31, 2015 Operating and general and administrative expenses (3,507.9) (3,548.6) Asset impairment(2) — — Interest expense (472.4) (45
Slide 31: Life Science
Life Science As of and for the quarter ended March 31, 2016, dollars and square feet in thousands INVESTMENTS Property Count Cash NOI Square Feet Occupancy % Leased Properties Investment San Diego 24 685,682 11,636 1,788 94.5 114 $ 3,476,630 $ 71,532 7,094 98.0 SAME PROPERTY PORTFOLIO 1Q15 2Q15 3Q15
Slide 32: 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 729 11 29,792 11 419 17,096 310 12,696 — — Thereafter 4,741 68 167,798 64 2,660 111,747 1,263 33,967 818 22,084 LEASING ACTIVITY Le
Slide 33: Life Science Tenant Concentration
University Center East San Diego, CA Life Science As of March 31, 2016, dollars and square feet in thousands TENANT CONCENTRATION Genentech 400 6 21,652 8 LinkedIn Corporation 373 5 14,419 5 Google 290 4 10,005 4 Takeda 166 2 7,511 3 ARUP 324 5 6,087 2 6,953 100 $ 264,790 100 34 Other 3,616 52 115,9
Slide 34: Medical Office
Medical Office As of and for the quarter ended March 31, 2016, dollars and square feet in thousands INVESTMENTS Healthcare System Affiliated % Property Count Cash NOI Square Feet Occupancy % Leased Properties Investment Off-campus 50 737,295 12,323 2,942 90.3 69.8 SAME PROPERTY PORTFOLIO 1Q15 2Q15 3
Slide 35: 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 2,319 15 55,523 16 1,855 44,599 464 10,924 Thereafter 9,116 59 201,228 56 7,557 165,437 1,559 35,791 LEASING ACTIVITY Leased Square Feet A
Slide 36: Hospital
Hospital As of and for the quarter ended March 31, 2016, dollars in thousands INVESTMENTS Occupancy %(1) Property Count Cash NOI EBITDARM CFC EBITDAR CFC Leased Properties Investment Beds Other 11 213,857 6,323 733 60.9 3.15x 2.88x SAME PROPERTY PORTFOLIO 1Q15 2Q15 3Q15 4Q15 1Q16 Investment $ 594,08
Slide 37: Unconsolidated Joint Ventures
Unconsolidated Joint Ventures As of and for the quarter ended March 31, 2016, dollars and square feet in thousands INVESTMENTS Medical Office Life Science Post-Acute/ Skilled(1) Senior Housing(2) Total Joint ventures’ Investment $ 385,649 $ 13,622 $ 155,336 $ 11,438 $ 205,253 HCP’s net equity invest
Slide 38: Brookdale Entrance Fee CCRC Portfolio
Unconsolidated Joint Ventures Brookdale Entrance Fee CCRC Portfolio As of and for the quarter ended March 31, 2016, dollars in thousands, except REVPOR CAPITALIZATION PORTFOLIO METRICS Joint venture’s mortgage debt (excludes Entrance Fees) $ 213,154 Units 7,222 HCP’s net equity investment(1) $ 462,5
Slide 39: The Solana Doylestown
The Solana Doylestown Warrington, PA 40 40
Slide 40: 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 41: 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 42: 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 43: 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 44: Reconciliations of Non-GAAP Measures
Reconciliations of Non-GAAP Measures Dollars in thousands EBITDA AND ADJUSTED EBITDA FROM NET INCOME Three Months Ended March 31, 2016 2015 Interest expense 122,062 116,780 Depreciation and amortization of real estate, in-place lease and other intangibles 141,322 114,522 HCP’s share of unconsolidate
Slide 45: Reconciliations of Non-GAAP Measures
Reconciliations of Non-GAAP Measures Dollars in thousands ADJUSTED FIXED CHARGE COVERAGE Three Months Ended March 31, 2016 2015 Interest expense $ 122,062 $ 116,780 Capitalized interest 3,128 1,698 TOTAL GROSS ASSETS March 31, 2016 December 31, 2015 March 31, 2015 Consolidated total assets(1) $ 21,1
Slide 46: Company Information
C OMPANY Information BOARD OF DIRECTORS MICHAEL D. MCKEE Executive Chairman, HCP, Inc. CHRISTINE N. GARVEY Former Global Head of Corporate Real Estate Services, Deutsche Bank AG DAVID B. HENRY Lead Independent Director, HCP, Inc. Former Vice Chairman and Chief Executive Officer, Kimco Realty Corpora
Slide 47: Forward-Looking Statements & Risk Factors
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 27A of the Securities Act of
Slide 48: Forward-Looking Statements & Risk Factors (Continued)
Sky Ridge III - Evergreen MOB Lone Tree, CO Forward-Looking Statements & Risk Factors (Continued) Medicare and Medicaid, which may result in future reductions in reimbursements; changes in federal, state or local laws and regulations, including those affecting the healthcare industry that affect the
Slide 49: Building Healthy Partnerships
b u i l d i n g h e a lt h y pa r t n e r s h i p s CORP ORATE HEADQUARTERS 192 0 MAIN STREE T, S UITE 1 2 00 IRVINE , CA 92614 (949) 4 07-0700 LOS ANGELES OFFICE 1115 0 SANTA MONICA B OULEVARD, S UITE 1 6 00 LOS ANGELE S, CA 90025 SAN FRANCIS CO OFFICE 95 0 TOWER LANE , S UITE 1 65 0 FOSTER CIT Y,
Slide 50: Building Healthy Partnerships
BUILDING HEALTHY PARTNERSHIPS (CORPORATE HEADQUARTERS 1920 MAIN STREET, SUITE 1200 IRVINE, CA 92614 (949) 407-0700 LOS ANGELES OFFICE SAN FRANCISCO OFFICE NASHVILLE OFFICE 11150 SANTA MONICA BOULEVARD, SUITE 1600 950 TOWER LANE, SUITE 1650 3000 MERIDIAN BOULEVARD, SUITE 200, LOS ANGELES, CA 90025 FO