Slide 1: Building Healthy Partnerships
Puce Building Healthy Partnerships May 2016
Slide 2: Transaction Overview
Transaction Overview Transaction SpinCo | Best Vehicle to Maximize the Value of Our HCRMC Real Estate Pro Forma HcP | Blue-Chip Healthcare REIT » » » » » » » » » HCP today announced the intention to spin off its HCR ManorCare (HCRMC) real estate portfolio in a new, publicly-traded REIT (SpinCo) Pro
Slide 3: Transaction Rationale and Benefits
Transaction Rationale and Benefits Maximize Total Value To HCP S| HCP SpinCo >» Diversified healthcare real estate platform with high quality portfolio >> Best vehicle to maximize value of HCRMC portfolio >» Sector-leading private-pay revenue sources » reinforce stability Able to deploy a wide range
Slide 4: Transforming HCP's High Quality Portfolio
Transforming HCP's High Quality Portfolio Pro Forma<1> Current Portfolio Transformation Hospital 5% Life Science 21% Properties 1,200 862 Annualized Portfolio Income $1.9Bn $1.4Bn Real Estate Average Age 24 years 21 years Post-Acute I Skilled Private Pay Sources 26% 80% Located in Top 31 MSAs 66% Le
Slide 5: Transforming HCP's High Quality Portfolio
Transforming HCP’s High Quality Portfolio Current Post Acute/Sklled Portfolio Hae) Transformation Hospital sone Properties 1,200 Annualized Portfolio Income $1.98n Real Estate Average Age 24 years Post-Acute / Skilled 26% Private Pay Sources 80% Located in Top 31 MSAs 66% Leading Tenant Relationship
Slide 6: Represents recently sourced new relationships
Represents recently sourced new relationships
Slide 7: Office Platform Senior Housing
Office Platform Senior Housing
Slide 8: HCP's Investment Thesis
HCP's Compelling Investment Thesis / High quality healthcare real estate platform / Premier portfolio weighted towards private-pay, higher growth sectors - 94% from Senior Housing, Life Science and Medical Office / Attractive same-store growth from diversified portfolio - Averaging 3.8% since 2010 (
Slide 9: Next Steps
Next Steps Announced plans to spin off HCRMC portfolio into SpinCo Concurrently: Form 10 becomes effective Distribution of SpinCo shares to shareholders; trading begins SpinCo Transaction expected to close in the second half of 2016 for HCP NEXT STEPS Execute HCP Financing Plan (including RIDEA II J
Slide 10: Disclaimer
Disclaimer This presentation is being presented solely for your information, is subject to change and speaks only as of the date hereof. Thrs presentation and comments made by management do not constitute an offer to sell or the solicitation of an offer to buy any secunties of HCP or any investment
Slide 11: Disclaimer
Disclaimer ‘his presentation is being presented solely for your information. I subject to change and speaks only 3s ofthe date hereof. This presentation andl comments made by ‘management do ot consttute an offer to sel othe solicitation of an offer to buy any securtes of HCP or any investment intere
Slide 12: Non-GAAP Reconciliations
Non-GAAP Reconciliations In thousands The following table represents Portfolio Income by sector: Three Months Ended March 31, 2016 Annualized Pro Forma Portfolio Income Unconsol. JV Cash NOI Pro Forma Portfolio Income Interest Income Portfolio Income Pro Forma Adjustments(1) Cash NOI Reclassificatio
Slide 13: Non-GAAP Reconciliations
Non-GAAP Reconciliations In thousands The following table represents the Same Property Portfolio: SPP Cash NOI(3) Exclude HCRMC(4) SPP Cash NOI, excluding HCRMC SPP Growth, excluding HCRMC Year Ended December 31, 2009 2010 $ 723,908 758,532 $ — — $ 723,908 758,532 4.8% 2010 2011 805,568 837,556 — —
Slide 14: Ed ee =.
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