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 18 Senior Housing 23 Post-Acute/Skilled 29 Life Science 32 Medical Office 35 Hospital 37 Unconsol
Slide 2: Vision: Building Healthy Partnerships
VISION Building Healthy Partnerships LIFE SCIENCE “FOR BOTH OPERATORS AND INVESTORS, HCP IS YOUR TRUSTED CAPITAL PARTNER IN A DYNAMIC HEALTHCARE ENVIRONMENT” RESEARCH MEDICAL OFFICE SENIOR HOUSING SENIOR HOUSING PREVENTATIVE MEDICINE $23B INVESTMENT PORTFOLIO SENIOR CARE HOSPITALIZATION RECOVERY POS
Slide 3: Sustainability
THIS QUARTER Sustainability Anaheim, CA 4 Leader In The Light Awarded the 2015 NAREIT Healthcare Leader in the Light Award; our 7th Leader in the Light award in 9 years. HCP sponsored and its employees participated in fundraising supporting the Walk to End Alzheimer’s® in Anaheim, CA and Nashville,
Slide 4: Summary
Summary As of and for the quarter ended December 31, 2015, dollars in thousands, except per share data PORTFOLIO INCOME 4% Hospital Three Months Ended December 31, 14% Medical Office NOI 471,913 449,288 Year-Over-Year SPP Cash NOI % change (0.3%) 3.5% 42% Senior Housing Adjusted EBITDA $ 504,610 $ 4
Slide 5: Portfolio Summary
Portfolio Summary As of and for the quarter ended December 31, 2015, dollars in thousands Property Portfolio Post-acute/skilled 4,389,570 109,374 Medical office 3,474,543 66,713 $21,454,191 $443,861 Senior housing $90,805 $6,676 $871,701 $23,135 Senior housing(1) $57,930 $— Medical office 131,010 —
Slide 6: 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% 0.4% 0.5% 0.7% 0.9% 1.3% 0.2% 0.8% 0.2% 0.4% 0.7% 0.7% 0 2 4 6 8 10 12 14 16 18 25 TERM (YEARS TO EXPIRATION) 95% INVESTMENT TYPE: Senior Housing Post-Acute/Skilled Hospital No Corporate Guaranty % Share of HCP Annua
Slide 7: Credit Profile
CREDIT Profile Financial Leverage(1) 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 (2) 2015 (3) Pre-CNL 2006 2007 Acquisition 2008 2009 2011 2012 2013 2014 Pre-CNL 2006 2007 20082009 Acquisition 2010 2011 2012 2013 2014 2015 Secured Debt Ratio(1)
Slide 8: Credit Profile
CREDIT Profile Same Property Cash NOI Growth Total Gross Assets(4) (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 2010 (5) 2011 2015(6) Pre-CNL 2006 2007 Acquisition 2008 2009 2012 2013 2014 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 HCP(2) Ma
Slide 9: Capitalization
Capitalization Dollars and shares in thousands, except price per share data TOTAL DEBT December 31, 2015 December 31, 2014 Term loans(2) 524,807 212,986 Mortgage debt 932,212 982,785 Consolidated Debt $11,069,003 $9,721,269 HCP’s share of unconsolidated JV other debt 192,600 175,063 Cash and cash eq
Slide 10: Capitalization: Common Stock and Equivalents
Capitalization Common Stock and Equivalents In thousands Common stock equivalent securities: Dilutive impact of options 103 — — 103 — — 148 Total common stock and equivalents 472,471 465,036 465,036 471,273 462,795 462,795 469,064 11 Heartland of Dublin Dublin, OH Convertible partnership units 5,975
Slide 11: Indebtedness and Ratios
Indebtedness and Ratios As of December 31, 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 2017 — — 750,000 6.02 581,891 6.08 1,331,891 63,074 3.02 1,394,965 5.91 2019 —
Slide 12: Indebtedness and Ratios
Indebtedness and Ratios December 31, 2015 December 31, 2014 Consolidated Debt/Consolidated Gross Assets(1) 45.6% 41.7% Consolidated Secured Debt/Consolidated Gross Assets 3.9% 4.2% Fixed Rate Total Debt 95.8% 90.6% 100% 100% FINANCIAL COVENANTS AS OF DECEMBER 31, 2015(3) Bank Line of Credit Secured
Slide 13: Investments
Investments Dollars in thousands INVESTMENTS (1) Includes Debt Investments that were converted into sale-leasebacks in April and July 2015. December 31, 2015 Description Three Months Ended Year Ended Debt Investments(1) 53,889 331,845 Development commitments — 248,272 Aurora MOB Aurora, CO 14 Total
Slide 14: Investments
For the year ended December 31, 2015, dollars and square feet in thousands INVESTMENTS Property Count Location/Portfolio Date Capacity Segment Investment Houston, TX(2) March 87 Units 1 Senior housing (RIDEA) $ 22,190 Germantown, TN(2) June 182 Units 1 Senior housing (RIDEA) 39,534 Houston, TX(3) Ju
Slide 15: Dispositions
Dispositions For the year ended December 31, 2015, dollars and square feet in thousands (1) Adjusted to reflect the Company’s pro rata share of unconsolidated joint ventures, as applicable. (2) In October 2015, the Company sold a 49% interest in 11 medical office buildings to Morgan Stanley Real Est
Slide 16: Developments and Capital Expenditures
Developments and Capital Expenditures As of December 31, 2015, dollars and square feet in thousands DEVELOPMENT PROJECTS IN PROCESS Estimated Completion Date Estimated Total Investment Investment to Date Name of Project Location Segment Capacity Robin Run Village - CCRC JV Indianapolis, IN Senior ho
Slide 17: Portfolio Summary
Portfolio Summary As of and for the quarter ended December 31, 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 (RIDEA) 108 2,681,111 47,817 21 15,403 Units 88.2 N/A N
Slide 18: Portfolio Summary: NOI, Cash NOI and Interest Income
Alexandra Court Thornton-Cleveleys, England Portfolio Summary For the quarter ended December 31, 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 130,990 4
Slide 19: Portfolio Diversification
Portfolio Diversification As of and for the quarter ended December 31, 2015, dollars in thousands CASH NOI BY STATE Senior Housing Post-Acute/ Skilled Life Science Medical Office % of Total State Properties Hospital Total TX 127 23,069 1,879 — 18,079 7,591 50,618 11 — — PA 57 7,356 24,214 4,733 36,3
Slide 20: Same Property Portfolio
Same Property Portfolio As of December 31, 2015, dollars in thousands THREE-MONTH SPP Post-acute/skilled 290 4,241,423 97 82.3% 83.9% (6.5)% (10.6)% 82.3% 83.2% 0.9% —% Medical office 209 2,951,877 85 91.3% 91.2% 1.8% 2.5% 91.3% 90.8% 1.4% 1.8% Total Portfolio 1,071 $19,463,420 91 0.1% (0.3)% 2.5% 3
Slide 21: Expirations and Maturities
Expirations and Maturities As of December 31, 2015, 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 109,716 7 9,248 — 32,633 55,035 12,800 2019 94,102 6 9,161 19,056 17,629 40,910
Slide 22: Senior Housing
Senior Housing As of and for the quarter ended December 31, 2015, dollars in thousands INVESTMENTS Property Count Cash NOI Occupancy % EBITDARM CFC EBITDAR CFC Property Portfolio Investment Units Assisted living 254 $3,346,575 $71,127 18,701 87.8 1.24x 1.06x CCRCs 11 526,660 14,109 3,088 86.1 1.28x
Slide 23: Senior Housing: Same Property Portfolio
Same Property Portfolio Dollars in thousands 4Q14 1Q15 2Q15 3Q15 4Q15 Investment $7,645,725 $7,719,292 $7,747,231 $7,778,715 $8,038,918 3-month Occupancy % 88.5 88.6 87.7 87.1 87.4 EBITDAR CFC 1.12x 1.10x 1.10x 1.09x 1.07x Total revenues $235,377 $231,230 $232,866 $231,968 $238,876 $160,831 $156,971
Slide 24: Lease and Debt Investment Relationships
Lease and Debt Investment Relationships As of and for the quarter ended December 31, 2015, dollars in thousands Leased Portfolio(1) Properties Cash NOI Sunrise Senior Living 1,340,485 24,982 27,184 48 98 5,555 89.2 1.44x 1.16x Harbor Retirement Associates 211,775 4,788 4,660 14 100 1,346 83.1 1.50x
Slide 25: Brookdale RIDEA Operating Portfolio
Brookdale* RIDEA Operating Portfolio *Brookdale Senior Living (NYSE:BKD) is headquartered in Brentwood, TN and is the leading operator of senior living communities throughout the United States (“U.S.”). Since 1986, Brookdale has been committed to providing senior living solutions primarily within pr
Slide 26: Brookdale RIDEA Operating Portfolio: New Supply Analysis
Brookdale RIDEA Operating Portfolio As of and for the quarter ended December 31, 2015, 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
Slide 27: Brookdale RIDEA Operating Portfolio Trend
Brookdale RIDEA Operating Portfolio Trend Dollars in thousands, except REVPOR TOTAL OPERATING PORTFOLIO(1) 4Q14 1Q15 2Q15(2) 3Q15 4Q15 Investment $1,616,220 $1,672,640 $2,593,843 $2,610,854 $2,681,111 3-month Occupancy % 86.7 86.4 86.0 87.7 88.2 NOI: Operating expenses (74,073) (74,598) (75,205) (10
Slide 28: Post-Acute/Skilled
Post-Acute/Skilled As of and for the quarter ended December 31, 2015, dollars in thousands INVESTMENTS Leased Properties Property Count Cash NOI Occupancy % EBITDARM CFC EBITDAR CFC Investment Beds HCRMC DFLs 256 3,995,292 98,562 33,159 83.8 N/A N/A Interest Income Debt Investments Investment DSC Ta
Slide 29: Post-Acute/Skilled: Same Property Portfolio
Post-Acute/Skilled Dollars in thousands SAME PROPERTY PORTFOLIO 4Q14 1Q15 2Q15 3Q15 4Q15 Investment $5,651,445 $5,184,045 $5,214,224 $5,244,907 $4,241,423 3-month Occupancy % 83.9 84.1 85.7 83.2 82.3 Total revenues $134,636 $135,351 $123,549 $124,756 $125,857 $134,633 $135,305 $123,499 $124,708 $125
Slide 30: HCR ManorCare Portfolio Summary
Post-Acute/Skilled HCR ManorCare* Portfolio Summary *The HCR ManorCare health care family comprises centers that are leading providers of short-term, post-acute services and long-term care. Nearly 55,000 caregivers nationwide provide quality care for patients and residents through a network of more
Slide 31: Life Science
Life Science As of and for the quarter ended December 31, 2015, dollars and square feet in thousands INVESTMENTS Property Count Cash NOI Square Feet Occupancy % Leased Properties Investment San Diego 24 681,895 10,731 1,788 95.5 118 $3,795,165 $67,690 7,550 98.2 SAME PROPERTY PORTFOLIO 4Q14 1Q15 2Q1
Slide 32: 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 2017 883 12 32,633 12 419 16,759 310 12,657 154 3,217 Thereafter 4,416 60 155,695 55 2,538 104,922 1,219 32,357 659 18,416 LEASING ACTIV
Slide 33: Life Science: Tenant Concentration
11099 N. Torrey Pines San Diego, CA Life Science As of December 31, 2015, dollars and square feet in thousands TENANT CONCENTRATION Genentech 856 12 45,117 16 LinkedIn Corporation 373 5 13,932 5 Google 290 4 9,758 3 Takeda 166 2 7,511 3 ARUP 324 4 6,087 2 34 7,411 100 $283,613 100 Other 3,618 50 113
Slide 34: Medical Office
Medical Office As of and for the quarter ended December 31, 2015, dollars and square feet in thousands INVESTMENTS Healthcare System Affiliated % Property Count Cash NOI Square Feet Occupancy % Leased Properties Investment Off-campus 50 732,087 12,356 2,942 89.9 69.8 SAME PROPERTY PORTFOLIO 4Q14 1Q1
Slide 35: 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 2017 2,306 15 55,035 15 1,835 43,893 471 11,142 Thereafter 8,857 56 194,227 56 7,338 159,573 1,519 34,654 LEASING ACTIVITY Leased Square Feet A
Slide 36: Hospital
Hospital As of and for the quarter ended December 31, 2015, dollars in thousands INVESTMENTS Occupancy %(1) Property Count Cash NOI EBITDARM CFC EBITDAR CFC Leased Properties Investment Beds Other 11 213,857 6,125 713 61.9 2.54x 2.29x SAME PROPERTY PORTFOLIO 4Q14 1Q15 2Q15 3Q15 4Q15 Investment $594,
Slide 37: Unconsolidated Joint Ventures
Unconsolidated Joint Ventures As of and for the quarter ended December 31, 2015, dollars and square feet in thousands INVESTMENTS Medical Office(1) Life Science Senior Housing(2) Total Joint ventures’ Investment $347,281 $13,398 $154,067 $179,816 HCP’s net equity investment(3) 107,334 4,621 68,582 3
Slide 38: Entrance Fee CCRC Portfolio
Unconsolidated Joint Ventures Brookdale RIDEA Entrance Fee CCRC Portfolio As of and for the quarter ended December 31, 2015, dollars in thousands, except REVPOR CAPITALIZATION PORTFOLIO METRICS Joint venture’s mortgage debt (excludes Entrance Fees) $214,703 Units 7,174 HCP’s net equity investment(1)
Slide 39: Reconciliation - HCRMC EBITDAR and FCC
Reconciliation HCRMC EBITDAR and FCC Dollars in thousands HCRMC RESULTS OF OPERATONS(1) Year Ended December 31, 2015 2014 Expenses: Depreciation and amortization expense (137,437) (142,867) Income before other (expenses) income and income taxes $393,608 $226,634 Interest expense (457,557) (406,854)
Slide 40: Meridian Arvada, Arvada, CO
Meridian Arvada Arvada, CO 41
Slide 41: 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 42: 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 43: Definitions
REPORTING 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 EBITDA*
Slide 44: Definitions
REPORTING 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. Th
Slide 45: Reconciliations of Non-GAAP Measures
Reconciliations of Non-GAAP Measures Dollars in thousands EBITDA AND ADJUSTED EBITDA FROM NET INCOME Three Months Ended December 31, Year Ended December 31, 2015 2014 2015 2014 Interest expense 122,027 114,987 479,596 439,742 Continuing operations (2,391) (2,590) (9,011) 250 Depreciation and amortiz
Slide 46: Reconciliations of Non-GAAP Measures
Reconciliations of Non-GAAP Measures Dollars in thousands ADJUSTED FIXED CHARGE COVERAGE Three Months Ended December 31, Year Ended December 31, 2015 2014 2015 2014 Interest expense 122,027 114,987 479,596 439,742 Capitalized interest 2,803 2,177 8,798 10,362 TOTAL GROSS ASSETS December 31, 2015 Dec
Slide 47: Reconciliations of Non-GAAP Measures
Reconciliations of Non-GAAP Measures Dollars in thousands TOTAL DEBT(1) December 31, June 30, 2006 2013 2012 2011 2010(2) 2009 2008 2007 2006 Term loans 225,950 221,194 — (11,072) 198,518 517,371 1,348,429 503,024 — Mortgage debt 1,392,765 1,659,453 1,691,898 1,172,264 1,768,469 1,572,644 1,269,725
Slide 48: 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 49: Forward Looking Statements & Risk Factors
The Atrium 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 27A
Slide 50: Forward Looking Statements & Risk Factors (Continued)
Aurora MOB Aurora, 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 Company’s costs of co
Slide 51: Building Healthy Partnerships
building healthy partnerships CORPORATE HEADQUARTERS 1920 MAIN STREET, SUITE 1200 IRVINE , CA 92614 (949) 407-0700 LOS ANGELES OFFICE 11150 SANTA MONICA BOULEVARD, SUITE 1600 LOS ANGELE S, CA 90025 SAN FRANCISCO OFFICE 950 TOWER LANE , SUITE 1650 FOSTER CITY, CA 94404 NASHVILLE OFFICE 3000 MERIDIAN
Slide 52: 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