Slide 1: Table of Contents
Overview 3 Portfolio Summary 4 Capitalization and Debt 6 Acquisitions, Commitments and Dispositions 9 Development and Redevelopment 11 Capital Expenditures 14 Portfolio Portfolio Overview 16 Senior Housing Triple-net 20 Senior Housing Operating Portfolio 24 Life Science 30 Medical Office 33 Other 36
Slide 2: The Numbers: Overview
THE NUMBERS Overview(1) Dollars and shares in thousands, except per share data 3Q15 4Q15 1Q16 2Q16 3Q16 Diluted earnings per common share $ 0.25 $ (1.29) $ 0.25 $ 0.64 $ 0.32 Rental and operating revenue(2) 690,293 694,087 675,776 683,158 687,602 Cash NOI and interest income(3) 471,536 483,896 472,7
Slide 3: Portfolio Summary
Portfolio Summary As of and for the quarter ended September 30, 2016, dollars in thousands CASH NOI AND INTEREST INCOME Senior housing triple-net 292 18 $ 5,094,809 $ 101,465 91.6 Senior housing triple-net 22% QCP 26% Life science 114 19 3,496,300 72,062 100.0 Other 77 31 975,543 28,241 75.5 $477.8M
Slide 4: Portfolio Summary: NOI, Cash NOI and Interest Income
Portfolio Summary For the quarter ended September 30, 2016, dollars in thousands NOI, CASH NOI AND INTEREST INCOME Rental and Operating Revenue(1) Operating Expenses Interest Income Cash NOI and Interest Income NOI(2) Cash NOI(2) Senior housing triple-net $ 104,262 $ (1,794) $ 102,468 $ 101,465 $ —
Slide 5: Capitalization
Capitalization Dollars and shares in thousands, except price per share data TOTAL CAPITALIZATION September 30, 2016 Shares Value Total Value Convertible partnership (DownREIT) units(1) 5,830 37.95 221,249 Consolidated Debt 10,920,535 HCP’s share of unconsolidated JV debt 380,656 COMMON STOCK AND EQU
Slide 6: Indebtedness and Ratios: Debt Maturities
Indebtedness and Ratios As of September 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 2017 — 177,867 750,000 6.02 583,541 6.08 1,511,408 63,074 3.01 1,574,482 5.46
Slide 7: Indebtedness and Ratios: Debt Structure
Indebtedness and Ratios As of September 30, 2016, dollars in thousands, includes HCP’s pro rata share of unconsolidated JVs DEBT STRUCTURE Weighted Average Balance % of Total Interest Rate Years to Maturity Floating rate 93,267 1 2.78% 1.9 Unsecured Fixed rate 8,585,626 77 4.55% 5.8 Combined $ 10,13
Slide 8: Acquisitions and Commitments
Acquisitions and Commitments For the nine months ended September 30, 2016, dollars and square feet in thousands Forward Yield(1) Investment Property Count Date Capacity Property Type QTD YTD NOI Cash NOI Wholly-Owned Various January 484 Units/Beds 6 $ — $ 95,471 Easton, PA February 64 Beds 1 Senior
Slide 9: Dispositions
Dispositions For the nine months ended September 30, 2016, dollars and square feet in thousands Sales Price Trailing Yield(1) Property Count NOI Cash NOI Date Capacity Property Type QTD YTD Wholly-Owned Various, HCRMC January, February 1,046 Beds/Units 11 $ — $ 62,269 Houston, TX April 50 Sq. Ft. 1
Slide 10: Developments
Developments As of September 30, 2016, dollars and square feet in thousands DEVELOPMENT PROJECTS IN PROCESS Placed In Service(1) Costs Incurred to Date Cost to Complete Total at Completion Name of Project MSA Segment Yield(2) Pearland II Houston, TX Medical office $ 4,129 $ 11,042 $ 3,630 $ 18,801 C
Slide 11: The Cove at Oyster Point Development
The Cove at Oyster Point Development South San Francisco, CA 12
Slide 12: Redevelopments and Land Held for Development
Redevelopments and Land Held for Development As of September 30, 2016, dollars and square feet in thousands REDEVELOPMENT PROJECTS IN PROCESS Costs Incurred to Date Costs to Complete Total at Completion Project Start Estimated CompletionYield(1) Name of Project MSA Segment Museum Medical Tower Houst
Slide 13: Capital Expenditures: Quarter-to-Date
Quarter-to-Date For the quarter ended September 30, 2016, dollars in thousands Senior Housing Triple-net Senior Housing Operating Life Science Medical Office Other Total Recurring capital expenditures $ 630 $ 4,028 $ 622 $ 4,366 $ — $ 9,646 Lease commissions — — 3,514 2,265 — 5,779 Non-recurring cap
Slide 14: Capital Expenditures: Year-to-Date
Year-to-Date For the nine months ended September 30, 2016, dollars in thousands Senior Housing Triple-net Senior Housing Operating Life Science Medical Office Other Total Recurring capital expenditures $ 630 $ 11,517 $ 2,201 $ 10,416 $ — $ 24,764 Lease commissions — — 6,938 9,308 — 16,246 Non-recurr
Slide 15: Portfolio Diversification
Portfolio Diversification As of and for the quarter ended September 30, 2016, dollars in thousands, includes HCP’s pro rata share of unconsolidated JVs CASH NOI AND INTEREST INCOME BY MSA Senior Housing Triple-net Senior Housing Operating % of Total Life Science Medical Office MSA Properties Total O
Slide 16: Same Property Portfolio
Same Property Portfolio As of September 30, 2016, dollars in thousands, includes HCP’s pro rata share of unconsolidated JVs THREE-MONTH SPP Senior housing operating 120 3,369,107 88 87.7% 86.9% 3.3% 3.3% 87.7% 87.3% (6.0%) (6.0%) Medical office 217 3,306,028 92 92.0% 92.3% 1.2% 3.1% 92.0% 92.1% 0.3%
Slide 17: Expirations and Maturities
Expirations and Maturities(1) As of September 30, 2016, dollars in thousands EXCLUDES PURCHASE AND PREPAYMENT OPTIONS Annualized Base Rent Senior Housing Triple-net Life Science Medical Office Interest Income Year Total % of Total Other QCP 2017 113,363 7 9,433 34,437 58,814 7,815 419 2,445 2019 129
Slide 18: Triple-Net Master Lease Profile Heat Map
HEAT MAP Triple-Net Master Lease Profile(1) INVESTMENT TYPE Senior Housing QCP Other 1.2% 0.4% 0.4% 0.1% 0.8% No Corporate Guaranty Share of HCP Cash NOI and Interest Income 0.1% 0.7% % 0.2% 0.9% 0.2% 1.3% 0.6% 0.9% 0.5% 0.4% 1.2% 0.2% 0.1% 0.7% 0.5% 0.7% 24.2% 8.4% 1.2% (2) 0.7% 0.2% 0.1% 0.4% 0.3%
Slide 19: Senior Housing Triple-net
Senior Housing Triple-net As of and for the quarter ended September 30, 2016, dollars in thousands Property Count Cash NOI Occupancy % EBITDARM CFC EBITDAR CFC Property Portfolio Investment Units Assisted living 215 $ 3,161,387 $ 61,511 16,802 85.8 1.21x 1.03x CCRC 11 531,148 13,418 3,083 85.2 1.26x
Slide 20: Senior Housing Triple-net Same Property Portfolio
Senior Housing Triple-net Same Property Portfolio Dollars in thousands 3Q15 4Q15 1Q16 2Q16 3Q16 Investment $ 4,954,689 $ 4,979,036 $ 4,992,157 $ 5,002,712 $ 5,017,247 3-month Occupancy % 87.0 87.2 86.6 86.1 86.1 EBITDAR CFC 1.10x 1.08x 1.07x 1.06x 1.05x Total revenues $ 102,129 $ 107,335 $ 102,573 $
Slide 21: Senior Housing Triple-net New Supply - Assisted Living
Senior Housing Triple-net New Supply - Assisted Living As of and for the quarter ended September 30, 2016, dollars in thousands NEW SUPPLY ANALYSIS HCP Portfolio 5-Mile Radius(1) % of Triple-net Cash NOI Cash NOI Exposed to New Supply(3) 5 Year 80+ Population Growth % 2016-2021 Properties/ Units Und
Slide 22: Senior Housing Triple-net New Supply - Independent Living & CCRC
Senior Housing Triple-net New Supply - Independent Living & CCRC As of and for the quarter ended September 30, 2016, dollars in thousands NEW SUPPLY ANALYSIS HCP Portfolio 5-Mile Radius(1) % of Triple-net Cash NOI Cash NOI Exposed to New Supply(3) 5 Year 75+ Population Growth % 2016-2021 Properties/
Slide 23: SHOP
SHOP As of and for the quarter ended September 30, 2016, dollars in thousands Property Count Cash NOI Occupancy % Investment Units REVPOR Assisted living 83 $ 1,602,848 $ 25,167 8,683 86.2 4,890 CCRC 1 41,399 594 242 79.8 4,205 HCP’s Share of Unconsolidated JVs Independent living 3 59,299 484 415 93
Slide 24: SHOP By Market
SHOP By Market As of and for the quarter ended September 30, 2016, dollars in thousands, except REVPOR, includes HCP’s pro rata share of unconsolidated JVs OPERATING PORTFOLIO METRICS Units(1) REVPOR(1) % of Cash NOI 3-Month Occupancy % MSA Investment Cash NOI AL IL CCRC AL IL CCRC Tampa, FL $ 335,1
Slide 25: SHOP Trend
SHOP Trend Dollars in thousands, except REVPOR, includes HCP’s pro rata share of unconsolidated JVs TOTAL OPERATING PORTFOLIO 3Q15 4Q15 1Q16 2Q16 3Q16 Investment $ 3,366,578 $ 3,492,143 $ 3,542,464 $ 3,539,673 $ 3,831,503 3-month Occupancy % 86.8 87.4 88.0 87.3 87.9 NOI: Operating expenses (150,435)
Slide 26: SHOP Same Property Portfolio
SHOP Same Property Portfolio Dollars in thousands, except REVPOR, includes HCP’s pro rata share of unconsolidated JVs SAME PROPERTY PORTFOLIO TREND 3Q15 4Q15 1Q16 2Q16 3Q16 Investment $ 3,263,932 $ 3,290,804 $ 3,318,490 $ 3,337,458 $ 3,369,107 3-month Occupancy % 86.9 87.5 88.0 87.3 87.7 NOI and Cas
Slide 27: SHOP New Supply - Assisted Living
SHOP New Supply - Assisted Living As of and for the quarter ended September 30, 2016, dollars in thousands, includes HCP’s pro rata share of unconsolidated JVs NEW SUPPLY ANALYSIS HCP Portfolio 5-Mile Radius(1) % of SHOP Cash NOI Cash NOI Exposed to New Supply(3) 5 Year 80+ Population Growth % 2016-
Slide 28: SHOP New Supply - Independent Living & CCRC
SHOP New Supply - Independent Living & CCRC As of and for the quarter ended September 30, 2016, dollars in thousands, includes HCP’s pro rata share of unconsolidated JVs NEW SUPPLY ANALYSIS HCP Portfolio 5-Mile Radius(1) % of SHOP Cash NOI Cash NOI Exposed to New Supply(3) 5 Year 75+ Population Grow
Slide 29: Life Science
Life Science As of and for the quarter ended September 30, 2016, dollars and square feet in thousands, includes HCP’s pro rata share of unconsolidated JVs INVESTMENTS Property Count Cash NOI Square Feet Occupancy % MSA Investment San Francisco/San Jose, CA(1) 80 2,605,503 $ 54,668 4,431 97.8 $ Remai
Slide 30: Life Science Leasing Activity
Life Science Square feet in thousands, includes HCP’s pro rata share of unconsolidated JVs LEASING ACTIVITY Leased Square Feet Annualized Base Rent Per Sq. Ft. % Change In Rents HCP Tenant Improvements Per Sq. Ft. Leasing Costs Per Sq. Ft. Average Lease Term (Months) Retention Rate YTD Acquisitions
Slide 31: Medical Office
Medical Office As of and for the quarter ended September 30, 2016, dollars in thousands, includes HCP’s pro rata share of unconsolidated JVs PORTFOLIO BY MARKET Square Feet On-campus(1) Off-campus(2) Total Cash Occupancy Dallas, TX $ 456,296 $ 8,257 89.6 1,944 — 139 — 2,083 — 12 Seattle, WA 211,453
Slide 32: Medical Office: Health Systems and Leasing Activity
Medical Office As of and for the quarter ended September 30, 2016, square feet in thousands, includes HCP’s pro rata share of unconsolidated JVs SQUARE FEET BY HEALTH SYSTEM Square Feet Directly Leased by Health System Health System Rank(1) % of Annualized Base Rent Credit Rating Adjacent / Anchored
Slide 33: Medical Office: Lease Expirations and Same Property
Medical Office As of and for the quarter ended September 30, 2016, dollars and square feet in thousands, includes HCP’s pro rata share of unconsolidated JVs SELECTED LEASE EXPIRATION DATA (NEXT 5 YEARS) Total On-Campus Off-Campus 2017 2,439 15 58,814 16 1,966 47,633 473 11,181 2019 1,897 12 45,403 1
Slide 34: Other
Other As of and for the quarter ended September 30, 2016, dollars in thousands, includes HCP’s pro rata share of unconsolidated JVs LEASED PROPERTIES Occupancy %(1) Property Count Cash NOI EBITDARM CFC EBITDAR CFC Type/Operator Investment Capacity Acute care 5 $ 380,185 $ 15,206 1,435 53.3 8.06x 7.5
Slide 35: Other Same Property Performance
Other Same Property Performance As of and for the quarter ended September 30, 2016, dollars in thousands HOSPITALS 3Q15 4Q15 1Q16 2Q16 3Q16 Investment $ 570,105 $ 570,105 $ 570,105 $ 570,105 $ 570,061 3-month Occupancy %(1) 56.3 55.2 53.8 59.5 55.3 EBITDAR CFC 5.84x 5.98x 6.10x 6.25x 6.27x Total rev
Slide 36: Other Same Property Performance: Total Other
Other Same Property Performance As of and for the quarter ended September 30, 2016, dollars in thousands, includes HCP’s pro rata share of unconsolidated JVs TOTAL OTHER(1) 3Q15 4Q15 1Q16 2Q16 3Q16 Investment $ 975,111 $ 964,736 $ 955,479 $ 935,735 $ 925,478 NOI: Operating expenses (604) (1,070) (1,
Slide 37: Unconsolidated Joint Ventures
Unconsolidated Joint Ventures As of and for the quarter ended September 30, 2016, dollars and square feet in thousands Senior Housing Operating Medical Office Life Science Total CCRC Non-CCRC Other(1) Joint ventures’ investment $ 1,813,415 $ 1,398,909 $ 232,961 $ 14,374 $ 155,733 $ 11,438 HCP’s net
Slide 38: 2017 Outlook and 2016 Guidance
2017 Outlook and 2016 Guidance Projected full year 2017 and 2016, dollars in millions, except per share amounts TENTATIVE/PRELIMINARY AND SUBJECT TO CHANGE 2017 Outlook (November 1, 2016) 2016 Current Guidance (November 1, 2016) 2016 Prior Guidance (August 9, 2016)(1) Diluted earnings per common sha
Slide 39: Appendix QCP
Appendix QCP As of and for the quarter ended September 30, 2016, dollars and square feet in thousands OPERATOR CONCENTRATION Occupancy % EBITDARM CFC EBITDAR CFC Operator/Property Property Type Property Count Investment Cash NOI Beds/Units HCRMC 310 $ 5,121,028 $ 116,390 36,983 82.2 N/A N/A Tandem C
Slide 40: Appendix HCR ManorCare Portfolio Summary
Appendix HCR ManorCare Portfolio Summary As of and for the quarter ended September 30, 2016, dollars in thousands HCP INVESTMENT IN HCRMC Property Count Cash NOI Occupancy % Investment Capacity Post-acute/skilled 249 3,941,848 98,875 32,500 Beds 82.3 For the trailing twelve months ended, dollars in
Slide 41: Reconciliation of HCRMC EBITDAR and FCC
Appendix Reconciliation of HCRMC EBITDAR and FCC Dollars in millions HCRMC UNAUDITED RESULTS OF OPERATIONS(1) Trailing 12 Months Ended September 30, 2016 June 30, 2016 Operating and general and administrative expenses (3,408.2) (3,455.1) Asset impairment(2) (6.0) (6.0) Interest expense (462.7) (467.
Slide 42: 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 43: 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 44: Definitions
REPORTING Definitions Occupancy For life science facilities and medical office buildings, Occupancy represents the percentage of total rentable square feet leased where rental payments have commenced, including month-to-month leases, as of the end of the period reported. For senior housing triple-ne
Slide 45: Definitions
REPORTING Definitions Total Secured Debt* Consolidated Secured Debt plus the Company’s pro rata share of mortgage debt from the Company’s unconsolidated joint ventures. Total Secured Debt is a supplemental measure of the Company’s financial position, which enables both management and investors to an
Slide 46: 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, 2016 2015 Interest expense 117,860 122,157 Depreciation and amortization of real estate, in-place lease and other intangibles 142,874 134,704 HCP’s share of unconsoli
Slide 47: Reconciliations of Non-GAAP Measures
Reconciliations of Non-GAAP Measures As of September 30, 2016, dollars in thousands INVESTMENT Senior Housing Triple-net Life Science Medical Office SHOP Other QCP Non-Segment Total Investments in and advances to unconsolidated joint ventures — (501,108) (68,251) (21,414) (1,324) — — (592,097) Conso
Slide 48: Reconciliations of Non-GAAP Measures
Reconciliations of Non-GAAP Measures Dollars in thousands TOTAL DEBT September 30, 2016 December 31, 2015 September 30, 2015 Term loans(2)(3) 462,181 524,807 538,912 Mortgage debt(2) 762,715 932,212 938,988 Consolidated Debt $ 10,920,535 $ 11,069,003 $ 11,098,089 HCP’s share of unconsolidated JV oth
Slide 49: 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 50: Forward-Looking Statements & Risk Factors
The Cove at Oyster Point Development South San Francisco, CA 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 statement
Slide 51: Forward-Looking Statements & Risk Factors (Continued)
The Solana Preserve Houston, TX Forward-Looking Statements & Risk Factors (Continued) including those affecting the 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
Slide 52: Corporate Headquarters and Offices
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, CA 94 4 04 NASHVILLE OFFICE 3000 MERIDIAN B OULEVARD
Slide 53: 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