INVESTOR DAY MAY 11, 2015 o 3 YEARS 0 STRONG TODAYS agenda HCPs - - PowerPoint PPT Presentation

3

• YEARS

STRONG

INVESTOR DAY

MAY 11, 2015

THREE DECADES STRONG

THREE DECADES STRONG

• STRATEGY. EXECUTION. RESULTS.

1

30

YEARS

STRONG

TODAY’S agenda

• HCP’s Strategy and Industry Overview

2 Lauralee Martin, President and CEO

Strategy

• HCP’s Investment Approach

13 Paul Gallagher, Chief Investment Officer

• HCP’s Sector Overviews

19 Line of Business Leaders

Execution Results Conclusion

• HCP’s Financial Results and Balance Sheet

67 Tim Schoen, Chief Financial Officer

• Concluding Remarks and Q&A

77

2

30

YEARS

STRONG

* Tenure (HCP/Industry).

Lauralee Martin

President & CEO (2/38)*

Paul Gallagher

Chief Investment Officer (12/30)

Tim Schoen

Chief Financial Officer (9/21)

Jim Mercer

General Counsel (4/43)

Line of Business Leaders

HCP’ s veteran senior leadership

Kendall Young Senior Housing (5/31) Darren Kowalske Post-Acute/Hospital (1/25) John Stasinos International (12/12) Tom Klaritch Medical Office (16/32) Jon Bergschneider Life Science (15/18)

Strategy & Industry Overview

3

30

YEARS

STRONG

1985 2011 2003 2006 2007 2015

BUILDING UPON 30 years of success

Size:

1985: HCP went public with 24 skilled nursing facilities and hospitals 2003: Acquired MedCap Properties from HCA, establishing our MOB platform 2006: Acquired CNL Retirement Properties for $5.3B, expanding into senior housing 2011: Completed $6.1B acquisition of HCR ManorCare portfolio 2007: Acquired Slough Estates for $2.9B, establishing a 5 million sq. ft. Life Science platform in San Francisco and San Diego 2015: Expanded International platform to over $1B

$90M $24B(1)

1999: Completed $1B merger with American Health Properties

1999

(1) Based on Investment Portfolio as of 3/31/15, and reflecting pro forma adjustments for significant transactions including HCR lease amendment, sale of 50 HCR non-strategic assets and pending acquisitions. See Appendix for details regarding these pro forma adjustments.

4

30

YEARS

STRONG

Strategy & Industry Overview

Brookdale Partnership for Growth Growth platforms:

CCRC and RIDEA

Upgraded credit on triple-net leases Sold 9 non-strategic assets Eliminated all purchase options

• n $1.3B of private-pay senior housing

assets

HCR ManorCare Strengthen the Operator Amended master lease

• Improved coverage
• Economic trades
• Increased financial flexibility for

HCR to grow

Marketing 50 non-strategic assets

Creating value for HCP and our operating partners

5

30

YEARS

STRONG

Strategy & Industry Overview

HCP IS continuing to grow

Maximize

Organic Growth

Empower

Sector Leaders

Expand

Relationships

Source

New Investments

6

30

YEARS

STRONG

Strategy & Industry Overview

$1 Billion International Platform Grew U.K. investments 4X to >$1 Billion Opened London office Accretive Investments Since 2014 $3.4 Billion Investments(1) Accretive to FAD per Share Diversified Geographically

(1) Reflects acquisitions and developments since January 2014, inclusive of the $1.5B in 2015 YTD as discussed on HCP’s earnings call on 5/5/15.

SIGNIFICANT investment growth

65% Existing Relationships 35% New Relationships 7.4% Blended going-in cash yield

and… …at an attractive

7

30

YEARS

STRONG

Strategy & Industry Overview

Building new relationships

Senior Housing/Care MOB/Hospital Systems Academic Institutions Life Science and Venture Capital

8

30

YEARS

STRONG

Strategy & Industry Overview

U.S. HEAL THCARE EXPENDITURES large and growing

Favorable Fundamentals? OR, an Unsustainable Trajectory?

16% 17% 18% 19% 20% 2013 2015 2017 2019 2021 2023 National Health Expenditures as % of GDP +200 bps  projected to increase to $5 Trillion

Source: CMS.

9

30

YEARS

STRONG

Strategy & Industry Overview

continuum OF healthcare real estate OPPORTUNITIES

10

30

YEARS

STRONG

Strategy & Industry Overview

recent consolidation INVOLVING HCP’S PARTNERS

Consolidation results in increased Scale,

• perating Synergies and expanded Services

Business Combination Affiliation Collaboration

11

30

YEARS

STRONG

Strategy & Industry Overview

U.S. HEAL THCARE REAL ESTATE still very fragmented

$1

Trillion

14% owned by

• ther public REITs

3% HCP We are only in the beginning stages of consolidation for this enormous industry

Source: Company estimates.

12

30

YEARS

STRONG

Strategy & Industry Overview

RIDEA JV 13% Office Platform 30% Triple-Net Leased 50% $24B

Investment Portfolio

Development 3% 4% Debt Investment

HCP’ s diverse AND growing PORTFOLIO(1)

By Investment Type By Sector

Senior Housing 38% Post- Acute/Skilled 24% Life Science 14% MOB 14% $1.9B

Portfolio Income

Hospital 5% International 5%

(1) Based on Investment Portfolio as of 3/31/15 (by investment type) and annualized Q1 2015 Portfolio Income (by sector), each adjusted to reflect pro forma impact from significant transactions including HCR lease amendment, sale of 50 HCR non-strategic assets and pending acquisitions. See Appendix for details regarding these pro forma adjustments.

HCP | Furze Hill Lodge Operated by Maria Mallaband Kingswood, UK

INVESTMENT APPROACH PAUL GALLAGHER

14

14

30

YEARS

STRONG

Investment Approach

Simple strategy:

achieve Attractive Risk-adjusted Returns

LOWER

Potential Risk & Reward

HIGHER

Mezzanine Debt (optionality) SH RIDEA and Re/Development Triple-Net (master) Lease

Acute-Care / Specialty Hospitals CCRCs Post-Acute/Skilled UK Care Homes Senior Housing Medical Office Life Science Office

Buy Right and Structure Matters

15

15

30

YEARS

STRONG

Investment Approach

OPTIONALITY : Converting Debt to Real Estate

» Formation/Safanad acquisition of HC-One, and » add-on HC-One acquisition of Meridian

converted one-third of total acquisition financing to triple-net leased real estate

» HCR ManorCare CMBS mezz tranche, and » add-on secured CMBS debt investment

converted to real estate as part of larger sale/leaseback Executed since 2014

» American Retirement Corp. (ARC)

converted mezz debt to Entrance Fee CCRCs

» Formation Development

converted 2 development loans to fee ownership of brand new communities

Senior Housing UK Care Homes Post-Acute/ Skilled

16

30

YEARS

STRONG

Investment Approach

HCP’ s Acquisition Platform is not easy to replicate

5 Diversified Lines of Business 30 Years of Relationship Building Expanded Acquisition Teams Expanded Relationships

Robust Deal Pipeline

Consistent mid-size

• pportunities

Larger, strategic portfolio transactions and

17

17

30

YEARS

STRONG

Investment Approach

HCP’ s opportunistic & disciplined capital allocation(1)

By Investment Type By Sector

Debt Investment 21% Development 10% RIDEA JV 45% Triple-net Leased 24%

7.4%

Blended Going-in Cash Yield

Senior Housing 52% International 27% MOB 15% 6%

$3.4B

Accretive Acquisitions Since 2014

Life Science

(1) Reflects acquisitions and developments since January 2014, inclusive of the $1.5B in 2015 YTD as discussed on HCP’s earnings call on 5/5/15.

18

18

30

YEARS

STRONG

Video in Progress: Andy Smith, CEO Brookdale Senior Living

19

3

• YEARS

STRONG

SENIOR HOUSING KENDALL YOUNG

Senior Housing 38%

HCP | The Solana Germantown Operated by Brookdale Germantown, TN

Senior Housing

20

30

YEARS

STRONG

SENIOR HOUSING organization

Larry Mohr

Senior Vice President Asset Management

Darrin Smith

Senior Vice President Acquisitions

4

Acquisitions Professionals

Kendall Young

4

Asset Management Professionals

Lease Administration and Capital Asset Management

Senior Housing

21

30

YEARS

STRONG

current Industry Environment

Aligned with premier operators, HCP is well positioned to grow in Senior Housing Continuum of Care Robust Acquisitions Favorable Fundamentals

» Macro: more new capacity

needed to meet demand growth in top 99 NIC markets

» Micro: submarket story » HCP performance in-line with,

• r outperforming, market

89.5% 86.6% 94.1% 83.8% 87.9% 90.9%

Houston Chicago Miami HCP RIDEA Portfolio NIC Market Data

2.4% 0.2% 1.1% 2.3% 1.3% 2.0%

HCP’s Top 3 RIDEA Markets: Q1 2015 Occupancy & YoY change

» Ancillary service offerings

help attract residents and increase length of stay

» Despite a competitive acquisition market, HCP has been

active in executing accretive senior housing investments – aggregating $1.8 billion since 2014

Source: NIC MAP

22

Senior Housing

22

30

YEARS

STRONG

substantial accretive external growth momentum

Executed $1.8B of acquisitions & developments since 2014 at a blended yield

• f 7.3%, accretively growing our Senior Housing portfolio by 20%

$588M CCRC JV

Portfolio Acquisition ($1.2B total asset value)

$849M Chartwell

Portfolio Acquisition

$63M MBK Venture

($126M total asset value)

$108M new real

estate via converting debt investments

$80M Ground-up

Developments

$88M Add-on

Sale/Leaseback Acquisition

Senior Housing

23

30

YEARS

STRONG

32% 12% 9% 12% 2% 1% 32%

portfolio operated by premier partners $725M

$9.4B portfolio operated by premier partners, providing strong internal growth

65% Triple-net

Leased Portfolio

33% RIDEA

Investments

2% “in-the-money”

development loans

a b a b c d a b c d a

b

Portfolio Income(1)

a b c d

(1) Based on annualized Q1 2015 Portfolio Income, adjusted to reflect pro forma impact from significant transactions including HCR lease amendment, sale of 6 HCR non-strategic assets and pending acquisitions. See Appendix for details regarding these pro forma adjustments.

24

Senior Housing

24

30

YEARS

STRONG

20% 60% 20%

Triple-net master leases anchor recurring internal growth

» Limited expirations – weighted

average remaining term of 12 years

» Minimal exposure to <1x coverage

pools without corporate guaranty

Assisted Living Independent Living Memory Care

» 33,500 units; diversified care mix(2) » 2.75% to 3% average annual

escalators

$470M

Cash NOI(1)

(1) Based on annualized Q1 2015 Cash NOI, adjusted to reflect pro forma impact from significant transactions including HCR lease amendment and sale of 6 HCR non-strategic assets. See Appendix for details regarding these pro forma adjustments. (2) Care mix breakout (60% AL, 20% IL, 20% MC) reflected in the pie chart is based on units.

Heat Map

(Page 5 of HCP Q1 2015 supplemental)

25

Senior Housing

25

30

YEARS

STRONG

RIDEA platform further elevates internal growth

7.4% blended return on HCP invested capital, driving outsized growth

5 RIDEA Portfolios 122 properties 22,400 units

Capital Investments & Operator Services Driving Outsized

Growth

strong same-store growth +7.6% +4.3% >6%

2013

2014 2015F

• Primarily AL
• 83% occupancy
• Aug. 2014

RIDEA 49 (24%) 2

• Primarily IL
• Increased occupancy 500 bps to 90%
• Sept. 2011

RIDEA 21 (21% of units) 1

Q3 2015

Chartwell (22%)

• Primarily IL and AL
• 89% occupancy

5

• IL, AL and MC
• 91% occupancy
• Mar. 2015

MBK JV (2%) 4

• Aug. 2014

CCRC JV (31%)

• Entrance fee CCRC campuses
• 85% occupancy

3

$240M

Annual Cash NOI(1)

(1) Based on annualized Q1 2015 Cash NOI, adjusted to reflect pro forma impact from significant transactions including the MBK joint venture and the pending Chartwell acquisition. See Appendix for details regarding these pro forma adjustments.

26

Senior Housing

26

30

YEARS

STRONG

HCP’ s successful senior housing development program

» 10 ground-up projects totaling $500M stabilized real estate value

3 Ground–up Development Projects 7 Participating Convertible Development Loans

• 3 projects totaling $110M of development cost
• Expect stabilized value of $200M
• $140M of debt investment program
• 8+% YTM, plus up to 30% participation in

developer’s profit

• HCP option to own real estate upon stabilization
• 2 loans harvested to date

Roseland, NJ Hyde Park in Tampa, FL

“Striking Early:” HCP’s development program provides attractive risk-adjusted returns

27

27

30

YEARS

STRONG

Video in Progress: Steve Cavanaugh, COO HCR ManorCare

POST-ACUTE & HOSPITALS DARREN KOWALSKE

Hospital 5% Post-acute/ Skilled 24%

HCP | ManorCare Health Services Operated by HCR ManorCare Voorhees, NJ

Post-Acute & Hospitals

29

30

YEARS

STRONG

post-acute & hospitals ORGANIZATION

Triple-net Investment Portfolio Enables Sector Professionals to Seamlessly Leverage HCP’s Infrastructure

Simona Wilson

Vice President Acquisitions

1

Acquisitions Professional

Lease Administration and Capital Asset Management

Scott Grossman

Director Asset Management

1

Asset Management Professional

Darren Kowalske

Post-Acute & Hospitals

30

30

YEARS

STRONG

• Increased care coordination and

integration between hospitals and post-acute providers

• Transitioning from traditional fee-

for-service towards managed care

• Focus on aligned incentives to

reward performance and value…

• …favoring high quality, low cost

healthcare providers

HCP

current INDUSTRY ENVIRONMENT

Hospitals

Admissions

Payors Post- Acute Operators The New Post-Acute Care World

Reimbursements Capital

Success Requires: Relationships + Market Share + Efficiency + Quality Outcomes

Post-Acute & Hospitals

31

30

YEARS

STRONG

73%

$530M

Portfolio Income(1)

17%

Hospital

83%

Post-acute

HCR ManorCare Tandem Debt Tenet HCA Hoag Other 5% 3% 5% 4% 5%

premier operator RELATIONSHIPS

» $5.9B post-acute/skilled and hospital portfolio,

with averag age an annual al lease ase e esc scal alat ators o s of f 2.7%

• 266 post-acute/skilled properties across 28 states
• 20 hospitals; >70% NOI from 5 acute-care hospitals

Other 5%

HCR’s Heartland of Dublin, OH Hoag Hospital - Irvine, CA

(1) Based on annualized Q1 2015 Portfolio Income, adjusted to reflect pro forma impact from the HCR lease amendment and sale of 44 HCR non-strategic assets. See Appendix for details regarding these pro forma adjustments.

Post-Acute & Hospitals

32

30

YEARS

STRONG

HCP’ s leading post-acute PARTNER

» National scalable platform in highly fragmented industry » Focus on higher acuity, shorter-term patients

Hospice/Ancillary:

• 3rd largest hospice provider;
• ver 100 markets

Memory Care/Assisted Living:

• 2nd largest stand-alone memory

care provider (Arden Courts)

3 Lines of Business

12% 70% 18%

$750M

EBITDARM(1) Post-Acute/Skilled:

• Top 5 states:

PA, OH, FL, IL, MI

(1) Reflects HCR ManorCare’s total operating and other income before corporate G&A expenses, based on its 2015 base case financial forecast.

Post-Acute & Hospitals

33

30

YEARS

STRONG

HCR differentiates ITSELF AS AN industry leader

Industry- Leading Attributes Intensive rehabilitation and clinical capabilities 67% Quality Mix; 51% Skilled Mix High acuity, low cost post-acute provider 18% Readmission Rate

(significantly better than industry average)

90% of admissions from 2,000+ hospitals; 250+ managed care contracts 20 years of expertise in dementia care

Clinical Expertise High Quality Revenues Efficient Operations Leading Outcomes Premier Relationships Leading Memory Care Provider

Post-Acute & Hospitals

34

30

YEARS

STRONG

Best-in-Class Provider of Choice Divesting Non- Strategic Assets Amended Master Lease

Improved financial flexibility Strengthen core post-acute strategy Growing market share in all lines of business

HCR IS positioned FOR growth

Post-Acute & Hospitals

35

30

YEARS

STRONG

1.07x 1.18x

significant improvement IN COVERAGE & LIQUIDITY PROFILE

0.84x 0.97x

(1) Facility-level coverage reflects an imputed 4% management fee. Fixed Change Coverage continues to reflect HCR’s corporate G&A expense of 3.6% of revenues as projected in their 2015 base case financial forecast. (2) Pro forma coverage reflects the combined impact from the lease amendment and sale of 50 non-strategic assets as if they had both occurred in January 2015, to illustrate the estimated full–year, run rate impact. See Appendix for more details regarding HCR ManorCare coverage metrics.

Retained Cash Flow provides financial flexibility to invest in capital projects that Drive Growth Facility-Level Coverage(1): Fixed Charge Coverage:

(2) (2)

Recent Operating Momentum Retained Cash Flow

Capital Investment and Clinical Capabilities Driving Growth

+ 7 bps + 7 bps +7 basis points coverage from using 4% imputed management fee (vs. 5%) + 7 bps

1.05x-1.07x

CY 2015F (before amendment) CY 2015F (current forecast) Pro Forma (full year run-rate) CY 2015F (before amendment) CY 2015F (current forecast) Pro Forma (full year run-rate)

1.28x-1.30x

Post-Acute & Hospitals

36

30

YEARS

STRONG

Growing Hospice & Home Health Development / Expansion / Acquisition Organic Operating Growth Relationship Philosophy

• Preferred provider
• 2,000+ hospitals; 250+

managed care contracts

• Strong Optum/UH results
• 10% YOY NOI growth FY’14
• Over 100 markets
• Expanding footprint
• 6 projects underway
• Strong development

pipeline

• Pursuing accretive

acquisitions

• Increased admissions &

market share

• +3% rates in Arden Courts
• 100th MedBridge Rehab

unit opening

HCR has a number of growth strategies

HCR is positioned to Grow Internally, Externally and through Relationships

37

30

YEARS

STRONG

Video in Progress: Dr Chai Patel, Chairman & CEO HC-One

INTERNATIONAL JOHN STASINOS

5% International

HCP | Greenfield Park Operated by HC-One Greenfield Park, UK

39

30

YEARS

STRONG

International

international ORGANIZATION

John Stasinos

London Andrea Auteri

Senior Vice President Acquisitions & Business Dev.

Los Angeles Taylor Sakamoto

Vice President Acquisitions

Acquisition & Asset Management Professionals

Lease Administration and Capital Asset Management

40

30

YEARS

STRONG

International

disciplined approach TO FOREIGN MARKETS

Duration:

• First 1-2 years
• Long-term

Objectives:

• Identify institutional partners &

premier operators

• Develop relationships with

advisors / brokers

• Understand regulatory and tax /

legal structures

• Build local platform
• Acquisitions, asset

management, engineering

• Develop strong market presence
• Become leader in the field

Investment Structure:

• Preference for debt investment

when possible

• Equity investment alongside

local institutional partners

• Equity
• Directly with premier
• perators
• Debt
• Where appropriate with

pathway to real estate

Initial Phase “Steady State” Phase

Opportunity to acquire a portfolio

• f size with premier operator(s)

could disrupt chronology and allow a “leap” to Steady State phase

41

30

YEARS

STRONG

International

CURRENT UK portfolio

HCP was the FIRST

healthcare REIT to expand into Europe in 2012

» Total invested to date of $1.1B

Sale-Leaseback Investments:

» $410M total invested to date » 59 UK based care homes

(36% of total invested capital)

» Long-term NNN leases at EBITDARM

coverages of 1.6x and cash yields of 7.3%

Debt Investments:

» $700M total invested to date » Weighted average return of 9.5% » Blended remaining term of 5 years

London Birmingham Manchester Glasgow Belfast Aberdeen HC-One Maria Mallaband Leeds Liverpool

42

30

YEARS

STRONG

International

deep partnerships WITH LEADING UK OPERATORS

» Leading national UK care home operator » 36 sale-leaseback properties and £330M term

loan secured by 250 freehold care homes

» Top 10 UK operator focused on the greater

Manchester & Leeds markets

» 23 sale-leaseback properties » Arranging development financing for new,

private pay focused care homes

» Largest elderly & specialist care provider in UK » Lead investor on £139M of senior unsecured

notes issued in conjunction with Terra Firma’s 2012 acquisition

43

30

YEARS

STRONG

International

FOCUS ON growth

Avenues for Growth Existing Relationships New Relationships Follow-On

Opportunities with existing operating partners

Development

Private pay focused care homes UK Continental Europe

44

30

YEARS

STRONG

Video in Progress: Maureen Tarrant, President & CEO HCA’s Presbyterian/St. Luke’s Medical Center

MEDICAL OFFICE TOM KLARITCH

Medical Office 13% Medical Office 14%

HCP | 833 Chestnut MOB Philadelphia, PA

Medical Office

46

30

YEARS

STRONG

medical office ORGANIZATION

Tom Klaritch

Jim Croy

Senior Vice President Leasing

Mike McIlwain

Senior Vice President Capital Asset Management

Tony Acevedo

Senior Vice President Asset Management

Glenn Preston

Senior Vice President Acquisitions

8

Leasing Professionals

14

Capital Asset Management Professionals

8

Asset Management Professionals

4

Acquisitions Professionals 3rd Party Leasing & Lease Administration 3rd Party Property Engineering 3rd Party Property Management

Property Managers:

Medical Office

47

30

YEARS

STRONG

MEDICAL OFFICE industry environment

Strong Demand + Limited New Supply + Fragmented Ownership = Growth Opportunity for HCP

• Transforming reimbursement
• ‘Doc Fix’ bill passed
• Expanding outpatient services (shift from hospital to MOBs)

Healthcare Reform

• Horizontal and vertical provider consolidation
• Physician practices being bought by health systems

Consolidation

• 31,000 MOBs totaling 1.3B square feet in U.S.

(only 9% owned by REITs)

• 25% of all MOBs are on-campus; 62% affiliated
• Limited new supply

Market Opportunity

Sources: Revista; Real Capital Analytics.

Medical Office

48

30

YEARS

STRONG

NH MA RI NM DE MD OK KS NE SD ND MT WY UT ID AZ NV WA OR KY ME NY PA MI VT VA WV IL NC SC AL MS AR LA MO IA MN WI NJ GA CT CA FL OH IN TN CO TX NY

» 283 properties across 32 states » $3.5B investments and $255M cash NOI

More than 1,000,000 SF 300,000 to 1,000,000 SF 100,000 to 300,000 SF Less than 100,000 SF Property Density Key

HCP’ s MEDICAL OFFICE portfolio(1)

Affiliated Unaffiliated

95%

Affiliated

On-Campus Off-Campus

80%

On-Campus

(1) Based on Investment Portfolio as of 3/31/15 and annualized Q1 2015 Cash NOI, adjusted to reflect pro forma impact from the acquisition of the Chestnut MOB, on the campus of Thomas Jefferson University Hospital. See Appendix for details regarding these pro forma adjustments.

MOB Portfolio Built Around Hospital Relationships

49

Medical Office

49

30

YEARS

STRONG

centennial medical CENTER CAMPUS

» Origin of HCA » Illustrates important characteristics of medical office real estate

Atrium Parkview Hospital

2222 State Building C Tace

Physician’s Park Hospital Women’s Hospital

Hos

• spit

ital MOB MOBs

2201 Medical Plaza

Medical Office

50

30

YEARS

STRONG

HCA 40% 10 Major Health Systems 30% Other 30%

PREMIER health system affiliations

19M

• Sq. Ft.(1)

Recent Expansions and New Investment Grade Relationships Hospital Relationships Drive Leasing, Acquisitions & Developments

» 200+ relationships with health systems

Major Health Systems

(1) Based on Medical Office portfolio square footage as of 3/31/15, adjusted to include the Chestnut MOB acquisition.

Medical Office

51

30

YEARS

STRONG

customer satisfaction EXCEEDS INDUSTRY AVERAGE

High Overall Satisfaction High Satisfaction with Management

4.14 4.16 4.19 3.95 4.09 4.15 2011 2012 2013 4.34 4.36 4.39 4.17 4.28 4.34 2011 2012 2013

Source: Kingsley Associates

HCP Kingsley Index

Strong Tenant Satisfaction High Retention Rate

Strong Retention Rate

50% 60% 70% 80% 2012 2013 2014

78% average retention

• ver past 3 years

Medical Office

52

30

YEARS

STRONG

80% on-campus with high retention rate and strong leasing volume has resulted in portfolio occupancy consistently above 90%

CONSISTENT DEMAND WITH steady internal growth

Briargate MOB Colorado Springs, CO Skyline Medical Plaza Nashville, TN Deaconess MOB Evansville, IN

Strong Leasing Volume Occupancy Consistently Above 90%

60% 70% 80% 90% 2012 2013 2014 2015 1Q

Average 2.3M sq. ft. annually

Capital Investments and On-Campus Assets Driving Growth

• 500

1,000 1,500 2,000 2,500 3,000 2012 2013 2014 Renewal New

Leased sq. ft. (000s)

53

Medical Office

53

30

YEARS

STRONG

ACQUISITIONS & DEVELOPMENTS: strong external growth

Sky Ridge III Lone Tree, CO 118K sq. ft. | $29M Delta Point Las Vegas, NV 76K sq. ft. | $29M Memorial Hermann Pearland, TX 98K sq. ft. | $19M Memorial Hermann Cypress, TX 165K sq. ft. | $36M Capitol Medical Center Sacramento, CA 92K sq. ft. | $59M

Recent Developments

Innovation San Diego, CA 84K sq. ft. | $38M Eye Institute of Texas Dallas, TX 88K sq. ft. | $32M HonorHealth (2012) Scottsdale, AZ 398K sq. ft. | $81M Mercy (2 MOBs) Miami, FL 148K sq. ft. | $26M Springs Portfolio (3 MOBs) Louisville, KY 328K sq. ft. | $51M 3535 Market Street Philadelphia, PA 436K sq. ft. | $139M

Recent Acquisitions

833 Chestnut Street Philadelphia, PA 705K sq. ft. | $161M

Executed >$500 Million of acquisitions & developments since 2014 at blended yield of 7.2%, accretively growing our MOB portfolio by 20%

Sustainability

54

30

YEARS

STRONG

Environmental, Social & Governance

Environmental

• Separation of Chairman and CEO
• 2 new independent directors in 2 years
• Ongoing stockholder outreach initiatives
• 23 electric vehicle charging stations
• 35% increase in total recycled waste
• 5,658 metric tonnes of CO2e saved
• Sponsorship of charitable contributions and events
• Tenant and business partner surveys

HCP’ s “3–PILLAR” sustainability strategy:

Social Governance

Sustainability

55

30

YEARS

STRONG

GRI Sustainability Report

• Published 1st Combined Annual + Sustainability Report
• 4th year to publish in accordance with the GRI G4 framework

CDP Survey

Named to Climate Disclosure Leadership Index for 2nd consecutive year

Global Real Estate Sustainability Benchmark Survey

Named Global Healthcare Sector Leader for 3rd consecutive year

Dow Jones Sustainability Index Assessment

Named to the DJSI North America Index for 2nd consecutive year

FTSE4Good Index Assessment

Named to the FTSE4Good Index for 3rd consecutive year

HCP’ s sustainability leadership & awards

56

56

30

YEARS

STRONG

Videos in Progress: Paul Hastings, Chairman & CEO OncoMed David Weitz, General Counsel Takeda

57

3

• YEARS

STRONG

LIFE SCIENCE JON BERGSCHNEIDER

Life Science 14%

HCP | The Cove at Oyster Point Development Rendering South San Francisco, CA

Life Science

58

30

YEARS

STRONG

life science ORGANIZATION

Property Managers:

Irvine

Ryan Anderson

Vice President Acquisitions/Leasing

Nashville

Drew Cressman

Vice President Asset Management

San Diego

Michael Dorris

Vice President Leasing/Development

South San Francisco

Scott Bohn

Vice President Leasing/Development

Jon Bergschneider

1

Leasing/Development Professional

Lease Administration and Capital Asset Management

Life Science

59

30

YEARS

STRONG

INTRO TO life science real estate

General Characteristics

• Re-useable improvements
• Lab benches, fume hoods

and related lab equipment

• Advanced infrastructure

User Groups

• Pharmaceutical
• Medical device
• Biotechnology
• Research

Typical Locations

• “Cluster” formations
• Concentrated around

research hubs

• Led by SF, Boston and SD

Life Science

60

30

YEARS

STRONG

HCP’ s LIFE SCIENCE portfolio

4.8M sq. ft.

Submarkets:

• South San Francisco
• Redwood City
• Mountain View
• Hayward

SAN FRANCISCO, CA

1.9M sq. ft.

Submarkets:

• Torrey Pines
• UTC
• Sorrento Mesa
• Poway

0.6M sq. ft.

Submarket:

• University of Utah

Research Park SAN DIEGO, CA SALT LAKE CITY, UT DURHAM, NC 0.1M sq. ft. 0.2M sq. ft. CAMBRIDGE, MA

» 115 properties in 4 states » 7.6 million sq. ft. » $3.7B operating portfolio

Largest life science owner on West Coast with 3.0M sq. ft. to develop

Life Science

61

30

YEARS

STRONG

PREMIER LIFE SCIENCE partners

Amgen 17% Genentech 17% Rigel 6% LinkedIn 5% Exelixis 5% Google 4% Myriad 3% Takeda 3% General Atomics 2% Other 38%

88% of NOI comes from public or well-established private companies Recent Expansions and New Investment Grade Relationships

$260M Cash NOI

Note: percentages are based on annualized revenues for the Life Science segment.

Life Science

62

30

YEARS

STRONG

LIFE SCIENCE industry strength

• 13% increase to $157B led by:
• Partnerships
• IPOs
• Venture Capital

Improved Capital Markets & Financing

• Big Pharma/Biotech building

R&D via external sources

• Strengthens tenants’ credit

and pipeline

Consolidation & Collaboration

• 61% of drugs approved in

2014 were designated Priority Review, reducing approval time from 10 mos. to 6 mos.

Streamlined FDA Approval Process Increased access to capital has led to growth opportunities for HCP and our tenants

41 drug approvals in 2014 (compared to an average of 25 per year since 2005)

+13%

Amgen / Onyx Bristol Myers Squibb / Flexus J&J / Alios $130 $140 $150 $160

2013 2014 Global LS Financing $ Billions

Sources: Burrill & Company, Food and Drug Administration.

Life Science

63

30

YEARS

STRONG 90% 91% 92% 93% 94% 95% 96% 97% 2012 2013 2014 2015 1Q

STRONG DEMAND creating internal growth

Strong Leasing Volume All-Time High Occupancy 96.5%

Average 1M sq. ft. annually

+500 bps

• ver past

4 quarters

Oyster Point II, Bldg C

• S. San Francisco, CA

100 Cardinal Way Redwood City, CA 9380 Judicial Drive San Diego, CA

Portfolio occupancy reached an all-time high of 96.5%, led by strong demand in South San Francisco

• 200

400 600 800 1,000 1,200 2012 2013 2014 Leased sq. ft. (000s)

Capital Investments and Strategic Submarkets Driving Growth

Life Science

64

30

YEARS

STRONG

MARKET IN FOCUS: south san francisco

Source: CBRE, Inc.

0.3% Direct Vacancy 8.2M Sq. Ft. Lab Market 8.2M Sq. Ft. Lab Market

HCP owns nearly 1/3

• f market

HCP Existing Properties

HCP Developments The Cove

Life Science

65

30

YEARS

STRONG

external growth THROUGH DEVELOPMENT

» Premier development site at the gateway to South San Francisco

» Total project will include 884,000 sq. ft.

in seven buildings

» Phase I development commenced in

February 2015: 253,000 sq. ft. in two buildings (anticipated delivery 3Q 2016)

» Fully-integrated campus with rich

amenity profile, including food service, fitness, meeting space, hotel & retail » LEED Silver design

The Cove AT OYSTER POINT

66

30

YEARS

STRONG

Video in Progress: Phil Burgan, Chairman & CEO Maria Mallaband Care Group

FINANCIAL RESULTS & BALANCE SHEET TIM SCHOEN

HCP | Britannia Oyster Point II South San Francisco, CA

Financial Results & Balance Sheet

68

30

YEARS

STRONG

CFO organization

Pat Stangle Risk Management John Lu FP&A and IR 6

FP&A and IR Professionals

Tim Hall Tax 9

Tax Professionals

Matt Brill Treasurer 7

Treasury Professionals

Jeannine Bonesteele Operational Accounting 24

Operational Accounting Professionals

4

IT Professionals

Keith Bereskin Information Technology 20

Accounting Professionals

Scott Anderson Chief Accounting Officer 3

Internal Audit Professionals

Jeannine Baker Internal Audit

Tim Schoen

Financial Results & Balance Sheet

69

30

YEARS

STRONG

COMMITED TO A strong balance sheet

(1) As of 3/31/15. Pro forma for recently announced acquisitions and developments (e.g., Chartwell portfolio and Chestnut MOB), based on an assumed 60% equity and 40% debt financing mix, and the sale of 50 HCR non-strategic assets.

» 60% equity / 40% debt

capital structure

» Strong liquidity and proven

market access

» Sector-leading investment

grade credit ratings

• Baa1 (Stable) - Moody’s
• BBB+ (Stable) - S&P
• BBB+ (Stable) - Fitch

57% 38% 5%

Equity (BV) Unsecured Debt Secured Debt

$25B

Gross Assets CAPITALIZATION(1) 43%

Financial Results & Balance Sheet

70

30

YEARS

STRONG

STRONG SAME-STORE GROWTH from diversified portfolio

2012 2013 2011 2010 2014

S A M E A M E - S T O R E G R G R O W T H T H B Y S E S E G M G M E N T N T

HCP’S O S OVE VERAL ALL C CASH SH SAM AME-STOR ORE NOI NOI G GROWTH

4.2% 3.1% 4.0% 4.8% 3.3% 2015F(1) 0.25%

Post-acute/Skilled 3.7% Hospital 9.9% Senior Housing 6.6% Life Science 7.0% Hospital 3.7% Senior Housing 8.6% Hospital 4.6% Senior Housing 5.1% Medical Office 2.7% Medical Office 2.8% Hospital 3.6% Post-acute/Skilled 3.5% Post-acute/Skilled 2.6% Senior Housing 3.5% Medical Office 2.3% Life Science 0.5% Life Science 1.1% Medical Office 2.7% Life Science (1.6%) Post-acute/Skilled 1.4% Hospital 3.1% Senior Housing 3.6% Post-acute/Skilled 3.5% Medical Office 2.0% Life Science 3.4% Hospital 1.0% Senior Housing 4.0% Post-acute/Skilled (7.2%) Medical Office 2.0% Life Science 5.0%

(1) 2015 projections based on the mid-point of the Company’s guidance discussed on its earnings call on 5/5/15.

Financial Results & Balance Sheet

71

30

YEARS

STRONG

3.5% 4.1% 6.7% 8.1% 5.6% 8.8% 4.1% 2.9% 4.2% 4.2% 47.8% $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Thereafter

LONG-TERM NNN LEASES WITH

($M)

Only 5% of leases on average expire annually through 2024

limited near-term expirations(1)

(1) As of 3/31/15. Pro forma to reflect HCR lease amendment and sale of 50 non-strategic assets, Chestnut MOB acquisition and HC-One sale- leaseback conversion. Amounts exclude $124 million of annualized NOI related to 70 facilities in a RIDEA structure managed by Brookdale.

Financial Results & Balance Sheet

72

30

YEARS

STRONG

14.6% 14.4% 10.2% 7.8% 8.3% 12.1% 3.2% 8.1% 11.5% 6.0% 3.7% $0 $400 $800 $1,200 $1,600 $2,000 $2,400 $2,800 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Thereafter Senior Unsecured Notes Secured Debt Revolver GBP Term Loans

BALANCED AND MANAGEABLE debt maturity profile(1)

» 4.7% weighted average interest rate » 5.6 years weighted average maturity

(match-fund U.K. debt investments)

Addressed All of 2015 Maturities

($M)

(1) As of 3/31/15, pro forma to exclude remaining 2015 scheduled maturities as they were prefunded with $600 million senior notes issuance in January 2015. Also excludes $270 million of non-interest bearing entrance fee deposits and demand notes that have no scheduled maturities.

Financial Results & Balance Sheet

73

30

YEARS

STRONG

5.6% 5.9% 6.6% 4.1% 4.3% 4.4% 0.0% 2.0% 4.0% 6.0% 8.0% 2016 2017 2018

Maturing Debt Rates Estimated 10-Year HCP Unsecured Bond Rates

REFINANCING TAILWINDS expected to continue

Maturing Debt(1) Cumulative Interest Savings

1.5% 1.6% 2.2%

$1.3B $1.4B $0.7B $18M $42M $57M

Potential annual interest savings of $57 million in 2018

(1) As of 3/31/15. Excludes revolver and GBP term loan.

Financial Results & Balance Sheet

74

30

YEARS

STRONG

83% IN 2010

Improved Payout Ratio(2)

97% IN 2010

84% 4%

IN 2015

72% 2%

IN 2015

FA FAD FFO FFO a as adjuste usted

HCP HAS grown significantly AND profitably SINCE 2010

$1.92 $2.16 $2.23 $2.54 $2.57 $2.69

2010 2011 2012 2013 2014 2015F

FAD

FAD/share Dividend/share

$1.86 $1.92 $2.00 $2.10 $2.18 $2.26

• ne-time items

$200M $20M

FAD in excess of dividends 3.3% average Cash Same-Store growth(1) 70% expansion of investment portfolio

Balance sheet upgrade Baa3 BBB Baa1 BBB+

7.0% FAD/Share CAGR

(1) Represents HCP’s average Cash Same-Store NOI growth from 2010-2015F. (2) 2015 FFO as adjusted, FAD and payout ratio projections are based on the mid-point of the Company’s guidance discussed on its earnings call

• n 5/5/15. Estimated full year 2015 dividend based on current quarterly dividend of $0.565 per share.

Financial Results & Balance Sheet

75

30

YEARS

STRONG

HCR ManorCare Master Lease 30%

Higher Lower Growth Potential Smaller Larger Size

Fixed-rate leverage expected to increase FAD per share growth to 4.5% to 5.0%

Life Science RIDEA

Continued organic Cash NOI growth from diversified portfolio that has averaged 3.3%(1) Additional upside opportunities:

• Refinancing tailwinds
• Accretive acquisitions

RIDEA Life Science MOB International Triple-net Leases

Triple-net leases and debt investments Operating business

HCP’S attractive growth outlook

(1) Represents HCP’s average Cash Same-Store NOI growth from 2010-2015F.

Financial Results & Balance Sheet

76

30

YEARS

STRONG

(1) Estimated full year 2015 dividend based on current quarterly dividend of $0.565 per share. (2) 2015 projected payout ratio based on the Company’s mid-point of FFO as adjusted per share guidance discussed on its earnings call on 5/5/15.

72%

65% 70% 75% 80% 85% 90% 95% 100% 105%

Annual Dividend 1985 – 2015(1)

Dividend per share FFO as adjusted payout ratio

$2.26(1)

• Dividend Aristocrats are S&P 500 companies that have increased

dividends every year for at least 25 consecutive years

• Only 10% of the S&P 500 companies are in this index

hcp is the only REIT in the

S&P 500 Dividend Aristocrats Index

77

3

• YEARS

STRONG

CONCLUDING REMARKS LAURALEE MARTIN

HCP | Cypress Village CCRC Operated by Brookdale Jacksonville, FL

Concluding Remarks

78

30

YEARS

STRONG

WHAT MAKES HCP compelling

WE ARE: WE HAVE: WE GROW: the value of our cash flows from our portfolio, via

long-term ownership in healthcare real estate that

is strategic to our operating partners

• A Disciplined and creative capital allocator
• A Strong capital partner with BBB+ balance

sheet and excellent liquidity

• An S&P 500 Dividend Aristocrat
• A Global Sustainability leader
• 300+ healthcare relationships
• Multiple avenues to achieve growth
• Deep industry expertise across healthcare

sectors

• A uniquely diversified portfolio: robust Life

Science and sector–leading CCRC Platforms

79

30

YEARS

STRONG

Video in Progress: The Cove

80

30

YEARS

STRONG

Q&A Session

81

30

YEARS

STRONG

This presentation is being presented solely for your information, is subject to change and speaks only as of the date hereof. This presentation and comments made by management do not constitute an offer to sell or the solicitation of an offer to buy any securities of HCP or any investment interest in any business ventures of HCP. This presentation is not complete and is only a summary of the more detailed information included elsewhere, including in HCP’s Securities and Exchange Commission

• filings. No representation or warranty, expressed or implied is made and no reliance should be placed on the accuracy, fairness or completeness of the information
• presented. HCP, its affiliates, advisers and representatives accept no liability whatsoever for any losses arising from any information contained in this presentation.

FORWARD-LOOKING STATEMENTS The statements in this presentation, as well as statements made by management, which are not historical facts, are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and HCP intends such “forward-looking statements” to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements include, among other things, statements regarding FFO, FAD, income and other financial projections and assumptions; estimated bond rates; future business strategies; and the ability to accelerate dividend growth. These statements are made as of the date hereof, are not guarantees of future performance and are subject to known and unknown risks, uncertainties, assumptions and other factors — many of which are out of HCP’s control and difficult to forecast — that could cause actual results to differ materially from those set forth in or implied by such forward-looking statements. These risks and uncertainties include but are not limited to: HCP’s ability to fully evaluate HCR’s ability to meet its contractual obligations under the master lease amendment and risks related to the impact of the Department of Justice lawsuit against HCR, including the possibility of larger than expected litigation costs, adverse results and related developments; HCP’s reliance on a concentration of a small number of tenants and operators for a significant portion of its revenues; the financial weakness of tenants and operators, including potential bankruptcies, significant litigation exposure and downturns in their businesses; the ability of HCP’s tenants and operators to conduct their respective businesses in a manner sufficient to maintain or increase their revenues and to generate sufficient income to make rent and loan payments to HCP; competition for tenants and operators; availability of suitable properties to acquire at favorable prices and the competition for the acquisition and financing of those properties; HCP’s ability to negotiate the same or better terms with new tenants or operators if existing leases are not renewed or HCP exercises its right to replace an existing tenant or operator upon default; the risks associated with HCP’s investments in joint ventures and unconsolidated entities; the risk that HCP may not be able to achieve the benefits of investments within expected time frames or at all, or within expected cost projections; the potential impact of future litigation matters; the effect on healthcare providers of legislation addressing entitlement programs and related services, including Medicare and Medicaid, which may result in future reductions in reimbursements; changes in federal, state or local laws and regulations; volatility or uncertainty in the capital markets; changes in global, national and local economic conditions; changes in the credit ratings on United States (“U.S.”) government debt securities or default or delay in payment by the U.S. of its obligations; HCP’s ability to manage its indebtedness level and changes in the terms of such indebtedness; HCP’s ability to maintain its qualification as a real estate investment trust; and other risks described from time to time in HCP’s Securities and Exchange Commission filings, including its 2014 Annual Report on Form 10-K and the Form 10-Q for the quarter ended March 31, 2015. HCP assumes no, and hereby disclaims any, obligation to update any of the foregoing or any other forward-looking statements as a result of new information or new or future developments, except as otherwise required by law. MARKET DATA This presentation also includes market and industry data that HCP has obtained from market research, publicly available information and industry publications. The accuracy and completeness of such information are not guaranteed. The market and industry data is often based on industry surveys and preparers’ experience in the

• industry. Similarly, although HCP believes that the surveys and market research that others have performed are reliable, HCP has not independently verified this

information. NON-GAAP FINANCIAL MEASURES This presentation contains certain supplemental non-GAAP financial measures. While HCP believes that non-GAAP financial measures are helpful in evaluating its

• perating performance, the use of non-GAAP financial measures in this presentation should not be considered in isolation from, or as an alternative for, a measure of

financial or operating performance as defined by GAAP. You are cautioned that there are inherent limitations associated with the use of each of these supplemental non-GAAP financial measures as an analytical tool. Additionally, HCP’s computation of non-GAAP financial measures may not be comparable to those reported by

• ther REITs. Reconciliations of the non‐GAAP financial measures to the most directly comparable GAAP financial measures can be found in HCP’s supplemental

information packages and earnings releases, which are available on its website at www.hcpi.com in the “Presentations” section of the “Investor Relations” tab.

App ppendix dix

Defin init itio ions

Debt Maturity Profile Represents debt maturities as of March 31, 2015, pro forma to exclude $260 million of 2015 remaining debt maturities, which were prefunded by the $600 million senior unsecured notes offering in January 2015. (Slide 72 – Financial Results & Balance Sheet) Funds Available for Distribution (“FAD”) Our FAD is defined as FFO as adjusted (as defined below) after excluding the impact of the following: (i) amortization of acquired market lease intangibles, net; (ii) amortization of deferred compensation expense; (iii) amortization of deferred financing costs, net; (iv) straight-line rents; (v) accretion and depreciation related to DFLs and lease incentive amortization (reduction of straight-line rents); and (vi) deferred revenues, excluding amounts amortized into rental income that are associated with tenant funded improvements owned/recognized by us and up-front cash payments made by tenants to reduce their contractual rents. Also, FAD is: (i) computed after deducting recurring capital expenditures, including leasing costs and second generation tenant and capital improvements; and (ii) includes lease restructure payments and adjustments to compute our share of FAD from our unconsolidated joint ventures and those related to CCRC non-refundable entrance fees. Other real estate investment trusts (“REITs”) or real estate companies may use different methodologies for calculating FAD, and accordingly, our FAD may not be comparable to those reported by other REITs. Although our FAD computation may not be comparable to that of other REITs, management believes FAD provides a meaningful supplemental measure of our performance and is frequently used by analysts, investors, and other interested parties in the evaluation of our performance as a REIT. FAD does not represent cash generated from operating activities determined in accordance with U.S. generally accepted accounting principles or “GAAP”, is not necessarily indicative of cash available to fund cash needs, and should not be considered as an alternative to net (loss) income determined in accordance with GAAP. (Slides 74 & 75 – Financial Results & Balance Sheet) Funds From Operations (“FFO”) We believe Funds From Operations (“FFO”) is an important supplemental measure of operating performance for a REIT. Because the historical cost accounting convention used for real estate assets utilizes straight-line depreciation (except on land), such accounting presentation implies that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen and fallen with market conditions, presentations of

• perating results for a REIT that use historical cost accounting for depreciation could be less informative. The term FFO was developed by the REIT industry to

address this issue. FFO as defined by the National Association of Real Estate Investment Trusts (“NAREIT”) is net (loss) income applicable to common shares (computed in accordance with GAAP), excluding gains or losses from sales of property, impairments of, or related to, depreciable real estate, plus real estate, direct financing lease (“DFL”) and other depreciation and amortization, and after adjustments for joint ventures. Adjustments for joint ventures are calculated to reflect FFO

• n the same basis. FFO does not represent cash generated from operating activities determined in accordance with GAAP, is not necessarily indicative of cash

available to fund cash needs and should not be considered an alternative to net (loss) income. We compute FFO in accordance with the current NAREIT definition; however, other REITs may report FFO differently or have a different interpretation of the current NAREIT definition from ours. FFO as adjusted represents FFO before the impact of severance related charges, litigation settlement charges, preferred stock redemption charges, impairments (recoveries) of non-depreciable assets and transaction-related items (defined below). Transaction-related items include acquisition and pursuit costs (e.g., due diligence and closing) and gains/charges incurred as a result of mergers and acquisitions and lease amendment or termination activities. Management believes that FFO as adjusted provides a meaningful supplemental measurement of our FFO run-rate. This measure is a modification of the NAREIT definition of FFO and should not be used as an alternative to net (loss) income (determined in accordance with GAAP) or NAREIT FFO. (Slides 74 & 76 – Financial Results & Balance Sheet) Gross Assets Represents the carrying amount of total assets, excluding investments in and advances to unconsolidated joint ventures, after adding back accumulated depreciation and amortization, as reported in the consolidated financial statements plus our pro rata share of total assets from our unconsolidated joint ventures, after adding back accumulated depreciation and amortization as of March 31, 2015. HCR ManorCare Inc.’s (“HCR”) Coverages CY 2015F (before amendment): Represents previous Master Lease terms before the March 29, 2015 lease amendment (“HCR Master Lease Amendment”). Projected 2015 coverage data based on HCR’s 2015 base case financial forecast, inclusive of 3.5% rent increase previously scheduled to take effect in April 2015, resulting in $541 million of annual rent beginning April 2015 prior to the HCR Master Lease Amendment. (Slide 35 – Post Acute & Hospitals) CY 2015F (current forecast): Represents HCR’s 2015 base case financial forecast and the HCR Master Lease Amendment terms effective April 1, 2015, as described in HCP’s March 30, 2015 press release. (Slide 35 – Post Acute & Hospitals) Pro Forma (full year run-rate): Represents HCR’s 2015 base case financial forecast, pro forma for the HCR Master Lease Amendment and sale of non-strategic assets as if they had both occurred on January 1, 2015 to illustrate the estimated full year run-rate impact. Assumes proceeds to HCP from the sale of between $250 and $350 million, resulting in annual rent reduction to the Master Lease of between $19 and $27 million, based on previously announced 7.75% yield on sale

• proceeds. (Slide 35 – Post Acute & Hospitals)

Investment Portfolio Represents the real estate investments owned by HCP, the carrying amount of debt investments and our pro rata share of the real estate investments held in our unconsolidated joint ventures excluding assets under development and land held for development as of March 31, 2015. Net Operating Income from Continuing Operations (“NOI”) We believe Net Operating Income from Continuing Operations (“NOI”) provides investors relevant and useful information because it reflects only income and operating expense items that are incurred at the property level and presents them on an unleveraged basis. We use NOI and Cash NOI to make decisions about resource allocations, to assess and compare property level performance, and evaluate our same property portfolio (“SPP”). We believe that net (loss) income is the most directly comparable GAAP measure to NOI. NOI should not be viewed as an alternative measure of

• perating performance to net (loss) income (determined in accordance with GAAP) since it excludes certain components from net (loss) income. Further, our NOI

may not be comparable to that of other REITs or real estate companies, as they may use different methodologies for calculating NOI. NOI is defined as rental and related revenues, including tenant recoveries, resident fees and services, and income from DFLs, less property level operating expenses; NOI excludes all of the other financial statement amounts included in net (loss) income. Cash NOI is calculated as NOI after eliminating the effects of straight-line rents, DFL accretion, amortization of market lease intangibles and lease termination fees. Portfolio Income Represents Cash NOI from real estate owned by HCP, interest income from debt investments and our pro rata share of Cash NOI (plus cash non- refundable entrance fees in the case of our CCRC JV) from real estate owned in our unconsolidated joint ventures for the three months ended March 31, 2015.

1

Defin init itio ions

Pro Forma Gross Assets Represents Gross Assets as of March 31, 2015, pro forma for significant transactions that were announced during the quarter but have not yet closed and transactions that were announced or closed after March 31, 2015. Pro forma adjustments include the following: (i) ($300) million for the projected sales of 50 HCR non-strategic assets, (ii) pending $849 million acquisition of assets from the Chartwell portfolio, (iii) $260 million development funding and (iv) $161 million acquisition of a medical office building in Philadelphia, PA. (Slide 69 – Financial Results & Balance Sheet) Pro Forma Investment Portfolio Represents Investment Portfolio as of March 31, 2015, pro forma for significant transactions that were announced during the quarter but have not yet closed and transactions that were announced or closed after March 31, 2015. Pro forma adjustments include the following in each respective investment type: (i) ($300) million for the projected sales of 50 HCR non-strategic assets (triple-net leased), (ii) pending $849 million acquisition of assets from the Chartwell portfolio (RIDEA), (iii) $771 million committed and future developments (development), (iv) $161 million acquisition of a medical office building in Philadelphia, PA (office platform) and (v) net $260 million conversion of our £174 million HC-One debt investments to fee ownership in care homes (debt investment to triple-net leased). (Slides 3 & 12 – Strategy & Industry Overview; Slide 23 – Senior Housing; Slide 31 – Post Acute & Hospitals and Slide 48 – Medical Office) Pro Forma Portfolio Income Represents Portfolio Income for the three months ended March 31, 2015, presented on an annualized run-rate basis, pro forma for significant transactions that were announced during the quarter but have not yet closed and transactions that were announced or closed after March 31, 2015. Pro forma adjustments include the following in each respective segment/sector: (i) ($12.5) million from the HCR Master Lease Amendment and ($5.8) million from sales

• f 50 HCR non-strategic assets (senior housing and post-acute/skilled), (ii) $14.0 million from the pending acquisition of the Chartwell portfolio (senior housing), (iii)

$1.1 million from 50% investment in unconsolidated joint venture with MBK (senior housing), (iv) $2.7 million from acquisition of a medical office building in Philadelphia, PA (medical office), (v) net $0.8 million from conversion of the HC-One debt investments to fee ownership in care homes (international sector) and (vi) ($4.3) million from one-time interest income (senior housing). (Slide 12 – Strategy & Industry Overview; Slides 23 - 25– Senior Housing; Slide 31 – Post-Acute & Hospitals; Slide 48 – Medical Office and Slide 61 – Life Science) Same Property Portfolio (“SPP”) SPP statistics allow management to evaluate the performance of our real estate portfolio under a consistent population, which eliminates the changes in the composition of our portfolio of properties. We identify our SPP as stabilized properties that remained in operations and were consistently reported as leased properties or operating properties (RIDEA) for the duration of the year-over-year comparison periods presented. Accordingly, it takes a stabilized property a minimum of 12 months in operations under a consistent reporting structure to be included in our SPP. SPP NOI excludes certain non-property specific operating expenses that are allocated to each operating segment on a consolidated basis. A property is removed from our SPP when it is sold, placed into redevelopment or contributed to partnerships under a RIDEA structure. (Slide 70 – Financial Results & Balance Sheet)

2

Non

• n-GAAP

AP Reconcilia iliatio ions

Certain non-GAAP financial measures are included throughout this presentation. We have provided reconciliations of these measures to the most directly comparable GAAP measures as well as certain related disclosures herein in this Appendix, our Annual Reports on Form 10-K filed with the U.S. Securities and Exchange Commission, and Earnings Releases and Annual Reports, which are available on our website at www.hcpi.com in the “Presentations” section of the “Investor Relations” tab and “Financial Information” section of the “Investor Relations” tab, respectively. The reconciliations incorporated by reference are as follows:

• Annual Report on Form 10-K for the year ended December 31, 2014:
• - FFO as adjusted and FAD for the years ended December 31, 2014, 2013, 2012, 2011 and 2010 (Part II, ITEM 7. Management’s Discussion

and Analysis of Financial Condition and Results of Operations – Non-GAAP Financial Measures); (FAD: Slide 74 – Financial Results & Balance Sheet and FFO as adjusted: Slide 76 – Financial Results & Balance Sheet)

• - NOI and SPP by segment for the years ended December 31, 2014 and 2013 (Part II, ITEM 7. Management’s Discussion and Analysis of

Financial Condition and Results of Operations – Results of Operations); (Slide 70 – Financial Results & Balance Sheet)

• Annual Report on Form 10-K for the year ended December 31, 2012:

NOI and SPP by segment for the years ended December 31, 2012 and 2011 (Part II, ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations); (Slide 70 – Financial Results & Balance Sheet)

• 2010 Annual Report:

FFO as adjusted for the years ended December 31, 2009, 2008, 2007, 2006, 2005, 2004 and 2003 (Reconciliations of Non-GAAP Measures); (Slide 76 – Financial Results & Balance Sheet)

• Earnings Release for the three months ended March 31, 2015:

Projected FFO as adjusted per share and Projected FAD per share for the full year 2015 (Projected Future Operations section); (Slide 74 – Financial Results & Balance Sheet)

• Earnings Releases for the years ended December 31, 2010 to 2014:

NOI and SPP for the years ended December 31, 2010 to 2014 (Net Operating Income and Same Property Performance section); (Slide 70 – Financial Results & Balance Sheet) No reconciliation of projected segment SPP Cash NOI growth (Slide 70 – Financial Results & Balance Sheet) or FAD per share growth as a result of fixed-rate leverage (Slide 75 – Financial Results & Balance Sheet) are included in this Appendix because we are unable to quantify certain amounts that would be required to be included in the comparable GAAP financial measure without unreasonable efforts and we believe such reconciliations would imply a degree of precision that would be confusing or misleading to investors.

3

Non

• n-GAAP

AP Reconcilia iliatio ions

In thousands

The following table represents Portfolio Income by sector: Three Months Ended March 31, 2015 Sector Cash NOI Unconsol. JV Cash NOI(1) Interest Income Portfolio Income Pro Forma Adjustments(2) Pro Forma Portfolio Income Annualized Pro Forma Portfolio Income(3) Senior housing(4) (5) $ 147,955 $ 14,278 $ 7,394 $ 169,627 $ 11,200 $ 180,827 $ 723,308 Post-acute/skilled(4) (6) 121,960 — 6,680 128,640 (18,700 ) 109,940 439,760 Medical office 58,187 2,680 — 60,867 2,700 63,567 254,268 Life science(7) 63,777 1,252 — 65,029 — 65,029 260,116 Hospitals(6) 21,457 220 — 21,677 — 21,677 86,708 International(4) 2,517 — 19,188 21,705 800 22,505 90,020 $ 415,853 $ 18,430 $ 33,262 $ 467,545 $ (4,000 ) $ 463,545 $ 1,854,180 The following table reconciles net loss to Cash NOI: Three Months Ended March 31, 2015 Net loss $ (237,503 ) Interest income (33,262 ) Investment management fee income (460 ) Interest expense 116,780 Depreciation and amortization 114,522 General and administrative 24,773 Acquisition and pursuit costs 3,390 Impairments 478,464 Gain on sales of real estate, net of income taxes (6,264 ) Other income, net (1,724 ) Income taxes benefit (77 ) Equity income from unconsolidated joint ventures (13,601 ) NOI $ 445,038 Straight-line rents (9,546 ) DFL accretion (20,304 ) Amortization of market lease intangibles, net (378 ) Lease termination fees 1,043 Cash NOI $ 415,853 The following table reconciles unconsolidated joint venture net (loss) income to HCP’s share of Cash NOI by sector(8): Three Months Ended March 31, 2015 CCRC Senior Housing Medical Office(8) Life Science Net (loss) income $ (3,019 ) $ 888 $ (3,436 ) $ 1,756 Depreciation and amortization 18,606 698 7,564 382 General and administrative — 20 838 7 Interest expense and other 899 346 7,205 — NOI $ 16,486 $ 1,952 $ 12,171 $ 2,145 Non-cash adjustment to NOI 10,692 — (484 ) (120 ) Cash NOI $ 27,178 $ 1,952 $ 11,687 $ 2,025 HCP’s pro rata share of Cash NOI $ 13,317 $ 961 $ 2,900 $ 1,252

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Non

• n-GAAP

AP Reconcilia iliatio ions

Dollars in thousands

The following table reconciles net income to Projected SPP Cash NOI (Projected SPP Cash NOI growth)(9): Projected Full Year 2015 Year Ended December 31, 2014 Net income $ 436,000 $ 936,591 Other income and expenses(10) (183,000 ) (136,436 ) Costs and expenses(11) 1,079,536 999,054 Impairments 478,464 — Impairment of investment in unconsolidated joint venture — 35,913 Total discontinued operations — (29,746 ) NOI $ 1,811,000 $ 1,805,376 Non-cash adjustments to NOI (115,000 ) (158,376 ) Cash NOI $ 1,696,000 $ 1,647,000 Projected Non-SPP Cash NOI (172,200 ) (127,000 ) Projected SPP Cash NOI $ 1,523,800 $ 1,520,000 Projected SPP Cash NOI growth(12) 0.25%

been reclassified from post-acute/skilled nursing to international.

column).

• ccupancy levels, development items and the earnings impact of the events referenced in this release. Except as otherwise noted, these estimates do not reflect the

potential impact of future acquisitions, dispositions, other impairments or recoveries, the future bankruptcy or insolvency of our operators, lessees, borrowers or other

• bligors, the effect of any future restructuring of our contractual relationships with such entities, gains or losses on marketable securities, ineffectiveness related to our

cash flow hedges, or existing and future litigation matters including the possibility of larger than expected litigation costs and related developments. There can be no assurance that our actual results will not differ materially from the estimates set forth above. The aforementioned ranges represent management’s best estimates based upon the underlying assumptions as of the date of this presentation. Except as otherwise required by law, management assumes no, and hereby disclaims any,

• bligation to update any of the foregoing projections as a result of new information or new or future developments.

taxes and equity income from unconsolidated joint ventures.

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