Investments in and Advances to Unconsolidated Joint Ventures (Tables)

9 Months Ended

Sep. 30, 2014

Investments in and Advances to Unconsolidated Joint Ventures

Company owned interests in entities, accounted under equity method


Entity(1)	Segment	Investment(2)		Ownership%
CCRC JV(3)	senior housing	$	459,916		49
HCR ManorCare	post-acute/skilled nursing		76,876		9.4
HCP Ventures III, LLC	medical office		6,868		30
HCP Ventures IV, LLC	medical office and hospital		27,560		20
HCP Life Science(4)	life science		70,771	50	–	63
Suburban Properties, LLC	medical office		5,716		67
Advances to unconsolidated joint ventures, net			216
		$	647,923

Edgewood Assisted Living Center, LLC	senior housing	$	(440)
Seminole Shores Living Center, LLC	senior housing		(645)
		$	(1,085)

(1) These entities are not consolidated because the Company does not control, through voting rights or other means, the joint ventures.

(2) Represents the carrying value of the Company’s investment in the unconsolidated joint ventures. Negative balances are recorded in accounts payable and accrued liabilities on the Company’s Condensed Consolidated Balance Sheets.

(3) Includes two unconsolidated joint ventures between the Company and Brookdale: (i) CCRC PropCo ($210 million) and (ii) CCRC OpCo ($250 million). See additional information regarding the Brookdale Transaction in Note 3.

(4) Includes three unconsolidated joint ventures between the Company and an institutional capital partner for which the Company is the managing member. HCP Life Science includes the following partnerships (and the Company’s ownership percentage): (i) Torrey Pines Science Center, LP (50%); (ii) Britannia Biotech Gateway, LP (55%); and (iii) LASDK, LP (63%).

Summarized combined financial information for unconsolidated joint ventures


	September 30,		December 31,
	2014(1)		2013
Real estate, net	$	5,159,092	$	3,662,450
Goodwill and other assets, net		5,482,542		5,384,553
Total assets	$	10,641,634	$	9,047,003

Capital lease obligations and debt	$	7,221,580	$	6,768,815
Accounts payable		1,103,072		1,045,260
Other partners’ capital		1,648,992		1,098,228
HCP’s capital(2)		667,990		134,700
Total liabilities and partners’ capital	$	10,641,634	$	9,047,003

(1) Includes the financial information of the CCRC JV, which the Company formed on August 29, 2014.

(2) The combined basis difference of the Company’s investments in these joint ventures of $21 million, as of September 30, 2014, is primarily attributable to goodwill, real estate, capital lease obligations, deferred tax assets and lease-related net intangibles.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2014(1)		2013		2014(1)		2013
Total revenues	$	1,087,010	$	1,046,789	$	3,224,839	$	3,182,052
Income (loss) from discontinued operations		3,600		(2,600)		(2,000)		(8,300)
Net income (loss)		(702)		2,538		(4,826)		23,032
HCP’s share of earnings(2)		10,168		13,892		39,388		44,278
Fees earned by HCP		447		464		1,340		1,406
Distributions received by HCP		2,113		1,390		5,881		3,918

(1) Includes the financial information of the CCRC JV, which the Company formed on August 29, 2014.

(2) The Company’s joint venture interest in HCR ManorCare is accounted for using the equity method and results in an ongoing elimination of DFL income proportional to HCP’s ownership in HCR ManorCare. The elimination of the respective proportional lease expense at the HCR ManorCare level in substance results in $16 million and $15 million of DFL income that is recharacterized to the Company’s share of earnings from HCR ManorCare (equity income from unconsolidated joint ventures) for the three months ended September 30, 2014 and 2013, respectively. For both the nine months ended September 30, 2014 and 2013, $47 million of DFL income was recharacterized to the Company’s share of earnings from HCR ManorCare.