<SEC-DOCUMENT>0001104659-15-023540.txt : 20150504
<SEC-HEADER>0001104659-15-023540.hdr.sgml : 20150504
<ACCEPTANCE-DATETIME>20150327192423
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001104659-15-023540
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20150327

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			HCP, INC.
		CENTRAL INDEX KEY:			0000765880
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]
		IRS NUMBER:				330091377
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		1920 MAIN STREET
		STREET 2:		SUITE 1200
		CITY:			IRVINE
		STATE:			CA
		ZIP:			92614
		BUSINESS PHONE:		949-407-0700

	MAIL ADDRESS:	
		STREET 1:		1920 MAIN STREET
		STREET 2:		SUITE 1200
		CITY:			IRVINE
		STATE:			CA
		ZIP:			92614

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	HEALTH CARE PROPERTY INVESTORS INC
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
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<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:justify;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">MARCH&nbsp;27, 2015</font></b></p>
<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:justify;"><b><u><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">VIA EDGAR AND FEDEX</font></u></b></p>
<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Howard Efron</font></p>
<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Staff Accountant</font></p>
<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Division of Corporation Finance</font></p>
<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">U.S. Securities and Exchange Commission</font></p>
<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">100 F Street, N.E.</font></p>
<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Washington, D.C.&#160; 20549</font></p>
<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
<p style="font-size:12.0pt;margin:0in 0in .0001pt .5in;punctuation-wrap:simple;text-align:justify;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">Re:</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>HCP,&nbsp;Inc.</b></p>
<p style="margin:0in 0in .0001pt .5in;punctuation-wrap:simple;text-indent:27.0pt;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">Form&nbsp;10-K for the fiscal year ended December&nbsp;31, 2014</font></b></p>
<p style="margin:0in 0in .0001pt .5in;punctuation-wrap:simple;text-align:justify;text-indent:27.0pt;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">Filed on February&nbsp;10, 2015</font></b></p>
<p style="margin:0in 0in .0001pt .5in;punctuation-wrap:simple;text-align:justify;text-indent:27.0pt;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">File Number: 1-08895</font></b></p>
<p style="margin:0in 0in .0001pt .5in;punctuation-wrap:simple;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Dear Mr.&nbsp;Efron:</font></p>
<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:justify;text-indent:.5in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">HCP,&nbsp;Inc. hereby submits this letter in response to the comment letter from the Staff of the Securities and Exchange Commission (the &#147;Staff&#148;) dated March&nbsp;19, 2015. For your convenience, the Staff&#146;s comment has been reprinted in italics below and our responses are in bold print. References to &#147;we&#148;, &#147;our&#148; or the &#147;Company&#148; in this response are to HCP,&nbsp;Inc.</font></p>
<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:justify;"><u><font size="3" face="Times New Roman" style="font-size:12.0pt;">Form&nbsp;10-K for the fiscal year ended December&nbsp;31, 2014</font></u></p>
<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:justify;"><u><font size="3" face="Times New Roman" style="font-size:12.0pt;">Item 7. Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations</font></u></p>
<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:justify;"><u><font size="3" face="Times New Roman" style="font-size:12.0pt;">Non-GAAP Financial Measures</font></u></p>
<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:justify;"><u><font size="3" face="Times New Roman" style="font-size:12.0pt;">Funds Available for Distribution, page&nbsp;38</font></u></p>
<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
<p style="font-size:12.0pt;margin:0in 0in .0001pt .25in;text-align:justify;text-indent:-.25in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">1.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><i>We note your disclosure appears to indicate that FAD is a liquidity measure as management views it as a supplemental measure which meaningfully measures the ability to fund ongoing dividend payments.&#160; Please tell us how you have met the reconciliation requirement under Item 10(e)&nbsp;of Regulation S-K as you have reconciled the amount to net income applicable to common shares through FFO as adjusted applicable to common shareholders.&#160; Additionally, please tell us how you determined it was appropriate to provide FAD per share within your filing in light of Question 102.5 of Compliance and Disclosure Interpretations on Non-GAAP financial measures.</i></p>
<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
<p style="font-size:12.0pt;margin:0in 0in .0001pt .25in;punctuation-wrap:simple;text-align:justify;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">Response: </font></b>We respectfully advise the Staff that we view FAD primarily as a performance measure and not a liquidity measure. This is consistent with how real estate equity analysts and investors evaluate our performance as FAD represents one of the key supplemental benchmarks to measure our operating performance and profitability (along with NAREIT FFO). Further, FAD, as a performance measure, is: 1) included as part of our Annual Operating Plan presented to and approved by our Board of Directors; 2) reported in our quarterly earnings releases; 3) discussed on earnings calls and with investors as a performance benchmark; and 4) one of the performance criteria in determining a portion of our named executive officers&#146; compensation, as described in our 2014 and 2015 Proxy Statements. Therefore, since the Company views FAD as a performance measure, we believe net income applicable to common shares is the most directly comparable GAAP measure.</p>
<p style="margin:0in 0in .0001pt .25in;punctuation-wrap:simple;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt .25in;punctuation-wrap:simple;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">While dividends can be analyzed in comparison to FAD, as much as they are analyzed in comparison to FFO or net income, it is not our intent to imply that this is the primary purpose of this measure.</font></p>
<p style="margin:0in 0in .0001pt .25in;punctuation-wrap:simple;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt .25in;punctuation-wrap:simple;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">For the avoidance of doubt, we respectfully advise the Staff that we will revise our disclosure in future periodic filings to state:</font></p>
<p style="margin:0in 0in .0001pt .25in;punctuation-wrap:simple;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt .5in;punctuation-wrap:simple;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Other 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 GAAP, is not necessarily indicative of cash available to fund cash needs, and should not be considered as an alternative to net income (determined in accordance with GAAP).</font></p>
<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt .25in;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">For the Staff&#146;s benefit, we have included an Appendix to this letter which outlines our revised disclosure, which is marked for changes from the disclosure included in our Form 10-K for the fiscal year ended December 31, 2014.</font></p>
<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
<p style="font-size:12.0pt;margin:0in 0in .0001pt .25in;punctuation-wrap:simple;text-align:justify;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">Response:</font></b> We respectfully advise the Staff, because FAD is considered a performance measure (as clarified above), we believe it is appropriate to present FAD per share in our filings in accordance with Item 10(e)&nbsp;of Regulation S-K and Question 102.5 of Compliance and Disclosure Interpretations of Non-GAAP financial measures.</p>
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<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">In connection with responding to your comment, we acknowledge that:</font></p>
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<p style="margin:0in 0in .0001pt 10.0pt;punctuation-wrap:simple;text-indent:-10.0pt;"><font size="1" face="Symbol" style="font-size:8.0pt;">&#183;</font></p>    </td>
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<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">we are   responsible for the adequacy and accuracy of the disclosure in the filings;</font></p>    </td>   </tr>
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<p style="margin:0in 0in .0001pt 10.0pt;punctuation-wrap:simple;text-indent:-10.0pt;"><font size="1" face="Symbol" style="font-size:8.0pt;">&#183;</font></p>    </td>
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<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Staff comments   or changes to disclosure in response to Staff comments do not foreclose the   Commission from taking any action with respect to the filings; and</font></p>    </td>   </tr>
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<p style="margin:0in 0in .0001pt 10.0pt;punctuation-wrap:simple;text-indent:-10.0pt;"><font size="1" face="Symbol" style="font-size:8.0pt;">&#183;</font></p>    </td>
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<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">we may not   assert Staff comments as a defense in any proceeding initiated by the   Commission or any person under the federal securities laws of the United   States.</font></p>    </td>   </tr>  </table>
<p style="margin:0in 0in .0001pt .75in;punctuation-wrap:simple;text-indent:-.25in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Thank you for your consideration of our responses. Should you have any questions, please call the undersigned at (949) 407-0707.</font></p>
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<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Very truly   yours,</font></p>    </td>   </tr>
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<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">/s/ TIMOTHY M.   SCHOEN</font></p>    </td>   </tr>
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<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>    </td>
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<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Timothy M.   Schoen</font></p>    </td>   </tr>
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<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Executive Vice   President and</font></p>    </td>   </tr>
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<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Chief Financial   Officer</font></p>    </td>   </tr>  </table>
<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
<p style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">cc:</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160; </font>James W. Mercer,&nbsp;Esq.</p>
<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:justify;text-indent:.25in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Scott A. Anderson</font></p>
<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:justify;text-indent:.25in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Rochelle Rausch</font></p>
<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:justify;text-indent:.25in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Troy E. McHenry,&nbsp;Esq.</font></p>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Appendix</font></p>
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<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Other 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 <strike>ability to fund our ongoing dividend payments</strike><b>  <i>performance and is frequently used by analysts, investors, and other interested parties in the evaluation of our performance as a REIT</i></b><i>.</i>  <strike>In addition, management believes that in order to further understand and analyze our liquidity, FAD should not be compared with net cash flows from operating activities as determined in accordance with GAAP and presented in our consolidated financial statements.</strike> FAD does not represent cash generated from operating activities determined in accordance with GAAP, <b><i style="font-weight:bold;">is not necessarily indicative of cash available to fund cash needs,</i></b> and <strike>FAD </strike>should not be considered as an alternative to net income <strike>(</strike>determined in accordance with GAAP<strike>)</strike><b>.</b><strike>, as an alternative to net cash flows from operating activities (as determined in accordance with GAAP), or as a measure of our liquidity.</strike></font></p>
<p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
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