EX-99.2 3 a17-3808_1ex99d2.htm EX-99.2

Exhibit 99.2

supplemental report fourth quarter 2016 Kingwood Medical Arts Kingwood, TX

Overview 3 Portfolio Summary 5 Capitalization and Debt 7 Investment Summary - Acquisitions and Fundings 10 Dispositions 11 Development and Redevelopment 12 Capital Expenditures 14 Portfolio Diversification 16 Same Property Portfolio 18 Expirations and Maturities 19 Triple-net Master Lease Profile 20 Portfolio Senior Housing Triple-net 21 Senior Housing Operating Portfolio 25 Life Science 31 Medical Office 34 Other 37 Unconsolidated Joint Ventures 40 TABLE OF Guidance 41 Definitions and Reconciliations 42 Company Information 49 Forward-Looking Statements & Risk Factors 50 2

THE NUMBER S Overview(1) Dollars and shares in thousands, except per share data 4Q15 1Q16 2Q16 3Q16 4Q16 Full Year 2016 Diluted earnings per common share $ (1.29) $ 0.25 $ 0.64 $ 0.32 $ 0.12 $ 1.34 Total rental and operating revenue(2)(3) 546,877 555,542 559,394 563,886 577,464 2,256,286 Cash NOI and interest income(2)(3) 361,672 353,440 372,960 354,957 359,239 1,440,596 Diluted FFO as adjusted per common share 0.80 0.69 0.74 0.72 0.59 2.74 Dividends per common share 0.565 0.575 0.575 0.575 0.370 2.095 Capitalization Total Market Equity $ 18,028,746 $ 15,403,857 $ 16,741,109 $ 17,975,018 $ 14,110,491 $ 14,110,491 Financial Leverage 45.0% 45.5% 44.6% 45.0% 48.6%(5) 48.6%(5) Net Debt to Adjusted EBITDA 5.6x 6.2x 5.8x 6.1x 6.2x 5.3x Senior housing triple-net 1.6% (1.8%) 1.8% 1.0% (1.3%) 0.4% Life science 7.8% 9.7% 8.7% 8.8% 4.8% 7.8% Other 0.9% 1.8% 5.5% (2.0%) 0.8% 1.3% Same Property Portfolio NOI Growth 2.6% (1) Balances are as originally reported unless noted otherwise. Reconciliations of the non-GAAP financial measures used in this report to their most comparable GAAP financial measures are included in the Reconciliations section or elsewhere in this report. (2) Periods prior to the October 31, 2016 spin-off have been revised to exclude the Quality Care Properties, Inc. (“QCP”) portfolio, which is reported in discontinued operations. (3) Revised to include the Company’s share of unconsolidated joint ventures (“JVs”). Balances include assets held for sale. (4) Excludes FFO as adjusted related to QCP and interest expense related to debt paid off with proceeds from the QCP spin-off, assuming these transactions occurred at the beginning of the period presented. (5) Financial Leverage is targeted to be in the 43% to 44% range by the end of 2017, reflecting the impact from the sale of 64 Brookdale Senior Living (“Brookdale”) assets held for sale and the sale of a 40% interest in and refinancing of the RIDEA II senior housing JV that occurred in January 2017, and assuming all proceeds were used to pay down debt, as well as various other activities throughout the year. 3 Total(2) 3.7%2.9%4.7%3.1%2.6%3.7% Medical office 2.5%3.3%3.8%3.1%2.2%3.0% Senior housing operating portfolio (“SHOP”) 5.7%4.8%6.8%3.3%7.1%6.6% Same Property Portfolio Cash NOI Growth Adjusted Fixed Charge Coverage 3.9x 3.6x 3.8x 3.8x 3.6x 3.7x Secured Debt Ratio 4.4%4.3%3.5%3.8%4.0%4.0% Debt Ratios Total Debt 11,433,878 11,304,221 11,122,837 11,301,191 9,542,791 9,542,791 Common stock outstanding and DownREIT units 471,463 472,801 473,180 473,650 474,781 474,781 Comparable FFO as adjusted per common share(4) 0.51 0.48 0.53 0.50 0.53 2.04 Diluted FFO per common share (0.99) 0.68 0.71 0.65 0.35 2.39 NOI(2)(3) 335,063 337,872 338,169 333,138 339,679 1,348,858 Investment(2) 18,066,629 17,974,007 17,872,928 18,140,588 17,488,497 17,488,497 Financial Metrics

THE NUMBER S Overview Square feet in thousands 4Q15 1Q16 2Q16 3Q16 4Q16 Number of properties(1) 867 862 853 860 802 Senior housing triple-net 87.4% 86.9% 86.3% 86.1% 86.1% Life science 97.9% 97.8% 98.5% 96.2% 96.3% Senior housing triple-net (units) 28,770 28,766 29,165 28,083 20,656 Life science (square feet) 7,829 7,372 7,294 7,145 7,222 (1) Periods prior to the October 31, 2016 spin-off have been revised to exclude the QCP portfolio, which is reported in discontinued operations. The Village at Gleannloch Farms Spring, TX 4 4 Medical office (square feet) 17,070 17,132 17,267 17,269 18,213 Senior housing operating portfolio (units) 23,320 23,430 23,237 24,440 25,407 Capacity: Medical office 92.0% 91.3% 91.6% 91.6% 92.1% Senior housing operating portfolio 87.4% 88.0% 87.3% 87.9% 87.6% Occupancy: Portfolio Statistics

Portfolio Summary(1) As of and for the quarter ended December 31, 2016, dollars in thousands CASH NOI AND INTEREST INCOME Senior housing triple-net 210 18 $ 3,868,801 $ 102,830 91.5 Other 13% Senior housing triple-net 29% Life science 116 20 3,553,026 67,816 100.0 Other 77 31 957,585 27,886 75.7 $359.2M Debt Investments Senior housing operating portfolio 20% Medical office 19% Life science — N/A $ 233,129 $ — — $ 303,058 $ — — Life science 19% Senior housing operating portfolio 23 24 $ 805,020 $ 15,520 83.0 Medical office 1 12 9,798 344 100.0 32 25 $ 911,857 $ 17,764 83.3 Senior housing triple-net 210 18 $ 3,868,801 $ 102,830 91.5 (1) Assets held for sale are included in Cash NOI and private pay percentage and are excluded from all other metrics. (2) Self-pay and private insurance (including managed care) revenues as a percentage of total revenues for the trailing 12 months one quarter in arrears from the date reported. Revenues for medical office properties are considered 100% private pay. Life science 120 20 3,874,044 69,340 100.0 Other 81 32 1,843,319 45,772 74.9 5 802 22 $ 17,488,497 $ 359,239 93.3 Medical office 239 22 3,915,671 69,580 100.0 Senior housing operating portfolio 152 21 3,986,662 71,717 89.9 Total Other 4 39 9,150 376 11.9 Life science 4 20 87,889 1,524 100.0 HCP’s Share of Unconsolidated JVs Medical office —N/A 69,929 — — Developments Other —N/A $ 876,584 $ 17,510 — 770 22 $ 15,396,998 $ 323,965 94.1 Medical office 238 22 3,835,944 69,236 100.0 Senior housing operating portfolio 129 21 3,181,642 56,197 94.1 Property Count Age Investment Cash NOI and Interest Income Private Pay %(2) Property Portfolio

Portfolio Summary For the quarter ended December 31, 2016, dollars in thousands NOI, CASH NOI AND INTEREST INCOME(1) Rental and Operating Revenue Operating Expenses Interest Income Cash NOI and Interest Income NOI(2) Cash NOI(2) Senior housing triple-net $ 103,129 $ (1,197) $ 101,932 $ 102,830 $ — $ 102,830 Life science 88,543 (19,287) 69,256 67,816 — 67,816 Other 30,252 (1,271) 28,981 27,886 17,510 45,396 Senior housing operating portfolio(3) $ 52,167 $ (41,547) $ 10,620 $ 15,520 $ — $ 15,520 Medical office 492 (143) 349 344 — 344 $ 55,024 $ (42,137) $ 12,887 $ 17,764 $ — $ 17,764 Total Senior housing operating portfolio 238,285 (171,468) 66,817 71,717 — 71,717 Medical office 114,890 (44,115) 70,775 69,580 — 69,580 $ 577,464 $ (237,785) $ 339,679 $ 341,729 $ 17,510 $ 359,239 (1) Includes assets held for sale. (2) Includes $8.5 million attributable to non-controlling interests, excluding five limited liability companies in which the Company is the managing member and non-managing member units are exchangeable for an amount of cash based on the then-current market value of shares of the Company’s common stock at the time of conversion or, at the Company’s election, shares of the Company’s common stock. (3) The variance between NOI and Cash NOI primarily relates to the treatment of the non-refundable portion of Entrance Fees, which are deferred and amortized over the estimated stay of the resident for NOI and are recognized upon receipt, net of reserve, for Cash NOI. 6 Other 30,646 (1,289) 29,357 28,262 17,510 45,772 Life science 90,514 (19,716) 70,798 69,340 —69,340 Senior housing triple-net$ 103,129 $ (1,197) $ 101,932 $ 102,830 $ —$ 102,830 Other 394 (18) 376 376 —376 Life science 1,971 (429) 1,542 1,524 —1,524 HCP’s Share of Unconsolidated JVs $ 522,440 $ (195,648) $ 326,792 $ 323,965 $ 17,510 $ 341,475 Medical office 114,398 (43,972) 70,426 69,236 —69,236 Senior housing operating portfolio 186,118 (129,921) 56,197 56,197 —56,197 Wholly-Owned

Capitalization Dollars and shares in thousands, except price per share data TOTAL CAPITALIZATION December 31, 2016 Shares Value Total Value Convertible partnership (DownREIT) units 6,700 29.72 199,124 Consolidated Debt N/A 9,189,495 HCP’s share of unconsolidated JV debt N/A 353,296 COMMON STOCK AND EQUIVALENTS Common stock equivalent securities: Dilutive impact of options 68 68 68 65 65 Total common stock and equivalents 475,811 468,210 468,210 467,403 471,566 7 Convertible partnership (DownREIT) units 6,700 — — —4,163 Restricted stock and units 962 163 163 143 143 Shares Outstanding December 31, 2016 Weighted Average Shares Three Months Ended December 31, 2016 Weighted Average Shares Year Ended December 31, 2016 Diluted Diluted EPSFFO Diluted Diluted EPSFFO Common stock 468,081 467,979 467,979 467,195 467,195 Total Market Equity and Total Debt 474,781 $ 23,653,282 Total Market Equity and Consolidated Debt 474,781 $ 23,299,986 Total Market Equity 474,781 $ 14,110,491 Common stock (NYSE: HCP)468,081 $ 29.72 $ 13,911,367

Indebtedness and Ratios As of December 31, 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 2018 899,718 — — — 3,641 — 903,359 28,037 3.55 931,396 1.90 2020 — — 800,000 2.81 3,907 5.11 803,907 10,877 4.20 814,784 2.84 2022 — — 900,000 3.89 2,861 — 902,861 14,688 4.39 917,549 3.89 2024 — — 1,150,000 4.17 3,131 — 1,153,131 87 — 1,153,218 4.16 2026 — — — — 3,213 3.07 3,213 94 — 3,307 2.98 Subtotal $ 899,718 $ 441,181 $ 7,200,000 $ 618,940 $ 9,159,839 $ 166,600 $ 9,326,439 (Discounts), premiums and debt costs, net — (1,119) (66,462) 4,852 (62,729) (104) (62,833) Weighted average interest rate % 1.86 1.96 4.34 3.40 3.91 3.87 3.91 (1) Represents drawn amounts of $440.0 million and £372.0 million translated into U.S. dollars at December 31, 2016. The $2.0 billion unsecured revolving line of credit matures on March 31, 2018 and has a one-year extension option. Based on our credit ratings on January 31, 2017, the drawn rate was LIBOR plus 105 bps and the facility fee was 20 bps. (2) Represents £137.0 million in 2017 and £220.0 million in 2019, both translated into U.S. dollars at December 31, 2016. (3) The rates are reported in the year in which the related debt matures. (4) Mortgage debt attributable to non-controlling interests at December 31, 2016 was $47.7 million, excluding Down REITs. (5) Reflects pro rata share of mortgage and other debt in the Company’s unconsolidated JVs. (6) Represents non-interest bearing Entrance Fee deposits at certain of the Company’s senior housing facilities and demand notes that have no scheduled maturities. 8 Weighted average maturity in years 1.3 1.5 6.4 5.5 5.6 4.0 5.6 Total $ 899,718 $ 440,062 $ 7,133,538 $ 623,792 $ 9,189,495 $ 353,296 $ 9,542,791 Other debt(6) — — — — 92,385 186,800 279,185 Thereafter — — 300,000 6.88 101,007 4.17 401,007 2,901 3.90 403,908 6.18 2025 — — 1,350,000 3.94 3,276 —1,353,276 18,063 3.87 1,371,339 3.93 2023 — — 800,000 4.39 2,993 —802,993 3,205 3.96 806,198 4.38 2021 — — 1,200,000 5.54 11,277 5.38 1,211,277 39,789 4.17 1,251,066 5.50 2019 —271,876 450,000 3.95 3,839 —725,715 14,895 3.17 740,610 3.18 Bank Line of Credit(1) Term Loans(2) Amounts Rates %(3) Consolidated Amounts(4) Rates %(3)Debt Amounts(5) Rates %(3) Amounts Rates %(3) 2017$ —$ 169,305 $ 250,000 5.72 $ 479,795 3.14 $ 899,100 $ 33,964 3.71 $ 933,064 3.64

Indebtedness and Ratios As of December 31, 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 547,161 6 3.18% 1.1 Unsecured Fixed rate 7,471,876 80 4.26% 6.2 Combined $ 8,540,899 91 3.95% 5.6 Floating rate 1,616,184 17 2.29% 1.1 Other debt(1) 279,185 Total Debt $ 9,542,791 3.91% 5.6 FINANCIAL COVENANTS(2) Bank Line of Credit Secured Debt Ratio No greater than 30% 5% Fixed Charge Coverage Ratio (12 months) No less than 1.50x 3.6x CREDIT RATINGS (SENIOR UNSECURED DEBT) S&P Global BBB (Stable) (1) Represents non-interest bearing Entrance Fee deposits at certain of the Company’s senior housing facilities and demand notes that have no scheduled maturities. (2) Calculated based on the definitions contained in the credit agreement, which may differ from similar terms used in the Company’s consolidated financial statements as provided in its Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. Compliance with certain of these financial covenants requires the inclusion of the Company’s consolidated amounts and its proportionate share of unconsolidated investees. 9 Fitch BBB (Stable) Moody’s Baa2 (Stable) Unsecured Leverage Ratio No greater than 60%55% Requirement Actual Compliance Leverage Ratio No greater than 60%50% (Discounts), premiums and debt costs, net (62,833) Combined$ 9,326,439 100 3.91% 5.6 Total Fixed rate 7,710,255 83 4.25% 6.5 Floating rate 1,069,023 11 1.83% 1.1 Combined$ 785,540 9 3.49% 5.1 Secured Fixed rate $ 238,379 3 4.21% 14.3

Acquisitions and Fundings Investment Summary For the year ended December 31, 2016, dollars and square feet in thousands INVESTMENT SUMMARY December 31, 2016 Three Months Ended Description Year Ended Development fundings 48,359 222,726 Loan fundings(1) 134,357 152,460 ACQUISITIONS Forward Yield(2) Investment Property Count Date Capacity Property Type QTD YTD NOI Cash NOI Senior housing/ Post-acute/skilled RSF REIT January 484 Units/Beds 6 $ — $ 95,471 Directors Place July 136 Sq. Ft. 2 Life science — 4 3,000 Mid-Atlantic Morningside September 526 Units 7 SHOP — 18 6,250 Kingwood Medical Arts November 90 Sq. Ft. 1 Medical office 32,606 32,6 0 6 HCP’s Share of Unconsolidated JVs 30 $ 210,556 $ 570,729 7.2% 6.6 % (1) Balance includes a $131 million (£105 million) bridge loan to Maria Mallaband Care Group (“Maria Mallaband”) to acquire a portfolio of predominantly private pay care homes located in London/South-East England. We intend to convert our bridge loan into fee ownership of real estate through the exercise of a call option in mid-2017. (2) Represents the average yield calculated using NOI and Cash NOI for the 12-month period following acquisition. 10 Clearfield, UT - MBK JV March 130 Units 1 SHOP—14,50 0 Community Health Systems December 756 Sq. Ft. 10 Medical office 16 3,20 0 16 3,20 0 Twin Creeks Medical Center October 69 Sq. Ft. 2 Medical office 14,750 14,750 Directors Place land July4 Acres—Life science—6,000 Easton, PA February 64 Beds1 Senior housing —14,9 52 Wholly-Owned Total $ 406,476 $ 973,104 Redevelopment fundings 13,204 27,189 Acquisitions $ 210,556 $ 570,729

Dispositions For the year ended December 31, 2016, dollars and square feet in thousands DISPOSITIONS(1) Sales Price Trailing Yield(2) Property Count NOI Cash NOI Date Capacity Property Type QTD YTD Post-acute/skilled/ Senior housing Various, HCRMC January, February 1,046 Beds/Units 11 $ — $ 62,269 Cambridge, MA April 78 Sq. Ft. 1 Life science — 74,207 Coyoacan, Mexico June 23 Sq. Ft. 1 Medical office — 5,550 Various June 848 Beds/Units 7 — 13 0,000 Springville, UT September 11 Sq. Ft. 1 Medical office — 1,000 Jacksonville, FL October 245 Units 1 SHOP 21,50 0 21,50 0 Southfield, MI December 299 Units 1 SHOP 12,50 0 12,50 0 Denton, TX - HCP Ventures IV January 22 Beds 1 Hospital — 5,000 Tampa, FL November 136 Units 1 SHOP 29,456 29,4 56 ASSETS HELD FOR SALE Cash NOI for the Three Months Ended December 31, 2016 Held for Sale Date Property Count Projected Sales Price Capacity Property Type Various, Brookdale December 5,967 Units 64 Senior housing 1,125,000 22,535 (1) Excludes the spin-off of QCP that occurred October 31, 2016. (2) Represents the average yield using NOI and Cash NOI for the 12-month period ended prior to the disposal date. (3) In January 2016, the Company entered into a purchase and sale agreement with Genentech who exercised their purchase option to acquire a life science portfolio in South San Francisco. The first tranche of the portfolio, which included four properties representing 457,000 square feet, closed in November 2016 for a sales price of $311.3 million. The second tranche, which includes four properties representing 337,000 square feet, is expected to close in July 2018 for a sales price of $269.4 million and remains in the Company’s operating portfolio as of December 31, 2016. 11 Memphis, TN December 130 Units 1 SHOP 2,250 71 Salt Lake City, UT September 324 Sq. Ft.4 Life science $ 75,750 $ 1,429 41$ 471,655 $ 769,681 7.6% 7.3% Various, AL October 208 Sq. Ft.3 Medical office 9,225 9,225 HCP’s Share of Unconsolidated JVs South San Francisco, CA(3) November 457 Sq. Ft. 4 Life science 311,3 0 0 311,3 0 0 Various October 344 Units 7 Senior housing 87,674 87,674 Post-acute/skilled/ Senior housing Bedford, OH June 211 Units 1 SHOP—6,50 0 Houston, TX April 50 Sq. Ft.1 Medical office —13,50 0 Wholly-Owned

Developments As of December 31, 2016, dollars and square feet in thousands DEVELOPMENT PROJECTS IN PROCESS Placed in Service(1) Construction in Progress (“CIP”) Cost to Complete Total at Completion Name of Project MSA Segment Pearland II Houston, TX Medical office $ 5,400 $ 9,906 $ 3,494 $ 18,800 Cypress Houston, TX Medical office 15,968 13,861 10,377 40,206 Woodlands Plaza IV Houston, TX Medical office — 19,550 17,500 37,050 Ridgeview San Diego, CA Life science — 31,207 30,793 62,000 $ 140,239 $ 290,461 $ 387,304 $ 818,004 Projected weighted average stabilized yield on development projects over respective market cap rates: 150-200 bps Project Capacity Placed in Service/ Occupied Sq. Ft. Under Construction % of Total Project Leased Actual/Estimated Occupancy Health System Affiliate Total Project Unit of Measure Project Start Initial Stabilized Pearland II Memorial Hermann 25 72 97 Sq. Ft. 62 2Q14 1Q16 3Q18 Cypress Memorial Hermann 60 105 165 Sq. Ft. 39 1Q15 1Q16 2Q19 Woodlands Plaza IV Memorial Hermann — 170 170 Sq. Ft. 100 1Q16 2Q17 2Q17 Ridgeview N/A — 301 301 Sq. Ft. 50 2Q16 2Q18 1Q19 238 1,426 1,664 55 (1) Cash NOI for assets placed in service was $1.2 million for the three months ended December 31, 2016. (2) Project costs placed in service relate to 114,000 square feet of lab space and 32,000 square feet of amenity space. 12 The Cove at Oyster Point - Phase IIIN/A —336 336 Sq. Ft. —4Q16 4Q18 4Q19 The Cove at Oyster Point - Phase IIN/A —230 230 Sq. Ft. 100 1Q16 4Q17 1Q18 The Cove at Oyster Point - Phase IN/A 114(2) 133 247 Sq. Ft. 73 1Q15 3Q16 4Q17 Sky Ridge HCA 39 79 118 Sq. Ft. 47 3Q14 1Q16 4Q17 Wholly-Owned The Cove at Oyster Point - Phase IIISan Francisco, CA Life science —24,916 186,195 211,111 The Cove at Oyster Point - Phase IISan Francisco, CA Life science —112,152 108,334 220,486 The Cove at Oyster Point - Phase ISan Francisco, CA Life science 101,179(2) 64,854 24,767 190,800 Sky Ridge Denver, CO Medical office 17,692 14,015 5,844 37,551 Wholly-Owned

Redevelopments and Land Held for Development As of December 31, 2016, dollars and square feet in thousands REDEVELOPMENT PROJECTS IN PROCESS Placed in Service Costs to Complete Total at Completion Project Start Estimated Completion Name of Project MSA Segment CIP Medical City Dallas Garage Dallas, TX Medical office $ — $ 5,325 $ 3,975 $ 9,300 3Q16 2Q17 Aurora I and II Denver, CO Medical office 658 1,068 7,162 8,888 3Q16 3Q17 Sunrise Tower IV Las Vegas, NV Medical office 308 1,666 4,526 6,500 3Q16 3Q17 $ 1,857 $ 12,597 $ 34,490 $ 48,944 Projected weighted average return on incremental capital invested: 9.0% to 12.0% LAND HELD FOR DEVELOPMENT Gross Site Acreage Estimated Rentable Sq. Ft. / Units Investment to Date Project MSA Segment Sierra Point San Francisco, CA Life science 23 540 Sq. Ft. $ 92,311 The Cove at Oyster Point - Phase IV San Francisco, CA Life science 2 164 Sq. Ft. 11,800 Poway II San Diego, CA Life science 26 465 Sq. Ft. 42,638 Torrey Pines Science Center San Diego, CA Life science 6 93 Sq. Ft. 11,410 Remaining Various Various 13 N/A 4,589 HCP’s Share of Unconsolidated JVs Waldwick New York, NY SHOP 4 79 Units 2,274 15 220 Units $ 5,306 13 117 $ 257,636 Brandywine Philadelphia, PA SHOP 8 67 Units 797 Oakmont Village Santa Rosa, CA SHOP 3 74 Units $ 2,235 1022,076 Sq. Ft. $ 252,330 Directors Place San Diego, CA Life science 4 82 Sq. Ft. 6,000 Bressi Ranch II San Diego, CA Life science 18 300 Sq. Ft. 26,303 Britannia Modular Labs III San Francisco, CA Life science 2 106 Sq. Ft. 10,752 Forbes Research Center San Francisco, CA Life science 8 326 Sq. Ft. 46,527 Wholly-Owned One Fannin Houston, TX Medical office 720 1,737 5,543 8,000 4Q16 4Q17 Museum Medical Tower Houston, TX Medical office 161 1,381 8,506 10,048 3Q16 3Q17 Yorktown Washington, DC Medical office 10 1,420 4,778 6,208 3Q16 3Q17 Wholly-Owned

Fourth Quarter For the quarter ended December 31, 2016, dollars in thousands except per unit/square foot Senior Housing Triple-net Senior Housing Operating Life Science Medical Office Other(1) Total Recurring capital expenditures $ 1,377 $ 5,431 $ 2,076 $ 3,991 $ 3 $ 12,878 Lease commissions — — 4,583 2,720 (2) 7,301 Revenue enhancing capital expenditures 11,801 10,512(3) 339 3,579 450 26,681 Tenant improvements - 1st generation — — 828 5,870 — 6,698 Redevelopment — — 57 13,147 — 13,204 Total capital expenditures $ 13,421 $ 18,363 $ 51,966 $ 42,507 $ 361 $ 126,618 HCP’s Share of Unconsolidated JVs Tenant improvements - 2nd generation — — — 85 — 85 Total recurring capital expenditures $ — $ 856 $ 41 $ 156 $ — $ 1,053 ICE(4) — 191 — — — 191 Development — 1,798 — — — 1,798 Recurring capital expenditures per unit/sq. ft.(5) NM NM (1) Net credits relate to foreign exchange (“FX”) adjustments. (2) Includes $0.8 million attributable to non-controlling interests. (3) Revenue enhancing capital expenditures per unit for senior housing operating is $658. The per unit based on majority type is $377, $806 and $855 for IL, AL and CCRC, respectively. (4) Expenditures required to bring a newly acquired property up to standard. The expenditures are typically identified during underwriting and incurred within the first year of ownership. (5) Recurring capital expenditures per unit for senior housing operating is $296. The per unit based on majority type is $189, $226, and $395 for CCRC, IL and AL, respectively. 14 $296 $0.28 $0.23 per Unit per Sq. Ft. per Sq. Ft. Total including unconsolidated JVs$ 13,421 $ 24,661 $ 52,027 $ 42,689 $ 361 $ 133,159 Total capital expenditures$ —$ 6,298 $ 61 $ 182 $ —$ 6,541 Tenant improvements - 1st generation — — 20 — — 20 Revenue enhancing capital expenditures —3,453 —26 —3,479 Lease commissions — — 13 4 —17 Recurring capital expenditures $ —$ 856 $ 28 $ 67 $ —$ 951 Capitalized interest —40 2,100 478 —2,618 Development 243 59 39,244 7,105 (90) 46,561 Initial Capital Expenditures (“ICE”)(4) —2,321 747 847 —3,915 Total recurring capital expenditures$ 1,377 $ 5,431(2) $ 8,651 $ 11,481 $ 1 $ 26,941 Tenant improvements - 2nd generation — — 1,992 4,770 —6,762 Wholly-Owned

Full Year For the year ended December 31, 2016, dollars in thousands except per unit/square foot Senior Housing Triple-net Senior Housing Operating Life Science Medical Office Other(1) Total Recurring capital expenditures $ 2,007 $ 16,949 $ 4,277 $ 14,407 $ 3 $ 37,643 Lease commissions — — 11,521 12,027 (2) 23,546 Revenue enhancing capital expenditures 43,572 33,564(3) 694 4,293 5,565 87,688 Tenant improvements - 1st generation — — 15,872 18,649 — 34,521 Redevelopment — — 267 26,922 — 27,189 Total capital expenditures $ 49,110 $ 74,158 $ 211,644 $ 140,292 $ 7,245 $ 482,449 HCP’s Share of Unconsolidated JVs Tenant improvements - 2nd generation — — 87 248 — 335 Total recurring capital expenditures $ — $ 3,774 $ 115 $ 566 $ — $ 4,455 ICE — 4,555 — — — 4,555 Development — 11,957 — — — 11,957 Recurring capital expenditures per unit/sq. ft.(4) NM NM (1) Net credits relate to FX adjustments. (2) Includes $2.5 million attributable to non-controlling interests. (3) Revenue enhancing capital expenditures per unit for senior housing operating is $2,702. The per unit based on majority type is $1,554, $2,584 and $5,285 for IL, AL and CCRC, respectively. (4) Recurring capital expenditures per unit for senior housing operating is $1,033. The per unit based on majority type is $888, $962 and $1,192 for IL, CCRC and AL, respectively. 15 $1,033 $0.56 $0.85 per Unit per Sq. Ft. per Sq. Ft. Total including unconsolidated JVs$ 49,110 $ 115,080 $ 212,612 $ 141,229 $ 7,245 $ 525,276 Total capital expenditures$ —$ 40,922 $ 968 $ 937 $ —$ 42,827 Tenant improvements - 1st generation — — 849 347 —1,196 Revenue enhancing capital expenditures —20,636 4 24 —20,664 Lease commissions — — —92 —92 Recurring capital expenditures $ —$ 3,774 $ 28 $ 226 $ —$ 4,028 Capitalized interest 76 850 7,159 3,023 —11,108 Development 3,455 7,073 161,568 36,994 1,679 210,769 ICE—15,722 978 3,033 —19,733 Total recurring capital expenditures$ 2,007 $ 16,949(2) $ 25,106 $ 47,378 $ 1 $ 91,441 Tenant improvements - 2nd generation — — 9,308 20,944 —30,252 Wholly-Owned

Portfolio Diversification MSA As of and for the quarter ended December 31, 2016, dollars in thousands, includes HCP’s pro rata share of unconsolidated JVs CASH NOI AND INTEREST INCOME BY MSA(1) Senior Housing Triple-net Life Science Medical Office % of Total MSA Properties SHOP Other Total Dallas, TX 42 5,081 1,770 — 8,394 7,123 22,368 6 San Diego, CA 37 767 1,246 13,239 1,801 — 17,053 5 Philadelphia, PA 7 5,478 1,575 — 5,014 — 12,067 3 Washington, DC 20 6,645 2,944 — 977 — 10,566 3 Tampa, FL 11 1,625 7,700 — 353 — 9,678 3 Cash NOI 802 $ 102,830 $ 71,717 $ 69,340 $ 69,580 $ 28,262 $ 341,729 95 Total 802 $ 102,830 $ 71,717 $ 69,340 $ 69,580 $ 45,772 $ 359,239 100 (1) Cash NOI includes assets held for sale. 16 Interest income — — — — —17,510 17,510 5 Remaining 509 67,877 40,291 12,542 36,285 15,262 172,257 48 Miami, FL26 1,865 4,301 —2,204 1,954 10,324 3 Los Angeles, CA 13 4,294 1,597 —1,240 3,589 10,720 3 Denver, CO 22 3,637 4,292 —4,335 —12,264 3 Houston, TX 39 3,078 6,001 —8,220 334 17,633 5 San Francisco, CA 76 $ 2,483 $ —$ 43,559 $ 757 $ —$ 46,799 13

Portfolio Diversification Operator/Tenant As of and for the quarter ended December 31, 2016, dollars in thousands, includes HCP’s pro rata share of unconsolidated JVs CASH NOI AND INTEREST INCOME BY OPERATOR/TENANT(1) Tenant/Credit Exposure SHOP/Operator Exposure % of Total Cash NOI and Interest Income % of Total Cash NOI and Interest Income Senior Housing Triple-net Property Count Life Science Medical Office Property Count Operator/Tenant Other Total SHOP Sunrise Senior Living 48 26,059 — — — 26,059 7 — — — HC-One 36 — — — 11,313 11,313 3 — — — Hospital Corporation of America 8 — — 1,144 5,724 6,868 2 — — — 650 $ 102,830 $ 69,340 $ 69,580 $ 45,772 $ 287,522 80 152 $ 71,717 20 CASH NOI AND INTEREST INCOME BY OPERATOR/TENANT - PRO FORMA FOR BROOKDALE TRANSACTIONS(2) Tenant/Credit Exposure SHOP/Operator Exposure % of Total Cash NOI and Interest Income % of Total Cash NOI and Interest Income Senior Housing Triple-net Property Count Life Science Medical Office Property Count Operator/Tenant Other Total SHOP Sunrise Senior Living 48 26,059 — — — 26,059 8 — — — HC-One 36 — — — 11,313 11,313 3 — — — Hospital Corporation of America 8 — — 1,144 5,724 6,868 2 — — — 628 $ 77,187 $ 69,340 $ 69,580 $ 45,772 $ 261,879 81 152 $ 62,142 19 (1) Cash NOI includes assets held for sale. (2) Brookdale exposure is pro forma to exclude the Cash NOI for 64 properties held for sale, the previously announced planned sale or transition of 25 triple-net assets and the sale of a 40% interest in RIDEA II that closed in January 2017. 17 Remaining 450 18,871 57,046 68,436 21,065 165,418 52 28 7,009 2 Tandem Consulate Health Care — — — — 7,670 7,670 2 — — — Amgen 7 —12,294 — — 12,294 4 — — — Brookdale(2) 79 $ 32,257 $ —$ —$ —$ 32,257 10 124 $ 55,133 17 Remaining 447 18,514 57,046 68,436 21,065 165,061 47 28 7,009 2 Tandem Consulate Health Care — — — — 7,670 7,670 2 — — — Amgen 7 —12,294 — — 12,294 3 — — — Brookdale 104 $ 58,257 $ —$ —$ —$ 58,257 16 124 $ 64,708 18

Same Property Portfolio As of December 31, 2016, dollars in thousands, includes HCP’s pro rata share of unconsolidated JVs THREE-MONTH SPP Senior housing operating 119 3,390,255 85 87.5% 87.5% 7.1% 7.1% 87.5% 87.7% 9.6% 9.6% Medical office 216 3,285,186 85 92.3% 92.8% 2.3% 2.2% 92.3% 92.1% 2.2% 1.2% Total Portfolio 731 $ 14,821,087 91 2.4% 2.6% 3.4% 3.0% FULL-YEAR SPP Senior housing operating 83 2,386,979 60 86.9% 86.5% 6.6% 6.6% Medical office 203 2,890,331 75 92.1% 92.3% 2.1% 3.0% Total Portfolio 644 $ 13,165,242 81 2.6% 3.7% 18 Other 42 691,113 71 N/A N/A 2.0%1.3% Life science 111 3,405,580 94 97.3% 97.8% 4.6%7.8% Percent of Property Property Count Investment Portfolio Year-Over-Year Occupancy Growth 4Q16 4Q15 NOI Cash NOI Senior housing triple-net 205 $ 3,791,239 98 86.7% 87.5% (0.4%)0.4% Other 80 948,827 98 N/A N/A 2.7% 0.8% N/A N/A 0.2% 0.2% Life science 111 3,405,580 94 97.3% 97.8% 4.0%4.8%97.3% 97.2% 0.4%(1.3%) Percent of Property Property Count Investment Portfolio Year-Over-Year Sequential Occupancy Growth Occupancy Growth 4Q16 4Q15 NOI Cash NOI 4Q16 3Q16 NOI Cash NOI Senior housing triple-net 205 $ 3,791,239 98 86.7% 87.5% (2.1%)(1.3%)86.7% 86.7% 4.0%4.9%

Expirations and Maturities(1) As of December 31, 2016, dollars in thousands, includes HCP’s pro rata share of unconsolidated JVs EXCLUDES PURCHASE AND PREPAYMENT OPTIONS Annualized Base Rent Senior Housing Triple-net Life Science Medical Office Interest Income Year Total % of Total Other 2018 173,777 15 25,114 61,837 53,516 982 32,328 2020 117,535 10 38,574 19,179 51,569 8,213 — 2022 57,417 5 1,476 18,631 23,517 12,918 875 2024 46,180 4 13,674 3,111 14,322 15,073 — 2026 29,730 3 5,599 5,439 18,692 — — $ 1,155,292 100 $ 311,203 $ 279,426 $ 378,265 $ 111,691 $ 74,707 6.1 9.0 4.5 4.3 8.3 2.9 REFLECTS PURCHASE AND PREPAYMENT OPTIONS Annualized Base Rent Senior Housing Triple-net Life Science Medical Office Interest Income(3) Year Total % of Total Other 2018 140,016 12 25,114 61,837 52,083 982 — 2020 122,038 11 38,574 25,002 50,249 8,213 — 2022 57,594 5 3,275 18,631 21,895 12,918 875 2024 30,344 3 11,875 3,111 14,126 1,232 — (1) Excludes assets held for sale. (2) Includes month-to-month and holdover leases. (3) Reflects the earliest point at which there is no prepayment penalty. 2026 21,205 2 5,599 5,439 10,167 — — $ 1,155,292 100 $ 311,203 $ 279,426 $ 378,265 $ 111,691 $ 74,707 19 Thereafter 212,826 18 142,633 13,298 21,311 35,584 — 2025 78,349 7 9,388 17,273 29,831 21,857 — 2023 105,190 9 43,368 41,204 11,221 —9,397 2021 104,128 9 9,872 44,430 46,262 1,815 1,749 2019 93,828 8 9,470 18,429 44,654 21,275 — 2017(2) $ 189,774 16 $ 12,035 $ 30,772 $ 76,466 $ 7,815 $ 62,686 Weighted average maturity in years Thereafter 218,718 18 142,633 19,121 21,380 35,584 — 2025 77,625 7 9,388 17,273 29,107 21,857 — 2023 107,590 9 43,368 41,204 13,621 —9,397 2021 92,938 8 9,872 44,430 35,072 1,815 1,749 2019 111,047 10 9,470 18,429 47,690 7,434 28,024 2017(2) $ 122,735 11 $ 12,035 $ 30,772 $ 69,779 $ 7,815 $ 2,334

Triple-Net Master Lease Profile(1) INVESTMENT TYPE Senior Housing Other No Corporate Guaranty Share of HCP Cash NOI and Interest Income % 1.0% 0.5% 2.3% 1.9% 0.1% 6.2% 0.3% 0.6% 0.9% 2158 0 2 4 6 8 10 12 14 16 TERM (YEARS TO EXPIRATION) % of HCP Cash NOI and Interest Income Weighted Average Maturity in Years EBITDAR CFC # of Leases Guaranty(2) (1) Agreements with cross-default protections are presented as a single master lease, including agreements that will be added to a master lease upon third-party debt repayment. Excludes properties held for sale and master leases with properties acquired during the period required to calculate CFC. (2) Percentage of Cash NOI (excluding Cash NOI from assets held for sale) supported by a corporate guaranty. 1.00x - 1.25x 15.6 11 7.8 73.1% 1.51x and above 3.2 4 7.3 100.0% 20 EBITDAR CFC (TRAILING 12 MONTHS ENDED 9/30/2016) 0.50x 0.75x 1.00x 1.25x 1.50x 1.75x 2.00x 2.25x 132.0.500xx 1.26x - 1.50x 4.3 7 15.1 60.5% Less than 1.0x 2.1 4 9.1 38.1% 1.6% 0.5% 0.1% 0.4% 1.0% 0.3% 0.2% 0.8% 1.1% 1.1% 0.6% 1.0% 0.6% 0.3% 0.2%1.0% 0.6%

Senior Housing Triple-net As of and for the quarter ended December 31, 2016, dollars in thousands, except REVPOR Property Count Cash NOI Occupancy % EBITDARM CFC EBITDAR CFC Property Portfolio Investment Units REVPOR Assisted living (“AL”) 148 $ 2,232,671 $ 61,305 11,623 85.7 $ 5,406 1.33x 1.13x CCRC 9 453,133 14,570 2,462 84.4 5,880 1.29x 1.08x Assisted living 27 628,697 9,661 3,123 86.1 6,999 1.37x 1.05x Properties Harbor Retirement Associates 212,190 4,662 14 100 1,346 77.0 5,741 1.43x 1.21x Capital Senior Living 181,988 4,260 15 100 1,511 85.3 3,257 1.20x 1.05x Subtotal excluding Brookdale $ 2,216,869 $ 44,573 106 91 10,473 85.1 $ 6,202 1.31x 1.08x (1) Cash NOI for Brookdale includes $22.5 million related to 64 properties that are held for sale as of December 31, 2016 and therefore excluded from all other metrics presented. (2) Excluding the previously announced planned sale or transition of 25 properties, the EBITDAR CFC for Brookdale is 1.21x and for total senior housing triple-net is 1.13x based on Brookdale in-place annual rents effective November 2016. 21 Total $ 3,868,801 $ 102,830 210 94 20,656 86.1 $ 5,434 1.32x 1.11x Remaining 289,111 5,194 19 63 1,366 74.8 5,076 0.96x 0.82x Aegis Senior Living 182,152 4,398 10 80 701 89.8 7,824 1.25x 1.09x Sunrise Senior Living 1,351,428 26,059 48 98 5,549 89.0 7,096 1.38x 1.10x Cash Operator Investment NOI Count % Pooled Occupancy EBITDARMEBITDAR Units % REVPORCFCCFC(2) Brookdale(1) $ 1,651,932 $ 58,257 104 97 10,183 87.1 $ 4,661 1.34x 1.16x Total 210 $ 3,868,801 $ 102,830 20,656 86.1 $ 5,434 1.32x 1.11x Direct Financing Leases: Independent living (“IL”) 26 554,300 17,294 3,448 88.4 3,838 1.29x 1.14x Operating Leases:(1)

Senior Housing Triple-net Same Property Portfolio Dollars in thousands, except REVPOR 4Q15 1Q16 2Q16 3Q16 4Q16 Investment $ 3,759,507 $ 3,766,954 $ 3,772,922 $ 3,782,521 $ 3,791,239 Occupancy % 87.5 86.9 86.5 86.7 86.7 EBITDARM CFC 1.35x 1.34x 1.33x 1.32x NOI: Operating expenses (112) (174) (169) (168) 273 Cash NOI: $ 79,015 $ 70,512 $ 74,517 $ 74,403 $ 78,025 22 Year-Over-Year Three-Month SPP Growth (1.3%) Non-cash adjustments to NOI (151) (4,560) (1,165) (83) 527 $ 79,166 $ 75,072 $ 75,682 $ 74,486 $ 77,498 Total revenues $ 79,278 $ 75,246 $ 75,851 $ 74,654 $ 77,225 EBITDAR CFC 1.14x 1.14x 1.12x 1.12x 1.11x REVPOR$ 5,280 $ 5,296 $ 5,443 $ 5,443 $ 5,453 Units 20,278 20,274 20,273 20,275 20,257 Property count 205 205 205 205 205

Senior Housing Triple-net New Supply - Assisted Living As of and for the quarter ended December 31, 2016, dollars in thousands NEW SUPPLY ANALYSIS HCP Portfolio 5-Mile Radius(1) % of Triple-net Cash NOI Cash NOI Exposed to New Supply(2)(4) 5-Year 80+ Population Growth % 2016-2021 Properties/ Units Under Construction(3) 75+ Penetration Rate % Qualified Care Giver % Median Household Income Cash NOI(2) Affordability (in years) 75+ Median Net Worth Unemployment % MSA Units New York, NY 1,148 $ 5,992 7.5 5 / 505 $ 1,714 8.1 0.4 4.7 80 3.1 188 5.3 Seattle, WA 513 2,715 3.4 1 / 60 1,247 9.8 2.6 7.6 81 5.6 247 6.5 Los Angeles, CA 384 2,387 3.0 — / — — 6.8 1.8 5.3 68 3.9 234 5.6 Charlotte, NC 642 2,012 2.5 1 / 46 224 15.7 4.1 5.5 66 8.6 243 6.0 677 1,731 2.2 3 / 180 148 13.3 3.8 6.5 81 11.5 257 4.1 Atlanta, GA Miami, FL 274 1,239 1.5 1 / 132 225 9.8 1.1 3.5 47 9.7 187 7.1 330 1,144 1.4 2 / 285 275 8.3 1.6 7.2 69 6.7 233 5.1 Detroit, MI Houston, TX 308 1,013 1.3 1 / 78 350 24.1 2.6 6.5 68 >15 220 4.1 Santa Rosa, CA 161 935 1.2 1 / 64 935 8.0 3.0 5.0 60 3.4 206 6.6 Philadelphia, PA 186 768 1.0 — / — — 5.2 4.2 8.4 80 9.6 250 4.2 Remaining 6,693 19,191 23.7 10 / 877 2,742 16.9 2.1 5.1 45 6.7 177 5.6 % of Total Cash NOI and Interest Income(5) 3.6% (1) Demographic data provided by Environmental Systems Research (“ESRI”) for 2016. Construction and supply data provided by National Investment Center for Senior Housing and Care (“NIC”) for the quarter ended December 31, 2016. Data reflects a 5-mile radius around each community and is weighted by Cash NOI. See definitions for further discussion. (2) Excludes $16.2 million of Cash NOI related to the assisted living component of 64 Brookdale properties held for sale. (3) Represents the number of properties and units with similar care types that are under construction. (4) Represents the Company’s Cash NOI exposed to new construction and expansions. (5) Total Cash NOI and interest income excludes $22.5 million related to 64 Brookdale properties held for sale. 23 Total 14,746 $ 54,797 68.2 41 / 3,746 $ 12,063 15.3 1.6 5.8 62 6.0 $ 205 5.4 San Diego, CA 116 767 1.0 — / — — 5.9 0.9 4.8 59 7.7 235 5.3 St. Louis, MO 152 842 1.0 2 / 137 842 1.2 0.4 5.6 58 3.3 220 4.8 Cleveland, OH 100 956 1.2 — / — — 5.0 0.4 7.3 68 9.1 250 3.6 Riverside, CA 287 1,110 1.4 2 / 180 191 15.9 1.3 5.7 74 12.2 243 6.9 Chicago, IL 351 1,220 1.5 5 / 372 1,220 8.4 1.3 8.4 85 5.9 250 5.3 Dallas, TX 401 1,375 1.7 — / — — 15.8 3.7 6.1 52 >15 194 4.2 Portland, OR 762 1,941 2.4 2 / 276 654 10.2 2.8 5.6 63 >15 196 5.4 Baltimore, MD 293 2,238 2.8 — / — — 9.6 1.4 5.9 73 4.0 211 6.3 San Francisco, CA 359 2,483 3.1 — / — — 11.5 3.2 7.1 80 5.7 250 6.0 Washington, DC 609 2,738 3.4 5 / 554 1,296 12.1 1.6 8.9 100 7.0 250 3.5 US National Average 10.3 4.7 4.5 54 N/A $ 206 5.9

Senior Housing Triple-net New Supply - Independent Living & CCRC As of and for the quarter ended December 31, 2016, dollars in thousands NEW SUPPLY ANALYSIS HCP Portfolio 5-Mile Radius(1) % of Triple-net Cash NOI Cash NOI Exposed to New Supply(2)(4) Properties/ Units Under Construction(3) 5-Year 75+ Population Growth % 75+ Penetration Rate % Qualified Care Giver % Median Household Income Cash NOI(2) Affordability (in years) 75+ Median Net Worth Unemployment % MSA Units Philadelphia, PA 542 $ 4,709 5.9 — / — $ — 9.7 0.3 14.5 51 4.5 190 7.8 Providence, RI 549 2,192 2.7 — / — — 10.0 2.5 5.3 57 3.3 143 6.1 Denver, CO 236 1,350 1.7 — / — — 19.7 5.7 4.3 51 4.2 160 2.8 Dallas, TX 445 1,073 1.3 — / — — 19.8 2.1 4.5 58 >15 233 5.2 Tucson, AZ 282 887 1.1 — / — — 17.2 5.9 6.1 53 6.9 219 5.5 1,863 6,837 8.4 5 / 667 2,557 12.3 1.9 4.4 52 >15 205 7.0 Remaining % of Total Cash NOI and Interest Income(5) 1.6% (1) Demographic data provided by ESRI for 2016. Construction and supply data provided by NIC for the quarter ended December 31, 2016. Data reflects a 5-mile radius (10-mile for Entrance Fee CCRCs) around each community and is weighted by Cash NOI. See definitions for further discussion. (2) Excludes $6.3 million of Cash NOI related to the independent living component of 64 Brookdale properties held for sale. (3) Represents the number of properties and units with similar care types that are under construction. (4) Represents the Company’s Cash NOI exposed to new construction and expansions. (5) Total Cash NOI and interest income excludes $22.5 million related to 64 Brookdale properties held for sale. 24 Total 5,910 $ 25,496 31.8 7 / 893 $ 5,389 12.9 1.2 11.6 $ 60 8.6 $ 203 6.3 Portland, OR 406 843 1.1 — / — — 11.5 2.8 4.2 52 >15 172 6.0 Sebastian, FL 213 956 1.2 — / — — 12.8 2.2 3.7 45 >15 240 10.2 Jacksonville, FL 317 1,251 1.6 — / — — 14.6 6.3 3.8 51 10.2 181 6.1 Austin, TX 269 1,491 1.9 — / — — 23.2 6.0 4.7 51 3.5 221 3.6 Washington, DC 788 3,907 4.9 2 / 226 2,832 22.7 1.2 13.3 101 >15 250 3.3 US National Average 16.2 6.1 4.5 $ 54 N/A $ 206 5.9

SHOP As of and for the quarter ended December 31, 2016, dollars in thousands, except REVPOR Property Count Cash NOI Occupancy % Investment Units REVPOR Assisted living 92 $ 1,730,968 $ 30,010 9,545 85.9 $ 4,805 CCRC 2 67,306 1,027 486 82.3 3,993 HCP’s Share of Unconsolidated JVs Independent living 3 61,799 442 415 94.9 3,999 23 $ 805,020 $ 15,520 8,109 86.5 $ 4,948 Operator Senior Lifestyle Corp. 7 190,946 3,061 640 84.8 5,517 MBK Senior Living 5 86,377 1,491 640 92.9 4,315 Total 152 $ 3,986,662 $ 71,717 25,407 87.6 $ 4,408 25 Remaining 9 95,502 329 732 82.8 4,028 Atria Senior Living 7 137,792 2,128 1,040 92.1 3,609 Brookdale 124 $ 3,476,045 $ 64,708 22,355 87.4 $ 4,420 Total 152 $ 3,986,662 $ 71,717 25,407 87.6 $ 4,408 CCRC 15 691,408 14,361 7,19385.6 5,015 Assisted living 5 $ 51,813 $ 717 501 93.0 $ 4,634 129 $ 3,181,642 $ 56,197 17,298 88.1 $ 4,148 Independent living 35 1,383,368 25,160 7,267 91.2 3,345 Wholly-Owned

SHOP MSA As of and for the quarter ended December 31, 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 MSA Investment Cash NOI AL IL CCRC Occupancy % AL IL CCRC Houston, TX 376,025 6,001 8.4 87 1,834 450 90.0 5,546 2,442 4,960 Denver, CO 291,448 4,292 6.0 154 715 — 94.7 3,735 4,259 — Chicago, IL 277,140 2,896 4.0 370 948 — 81.6 6,137 3,668 — Baltimore, MD 143,187 2,336 3.3 523 — — 88.6 5,477 — — Dallas, TX 92,107 1,770 2.5 453 257 — 91.5 3,533 2,055 — Providence, RI 88,292 1,658 2.3 191 413 — 85.1 5,147 3,772 — Austin, TX 64,783 1,583 2.2 276 — — 93.6 6,137 — — Riverside, CA 74,760 1,564 2.2 316 183 — 89.8 4,585 3,363 — Punta Gorda, FL 36,668 1,509 2.1 — — 661 81.9 — — 4,912 Phoenix, AZ 41,548 1,204 1.7 — 211 — 92.3 — 3,716 — Total $ 3,986,662 $ 71,717 100.0 10,046 7,682 7,679 87.6 $ 4,795 $ 3,373 $ 4,983 (1) Unit type and REVPOR are based on the majority type within each community. 26 Remaining 1,154,278 19,570 27.3 4,754 1,568 1,704 87.5 4,380 3,388 4,124 San Diego, CA 65,752 1,246 1.7 318 — — 87.7 7,804 — — Richmond, VA 78,256 1,555 2.2 303 — — 90.7 4,995 — — Philadelphia, PA 62,595 1,575 2.2 — — 435 93.6 — — 5,172 Los Angeles, CA 62,716 1,597 2.2 445 — — 92.0 5,897 — — Jacksonville, FL 90,423 1,677 2.3 — — 538 80.5 — — 6,851 Orlando, FL 108,679 2,306 3.2 232 —1,010 77.7 4,083 —5,472 Sarasota, FL 148,850 2,433 3.4 259 164 745 79.1 4,030 4,771 4,643 Washington, DC 153,962 2,944 4.1 541 — — 89.4 5,909 — — Miami, FL 256,883 4,301 6.0 642 963 —91.3 3,991 3,828 — Tampa, FL$ 318,310 $ 7,700 10.7 182 426 2,136 91.1 $ 3,897 $ 3,666 $ 5,111

SHOP Trend Dollars in thousands, except REVPOR, includes HCP’s pro rata share of unconsolidated JVs TOTAL OPERATING PORTFOLIO 4Q15 1Q16 2Q16 3Q16 4Q16 Investment $ 3,492,143 $ 3,542,464 $ 3,539,673 $ 3,831,503 $ 3,986,662 Occupancy % 87.4 88.0 87.3 87.9 87.6 NOI: Operating expenses (151,084) (156,091) (157,917) (163,965) (171,468) Cash NOI: $ 63,781 $ 66,981 $ 64,676 $ 62,355 $ 71,717 27 Cash NOI Margin %29.7 30.0 29.1 27.6 29.5 Non-refundable cash Entrance Fees$ 7,426 $ 5,032 $ 5,537 $ 4,608 $ 4,900 $ 56,355 $ 61,949 $ 59,139 $ 57,747 $ 66,817 Total revenues $ 207,439 $ 218,040 $ 217,056 $ 221,712 $ 238,285 REVPOR$ 4,214 $ 4,349 $ 4,361 $ 4,376 $ 4,408 Units 23,320 23,430 23,237 24,440 25,407 Property count 130 131 130 143 152

SHOP Same Property Portfolio(1) Dollars in thousands, except REVPOR, includes HCP’s pro rata share of unconsolidated JVs SAME PROPERTY PORTFOLIO TREND 4Q15 1Q16 2Q16 3Q16 4Q16 Investment $ 3,287,486 $ 3,315,157 $ 3,335,311 $ 3,366,920 $ 3,390,255 Occupancy % 87.5 88.0 87.4 87.7 87.5 NOI and Cash NOI: Operating expenses (144,080) (147,063) (147,246) (150,989) (146,730) NOI Margin % 26.9 28.1 27.2 25.5 27.9 SAME PROPERTY PORTFOLIO CASH NOI BY TYPE(2) Year-Over-Year Three-Month SPP Growth 4Q15 1Q16 2Q16 3Q16 4Q16 Independent living 22,523 25,115 24,578 23,728 24,790 10.1% $ 53,014 $ 57,497 $ 55,132 $ 51,811 $ 56,771 7.1% (1) Excludes non-refundable cash Entrance Fees and related activity such as deferred expenses, reserves and management fees related to Entrance Fees. (2) Types are based on majority care type. 28 CCRC 5,882 7,108 6,177 5,493 7,484 27.2% Assisted living $ 24,609 $ 25,274 $ 24,377 $ 22,590 $ 24,497 (0.5%) Year-Over-Year Three-Month SPP Growth 7.1% $ 53,014 $ 57,497 $ 55,132 $ 51,811 $ 56,771 Total revenues $ 197,094 $ 204,560 $ 202,378 $ 202,800 $ 203,501 REVPOR$ 4,273 $ 4,400 $ 4,382 $ 4,372 $ 4,409 Units 21,769 21,817 21,770 21,769 21,788 Property count 119 119 119 119 119

SHOP New Supply - Assisted Living As of and for the quarter ended December 31, 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 % 2016-2021 Properties/ Units Under Construction(2) 75+ Penetration Rate % Qualified Care Giver % Median Household Income 75+ Median Net Worth Affordability (in years) Unemployment % MSA Units Cash NOI Washington, DC 541 $ 2,944 4.1 2 / 154 $ 923 12.0 2.7 8.4 99 11.6 250 3.2 Los Angeles, CA 445 1,597 2.2 1 / 201 595 17.2 4.0 7.8 92 9.7 250 5.3 Richmond, VA 303 1,555 2.2 3 / 183 1,555 6.5 14.9 7.8 79 >15 243 3.5 San Diego, CA 318 1,246 1.7 2 / 128 1,246 10.8 4.9 7.8 99 5.7 250 4.8 Sacramento, CA 189 1,039 1.4 — / — — 10.4 8.7 5.6 69 11.8 244 7.4 Ventura, CA 159 881 1.2 1 / 130 881 11.7 5.7 8.9 97 4.9 250 5.0 Boston, MA 227 793 1.1 1 / 90 328 4.9 2.4 8.2 79 9.8 207 5.9 Providence, RI 191 760 1.1 1 / 58 420 1.8 4.5 4.7 53 4.2 143 6.3 Tampa, FL 182 651 0.9 — / — — 8.4 6.0 4.6 47 11.1 182 5.6 Sarasota, FL 259 607 0.8 3 / 202 607 11.3 4.5 3.5 49 >15 248 6.0 Remaining 4,474 7,682 10.8 14 / 1,337 1,507 9.4 4.0 3.9 49 10.8 202 5.5 % of Total Cash NOI and Interest Income(4) 2.9% (1) Demographic data provided by ESRI for 2016. Construction and supply data provided by NIC for the quarter ended December 31, 2016. Data reflects a 5-mile radius around each community and is weighted by Cash NOI. See definitions for further discussion. (2) Represents the number of properties and units with similar care types that are under construction. (3) Represents the Company’s Cash NOI exposed to new construction and expansions. (4) Total Cash NOI and interest income excludes $22.5 million related to 64 Brookdale properties held for sale. 29 Total 10,046 $ 30,726 43.0 33 / 3,064 $ 9,803 9.4 4.5 6.0 $ 68 9.9 $ 223 5.1 Houston, TX 87 594 0.8 — / — — 24.2 5.7 7.2 81 12.3 250 4.2 Albuquerque, NM 180 625 0.9 1 / 1201232.9 1.7 3.2 39 10.0 187 7.9 Cincinnati, OH 341 714 1.0 — / — — 4.7 4.7 4.3 53 10.1 202 5.6 Orlando, FL 232 763 1.1 1 / 89 49 10.2 7.9 4.5 52 >15 210 5.9 Riverside, CA 316 793 1.1 — / — — 13.3 5.5 5.3 67 14.8 233 7.2 New York, NY 120 971 1.4 — / — — 4.3 1.7 6.3 68 7.8 250 4.1 Memphis, TN 230 1,112 1.6 — / — — 11.3 4.8 6.8 67 14.5 250 5.2 Dallas, TX 453 1,480 2.1 2 / 166 699 14.3 4.8 6.0 65 >15 231 4.3 Austin, TX 276 1,583 2.2 1 / 206 870 14.3 8.4 5.6 56 5.9 211 3.7 Baltimore, MD 523 2,336 3.3 — / — — 4.8 3.2 5.8 70 8.1 221 6.0 US National Average 10.3 4.7 4.5 $ 54 N/A $ 206 5.9

SHOP New Supply - Independent Living & CCRC As of and for the quarter ended December 31, 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 Growth % 2016-2021 Properties/ Units Under Construction(2) 75+ Penetration Rate % Qualified Care Giver % Median Household Income 75+ Median Net Worth Affordability (in years) Unemployment % MSA Units Cash NOI Tampa, FL 2,562 $ 7,049 9.8 — / — $ — 14.5 3.6 13.5 49 8.3 209 5.7 Miami, FL 963 3,828 5.3 1 / 320 446 16.4 2.5 3.5 50 >15 222 8.4 Chicago, IL 948 2,859 4.0 1 / 206 1,228 12.3 4.7 7.7 83 >15 242 6.0 Jacksonville, FL 538 1,660 2.3 — / — — 18.1 8.4 14.7 54 5.1 237 5.8 Orlando, FL 1,010 1,542 2.2 — / — — 42.8 3.5 13.6 45 7.9 250 7.1 Remaining 4,336 10,021 13.9 — / — — 12.8 5.3 6.8 55 >15 216 5.9 % of Total Cash NOI and Interest Income(4) 1.4% (1) Demographic data provided by ESRI for 2016. Construction and supply data provided by NIC for the quarter ended December 31, 2016. Data reflects a 5-mile radius (10-mile for Entrance Fee CCRCs) around each community and is weighted by Cash NOI. See definitions for further discussion. (2) Represents the number of properties and units with similar care types that are under construction. (3) Represents the Company’s Cash NOI exposed to new construction and expansions. (4) Total Cash NOI and interest income excludes $22.5 million related to 64 Brookdale properties held for sale. 30 Total 15,361 $40,991 57.0 5 / 1,066 $ 4,557 17.0 5.1 8.4 $ 58 >15 $ 229 5.5 Punta Gorda, FL 661 1,509 2.1 — / — — 22.0 7.3 14.6 49 9.4 250 7.7 Philadelphia, PA 435 1,575 2.2 — / — — 19.9 8.8 16.2 101 12.1 250 4.2 Sarasota, FL 909 1,826 2.5 — / — — 16.8 5.9 8.6 48 11.1 250 5.5 Denver, CO 715 3,715 5.2 1 / 141 554 16.7 5.8 4.8 55 14.1 233 2.9 Houston, TX 2,284 5,407 7.5 2 / 399 2,329 24.3 8.5 7.0 72 >15 249 4.7 US National Average 16.2 6.1 4.5 $ 54 N/A $ 206 5.9

Life Science As of and for the quarter ended December 31, 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 81 2,658,817 $ 50,746 4,507 97.9 $ Remaining(1) 8 152,075 4,585 512 100.0 HCP’s Share of Unconsolidated JVs San Diego, CA 2 46,526 754 131 91.8 Total 120 $ 3,640,915 $ 69,340 7,222 96.3 SAME PROPERTY PORTFOLIO 4Q15 1Q16 2Q16 3Q16 4Q16 Investment $ 3,375,396 $ 3,383,508 $ 3,394,915 $ 3,400,391 $ 3,405,580 Occupancy % 97.8 97.6 98.3 97.2 97.3 Total revenues $ 77,153 $ 76,290 $ 78,831 $ 78,944 $ 79,738 $ 61,270 $ 62,509 $ 63,683 $ 63,461 $ 63,737 Non-cash adjustments to NOI (943) 144 233 615 (489) Year-Over-Year Three-Month SPP Growth 4.8% (1) Cash NOI includes assets held for sale. 31 $ 60,327 $ 62,653 $ 63,916 $ 64,076 $ 63,248 Cash NOI: Operating expenses (15,883) (13,781) (15,148) (15,483) (16,001) NOI: Square feet 6,801 6,801 6,801 6,801 6,800 Property count 111 111 111 111 111 4 $ 87,889 $ 1,524 278 96.1 San Francisco, CA 2 41,363 770 147 100.0 116 $ 3,553,026 $ 67,816 6,944 96.3 San Diego, CA 27 742,134 12,485 1,925 91.6 Wholly-Owned

Life Science As of December 31, 2016, dollars and square feet in thousands, includes HCP’s pro rata share of unconsolidated JVs SELECTED LEASE EXPIRATION DATA (NEXT 5 YEARS) Total San Francisco/San Jose San Diego Remaining 2018 1,262 18 61,837 22 1,168 59,683 58 1,592 36 562 2020 613 9 19,179 7 263 8,567 350 10,612 — — Thereafter 2,962 43 104,779 37 1,637 69,655 849 21,503 476 13,621 TENANT CONCENTRATION ANNUALIZED BASE RENT BY TENANT TYPE University, Government, Research 4% Google 5.6 663 10 24,424 9 AA Public Biotech/Medical Device 47% Office an R&D 13% Rigel Pharmaceuticals 1.1 147 2 15,582 6 — Myriad Genetics 8.4 310 4 7,798 3 — General Atomics 14.5 397 6 6,740 2 — Pharma 19% Private Biotech/Medical Device 17% NuVasive 6.7 145 2 5,364 2 — 4.5 6,953 100 $ 279,426 100 (1) Includes month-to-month and holdover leases. (2) Includes 337,000 square feet and Annualized Base Rent of $20.0 million related to the second tranche of the purchase option exercised by Genentech that is expected to close in July 2018. The first tranche closed in November 2016. 32 Remaining 4.1 3,629 52 124,452 44 Duke University 12.8 166 2 5,823 2 AA+ Takeda 1.2 166 2 7,788 3 A+ Exelexis 0.8 246 4 11,784 4 — Genentech(2) 1.6 400 6 22,141 8 AA Remaining Lease Term in Years Leased Square Feet Annualized Base Rent Credit Rating % of Amount Total % of Amount Total Amgen 5.7 684 10 $ 47,530 17 A 6,953 100 $ 279,426 100 4,558 $ 206,771 1,883 $ 58,472 512 $ 14,183 2021 783 11 44,430 16 778 44,326 5 104 — — 2019 580 8 18,429 7 322 9,408 258 9,021 — — Leased Square Annualized Year Feet %Base Rent % Square Feet Annualized Base Rent Square Feet Annualized Base Rent Square Annualized Feet Base Rent 2017(1) 753 11 $ 30,772 11 390 $ 15,132 363 $ 15,640 —$ —

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 Developments 76 55.80 Renewals, amendments and extensions 203 46.04 34.6 $ 15.50 $ 12.62 75 83.6% Terminations (11) 39.54 Shoreline 2019 Mountain View, CA 33 Leased Square Feet as of December 31, 2016 6,953 $ 40.19 New leases 23 21.92 2.04 7.02 49 Expirations (214) 33.74 Leased Square Feet as of September 30, 2016 6,876 $ 39.56

Medical Office As of and for the quarter ended December 31, 2016, dollars and square feet 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 Houston, TX 475,365 8,220 93.2 1,095 1,255 287 — 1,382 1,255 14 Philadelphia, PA 323,790 5,014 90.0 705 — 436 90 1,141 90 7 Louisville, KY 214,593 4,388 93.0 669 17 447 15 1,116 32 6 Salt Lake City, UT 141,537 3,211 95.8 434 63 154 116 588 179 4 Miami, FL 99,035 2,204 84.2 531 — — 30 531 30 3 Las Vegas, NV 111,210 1,645 82.0 528 — — — 528 — 3 Los Angeles, CA 85,207 1,240 84.1 106 — 174 — 280 — 2 Baltimore, MD 31,271 999 96.8 — 63 38 58 38 121 1 Washington, DC 57,025 977 82.7 55 29 99 — 154 29 1 San Francisco, CA 41,539 757 100.0 — — — 104 — 104 1 $ 3,845,742 $ 69,580 92.1 12,002 2,913 2,584 714 14,586 3,627 100 (1) Includes 6.3 million square feet subject to ground leases with average expirations of 56 years and renewal options generally ranging from 10 to 25 years. (2) Includes facilities that are off-campus, adjacent (within 0.25 miles of a hospital campus) and anchored (50% or more leased by a health system). 34 Remaining 634,082 8,245 95.1 1,604 1,300 266 123 1,870 1,423 17 Sacramento, CA 74,220 858 93.8 — — 29 92 29 92 1 Kansas City, MO 76,548 982 96.9 260 — — 8 260 8 1 San Antonio, TX 68,086 1,227 85.8 353 — — —353 —2 Ogden, UT 67,561 1,248 80.3 321 —13 68 334 68 2 San Diego, CA 108,459 1,801 96.7 —176 155 —155 176 2 Phoenix, AZ 168,162 2,928 87.6 519 —208 —727 —4 Denver, CO 228,226 4,335 89.9 993 — — 10 993 10 6 Nashville, TN 154,411 4,554 96.5 1,288 10 — — 1,288 10 7 Seattle, WA 212,374 6,353 99.4 667 — — —667 —4 MSA Investment NOI % Multi-tenant Single-tenant Multi-tenant Single-tenant Multi-tenant Single-tenant % of Total Dallas, TX$ 473,041 $ 8,394 90.4 1,874 —278 —2,152 —12

Medical Office As of and for the quarter ended December 31, 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(2) % Square Feet Health System On-Campus Off-Campus Total % of Total Community Health Systems, Inc. 4 B 2 1,356 140 — 1,496 8.2 8.5 5.1 Norton Healthcare 100 — 686 343 — 1,029 5.6 3.7 3.7 Providence Health & Services 8 Aa 3 563 — — 563 3.1 1.7 2.8 Iasis Healthcare Corporation 72 B 2 492 — — 492 2.7 1.5 1.4 Non-credit rated 391 240 975 1,606 8.8 % of Total 81.9 12.8 5.3 100.0 LEASING ACTIVITY Leased Square Feet Annualized Base Rent per Sq. Ft. % Change in Rents(3) HCP Tenant Improvements per Sq. Ft. Leasing Costs per Sq. Ft. Average Lease Term (Months) Retention Rate YTD Acquisitions 897 14.70 Expirations (572) 22.87 New leases 147 22.26 27.46 8.30 72 Leased Square Feet as of December 31, 2016 16,769 $ 22.61 (1) Ranked by revenue based on the 2015 Modern Healthcare’s Healthcare Systems Financial Database. (2) Denotes whether the medical office building is adjacent (within 0.25 miles) to a hospital campus or anchored, (50% or more is leased to a health system). (3) For comparative purposes, reflects adjustments for leases that converted to a different lease type upon renewal, amendment or extension of the original lease. 35 Terminations (11) 25.09 Renewals, amendments and extensions 468 23.56 1.4 $ 10.90 $ 4.01 57 78.8% Developments 19 22.78 Leased Square Feet as of September 30, 2016 15,821 $ 22.90 Total Healthcare Affiliated 94.6% Total 14,915 2,323 975 18,213 100.0 41.4 36.9 Remaining - credit rated 1,738 1,214 2,952 16.2 Tenet Healthcare Corporation 5 B2472 53 —525 2.9 0.4 0.3 Jefferson Health 93 A 2 705 — —705 3.9 1.5 1.5 Memorial Hermann Health System 39 A 1 1,360 80 —1,440 7.9 8.3 4.6 HCA Holdings, Inc. 2 B 17,152 253 —7,405 40.7 15.8 17.5

Medical Office As of and for the quarter ended December 31, 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 2018 2,292 14 53,516 14 1,891 44,301 401 9,215 2020 2,144 13 51,569 14 1,914 46,294 230 5,275 Thereafter 6,032 36 120,639 32 4,843 93,446 1,189 27,193 SAME PROPERTY PORTFOLIO 4Q15 1Q16 2Q16 3Q16 4Q16 Investment $ 3,227,737 $ 3,240,320 $ 3,251,215 $ 3,266,471 $ 3,285,186 Occupancy % 92.8 92.0 92.2 92.1 92.3 Total revenues $ 101,109 $ 101,277 $ 102,546 $ 104,158 $ 103,756 $ 64,588 $ 63,810 $ 64,462 $ 64,707 $ 66,101 Non-cash adjustments to NOI (447) (724) (185) 100 (547) Year-Over-Year Three-Month SPP Growth 2.2% (1) Includes month-to-month and holdover leases. 36 $ 64,141 $ 63,086 $ 64,277 $ 64,807 $ 65,554 Cash NOI: Operating expenses (36,521) (37,467) (38,084) (39,451) (37,655) NOI: Square feet 16,139 16,139 16,165 16,165 16,170 Property count 216 216 216 216 216 16,769 100 $ 378,265 100 13,778 $ 309,353 2,991 $ 68,912 2021 1,409 8 35,072 9 1,201 30,187 208 4,885 2019 1,986 12 47,690 13 1,600 38,439 386 9,251 Year Leased Square Annualized Feet %Base Rent % Square Annualized Feet Base Rent Square Annualized Feet Base Rent 2017(1) 2,906 17 $ 69,779 18 2,329 $ 56,686 577 $ 13,093

Other As of and for the quarter ended December 31, 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 Beds Acute care 5 $ 380,188 $ 15,197 1,637 51.9 7.98x 7.46x 15 $ 570,064 $ 20,740 2,333 52.4 6.59x 6.14x Maria Mallaband 25 $ 151,217 $ 2,732 1,143 92.4 1.55x 1.31x 61 $ 369,612 $ 6,830 3,198 92.9 1.56x 1.31x Wholly-owned 1 $ 17,909 $ 316 120 88.4 N/A 5 $ 27,059 $ 692 540 79.1 DEBT INVESTMENTS Weighted Average Maturity in Years Interest Income Investment DSC Yield Tandem Consulate Health Care 256,465 7,670 1.29x 11.9% 1.8 Four Seasons - UK 85,430 483 0.88x 4.8% 3.1 Total Debt Investments $ 876,584 $ 17,510 (1) Certain operators in the Company’s hospital portfolio are not required under their respective leases to provide operational data. 37 Remaining 55,135 1,030 N/A 8.0%3.9 Maria Mallaband - UK 134,424 1,112 N/A 7.1% 6.8 HC-One - UK$ 345,130 $ 7,215 2.37x 8.3% 2.9 Total Leased Properties 81 $ 966,735 $ 28,262 HCP’s share of unconsolidated JVs 4 9,150 376 420 76.5 N/A N/A Post-acute/skilled HC-One 36 218,395 4,098 2,055 93.2 1.56x 1.31x United Kingdom Remaining 10 189,876 5,543 696 52.8 3.11x 2.82x Hospitals

Other Same Property Portfolio As of and for the quarter ended December 31, 2016, dollars in thousands HOSPITALS 4Q15 1Q16 2Q16 3Q16 4Q16 Investment $ 570,105 $ 570,105 $ 570,105 $ 570,062 $ 570,064 Occupancy %(1) 55.2 53.8 59.5 55.3 52.4 EBITDAR CFC 5.98x 6.10x 6.25x 6.27x 6.14x Total revenues $ 21,542 $ 22,381 $ 21,503 $ 22,288 $ 22,339 $ 20,491 $ 21,194 $ 20,500 $ 21,098 $ 21,115 Non-cash adjustments to NOI 296 303 582 (348) (340) Year-Over-Year Three-Month SPP Growth (0.1%) UNITED KINGDOM 4Q15 1Q16 2Q16 3Q16 4Q16 Investment $ 432,401 $ 421,960 $ 399,181 $ 387,573 $ 369,612 Occupancy % 91.9 92.1 92.6 92.6 92.6 EBITDAR CFC 1.27x 1.27x 1.25x 1.30x 1.31x Total revenues $ 9,097 $ 8,580 $ 8,678 $ 7,969 $ 7,583 $ 7,444 $ 7,444 $ 7,505 $ 7,534 $ 7,583 Non-cash adjustments to NOI (1,056) (995) (921) (792) (753) (1) Certain operators in the Company’s hospital portfolio are not required under their respective leases to provide operational data. $ 6,579 $ 6,580 $ 6,709 $ 6,785 $ 6,830 38 Year-Over-Year Three-Month SPP Growth 3.8% FX adjustment 191 131 125 43 — Cash NOI: FX adjustment(1,653) (1,136) (1,173) (435) — NOI: EBITDARM CFC 1.51x 1.52x 1.49x 1.55x 1.56x Beds 3,029 3,022 3,022 3,020 3,031 Property count 61 61 61 61 61 $ 20,787 $ 21,497 $ 21,082 $ 20,750 $ 20,775 Cash NOI: Operating expenses (1,051) (1,187) (1,003) (1,190) (1,224) NOI: EBITDARM CFC 6.40x 6.53x 6.69x 6.72x 6.59x Beds 2,190 2,210 2,210 2,333 2,333 Property count 15 15 15 15 15

Other Same Property Portfolio As of and for the quarter ended December 31, 2016, dollars in thousands, includes HCP’s pro rata share of unconsolidated JVs TOTAL OTHER(1) 4Q15 1Q16 2Q16 3Q16 4Q16 Investment $1,002,505 $1,001,215 $ 978,436 $ 966,785 $ 948,827 Total revenues $ 31,047 $ 31,369 $ 30,588 $ 30,666 $ 30,316 FX adjustment (1,653) (1,136) (1,173) (435) — Cash NOI: FX adjustment 191 131 125 43 — Year-Over-Year Three-Month SPP Growth 0.8% (1) Includes four domestic post-acute/skilled properties. 39 $ 27,754 $ 28,482 $ 28,191 $ 27,925 $ 27,982 Non-cash adjustments to NOI (761) (692) (339) (1,139) (1,093) $ 28,324 $ 29,043 $ 28,405 $ 29,021 $ 29,075 Operating expenses (1,070) (1,190) (1,010) (1,210) (1,241) NOI: Property count 80 80 80 80 80

Unconsolidated Joint Ventures As of and for the quarter ended December 31, 2016, dollars and square feet in thousands Senior Housing Operating Medical Office Life Science Total CCRC Non-CCRC Other Joint ventures’ Investment $ 1,802,721 $ 1,411,037 $ 209,793 $ 14,624 $ 155,829 $ 11,438 HCP’s net equity investment(1) 348,308 228,063 46,395 4,629 67,879 1,342 Capacity — 7,193 Units 916 Units 103 Sq. Ft. 278 Sq. Ft. 420 Beds SELECTED FINANCIAL DATA Operating expenses (85,542) (79,134) (5,392) (214) (780) (22) Depreciation and amortization (25,545) (22,789) (1,727) (174) (769) (86) Interest expense and other (3,484) (2,240) (1,126) — — (118) (1) Excludes $211 million related to debt funded by HCP, assets held for sale and land held for development. (2) Includes $5.7 million of non-refundable Entrance Fee amortization. Non-refundable Entrance Fees are recognized on a NOI/FFO basis over the estimated stay of the residents and are recognized on a cash/ FAD basis upon receipt, net of a reserve for early terminations. See Entrance Fees in Definitions. (3) Includes $36.5 million related to a gain on a senior housing facility sold in November 2016, $5.0 million related to a gain on three medical office buildings sold in October 2016 and operating activity for two additional assets held for sale as of December 31, 2016. (4) HCP’s pro rata share excludes activity related to debt fundings by HCP. Net income (loss) $ 38,230 $ (5,717) $ 36,271 $ 5,667 $ 1,743 $ 266 Gain on sales of real estate, net of income taxes (41,546) — (36,535) (5,011) — — Non-refundable Entrance Fee sales, net(2) 15,457 15,457 — — — — (5,461) (5,461) — — — — Non-cash adjustments to NOI (43) — — (8) (35) — Leasing costs and tenant and capital improvements (2,099) (1,340) (398) (278) (83) — HCP’S PRO-RATA SHARE NOI 12,887 9,463 1,157 349 1,542 376 Net income (loss)(4) 15,388 (2,026) 14,259 1,795 1,053 307 40 FAD(4) 15,502 13,109 351 244 1,422 376 FFO(4)11,967 9,140 553 416 1,482 376 Cash NOI 17,764 14,362 1,158 344 1,524 376 Mortgage debt(4) $ 166,496 $ 102,206 $ 64,290 $ —$ —$ — FAD $ 29,475 $ 25,171 $ 1,032 $ 526 $ 2,394 $ 352 Non-cash adjustments to net income (645) (557) (33) (55) — — Non-refundable Entrance Fee amortization and deferred expenses(2) FFO$ 22,266 $ 17,072 $ 1,463 $ 867 $ 2,512 $ 352 Depreciation and amortization 25,582 22,789 1,727 211 769 86 Income from discontinued operations(3)41,868 —36,535 5,333 — — General and administrative expenses (119) — — (13) (106) — NOI $ 25,510 $ 19,312 $ 2,589 $ 521 $ 2,618 $ 470 Total revenues(2) $ 111,052 $ 98,446 $ 7,981 $ 735 $ 3,398 $ 492 Occupancy %—85.6 93.7 100 96.1 76.5 Property count 32 15 8 1 4 4 Joint ventures’ mortgage debt 758,597 636,829 117,497 — — 4,271 HCP’s ownership percentage 49%45% - 85%20% - 67%50% - 63%80%

2017 Guidance Projected full year 2017, dollars in millions, except per share amounts and net dispositions 2017 Guidance (February 13, 2017) 2017 Outlook (November 1, 2016) Net Income, FFO and FFO as Adjusted per Share Guidance Diluted FFO per common share $1.88 - $1.94 $1.88 - $1.94 Annualized dividend per share $1.48 $1.48 Year-Over-Year SPP Cash NOI Guidance Senior housing operating portfolio(2) 2.0% - 3.0% 4.0% - 5.0% Medical office 2.0% - 3.0% 2.0% - 3.0% Total 2.5% - 3.5% 2.5% - 3.5% Year-Over-Year SPP NOI Guidance 1.2% - 2.2% 1.5% - 2.5% Other Supplemental Information - Cash Addition (Reduction) (1) 2017 Guidance includes gain related to the sale of a 40% interest in the RIDEA II JV that occurred in January 2017 and gains resulting from changes in our disposition assumptions, which were not incorporated in 2017 Outlook. (2) The 2016 SHOP SPP Cash NOI growth rate was favorably impacted by 240 basis points due to year-end true-ups of group purchase rebates. The higher 2016 jumping-off point from these rebates contributed to a 200 basis point lower 2017 SHOP SPP Cash NOI growth rate versus what was provided in our November 1st preliminary Outlook. However, of note, the 2017 contribution from SHOP SPP Cash NOI is in line with our November 1st preliminary Outlook. (3) 2017 Guidance includes leasing costs and tenant and capital improvements of $11 - $13 million related to HCP’s share of unconsolidated JVs. (4) 2017 Guidance excludes $22 - $27 million of revenue enhancing and $10 - $15 million of Development and Redevelopment related to HCP’s share of unconsolidated JVs. (5) Includes $1.125 billion related to 64 Brookdale communities that are held for sale at December 31, 2016 and $480 million related to the sale of a 40% interest in and refinancing of the RIDEA II JV that occurred in January 2017, proceeds from which will be used to pay down debt. Amortization of deferred financing costs $14 - $16 $14 - $16 Other depreciation and amortization ($9) - ($11) ($9) - ($11) Joint venture adjustments - CCRC Entrance Fees $32 - $35 $33 - $36 1st generation tenant improvements (“TIs”) / ICE $43 - $48 $38 - $43 Development and Redevelopment $335 - $385 $315 - $325 Other Items Interest expense $310 - $320 $305 - $315 41 Net dispositions(5) $1.7B - $2.2B @ 7.8%$1.2B - $1.7B @ 8% General and administrative $83 - $87 $83 - $87 Revenue enhancing $47 - $52 $42 - $47 Capital Expenditures(4) Joint venture and other adjustments(3) ($34) - ($37) ($35) - ($38) Leasing costs and tenant and capital improvements ($97) - ($102) ($92) - ($97) Straight-line rents ($10) - ($14) ($12) - ($16) Amortization of deferred compensation$16 - $18 $16 - $18 Other 0.75% - 1.75% 0.75% - 1.75% Life science 2.5% - 3.5%1.7% - 2.7% Senior housing triple-net3.9% - 4.9%3.25% - 4.25% Diluted FFO as adjusted per common share $1.89 - $1.95 $1.89 - $1.95 Diluted earnings per common share(1)$1.32 - $1.38 $1.07 - $1.13

REP OR TING 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 applicable. The Company’s various debt agreements contain covenants that require the Company to maintain ratios similar to Adjusted Fixed Charge Coverage, and credit rating agencies utilize similar ratios in evaluating and determining the credit rating on certain debt instruments of the Company. Adjusted Fixed Charge Coverage is subject to the same limitations and qualifications as Adjusted EBITDA and Fixed Charges. Affordability (in years) Affordability represents the number of years an individual can support the cost of residing in a senior housing facility. Affordability is calculated using the median net worth for individuals ages 75 and older, divided by the annualized revenue per occupied room (REVPOR), less the median income for individuals ages 75 and older. Markets with median income in excess of REVPOR reflect an Affordability metric of greater than (>) 15 years. Annualized Base Rent The most recent month’s (or subsequent month’s if acquired in the most recent month) base rent including additional rent floors, cash income from DFLs and/or interest income annualized for 12 months. Annualized Base Rent includes the Company’s share of unconsolidated JVs calculated on the same basis and excludes properties in the Company’s senior housing operating portfolio and properties sold or held for sale during the quarter. Further, Annualized Base Rent does not include tenant recoveries, additional rents in excess of floors and non-cash revenue adjustments (i.e., straight-line rents, amortization of market lease intangibles, DFL non-cash interest and deferred revenues). The Company uses Annualized Base Rent for the purpose of determining Lease Expirations and Debt Investment Maturities. Cash Flow Coverage (“CFC”)* Facility EBITDAR or Facility EBITDARM divided by the aggregate of base rent and any additional rent due to the Company for the trailing 12-month period one quarter in arrears from the period presented. CFC is a supplemental measure of a property’s ability to generate cash flows for the operator/tenant (not the Company) to meet the operator’s/tenant’s related rent and other obligations to the Company. However, CFC is subject to the same limitations and qualifications as Facility EBITDAR or Facility EBITDARM. CFC is not presented for: (i) properties operated under a RIDEA structure; or (ii) newly completed facilities under lease-up, facilities acquired or transitioned to new operators during the relevant trailing 12-month period, vacant facilities and facilities for which data is not available or meaningful. Comparable FFO as Adjusted* FFO as adjusted excluding FFO as adjusted from QCP and interest expense related to debt repaid using proceeds from the spin-off, assuming these transactions occurred at the beginning of the period presented. Comparable FFO as adjusted allows management to evaluate the performance of our remaining real estate portfolio following the completion of the spin-off of QCP. Consolidated Debt The carrying amount of bank line of credit and term loans (if applicable), senior unsecured notes, mortgage debt and other debt, as reported in the Company’s consolidated financial statements. Consolidated Gross Assets* The carrying amount of total assets, excluding investments in and advances to the Company’s unconsolidated JVs, after adding back accumulated depreciation and amortization, as reported in the Company’s consolidated financial statements. Consolidated Gross Assets is a supplemental measure of the Company’s financial position, which, when used in conjunction with debt-related measures, enables both management and investors to analyze its leverage and to compare its leverage to that of other companies. Consolidated Secured Debt Mortgage and other debt secured by real estate, as reported in the Company’s consolidated financial statements. Continuing Care Retirement Community (“CCRC”) A senior housing facility which provides at least three levels of care (i.e., independent living, assisted living and skilled nursing). Debt Investments Loans secured by a direct interest in real estate and mezzanine loans. Debt Service The periodic payment of interest expense and principal amortization on secured loans. Debt Service Coverage (“DSC”)* Facility EBITDA divided by Debt Service. DSC is a supplemental measure of the borrower’s ability to generate sufficient liquidity to meet its obligations to the Company under the respective loan agreements. DSC is subject to the same limitations and qualifications as Facility EBITDA. Development Includes ground-up construction. Newly completed redevelopments, are considered Stabilized at the earlier of lease-up (typically when the tenant(s) controls the physical use of 80% of the space) or 24 months from the date the property is placed in service. Direct Financing Lease (“DFL”) Lease for which future minimum lease payments are recorded as a receivable, and the difference between the future minimum lease payments and the estimated residual values less the cost of the properties is recorded as unearned income. Unearned income is deferred and amortized to income over the lease terms to provide a constant yield. EBITDA and Adjusted EBITDA* Earnings before interest, taxes, depreciation and amortization for the Company. Adjusted EBITDA is defined as EBITDA excluding impairments (recoveries), gains or losses from real estate dispositions, transaction-related items, loss on debt extinguishments, severance-related charges, litigation provision, gain upon consolidation of JV and foreign currency exchange gains (losses). The Company considers EBITDA and Adjusted EBITDA important supplemental measures to net income (loss) because they provide an additional manner in which to evaluate the Company’s operating performance. Net income (loss) is the most directly comparable GAAP measure to EBITDA and Adjusted EBITDA. 42

REP OR TING Definitions Entrance Fees Certain of the Company’s communities have residency agreements which require the resident to pay an upfront entrance fee prior to taking occupancy at the community. For NOI, net income and FFO, the non-refundable portion of the entrance fee is recorded as deferred entrance fee revenue and amortized over the estimated stay of the resident based on an actuarial valuation. For Cash NOI and FAD, the non-refundable entrance fees are recognized upon receipt, net of a reserve for statutory refunds due to early terminations. The refundable portion of a resident’s entrance fee is generally refundable within a certain number of months or days following contract termination or upon the sale of the unit. All refundable amounts due to residents at any time in the future are classified as current liabilities. 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 to the scope of the project has been or will be substantially completed. Facility EBITDA* EBITDA for a particular facility (not the Company), for the trailing 12 months and one quarter in arrears from the date reported. The Company uses Facility EBITDA in determining Debt Service Coverage. Facility EBITDA is subject to the same limitations as EBITDA. In addition, Facility EBITDA does not represent a borrower’s net income or cash flow from operations and should not be considered an alternative to those indicators. The Company receives periodic financial information from most borrowers regarding the performance under the loan agreement. The Company utilizes Facility EBITDA as a supplemental measure of the borrower’s ability to generate sufficient liquidity to meet their obligations to the Company. Facility EBITDA includes a management fee as specified in the borrower loan agreements with the Company. All borrower financial performance data was derived solely from information provided by borrowers without independent verification by the Company. Facility EBITDAR and Facility EBITDARM* Earnings before interest, taxes, depreciation, amortization and rent (and management fees), as applicable, for a particular facility accruing to the operator/tenant of the property (the Company as lessor), for the trailing 12 months and one quarter in arrears from the date reported. The Company uses Facility EBITDAR or Facility EBITDARM in determining CFC and as a supplemental measure of the ability of the property to generate sufficient liquidity to meet related obligations to the Company. Facility EBITDAR includes: (i) contractual management fees; (ii) an imputed management fee of 5% of revenues for senior housing facilities and post-acute/skilled facilities, or (iii) an imputed management fee of 2% of revenues for hospitals. All facility financial performance data was derived solely from information provided by operators/tenants without independent verification by the Company. Facility EBITDAR and Facility EBITDARM are subject to the same limitations and qualifications as Facility EBITDA. Facility EBITDAR and Facility EBITDARM are not presented for: (i) properties operated under a RIDEA structure; or (ii) newly completed facilities under lease-up, facilities acquired or transitioned to new operators during the relevant trailing 12-month period, vacant facilities and facilities for which data is not available or meaningful. Financial Leverage* Total Debt divided by Total Gross Assets. Financial Leverage is a supplemental measure of the Company’s financial position, which enables both management and investors to analyze its leverage and to compare its leverage to that of other companies. The ratio of Consolidated Debt to Consolidated Gross Assets is the most directly comparable GAAP measure to Financial Leverage. The Company’s pro rata share of total debt from the Company’s unconsolidated JVs is not intended to reflect its actual liability or ability to access assets should there be a default under any or all such loans or a liquidation of the JVs. Fixed Charges* Total interest expense plus capitalized interest plus preferred stock dividends (if applicable). Fixed Charges is a supplemental measure of the Company’s interest payments on outstanding debt and dividends to preferred stockholders for purposes of presenting Fixed Charge Coverage and Adjusted Fixed Charge Coverage. Fixed Charges is subject to limitations and qualifications, as, among other things, it does not include all contractual obligations. Funds Available for Distribution (“FAD”)* See the “Funds Available for Distribution” section of the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) on February 13, 2017, for information regarding FAD. Funds From Operations (“FFO”) and FFO as Adjusted* See the “Funds From Operations” section of the Company’s Annual Report on Form 10-K filed with the SEC on February 13, 2017, for information regarding FFO and FFO as adjusted. Healthcare System Affiliated Represents properties that are on-campus or adjacent to a healthcare system and properties that are leased 50% or more to a healthcare system. Initial Capital Expenditures (“ICE”) Expenditures required to bring a newly acquired property up to standard. The expenditures are typically identified during underwriting and incurred within the first year of ownership. Investment* Represents: (i) the carrying amount of real estate assets and intangibles, after adding back accumulated depreciation and amortization less the value attributable to refundable Entrance Fee liabilities; and (ii) the carrying amount of DFLs and Debt Investments. Investment excludes land held for development and assets held for sale. Investment also includes the Company’s pro rata share of the real estate assets and intangibles held in the Company’s unconsolidated JVs, presented on the same basis. Metropolitan Statistical Areas (“MSA”) Metropolitan Statistical Areas are geographic entities delineated by the Office of Management and Budget for use by Federal Statistical agencies in collecting, tabulating, and publishing Federal statistics. A metro area contains a core urban area of 50,000 or more population, consists of one or more counties and includes the counties containing the core urban area, as well as any adjacent counties that have a high degree of social and economic integration (as measured by commuting to work) with the urban core. 43

REP OR TING Definitions Net Debt* Total Debt less the carrying amount of cash and cash equivalents as reported in the Company’s consolidated financial statements and the Company’s pro rata share of cash and cash equivalents from the Company’s unconsolidated JVs. Total Debt is the most directly comparable GAAP measure to Net Debt. Net Debt is a supplemental measure of the Company’s financial position, which enables both management and investors to analyze its leverage and to compare its leverage to that of other companies. Net Debt to Adjusted EBITDA* Net Debt divided by Adjusted EBITDA is a supplemental measure of the Company’s ability to decrease its debt. Because the Company may not be able to use its cash to reduce its debt on a dollar-for-dollar basis, this measure may have material limitations. Redevelopment Properties that require significant capital expenditures (generally more than 25% of acquisition costs or existing basis) to achieve stabilization or to change the use of the properties. Newly completed redevelopments, are considered Stabilized at the earlier of lease-up (typically when the tenant(s) controls the physical use of 80% of the space) or 24 months from the date the property is placed in service. Rental and Operating Revenue Includes rental related revenues, tenant recoveries, resident fees and services and income from Direct Financing Leases. Retention Rate The ratio of total renewed square feet to the total square feet expiring and available for lease, excluding the square feet for tenant leases terminated for default or buy-out prior to the expiration of the lease. REVPOR The three-month average revenue per occupied room for the most recent calendar quarter available. REVPOR cannot be derived from the information presented for the SHOP portfolio as units reflect 100% of the unit capacities for unconsolidated JVs and revenue is at the Company’s pro rata share. Net Operating Income from Continuing Operations (“NOI”) and Cash NOI* See the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” – “Results of Operations” – “Non-GAAP Financial Measures” section of the Company’s Annual Report on Form 10-K filed with the SEC on February 13, 2017, for information regarding NOI and Cash NOI. 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-net facilities, post-acute/ skilled facilities and hospitals, Occupancy represents the facilities’ average operating Occupancy for the trailing three-month period ended one quarter in arrears from the date reported. For properties in the Company’s senior housing operating portfolio, Occupancy represents the facilities’ average operating Occupancy for the most recent calendar quarter available. The percentages are calculated based on units for senior housing facilities and available beds for post-acute/skilled facilities and hospitals. The percentages shown exclude newly completed facilities under lease-up, facilities acquired or transitioned to new operators during the relevant period, vacant facilities and facilities for which data is not available or meaningful. All facility financial performance data was derived solely from information provided by operators/tenants and borrowers without independent verification by the Company. Penetration Rate Reflects the number of available senior housing units by majority type as a percentage of households with seniors age 75 and older. This measurement is an indicator of market demand for new development and expansion projects. Pooled Leases Two or more leases to the same operator/tenant or their subsidiaries under which their obligations are combined by virtue of cross default protection, a pooling agreement or multiple pooling agreements, or cross-guaranties. Qualified Care Giver Qualified Care Giver represents a household consisting of individuals between 45 and 64 years of age with income of $100,000 or more. Qualified Care Giver % is the ratio of Qualified Care Givers to the total population, which provides an indication of senior housing demand due to the role adult children have in the senior housing selection process. RIDEA A structure whereby a taxable REIT subsidiary is permitted to rent a healthcare facility from its parent REIT and hire an independent contractor to operate the facility. Same Property Portfolio (“SPP”)* SPP NOI and Cash NOI information allows the Company to evaluate the performance of its property portfolio under a consistent population by eliminating changes in the composition of its portfolio of properties. The Company includes properties from its consolidated portfolio, as well as properties owned by the Company’s unconsolidated JVs in its SPP NOI and adjusted NOI. The Company identifies its SPP as Stabilized properties that remained in operations and were consistently reported as leased properties or RIDEA properties for the duration of the year-over-year comparison periods presented, excluding assets held for sale. Accordingly, it takes a Stabilized property a minimum of 12 months in operations under a consistent reporting structure to be included in the Company’s SPP. Newly acquired operating assets are generally considered Stabilized at the earlier of lease-up (typically when the tenant(s) control(s) the physical use of at least 80% of the space) or 12 months from the acquisition date. Newly completed developments and redevelopments are considered Stabilized at the earlier of lease-up or 24 months from the date the property is placed in service. SPP excludes (i) certain non-property specific operating expenses that are allocated to each operating segment on a consolidated basis and (ii) Entrance Fees and related activity such as deferred expenses, reserves and management fees related to Entrance Fees. A property is removed from the Company’s SPP when it is sold, placed into redevelopment or changes its reporting structure. 44

REP OR TING Definitions Secured Debt Ratio* Total Secured Debt divided by Total Gross Assets. Secured Debt Ratio is a supplemental measure of the Company’s financial position, which enables both management and investors to analyze its leverage and to compare its leverage to that of other companies. The ratio of Consolidated Secured Debt to Consolidated Gross Assets is the most directly comparable GAAP measure to Secured Debt Ratio. The Company’s pro rata share of Total Secured Debt from the Company’s unconsolidated JVs is not intended to reflect its actual liability or ability to access assets should there be a default under any or all such loans or a liquidation of the JVs. Square Feet (Sq. Ft.) The square footage for properties, excluding square footage for development or redevelopment properties prior to completion. Stabilized / Stabilization Newly acquired operating assets are generally considered Stabilized at the earlier of lease-up (typically when the tenant(s) control(s) the physical use of at least 80% of the space) or 12 months from the acquisition date. Newly completed developments and redevelopments are considered Stabilized at the earlier of lease-up or 24 months from the date the property is placed in service. Properties that experience a change in reporting structure, such as a transition from a triple-net lease to a RIDEA reporting structure, are considered stabilized after 12 months in operations under a consistent reporting structure. Total Debt* Consolidated Debt plus the Company’s pro rata share of total debt from the Company’s unconsolidated JVs. Total Debt is a supplemental measure of the Company’s financial position, which enables both management and investors to analyze its leverage and to compare its leverage to that of other companies. Total Gross Assets* Consolidated Gross Assets plus the Company’s pro rata share of total assets from the Company’s unconsolidated JVs, after adding back accumulated depreciation and amortization. Total Gross Assets is a supplemental measure of the Company’s financial position, which, when used in conjunction with debt-related measures, enables both management and investors to analyze its leverage and to compare its leverage to that of other companies. Total Rental and Operating Revenue* Includes rental related revenues, tenant recoveries, resident fees and services and income from Direct Financing Leases. Total rental and operating revenue includes the Company’s pro rata share from unconsolidated JVs. Total Market Equity The total number of outstanding shares of the Company’s common stock multiplied by the closing price per share of its common stock on the New York Stock Exchange as of period end, plus the total number of convertible partnership units multiplied by the closing price per share of its common stock on the New York Stock Exchange as of period end (adjusted for stock splits). Total Secured Debt* Consolidated Secured Debt plus the Company’s pro rata share of mortgage debt from the Company’s unconsolidated JVs. Total Secured Debt is a supplemental measure of the Company’s financial position, which enables both management and investors to analyze its leverage and to compare its leverage to that of other companies. Units/Square Feet/Beds Senior housing facilities are measured in available units (e.g., studio, one or two bedroom units). Life science facilities and medical office buildings are measured in square feet. Post-acute/skilled facilities and hospitals are measured in available beds. * Non-GAAP Supplemental Measures The Company believes that net income, as defined by U.S. generally accepted accounting principles (“GAAP”), is the most appropriate measure of its operating performance. In addition to net income as defined by GAAP, the Company believes Adjusted Fixed Charge Coverage, CFC, Comparable FFO as adjusted, Consolidated Gross Assets, DSC, EBITDA, Adjusted EBITDA, Facility EBITDA, Facility EBITDAR, Facility EBITDARM, Total Rental and Operating Revenue, Financial Leverage, Fixed Charges, FAD, FFO, FFO as adjusted, Investment, Net Debt, Net Debt to Adjusted EBITDA, NOI, Cash NOI, SPP, Secured Debt Ratio, Total Debt, Total Gross Assets and Total Secured Debt are useful supplemental non-GAAP measures of its operating performance and financial position. As these non-GAAP measures have inherent limitations as analytical tools they should be used in conjunction with the Company’s most directly comparable GAAP presentations and not as alternatives to those indicators determined in accordance with GAAP. The Company’s computations of non-GAAP measures may not be comparable to similar measures reported by other companies. Reconciliations of Cash NOI, FAD, FFO, FFO as adjusted, NOI, and SPP to their most directly comparable GAAP measure, are included in the Company’s Annual Report on Form 10-K filed with the SEC on February 13, 2017. Reconciliations of Comparable FFO as adjusted, SPP NOI and SPP Cash NOI growth and SPP NOI and 2017 Guidance to their most directly comparable GAAP measure, are included in the accompanying earnings release. Reconciliations of the remaining non-GAAP supplemental measures used in this report to their most directly comparable GAAP measure are included elsewhere in this report. Historical reconciliations of non-GAAP measures included in this report are available in the Company’s Current Reports on Form 8-K filed with the SEC on October 31, 2016 (3Q16 metrics), August 9, 2016 (2Q16 metrics), May 9, 2016 (1Q16 metrics) and February 9, 2016 (4Q15 metrics). The information in this supplemental report should be read in conjunction with the accompanying earnings release and the Form 10-K referenced above. 45

Reconciliations of Non-GAAP Measures Dollars in thousands EBITDA AND ADJUSTED EBITDA FROM NET INCOME Three Months Ended December 31, 2016 Year Ended December 31, 2016 Interest expense 103,148 464,403 Depreciation and amortization of real estate, in-place lease and other intangibles(1) 147,416 572,998 HCP’s share of unconsolidated JV EBITDA 15,385 52,546 EBITDA $ 315,387 $ 1,769,986 Loss on debt extinguishment 46,020 46,020 HCP’s share of gain on sale of real estate from unconsolidated JVs (1,504) (1,718) Litigation provision 3,081 3,081 Adjusted EBITDA $ 382,725 $ 1,766,807 ADJUSTED FIXED CHARGE COVERAGE Three Months Ended December 31, 2016 Year Ended December 31, 2016 Interest expense $ 103,148 $ 464,403 Capitalized interest 2,618 11,108 (1) Includes discontinued operations. 46 Adjusted Fixed Charge Coverage 3.6x 3.7x Fixed Charges $ 107,167 $ 481,597 HCP’s share of unconsolidated JV interest expense 1,401 6,086 Adjusted EBITDA$ 382,725 $ 1,766,807 Foreign currency remeasurement losses 317 585 Severance-related costs 2,501 16,965 Gain on sales of real estate, net (45,093) (164,698) Transaction-related items and other 62,016 96,586 Other JV adjustments (306) (1,181) Equity income from unconsolidated JVs(1)(15,388) (11,360) Income tax expense (benefit)(1) 3,832 52,654 Net income$ 61,300 $ 639,926

Reconciliations of Non-GAAP Measures As of December 31, 2016, dollars in thousands INVESTMENT Senior Housing Triple-net Life Science Medical Office SHOP Other Non-Segment Total Investments in and advances to unconsolidated joint ventures — (488,817) (67,879) (13,453) (1,342) — (571,491) 698,995 485,108 790,784 925,173 180,671 210,261 3,290,992 Consolidated Gross Assets $ 4,210,543 $ 3,293,504 $ 4,125,632 $ 3,858,472 $ 1,927,526 $ 1,063,089 $ 18,478,766 — 1,108,653 25,897 19,335 10,163 — 1,164,048 Total Gross Assets $ 4,210,543 $ 4,402,157 $ 4,151,529 $ 3,877,807 $ 1,937,689 $ 1,063,089 $ 19,642,814 Land held for development — — (247,741) (946) (3,643) — (252,330) 58,809 63,907 170,289 259,179 4,398 — 556,582 Non-real estate related assets(1) (355,324) (470,609) (102,073) (154,857) (69,612) (452) (1,152,927) (45,227) (8,793) (97,960) (65,512) (25,513) — (243,005) Investment $ 3,868,801 $ 3,986,662 $ 3,874,044 $ 3,915,671 $ 1,843,319 $ — $ 17,488,497 Investment by type HCP’s share of unconsolidated JVs — 805,020 87,889 9,798 9,150 — 911,857 (1) Includes straight-line rent receivables, net of reserves; lease commissions, net of amortization; cash and restricted cash; the value attributable to refundable Entrance Fee liabilities for the Company’s CCRC JV and other assets. 47 Investment $ 3,868,801 $ 3,986,662 $ 3,874,044 $ 3,915,671 $ 1,843,319 $ —$ 17,488,497 Wholly-owned 3,868,801 3,181,642 3,786,155 3,905,873 1,834,169 —16,576,640 Real estate intangible liabilities, net of held for sale Fully depreciated real estate and intangibles excluding held for sale Gross assets held for sale— — — — —(1,062,637) (1,062,637) HCP’s share of unconsolidated JV gross assets Accumulated depreciation and amortization net of assets held for sale Consolidated total assets $ 3,511,548 $ 3,297,213 $ 3,402,727 $ 2,946,752 $ 1,748,197 $ 852,828 $ 15,759,265

Reconciliations of Non-GAAP Measures Dollars in thousands TOTAL DEBT AND NET DEBT Term loans(2) 440,062 Mortgage debt 623,792 Consolidated Debt $ 9,189,495 HCP’s share of unconsolidated JV other debt 186,800 Cash and cash equivalents (94,730) Net Debt $ 9,421,555 December 31, 2016 FINANCIAL LEVERAGE Total Gross Assets(3) 19,642,814 SECURED DEBT RATIO HCP’s share of unconsolidated JV mortgage debt 166,496 Total Gross Assets(3) 19,642,814 NET DEBT TO ADJUSTED EBITDA (1) Includes £372 million translated into U.S. dollars. (2) Represents £357 million translated into U.S. dollars. (3) See reconciliation of Total Gross Assets on page 47 and reconciliation of Adjusted EBITDA on page 46. Adjusted EBITDA(3) 1,766,807 48 Net Debt to Adjusted EBITDA 5.3x Net Debt $ 9,421,555 Secured Debt Ratio 4.0% Secured debt $ 790,288 Mortgage debt $ 623,792 Financial Leverage 48.6% Total Debt $ 9,542,791 HCP’s share of unconsolidated JV cash and cash equivalents (26,506) Total Debt $ 9,542,791 HCP’s share of unconsolidated JV mortgage debt 166,496 Other debt 92,385 Senior unsecured notes 7,133,538 Bank line of credit(1) $ 899,718

COMPANY Information BOARD OF DIRECTORS MICHAEL D. MCKEE Executive Chairman CHRISTINE N. GARVEY Former Global Head of Corporate Real Estate Services, Deutsche Bank AG THOMAS M. HERZOG Chief Executive Officer 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 Executive Officer, Kimco Realty Corporation PETER L. RHEIN Partner, Sarlot & Rhein BRIAN G. CARTWRIGHT Senior Advisor, Patomak Global Partners LLC JOSEPH P. SULLIVAN Chairman Emeritus, Board of Advisors, RAND Health EXECUTIVE MANAGEMENT MICHAEL D. MCKEE Executive Chairman THOMAS D. KIRBY Executive Vice President Acquisitions and Valuations THOMAS M. HERZOG Chief Executive Officer THOMAS M. KLARITCH Senior Managing Director Medical Office Properties J. JUSTIN HUTCHENS President TROY E. MCHENRY Executive Vice President, General Counsel and Corporate Secretary SCOTT A. ANDERSON Executive Vice President and Chief Accounting Officer KENDALL K. YOUNG Executive Vice President Senior Housing Investments JONATHAN M. BERGSCHNEIDER Senior Managing Director Life Science Properties KAI HSIAO Senior Managing Director Senior Housing Properties 49

UC Davis Medical Center Davis, 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 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. These statements include, among other things, the Company’s expectations regarding (i) the Company’s pending or contemplated acquisitions, dispositions and development projects, including with respect to closing dates, completion dates, stabilization dates, rentable square feet, costs to complete, and total investment, (ii) rentable square feet for land held for development and (iii) the Company’s 2017 guidance. 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 the Company’s and its management’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: the Company’s reliance on a concentration of a small number of tenants and operators for a significant percentage of its revenues, with its concentration in Brookdale increasing as a result of the consummation of the spin-off of QCP on October 31, 2016; the financial condition of the Company’s existing and future tenants, operators and borrowers, including potential bankruptcies and downturns in their businesses, and their legal and regulatory proceedings, which results in uncertainties regarding the Company’s ability to continue to realize the full benefit of such tenants’ and operators’ leases and borrowers’ loans; the ability of the Company’s existing and future tenants, operators and borrowers 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 the Company and the Company’s ability to recover investments made, if applicable, in their operations; competition for tenants and operators, including with respect to new leases and mortgages and the renewal or rollover of existing leases; the Company’s concentration in the healthcare property sector, particularly in life sciences, medical office buildings and hospitals, which makes its profitability more vulnerable to a downturn in a specific sector than if the Company were investing in multiple industries; availability of suitable properties to acquire at favorable prices, the competition for the acquisition and financing of those properties and the costs of associated property development; the Company’s ability to negotiate the same or better terms with new tenants or operators if existing leases are not renewed or the Company exercises its right to foreclose on loan collateral or replace an existing tenant or operator upon default; the risks associated with the Company’s investments in JVs and unconsolidated entities, including its lack of sole decision making authority and its reliance on its partners’ financial condition and continued cooperation; the Company’s ability to achieve the benefits of acquisitions and other investments within expected time frames or at all, or within expected cost projections; operational risks associated with third party management contracts, including the additional regulation and liabilities of RIDEA lease structures; the potential impact on the Company and its tenants, operators and borrowers from current and future litigation matters, including the possibility of larger than expected litigation costs, adverse results and related developments; the effect on the Company’s tenants and operators of legislation, executive orders and other legal requirements, including the Affordable Care Act and licensure, certification Continued 50

Forward-Looking Statements & Risk Factors (Continued) and inspection requirements as well as laws 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, 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 the capital markets, the availability and cost of capital as impacted by interest rates, changes in the Company’s credit ratings, and the value of its common stock, and other conditions that may adversely impact the Company’s ability to fund its obligations or consummate transactions, or reduce the earnings from potential transactions; changes in global, national and local economic and other conditions, including currency exchange rates; changes in the credit ratings on U.S. government debt securities or default or delay in payment by the government of its obligations; the Company’s ability to manage its indebtedness level and changes in the terms of such indebtedness; competition for skilled management and other key personnel; the Company’s ability to maintain its qualification as a real estate investment trust; and other risks and uncertainties described from time to time in the Company’s Securities and Exchange Commission (SEC) filings. The Company cautions investors not to place undue reliance on any forward-looking statements. The Company 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. The information in this supplemental report should be read in conjunction with the Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other information filed with the SEC. The Reporting Definitions and Reconciliations of Non-GAAP Measures are an integral part of the information presented herein. On the Company’s website, www.hcpi.com, you can access, free of charge, its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable after such material is electronically filed with, or furnished to, the SEC. The information contained on the Company’s website is not incorporated by reference into, and should not be considered a part of, this supplemental report. In addition, the SEC maintains a website that contains reports, proxy and information statements, and other information regarding issuers, including the Company, that file electronically with the SEC at www.sec.gov. This supplemental report also includes market and industry data that the Company 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 the Company believes that the surveys and market research that others have performed are reliable, it has not independently verified this information. For more information, contact Andrew Johns, Vice President - Investor Relations, at (949) 407-0400. 51

CORP ORATE HEADQUARTERS 192 0 MAIN STREET, SUITE 1 2 00 IRVINE , CA 92614 (949) 4 07-0700 SAN FRANCIS CO OFFICE 95 0 TOWER LANE , SUITE 1 65 0 FOSTER CIT Y, CA 94 4 04 NASHVILLE OFFICE 3000 MERIDIAN BOULEVARD, SUITE 2 00 FRANKLIN , TN 37067 52