EX-99.2 3 hcpsupplementalreport123.htm EXHIBIT 99.2
1 Earnings Release and Supplemental Report fourth quarter 2017 65 Hayden Boston, MA

2 Earnings Release 3 Overview 10 Consolidated Financial Statements 11 Portfolio Summary 15 Same Property Portfolio 17 Capitalization and Debt 18 Investment Summary - Acquisitions, Fundings & Dispositions 21 Developments and Redevelopments 23 Capital Expenditures 25 Portfolio Diversification 27 Expirations and Maturities 29 Triple-net Master Lease Profile 30 Portfolio Senior Housing Triple-net 31 Senior Housing Operating Portfolio 34 Life Science 40 Medical Office 43 Other 46 Unconsolidated Joint Ventures 49 Guidance 50 Brookdale Transaction - Non-Cash NOI Impact 51 2017 Summary Results 52 Glossary and Debt Ratios 55 Company Information 61 Forward-Looking Statements & Risk Factors 62 Discussion and Reconciliation of Non-GAAP Financial Measures TABLE OF Contents

3 HCP Announces Results for the Fourth Quarter and Year Ended 2017 IRVINE, CA, February 13, 2018 -- HCP (NYSE:HCP) announced results for the fourth quarter and full year ended December 31, 2017. FOURTH QUARTER 2017 FINANCIAL PERFORMANCE AND RECENT HIGHLIGHTS – Net loss, FFO and FFO as adjusted applicable to common shares were $(0.13), $0.11 and $0.48 per share, respectively – Commenced Phase I of Sierra Point, our next major life science development in South San Francisco – Entered into a $115 million participating development financing agreement for a high-rise senior living development in downtown Seattle – Acquired an 11-asset portfolio of medical office buildings for $151 million – Closed on the previously announced $228 million acquisition of the Hayden Research Campus in the Boston life science market – As previously announced, closed on a new $2.0 billion unsecured revolving credit facility – Recognized an $84 million impairment on our Tandem debt investment – Announced Mike McKee to step down from his role as Executive Chairman and retire from HCP's Board of Directors at the upcoming Annual Meeting – Named as a 2017 ENERGY STAR Partner of the Year for outstanding efforts to improve our properties' energy efficiency FULL YEAR 2017 HIGHLIGHTS – Net income, FFO and FFO as adjusted applicable to common shares were $0.88, $1.41 and $1.95 per share, respectively – Achieved year-over-year Total SPP Cash NOI growth of 3.4% – Significantly lowered our Brookdale Senior Living, Inc. ("Brookdale") tenant concentration with $1.6 billion of closed dispositions and entered into additional strategic transactions which, when combined, result in a more diversified senior housing operator portfolio, improved triple-net lease coverage, and a stronger balance sheet – Closed $562 million of acquisitions, including our entry into the Boston life science market – Enhanced our financial position with $1.4 billion of debt repayments – Substantially exited our high-risk mezzanine debt investments, generating proceeds of $500 million – Launched sales process for our remaining U.K. investments – Executed 4.1 million square feet of leasing across our medical office and life science portfolios – Recognized for our continued leadership and performance by several prominent Environmental, Social and Governance ("ESG") benchmarking institutions – Enhanced corporate governance by opting out of provisions of the Maryland Unsolicited Takeover Act ("MUTA") and adopting majority-vote standard for stockholder bylaw amendments

4 _______________________________________ (1) For the fourth quarter 2017 and 2016, net income includes net gain on sales of real estate of $0.07 per share and $0.14 per share (of which $0.04 per share is reflected in equity income from unconsolidated joint ventures), respectively. (2) For the three months ended December 31, 2017, includes $55 million of net non-cash charges related to the right to terminate certain triple-net leases and management agreements in conjunction with the November 2017 Brookdale transaction. For the three months ended December 31, 2016, primarily relates to the spin-off (the "Spin-Off") of Quality Care Properties, Inc. (“QCP”). (3) Represents the impairment on our Tandem Health Care mezzanine loan ("Tandem Mezzanine Loan"). (4) Represents penalties of $46 million from the prepayment of $1.1 billion of senior unsecured notes and $108 million of mortgage debt using proceeds from the Spin-Off. (5) For the three months ended December 31, 2017, primarily relates to a legal settlement. For the three months ended December 31, 2016, primarily relates to costs from securities class action litigation. (6) Represents the remeasurement of deferred tax assets and liabilities as a result of the Tax Cuts and Jobs Act that was signed into legislation on December 22, 2017. (7) Represents 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 earliest 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. Three Months Ended December 31, 2017 Three Months Ended December 31, 2016 (in thousands, except per share amounts) Amount Diluted Per Share Amount Diluted Per Share Per Share Change Net income (loss)(1) $ (59,298) $ (0.13) $ 58,440 $ 0.12 $ (0.25) FFO $ 52,884 $ 0.11 $ 162,264 $ 0.35 $ (0.24) Transaction-related items(2) 60,100 0.13 62,016 0.13 — Other impairments (recoveries), net(3) 84,374 0.18 — — 0.18 Severance and related charges 1,111 — 2,501 — — Loss on debt extinguishments(4) — — 46,020 0.10 (0.10) Litigation costs(5) 8,130 0.02 3,081 0.01 0.01 Casualty-related charges (recoveries), net 2,039 — — — — Foreign currency remeasurement losses (gains) (58) — 318 — — Tax rate legislation impact(6) 17,028 0.04 — — 0.04 FFO as adjusted $ 225,608 $ 0.48 $ 276,200 $ 0.59 $ (0.11) FFO as adjusted from QCP — — (26,948) (0.06) 0.06 Comparable FFO as adjusted(7) $ 225,608 $ 0.48 $ 249,252 $ 0.53 $ (0.05) FAD $ 182,603 $ 251,251 FOURTH QUARTER COMPARISON

5 FULL YEAR COMPARISON _______________________________________ (1) 2017 net income includes net gain on sales of real estate of $0.76 per share and 2016 net income includes: (i) net gain on sales of real estate of $0.39 per share (of which $0.04 per share is reflected in equity income from unconsolidated joint ventures) and (ii) $0.04 per share of interest income from monetizing three senior housing development loans. (2) For the year ended December 31, 2017, includes $55 million of net non-cash charges related to the right to terminate certain triple-net leases and management agreements in conjunction with the November 2017 Brookdale transaction. For the year ended December 31, 2016, primarily relates to the Spin-Off. (3) Represents $144 million of impairments on our Tandem Mezzanine Loan throughout 2017, net of a $51 million impairment recovery upon the sale of our Four Seasons Notes in the first quarter of 2017. (4) For the year ended December 31, 2017, represents the premium associated with the prepayment of $500 million of senior unsecured notes. For the year ended December 31, 2016, penalties of $46 million from the prepayment of $1.1 billion of senior unsecured notes and $108 million of mortgage debt using proceeds from the Spin-Off. (5) For the year ended December 31, 2017, relates to costs from securities class action litigation and a legal settlement. For the year ended December 31, 2016, primarily relates to costs from securities class action litigation. (6) Represents the remeasurement of deferred tax assets and liabilities as a result of the Tax Cuts and Jobs Act that was signed into legislation on December 22, 2017. (7) Represents 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 earliest 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. Year Ended December 31, 2017 Year Ended December 31, 2016 (in thousands, except per share amounts) Amount Diluted Per Share Amount Diluted Per Share Per Share Change Net income (loss)(1) $ 413,013 $ 0.88 $ 626,549 $ 1.34 $ (0.46) FFO $ 661,113 $ 1.41 $ 1,119,153 $ 2.39 $ (0.98) Transaction-related items(2) 62,576 0.13 96,586 0.20 (0.07) Other impairments (recoveries), net(3) 92,900 0.20 — — 0.20 Severance and related charges 5,000 0.01 16,965 0.04 (0.03) Loss on debt extinguishments(4) 54,227 0.11 46,020 0.10 0.01 Litigation costs(5) 15,637 0.03 3,081 0.01 0.02 Casualty-related charges (recoveries), net 10,964 0.02 — — 0.02 Foreign currency remeasurement losses (gains) (1,043) — 585 — — Tax rate legislation impact(6) 17,028 0.04 — — 0.04 FFO as adjusted $ 918,402 $ 1.95 $ 1,282,390 $ 2.74 $ (0.79) FFO as adjusted from QCP $ — $ — $ (328,341) $ (0.70) $ 0.70 Comparable FFO as adjusted(7) $ 918,402 $ 1.95 $ 954,049 $ 2.04 $ (0.09) FAD $ 803,720 $ 1,215,696 FFO, FFO as adjusted, FAD, Comparable FFO as adjusted, and Total SPP NOI are supplemental non-GAAP financial measures that we believe are useful in evaluating the operating performance of real estate investment trusts. See “December 31, 2017 Discussion and Reconciliation of Non-GAAP Financial Measures” for definitions, discussions of their uses and inherent limitations, and reconciliations to the most directly comparable financial measures calculated and presented in accordance with GAAP on the Investor Relations section of our website at http://ir.hcpi.com/financial-reconciliation.

6 SAME PROPERTY PORTFOLIO OPERATING SUMMARY The table below outlines the same property portfolio operating results for the quarter and full year: Year-Over-Year Total SPP Cash NOI Growth(1) Three Months Full Year Senior housing triple-net 2.6% 5.6% Senior housing operating portfolio ("SHOP")(2) (8.3%) 0.2% Life science 5.1% 4.2% Medical office 2.1% 3.0% Other non-reportable segments ("Other")(3) 1.5% 1.2% Total Portfolio 1.2% 3.4% _______________________________________ (1) Total SPP Cash NOI represents SPP Cash NOI plus our pro rata share of Cash NOI from our unconsolidated joint ventures. See “December 31, 2017 Discussion and Reconciliation of Non-GAAP Financial Measures” for definition, discussion of its uses and inherent limitations, and reconciliation to the most directly comparable financial measures calculated and presented in accordance with GAAP on the Investor Relations section of our website at http://ir.hcpi.com/financial-reconciliation. (2) The fourth quarter 2017 SHOP Total SPP Cash NOI growth rate was impacted by: (i) outsized volume purchase rebates recorded in the fourth quarter of 2016 (3.0%); (ii) a portfolio of recently acquired and transitioned assets entering the SPP pool in fourth quarter 2017 prior to reaching stabilized occupancy (2.8%); (iii) an increase in sales and marketing expenses in fourth quarter 2017 to catch up from lower spend during the first half of 2017 and to better position the portfolio for 2018 (2.3%); and (iv) under-accrual by an operator of a utility bill which was provisioned for in fourth quarter 2017 (1.0%). Adjusting for these items, normalized fourth quarter 2017 SHOP Total SPP Cash NOI growth would be 0.8%. (3) Other primarily includes our hospitals and U.K. real estate investments. BROOKDALE TRANSACTIONS UPDATE In December 2017, we closed on the acquisition of Brookdale’s 10% interest in the RIDEA III joint venture for $32 million. We anticipate closing on both the purchase of Brookdale’s 10% interest in the RIDEA I joint venture for $63 million and the sale of six assets to Brookdale for $275 million near the end of the first quarter 2018. We continue to expect the sale of our remaining 40% interest in the RIDEA II joint venture to Columbia Pacific Advisors LLC ("CPA") for $332 million to close mid-2018. In addition, we are in the process of selling or transitioning 36 senior housing operating properties and 32 triple-net leased communities currently operated by Brookdale. Upon completion, these transactions will significantly reduce our Brookdale concentration, improve lease coverage of our remaining triple-net assets leased to Brookdale, increase tenant diversification in our portfolio, and enhance our balance sheet and credit profile. DEVELOPMENTS AND ACQUISITIONS THE COVE AND SIERRA POINT LIFE SCIENCE DEVELOPMENT UPDATE During 2017, we placed $200 million of development in service at The Cove, our premier $720 million, class-A life science development project in South San Francisco. With Phases I & II of The Cove fully-leased, and strong interest in Phase III of the project, we recently commenced Sierra Point, our next life science development in the South San Francisco market. Sierra Point is a 600,000 square foot multi-building campus designed to be developed in phases as demand dictates. Phase I will consist of approximately 215,000 square feet with an estimated cost of $220 million and an initial delivery expected in late 2019. We are the largest life science landlord in South San Francisco with over three million square feet. HCP and its predecessor company have successfully delivered numerous life science developments in South San Francisco since the mid-1990s. 620 TERRY PARTICIPATING DEVELOPMENT FINANCING In December, we entered into a participating debt financing arrangement with CPA to fund the construction of 620 Terry, a $147 million, 243-unit urban senior living development located in the First Hill neighborhood of Downtown Seattle. We will provide a participating development loan of up to $115 million. Upon expected completion in 2019, 620 Terry will be operated by Leisure Care, LLC, a leading senior housing operator, and offer a mix of independent-living, assisted-living, and memory care units.

7 ACQUISITIONS For the fourth quarter, we announced $424 million of acquisitions, bringing our year-to-date total acquisitions to $562 million. Significant transactions during the quarter included: In November, we acquired The Residence at Watertown Square, a 90-unit senior housing community located in the Boston suburb of Watertown, Massachusetts for $45 million. We own the community in a consolidated joint venture with LCB Senior Living, LLC, a leading senior housing developer and operator focused on the New England region. In December, we closed on the previously announced $228 million acquisition of the Hayden Research Campus located in the Boston suburb of Lexington. The Hayden acquisition allowed us to enter the Boston life science market with immediate scale and align with a leading local developer, owner and operator, King Street Properties. The 400,000 square foot campus comprises two existing buildings leased to major life science anchor tenants, including subsidiaries of Shire plc and Merck & Co., Inc. Additionally, King Street is currently seeking approvals for the joint venture to develop 209,000 square feet of life science space on the campus. The acquisition complements our sizable San Francisco and San Diego life science portfolios and provides us with an additional market for investment opportunity over time. In December, we acquired 11 off-campus medical office buildings for $151 million. The 378,000 square foot portfolio is anchored by leading hospitals and was 97% occupied as of December 31, 2017. The portfolio has a weighted average remaining lease term of eight years and an average building age of eight years. TANDEM DEBT INVESTMENT UPDATE During our fourth quarter 2017 financial statement close process, we recorded an $84 million impairment on our Tandem debt investment and reduced the carrying value to $105 million. We are actively evaluating and pursuing a range of strategic alternatives from selling our loan position to foreclosing on the collateral. This investment represents our last meaningful exposure to both post-acute/ skilled-nursing assets and highly-leveraged mezzanine investments. BALANCE SHEET UPDATE As previously announced, in October, we closed on a new $2.0 billion unsecured revolving credit facility. The new facility reduced our funded interest cost by five basis points and has a maturity date of October 19, 2021, plus two six-month extension options at our discretion. Based on our current senior unsecured long-term debt ratings, the facility bears interest annually at LIBOR plus 100 basis points and has a facility fee of 20 basis points. The facility also includes the ability to increase the commitments by an aggregate amount up to $750 million, subject to securing additional commitments. At December 31, 2017, we had $1.0 billion of liquidity from a combination of cash and availability under our $2.0 billion credit facility and no major senior notes or secured debt maturities until 2019. EXECUTIVE LEADERSHIP As previously announced, Mike McKee will step down from his role as Executive Chairman, effective March 1, 2018, and retire from the Board of Directors at HCP's Annual Meeting. To help facilitate a smooth transition, Mr. McKee will work with the Company in a consulting capacity until HCP's Annual Meeting. Dave Henry, previously the Lead Independent Director, has been appointed to serve as non-executive Chairman. DIVIDEND On February 1, 2018, our Board declared a quarterly cash dividend of $0.37 per common share. The dividend will be paid on March 2, 2018 to stockholders of record as of the close of business on February 15, 2018. A copy of the press release is available in the Investor Relations section of our website at http://ir.hcpi.com. SUSTAINABILITY HCP’s leadership and performance in ESG standards was recognized by the CDP 2017 Climate Change Program (formerly Carbon Disclosure Project). We received a score of A- for our disclosure in CDP’s annual investor survey and were named to the Leadership Band. CDP collects and publishes the environmental data on behalf of more than 800 investors with assets of $100 trillion. We were also named a 2017 ENERGY STAR Partner of the Year by the U.S. Environmental Protection Agency and the U.S. Department of Energy for outstanding efforts to improve our properties' energy efficiency. Additionally, we were included in The Sustainability Yearbook 2018, a listing of the world’s most sustainable companies. The list is compiled according to the results of RobecoSAM’s annual Corporate Sustainability Assessment, which also determines constituency for the Dow Jones Sustainability Index (“DJSI”) series. HCP was named to the DJSI North America and World indices for the 5th and 3rd consecutive times, respectively, earlier this year. More information about our sustainability efforts is available on our website at www.hcpi.com/sustainability.

8 _______________________________________ (1) Effective 2018, unconsolidated joint ventures, including our CCRC joint venture, will be removed from our same property portfolio in order to better align with how management views our business and improve comparability of our results to those of our peers. For additional detail and information, see "2018 Guidance section of the December 31, 2017 Supplemental Report" and "December 31, 2017 Discussion and Reconciliation of Non-GAAP Financial Measures" on the Investor Relations section of our website at http://ir.hcpi.com/. COMPANY INFORMATION HCP has scheduled a conference call and webcast for Tuesday, February 13, 2018, at 9:00 a.m. Pacific Time (12:00 p.m. Eastern Time) to present its performance and operating results for the quarter and year ended December 31, 2017. The conference call is accessible by dialing (888) 317-6003 (U.S.) or (412) 317-6061 (International). The conference ID number is 1361246. You may also access the conference call via webcast at www.hcpi.com. This link can be found in the “News and Events” section, which is under “Investor Relations”. Through February 28, 2018, an archive of the webcast will be available on our website, and a telephonic replay can be accessed by dialing (877) 344-7529 (U.S.) or (412) 317-0088 (International) and entering conference ID number 10116085. Our Supplemental Report for the current period is available, with this earnings release, on our website in the “Financial Information” section under “Investor Relations.” ABOUT HCP HCP, Inc. is a fully integrated real estate investment trust (REIT) that invests primarily in real estate serving the healthcare industry in the United States. HCP owns a large-scale portfolio diversified across life science, medical office and senior housing. Recognized as a global leader in sustainability, HCP has been a publicly-traded company since 1985 and was the first healthcare REIT selected to the S&P 500 index. For more information regarding HCP, visit www.hcpi.com. 2018 GUIDANCE For full year 2018, we have established the following guidance ranges: • Net income per share applicable to common shares of $0.79 to $0.85 • FFO per share of $1.73 to $1.79 • FFO as adjusted per share of $1.77 to $1.83 • SPP Cash NOI to increase 0.25% to 1.75% These estimates do not reflect the potential impact from any unannounced future transactions other than capital recycling activities. For additional detail, assumptions, and information regarding these estimates, refer to the “Projected Full Year 2018 SPP Cash NOI” table below, the 2018 Guidance section of our corresponding Supplemental Report, and Discussion and Reconciliation of Non-GAAP Financial Measures, both available in the Investor Relations section of our website at http://ir.hcpi.com. Projected Full Year 2018 SPP Cash NOI(1) Low High Senior housing triple-net 0.50% 1.50% SHOP (4.00%) 0.00% Life science 0.25% 1.25% Medical office 1.75% 2.75% Other 0.50% 1.50% SPP Growth 0.25% 1.75%

9 FORWARD-LOOKING STATEMENTS Statements in this release that 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. Forward-looking statements include, among other things, statements regarding our and our officers’ intent, belief or expectation as identified by the use of words such as “may,” “will,” “project,” “expect,” “believe,” “intend,” “anticipate,” “seek,” “forecast,” “plan,” “potential,” “estimate,” “could,” “would,” “should” and other comparable and derivative terms or the negatives thereof. Examples of forward-looking statements include, among other things, (i) all statements under the heading “2018 Guidance,” including without limitation with respect to expected net income, FFO per share, FFO as adjusted per share, SPP Cash NOI and other financial projections and assumptions, including those in the “Projected Full Year 2018 SPP Cash NOI” table in this release, as well as comparable statements included in other sections of this release; (ii) statements regarding the payment of a quarterly cash dividend; (iii) statements regarding leadership changes; and (iv) statements regarding timing, outcomes and other details relating to current, pending or contemplated acquisitions, dispositions, developments, joint venture transactions, capital recycling and financing activities, and other transactions discussed in this release, including without limitation those described under the headings “Brookdale Transactions Update,” "Developments and Acquisitions” and “Tandem Debt Investment Update.” Forward-looking statements reflect our current expectations and views about future events and are subject to risks and uncertainties that could significantly affect our future financial condition and results of operations. While forward-looking statements reflect our good faith belief and assumptions we believe to be reasonable based upon current information, we can give no assurance that our expectations or forecasts will be attained. Further, we cannot guarantee the accuracy of any such forward-looking statement contained in this release, and such forward-looking statements are subject to known and unknown risks and uncertainties that are difficult to predict. These risks and uncertainties include, but are not limited to: our reliance on a concentration of a small number of tenants and operators for a significant percentage of our revenues; the financial condition of our 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 our ability to continue to realize the full benefit of such tenants' and operators' leases and borrowers' loans; the ability of our 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 us and our ability to recover investments made, if applicable, in their operations; competition for the acquisition and financing of suitable healthcare properties as well as competition for tenants and operators, including with respect to new leases and mortgages and the renewal or rollover of existing leases; our concentration in the healthcare property sector, particularly in senior housing, life sciences and medical office buildings, which makes our profitability more vulnerable to a downturn in a specific sector than if we were investing in multiple industries; our ability to identify replacement tenants and operators and the potential renovation costs and regulatory approvals associated therewith; the risks associated with property development and redevelopment, including costs above original estimates, project delays and lower occupancy rates and rents than expected; the risks associated with our investments in joint ventures and unconsolidated entities, including our lack of sole decision making authority and our reliance on our partners' financial condition and continued cooperation; our ability to achieve the benefits of acquisitions and other investments, including those discussed above, within expected time frames or at all, or within expected cost projections; the potential impact on us and our tenants, operators and borrowers from current and future litigation matters, including the possibility of larger than expected litigation costs, adverse results and related developments; operational risks associated with third party management contracts, including the additional regulation and liabilities of our RIDEA lease structures; the effect on us and our tenants and operators of legislation, executive orders and other legal requirements, including compliance with the Americans with Disabilities Act, fire, safety and health regulations, environmental laws, the Affordable Care Act, licensure, certification and inspection requirements, and laws addressing entitlement programs and related services, including Medicare and Medicaid, which may result in future reductions in reimbursements or fines for noncompliance; changes in federal, state or local laws and regulations, including those affecting the healthcare industry that affect our costs of compliance or increase the costs, or otherwise affect the operations, of our tenants and operators; our ability to foreclose on collateral securing our real estate-related loans; volatility or uncertainty in the capital markets, the availability and cost of capital as impacted by interest rates, changes in our credit ratings, and the value of our common stock, and other conditions that may adversely impact our ability to fund our obligations or consummate transactions, or reduce the earnings from potential transactions; changes in global, national and local economic or other conditions, including currency exchange rates; our ability to manage our indebtedness level and changes in the terms of such indebtedness; competition for skilled management and other key personnel; the potential impact of uninsured or underinsured losses; our reliance on information technology systems and the potential impact of system failures, disruptions or breaches; the ability to maintain our qualification as a real estate investment trust; and other risks and uncertainties described from time to time in our Securities and Exchange Commission filings. Except as required by law, we do not undertake, and hereby disclaim, any obligation to update any forward-looking statements, which speak only as of the date on which they are made. CONTACT Andrew Johns Vice President – Finance and Investor Relations 949-407-0400

10 Overview(1) As of and for the quarter and year ended December 31, 2017 and the year ending December 31, 2018, dollars, square feet and shares in thousands, except per share data 4Q17 Full Year 2017 Full Year 2018 Guidance (February 13, 2018) Financial Metrics Diluted earnings per common share $(0.13) $0.88 $0.79 - $0.85 Diluted FFO per common share $0.11 $1.41 $1.73 - $1.79 Diluted FFO as adjusted per common share $0.48 $1.95 $1.77 - $1.83 Dividends per common share $0.37 $1.48 $1.48 Total rental and operating revenues(2) $524,802 $2,127,326 Total NOI(2)(3) 258,658 1,201,830 Total Cash NOI and interest income(2) 318,537 1,315,488 Same Property Portfolio Total Cash NOI Growth Senior housing triple-net 2.6% 5.6% 0.50% - 1.50% SHOP(4) (8.3%) 0.2% (4.0%) - 0.00% Life science 5.1% 4.2% 0.25% - 1.25% Medical office 2.1% 3.0% 1.75% - 2.75% Other 1.5% 1.2% 0.50% - 1.50% Total Portfolio 1.2% 3.4% 0.25% - 1.75% 4Q17 4Q17 Full Year 2017 Capitalization Debt Ratios Common stock outstanding and DownREIT units 476,053 Financial Leverage 45.6% 45.6% Total Market Equity $ 12,415,462 Secured Debt Ratio 1.7% 1.7% Total Debt $ 8,231,541 Net Debt to Adjusted EBITDA 6.8x 6.6x Adjusted fixed charge coverage 3.8x 3.7x Property Count Capacity Unit of Measure Occupancy Portfolio Statistics Senior housing triple-net 181 18,331 Units 86.3% SHOP 176 27,212 Units 86.5% Life science 135 8,005 Sq. Ft. 93.8% Medical office 257 18,749 Sq. Ft. 91.8% Other 79 N/A N/A N/A Total 828 N/A N/A N/A The Numbers (1) Reconciliations, definitions and important discussions regarding the usefulness and limitations of the non-GAAP financial measures used in this report can be found at http://ir.hcpi.com/financial-reconciliation. (2) Includes the Company's share of unconsolidated joint ventures ("JVs") and activity from assets sold and held for sale during the periods presented. (3) Includes non-cash adjustments related to the Brookdale Transaction. For further discussion, see "Brookdale Transaction - Non-Cash NOI Impact" on page 51 of this report. (4) The fourth quarter 2017 SHOP Total SPP Cash NOI growth rate was impacted by: (i) outsized volume purchase rebates recorded in the fourth quarter of 2016 (3.0%); (ii) a portfolio of recently acquired and transitioned assets entering the SPP pool in fourth quarter 2017 prior to reaching stabilized occupancy (2.8%); (iii) an increase in sales and marketing expenses in fourth quarter 2017 to catch up from lower spend during the first half of 2017 and to better position the portfolio for 2018 (2.3%); and (iv) under-accrual by an operator of a utility bill which was provisioned for in fourth quarter 2017 (1.0%). Adjusting for these items, normalized fourth quarter 2017 SHOP Total SPP Cash NOI growth would be 0.8%.

11 December 31, 2017 December 31, 2016 Assets Real estate: Buildings and improvements $ 11,239,732 $ 11,692,654 Development costs and construction in progress 447,976 400,619 Land 1,785,865 1,881,487 Accumulated depreciation and amortization (2,741,695) (2,648,930) Net real estate 10,731,878 11,325,830 Net investment in direct financing leases 714,352 752,589 Loans receivable, net 313,326 807,954 Investments in and advances to unconsolidated joint ventures 800,840 571,491 Accounts receivable, net of allowance of $4,425 and $4,459, respectively 40,733 45,116 Cash and cash equivalents 55,306 94,730 Restricted cash 26,897 42,260 Intangible assets, net 410,082 479,805 Assets held for sale, net 417,014 927,866 Other assets, net 578,033 711,624 Total assets $ 14,088,461 $ 15,759,265 Liabilities and Equity Bank line of credit $ 1,017,076 $ 899,718 Term loans 228,288 440,062 Senior unsecured notes 6,396,451 7,133,538 Mortgage debt 144,486 623,792 Other debt 94,165 92,385 Intangible liabilities, net 52,579 58,145 Liabilities of assets held for sale, net 14,031 3,776 Accounts payable and accrued liabilities 401,738 417,360 Deferred revenue 144,709 149,181 Total liabilities 8,493,523 9,817,957 Commitments and contingencies Common stock, $1.00 par value: 750,000,000 shares authorized; 469,435,678 and 468,081,489 shares issued and outstanding, respectively 469,436 468,081 Additional paid-in capital 8,226,113 8,198,890 Cumulative dividends in excess of earnings (3,370,520) (3,089,734) Accumulated other comprehensive income (loss) (24,024) (29,642) Total stockholders' equity 5,301,005 5,547,595 Joint venture partners 117,045 214,377 Non-managing member unitholders 176,888 179,336 Total noncontrolling interests 293,933 393,713 Total equity 5,594,938 5,941,308 Total liabilities and equity $ 14,088,461 $ 15,759,265 HCP, Inc. Consolidated Balance Sheets In thousands, except share and per share data

12 HCP, Inc. Consolidated Statements of Operations In thousands, except per share data Three Months Ended December 31, Year Ended December 31, 2017 2016 2017 2016 (unaudited) Revenues: Rental and related revenues $ 255,006 $ 286,968 $ 1,071,153 $ 1,159,791 Tenant recoveries 36,702 34,565 142,496 134,280 Resident fees and services 132,587 186,118 524,275 686,835 Income from direct financing leases 13,701 14,789 54,217 59,580 Interest income 5,263 17,510 56,237 88,808 Total revenues 443,259 539,950 1,848,378 2,129,294 Costs and expenses: Interest expense 71,882 103,148 307,716 464,403 Depreciation and amortization 136,833 146,927 534,726 568,108 Operating 198,669 195,648 666,251 738,399 General and administrative 21,485 20,600 88,772 103,611 Transaction costs 5,459 3,760 7,963 9,821 Impairments (recoveries), net 84,374 — 166,384 — Total costs and expenses 518,702 470,083 1,771,812 1,884,342 Other income (expense): Gain (loss) on sales of real estate, net 33,789 45,093 356,641 164,698 Loss on debt extinguishments — (46,020) (54,227) (46,020) Other income (expense), net (9,303) (1,410) 31,420 3,654 Total other income (expense), net 24,486 (2,337) 333,834 122,332 Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures (50,957) 67,530 410,400 367,284 Income tax benefit (expense) (13,297) (3,372) 1,333 (4,473) Equity income (loss) from unconsolidated joint ventures 6,330 15,388 10,901 11,360 Income (loss) from continuing operations (57,924) 79,546 422,634 374,171 Discontinued operations: Income (loss) before transaction costs and income taxes — 40,470 — 400,701 Transaction costs — (58,256) — (86,765) Income tax benefit (expense) — (460) — (48,181) Total discontinued operations — (18,246) — 265,755 Net income (loss) (57,924) 61,300 422,634 639,926 Noncontrolling interests' share in earnings (778) (2,639) (8,465) (12,179) Net income (loss) attributable to HCP, Inc. (58,702) 58,661 414,169 627,747 Participating securities' share in earnings (596) (221) (1,156) (1,198) Net income (loss) applicable to common shares $ (59,298) $ 58,440 $ 413,013 $ 626,549 Earnings per common share: Basic $ (0.13) $ 0.12 $ 0.88 $ 1.34 Diluted $ (0.13) $ 0.12 $ 0.88 $ 1.34 Weighted average shares used to calculate earnings per common share: Basic 469,229 467,979 468,759 467,195 Diluted 469,229 468,210 468,935 467,403

13 HCP, Inc. Funds From Operations In thousands, except per share data (unaudited) Three Months Ended December 31, Year Ended December 31, 2017 2016 2017 2016 Net income (loss) applicable to common shares $ (59,298) $ 58,440 $ 413,013 $ 626,549 Real estate related depreciation and amortization 136,833 147,415 534,726 572,998 Real estate related depreciation and amortization on unconsolidated joint ventures 12,347 12,696 60,058 49,043 Real estate related depreciation and amortization on noncontrolling interests and other (3,425) (5,317) (15,069) (21,001) Other depreciation and amortization 1,646 2,998 9,364 11,919 Loss (gain) on sales of real estate, net (33,789) (45,093) (356,641) (164,698) Loss (gain) on sales of real estate, net on unconsolidated joint ventures (1,430) (16,118) (1,430) (16,332) Loss (gain) on sales of real estate, net on noncontrolling interests — 226 — 224 Taxes associated with real estate dispositions(1) — 7,017 (5,498) 60,451 Impairments (recoveries) of real estate, net — — 22,590 — FFO applicable to common shares $ 52,884 $ 162,264 $ 661,113 $ 1,119,153 Distributions on dilutive convertible units — — — 8,732 Diluted FFO applicable to common shares $ 52,884 $ 162,264 $ 661,113 $ 1,127,885 Diluted FFO per common share $ 0.11 $ 0.35 $ 1.41 $ 2.39 Weighted average shares used to calculate diluted FFO per common share 469,388 468,210 468,935 471,566 Impact of adjustments to FFO: Transaction-related items(2) $ 60,100 $ 62,016 $ 62,576 $ 96,586 Other impairments (recoveries), net(3) 84,374 — 92,900 — Severance and related charges(4) 1,111 2,501 5,000 16,965 Loss on debt extinguishments(5) — 46,020 54,227 46,020 Litigation costs(6) 8,130 3,081 15,637 3,081 Casualty-related charges (recoveries), net 2,039 — 10,964 — Foreign currency remeasurement losses (gains) (58) 318 (1,043) 585 Tax rate legislation impact(7) 17,028 — 17,028 — $ 172,724 $ 113,936 $ 257,289 $ 163,237 FFO as adjusted applicable to common shares $ 225,608 $ 276,200 $ 918,402 $ 1,282,390 Distributions on dilutive convertible units and other (98) 2,315 6,657 12,849 Diluted FFO as adjusted applicable to common shares $ 225,510 $ 278,515 $ 925,059 $ 1,295,239 Per common share impact of adjustments on diluted FFO $ 0.37 $ 0.24 $ 0.54 $ 0.35 Diluted FFO as adjusted per common share $ 0.48 $ 0.59 $ 1.95 $ 2.74 Weighted average shares used to calculate diluted FFO as adjusted per common share 469,388 474,318 473,620 473,340 FFO as adjusted from QCP $ — $ 26,948 $ — $ 328,341 Diluted Comparable FFO as adjusted applicable to common shares(8) $ 225,510 $ 251,567 $ 925,059 $ 966,898 FFO as adjusted from QCP per common share $ — $ (0.06) $ — $ (0.70) Diluted Comparable FFO as adjusted per common share $ 0.48 $ 0.53 $ 1.95 $ 2.04 (1) For the year ended December 31, 2017, represents income tax benefit associated with the disposition of real estate assets in our RIDEA II transaction. For the year ended December 31, 2016, represents income tax expense associated with the state built-in gain tax payable upon the disposition of specific real estate assets, of which $49 million relates to the HCRMC real estate portfolio. (2) For the three months and year ended December 31, 2017, includes $55 million of net non-cash charges related to the right to terminate certain triple-net leases and management agreements in conjunction with the November 2017 Brookdale transaction. For the three months and year ended December 31, 2016, primarily relates to the Spin-Off. (3) For the three months ended December 31, 2017, represents the impairment on our Tandem Health Care mezzanine loan ("Tandem Mezzanine Loan"). For the year ended December 31, 2017, represents $144 million of impairments on our Tandem Mezzanine Loan throughout 2017, net of a $51 million impairment recovery upon the sale of our Four Seasons Notes in the first quarter of 2017. (4) For the year ended December 31, 2017, primarily relates to the departure of our former Executive Vice President and Chief Accounting Officer. For the year ended December 31, 2016, primarily relates to the departure of our former President and Chief Executive Officer. (5) For the year ended December 31, 2017, represents the premium associated with the prepayment of $500 million of senior unsecured notes. For the three months and year ended December 31, 2016, represents penalties of $46 million from the prepayment of $1.1 billion of senior unsecured notes and $108 million of mortgage debt using proceeds from the Spin- Off. (6) For the three months ended December 31, 2017, primarily relates to a legal settlement. For the year ended December 31, 2017, relates to costs from securities class action litigation and a legal settlement. For the three months and year ended December 31, 2016, primarily relates to costs from securities class action litigation. See Note 3 in the Consolidated Financial Statements for the year ended December 31, 2017 included in the Company’s Annual Report on Form 10-K filed with the SEC for additional information. (7) Represents the remeasurement of deferred tax assets and liabilities as a result of the Tax Cuts and Jobs Act that was signed into legislation on December 22, 2017. (8) Represents 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 earliest 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.

14 HCP, Inc. Funds Available for Distribution In thousands (unaudited) Three Months Ended December 31, Year Ended December 31, 2017 2016 2017 2016 FFO as adjusted applicable to common shares $ 225,608 $ 276,200 $ 918,402 $ 1,282,390 Amortization of deferred compensation(1) 3,180 2,687 13,510 15,581 Amortization of deferred financing costs 3,428 4,416 14,569 20,014 Straight-line rents (5,881) (5,980) (23,933) (27,560) FAD capital expenditures(2) (44,272) (27,231) (124,176) (93,407) Lease restructure payments 305 2,124 1,470 16,604 CCRC entrance fees(3) 6,949 4,763 21,385 21,287 Deferred income taxes(4) (4,967) (4,714) (15,490) (13,692) Other FAD adjustments (1,747) (1,014) (2,017) (5,521) FAD applicable to common shares $ 182,603 $ 251,251 $ 803,720 $ 1,215,696 Distributions on dilutive convertible units — 2,466 — 13,088 Diluted FAD applicable to common shares $ 182,603 $ 253,717 $ 803,720 $ 1,228,784 _______________________________________ (1) Excludes $0.7 million related to the acceleration of deferred compensation for restricted stock units that vested upon the departure of our former Executive Vice President and Chief Accounting Officer, which is included in the severance and related charges for the year ended December 31, 2017. Excludes $7 million related to the acceleration of deferred compensation for restricted stock units that vested upon the departure of our former President and Chief Executive Officer, which is included in severance and related charges for the year ended December 31, 2016. (2) Includes our share of recurring capital expenditures, leasing costs, and tenant and capital improvements from unconsolidated joint ventures. (3) Represents our 49% share of non-refundable entrance fees as the fees are collected by our CCRC JV, net of reserves and CCRC JV entrance fee amortization. (4) Excludes $17 million of deferred tax expenses, which is included in tax rate legislation impact for the three months and year ended December 31, 2017. Additionally, the year ended December 31, 2017, excludes $1 million of deferred tax benefit from the casualty- related charges, which is included in casualty-related charges (recoveries), net.

15 Other 10% Senior housing triple-net 24% SHOP 19% Life science 23% Medical office 24% Portfolio Summary As of and for the quarter ended December 31, 2017, dollars in thousands Property Count Age Investment Total Cash NOI and Interest Private Pay %(1) Property Portfolio Senior housing triple-net 181 19 $ 3,569,085 $ 77,265 93.0 SHOP 101 22 2,606,937 38,084 97.7 Life science 120 20 4,075,534 71,309 100.0 Medical office 243 23 4,088,786 74,163 100.0 Other 76 32 953,513 26,771 80.4 721 22 $ 15,293,855 $ 287,592 96.0 Debt Investments Other — N/A $ 332,015 $ 5,263 — HCP's Share of Unconsolidated JVs(2) SHOP 72 22 $ 1,191,030 $ 23,171 84.4 Life science 4 21 87,971 1,676 100.0 Medical office 3 23 17,019 425 100.0 Other 3 47 7,661 410 14.4 82 22 $ 1,303,681 $ 25,682 84.6 Developments SHOP (Unconsolidated JVs) 2 N/A $ 15,547 $ — — Life science 9 N/A 272,840 — — Medical office 3 N/A 43,044 — — 14 N/A $ 331,431 $ — — Redevelopments SHOP 1 N/A $ 2,257 $ — — Life science 2 N/A 31,243 — — Medical office 8 N/A 104,814 — — 11 N/A $ 138,314 $ — — Total Senior housing triple-net 181 19 $ 3,569,085 $ 77,265 93.0 SHOP 176 22 3,815,771 61,255 92.6 Life science 135 20 4,467,588 72,985 100.0 Medical office 257 23 4,253,663 74,588 100.0 Other 79 32 1,293,189 32,444 79.8 828 22 $ 17,399,296 $ 318,537 95.0 (1) Self-pay and private insurance (including managed care) revenues as a percentage of total property revenues for the most recent trailing 12 months available, weighted based on current quarter Total Cash NOI including assets sold in the quarter. Revenues for medical office properties are considered 100% private pay. (2) HCP’s pro rata share information is prepared on a basis consistent with the comparable consolidated amounts by applying our actual ownership percentage for the period, and is intended to reflect our proportionate economic interest in the financial position and operating results of properties in our portfolio and is calculated by applying our actual ownership percentage for the period. TOTAL CASH NOI AND INTEREST INCOME $318.5M

16 Portfolio Summary (1) Includes non-cash adjustments related to the Brookdale Transaction. For further discussion, see "Brookdale Transaction - Non-Cash NOI Impact" on page 51 of this report. (2) Total NOI and Total Cash NOI include $1.3 million and $4.8 million, respectively, attributable to non-controlling interests, excluding DownREITs. For the quarter ended December 31, 2017, dollars in thousands TOTAL NOI, TOTAL CASH NOI AND INTEREST INCOME Total Rental and Operating Revenues(1) Total Operating Expenses(1) Total NOI(1)(2) Total Cash NOI(2) Interest Income Total Cash NOI and Interest Income Wholly-Owned Senior housing triple-net $ 58,214 $ (892) $ 57,322 $ 77,265 $ — $ 77,265 SHOP 133,789 (129,265) 4,524 38,084 — 38,084 Life science 96,592 (21,977) 74,615 71,309 — 71,309 Medical office 120,077 (45,266) 74,811 74,163 — 74,163 Other 29,324 (1,269) 28,055 26,771 5,263 32,034 $ 437,996 $ (198,669) $ 239,327 $ 287,592 $ 5,263 $ 292,855 HCP's Share of Unconsolidated JVs SHOP $ 83,673 $ (66,761) $ 16,912 $ 23,171 $ — $ 23,171 Life science 2,013 (390) 1,623 1,676 — 1,676 Medical office 692 (306) 386 425 — 425 Other 428 (18) 410 410 — 410 $ 86,806 $ (67,475) $ 19,331 $ 25,682 $ — $ 25,682 Total Senior housing triple-net $ 58,214 $ (892) $ 57,322 $ 77,265 $ — $ 77,265 SHOP 217,462 (196,026) 21,436 61,255 — 61,255 Life science 98,605 (22,367) 76,238 72,985 — 72,985 Medical office 120,769 (45,572) 75,197 74,588 — 74,588 Other 29,752 (1,287) 28,465 27,181 5,263 32,444 $ 524,802 $ (266,144) $ 258,658 $ 313,274 $ 5,263 $ 318,537

17 Same Property Portfolio (1) Includes non-cash adjustments related to the Brookdale Transaction. For further discussion, see "Brookdale Transaction - Non-Cash NOI Impact" on page 51 of this report. (2) The fourth quarter 2017 SHOP Total SPP Cash NOI growth rate was impacted by: (i) outsized volume purchase rebates recorded in the fourth quarter of 2016 (3.0%); (ii) a portfolio of recently acquired and transitioned assets entering the SPP pool in fourth quarter 2017 prior to reaching stabilized occupancy (2.8%); (iii) an increase in sales and marketing expenses in fourth quarter 2017 to catch up from lower spend during the first half of 2017 and to better position the portfolio for 2018 (2.3%); and (iv) under-accrual by an operator of a utility bill which was provisioned for in fourth quarter 2017 (1.0%). Adjusting for these items, normalized fourth quarter 2017 SHOP Total SPP Cash NOI growth would be 0.8%. As of December 31, 2017, dollars in thousands, includes HCP's pro rata share of unconsolidated JVs SAME PROPERTY PORTFOLIO RECONCILIATION Senior Housing Triple-net SHOP Life Science Medical Office Other Total Total Property Count 181 176 135 257 79 828 Acquisitions — (1) (4) (27) — (32) Assets in Development — (2) (9) (3) — (14) Assets in Redevelopment — (1) (2) (8) — (11) Assets held for sale (2) (6) (4) — — (12) Unconsolidated JVs held for sale — (49) — — — (49) Change in reporting structure — (31) — — — (31) Completed Developments — (2) (3) (3) — (8) Assets impacted by casualty event — (1) — — — (1) Three-Month SPP Property Count 179 83 113 216 79 670 Acquisitions (5) (8) (1) — (1) (15) Change in reporting structure — (8) — — — (8) Completed Developments — — — (1) — (1) Full Year SPP Property Count 174 67 112 215 78 646 % of Property Portfolio based on Investment Year-Over-Year Sequential THREE-MONTH SPP Property Count Investment Occupancy Growth Occupancy Growth 4Q17 4Q16 Total SPPNOI Total SPP Cash NOI 4Q17 3Q17 Total SPP NOI Total SPP Cash NOI Senior housing triple-net 179 $ 3,520,582 99 86.4% 88.0% (1) 2.6% 86.4% 86.2% (1) 4.5% SHOP 83 2,718,067 72 87.0% 88.7% (1) (8.3%) (2) 87.0% 86.2% (1) (2.3%) Life science 113 3,306,527 79 94.7% 96.0% 5.7% 5.1% 94.7% 96.4% 2.2% (0.6%) Medical office 216 3,267,851 80 91.5% 92.4% 0.7% 2.1% 91.5% 91.8% 1.0% 0.9% Other 79 961,174 100 N/A N/A 1.9% 1.5% N/A N/A 0.4% 0.5% Total Portfolio 670 $ 13,774,201 83 (1) 1.2% (1) 1.0% % of Property Portfolio based on Investment Year-Over-Year FULL YEAR Property Count Investment Occupancy Growth 4Q17 4Q16 Total SPPNOI Total SPP Cash NOI Senior housing triple-net 174 $ 3,443,021 96 86.5% 87.9% (1) 5.6% SHOP 67 2,371,340 62 87.8% 89.5% (1) 0.2% Life science 112 3,276,223 79 94.7% 97.1% 3.3% 4.2% Medical office 215 3,200,422 78 91.5% 92.4% 1.9% 3.0% Other 78 943,265 98 N/A N/A 2.4% 1.2% Total Portfolio 646 $ 13,234,271 80 (1) 3.4%

18 Capitalization Dollars and shares in thousands, except price per share data TOTAL CAPITALIZATION December 31, 2017 Shares Value Total Value Common stock (NYSE: HCP) 469,436 $ 26.08 $ 12,242,891 Convertible partnership (DownREIT) units 6,617 26.08 172,571 Total Market Equity 476,053 $ 12,415,462 Consolidated debt N/A 7,880,466 Total Market Equity and Consolidated Debt 476,053 $ 20,295,928 HCP's share of unconsolidated JV debt N/A 351,075 Total Market Equity and Total Debt 476,053 $ 20,647,003 COMMON STOCK AND EQUIVALENTS Weighted Average Shares Weighted Average Shares Three Months Ended December 31, 2017 Twelve Months Ended December 31, 2017 Shares Outstanding December 31, 2017 Diluted EPS Diluted FFO Diluted FFO as adjusted Diluted EPS Diluted FFO Diluted FFO as adjusted Common stock 469,436 469,229 469,229 469,229 468,759 468,759 468,759 Common stock equivalent securities: Restricted stock units 1,138 — 127 127 120 120 120 Dilutive impact of options 32 — 32 32 56 56 56 Convertible partnership (DownREIT) units 6,617 — — — — — 4,685 Total common stock and equivalents 477,223 469,229 469,388 469,388 468,935 468,935 473,620

19 Indebtedness and Ratios As of December 31, 2017, dollars in thousands DEBT MATURITIES AND SCHEDULED PRINCIPAL REPAYMENTS (AMORTIZATION) Senior Unsecured Notes Mortgage Debt HCP's Share of Unconsolidated JV Debt Total Debt Bank Line of Credit(1) Term Loan(2) Amounts Rates %(3) Amounts Rates %(3) Consolidated Debt Amounts(4) Rates %(3) Amounts Rates %(3) 2018 $ — $ — $ — — $ 3,512 — $ 3,512 $ 22,344 4.31 $ 25,856 3.72 2019 — 228,674 450,000 3.95 3,700 — 682,374 17,660 4.21 700,034 3.23 2020 — — 800,000 2.79 3,758 5.08 803,758 11,726 4.22 815,484 2.82 2021 1,017,076 — 700,000 5.49 11,117 5.26 1,728,193 41,224 3.98 1,769,417 3.87 2022 — — 900,000 3.93 2,861 — 902,861 15,536 4.42 918,397 3.92 2023 — — 800,000 4.39 2,993 — 802,993 4,053 3.96 807,046 4.37 2024 — — 1,150,000 4.17 3,131 — 1,153,131 935 — 1,154,066 4.15 2025 — — 1,350,000 3.94 3,276 — 1,353,276 18,911 3.87 1,372,187 3.93 2026 — — — — 3,213 3.04 3,213 942 — 4,155 2.35 2027 — — — — 9,247 5.30 9,247 945 — 10,192 4.81 Thereafter — — 300,000 6.88 91,759 4.02 391,759 38,006 3.64 429,765 5.98 Subtotal $ 1,017,076 $ 228,674 $ 6,450,000 $ 138,567 $ 7,834,317 $ 172,282 $ 8,006,599 Other Debt(5) — — — — 94,165 180,011 274,176 (Discounts), premium and debt costs, net — (386) (53,549) 5,919 (48,016) (1,218) (49,234) Total $ 1,017,076 $ 228,288 $ 6,396,451 $ 144,486 $ 7,880,466 $ 351,075 $ 8,231,541 Weighted average interest rate % 2.74 1.79 4.19 4.19 3.93 3.99 3.93 Weighted average maturity in years 3.8 1.0 5.8 19.7 5.7 5.5 5.7 (1) Includes £105 million ($142 million) translated into U.S. dollars at December 31, 2017. On October 19, 2017, we closed on a new $2.0 billion credit facility which has the following features: (i) initial maturity date of October 19, 2021 with two 6-month committed extension options; (ii) annual interest cost of LIBOR plus 100 basis points and facility fee of 20 basis points based on our current unsecured credit ratings; and (iii) inclusion of a $750 million accordion feature which can be used to increase the facility size, subject to securing additional commitments. (2) Represents £169 million translated into U.S. dollars at December 31, 2017. (3) The rates are reported in the year in which the related debt matures. (4) Reflects pro rata share of mortgage and other debt in the Company's unconsolidated JVs. (5) Represents non-interest bearing Entrance Fee deposits at certain of the Company's senior housing facilities and demand notes that have no scheduled maturities.

20 Indebtedness and Ratios As of December 31, 2017, dollars in thousands, includes HCP's pro rata share of unconsolidated JVs DEBT STRUCTURE Weighted Average Balance % of Total Interest Rate Years to Maturity Secured Fixed rate $ 199,529 3 4.18% 15.5 Floating rate 111,320 1 3.89% 5.2 Combined $ 310,849 4 4.07% 11.8 Unsecured Fixed rate 6,450,000 80 4.19% 5.8 Floating rate 1,245,750 16 2.56% 3.3 Combined $ 7,695,750 96 3.92% 5.4 Total Fixed rate 6,649,529 83 4.19% 6.1 Floating rate 1,357,070 17 2.67% 3.4 Combined $ 8,006,599 100 3.93% 5.7 Other debt(1) 274,176 (Discounts), premiums and debt costs, net (49,234) Total Debt $ 8,231,541 FINANCIAL COVENANTS(2) Bank Line of Credit Requirement Actual Compliance Leverage Ratio No greater than 60% 48% Secured Debt Ratio No greater than 30% 4% Unsecured Leverage Ratio No greater than 60% 51% Fixed Charge Coverage Ratio (12 months) No less than 1.50x 3.5x Tangible net worth (in billions) No less than $6.5 $8.3 CREDIT RATINGS (SENIOR UNSECURED DEBT) Moody's Baa2 (Stable) S&P Global BBB (Positive) Fitch 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 JVs.

21 Investment Summary Acquisitions, Fundingsand Repayments For the three and twelve months ended December 31, 2017, dollars and square feet in thousands INVESTMENT SUMMARY Three Months Ended December 31, 2017 Twelve Months Ended December 31, 2017 Acquisitions $ 423,842 $ 561,942 Development fundings 61,459 229,321 Redevelopment fundings 17,454 51,588 Loan fundings 1,906 26,163 Total $ 504,661 $ 869,014 (1) In December, the Company also acquired Brookdale's 10% interest in the RIDEA III JV for $32 million. The acquisition of Brookdale's 10% interest in the RIDEA I JV for $63 million is expected to close in the first quarter of 2018. (2) Represents the average yield calculated using projected Cash NOI for the 12-month period following acquisition for stabilized properties, and 2019 Cash NOI for Shoreline and Hayden, which are in lease-up. (3) In June, the Company acquired two life science facilities in San Diego, CA, including a 50,000 square foot vacant building placed in redevelopment upon acquisition. (4) Includes $101 million of proceeds from our Four Seasons investment that was placed on cost recovery in 2015. As a result, no interest income was recognized in 2017. The remaining $35 million of proceeds earned a 5.7% yield to maturity. (5) HC-One debt investment earned an 8.3% yield to maturity. ACQUISITIONS(1) Date Capacity Property Count Property Type Purchase Price Forward Cash Yield(2) Wateridge(3) June 124 Sq. Ft. 2 Life science $ 26,100 IRA Portfolio July 138 Sq. Ft. 3 Medical office 48,500 Shoreline August 139 Sq. Ft. 1 Life science 63,500 Watertown November 90 Units 1 SHOP 45,000 Hayden December 397 Sq. Ft. 2 Life science 228,000 Montecito December 378 Sq. Ft. 11 Medical office 150,842 Total 20 $ 561,942 6.1% DEBT INVESTMENT REPAYMENTS Proceeds Date GBP USD Four Seasons(4) March £ 111,663 $ 135,682 HC-One(5) June 282,874 367,227 Total £ 394,537 $ 502,909

22 (1) Represents the average yield calculated using Cash NOI for the 12-month period prior to the sale for dispositions and for the 12-month period ended December 2017 for assets held for sale. (2) In January 2017, the Company sold a 40% interest in the RIDEA II JV, generating $480 million of proceeds, which included refinancing proceeds. On November 1, 2017, the Company agreed to sell its remaining 40% interest in the RIDEA II JV, generating proceeds of $332 million. The transaction is expected to close in 2018. (3) Represents the sale of land held for development and is excluded from the trailing yield calculation. (4) In January 2018, a SHOP asset sold to Brookdale for $32 million and the West Palm Beach asset sold for $3 million. ASSETS HELD FOR SALE Held for Sale Date Capacity Property Count Property Type Projected Sales Price Trailing Cash Yield(1) South San Francisco, CA August 337 Sq. Ft. 4 Life science $ 269,400 Various, Brookdale(4) November 995 Units 6 SHOP / Senior housing 274,858 West Palm Beach, FL(4) December 34 Units 1 SHOP 3,350 Sterling Heights, MI December 120 Units 1 SHOP 28,000 HCP's Share of Unconsolidated JVs RIDEA II JV(2) November 5,092 Units 49 SHOP 332,000 61 $ 907,608 7.3% Investment Summary Dispositions andAssets Held for Sale For the year ended December 31, 2017, dollars and square feet in thousands DISPOSITIONS Date Capacity Property Count Property Type Sales Price Trailing Cash Yield(1) Salt Lake City, UT January 324 Sq. Ft. 4 Life science $ 75,750 Memphis, TN January 130 Units 1 SHOP 2,250 RIDEA II sale of partnership interest(2) January N/A N/A SHOP 363,200 Palm Beach Gardens, FL February 199 Beds 1 Hospital 43,426 Various Brookdale March 5,967 Units 64 Senior housing 1,125,000 San Diego, CA(3) April 18 Acres — Life science 26,750 San Diego, CA April 15 Sq. Ft. 1 Life science 4,650 Conifer, CO June 10 Sq. Ft. 1 Medical office 750 Various Brookdale August 130 Units 2 Senior housing 14,500 Various, SC October 133 Units 2 Senior housing 12,000 Atlantis, FL November 32 Sq. Ft. 1 Medical office 11,250 Cincinnati, OH November 124 Units 1 SHOP 24,000 Various MOBs December 70 Sq. Ft. 2 Medical office 2,600 Various, GA December 195 Units 3 SHOP 16,750 HCP's Share of Unconsolidated JVs Statesboro, GA December 60 Beds 1 Skilled Nursing 1,920 84 $ 1,724,796 7.7%

23 Developments As of December 31, 2017, dollars and square feet in thousands DEVELOPMENT PROJECTS IN PROCESS Name of Project MSA Segment Property Count(1) Placed in Service(2) Construction in Process ("CIP") Cost to Complete Total at Completion Wholly-Owned Pearland II Houston, TX Medical office 1 $ 8,698 $ 8,595 $ 1,507 $ 18,800 Sky Ridge Denver, CO Medical office 1 24,429 9,994 3,128 37,551 Cypress Houston, TX Medical office 1 21,559 11,481 7,166 40,206 The Cove at Oyster Point - Phase II San Francisco, CA Life science 1 105,008 113,792 3,410 222,210 Ridgeview San Diego, CA Life science 3 — 44,502 17,498 62,000 The Cove at Oyster Point - Phase III San Francisco, CA Life science 2 — 66,306 144,805 211,111 Medical City Dallas Garage Dallas, TX Medical office N/A — 12,974 3,326 16,300 Sorrento Summit San Diego, CA Life science 1 — 1,070 14,930 16,000 Sierra Point - Phase I San Francisco, CA Life science 2 — 47,170 171,858 219,028 12 $ 159,694 $ 315,884 $ 367,628 $ 843,206 HCP's Share of Unconsolidated JVs Otay Ranch San Diego, CA SHOP 1 — 9,256 18,588 27,844 Waldwick New York, NY SHOP 1 — 6,291 19,601 25,892 2 — $ 15,547 $ 38,189 $ 53,736 14 $ 159,694 $ 331,431 $ 405,817 $ 896,942 Projected stabilized yield typically ranges from 6.0% - 8.0% Project Capacity Name of Project Health System Affiliate Placed In Service/ Occupied Under Construction Total Project Unit of Measure % of Total Project Leased Project Start Actual / Estimated Occupancy Initial Stabilized Wholly-Owned Pearland II Memorial Hermann 38 59 97 Sq. Ft. 79 2Q14 1Q16 3Q18 Sky Ridge HCA 63 55 118 Sq. Ft. 67 3Q14 1Q16 2Q18 Cypress Memorial Hermann 83 82 165 Sq. Ft. 50 1Q15 1Q16 3Q18 The Cove at Oyster Point - Phase II N/A 115 116 231 Sq. Ft. 100 1Q16 3Q17 1Q18 Ridgeview N/A — 301 301 Sq. Ft. 50 2Q16 3Q18 1Q19 The Cove at Oyster Point - Phase III N/A — 336 336 Sq. Ft. — 4Q16 4Q18 4Q19 Medical City Dallas Garage HCA — N/A N/A N/A N/A 1Q17 N/A N/A Sorrento Summit N/A — 28 28 Sq. Ft. 100 3Q17 3Q19 3Q19 Sierra Point - Phase I N/A — 215 215 Sq. Ft. — 4Q17 4Q19 4Q20 299 1,192 1,491 43 HCP's Share of Unconsolidated JVs Otay Ranch N/A — 111 111 Units N/A 2Q17 3Q18 4Q20 Waldwick N/A — 79 79 Units N/A 3Q17 4Q18 4Q20 190 190 N/A (1) Property counts exclude properties placed in service for development projects that encompass more than one property. (2) Cash NOI and NOI for assets placed in service was $2.1 million and $3.2 million, respectively, for the three months ended December 31, 2017.

24 Redevelopments and Land Held for Development(1) As of December 31, 2017, dollars and square feet in thousands REDEVELOPMENT PROJECTS IN PROCESS Incremental Costs Name of Project MSA Segment Property Count Investment Placed in Redevelopment(2) Placed in Service CIP Cost to Complete Total Total at Completion Project Start Estimated Completion Wholly-Owned Yorktown Washington, DC Medical office 1 $ — $ 429 $ 4,422 $ 1,357 $ 6,208 $ 6,208 3Q16 1Q18 Aurora I and II Denver, CO Medical office 2 — 1,096 6,854 379 8,329 8,329 3Q16 1Q18 Sunrise Tower IV Las Vegas, NV Medical office 1 — 1,082 5,291 477 6,850 6,850 3Q16 1Q18 Museum Medical Tower Houston, TX Medical office 1 — 2,009 6,638 1,401 10,048 10,048 3Q16 1Q18 One Fannin Houston, TX Medical office 1 — 2,595 4,133 2,221 8,949 8,949 4Q16 1Q18 3535 Market Street Philadelphia, PA Medical office 1 67,108 6,131 10,222 23,447 39,800 106,908 2Q17 2Q18 Directors Place - 4939 San Diego, CA Life science 1 19,180 — 3,358 5,684 9,042 28,222 2Q17 4Q18 Wateridge San Diego, CA Life science 1 7,906 — 799 11,858 12,657 20,563 2Q17 4Q18 Encino Los Angeles, CA Medical office 1 — 13 146 9,521 9,680 9,680 3Q17 4Q18 West Bay Providence, RI SHOP 1 — — 2,257 703 2,960 2,960 3Q17 1Q18 11 $ 94,194 $ 13,355 $ 44,120 $ 57,048 $ 114,523 $ 208,717 Projected stabilized return on incremental capital invested typically ranges from 9.0% to 12.0% LAND HELD FOR DEVELOPMENT Project MSA Segment Gross Site Acreage Estimated Rentable Sq. Ft. / Units Investment to Date Wholly-Owned Sierra Point San Francisco, CA Life science 14 365 Sq. Ft. $ 53,265 Forbes Research Center San Francisco, CA Life science 8 326 Sq. Ft. 46,537 The Cove at Oyster Point - Phase IV San Francisco, CA Life science 2 164 Sq. Ft. 12,818 Brittania Modular Labs III San Francisco, CA Life science 2 106 Sq. Ft. 10,762 Poway II San Diego, CA Life science 26 465 Sq. Ft. 42,669 Torrey Pines Science Center San Diego, CA Life science 6 93 Sq. Ft. 11,510 Directors Place San Diego, CA Life science 4 82 Sq. Ft. 6,000 Remaining Various Various 13 N/A 4,588 75 1,601 Sq. Ft. $ 188,149 HCP's Share of Unconsolidated JVs Oakmont Village Santa Rosa, CA SHOP 3 74 Units $ 2,292 Brandywine Philadelphia, PA SHOP 8 67 Units 797 11 141 Units $ 3,089 86 $ 191,238 (1) Redevelopments are excluded from SPP until they are Stabilized. See Glossary for further definition. (2) Represents the Investment for buildings or portions of buildings placed in redevelopment. Projects with no Investment placed in Redevelopment represent buildings that remained in operations but were removed from SPP.

25 Capital Expenditures For the quarter ended December 31, 2017, dollars in thousands, except per unit/square foot Senior Housing Triple-net SHOP Life Science Medical Office Other Total Wholly-Owned Recurring capital expenditures $ 4,971 $ 5,929 $ 1,566 $ 8,366 $ — $ 20,832 Tenant improvements - 2nd generation — — 2,562 5,474 — 8,036 Lease commissions — — 6,927 4,257 — 11,184 FAD capital expenditures $ 4,971 $ 5,929 (1) $ 11,055 $ 18,097 $ — $ 40,052 Revenue enhancing capital expenditures 5,304 8,793 (2) 2,535 2,120 — 18,752 Casualty related capital expenditures — 599 — 297 — 896 Initial Capital Expenditures ("ICE")(3) — 1,451 — 457 — 1,908 Tenant improvements - 1st generation — — 3,213 11,229 — 14,442 Development — 19 50,165 7,665 — 57,849 Redevelopment — 928 1,369 15,157 — 17,454 Capitalized interest — 19 2,894 1,417 — 4,330 Total capital expenditures $ 10,275 $ 17,738 $ 71,231 $ 56,439 $ — $ 155,683 HCP's Share of Unconsolidated JVs Recurring capital expenditures $ — $ 3,541 $ — $ 243 $ — $ 3,784 Tenant improvements - 2nd generation — — — 16 — 16 Lease commissions — — 770 57 — 827 FAD capital expenditures $ — $ 3,541 $ 770 $ 316 $ — $ 4,627 Revenue enhancing capital expenditures — 2,688 — — — 2,688 Development — 3,610 — — — 3,610 Capitalized interest — 2 — — — 2 Total capital expenditures $ — $ 9,841 $ 770 $ 316 $ — $ 10,927 Total including unconsolidated JVs $ 10,275 $ 27,579 $ 72,001 $ 56,755 $ — $ 166,610 Recurring capital expenditures per unit/sq. ft.(4) (5) $487 per Unit $0.21 per Sq. Ft. $0.47 per Sq. Ft. (1) Includes $0.4 million attributable to non-controlling interests. (2) Revenue enhancing capital expenditures per unit for SHOP are $590. The per unit based on majority type is $863, $283 and $572 for AL, IL and CCRC, respectively. (3) 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. (4) Recurring capital expenditures per unit for SHOP are $487. The per unit based on majority type is $406, $567 and $512 for AL, IL and CCRC, respectively. (5) Senior housing triple-net per unit is not presented as it is not meaningful. Fourth Quarter

26 Capital Expenditures (1) Includes $1.8 million attributable to non-controlling interests. (2) Revenue enhancing capital expenditures per unit for SHOP is $1,890. The per unit based on majority type is $1,898, $1,179 and $3,172 for AL, IL and CCRC, respectively. (3) Recurring capital expenditures per unit for SHOP is $1,562. The per unit based on majority type is $1,392, $1,676 and $1,693 for AL, IL and CCRC, respectively. (4) Senior housing triple-net per unit and Other per bed are not presented as they are not meaningful. For the twelve months ended December 31, 2017, dollars in thousands, except per unit/square foot Senior Housing Triple-net SHOP Life Science Medical Office Other Total Wholly-Owned Recurring capital expenditures $ 7,074 $ 19,913 $ 4,339 $ 18,425 $ 132 $ 49,883 Tenant improvements - 2nd generation — — 9,009 21,974 — 30,983 Lease commissions (140) 140 19,148 15,243 3 34,394 FAD capital expenditures $ 6,934 $ 20,053 (1) $ 32,496 $ 55,642 $ 135 $ 115,260 Revenue enhancing capital expenditures 25,269 21,240 (2) 4,241 3,153 — 53,903 Casualty related capital expenditures — 599 — 297 — 896 ICE — 5,660 94 2,368 — 8,122 Tenant improvements - 1st generation — — 16,724 25,982 — 42,706 Development — (301) 190,387 26,668 — 216,754 Redevelopment — 2,257 3,394 45,937 — 51,588 Capitalized interest — 104 12,713 4,120 — 16,937 Total capital expenditures $ 32,203 $ 49,612 $ 260,049 $ 164,167 $ 135 $ 506,166 HCP's Share of Unconsolidated JVs Recurring capital expenditures $ — $ 9,477 $ 16 $ 331 $ — $ 9,824 Tenant improvements - 2nd generation — — — 17 — 17 Lease commissions — — 785 77 — 862 FAD capital expenditures $ — $ 9,477 $ 801 $ 425 $ — $ 10,703 Revenue enhancing capital expenditures — 14,325 — 2 — 14,327 ICE — 10 — — — 10 Tenant improvements - 1st generation — — 52 — — 52 Development — 12,567 — — — 12,567 Capitalized interest — 23 — — — 23 Total capital expenditures $ — $ 36,402 $ 853 $ 427 $ — $ 37,682 Total including unconsolidated JVs $ 32,203 $ 86,014 $ 260,902 $ 164,594 $ 135 $ 543,848 Recurring capital expenditures per unit/sq. ft.(3) (4) $1,562 per Unit $0.60 per Sq. Ft. $1.03 per Sq. Ft. (4) Full Year

27 Portfolio Diversification As of and for the quarter ended December 31, 2017, dollars in thousands, includes HCP's pro rata share of unconsolidated JVs TOTAL CASH NOI AND INTEREST INCOME BY MSA MSA Property Count Senior Housing Triple-net SHOP Life Science Medical Office Other Total % of Total San Francisco, CA 79 $ 2,557 $ — $ 47,447 $ 773 $ — $ 50,777 16 Dallas, TX 46 2,309 1,477 — 9,112 7,083 19,981 6 Houston, TX 41 1,060 6,656 — 9,138 333 17,187 5 San Diego, CA 38 790 429 13,423 2,142 — 16,784 5 Denver, CO 22 2,118 4,170 — 4,746 — 11,034 3 Philadelphia, PA 7 5,005 1,860 — 3,616 — 10,481 3 Washington, DC 20 6,635 1,720 — 939 — 9,294 3 San Jose, CA 15 — — 8,602 617 — 9,219 3 Los Angeles, CA 13 2,431 1,537 — 1,277 3,660 8,905 3 Seattle, WA 13 2,734 — — 6,102 — 8,836 3 Remaining 520 51,626 43,406 3,513 36,126 16,105 150,776 48 Cash NOI 814 $ 77,265 $ 61,255 $ 72,985 $ 74,588 $ 27,181 $ 313,274 98 Interest income — — — — — 5,263 5,263 2 Total 814 $ 77,265 $ 61,255 $ 72,985 $ 74,588 $ 32,444 $ 318,537 100

28 As of and for the quarter ended December 31, 2017, dollars in thousands, includes HCP's pro rata share of unconsolidated JVs TOTAL CASH NOI AND INTEREST INCOME BY OPERATOR/TENANT Tenant/Credit Exposure SHOP/Operator Exposure Operator/Tenant Property Count Senior Housing Triple-net Life Science Medical Office Other Total % of Total Cash NOI and Interest Income Property Count SHOP % of Total Cash NOI and Interest Income Brookdale 78 $ 32,669 $ — $ — $ — $ 32,669 10 140 $ 55,372 18 Sunrise Senior Living 48 25,889 — — — 25,889 8 — — — Amgen 7 — 12,717 — — 12,717 4 — — — Google 11 — 7,719 — — 7,719 2 — — — Hospital Corporation of America 6 — — 819 5,644 6,463 2 — — — Maria Mallaband Care Group 25 — — — 5,990 5,990 2 — — — Remaining 465 18,707 52,549 73,769 20,810 165,835 52 34 5,883 2 640 $ 77,265 $ 72,985 $ 74,588 $ 32,444 $ 257,282 80 174 $ 61,255 20 PRO FORMA TOTAL CASH NOI AND INTEREST INCOME BY OPERATOR/TENANT(1) Tenant/Credit Exposure SHOP/Operator Exposure Operator/Tenant Property Count Senior Housing Triple-net Life Science Medical Office Other Total % of Total Cash NOI and Interest Income Property Count SHOP % of Total Cash NOI and Interest Income Brookdale Senior Living 43 $ 18,605 $ — $ — $ — $ 18,605 7 35 $ 29,172 10 Sunrise Senior Living 48 25,889 — — — 25,889 9 — — — Amgen 7 — 12,717 — — 12,717 5 — — — Google 11 — 7,719 — — 7,719 3 — — — Hospital Corp of America 6 — — 819 5,644 6,463 2 — — — Harbor Retirement Associates 14 4,749 — — — 4,749 2 — — — Remaining 411 13,957 48,086 75,148 15,265 152,456 54 64 22,573 8 540 $ 63,200 $ 68,522 $ 75,967 $ 20,909 $ 228,598 82 99 $ 51,745 18 Portfolio Diversification (1) Pro forma to reflect the Brookdale Transaction, and the sale of: our U.K. holdings, the remaining 40% interest in the RIDEA II JV, four life science properties that are held for sale, and certain other previously announced sales. Pro forma Total Cash NOI is further adjusted to reflect acquisitions and dispositions as if they occurred on the first day of the quarter.

29 Expirations and Maturities As of December 31, 2017, dollars in thousands, includes HCP's pro rata share of unconsolidated JVs EXCLUDES PURCHASE AND PREPAYMENT OPTIONS Annualized Base Rent Year Total % of Total Senior Housing Triple-net Life Science Medical Office Other Interest Income 2018(1) $ 97,712 9 $ 6,191 $ 18,321 $ 70,442 $ 1,006 $ 1,752 2019 95,264 9 2,238 31,907 53,525 7,594 — 2020 127,606 11 39,646 19,994 58,562 8,385 1,019 2021 105,058 9 10,191 50,523 39,353 1,870 3,121 2022 80,104 7 1,513 22,656 41,882 13,179 874 2023 133,489 12 44,926 60,929 17,227 — 10,407 2024 59,597 5 18,052 4,618 21,552 15,375 — 2025 99,857 9 9,618 37,191 32,429 20,619 — 2026 33,278 3 5,746 8,991 18,541 — — 2027 41,822 4 12,090 15,328 14,404 — — Thereafter 244,856 22 154,241 27,828 24,052 38,735 — $ 1,118,643 100 $ 304,452 $ 298,286 $ 391,969 $ 106,763 $ 17,173 Weighted average maturity in years 6.3 9.1 5.4 4.3 8.0 4.6 REFLECTS PURCHASE AND PREPAYMENT OPTIONS Annualized Base Rent Year Total % of Total Senior Housing Triple-net Life Science Medical Office Other Interest Income(2) 2018(1) $ 104,916 9 $ 6,191 $ 18,321 $ 76,716 $ 1,006 $ 2,682 2019 117,624 11 2,238 31,907 50,340 21,713 11,426 2020 130,763 12 39,646 25,982 56,750 8,385 — 2021 115,642 10 10,191 50,523 50,867 1,870 2,191 2022 78,331 7 1,513 22,656 40,109 13,179 874 2023 120,621 11 44,926 60,929 14,766 — — 2024 44,959 4 18,052 4,618 21,033 1,256 — 2025 100,650 9 9,618 37,191 33,222 20,619 — 2026 24,514 2 5,746 8,991 9,777 — — 2027 41,755 4 12,090 15,328 14,337 — — Thereafter 238,868 21 154,241 21,840 24,052 38,735 — $ 1,118,643 100 $ 304,452 $ 298,286 $ 391,969 $ 106,763 $ 17,173 (1) Includes month-to-month and holdover leases. (2) Reflects the earliest point at which there is no prepayment penalty.

30 2.2 5x 2.0 0x 1.7 5x 1.5 0x 1.2 5x 1.0 0x 0.7 5x 0.5 0x0 2 4 6 8 10 12 14 16 18 20 1.2% 0.6% 1.3% 1.0% 1.0% 1.6% 1.1% 1.4% 2.2% 1.4% 1.5%0.7% 2.4% 1.9% 1.5% 0.6% 1.0% 1.2% 0.2% 0.1% 0.1% 0.4% 0.4% 0.2% 0.1% 0.3% 0.4% Triple-Net Master Lease Profile(1)(2) 25 13.00 x FACILITY EBIT D AR CFC (TRAILING 12 MONTHS ENDED 09/30/2017 ) HIGHER RIS K LOWER RIS K HIGHER RISK LOWER RISK TERM (YEARS TO EXPIRATION) % Senior Housing Other No Corporate Guaranty Share of Total Cash NOI and Interest Income INVESTMENT TYPE (1) Excludes properties held for sale or sold, master leases with properties acquired during the period required to calculate CFC and master leases that include newly completed development that are not stabilized. (2) Pro forma to reflect the Brookdale Transaction. In connection with the agreement, multiple leases with Brookdale were combined into a single master lease with varying maturities. The varying maturities are reflected in the graph based on their renewal terms. (3) Represents the percentage of Total Cash NOI supported by a corporate guaranty. Facility EBITDAR CFC % of HCP Total Cash NOI and Interest Income # of Leases/ Data Points Weighted Average Maturity in Years Guaranty(3) Less than 1.0x 3.9 7 7.4 55.6% 1.00x - 1.25x 8.1 7 5.6 70.0% 1.26x - 1.50x 9.6 8 13.5 54.3% 1.51x and above 4.3 5 6.6 100.0%

31 Senior Housing Triple-net As of and for the quarter ended December 31, 2017, dollars in thousands, except REVPOR Property Portfolio Property Count Investment Cash NOI Units Occupancy % REVPOR Triple-Net Facility EBITDARM CFC Facility EBITDAR CFC Assisted living 150 $ 2,638,542 $ 53,927 12,870 86.0 $ 6,259 1.29x 1.08x Independent living 25 535,301 12,419 3,379 86.8 3,699 1.19x 1.05x CCRC 6 395,242 10,919 2,082 86.9 6,022 1.35x 1.15x Total 181 $ 3,569,085 $ 77,265 18,331 86.3 $ 5,749 1.28x 1.09x Properties Operator Investment Cash NOI Count % Pooled Units Occupancy % REVPOR Triple- Net Facility EBITDARM CFC Facility EBITDAR CFC Brookdale(1) $ 1,365,066 $ 32,669 78 97 8,057 86.8 $ 4,899 1.28x 1.11x Sunrise Senior Living 1,364,892 25,889 48 98 5,547 86.2 7,331 1.35x 1.10x Harbor Retirement Associates 212,649 4,749 14 100 1,343 78.9 5,784 1.26x 1.06x Aegis Senior Living 182,152 4,530 10 80 701 91.5 8,232 1.33x 1.16x Capital Senior Living 181,988 4,381 15 100 1,510 83.9 3,289 1.08x 0.94x Remaining 262,338 5,047 16 56 1,173 92.9 5,603 1.11x 0.97x Subtotal excluding Brookdale $ 2,204,019 $ 44,596 103 90 10,274 85.8 $ 6,443 1.29x 1.07x Total(1) $ 3,569,085 $ 77,265 181 93 18,331 86.3 $ 5,749 1.28x 1.09x (1) Brookdale Facility EBITDARM and EBITDAR CFC, pro forma to reflect the Brookdale Transaction, is 1.48x and 1.28x, respectively. Total Facility EBITDARM and EBITDAR CFC, pro forma to reflect the Brookdale Transaction, is 1.34x and 1.13x, respectively.

32 Senior Housing Triple-net Dollars in thousands, except REVPOR 4Q16 1Q17 2Q17 3Q17 4Q17 Property count 179 179 179 179 179 Investment $ 3,493,433 $ 3,500,167 $ 3,503,104 $ 3,511,361 $ 3,520,582 Units 18,130 18,124 18,123 18,126 18,123 Occupancy % 88.0 87.7 87.1 86.2 86.4 REVPOR Triple-net $ 5,652 $ 5,650 $ 5,753 $ 5,767 $ 5,768 Facility EBITDARM CFC 1.38x 1.37x 1.36x 1.33x 1.29x (1) Facility EBITDAR CFC 1.17x 1.16x 1.15x 1.12x 1.09x (1) Rental and Operating Revenues $ 71,584 $ 70,222 $ 71,526 $ 71,284 $ 41,748 (2) Operating Expenses 198 (128) (127) (170) (131) NOI $ 71,782 $ 70,094 $ 71,399 $ 71,114 $ 41,617 (2) Cash Rental and Operating Revenues $ 73,887 $ 71,003 $ 73,416 $ 72,909 $ 76,160 Cash Operating Expenses 211 (115) (114) (157) (118) Cash NOI $ 74,098 $ 70,888 $ 73,302 $ 72,752 $ 76,042 Year-Over-Year Three-Month SPP Growth 2.6% Same Property Portfolio (1) Total Facility EBITDARM and EBITDAR CFC, pro forma to reflect the Brookdale Transaction, is 1.34x and 1.13x, respectively. (2) Includes non-cash adjustments related to the Brookdale Transaction. For further discussion, see "Brookdale Transaction - Non-Cash NOI Impact" on page 51 of this report.

33 Senior Housing Triple-net As of and for the quarter ended December 31, 2017, dollars in thousands NEW SUPPLY ANALYSIS HCP Portfolio 5-Mile Radius(1) MSA Units Cash NOI % of Triple- net Cash NOI Properties/ Units Under Construction(2) Cash NOI Exposed to New Supply(3) 5-Year 80+ Population Growth % 2017-2022 80+ Penetration Rate % Qualified Care Giver % Median Household Income Median Home Value Unemploy- ment % US National Average 10.6 11.4 4.7 $ 56 $ 207 5.5 Washington, DC 1,397 $ 6,635 8.6 6 / 624 $ 3,428 14.9 7.3 9.0 102 510 3.1 New York, NY 1,146 6,440 8.3 7 / 796 3,753 8.6 3.0 5.3 89 525 4.8 Philadelphia, PA 728 5,005 6.5 -- / -- — 4.4 7.1 4.9 57 231 7.8 Seattle, WA 513 2,734 3.5 2 / 122 1,615 10.6 8.9 8.0 84 489 4.1 Portland, OR 986 2,664 3.4 3 / 356 1,089 10.9 10.5 5.8 63 306 4.9 San Francisco, CA 359 2,557 3.3 1 / 16 1,707 10.9 9.2 7.4 84 570 4.9 Baltimore, MD 293 2,524 3.3 3 / 274 2,210 9.7 5.9 6.1 75 311 5.8 Los Angeles, CA 384 2,431 3.1 1 / 40 479 7.5 4.8 5.4 71 666 4.5 Chicago, IL 530 2,315 3.0 4 / 322 1,174 7.2 4.1 4.9 75 299 6.4 Dallas, TX 847 2,309 3.0 2 / 225 340 14.5 8.4 5.5 63 164 5.2 Denver, CO 414 2,118 2.7 2 / 216 2,118 13.2 11.4 5.5 64 349 2.9 Providence, RI 276 1,952 2.5 -- / -- — 3.6 5.1 5.0 57 312 5.3 Jacksonville, FL 486 1,952 2.5 -- / -- — 11.6 10.1 4.2 54 210 5.6 Charlotte, NC 586 1,910 2.5 -- / -- — 16.1 12.8 5.9 62 234 5.2 Atlanta, GA 560 1,588 2.1 4 / 515 748 12.9 10.1 6.3 65 288 4.2 Austin, TX 269 1,541 2.0 -- / -- — 14.1 11.4 5.1 53 378 4.2 Sebastian, FL 298 1,465 1.9 -- / -- — 7.8 3.4 3.9 47 222 10.1 Sacramento, CA 352 1,294 1.7 -- / -- — 7.2 6.4 5.4 67 349 6.6 Detroit, MI 330 1,220 1.6 4 / 436 889 8.1 6.3 7.5 71 223 4.7 Nashville, TN 334 1,214 1.6 1 / 91 267 18.1 13.9 9.3 90 363 2.8 Remaining 7,243 25,397 32.9 6 / 567 2,584 9.5 6.5 5.2 58 255 5.2 Total 18,331 $ 77,265 100 46 / 4,600 $ 22,401 8.7 6.6 5.9 $ 69 $ 339 5.4 % of Total Cash NOI and Interest Income 7.0% (1) Demographic data provided by Environmental Systems Research (“ESRI”) for 2017. Construction and supply data provided by National Investment Center for Senior Housing and Care (“NIC”) for the quarter ended December 31, 2017. Data reflects a 5-mile radius (10-mile for Entrance Fee CCRCs) around each community and is weighted by Cash NOI. See Glossary 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 material expansions. New Supply

34 SHOP As of and for the quarter ended December 31, 2017, dollars in thousands, except REVPOR INVESTMENTS(1) Property Count Investment Total Cash NOI Units Occupancy % REVPOR SHOP Wholly-Owned AL 68 $ 1,181,196 $ 14,057 6,514 83.7 $ 4,412 IL 32 1,377,738 23,078 6,852 90.0 3,543 CCRC 2 48,003 949 378 87.5 7,541 102 $ 2,606,937 $ 38,084 13,744 87.3 $ 3,978 HCP's Share of Unconsolidated JVs AL 50 $ 389,017 $ 5,960 5,252 82.7 $ 5,528 IL 6 75,494 1,142 724 97.0 3,331 CCRC 16 726,519 16,069 7,492 85.5 6,222 72 $ 1,191,030 $ 23,171 13,468 85.0 $ 5,838 Total 174 $ 3,797,967 $ 61,255 27,212 86.5 $ 4,598 Operator Brookdale 140 $ 3,178,472 $ 55,372 23,798 87.1 $ 4,630 Atria Senior Living 6 133,483 3,156 916 90.4 3,891 Senior Lifestyle Corp. 7 196,546 1,848 640 78.2 5,358 MBK Senior Living 5 87,449 1,541 640 94.7 4,455 Remaining 16 202,017 (662) 1,218 74.9 4,077 Total 174 $ 3,797,967 $ 61,255 27,212 86.5 $ 4,598 (1) Excludes two properties that are in development.

35 (1) Units and REVPOR SHOP are based on the majority type within each community. AL includes needs-based care such as memory care. SHOP MSA As of and for the quarter ended December 31, 2017, dollars in thousands, except REVPOR, includes HCP's pro rata share of unconsolidated JVs OPERATING PORTFOLIO METRICS % of Total Cash NOI Units(1) REVPOR SHOP(1) MSA Investment Total Cash NOI AL IL CCRC Occupancy % AL IL CCRC Tampa, FL $ 325,889 $ 7,668 12.5 182 424 2,178 87.7 $ 3,938 $ 3,742 $ 6,321 Houston, TX 376,773 6,656 10.9 87 1,835 449 93.3 5,833 2,505 7,053 Miami, FL 278,131 4,419 7.2 736 964 — 83.6 4,264 3,955 — Denver, CO 296,488 4,170 6.8 154 702 — 93.1 4,020 4,393 — Orlando, FL 110,718 3,278 5.4 232 — 1,007 83.2 4,136 — 7,168 Chicago, IL 230,184 2,767 4.5 348 947 — 83.6 6,871 3,719 — Jacksonville, FL 92,848 1,918 3.1 — — 543 84.5 — — 8,476 Sarasota, FL 153,455 1,906 3.1 259 164 746 75.6 4,002 5,086 5,348 Philadelphia, PA 63,789 1,860 3.0 — — 435 96.1 — — 7,467 Washington, DC 138,617 1,720 2.8 541 — — 83.2 5,952 — — Punta Gorda, FL 39,300 1,694 2.8 — — 662 83.9 — — 6,183 Los Angeles, CA 54,682 1,537 2.5 445 — — 91.3 6,092 — — Dallas, TX 80,174 1,477 2.4 453 257 — 87.2 3,905 2,142 — Baltimore, MD 124,235 1,380 2.3 522 — — 80.1 5,610 — — Providence, RI 124,183 1,275 2.1 534 171 134 83.3 4,650 3,257 — Memphis, TN 77,645 1,235 2.0 48 182 — 95.7 3,930 5,864 — Richmond, VA 69,518 1,178 1.9 303 — — 82.8 5,336 — — Phoenix, AZ 41,922 1,156 1.9 — 211 — 92.4 — 3,962 — Austin, TX 49,063 1,073 1.8 276 — — 95.2 5,761 — — Riverside, CA 56,035 878 1.4 590 — — 88.3 4,079 — — Remaining 1,014,318 12,010 19.6 6,056 1,719 1,716 85.5 4,528 3,696 4,888 Total $ 3,797,967 $ 61,255 100.0 11,766 7,576 7,870 86.5 $ 4,741 $ 3,533 $ 6,306

36 SHOP Trend Dollars in thousands, except REVPOR, includes HCP's pro rata share of unconsolidated JVs TOTAL OPERATING PORTFOLIO 4Q16 1Q17(1) 2Q17 3Q17 4Q17 Property count 152 153 153 156 174 Investment $ 3,986,662 $ 3,481,155 $ 3,500,131 $ 3,533,382 $ 3,797,967 Units 25,407 25,472 25,484 25,674 27,212 Occupancy % 87.8 87.6 86.2 85.9 86.5 REVPOR SHOP $ 4,440 $ 4,493 $ 4,536 $ 4,548 $ 4,598 Total Rental and Operating Revenues $ 238,285 $ 216,592 $ 206,784 $ 207,976 $ 217,462 Total Operating Expenses (171,468) (154,066) (151,353) (151,856) (196,026) (2) Total NOI $ 66,817 $ 62,526 $ 55,431 $ 56,120 $ 21,436 (2) Total Cash Rental and Operating Revenues $ 243,083 $ 220,199 $ 211,596 $ 213,194 $ 222,958 Total Cash Operating Expenses (171,468) (154,519) (151,642) (152,523) (161,703) Total Cash NOI $ 71,615 $ 65,680 $ 59,954 $ 60,671 $ 61,255 Cash NOI Margin % 29.5 29.8 28.3 28.5 27.5 (1) Reflects the January 2017 sale of a 40% interest in RIDEA II. (2) Includes non-cash adjustments related to the Brookdale Transaction. For further discussion, see "Brookdale Transaction - Non-Cash NOI Impact" on page 51 of this report.

37 SHOP Same Property Portfolio Dollars in thousands, except REVPOR, includes HCP's pro rata share of unconsolidated JVs TOTAL SHOP(1) 4Q16 1Q17 2Q17 3Q17 4Q17 Property count 83 83 83 83 83 Investment $ 2,675,093 $ 2,682,869 $ 2,696,531 $ 2,703,383 $ 2,718,067 Units 17,553 17,545 17,593 17,598 17,597 Occupancy % 88.7 88.1 86.8 86.2 87.0 REVPOR SHOP $ 4,069 $ 4,169 $ 4,187 $ 4,192 $ 4,191 Total Rental and Operating Revenues $ 146,838 $ 149,322 $ 147,773 $ 146,991 $ 148,400 Total Operating Expenses (104,007) (105,633) (107,743) (106,891) (142,074) (2) Total NOI $ 42,831 $ 43,689 $ 40,030 $ 40,100 $ 6,326 (2) Total Cash Rental and Operating Revenues $ 146,844 $ 149,275 $ 147,873 $ 147,199 $ 148,500 Total Cash Operating Expenses (104,112) (105,880) (107,789) (107,076) (109,307) Total Cash NOI $ 42,732 $ 43,395 $ 40,084 $ 40,123 $ 39,193 Cash NOI Margin % 29.1 29.1 27.1 27.3 26.4 Year-Over-Year Three-Month SPP Growth (8.3%) (3) (1) Excludes non-refundable cash Entrance Fees and related activity such as deferred expenses, amortization, reserves and management fees related to Entrance Fees. (2) Includes non-cash adjustments related to the Brookdale Transaction. For further discussion, see "Brookdale Transaction - Non-Cash NOI Impact" on page 51 of this report. (3) The fourth quarter 2017 SHOP Total SPP Cash NOI growth rate was impacted by: (i) outsized volume purchase rebates recorded in the fourth quarter of 2016 (3.0%); (ii) a portfolio of recently acquired and transitioned assets entering the SPP pool in fourth quarter 2017 prior to reaching stabilized occupancy (2.8%); (iii) an increase in sales and marketing expenses in fourth quarter 2017 to catch up from lower spend during the first half of 2017 and to better position the portfolio for 2018 (2.3%); and (iv) under-accrual by an operator of a utility bill which was provisioned for in fourth quarter 2017 (1.0%). Adjusting for these items, normalized fourth quarter 2017 SHOP Total SPP Cash NOI growth would be 0.8%. ASSISTED LIVING/INDEPENDENT LIVING PORTFOLIO 4Q16 1Q17 2Q17 3Q17 4Q17 Property count 68 68 68 68 68 Investment $ 1,983,685 $ 1,988,107 $ 1,995,755 $ 1,997,829 $ 2,008,442 Units 10,360 10,347 10,348 10,349 10,347 Occupancy % 89.8 88.9 87.4 86.6 87.4 REVPOR SHOP $ 3,752 $ 3,867 $ 3,885 $ 3,879 $ 3,857 Total Rental and Operating Revenues $ 101,411 $ 103,423 $ 102,013 $ 100,926 $ 101,301 Total Operating Expenses (65,782) (66,512) (67,347) (66,642) (100,971) (2) Total NOI $ 35,629 $ 36,911 $ 34,666 $ 34,284 $ 330 (2) Total Cash Rental and Operating Revenues $ 101,437 $ 103,404 $ 102,112 $ 101,125 $ 101,437 Total Cash Operating Expenses (65,887) (66,759) (67,393) (66,827) (68,204) Total Cash NOI $ 35,550 $ 36,645 $ 34,719 $ 34,298 $ 33,233 Cash NOI Margin % 35.0 35.4 34.0 33.9 32.8 Year-Over-Year Three-Month SPP Growth (6.5%)

38 SHOP CCRC JV Same Property Portfolio(1)(2) Dollars in thousands, except REVPOR, includes HCP's pro rata share of unconsolidated JVs CCRC JV 4Q16 1Q17 2Q17 3Q17 4Q17 Property count 15 15 15 15 15 Investment $ 691,408 $ 694,762 $ 700,776 $ 705,554 $ 709,625 Units 7,193 7,198 7,245 7,249 7,250 Occupancy % 85.6 85.7 85.2 84.9 85.7 REVPOR SHOP $ 5,013 $ 5,060 $ 5,065 $ 5,094 $ 5,153 Total Rental and Operating Revenues $ 45,427 $ 45,899 $ 45,760 $ 46,065 $ 47,099 Total Operating Expenses (38,225) (39,121) (40,396) (40,249) (41,103) Total NOI $ 7,202 $ 6,778 $ 5,364 $ 5,816 $ 5,996 Total Cash Rental and Operating Revenues $ 45,407 $ 45,871 $ 45,761 $ 46,074 $ 47,063 Total Cash Operating Expenses (38,225) (39,121) (40,396) (40,249) (41,103) Total Cash NOI $ 7,182 $ 6,750 $ 5,365 $ 5,825 $ 5,960 Cash NOI Margin % 15.8 14.7 11.7 12.6 12.7 Year-Over-Year Three-Month SPP Growth (17.0%) (1) Excludes a CCRC rental community that is not part of our CCRC JV. (2) Same property Total NOI and Total Cash NOI exclude non-refundable Entrance Fees and related activity such as deferred expenses, amortization, reserves and related management fees. (3) Represents NREFs net of a 15% reserve for statutory refunds due to early terminations and related management fees. See Entrance Fees in Glossary. NON-REFUNDABLE ENTRANCE FEES Non-refundable Entrance Fees ("NREFs"), net(3) $ 7,159 $ 6,352 $ 7,716 $ 8,090 $ 9,892 SPP Cash NOI plus NREFs, net $ 14,341 $ 13,102 $ 13,081 $ 13,915 $ 15,852 Margin % including NREFs, net 27.1 24.9 24.3 25.6 27.7 Year-Over-Year Three-Month Growth including NREFs, net 10.5%

39 SHOP New Supply As of and for the quarter ended December 31, 2017, dollars in thousands, includes HCP's pro rata share of unconsolidated JVs NEW SUPPLY ANALYSIS HCP Portfolio 5-Mile Radius(1) MSA Units Total Cash NOI % of SHOP Total Cash NOI Properties/ Units Under Construction(2) Total Cash NOI Exposed to New Supply (3) 5-Year 80+ Population Growth % 2017-2022 80+ Penetration Rate % Qualified Care Giver % Median Household Income Median Home Value Unemploy- ment% US National Average 10.6 11.4 4.7 $ 56 $ 207 5.5 Tampa, FL 2,784 $ 7,668 12.5 -- / -- $ — 9.0 5.3 3.8 51 173 5.9 Houston, TX 2,371 6,656 10.9 2 / 520 2,659 18.0 12.2 6.7 75 287 5.5 Miami, FL 1,700 4,419 7.2 5 / 791 1,364 8.6 3.8 3.8 53 224 8.0 Denver, CO 856 4,170 6.8 2 / 194 2,163 11.2 8.7 5.1 58 308 3.1 Orlando, FL 1,239 3,278 5.4 -- / -- — 30.9 8.0 3.4 48 198 6.5 Chicago, IL 1,295 2,767 4.5 5 / 416 932 7.2 7.1 8.2 87 334 4.3 Jacksonville, FL 543 1,918 3.1 -- / -- — 12.0 13.7 4.5 56 203 5.6 Sarasota, FL 1,169 1,906 3.1 4 / 342 272 13.8 6.7 3.8 50 211 5.4 Philadelphia, PA 435 1,860 3.0 1 / 55 1,860 13.3 25.3 9.8 103 358 4.5 Washington, DC 541 1,720 2.8 2 / 126 705 11.9 4.6 9.0 105 488 3.0 Punta Gorda, FL 662 1,694 2.8 -- / -- — 21.7 12.7 2.8 51 177 7.3 Los Angeles, CA 445 1,537 2.5 1 / 201 299 18.0 5.4 7.9 92 708 4.4 Dallas, TX 710 1,477 2.4 3 / 605 779 12.4 9.1 5.0 57 193 5.3 Baltimore, MD 522 1,380 2.3 2 / 186 183 3.8 4.1 5.6 69 270 5.4 Providence, RI 839 1,275 2.1 -- / -- — 1.5 4.5 4.7 55 246 4.9 Memphis, TN 230 1,235 2.0 -- / -- — 11.5 13.7 7.1 71 230 4.5 Richmond, VA 303 1,178 1.9 2 / 64 1,178 6.8 25.7 8.2 82 327 3.2 Phoenix, AZ 211 1,156 1.9 1 / 128 1,156 8.3 7.8 3.6 53 189 5.3 Austin, TX 276 1,073 1.8 2 / 292 686 18.0 13.4 5.6 57 239 4.4 Riverside, CA 590 878 1.4 1 / 148 98 10.7 4.1 4.2 63 314 8.4 Remaining 9,491 12,010 19.6 12 / 1,382 1,205 6.8 5.7 5.2 59 268 5.3 Total 27,212 $ 61,255 100.0 45 / 5,450 $ 15,539 11.2 7.4 5.4 $ 63 $ 267 5.3 % of Total Cash NOI and Interest Income 4.9% (1) Demographic data provided by ESRI for 2017. Construction and supply data provided by NIC for the quarter ended December 31, 2017. Data reflects a 5-mile radius (10-mile for Entrance Fee CCRCs) around each community and is weighted by Total Cash NOI. See Glossary for further discussion. (2) Represents the number of properties and units with similar care types that are under construction. (3) Represents the Company’s Total Cash NOI exposed to new construction and material expansions.

40 Life Science As of and for the quarter ended December 31, 2017, dollars and square feet in thousands, includes HCP's pro rata share of unconsolidated JVs INVESTMENTS(1) MSA Property Count Investment Total Cash NOI Square Feet Occupancy % Wholly-Owned San Francisco/San Jose, CA 84 $ 2,944,977 $ 55,242 4,893 95.6 San Diego, CA 28 748,660 12,554 1,925 92.8 Remaining 10 381,897 3,513 909 85.3 122 $ 4,075,534 $ 71,309 7,727 93.7 HCP's Share of Unconsolidated JVs San Diego, CA 2 $ 46,608 $ 869 131 96.3 San Francisco, CA 2 41,363 807 147 100.0 4 $ 87,971 $ 1,676 278 98.2 126 $ 4,163,505 $ 72,985 8,005 93.8 SAME PROPERTY PORTFOLIO 4Q16 1Q17 2Q17 3Q17 4Q17 Property count 113 113 113 113 113 Investment $ 3,272,332 $ 3,280,022 $ 3,291,163 $ 3,296,846 $ 3,306,527 Square feet 6,695 6,694 6,695 6,695 6,695 Occupancy % 96.0 96.2 96.4 96.4 94.7 Total Rental and Operating Revenues $ 76,182 $ 76,637 $ 78,544 $ 79,422 $ 80,842 Total Operating Expenses (16,091) (14,978) (16,542) (17,300) (17,344) Total NOI $ 60,091 $ 61,659 $ 62,002 $ 62,122 $ 63,498 Total Cash Rental and Operating Revenues $ 75,562 $ 77,057 $ 79,331 $ 80,212 $ 79,861 Total Cash Operating Expenses (16,072) (14,959) (16,523) (17,281) (17,325) Total Cash NOI $ 59,490 $ 62,098 $ 62,808 $ 62,931 $ 62,536 Year-Over-Year Three-Month SPP Growth 5.1% (1) Excludes nine properties that are in Development.

41 Public Biotech / Medical Device 44% University, Government, Research 4% Office and R&D 17% Pharma 18%Private Biotech / Medical Device 17% Life Science As of December 31, 2017, dollars and square feet in thousands, includes HCP's pro rata share of unconsolidated JVs SELECTED LEASE EXPIRATION DATA (NEXT 5 YEARS)(1) Total San Francisco / San Jose San Diego Remaining Year Leased Square Feet % Annualized Base Rent % Square Feet Annualized Base Rent Square Feet Annualized Base Rent Square Feet Annualized Base Rent 2018(2) 605 8 $ 18,321 6 475 $ 14,596 94 $ 3,146 36 $ 579 2019 842 12 31,907 11 329 10,069 433 18,655 80 3,183 2020 576 8 19,994 7 324 12,101 252 7,893 — — 2021 958 13 50,523 17 844 47,019 114 3,504 — — 2022 631 9 22,656 8 368 15,304 193 5,487 70 1,865 Thereafter 3,561 50 154,885 51 2,148 113,519 823 22,364 590 19,002 7,173 100 $ 298,286 100 4,488 $ 212,608 1,909 $ 61,049 776 $ 24,629 TENANT CONCENTRATION(1) Remaining Lease Term in Years Leased Square Feet Annualized Base Rent Amount % of Total Amount % of Total Credit Rating Amgen 4.7 684 10 $ 49,099 16 A Google 4.7 729 10 30,361 10 AA+ Rigel Pharmaceuticals(3) 5.1 147 2 16,207 5 - Takeda 1.4 166 2 9,482 3 A- Myriad Genetics 7.4 310 4 7,798 3 - Shire 10.8 184 3 7,080 2 BBB- General Atomics 13.5 397 6 6,959 2 - AstraZeneca Pharmaceuticals 9.7 115 2 6,720 2 BBB+ Duke University 11.8 166 2 5,988 2 AA+ NuVasive 16.5 145 2 5,525 2 - Remaining 4.5 4,130 57 153,067 53 - 5.4 7,173 100 $ 298,286 100 (1) Excludes 337,000 square feet and annualized base rent of $21.0 million related to the purchase option exercised by Genentech that is expected to close in July 2018. (2) Includes month-to-month and holdover leases. (3) In July 2017, Rigel signed a lease renewal for a 5-year term ending January 2023. The new rate becomes effective February 2018 and generates Annualized Base Rent of $9.0 million.

4242 Life Science Square feet in thousands, includes unconsolidated JVs LEASING ACTIVITY Leased Square Feet Annualized Base Rent Per Sq. Ft. % Change in Cash Rents HCP Tenant Improvements per Sq. Ft. Leasing Costs per Sq. Ft. Average Lease Term (Months) Retention Rate YTD Leased Square Feet as of September 30, 2017 7,287 $ 41.21 Acquisitions 264 38.95 Developments 67 59.40 Expirations (239) 36.64 Renewals, amendments and extensions 167 42.78 2.7 $ 15.31 $ 9.61 65 65.9% New leases 134 24.39 4.17 8.17 63 Terminations (170) 33.09 Leased Square Feet as of December 31, 2017 7,510 $ 41.58 65 Hayden Boston, MA

43 Medical Office As of and for the quarter ended December 31, 2017, dollars and square feet in thousands, includes HCP's pro rata share of unconsolidated JVs PORTFOLIO BY MARKET(1) Square Feet On-campus(2) Off-campus(3) Total MSA Property Count Investment Total Cash NOI Occupancy % Multi-tenant Single-tenant Multi-tenant Single-tenant Multi-tenant Single-tenant % of Total Houston, TX 28 $ 521,767 $ 9,138 92.9 1,305 1,425 287 — 1,592 1,425 16 Dallas, TX 28 534,909 9,112 89.1 1,860 34 347 54 2,207 88 12 Seattle, WA 6 215,938 6,102 93.8 667 — — — 667 — 4 Denver, CO 15 252,160 4,746 89.8 1,023 — 35 — 1,058 — 6 Nashville, TN 14 160,993 4,744 95.7 1,288 10 — — 1,288 10 7 Louisville, KY 12 221,607 4,520 93.7 669 17 447 15 1,116 32 6 Philadelphia, PA 3 270,394 3,616 87.2 705 — 213 90 918 90 5 Salt Lake City, UT 13 145,397 3,438 96.0 434 63 154 116 588 179 4 Phoenix, AZ 13 171,932 3,091 86.8 519 — 208 — 727 — 4 San Diego, CA 5 109,396 2,142 97.0 — 176 155 — 155 176 2 Miami, FL 10 95,795 2,133 85.5 498 — — 30 498 30 3 Las Vegas, NV 7 114,886 1,821 83.6 528 — — — 528 — 3 Kansas City, MO 3 77,053 1,521 95.9 260 — — 8 260 8 1 Los Angeles, CA 5 88,191 1,277 82.6 106 — 174 — 280 — 1 Ogden, UT 9 62,910 1,267 93.2 269 — 13 68 282 68 2 San Antonio, TX 4 69,600 1,231 80.0 353 — — — 353 — 2 Washington, DC 3 58,256 939 77.4 55 29 99 — 154 29 1 Sacramento, CA 2 74,483 895 94.4 — — 29 92 29 92 1 Baltimore, MD 3 31,349 801 96.0 — 63 38 58 38 121 1 San Francisco, CA 1 41,883 773 100.0 — — — 104 — 104 1 Remaining 70 786,906 11,281 95.7 1,564 1,267 403 325 1,967 1,592 18 254 $ 4,105,805 $ 74,588 91.8 12,103 3,084 2,602 960 14,705 4,044 100 (1) Excludes three properties that are in development. (2) Includes 6.6 million square feet subject to ground leases with average expirations of 55 years and renewal options generally ranging from 10 to 25 years. (3) 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).

44 Medical Office As of and for the quarter ended December 31, 2017, 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 Health System Rank(1) Credit Rating On-Campus Anchored(2) Adjacent(2) Off-Campus Total % of Total % Square Feet % of Annualized Base Rent HCA Holdings, Inc. 2 Ba2 7,275 60 236 — 7,571 40.4 16.1 18.2 Memorial Hermann Health System 41 A1 1,568 80 — — 1,648 8.8 9.2 4.8 Community Health Systems, Inc. 6 B3 1,284 51 — — 1,335 7.1 7.2 4.7 Norton Healthcare 102 -- 686 15 328 — 1,029 5.5 3.6 3.5 Steward Health Care 67 -- 718 — — — 718 3.8 1.9 1.8 Jefferson Health 97 A2 705 — — — 705 3.8 2.1 2.3 Providence Health & Services 3 Aa3 563 — — — 563 3.0 1.4 2.3 HonorHealth 128 A2 421 — — — 421 2.2 0.8 1.0 Remaining - credit rated 1,735 887 437 — 3,059 16.3 Non-credit rated 232 93 198 1,177 1,700 9.1 Total 15,187 1,186 1,199 1,177 18,749 100.0 42.3 38.6 % of Total 81.0 6.3 6.4 6.3 Total Healthcare Affiliated 93.7% LEASING ACTIVITY Leased Square Feet Annualized Base Rent Per Sq. Ft. % Change in Cash Rents(3) HCP Tenant Improvements per Sq. Ft. Leasing Costs per Sq. Ft. Average Lease Term (Months) Retention Rate YTD Leased Square Feet as of September 30, 2017 16,852 $ 22.87 Acquisitions 364 23.96 Dispositions (51) 20.13 Developments and Redevelopments 69 23.26 Expirations (629) 25.21 Renewals, amendments and extensions 516 25.43 1.8 $ 8.51 $ 4.06 53 83.1% New leases 96 22.17 22.93 6.98 67 Terminations (30) 30.34 Leased Square Feet as of December 31, 2017 17,187 $ 23.02 (1) Ranked by revenue based on the 2016 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.

45 Medical Office As of and for the quarter ended December 31, 2017, 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 Year Leased Square Feet % Annualized Base Rent % Square Feet Annualized Base Rent Square Feet Annualized Base Rent 2018(1) 3,002 17 $ 70,442 18 2,471 $ 58,639 531 $ 11,803 2019 2,186 13 53,525 14 1,735 42,112 451 11,413 2020 2,302 13 58,562 15 2,008 52,082 294 6,480 2021 1,569 9 39,353 10 1,307 32,985 262 6,368 2022 1,721 10 41,882 11 1,318 31,540 403 10,342 Thereafter 6,407 38 128,205 32 5,116 98,625 1,291 29,580 17,187 100 $ 391,969 100 13,955 $ 315,983 3,232 $ 75,986 SAME PROPERTY PORTFOLIO 4Q16 1Q17 2Q17 3Q17 4Q17 Property count 216 216 216 216 216 Investment $ 3,204,205 $ 3,216,907 $ 3,232,654 $ 3,243,127 $ 3,267,851 Square feet 15,723 15,729 15,624 15,624 15,624 Occupancy % 92.4 92.4 92.3 91.8 91.5 Total Rental and Operating Revenues $ 100,460 $ 100,833 $ 101,861 $ 102,504 $ 101,803 Total Operating Expenses (36,703) (37,224) (38,587) (38,937) (37,625) Total NOI $ 63,757 $ 63,609 $ 63,274 $ 63,567 $ 64,178 Total Cash Rental and Operating Revenues $ 99,491 $ 100,305 $ 101,710 $ 102,519 $ 101,773 Total Cash Operating Expenses (36,116) (36,643) (38,007) (38,362) (37,043) Total Cash NOI $ 63,375 $ 63,662 $ 63,703 $ 64,157 $ 64,730 Year-Over-Year Three-Month SPP Growth 2.1% (1) Includes month-to-month and holdover leases.

46 (1) Certain operators in the Company's hospital portfolio are not required under their respective leases to provide operational data. Other As of and for the quarter ended December 31, 2017, dollars in thousands, includes HCP's pro rata share of unconsolidated JVs LEASED PROPERTIES Type/Operator Property Count Investment Total Cash NOI Beds Occupancy %(1) Facility EBITDARM CFC(1) Facility EBITDAR CFC(1) Hospitals Acute care 4 $ 341,034 $ 13,233 1,438 46.4 8.73x 8.20x Remaining 10 189,876 5,681 696 50.0 2.85x 2.57x 14 $ 530,910 $ 18,914 2,134 48.6 6.83x 6.38x United Kingdom Maria Mallaband 25 $ 165,570 $ 3,013 1,143 87.9 1.54x 1.29x HC-One 36 239,124 4,533 2,040 93.0 1.53x 1.26x 61 $ 404,694 $ 7,546 3,183 91.2 1.53x 1.27x Post-acute/skilled Wholly-Owned 1 $ 17,909 $ 311 120 89.9 1.97x 1.61x HCP's Share of Unconsolidated JVs 3 7,661 410 360 79.0 N/A N/A 4 $ 25,570 $ 721 480 82.2 Total Leased Properties 79 $ 961,174 $ 27,181 DEBT INVESTMENTS Investment Interest Income Yield Weighted Average Maturity in Years Tandem Consulate Health Care $ 105,000 $ 822 N/A N/A Maria Mallaband - UK 157,146 2,977 7.5% 5.7 Remaining 69,869 1,464 8.4% 2.9 Total Debt Investments $ 332,015 $ 5,263

47 (1) Certain operators in the Company's hospital portfolio are not required under their respective leases to provide operational data. Other Same Property Portfolio As of and for the quarter ended December 31, 2017, dollars in thousands HOSPITALS 4Q16 1Q17 2Q17 3Q17 4Q17 Property count 14 14 14 14 14 Investment $ 530,777 $ 530,910 $ 530,910 $ 530,910 $ 530,910 Beds 2,134 2,134 2,134 2,134 2,134 Occupancy %(1) 50.7 51.2 52.1 50.7 48.6 Facility EBITDARM CFC(1) 6.74x 6.68x 6.50x 6.52x 6.83x Facility EBITDAR CFC(1) 6.30x 6.24x 6.06x 6.08x 6.38x Total Rental and Operating Revenues $ 20,386 $ 20,877 $ 20,460 $ 20,548 $ 20,783 Total Operating Expenses (1,224) (1,205) (1,047) (1,094) (1,226) Total NOI $ 19,162 $ 19,672 $ 19,413 $ 19,454 $ 19,557 Total Cash Rental and Operating Revenues $ 20,045 $ 20,627 $ 20,295 $ 19,929 $ 20,169 Total Cash Operating Expenses (1,224) (1,205) (1,047) (1,094) (1,226) Total Cash NOI $ 18,821 $ 19,422 $ 19,248 $ 18,835 $ 18,943 Year-Over-Year Three-Month SPP Growth 0.6% UNITED KINGDOM 4Q16 1Q17 2Q17 3Q17 4Q17 Property count 61 61 61 61 61 Investment $ 369,612 $ 373,799 $ 388,275 $ 401,165 $ 404,694 Beds 3,198 3,198 3,184 3,183 3,183 Occupancy % 92.9 92.8 91.1 91.8 91.2 Facility EBITDARM CFC 1.56x 1.56x 1.57x 1.57x 1.53x Facility EBITDAR CFC 1.31x 1.31x 1.31x 1.31x 1.27x Total Rental and Operating Revenues $ 7,583 $ 7,592 $ 7,891 $ 8,101 $ 8,216 FX adjustment 524 537 293 112 — Total NOI $ 8,107 $ 8,129 $ 8,184 $ 8,213 $ 8,216 Total Cash Rental and Operating Revenues $ 6,830 $ 6,830 $ 7,191 $ 7,435 $ 7,546 FX adjustment 473 484 266 103 — Total Cash NOI 7,303 7,314 7,457 7,538 7,546 Year-Over-Year Three-Month SPP Growth 3.3%

48 Other Same Property Portfolio As of and for the quarter ended December 31, 2017, dollars in thousands, includes HCP's pro rata share of unconsolidated JVs TOTAL OTHER(1) 4Q16 1Q17 2Q17 3Q17 4Q17 Property count 79 79 79 79 79 Investment $ 925,958 $ 930,278 $ 944,754 $ 957,645 $ 961,174 Total Rental and Operating Revenues $ 28,606 $ 29,122 $ 29,004 $ 29,304 $ 29,665 Total Operating Expenses (1,237) (1,219) (1,061) (1,109) (1,239) FX adjustment 524 537 293 112 — Total NOI $ 27,893 $ 28,440 $ 28,236 $ 28,307 $ 28,426 Total Cash Rental and Operating Revenues $ 27,513 $ 28,110 $ 28,138 $ 28,019 $ 28,381 Total Cash Operating Expenses (1,237) (1,219) (1,061) (1,109) (1,239) FX adjustment 473 484 266 103 — Total Cash NOI $ 26,749 $ 27,375 $ 27,343 $ 27,013 $ 27,142 Year-Over-Year Three-Month SPP Growth 1.5% (1) Includes four domestic post-acute/skilled properties.

49 (1) Excludes developments and land held for sale. (2) Includes $20.9 million related to non-refundable Entrance Fees (net of reserve for early terminations) included in FAD as the fees are collected by our CCRC JV, partially offset by $6.7 million related to non-refundable Entrance Fee amortization recognized on an FFO basis over the estimated stay of the residents. See Entrance Fees in Glossary. (3) HCP's pro rata share excludes activity related to $437M of debt funded by HCP. Unconsolidated Joint Ventures(1) As of and for the quarter ended December 31, 2017, dollars and square feet in thousands SHOP SELECTED FINANCIAL DATA AT 100% Total CCRC RIDEA II JV Remaining SHOP JV Life Science Medical Office Other Joint ventures' Investment $ 2,785,873 $ 1,448,214 $ 908,530 $ 213,611 $ 155,994 $ 49,948 $ 9,576 Joint ventures' mortgage debt 1,340,663 625,561 592,786 119,128 — — 3,188 Property count 82 15 49 8 4 3 3 Capacity 7,250 Units 5,302 Units 916 Units 278 Sq. Ft. 294 Sq. Ft. 360 Beds Occupancy % 85.7 82.5 94.7 98.2 90.3 79.0 Total revenues $ 188,220 $ 103,782 $ 69,730 $ 8,972 $ 3,481 $ 1,720 $ 535 Operating expenses (147,292) (83,987) (55,764) (5,801) (704) (1,013) (23) NOI $ 40,928 $ 19,795 $ 13,966 $ 3,171 $ 2,777 $ 707 $ 512 Depreciation and amortization (38,817) (23,587) (9,981) (1,688) (745) (2,732) (84) General and administrative expenses 459 747 (180) 63 (106) (65) — Interest expense and other (15,392) (7,694) (6,291) (1,292) — (6) (109) Gain (loss) on sales of real estate, net 1,788 — — — — — 1,788 Net income (loss) $ (11,034) $ (10,739) $ (2,486) $ 254 $ 1,926 $ (2,096) $ 2,107 Depreciation and amortization 38,817 23,587 9,981 1,688 745 2,732 84 Loss (gain) on sales of real estate, net (1,788) — — — — — (1,788) FFO $ 25,995 $ 12,848 $ 7,495 $ 1,942 $ 2,671 $ 636 $ 403 Casualty-related charges/(recoveries), net 324 287 17 14 — 6 — FFO as adjusted $ 26,319 $ 13,135 $ 7,512 $ 1,956 $ 2,671 $ 642 $ 403 Non-refundable Entrance Fee sales, net(2) 14,182 14,182 — — — — — Non-cash adjustments to NOI (104) (685) 300 (17) 95 203 — Non-cash adjustments to net income 1,180 855 256 67 — — 2 FAD capital expenditures (10,016) (3,906) (3,707) (277) (1,231) (895) — FAD $ 31,561 $ 23,581 $ 4,361 $ 1,729 $ 1,535 $ (50) $ 405 HCP's SHARE OF UNCONSOLIDATED JVs HCP's ownership percentage 49% 40% - 45% 40% - 85% 50% - 63% 20% - 67% 80% HCP's net equity investment(3) $ 346,460 $ 203,419 $ 19,608 $ 44,081 $ 65,581 $ 12,488 $ 1,283 Mortgage debt(3) 170,476 104,628 — 65,848 — — — NOI 19,331 9,700 5,595 1,617 1,623 386 410 Cash NOI 25,682 15,852 5,715 1,604 1,676 425 410 Net income (loss)(3) 6,330 (2,600) 6,752 3 752 (263) 1,686 FFO(3) 17,247 8,526 5,546 919 1,562 370 324 FFO as adjusted(3) 17,366 8,629 5,549 932 1,562 370 324 FAD(3) 20,023 13,702 4,227 868 846 54 326

50 (1) Effective 2018, unconsolidated JVs will be removed from the same property portfolio in order to better align with how management views the business and to improve the comparability of our results. For additional detail, refer to the Discussion and Reconciliation of Non-GAAP Financial Measures on the Investor Relations section of our website at http://ir.hcpi.com/ (2) SPP Cash NOI guidance includes $9.0 million related to non-comparable items identified below. Excluding these items, SPP Cash NOI guidance would be 2.00% at the mid-point. (3) FAD capital expenditures exclude approximately $13 to $15 million related to HCP's share of FAD capital expenditures in unconsolidated JVs, which are included below in Other adjustments. (4) HCP's Share of Unconsolidated JVs Total Cash NOI guidance consists of the following: (5) Base case assumes that proceeds from dispositions are used to repay approximately $1.5 billion of debt at a blended rate of approximately 4%. The remaining proceeds are assumed to be reinvested into a combination of capital expenditures and investments. Major disposition assumptions consist of the following: (A) Represents base case assumptions. Actual timing could fluctuate due to various factors. (B) Includes a $32 million sale that occurred in January 2018. (C) 6.5% cap rate based on trailing twelve month EBITDAR at time of announcement. (D) 6.5% - 7.5% cap rate based on trailing twelve month EBITDAR and estimated proceeds at time of announcement. 2018 Guidance Projected full year 2018, dollars in millions, except per share amounts Full Year 2018 Guidance (February 13, 2018) Net income, FFO and FFO as Adjusted per Share Guidance Diluted earnings per common share $0.79 - $0.85 Diluted FFO per common share $1.73 - $1.79 Diluted FFO as adjusted per common share $1.77 - $1.83 Annualized dividend per share $1.48 Year-Over-Year SPP Cash NOI Guidance(1)(2) Senior housing triple-net 0.50% - 1.50% SHOP (4.0%) - 0.00% Life science 0.25% - 1.25% Medical office 1.75% - 2.75% Other 0.50% - 1.50% Total Portfolio 0.25% - 1.75% Other Supplemental Information - Cash Addition (Reduction) Amortization of deferred compensation $17 - $19 Amortization of deferred financing costs $12 - $14 Straight-line rents ($16) - ($20) FAD capital expenditures(3) ($104) - ($110) CCRC Entrance Fees, net $17 - $20 Deferred income taxes ($8) - ($12) Other adjustments(3) ($16) - ($20) Capital Expenditures (excluding FAD Capital Expenditures) 1st generation tenant improvements / ICE $55 - $58 Casualty related capital $16 - $18 Revenue enhancing $45 - $50 Development and Redevelopment $330 - $370 HCP's Share of Unconsolidated JVs Development and Redevelopment $45 - $55 HCP's Share of Unconsolidated JVs revenue enhancing and other $20 - $25 Other Items Interest income $9 - $11 General and administrative (excluding severance and related charges) $82 - $87 Interest expense $255 - $275 HCP's Share of Unconsolidated JVs Total Cash NOI(4) $76 - $84 HCP's Share of Unconsolidated JVs FFO $55 - $63 Net dispositions(5) $1.8B - $2.4B @ 6.9% Joint Venture HCP's Share of Total Cash NOI Comments RIDEA II JV $8 - $12 Expected to sell in 2018 CCRC JV $56 - $59 Other JVs $12 - $13 Total $76 - $84 2018 Guidance Mid-point Mid-point Excluding Non-comparable Items Comments Senior housing triple-net 1.00% 2.00% SPP includes $2.5M of the $5.0M total rent reduction related to the Brookdale Transaction Life science 0.75% 3.75% Renewal of 147K sf lease inSouth San Francisco - ($6.5M) Total Portfolio 1.00% 2.00% 2018 Transaction Timing(A) Amount Cash Yield Brookdale sales - 4 SHOP / 2 NNN End of Q1 $275(B) 7.4%(C) U.K. Portfolio Q2 $500 - $600 6.0% - 7.2% RIDEA II JV Q2 $332 6.8% Genentech PO 7/1/2018 $269 8.0% BKD 3rd Party Transactions - SHOP / NNN Mid-Year $600 - $700 6.8% - 8.0%(D)

51 Brookdale Transaction Dollars in thousands Three Months Ended December 31, 2017 Senior Housing Triple-net SHOP Life Science Medical Office Other Total Total NOI $ 57,322 $ 21,436 $ 76,238 $ 75,197 $ 28,465 $ 258,658 Revenue reduction related to triple-net lease terminations(2) 19,723 — — — — 19,723 Operating expense related to management contract terminations — 34,918 — — — 34,918 Total NOI excluding non-cash impact of Brookdale Transaction $ 77,045 $ 56,354 $ 76,238 $ 75,197 $ 28,465 $ 313,299 Total SPP NOI $ 41,617 $ 6,326 $ 63,498 $ 64,178 $ 28,426 $ 204,045 Revenue reduction related to triple-net lease terminations(2) 33,419 — — — — 33,419 Operating expense related to management contract terminations — 32,999 — — — 32,999 Total SPP NOI excluding non-cash impact of Brookdale Transaction $ 75,036 $ 39,325 $ 63,498 $ 64,178 $ 28,426 $ 270,463 Total SPP NOI for three months ended December 31, 2016 71,782 42,831 60,091 63,757 27,893 266,354 Three-month year-over-year Total SPP NOI growth excluding the Brookdale Transaction 4.5% (8.2%) (3) 5.7% 0.7% 1.9% 1.5% Year Ended December 31, 2017 Senior Housing Triple-net SHOP Life Science Medical Office Other Total Total NOI $ 309,728 $ 195,513 $ 287,182 $ 295,698 $ 113,709 $ 1,201,830 Revenue reduction related to triple-net lease terminations(2) 19,723 — — — — 19,723 Operating expense related to management contract terminations — 34,918 — — — 34,918 Total NOI excluding non-cash impact of Brookdale Transaction $ 329,451 $ 230,431 $ 287,182 $ 295,698 $ 113,709 $ 1,256,471 Total SPP NOI $ 248,852 $ 110,506 $ 247,496 $ 251,728 $ 111,231 $ 969,813 Revenue reduction related to triple-net lease terminations(2) 33,419 — — — — 33,419 Operating expense related to management contract terminations — 32,999 — — — 32,999 Total SPP NOI excluding non-cash impact of Brookdale Transaction $ 282,271 $ 143,505 $ 247,496 $ 251,728 $ 111,231 $ 1,036,231 Total SPP NOI for twelve months ended December 31, 2016 273,787 144,174 239,684 247,147 108,625 1,013,417 Twelve-month year-over-year Total SPP NOI growth excluding the Brookdale Transaction 3.1% (0.5%) 3.3% 1.9% 2.4% 2.3% (1) The Brookdale Transaction refers to the previously announced master transactions and cooperation agreement with Brookdale entered into November 1, 2017. In connection with the agreement, 2017 Total NOI and Total SPP NOI include net non-cash charges related to the right to terminate certain triple-net leases and management agreements. A summary of the impact of these non-cash charges is presented in the table above. (2) Represents the net revenue reduction from the write-off of lease-related intangibles assets, partially offset by the value associated with the right to terminate certain triple-net leases. The Total NOI triple-net lease termination impact differs from the Total SPP NOI impact due to the lease termination value attributed to two assets that are held for sale and, therefore, not included in SPP. (3) The fourth quarter 2017 SHOP Total SPP NOI growth rate was impacted by: (i) outsized volume purchase rebates recorded in the fourth quarter of 2016 (3.0%); (ii) a portfolio of recently acquired and transitioned assets entering the SPP pool in fourth quarter 2017 prior to reaching stabilized occupancy (2.8%); (iii) an increase in sales and marketing expenses in fourth quarter 2017 to catch up from lower spend during the first half of 2017 and to better position the portfolio for 2018 (2.3%); and (iv) under-accrual by an operator of a utility bill which was provisioned for in fourth quarter 2017 (1.0%). Adjusting for these items, normalized fourth quarter 2017 SHOP Total SPP NOI growth would be 0.9%. Non-Cash NOI Impact(1)

52 Other 10% Senior housing triple-net 24% SHOP 19% Life science 23% Medical office 24% Unconsolidated JVs 8% Hospitals 6% UK 2% Debt Investments 2% Senior housing triple-net 24% SHOP 12% Life science 22% Medical office 24% Effective with the first quarter 2018 Supplemental, HCP's Share of the Unconsolidated JVs will be reported in the Other non-reportable segment and will be removed from the same property portfolio, consistent with the 2018 FY SPP guidance. • Removing the unconsolidated JVs from the segments (particularly the CCRC JV from the SHOP segment) improves the comparability of our results and aligns the reporting with how management now views the business • The Supplemental Report will continue to include the performance trend for the CCRC JV and selected financial data for our joint ventures found on pages 38 and 49 to ensure visibility into the venture's performance • We have presented a summary of 2017 results reflecting HCP's Share of Unconsolidated JVs both reported in the segments and reported in the Other non-reportable segment in order to increase transparency of the change and to provide 2017 results in a manner comparable to 2018 guidance PORTFOLIO SUMMARY WITH UNCONSOLIDATED JVS REPORTED IN SEGMENTS Property Count 4Q17 Total Cash NOI % of Total Senior housing triple-net 181 $ 77,265 24 SHOP 176 61,255 19 Life science 135 72,985 23 Medical office 257 74,588 24 Other 79 32,444 10 828 $ 318,537 100 PORTFOLIO SUMMARY WITH UNCONSOLIDATED JVS REPORTED IN OTHER Property Count 4Q17 Total Cash NOI % of Total Senior housing triple-net 181 $ 77,265 24 SHOP 102 38,084 12 Life science 131 71,309 22 Medical office 254 74,163 24 Other(1) 160 57,716 18 828 $ 318,537 100 (1) Includes Total Cash NOI related to the RIDEA II JV (2% of total) and U.K. investments (3% of total including U.K. debt investments), which are expected to sell in 2018. 2017 Summary Results Portfolio Summary

53 For the quarter ended December 31, 2017, dollars in thousands TABLE 1 - PORTFOLIO SUMMARY WITH UNCONSOLIDATED JVS REPORTED IN SEGMENTS(1) Total Rental and Operating Revenues Total Operating Expenses Total NOI Total Cash NOI Interest Income Total Cash NOI and Interest Income Senior housing triple-net $ 58,214 $ (892) $ 57,322 $ 77,265 $ — $ 77,265 SHOP 217,462 (196,026) 21,436 61,255 — 61,255 Life science 98,605 (22,367) 76,238 72,985 — 72,985 Medical office 120,769 (45,572) 75,197 74,588 — 74,588 Other 29,752 (1,287) 28,465 27,181 5,263 32,444 $ 524,802 $ (266,144) $ 258,658 $ 313,274 $ 5,263 $ 318,537 TABLE 2 - PORTFOLIO SUMMARY WITH UNCONSOLIDATED JVS REPORTED IN OTHER(1) Total Rental and Operating Revenues Total Operating Expenses Total NOI Total Cash NOI Interest Income Total Cash NOI and Interest Income Senior housing triple-net $ 58,214 $ (892) $ 57,322 $ 77,265 $ — $ 77,265 SHOP 133,789 (129,265) 4,524 38,084 — 38,084 Life science 96,592 (21,977) 74,615 71,309 — 71,309 Medical office 120,077 (45,266) 74,811 74,163 — 74,163 Other 116,130 (68,744) 47,386 52,453 5,263 57,716 $ 524,802 $ (266,144) $ 258,658 $ 313,274 $ 5,263 $ 318,537 (1) Includes non-cash adjustments related to the Brookdale Transaction. For further discussion, see "Brookdale Transaction - Non-Cash NOI Impact" on page 51 of this report. HCP's Share of Unconsolidated JVs in Other2017 Summary Results

54 As of and for the quarter and year ended December 31, 2017, dollars in thousands YEAR-OVER-YEAR SPP - INCLUDING HCP'S SHARE OF UNCONSOLIDATED JVS Three-Month Full Year Occupancy Growth Occupancy Growth Property Count 4Q17 4Q16 Total SPP NOI Total SPP Cash NOI Property Count 4Q17 4Q16 Total SPP NOI Total SPP Cash NOI Senior housing triple-net 179 86.4% 88.0% (1) 2.6% 174 86.5% 87.9% (1) 5.6% SHOP 83 87.0% 88.7% (1) (8.3%) (2) 67 87.8% 89.5% (1) 0.2% Life science 113 94.7% 96.0% 5.7% 5.1% 112 94.7% 97.1% 3.3% 4.2% Medical office 216 91.5% 92.4% 0.7% 2.1% 215 91.5% 92.4% 1.9% 3.0% Other 79 N/A N/A 1.9% 1.5% 78 N/A N/A 2.4% 1.2% Total Portfolio 670 (1) 1.2% 646 (1) 3.4% YEAR-OVER-YEAR SPP - EXCLUDING HCP'S SHARE OF UNCONSOLIDATED JVS Three-Month Full Year Occupancy Growth Occupancy Growth Property Count 4Q17 4Q16 SPP NOI SPP Cash NOI Property Count 4Q17 4Q16 SPP NOI SPP Cash NOI Senior housing triple-net 179 86.4% 88.0% (1) 2.6% 174 86.5% 87.9% (1) 5.6% SHOP 63 87.2% 89.6% (1) (6.9%) 48 88.6% 91.0% (1) 0.8% Life science 109 94.6% 96.0% 5.7% 5.0% 108 94.6% 97.2% 3.2% 4.1% Medical office 213 91.5% 92.4% 0.7% 2.1% 212 91.4% 92.3% 1.9% 3.0% Other 76 N/A N/A 1.8% 1.4% 75 N/A N/A 2.4% 1.2% Total Portfolio 640 (1) 1.6% 617 (1) 3.5% SPP Excluding HCP's Share of Unconsolidated JVs2017 Summary Results (1) Includes non-cash adjustments related to the Brookdale Transaction. For further discussion, see "Brookdale Transaction - Non-Cash NOI Impact" on page 51 of this report. (2) The fourth quarter 2017 SHOP Total SPP Cash NOI growth rate was impacted by: (i) outsized volume purchase rebates recorded in the fourth quarter of 2016 (3.0%); (ii) a portfolio of recently acquired and transitioned assets entering the SPP pool in fourth quarter 2017 prior to reaching stabilized occupancy (2.8%); (iii) an increase in sales and marketing expenses in fourth quarter 2017 to catch up from lower spend during the first half of 2017 and to better position the portfolio for 2018 (2.3%); and (iv) under-accrual by an operator of a utility bill which was provisioned for in fourth quarter 2017 (1.0%). Adjusting for these items, normalized fourth quarter 2017 SHOP Total SPP Cash NOI growth would be 0.8%.

55 Glossary 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. 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 SHOP 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. 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 for the trailing 12 months and one quarter in arrears from the date reported. 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 developments, 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, casualty-related charges (recoveries) and foreign currency exchange gains (losses). 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.

56 Glossary 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 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” definition included in the accompanying Discussion and Reconciliations of Non-GAAP Financial Measures for information regarding FAD. Funds From Operations (“FFO”) and FFO as Adjusted* See the “Funds From Operations” definition included in the accompanying Discussion and Reconciliations of Non-GAAP Financial Measures for information regarding FFO and FFO as adjusted. HCP’s Share of Unconsolidated JVs HCP’s pro rata share information is prepared on a basis consistent with the comparable consolidated amounts by applying our actual ownership percentage for the period, and is intended to reflect our proportionate economic interest in the financial position and operating results of properties in our portfolio and is calculated by applying our actual ownership percentage for the period. Healthcare 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. 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. 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. 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.

57 Glossary Net Operating Income from Continuing Operations (“NOI”) and Cash NOI* NOI is defined as rental and related revenues, including tenant recoveries, resident fees and services, and income from DFLs, less property level operating expenses; NOI excludes all other financial statement amounts included in net income (loss). Cash NOI is calculated as NOI after eliminating the effects of straight-line rents, DFL non-cash interest, amortization of market lease intangibles, termination fees and the impact of deferred community fee income and expense. 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 SHOP, Occupancy represents the facilities’ average operating Occupancy for the most recent calendar quarter (year-to-date for year-to-date SPP) available weighted to reflect HCP’s share. 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 80 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. Redevelopment Properties that incur major capital expenditures to significantly improve, change the use, or reposition the property pursuant to a formal redevelopment plan. 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 Revenues and Total Rental and Operating Revenues* 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 presented on the same basis. 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 SHOP* The 3-month average Rental and Operating Revenues per occupied unit for the most recent period available weighted to reflect HCP's share. The 3-month average Rental and Operating Revenues per occupied unit for the most recent calendar quarter. REVPOR SHOP excludes newly completed assets under lease-up, assets sold, acquired or transitioned to a new operating structure (such as triple-net to SHOP) during the relevant period, assets in redevelopment, and assets that experienced a casualty event that significantly impacted operations. 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. REVPOR Triple-net The 3-month average facility revenue per occupied unit, one quarter in arrears from the period presented. Facility revenue consists primarily of resident rents generated at triple-net communities, which are not included in HCP’s financial results. Facility revenues are derived solely from information provided by operators/tenants without independent verification by the Company. REVPOR Triple-net excludes vacant facilities, newly completed assets under lease-up, assets sold, acquired or transitioned to a new operating structure (such as triple-net to SHOP) during the relevant period. 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 consolidated portfolio of properties. SPP NOI excludes certain non-property specific operating expenses that are allocated to each operating segment on a consolidated basis. SPP NOI for properties that undergo a change in ownership is reported based on the current ownership percentage. Properties are included in SPP once they are stabilized for the full period in both comparison periods. 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. A property is removed from SPP when it is classified as held for sale, sold, placed into redevelopment, experiences a casualty event that significantly impacts operations or changes its reporting structure (such as triple-net to SHOP). 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 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.

58 Glossary 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 Cash Operating Expenses* Consolidated cash operating expenses plus the Company’s pro rata share of cash operating expenses from its unconsolidated JVs. Total cash operating expenses represents property level operating expenses after eliminating the effects of straight-line rents, lease termination fees and the impact of deferred community fee expense. Total Cash Rental and Operating Revenues* Consolidated cash rental and operating revenue plus the Company’s pro rata share of cash rental and operating revenue from its unconsolidated JVs. Total cash rental and operating revenue represents rental and related revenues, tenant recoveries, resident fees and services and income from DFLs after eliminating the effects of straight-line rents, DFL non-cash interest, amortization of market lease intangibles, non-refundable entrance fees, net of entrance fee amortization, lease termination fees and the impact of deferred community fee income. 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 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 NOI and Cash NOI* NOI and Cash NOI plus the Company's pro rata share of NOI and Cash NOI from its unconsolidated JVs. Total Operating Expenses* Consolidated operating expenses plus the Company’s pro rata share of operating expenses from its unconsolidated JVs. Total Rental and Operating Revenues* Consolidated rental and operating revenue plus the Company’s pro rata share of rental and operating revenue from its unconsolidated JVs. 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. Total SPP* SPP NOI and Cash NOI plus the Company's pro rata share of SPP from its unconsolidated JVs. 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 Reconciliations, definitions and important discussions regarding the usefulness and limitations of the Non-GAAP Financial Measures used in this report can be found at http://ir.hcpi.com/financial-reconciliation.

59 Debt Ratios Adjusted EBITDA and AdjustedFixed Charge Coverage Dollars in thousands Three Months Ended Year Ended December 31, 2017 December 31, 2017 Net income $ (57,924) $ 422,634 Interest expense 71,882 307,716 Income tax expense (benefit) 13,297 (1,333) Depreciation and amortization 136,833 534,726 HCP’s share of unconsolidated JVs: Interest expense 1,783 6,763 Income tax expense (benefit) 39 172 Depreciation and amortization 12,347 60,058 Other JV adjustments (74) (522) EBITDA $ 178,183 $ 1,330,214 Loss (gain) on sales of real estate, net (33,789) (356,641) HCP’s share of gain on sale of real estate from unconsolidated JVs (1,430) (1,430) Impairments (recoveries) of real estate, net — 22,590 Transaction-related items 60,100 62,576 Other impairments (recoveries), net 84,374 92,900 Severance and related charges 1,111 5,000 Loss on debt extinguishments — 54,227 Litigation costs 8,130 15,637 Casualty-related charges (recoveries), net(1) 1,860 12,833 Foreign currency remeasurement losses (gains) (58) (1,043) Adjusted EBITDA $ 298,481 $ 1,236,863 ADJUSTED FIXED CHARGES Interest expense $ 71,882 $ 307,716 HCP’s share of unconsolidated JV interest expense 1,783 6,763 Capitalized interest 4,330 16,937 Fixed charges $ 77,995 $ 331,416 Adjusted fixed charge coverage 3.8x 3.7x (1) Represents property damage and associated costs, inclusive of the Company’s share from its unconsolidated JVs, offset by insurance receivable.

60 Debt Ratios As of the year ended December 31, 2017, dollars in thousands TOTAL DEBT AND NET DEBT December 31, 2017 Bank line of credit(1) $ 1,017,076 Term loan(2) 228,288 Senior unsecured notes 6,396,451 Mortgage debt 144,486 Other debt 94,165 Consolidated debt $ 7,880,466 HCP's share of unconsolidated JV mortgage debt 171,064 HCP's share of unconsolidated JV other debt 180,011 Total Debt $ 8,231,541 Cash and cash equivalents (55,306) HCP's share of unconsolidated JV cash and cash equivalents (33,553) Net Debt $ 8,142,682 (1) Includes £105 million translated into U.S. dollars (“USD”). (2) Represents £169 million translated into USD. (3) Represents the current quarter Adjusted EBITDA multiplied by a factor of four. FINANCIAL LEVERAGE December 31, 2017 Total Debt $ 8,231,541 Total Gross Assets 18,052,955 Financial Leverage 45.6% SECURED DEBT RATIO December 31, 2017 Mortgage debt $ 144,486 HCP's share of unconsolidated JV mortgage debt 171,064 Secured debt $ 315,550 Total Gross Assets 18,052,955 Secured Debt Ratio 1.7% NET DEBT TO ADJUSTED EBITDA As of and for the three months and year ended December 31, 2017, dollars in thousands Three Months Ended December 31, 2017 Year Ended December 31, 2017 Net Debt $ 8,142,682 $ 8,142,682 Adjusted EBITDA 1,193,924 (3) 1,236,863 Net Debt to Adjusted EBITDA 6.8x 6.6x

61 COMPANY Information BOARD OF DIRECTORS DAVID B. HENRY Chairman of the Board, HCP, Inc. Former Vice Chairman and Chief Executive Officer, Kimco Realty Corporation THOMAS M. HERZOG President and Chief Executive Officer, HCP, Inc. BRIAN G. CARTWRIGHT Senior Advisor, Patomak Global Partners, LLC Former General Counsel, SEC CHRISTINE N. GARVEY Former Global Head of Corporate Real Estate Services, Deutsche Bank AG EXECUTIVE MANAGEMENT THOMAS M. HERZOG President and Chief Executive Officer PETER A. SCOTT Executive Vice President Chief Financial Officer TROY E. MCHENRY Executive Vice President General Counsel and Corporate Secretary JAMES P. HOFFMANN Former Partner and Senior Vice President, Wellington Management Company MICHAEL D. MCKEE Former Executive Chairman, HCP, Inc. PETER L. RHEIN Partner, Sarlot & Rhein JOSEPH P. SULLIVAN Chairman Emeritus, Board of Advisors, RAND Health; Former Chief Executive Officer, American Health Properties, Inc. THOMAS M. KLARITCH Executive Vice President and Chief Operating Officer KENDALL K. YOUNG Senior Managing Director Senior Housing Properties SHAWN G. JOHNSTON Senior Vice President and Chief Accounting Officer

62 Forward-Looking Statements & Risk Factors 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. Forward- looking statements include, among other things, statements regarding our and our officers’ intent, belief or expectation as identified by the use of words such as “may,” “will,” “project,” “expect,” “believe,” “intend,” “anticipate,” “seek,” “forecast,” “plan,” “potential,” “estimate,” “could,” “would,” “should” and other comparable and derivative terms or the negatives thereof. Examples of forward-looking statements include, among other things, (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, occupancy, yield, total investment and return on investment, (ii) future new supply and demographics, (iii) the Company’s 2018 guidance and assumptions with respect thereto, and (iv) target metrics, including but not limited to Net Debt to Adjusted EBITDA and Financial Leverage. Forward-looking statements reflect our current expectations and views about future events and are subject to risks and uncertainties that could significantly affect our future financial condition and results of operations. While forward-looking statements reflect our good faith belief and assumptions we believe to be reasonable based upon current information, we can give no assurance that our expectations or forecasts will be attained. Further, we cannot guarantee the accuracy of any such forward- looking statement contained in this supplemental report, and such forward-looking statements are subject to known and unknown risks and uncertainties that are difficult to predict. 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, 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 senior housing, 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 Continued Solana Preserve Vintage Park Houston, TX

63 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 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; 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. Except as required by law, we do not undertake, and hereby disclaim, any obligation to update any forward-looking statements, which speak only as of the date on which they are made. 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 Financial Measures) are an integral part of the information presented herein. You can access these documents on the Company’s website, www.hcpi.com, free of charge, as well as 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. Forward-Looking Statements & Risk Factors (continued) Solana Preserve Vintage Park Houston, TX

64 CORPORATE HEADQUARTERS 1920 MAIN STREET, SUITE 1200 IRVINE, CA 92614 (949) 407-0700 SAN FRANCISCO OFFICE 950 TOWER LANE, SUITE 1650 FOSTER CITY, CA 94404 NASHVILLE OFFICE 3000 MERIDIAN BOULEVARD, SUITE 200 FRANKLIN, TN 37067