EX-99.2 3 hcpsupplementalreport331.htm EXHIBIT 99.2
1 Earnings Release and Supplemental Report first quarter 2018 Cypress MOB Cypress, TX

2 Earnings Release 3 Overview 8 Consolidated Financial Statements 9 Portfolio Summary 13 Same Property Portfolio 15 Capitalization and Indebtedness 16 Investment Summary 19 Developments and Redevelopments 20 Capital Expenditures 22 Portfolio Diversification 23 Expirations and Maturities 25 Triple-net Master Lease Profile 26 Portfolio Senior Housing Triple-net 27 Senior Housing Operating Portfolio 30 Life Science 34 Medical Office 37 Other 40 Guidance 46 Glossary and Debt Ratios 47 Company Information 53 Forward-Looking Statements & Risk Factors 54 Discussion and Reconciliation of Non-GAAP Financial Measures TABLE OF Contents

3 HCP Announces Results for the Quarter Ended March 31, 2018 IRVINE, CA, May 3, 2018 -- HCP, Inc. (NYSE:HCP) announced results for the first quarter ended March 31, 2018. FIRST QUARTER 2018 FINANCIAL PERFORMANCE AND RECENT HIGHLIGHTS – Net income, FFO and FFO as adjusted per common share were $0.08, $0.47 and $0.48, respectively – Announced transaction to exit U.K. holdings; initial transaction structured as joint venture with exit rights to sell remaining interest by no later than 2020 – Completed sale of six assets to Brookdale Senior Living, Inc. ("Brookdale") for $275 million – As previously announced, agreed to transition 24 assets to Atria Senior Living (“Atria”); 13 assets transitioned to date – As previously announced, closed on the sale of our Tandem mezzanine loan investment for $112 million – Completed 150,000 square feet of leasing at our $62 million Ridgeview development, bringing the project to 100% leased – Scott Brinker joined HCP as Executive Vice President and Chief Investment Officer – Appointed two new independent directors; Brian Cartwright named Chairman of the Board – Published our 7th annual Sustainability Report, a comprehensive assessment highlighting our Environmental, Social and Governance ("ESG") goals and achievements – Reaffirmed full-year 2018 FFO as adjusted and SPP Cash NOI guidance ranges FIRST QUARTER COMPARISON (1) For the three months ended March 31, 2018, represents the impairment recovery upon sale of our Tandem Health Care mezzanine loan ("Tandem Mezzanine Loan") in March 2018. For the three months ended March 31, 2017, represents the impairment recovery upon the sale of our Four Seasons Health Care senior notes in the first quarter of 2017. (2) For the three months ended March 31, 2018, relates to the departure of our former Executive Chairman, including $6 million of cash severance and $3 million of equity award vestings. Three Months Ended March 31, 2018 Three Months Ended March 31, 2017 (in thousands, except per share amounts) Amount Diluted Per Share Amount Diluted Per Share Per Share Change Net income (loss) $ 39,841 $ 0.08 $ 460,375 $ 0.97 $ (0.89) FFO $ 219,434 $ 0.47 $ 288,249 $ 0.61 $ (0.14) Transaction-related items 1,942 — 1,057 — — Other impairments (recoveries), net(1) (3,298) (0.01) (50,895) (0.10) 0.09 Severance and related charges(2) 8,738 0.02 — — 0.02 Litigation costs 406 — 1,838 — — Foreign currency remeasurement losses (gains) 130 — (77) — — FFO as adjusted $ 227,352 $ 0.48 $ 240,172 $ 0.51 $ (0.03) FAD $ 201,736 $ 218,555 FFO, FFO as adjusted, FAD, and SPP Cash NOI are supplemental non-GAAP financial measures that we believe are useful in evaluating the operating performance of real estate investment trusts. See “March 31, 2018 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.

4 SAME PROPERTY PORTFOLIO OPERATING SUMMARY The tables below outline the year-over-year three-month SPP Cash NOI growth and the components of our senior housing operating portfolio ("SHOP") SPP Cash NOI growth for the first quarter: Three-Month SPP Cash NOI Growth Senior housing triple-net 0.5% SHOP (6.4%) Life science 0.4% Medical office 1.6% Other non-reportable segments ("Other") 1.2% Total Portfolio (0.2%) TRANSACTION UPDATES U.K. PORTFOLIO TRANSACTION In May, we entered into definitive agreements with an institutional investor to create a joint venture through which we will sell a 51% interest in our U.K. holdings based on a total portfolio value of £394 million. We expect to receive approximately £315 million of proceeds inclusive of the sale of our 51% interest and third party property-level debt. As part of the agreement, we have the ability to sell our remaining 49% interest in the joint venture to the institutional investor by no later than 2020. ACQUISITION AND DISPOSITION TRANSACTIONS WITH BROOKDALE In November 2017, we announced a series of acquisitions and dispositions between HCP and Brookdale. To date, we have closed the following transactions: • We sold the first of six assets to Brookdale for $32 million in January 2018 and the remaining five assets for $243 million in April 2018. • We acquired Brookdale's 10% interest in the RIDEA III joint venture for $32 million in December 2017 and Brookdale’s 10% interest in the RIDEA I joint venture for $63 million in March 2018. OPERATOR TRANSITIONS In March, we announced an agreement to transition management of a portfolio of 24 HCP-owned senior housing communities from Brookdale to Atria. We have completed transitions on 13 communities and expect the remainder of the properties to transition during the second quarter, subject to obtaining the required regulatory approvals. Additionally, we transitioned one community to another existing operator, Sonata Senior Living ("Sonata"). In addition to Atria and Sonata, we are finalizing agreements with other operators to transition additional Brookdale managed communities and anticipate completing these transitions during 2018. TANDEM DEBT INVESTMENT As previously announced, in March, we sold our Tandem Mezzanine Loan investment for $112 million resulting in an impairment recovery of $3 million. This disposition ends our exposure to both stand-alone post-acute/skilled-nursing assets and highly-leveraged mezzanine investments. Components of SHOP SPP Cash NOI Growth Core Portfolio(1) Transition/Sale Portfolio(2) Total Property count 35 34 69 SPP Cash NOI Growth (0.6%) (12.3%) (6.4%) (1) Includes 18 properties managed by Brookdale and 17 properties managed by five operators that are not expected to undergo a transition or sale during 2018. (2) Represents properties managed by Brookdale that have transitioned or are expected to transition to new operators or sell in 2018.

5 DEVELOPMENT UPDATES HAYDEN LEASING AND DEVELOPMENT Since acquiring the Hayden Research Campus ("Hayden") in December 2017, leasing velocity has been strong with the two-building life science campus now 97% leased, up from 66% at the time of acquisition. The new tenants are a combination of venture-backed early-stage and publicly-traded mid-stage biotechnology companies, both of which are expanding from their current locations in the Cambridge and suburban Boston submarkets. Given strong market fundamentals, in March we acquired development rights at Hayden for $21 million. The planned 214,000 square foot Class A development will enhance our scale in a leading life science market. RIDGEVIEW In April, we signed two leases totaling 150,000 square feet with General Atomics, a major defense contractor headquartered in San Diego, at our Ridgeview development located in the San Diego suburb of Poway, California. The $62 million, 300,000 square foot development is now 100% leased to General Atomics. BALANCE SHEET At March 31, 2018, we had $1.0 billion of liquidity from a combination of cash and availability under our $2.0 billion credit facility. Additionally, we have no major senior notes or secured debt maturities until 2019. On April 6, 2018, we repaid $290 million on our credit facility, primarily using proceeds from asset sales to Brookdale. EXECUTIVE LEADERSHIP AND BOARD OF DIRECTORS Scott Brinker joined HCP as Executive Vice President and Chief Investment Officer, effective March 1, 2018. As previously announced, HCP appointed Lydia Kennard and Kent Griffin as new independent directors and named Brian Cartwright Chairman of the Board. A copy of the press release is available in the Investor Relations section of our website at http://ir.hcpi.com. DIVIDEND On April 26, 2018, our Board declared a quarterly cash dividend of $0.37 per common share. The dividend will be paid on May 22, 2018 to stockholders of record as of the close of business on May 7, 2018. SUSTAINABILITY In April, we published our 7th annual Corporate Sustainability Report highlighting the environmental, social, and governance aspects of our operations. More information about HCP's sustainability efforts, including a link to our Sustainability Report, can be found on our website at www.hcpi.com/sustainable-growth.

6 (1) Effective 2018, unconsolidated joint ventures, including our CCRC joint venture, were removed from our same property portfolio in order to better align with how management views our business. COMPANY INFORMATION HCP has scheduled a conference call and webcast for Thursday, May 3, 2018, at 9:00 a.m. Pacific Time (12:00 p.m. Eastern Time) to present its performance and operating results for the quarter ended March 31, 2018. The conference call is accessible by dialing (888) 317-6003 (U.S.) or (412) 317-6061 (International). The conference ID number is 0310687. You may also access the conference call via webcast in the Investor Relations section of our website at http://ir.hcpi.com. Through May 18, 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 10118904. Our Supplemental Report for the current period is available, with this earnings release, in the Investor Relations section of our website. ABOUT HCP HCP, Inc. is a fully integrated real estate investment trust (REIT) that invests in real estate serving the healthcare industry in the United States. HCP owns a large-scale portfolio primarily 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 are reaffirming the following guidance ranges: • Net income per share 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%

7 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; and (iii) statements regarding timing, outcomes and other details relating to current, pending or contemplated acquisitions, dispositions, transitions, developments, redevelopments, joint venture transactions, capital recycling and financing activities, and other transactions discussed in this release, including without limitation those described under the headings "Transaction Updates" and "Development Updates." 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

8 Overview(1) As of and for the quarter ended March 31, 2018, dollars, square feet and shares in thousands, except per share data 1Q18 Full Year 2018 Guidance (May 3, 2018)(2) Financial Metrics Diluted earnings per common share $0.08 $0.79 - $0.85 Diluted FFO per common share $0.47 $1.73 - $1.79 Diluted FFO as adjusted per common share $0.48 $1.77 - $1.83 Dividends per common share $0.37 $1.48 Rental and related revenues $472,832 NOI $300,280 Cash NOI $290,593 Portfolio Income(3) $318,695 Same Property Portfolio Cash NOI Growth Senior housing triple-net 0.5% 0.50% - 1.50% SHOP (6.4%) (4.00%) - 0.00% Life science 0.4% 0.25% - 1.25% Medical office 1.6% 1.75% - 2.75% Other 1.2% 0.50% - 1.50% Total (0.2%) 0.25% - 1.75% 1Q18 1Q18 Capitalization Debt Ratios Common stock outstanding and DownREIT units 476,342 Financial Leverage 45.9% Total Market Equity $ 11,065,425 Secured Debt Ratio 1.7% Enterprise Debt $ 8,316,600 Net Debt to Adjusted EBITDA 6.7x Adjusted Fixed Charge Coverage 3.8x Property Count Capacity Occupancy Portfolio Statistics Senior housing triple-net 181 18,331 Units 86.2% SHOP 100 13,580 Units 85.5% Life science 131 7,782 Sq. Ft. 93.4% Medical office 254 18,472 Sq. Ft. 92.0% Other 167 (4) N/A N/A Total 833 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. Totals throughout this Earnings Release and Supplemental Report may not add due to rounding. (2) The current guidance has not changed from the February 13, 2018 guidance. (3) Includes our share of unconsolidated joint ventures ("JVs") and activity from assets sold and held for sale during the periods presented. (4) Effective this quarter, our 84 properties in unconsolidated JVs are reported in the Other non-reportable segment. The unconsolidated JVs include 49 assets in our RIDEA II JV that are held for sale, 15 assets in our CCRC JV, 10 assets in our Other SHOP JV portfolio, 4 life science assets, 3 medical office buildings and 3 post/acute skilled facilities. See page 43 for further details.

9 March 31, 2018 December 31, 2017 Assets Real estate: Buildings and improvements $ 11,532,338 $ 11,239,732 Development costs and construction in progress 344,948 447,976 Land 1,808,210 1,785,865 Accumulated depreciation and amortization (2,826,325) (2,741,695) Net real estate 10,859,171 10,731,878 Net investment in direct financing leases 713,463 714,352 Loans receivable, net 47,012 313,326 Investments in and advances to unconsolidated joint ventures 863,775 800,840 Accounts receivable, net of allowance of $4,516 and $4,425, respectively 51,468 40,733 Cash and cash equivalents 86,021 55,306 Restricted cash 31,947 26,897 Intangible assets, net 395,298 410,082 Assets held for sale, net 436,155 417,014 Other assets, net 583,261 578,033 Total assets $ 14,067,571 $ 14,088,461 Liabilities and Equity Bank line of credit $ 1,092,357 $ 1,017,076 Term loan 236,878 228,288 Senior unsecured notes 6,398,976 6,396,451 Mortgage debt 143,524 144,486 Other debt 93,856 94,165 Intangible liabilities, net 52,576 52,579 Liabilities of assets held for sale, net 8,564 14,031 Accounts payable and accrued liabilities 391,942 401,738 Deferred revenue 167,975 144,709 Total liabilities 8,586,648 8,493,523 Commitments and contingencies Common stock, $1.00 par value: 750,000,000 shares authorized; 469,725,220 and 469,435,678 shares issued and outstanding, respectively 469,725 469,436 Additional paid-in capital 8,183,166 8,226,113 Cumulative dividends in excess of earnings (3,425,293) (3,370,520) Accumulated other comprehensive income (loss) (21,307) (24,024) Total stockholders' equity 5,206,291 5,301,005 Joint venture partners 97,744 117,045 Non-managing member unitholders 176,888 176,888 Total noncontrolling interests 274,632 293,933 Total equity 5,480,923 5,594,938 Total liabilities and equity $ 14,067,571 $ 14,088,461 HCP, Inc. Consolidated Balance Sheets In thousands, except share and per share data (unaudited)

10 HCP, Inc. Consolidated Statements of Operations In thousands, except per share data (unaudited) Three Months Ended March 31, 2018 2017 Revenues: Rental and related revenues $ 279,578 $ 286,218 Tenant recoveries 37,174 33,675 Resident fees and services 142,814 140,232 Income from direct financing leases 13,266 13,712 Interest income 6,365 18,331 Total revenues 479,197 492,168 Costs and expenses: Interest expense 75,102 86,718 Depreciation and amortization 143,250 136,554 Operating 172,552 159,081 General and administrative 29,175 22,478 Transaction costs 2,195 1,057 Total costs and expenses 422,274 405,888 Other income (expense): Gain (loss) on sales of real estate, net 20,815 317,258 Other income (expense), net (40,407) 51,208 Total other income (expense), net (19,592) 368,466 Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures 37,331 454,746 Income tax benefit (expense) 5,336 6,162 Equity income (loss) from unconsolidated joint ventures 570 3,269 Net income (loss) 43,237 464,177 Noncontrolling interests' share in earnings (3,005) (3,032) Net income (loss) attributable to HCP, Inc. 40,232 461,145 Participating securities' share in earnings (391) (770) Net income (loss) applicable to common shares $ 39,841 $ 460,375 Earnings per common share: Basic $ 0.08 $ 0.98 Diluted $ 0.08 $ 0.97 Weighted average shares outstanding: Basic 469,557 468,299 Diluted 469,695 475,173

11 HCP, Inc. Funds From Operations In thousands, except per share data (unaudited) Three Months Ended March 31, 2018 2017 Net income (loss) applicable to common shares $ 39,841 $ 460,375 Real estate related depreciation and amortization 143,250 136,554 Real estate related depreciation and amortization on unconsolidated joint ventures 17,388 15,039 Real estate related depreciation and amortization on noncontrolling interests and other (2,543) (3,972) Other depreciation and amortization 1,296 3,010 Loss (gain) on sales of real estate, net (20,815) (317,258) Loss (gain) upon consolidation of real estate, net(1) 41,017 — Taxes associated with real estate dispositions(2) — (5,499) FFO applicable to common shares 219,434 288,249 Distributions on dilutive convertible units — 2,803 Diluted FFO applicable to common shares $ 219,434 $ 291,052 Diluted FFO per common share $ 0.47 $ 0.61 Weighted average shares outstanding - diluted FFO 469,695 475,173 Impact of adjustments to FFO: Transaction-related items $ 1,942 $ 1,057 Other impairments (recoveries), net(3) (3,298) (50,895) Severance and related charges(4) 8,738 — Litigation costs 406 1,838 Foreign currency remeasurement losses (gains) 130 (77) Total adjustments 7,918 (48,077) FFO as adjusted applicable to common shares 227,352 240,172 Distributions on dilutive convertible units and other 1,711 2,877 Diluted FFO as adjusted applicable to common shares $ 229,063 $ 243,049 Diluted FFO as adjusted per common share $ 0.48 $ 0.51 Weighted average shares outstanding - diluted FFO as adjusted 474,363 475,173 (1) For the three months ended March 31, 2018, represents the loss on consolidation of seven U.K. care homes. (2) For the three months ended March 31, 2017, represents income tax benefit associated with the disposition of real estate assets in our RIDEA II transaction. (3) For the three months ended March 31, 2018, represents the impairment recovery upon sale of our Tandem Health Care mezzanine loan ("Tandem Mezzanine Loan") in March 2018. For the three months ended March 31, 2017, represents the impairment recovery upon the sale of our Four Seasons Health Care senior notes in the first quarter of 2017. (4) For the three months ended March 31, 2018, relates to the departure of our former Executive Chairman, including $6 million of cash severance and $3 million of equity award vestings.

12 HCP, Inc. Funds Available for Distribution In thousands (unaudited) Three Months Ended March 31, 2018 2017 FFO as adjusted applicable to common shares $ 227,352 $ 240,172 Amortization of deferred compensation(1) 3,420 3,765 Amortization of deferred financing costs 3,336 3,858 Straight-line rents (10,686) (7,396) FAD capital expenditures(2) (19,118) (22,077) Lease restructure payments 299 540 CCRC entrance fees(3) 3,027 3,649 Deferred income taxes (2,140) (2,374) Other FAD adjustments (3,754) (1,582) FAD applicable to common shares 201,736 218,555 Distributions on dilutive convertible units — 2,803 Diluted FAD applicable to common shares $ 201,736 $ 221,358 (1) Excludes $3 million related to the acceleration of deferred compensation for restricted stock units that vested upon the departure of our former Executive Chairman, which is included in severance and related charges for the three months ended March 31, 2018. (2) Excludes our share of recurring capital expenditures, leasing costs, and tenant and capital improvements from unconsolidated joint ventures (reported in "Other FAD adjustments"). (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.

13 Hospitals 6% Debt Investments 2% UK 3% Unconsolidated JVs 7% SHOP 13% Senior housing triple-net 22% Life science 23% Medical office 24% Portfolio Summary As of and for the quarter ended March 31, 2018, dollars in thousands Property Count Age Portfolio Investment Portfolio Income Private Pay %(1) Wholly Owned Property Portfolio Senior housing triple-net 181 20 $ 3,572,999 $ 71,379 93.0 SHOP 100 22 2,600,444 41,317 97.0 Life science 120 21 4,186,495 74,062 100.0 Medical office 249 22 4,191,450 76,168 100.0 Other 83 32 1,088,829 27,668 80.4 733 22 $ 15,640,218 $ 290,593 96.0 Debt Investments Other — N/A $ 65,826 $ 6,365 — Developments Life science 8 N/A $ 193,353 $ — — Redevelopments Life science 3 N/A $ 72,161 $ — — Medical office 5 N/A 84,120 — — 8 N/A $ 156,280 $ — — Total Senior housing triple-net 181 20 $ 3,572,999 $ 71,379 93.0 SHOP 100 22 2,600,444 41,317 97.0 Life science 131 21 4,452,009 74,062 100.0 Medical office 254 22 4,275,570 76,168 100.0 Other 83 32 1,154,656 34,033 80.4 749 22 $ 16,055,677 $ 296,958 96.0 HCP's Share of Unconsolidated JVs(2) Other(3) 84 23 $ 1,375,484 $ 21,737 84.4 Total Portfolio 833 22 $ 17,431,161 $ 318,695 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 Portfolio Income including assets sold in the quarter. Revenues for medical office buildings 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. (3) Effective this quarter, our 84 properties in unconsolidated JVs are reported in the Other non-reportable segment. The unconsolidated JVs include 49 assets in our RIDEA II JV that are held for sale, 15 assets in our CCRC JV, 10 assets in our Other SHOP JV portfolio, 4 life science assets, 3 medical office buildings and 3 post/acute skilled facilities. See page 43 for further details. PORTFOLIO INCOME $318.7M

14 NOI and Cash NOI Summary For the quarter ended March 31, 2018, dollars in thousands NOI SUMMARY Rental and Operating Revenues Operating Expenses NOI Wholly-Owned Senior housing triple-net $ 74,289 $ (1,045) $ 73,243 SHOP 144,670 (101,746) 42,925 Life science 99,622 (21,809) 77,813 Medical office 123,935 (46,696) 77,238 Other 30,316 (1,256) 29,060 $ 472,832 $ (172,552) $ 300,280 CASH NOI SUMMARY Cash Rental and Operating Revenues Cash Operating Expenses Cash NOI Wholly-Owned Senior housing triple-net $ 72,411 $ (1,032) $ 71,379 SHOP 142,318 (101,001) 41,317 Life science 95,852 (21,789) 74,062 Medical office 121,946 (45,779) 76,168 Other 28,924 (1,256) 27,668 $ 461,451 $ (170,858) $ 290,593

15 Same Property Portfolio As of March 31, 2018, dollars in thousands SAME PROPERTY PORTFOLIO RECONCILIATION Senior Housing Triple-net SHOP Life Science Medical Office Other Total Total Property Count 181 100 131 254 167 833 Unconsolidated JVs(1) — — — — (84) (84) Acquisitions — (2) (4) (14) — (20) Assets in Development — — (8) — — (8) Assets in Redevelopment — — (3) (5) — (8) Assets held for sale (2) (7) (4) — — (13) Senior housing triple-net to SHOP conversions — (19) — — — (19) Completed Developments and Redevelopments — (2) (4) (10) — (16) Assets impacted by casualty event — (1) — — — (1) UK consolidation of real estate(2) — — — — (7) (7) Three-Month SPP Property Count 179 69 108 225 76 657 THREE-MONTH SPP % of Property Portfolio based on Investment Year-Over-Year Sequential Property Count Investment Occupancy Growth Occupancy Growth 1Q18 1Q17 SPP NOI SPP CashNOI 1Q18 4Q17 SPP NOI SPP Cash NOI Senior housing triple-net 179 $ 3,524,509 99 86.4% 87.7% 4.2% 0.5% 86.4% 86.4% (3) (6.3%) SHOP 69 2,010,790 77 86.5% 88.4% (8.1%) (6.4%) 86.5% 87.0% (3) 5.0% Life science 108 3,192,948 76 94.3% 96.1% 1.2% 0.4% 94.3% 95.6% (2.3%) (0.7%) Medical office 225 3,467,207 83 92.2% 92.6% 1.1% 1.6% 92.2% 92.0% (0.4%) (0.7%) Other 76 969,707 89 N/A N/A 2.2% 1.2% N/A N/A 2.2% 2.1% Total 657 $ 13,165,161 84 0.7% (0.2%) (3) (1.3%) (1) Effective this quarter, our 84 properties in unconsolidated JVs are reported in the Other non-reportable segment. The unconsolidated JVs include 49 assets in our RIDEA II JV that are held for sale, 15 assets in our CCRC JV, 10 assets in our Other SHOP JV portfolio, 4 life science assets, 3 medical office buildings and 3 post/acute skilled facilities. See page 43 for further details. (2) In March 2018, we consolidated seven care homes that were the underlying security for a £105 million bridge loan to Maria Mallaband. These properties are not included in the SPP population as they have not been held in a consistent reporting structure for the full period in both comparison periods. (3) Not meaningful as 4Q17 includes the following non-cash adjustments related to the Brookdale Transaction: revenue reduction related to lease terminations for senior housing triple- net and operating expense related to management contract terminations for SHOP. Refer to the 4Q17 Earnings Release and Supplemental Report for additional information.

16 Capitalization Dollars and shares in thousands, except price per share data TOTAL CAPITALIZATION March 31, 2018 Shares Value Total Value Common stock (NYSE: HCP) 469,725 $ 23.23 $ 10,911,712 Convertible partnership (DownREIT) units 6,617 23.23 153,713 Total Market Equity 476,342 $ 11,065,425 Consolidated Debt N/A 7,965,591 Total Market Equity and Consolidated Debt 476,342 $ 19,031,016 HCP's share of unconsolidated JV debt N/A 351,009 Total Market Equity and Enterprise Debt 476,342 $ 19,382,025 COMMON STOCK AND EQUIVALENTS Weighted Average Shares Three Months Ended March 31, 2018 Shares Outstanding March 31, 2018 Diluted EPS Diluted FFO Diluted FFO as adjusted Common stock 469,725 469,557 469,557 469,557 Common stock equivalent securities: Restricted stock units 1,787 124 124 124 Dilutive impact of options 14 14 14 14 Convertible partnership (DownREIT) units 6,617 — — 4,668 Total common stock and equivalents 478,143 469,695 469,695 474,363

17 Indebtedness and Ratios As of March 31, 2018, dollars in thousands DEBT MATURITIES AND SCHEDULED PRINCIPAL REPAYMENTS (AMORTIZATION) Senior Unsecured Notes Mortgage Debt HCP's Share ofUnconsolidated JV Debt Enterprise 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 $ — $ — $ — — $ 2,649 — $ 2,649 $ 22,079 4.29 $ 24,728 3.83 2019 — 237,175 450,000 (5) 3.95 3,700 — 690,875 17,660 4.21 708,535 3.22 2020 — — 800,000 2.79 3,758 5.08 803,758 11,726 4.22 815,484 2.82 2021 1,092,357 — 700,000 5.56 11,117 5.26 1,803,474 43,960 4.16 1,847,434 4.01 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 3.93 3,276 — 1,353,276 18,911 3.87 1,372,187 3.92 2026 — — — — 3,213 3.04 3,213 942 — 4,155 2.35 2027 — — — — 9,247 5.28 9,247 945 — 10,192 4.79 Thereafter — — 300,000 6.88 91,759 4.01 391,759 38,006 3.51 429,765 5.97 Subtotal $ 1,092,357 $ 237,175 $ 6,450,000 $ 137,704 $ 7,917,236 $ 174,753 $ 8,091,989 Other Debt(6) — — — — 93,856 177,423 271,279 (Discounts), premium and debt costs, net — (297) (51,024) 5,820 (45,501) (1,167) (46,668) Enterprise Debt $ 1,092,357 $ 236,878 $ 6,398,976 $ 143,524 $ 7,965,591 $ 351,009 $ 8,316,600 Weighted average interest rate % 2.99 1.81 4.20 4.18 3.96 4.00 3.96 Weighted average maturity in years 3.6 0.8 5.6 19.5 5.4 5.2 5.4 (1) Includes £105 million ($147 million) translated into U.S. dollars ("USD") at March 31, 2018. Our $2.0 billion bank line of credit has the following features: (i) initial maturity date of October 19, 2021 with two six-month committed extension options; (ii) annual interest costs of LIBOR plus 100 basis points and a facility fee of 20 basis points on our current unsecured credit rating; 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 USD at March 31, 2018. Interest accrues at GBP LIBOR plus 115 basis points, subject to adjustments based on our credit rating. (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 our unconsolidated JVs. (5) $450 million of senior unsecured debt matures February 2019. (6) Represents non-interest bearing Entrance Fee deposits at certain of our senior housing facilities and demand notes that have no scheduled maturities.

18 Indebtedness and Ratios As of March 31, 2018, 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 $ 185,912 2 4.18% 16.1 Floating rate 126,545 2 3.92% 4.7 Combined $ 312,457 4 4.08% 11.5 Unsecured Fixed rate 6,450,000 80 4.20% 5.6 Floating rate 1,329,532 16 2.78% 3.1 Combined $ 7,779,532 96 3.95% 5.1 Total Fixed rate 6,635,912 82 4.20% 5.9 Floating rate 1,456,077 18 2.88% 3.2 Combined $ 8,091,989 100 3.96% 5.4 Other debt(1) 271,279 (Discounts), premiums and debt costs, net (46,668) Enterprise Debt $ 8,316,600 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% 52% Fixed Charge Coverage Ratio (12 months) No less than 1.50x 3.6x Tangible Net Worth (in billions) No less than $6.5 $8.6 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 our 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 our consolidated financial statements as provided in our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. Compliance with certain of these financial covenants requires the inclusion of our consolidated amounts and our proportionate share of unconsolidated JVs.

19 Investment Summary (1) In March 2018, we acquired the rights to develop a 214,000 square foot lab building on our Hayden life science campus for $21.4 million. (2) In March 2018, we also acquired Brookdale's 10% interest in the RIDEA I JV for $62.6 million bringing our total ownership in RIDEA I to 100%. (3) Represents the average yield calculated using Cash NOI for the 12-month period prior to the sale and for the 12-month period ended March 31, 2018 for assets held for sale. (4) Closed in April 2018. (5) On November 1, 2017, we agreed to sell our remaining 40% interest in the RIDEA II JV, with expected proceeds of $332 million. The transaction is expected to close mid-2018. DEBT INVESTMENT REPAYMENTS Date GrossProceeds Participating development financing February 2018 $ 21,498 Tandem March 2018 112,000 Total $ 133,498 DISPOSITIONS Date Capacity Property Count Property Type Sales Price Trailing Cash Yield(3) West Palm Beach, FL January 2018 34 Units 1 SHOP $ 3,350 Altamonte Springs, FL January 2018 137 Units 1 SHOP 32,105 Total 171 Units 2 $ 35,455 6.8% ASSETS HELD FOR SALE Held for Sale Date Capacity Property Count Property Type Projected Sales Price Trailing Cash Yield(3) South San Francisco, CA August 2017 337 Sq. Ft. 4 Life science $ 269,400 Various, Brookdale(4) November 2017 995 Units 5 SHOP / Senior housing 242,753 Sterling Heights, MI December 2017 120 Units 1 SHOP 28,000 Beaumont, TX(4) March 2018 159 Units 1 SHOP 23,000 Various, NY March 2018 92 Units 2 SHOP 17,000 HCP's Share of Unconsolidated JVs RIDEA II JV(5) November 2017 5,302 Units 49 Other 332,000 Total 62 $ 912,153 7.3% For the three months ended March 31, 2018, dollars and square feet in thousands INVESTMENT SUMMARY Three Months Ended March 31, 2018 Hayden development entitlements(1) $ 21,390 Noncontrolling interest in RIDEA I JV(2) 62,632 Development fundings 55,325 Redevelopment fundings 13,103 Total $ 152,450

20 Developments As of March 31, 2018, dollars and square feet in thousands DEVELOPMENT PROJECTS IN PROCESS Project MSA Property Type Property Count Construction in Process ("CIP") Cost to Complete Total at Completion Wholly-Owned Ridgeview San Diego, CA Life science 3 $ 49,937 $ 12,063 $ 62,000 The Cove at Oyster Point - Phase III San Francisco, CA Life science 2 90,576 120,535 211,111 Sorrento Summit San Diego, CA Life science 1 1,239 14,761 16,000 Sierra Point - Phase I San Francisco, CA Life science 2 51,601 167,427 219,028 8 $ 193,353 $ 314,786 $ 508,139 Projected stabilized yield typically ranges from 6.0% to 8.0% Project Total Project Capacity (Sq. Ft.) % of Total Project Leased Project Start Actual / Estimated Occupancy Initial Stabilized Wholly-Owned Ridgeview 301 100 2Q16 3Q18 2Q19 The Cove at Oyster Point - Phase III 336 — 4Q16 1Q19 4Q19 Sorrento Summit 28 100 3Q17 3Q19 3Q19 Sierra Point - Phase I 215 — 4Q17 4Q19 4Q20 880 37

21 Redevelopments and Land Held for Development(1) LAND HELD FOR DEVELOPMENT Project MSA Property Type Gross Site Acreage Estimated Rentable Sq. Ft. Investment to Date Wholly-Owned Sierra Point San Francisco, CA Life science 14 365 $ 53,265 Forbes Research Center San Francisco, CA Life science 8 326 46,541 The Cove at Oyster Point - Phase IV San Francisco, CA Life science 2 164 12,998 Brittania Modular Labs III San Francisco, CA Life science 2 106 10,764 Poway II San Diego, CA Life science 26 465 42,730 Torrey Pines Science Center San Diego, CA Life science 6 93 11,611 Directors Place San Diego, CA Life science 4 82 6,081 Hayden Research Campus Lexington, MA Life science 13 214 21,390 Remaining Various Various 13 N/A 4,589 88 1,815 $ 209,969 (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. (3) An incremental $20.6 million of redevelopment capital will be invested in two joint venture assets on the Biotech Gateway campus. See Other Unconsolidated JV Capital in this report. As of March 31, 2018, dollars and square feet in thousands REDEVELOPMENT PROJECTS IN PROCESS Incremental Costs Project MSA Property Type Property Count Redevelopments Removed from Operations(2) Placed in Service CIP Cost to Complete Total Total at Completion Project Start Estimated Completion Wholly-Owned Yorktown Washington, DC Medical office 1 $ — $ 578 $ 4,567 $ 1,297 $ 6,442 $ 6,442 3Q16 2Q18 3535 Market Street Philadelphia, PA Medical office 1 67,108 9,091 11,956 18,753 39,800 106,908 2Q17 3Q18 Directors Place - 4939 San Diego, CA Life science 1 19,180 — 3,938 5,104 9,042 28,222 2Q17 4Q18 Encino Los Angeles, CA Medical office 1 — 13 273 9,394 9,680 9,680 3Q17 1Q19 Summit III Nashville, TN Medical office 1 — — 160 5,840 6,000 6,000 1Q18 1Q19 Nordstrom Tower Seattle, WA Medical office 1 — — 55 7,045 7,100 7,100 1Q18 1Q19 Wateridge San Diego, CA Life science 1 7,906 — 2,077 10,580 12,657 20,563 1Q18 4Q18 Biotech Gateway(3) San Francisco, CA Life science 1 38,542 — 517 13,591 14,108 52,650 1Q18 1Q19 8 $ 132,736 $ 9,682 $ 23,543 $ 71,604 $ 104,829 $ 237,565 Projected stabilized return on incremental capital invested typically ranges from 9.0% to 12.0%

22 Capital Expenditures For the quarter ended March 31, 2018, dollars in thousands, except per unit/square foot Senior Housing Triple-net SHOP Life Science Medical Office Other Total Wholly-Owned Recurring capital expenditures $ 63 $ 3,649 $ 397 $ 2,126 $ — $ 6,236 Tenant improvements - 2nd generation — — 3,135 6,014 — 9,149 Lease commissions — — 1,682 2,162 17 3,861 FAD capital expenditures $ 63 $ 3,649 $ 5,214 $ 10,303 $ 17 $ 19,246 Revenue enhancing capital expenditures 4,740 1,584 310 601 1,150 8,385 Casualty related capital expenditures — 1,431 — — — 1,431 Initial Capital Expenditures ("ICE")(1) — (5) 894 17 — 907 Tenant improvements - 1st generation — — 13,144 12,236 — 25,379 Development — — 50,672 4,654 — 55,325 Redevelopment — 18 1,882 11,203 — 13,103 Capitalized interest — 10 2,329 1,239 — 3,578 Total capital expenditures $ 4,802 $ 6,687 $ 74,445 $ 40,253 $ 1,167 $ 127,354 Recurring capital expenditures per unit/sq. ft. (2) $268 per Unit $0.05 per Sq. Ft. $0.12 per Sq. Ft. (2) (1) 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. (2) Senior housing triple-net per unit and Other per bed are not presented as they are not meaningful. First Quarter

23 Portfolio Diversification As of and for the quarter ended March 31, 2018, dollars in thousands PORTFOLIO INCOME BY MSA MSA Property Count Senior Housing Triple-net SHOP Life Science Medical Office Other Total % of Total San Francisco, CA 78 $ 2,557 $ — $ 47,888 $ 775 $ — $ 51,220 16 Dallas, TX 42 2,316 1,279 — 9,572 7,118 20,284 6 Houston, TX 40 1,081 7,192 — 9,023 333 17,630 6 San Diego, CA 34 790 — 12,678 2,147 — 15,616 5 Denver, CO 23 2,120 4,430 — 5,158 — 11,709 4 Washington, DC 19 7,515 1,529 — 934 — 9,978 3 San Jose, CA 15 — — 8,725 651 — 9,376 3 Seattle, WA 13 2,785 — — 6,081 — 8,866 3 Miami, FL 23 999 5,153 — 2,162 — 8,313 3 Los Angeles, CA 11 2,501 736 — 1,392 3,660 8,289 3 Remaining 443 48,714 20,997 4,771 38,273 16,557 129,312 41 Cash NOI 741 $ 71,379 $ 41,317 $ 74,062 $ 76,168 $ 27,668 $ 290,593 91 Interest income — — — — — 6,365 6,365 2 HCP's Share of Unconsolidated JVs 82 — — — — 21,737 21,737 7 Portfolio Income 823 $ 71,379 $ 41,317 $ 74,062 $ 76,168 $ 55,770 $ 318,695 100

24 As of and for the quarter ended March 31, 2018, dollars in thousands, includes HCP's pro rata share of unconsolidated JVs PORTFOLIO 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 Portfolio Income Property Count SHOP Other Total % of Portfolio Income Brookdale 78 $ 31,144 $ — $ — $ — $ 31,144 10 130 $ 32,857 $ 18,684 $ 51,540 16 Sunrise Senior Living 48 21,610 — — — 21,610 7 — — — — — Amgen 7 — 12,940 — — 12,940 4 — — — — — Google 11 — 7,840 — — 7,840 2 — — — — — Hospital Corporation of America ("HCA")(1) 6 — — 830 5,759 6,589 2 — — — — — Maria Mallaband Care Group 32 — — — 6,141 6,141 2 — — — — — Remaining 469 18,625 53,282 75,337 23,898 171,142 54 42 8,460 1,289 9,749 3 Portfolio Income 651 $ 71,379 $ 74,062 $ 76,168 $ 35,797 $257,406 81 172 $ 41,317 $19,973 $ 61,289 19 PRO FORMA PORTFOLIO INCOME BY OPERATOR/TENANT(2) Tenant/Credit Exposure SHOP/Operator Exposure Operator/Tenant Property Count Senior Housing Triple-net Life Science Medical Office Other Total % of Portfolio Income Property Count SHOP Other Total % of Portfolio Income Brookdale 43 $ 18,316 $ — $ — $ — $ 18,316 6 36 $ 14,171 $ 12,481 $ 26,652 10 Sunrise Senior Living 48 21,610 — — — 21,610 8 — — — — — Atria Senior Living — — — — — — — 27 13,180 (18) 13,162 5 Amgen 7 — 12,940 — — 12,940 5 — — — — — Google 11 — 7,840 — — 7,840 3 — — — — — HCA(1) 6 — — 830 5,759 6,589 2 — — — — — Remaining 429 18,625 47,970 75,337 18,925 160,857 58 37 7,769 1,387 9,156 3 Portfolio Income 544 $ 58,551 $ 68,750 $ 76,168 $ 24,684 $228,153 82 100 $ 35,120 $13,850 $ 48,970 18 Portfolio Diversification (1) Includes Cash NOI for 1.4 million square feet in six properties (including a hospital) that are 100% leased to HCA, and excludes 2.6 million square feet representing portions of properties leased to HCA for which Cash NOI specific to HCA is not available. However, HCA represents 18% and 5% of Cash Rental and Operating Revenues in our medical office segment and total portfolio including HCP's Share of Unconsolidated JVs, respectively. (2) Pro forma to reflect the Brookdale Transaction, the sale of our remaining 40% interest in the RIDEA II JV and four life science properties that are held for sale, the sale of our U.K. holdings and certain other previously announced sales. Pro forma Portfolio Income is further adjusted to reflect dispositions and operator transitions as if they occurred on the first day of the quarter.

25 Expirations and Maturities As of March 31, 2018, dollars in thousands 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) $ 77,753 7 $ 6,226 $ 10,772 $ 60,755 $ — $ — 2019 87,902 8 2,305 32,134 53,463 — — 2020 126,713 11 39,646 19,357 58,545 8,145 1,019 2021 104,112 9 7,718 50,430 41,078 1,619 3,267 2022 81,800 7 1,513 23,029 42,379 13,974 904 2023 133,596 12 45,054 54,879 22,811 — 10,852 (2) 2024 66,692 6 18,081 4,831 21,395 22,385 — 2025 100,217 9 9,837 36,653 32,656 20,878 193 2026 36,597 3 5,746 11,011 19,840 — — 2027 49,242 4 12,157 22,426 14,659 — — Thereafter 250,370 22 156,331 27,387 26,583 40,069 — $ 1,114,994 100 $ 304,616 $ 292,909 $ 394,164 $ 107,070 $ 16,235 Weighted average maturity in years 6.2 8.9 5.4 4.2 8.2 4.9 REFLECTS PURCHASE AND PREPAYMENT OPTIONS Annualized Base Rent Year Total % of Total Senior Housing Triple-net Life Science Medical Office Other Interest Income(3) 2018(1) $ 85,818 8 $ 6,226 $ 10,772 $ 67,890 $ — $ 930 2019 86,259 8 2,305 32,134 50,202 598 1,019 2020 144,008 13 39,646 25,366 56,732 22,264 — 2021 114,710 10 7,718 50,430 52,606 1,619 2,337 2022 79,492 7 1,513 23,029 40,669 13,376 904 2023 130,559 12 45,054 54,879 19,774 — 10,852 (2) 2024 51,985 5 18,081 4,831 20,806 8,267 — 2025 101,011 9 9,837 36,653 33,450 20,878 193 2026 27,616 2 5,746 11,011 10,859 — — 2027 49,175 4 12,157 22,426 14,593 — — Thereafter 244,362 22 156,331 21,378 26,583 40,069 — $ 1,114,994 100 $ 304,616 $ 292,909 $ 394,164 $ 107,070 $ 16,235 (1) Includes month-to-month and holdover leases. (2) Represents interest income on the Maria Mallaband bridge loan, for which the underlying security (seven properties) was converted to real estate in March 2018. (3) Reflects the earliest point at which there is no prepayment penalty.

26 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 0.3% 0.4% 1.7%0.2% 0.1% 0.4% 1.2% 1.5%0.4% 1.4% 0.1% 1.1%1.3% 2.7% 1.1%1.1% 0.3%1.7%1.0% 1.6% 1.7%0.1% 0.4%0.2% 1.3% 0.6% 2.1% Triple-Net Master Lease Profile(1)(2) 25 13.00 x FACILITY EBIT D AR CFC (TRAILING 12 MONTHS ENDED 12/31/2017 ) HIGHER RIS K LOWER RIS K HIGHER RISK LOWER RISK TERM (YEARS TO EXPIRATION) % Senior Housing Other No Corporate Guaranty Percent 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 Total Cash NOI and Interest Income # of Leases/ Data Points Weighted Average Maturity in Years Guaranty(3) Less than 1.0x 4.3 7 7.5 53.4% 1.00x - 1.25x 11.1 10 7.0 62.6% 1.26x - 1.50x 6.1 5 13.7 74.2% 1.51x and above 4.6 5 7.1 86.3%

27 Senior Housing Triple-net As of and for the quarter ended March 31, 2018, dollars in thousands, except REVPOR Property Portfolio Property Count Investment Cash NOI Units Occupancy % REVPOR Triple-Net Facility EBITDARM CFC Facility EBITDAR CFC Assisted/Independent living 179 $ 3,319,810 $ 68,234 17,276 86.1 $ 5,747 1.25x 1.06x CCRC 2 253,190 3,144 1,055 88.4 6,147 1.45x 1.23x Total 181 $ 3,572,999 $ 71,379 18,331 86.2 $ 5,771 1.26x 1.07x Properties Operator Investment Cash NOI Count % Pooled Units Occupancy % REVPOR Triple-Net Facility EBITDARM CFC Facility EBITDAR CFC Brookdale $ 1,368,596 $ 31,144 78 97 8,057 86.4 $ 4,913 1.24x/1.46x(1) 1.07x/1.27x(1) Sunrise Senior Living 1,365,264 21,610 48 98 5,546 86.0 7,329 1.33x 1.09x Harbor Retirement Associates 212,661 4,749 14 100 1,343 79.2 5,836 1.23x 1.02x Aegis Senior Living 182,152 4,530 10 80 701 93.0 8,325 1.36x 1.19x Capital Senior Living 181,988 4,382 15 100 1,511 84.9 3,291 1.08x 0.94x Remaining 262,339 4,964 16 56 1,173 92.7 5,763 1.13x 0.98x Total $ 3,572,999 $ 71,379 181 93 18,331 86.2 $ 5,771 1.26x/1.33x(1) 1.07x/1.13x(1) (1) Brookdale Facility EBITDARM and EBITDAR CFC, pro forma to reflect the Brookdale Transaction, is 1.46x and 1.27x, respectively. Total Facility EBITDARM and EBITDAR CFC, pro forma to reflect the Brookdale Transaction, is 1.33x and 1.13x, respectively.

28 Senior Housing Triple-net Dollars in thousands, except REVPOR 1Q17 2Q17 3Q17 4Q17 1Q18 Property count 179 179 179 179 179 Investment $ 3,500,167 $ 3,503,104 $ 3,511,361 $ 3,520,582 $ 3,524,509 Units 18,124 18,123 18,126 18,123 18,123 Occupancy % 87.7 87.1 86.2 86.4 86.4 REVPOR Triple-net $ 5,650 $ 5,753 $ 5,767 $ 5,768 $ 5,790 Facility EBITDARM CFC 1.37x 1.36x 1.33x 1.29x 1.27x/1.33x (1) Facility EBITDAR CFC 1.16x 1.15x 1.12x 1.09x 1.08x/1.13x (1) Rental and Operating Revenues $ 70,222 $ 71,527 $ 71,284 $ 41,748 (2) $ 73,217 Operating Expenses (128) (127) (170) (131) (146) NOI $ 70,094 $ 71,399 $ 71,114 $ 41,617 (2) $ 73,070 Cash Rental and Operating Revenues $ 71,003 $ 73,417 $ 72,909 $ 76,160 $ 71,355 Cash Operating Expenses (115) (114) (157) (118) (133) Cash NOI $ 70,888 $ 73,302 $ 72,752 $ 76,042 $ 71,221 Year-Over-Year Three-Month SPP Growth 0.5% Same Property Portfolio (1) Facility EBITDARM and EBITDAR CFC, pro forma to reflect the Brookdale Transaction, is 1.33x and 1.13x, respectively. (2) Includes non-cash adjustments related to the Brookdale Transaction from the write-off of lease-related intangible assets, partially offset by the value associated with the right to terminate certain triple-net leases. Refer to the 4Q17 Earnings Release and Supplemental Report for additional information.

29 Senior Housing Triple-net As of and for the quarter ended March 31, 2018, 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 $ 7,515 10.5 6 / 714 $ 3,523 12.8 13.5 9.2 105 512 3.1 New York, NY 1,146 5,944 8.3 7 / 796 3,143 8.6 3.4 5.1 84 512 4.8 Seattle, WA 513 2,785 3.9 1 / 60 1,277 10.6 15.1 8.0 84 489 4.1 Portland, OR 986 2,604 3.6 3 / 356 1,121 10.9 21.5 5.8 63 305 4.9 San Francisco, CA 359 2,557 3.6 1 / 16 1,707 10.9 12.2 7.4 84 570 4.9 Los Angeles, CA 384 2,501 3.5 1 / 40 479 7.4 6.6 5.4 71 667 4.5 Chicago, IL 530 2,424 3.4 3 / 256 836 7.2 7.9 5.0 76 300 6.4 Dallas, TX 848 2,316 3.2 2 / 212 776 14.5 15.8 5.5 63 165 5.2 Denver, CO 414 2,120 3.0 2 / 216 2,120 13.2 17.7 5.5 64 349 2.9 Charlotte, NC 586 2,039 2.9 -- / -- — 16.4 19.3 5.9 62 235 5.2 Jacksonville, FL 486 1,965 2.8 -- / -- — 11.6 15.7 4.2 54 210 5.6 Atlanta, GA 560 1,671 2.3 4 / 515 791 12.9 19.1 6.3 65 288 4.2 Baltimore, MD 293 1,546 2.2 3 / 274 1,223 13.5 8.3 7.5 86 362 4.7 Austin, TX 269 1,543 2.2 1 / 206 1,543 14.1 14.8 5.1 53 378 4.2 Sebastian, FL 298 1,498 2.1 -- / -- — 7.8 8.7 3.9 47 222 10.1 Sacramento, CA 352 1,299 1.8 2 / 144 644 7.2 14.9 5.4 67 348 6.6 Detroit, MI 330 1,290 1.8 6 / 603 1,290 8.0 21.0 7.5 71 223 4.6 Providence, RI 276 1,242 1.7 -- / -- — 3.6 11.0 5.0 57 312 5.3 Nashville, TN 334 1,230 1.7 2 / 277 273 18.1 26.8 9.3 90 364 2.8 Houston, TX 308 1,081 1.5 -- / -- — 23.1 24.4 6.7 79 194 5.0 Remaining 7,662 24,207 33.9 10 / 981 4,168 8.7 11.1 5.3 58 250 5.1 Total 18,331 $ 71,379 100 54 / 5,666 $ 24,914 9.9 10.9 6.1 $ 70 $ 345 4.7 % of Total Cash NOI and Interest Income 8.4% (1) Demographic data provided by Environmental Systems Research Institute (“ESRI”) for 2017. Construction and supply data provided by National Investment Center for Senior Housing and Care (“NIC”) for the quarter ended March 31, 2018. Data reflects a 5-mile radius 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 total Cash NOI exposed to new construction and material expansions. New Supply

30 SHOP As of and for the quarter ended March 31, 2018, dollars in thousands, except REVPOR INVESTMENTS Property Count Investment Cash NOI Units Occupancy % REVPOR SHOP Operator Brookdale 68 $ 1,930,870 $ 32,857 10,275 86.3 $ 3,932 Atria 14 285,290 5,629 1,820 86.1 3,979 Senior Lifestyle Corp. 7 196,572 2,015 640 78.9 5,433 Sonata 4 54,250 806 340 87.4 4,699 Remaining 7 133,462 10 505 74.9 5,298 Total 100 $ 2,600,444 $ 41,317 13,580 85.5 $ 4,069 TOTAL OPERATING PORTFOLIO 1Q17 2Q17 3Q17 4Q17 1Q18 Property count 81 81 84 102 100 Investment $ 2,311,633 $ 2,322,058 $ 2,348,506 $ 2,606,937 $ 2,600,444 Units 12,047 12,047 12,205 13,744 13,580 Occupancy % 88.6 86.8 86.6 87.3 85.5 REVPOR SHOP $ 3,987 $ 3,999 $ 3,992 $ 3,978 $ 4,069 Rental and Operating Revenues $ 140,228 $ 125,416 $ 126,040 $ 133,789 $ 144,670 Operating Expenses (94,539) (85,866) (86,821) (129,265) (1) (101,746) NOI $ 45,689 $ 39,550 $ 39,219 $ 4,524 (1) $ 42,925 Cash Rental and Operating Revenues $ 140,238 $ 125,527 $ 126,279 $ 132,718 $ 142,318 Cash Operating Expenses (94,859) (85,965) (87,095) (94,633) (101,001) Cash NOI $ 45,379 $ 39,562 $ 39,184 $ 38,084 $ 41,317 Cash NOI Margin % 32.4 31.5 31.0 28.7 29.0 (1) Includes non-cash adjustments related to management contract terminations in conjunction with the Brookdale Transaction. Refer to the 4Q17 Earnings Release and Supplemental Report for additional information.

31 (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 March 31, 2018, dollars in thousands, except REVPOR OPERATING PORTFOLIO METRICS % of SHOP Cash NOI Units(1) REVPOR SHOP(1) MSA Investment Cash NOI AL IL Occupancy % AL IL Houston, TX $ 335,185 $ 7,192 17.4 87 1,962 93.3 $ 6,328 $ 3,150 Miami, FL 276,278 5,153 12.5 702 964 85.0 4,498 4,065 Denver, CO 297,042 4,430 10.7 154 702 93.2 4,185 4,447 Chicago, IL 197,593 2,749 6.7 — 947 85.2 — 3,709 Tampa, FL 111,973 2,174 5.3 182 424 84.6 4,092 3,904 Washington, DC 126,441 1,529 3.7 398 — 82.2 5,964 — Sarasota, FL 87,845 1,318 3.2 259 164 76.2 3,996 5,169 Dallas, TX 71,624 1,279 3.1 286 257 86.4 3,995 2,227 Baltimore, MD 108,797 1,221 3.0 321 — 79.6 5,677 — Phoenix, AZ 41,997 1,174 2.8 — 211 92.9 — 4,033 Memphis, TN 72,302 1,142 2.8 — 182 92.9 — 5,899 Richmond, VA 63,111 1,087 2.6 204 — 79.4 5,581 — Albuquerque, NM 27,464 843 2.0 261 — 89.3 3,755 — Austin, TX 38,252 755 1.8 136 — 97.0 5,074 — Providence, RI 120,273 747 1.8 457 305 82.6 4,350 4,798 Los Angeles, CA 24,407 736 1.8 135 — 82.8 5,642 — Boulder, CO 41,116 681 1.6 — 96 97.4 — 4,329 Riverside, CA 38,468 662 1.6 274 — 85.1 3,700 — Sebastian, FL 21,308 547 1.3 104 — 86.4 4,629 — Fresno, CA 39,241 493 1.2 — 172 88.9 — 3,765 Remaining 459,727 5,404 13.1 2,390 844 80.0 3,959 3,665 Total $ 2,600,444 $ 41,317 100.0 6,350 7,230 85.5 $ 4,414 $ 3,785

32 SHOP Same Property Portfolio Dollars in thousands, except REVPOR 1Q17 2Q17 3Q17 4Q17 1Q18 Property count 69 69 69 69 69 Investment $ 1,985,065 $ 1,992,840 $ 1,994,535 $ 2,004,622 $ 2,010,790 Units 10,321 10,322 10,323 10,321 10,317 Occupancy % 88.4 86.9 86.4 87.0 86.5 REVPOR SHOP $ 3,974 $ 3,990 $ 3,980 $ 3,957 $ 4,047 Rental and Operating Revenues $ 108,782 $ 107,237 $ 106,234 $ 106,409 $ 108,944 Operating Expenses (71,067) (72,423) (71,610) (107,193) (1) (74,291) NOI $ 37,715 $ 34,813 $ 34,624 $ (785) (1) $ 34,653 Cash Rental and Operating Revenues $ 108,807 $ 107,373 $ 106,491 $ 106,564 $ 108,318 Cash Operating Expenses (71,383) (72,540) (71,866) (73,193) (73,272) Cash NOI $ 37,424 $ 34,833 $ 34,625 $ 33,371 $ 35,046 Cash NOI Margin % 34.4 32.4 32.5 31.3 32.4 Year-Over-Year Three-Month SPP Growth (6.4%) (1) Includes non-cash adjustments related to management contract terminations in conjunction with the Brookdale Transaction. Refer to the 4Q17 Earnings Release and Supplemental Report for additional information. (2) Includes 18 properties managed by Brookdale and 17 properties managed by five operators that are not expected to undergo a transition or sale during 2018. (3) Represents properties managed by Brookdale that have transitioned or are expected to transition to new operators or sell in 2018. COMPONENTS OF 1Q18 SHOP SPP CASH NOI GROWTH Core Portfolio(2) Transition/Sales Portfolio(3) Total Property count 35 34 69 SPP Cash NOI Growth (0.6%) (12.3%) (6.4%)

33 SHOP New Supply As of and for the quarter ended March 31, 2018, dollars in thousands NEW SUPPLY ANALYSIS HCP Portfolio 5-Mile Radius(1) MSA Units Cash NOI % of SHOP 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 Houston, TX 2,049 $ 7,192 17.4 2 / 520 $ 3,304 17.6 20.4 6.7 74 295 5.6 Miami, FL 1,666 5,153 12.5 3 / 337 1,121 8.6 8.2 3.8 53 224 8.0 Denver, CO 856 4,430 10.7 2 / 194 2,316 11.2 17.0 5.1 58 308 3.1 Chicago, IL 947 2,749 6.7 1 / 68 628 7.9 13.3 8.0 86 312 4.9 Tampa, FL 606 2,174 5.3 -- / -- — 8.3 11.3 3.8 46 175 5.9 Washington, DC 398 1,529 3.7 1 / 86 34 10.0 7.8 9.7 106 444 4.0 Sarasota, FL 423 1,318 3.2 4 / 342 396 11.3 12.9 4.2 52 232 5.1 Dallas, TX 543 1,279 3.1 1 / 322 247 12.7 18.2 5.0 58 184 5.4 Baltimore, MD 321 1,221 3.0 -- / -- — 5.4 5.3 6.2 75 293 5.0 Phoenix, AZ 211 1,174 2.8 1 / 128 1,174 8.3 14.1 3.6 53 189 5.3 Memphis, TN 182 1,142 2.8 -- / -- — 12.1 22.8 7.3 72 233 4.4 Richmond, VA 204 1,087 2.6 2 / 64 1,087 6.9 33.5 8.5 83 332 3.0 Albuquerque, NM 261 843 2.0 -- / -- — 4.3 7.8 3.2 44 195 7.8 Austin, TX 136 755 1.8 1 / 86 327 25.7 24.8 5.0 53 195 4.8 Providence, RI 762 747 1.8 -- / -- — 1.3 5.5 4.4 52 244 5.2 Los Angeles, CA 135 736 1.8 -- / -- — 18.8 5.2 8.0 93 695 4.1 Boulder, CO 96 681 1.6 -- / -- — 16.4 24.2 6.2 59 557 3.4 Riverside, CA 274 662 1.6 -- / -- — 10.2 5.8 3.7 61 276 9.2 Sebastian, FL 104 547 1.3 -- / -- — 6.2 18.9 3.7 47 196 10.0 Fresno, CA 172 493 1.2 -- / -- — 3.9 12.2 4.8 57 303 6.6 Remaining 3,234 5,404 13.1 11 / 1,168 1,303 7.5 9.9 5.1 55 192 5.2 Total 13,580 $ 41,317 100.0 29 / 3,315 $ 11,937 10.3 13.4 5.6 $ 64 $ 268 5.4 % of Total Cash NOI and Interest Income 4.0% (1) Demographic data provided by ESRI for 2017. Construction and supply data provided by NIC for the quarter ended March 31, 2018. Data reflects a 5-mile radius 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 total Cash NOI exposed to new construction and material expansions.

34 Life Science As of and for the quarter ended March 31, 2018, dollars and square feet in thousands INVESTMENTS(1) MSA Property Count Investment Cash NOI Square Feet Occupancy % San Francisco, CA/San Jose, CA 85 $ 3,048,690 $ 56,613 4,948 95.9 San Diego, CA 28 753,627 12,678 1,925 90.8 Boston, MA 2 230,706 1,228 397 66.4 (2) Remaining 8 153,472 3,543 512 100.0 123 $ 4,186,495 $ 74,062 7,782 93.4 SAME PROPERTY PORTFOLIO 1Q17 2Q17 3Q17 4Q17 1Q18 Property Count 108 108 108 108 108 Investment $ 3,154,670 $ 3,165,777 $ 3,171,559 $ 3,180,015 $ 3,192,948 Square Feet 6,351 6,353 6,353 6,353 6,357 Occupancy % 96.1 96.3 96.3 95.6 94.3 Rental and Operating Revenues $ 73,894 $ 75,679 $ 76,643 $ 78,290 $ 75,584 Operating Expenses (14,424) (15,910) (16,671) (16,740) (15,428) NOI $ 59,469 $ 59,769 $ 59,972 $ 61,550 $ 60,156 Cash Rental and Operating Revenues $ 74,253 $ 76,473 $ 77,295 $ 77,255 $ 75,501 Cash Operating Expenses (14,405) (15,890) (16,651) (16,720) (15,409) Cash NOI $ 59,848 $ 60,582 $ 60,644 $ 60,535 $ 60,092 Year-Over-Year Three-Month SPP Growth % 0.4% (1) Excludes eight properties that are in Development. (2) Represents the Hayden Campus which is 97% leased as of March 2018. Occupancy relating to recently leased space is projected to occur by the end of 2018.

35 Public Biotech / Medical Device 45% University, Government, Research 4% Office and R&D 17% Pharma 18%PrivateBiotech / Medical Device 16% Life Science As of March 31, 2018, dollars and square feet in thousands SELECTED LEASE EXPIRATION DATA (NEXT 5 YEARS)(1) Total San Francisco / San Jose San Diego Boston Remaining Year Leased Square Feet % Annualized Base Rent % Square Feet Annualized Base Rent Square Feet Annualized Base Rent Square Feet Annualized Base Rent Square Feet Annualized Base Rent 2018(2) 320 5 $ 10,772 4 249 $ 9,314 36 $ 879 — $ — 36 $ 579 2019 832 12 32,134 11 329 10,147 423 18,707 80 3,279 — — 2020 549 8 19,357 7 317 11,832 232 7,525 — — — — 2021 948 14 50,430 17 844 47,142 104 3,287 — — — — 2022 631 9 23,029 8 368 15,597 193 5,569 — — 70 1,864 Thereafter 3,652 53 157,187 54 2,303 117,958 760 20,114 184 7,172 406 11,943 6,932 100 $ 292,909 100 4,409 $ 211,990 1,748 $ 56,082 263 $ 10,451 512 $ 14,386 TENANT CONCENTRATION(1) Remaining Lease Term in Years Leased Square Feet Annualized Base Rent Amount % of Total Amount % of Total Credit Rating Amgen 4.5 684 10 $ 49,454 17 A Google 4.4 729 11 31,230 11 AA+ Takeda 1.1 166 2 9,482 3 A- Rigel Pharmaceuticals 4.8 147 2 8,992 3 — AstraZeneca Pharmaceuticals 9.0 156 2 8,371 3 BBB+ Myriad Genetics 7.2 310 4 7,798 3 — Shire 10.6 184 3 7,172 2 BBB- Five Prime 9.8 115 2 6,789 2 — General Atomics 13.2 397 6 6,068 2 — Duke University 11.5 166 2 6,009 2 AA+ Remaining 5.0 3,878 56 151,545 52 5.4 6,932 100 $ 292,909 100 (1) Excludes 337,000 square feet and annualized base rent of $21 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.

3636 Life Science Square feet in thousands 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 December 31, 2017 7,237 $ 43.17 Developments 115 58.80 Expirations (164) 31.96 Renewals, amendments and extensions 20 19.18 3.6 $ 2.45 $ 0.98 24 12.2% New leases 65 47.74 63.19 13.61 80 Terminations (4) 34.09 Leased Square Feet as of March 31, 2018 7,269 $ 43.17 Pointe Grand II South San Francisco, CA

37 Medical Office As of and for the quarter ended March 31, 2018, dollars and square feet in thousands PORTFOLIO BY MARKET Square Feet On-campus(1) Off-campus(2) Total MSA Property Count Investment Cash NOI Occupancy % Multi-tenant Single-tenant Multi-tenant Single-tenant Multi-tenant Single-tenant % of Total Dallas, TX 27 $ 551,088 $ 9,572 89.8 1,860 34 326 54 2,186 88 12 Houston, TX 29 552,467 9,023 93.3 1,136 1,425 287 — 1,423 1,425 15 Seattle, WA 6 216,371 6,081 93.9 667 — — — 667 — 4 Denver, CO 16 277,239 5,158 89.7 1,022 — 35 — 1,058 — 6 Nashville, TN 14 162,254 5,148 95.6 1,288 10 — — 1,288 10 7 Louisville, KY 11 213,008 4,033 93.6 566 17 447 15 1,013 32 6 Philadelphia, PA 3 274,655 3,633 89.0 705 — 213 90 918 90 5 Salt Lake City, UT 13 145,907 3,418 96.5 434 63 154 116 587 179 4 Phoenix, AZ 13 173,727 3,099 89.1 519 — 208 — 727 — 4 Miami, FL 10 96,116 2,162 85.5 498 — — 30 498 30 3 San Diego, CA 5 109,451 2,147 96.6 — 176 155 — 155 176 2 Las Vegas, NV 7 120,495 1,648 82.3 536 — — — 536 — 3 Kansas City, MO 3 77,716 1,505 95.9 260 — — 8 260 8 1 Los Angeles, CA 5 88,475 1,392 81.1 106 — 174 — 280 — 2 Ogden, UT 9 62,984 1,278 89.7 269 — 13 68 282 68 2 San Antonio, TX 4 69,923 1,156 78.5 353 — — — 353 — 2 Sacramento, CA 2 74,483 1,001 94.4 — — 29 92 29 92 1 Washington, DC 3 58,603 934 80.0 55 29 99 — 154 29 1 Baltimore, MD 3 31,392 804 96.3 — 63 38 58 38 121 1 San Francisco, CA 1 41,946 775 100.0 — — — 104 — 104 1 Remaining 70 793,151 12,201 95.4 1,565 1,273 404 325 1,969 1,598 19 254 $ 4,191,450 $ 76,168 92.0 11,840 3,090 2,582 960 14,422 4,050 100 (1) Includes 6.5 million square feet subject to ground leases with average expirations of 55 years and renewal options generally ranging from 10 to 25 years. (2) Includes medical office buildings that are off-campus, adjacent (within 0.25 miles of a hospital campus) and anchored (50% or more leased by a health system).

38 Medical Office As of and for the quarter ended March 31, 2018, square feet in thousands 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 2 Ba2 7,283 60 236 — 7,579 41.0 16.6 18.8 Memorial Hermann Health System 41 A1 1,570 80 — — 1,650 8.9 9.1 4.6 Community Health Systems, Inc. 6 Caa1 1,284 51 — — 1,334 7.2 7.2 4.7 Norton Healthcare 103 — 583 15 328 — 927 5.0 3.1 3.1 Jefferson Health 53 A2 705 — — — 705 3.8 2.2 2.3 Providence Health & Services 3 Aa3 563 — — — 563 3.1 1.5 2.3 Steward Health Care N/A — 547 — — — 547 3.0 1.8 1.7 HonorHealth 129 A2 421 — — — 421 2.3 0.9 1.1 Remaining - credit rated 1,637 887 437 — 2,961 16.0 Non-credit rated 336 93 198 1,156 1,783 9.7 Total 14,930 1,185 1,200 1,156 18,472 100.0 42.4 38.6 % of Total 80.8 6.4 6.5 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 December 31, 2017 16,945 $ 22.98 Expirations (592) 23.77 Renewals, amendments and extensions 465 25.34 3.9 $ 8.83 $ 3.64 57 78.5% New leases 180 23.66 32.61 6.99 82 Terminations (9) 24.37 Leased Square Feet as of March 31, 2018 16,989 $ 23.21 (1) Ranked by revenue based on the 2016 Modern Healthcare’s Healthcare Systems Financial Database. Systems denoted as N/A are not reported. (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.

39 Medical Office As of and for the quarter ended March 31, 2018, dollars and square feet in thousands 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) 2,507 15 $ 60,755 15 2,063 $ 51,228 444 $ 9,527 2019 2,167 13 53,463 14 1,715 42,000 452 11,464 2020 2,271 13 58,545 15 1,985 52,034 286 6,511 2021 1,620 10 41,078 10 1,346 34,308 275 6,771 2022 1,702 10 42,379 11 1,288 31,857 414 10,522 Thereafter 6,721 40 137,944 35 5,370 106,667 1,351 31,277 16,989 100 $ 394,164 100 13,767 $ 318,092 3,222 $ 76,072 SAME PROPERTY PORTFOLIO 1Q17 2Q17 3Q17 4Q17 1Q18 Property Count 225 225 225 225 225 Investment $ 3,396,606 $ 3,412,125 $ 3,422,648 $ 3,443,446 $ 3,467,207 Square feet 16,400 16,295 16,295 16,295 16,301 Occupancy % 92.6 92.5 92.3 92.0 92.2 Rental and Operating Revenues $ 103,240 $ 104,320 $ 105,182 $ 104,689 $ 104,626 Operating Expenses (37,202) (38,544) (38,934) (37,653) (37,845) NOI $ 66,039 $ 65,776 $ 66,248 $ 67,036 $ 66,780 Cash Rental and Operating Revenues $ 101,980 $ 103,396 $ 104,458 $ 103,910 $ 103,660 Cash Operating Expenses (36,619) (37,961) (38,356) (37,069) (37,273) Cash NOI $ 65,361 $ 65,435 $ 66,102 $ 66,841 $ 66,387 Year-Over-Year Three-Month SPP Growth % 1.6% (1) Includes month-to-month and holdover leases.

40 (1) Certain operators in our hospital portfolio are not required under their respective leases to provide operational data. (2) In March 2018, we consolidated seven care homes that were the underlying security for a £105 million bridge loan to Maria Mallaband and accordingly reported the investment for these seven assets within the Leased Properties table above. However, the interest income earned on the investment during the quarter of $2.6 million remains included in the Debt Investments table. (3) The remaining Maria Mallaband debt investment of $14.8 million outstanding as of March 31, 2018, relates to a care home development loan. (4) Includes $2.1 million related to a participation interest in a development loan that was repaid in February 2018. Other As of and for the quarter ended March 31, 2018, dollars in thousands LEASED PROPERTIES Type/Operator Property Count Investment Cash NOI Beds Occupancy %(1) Facility EBITDARM CFC(1) Facility EBITDAR CFC(1) Hospitals Acute care 4 $ 342,183 $ 13,433 1,438 44.5 9.04x 8.49x Remaining 10 189,876 6,004 696 49.8 3.11x 2.84x 14 $ 532,060 $ 19,437 2,134 47.7 7.11x 6.65x United Kingdom Maria Mallaband 32 $ 290,847 (2) $ 3,162 1,600 87.2 1.48x 1.24x HC-One 36 248,013 4,755 2,040 92.8 1.52x 1.25x 68 $ 538,861 $ 7,917 3,640 90.8 1.50x 1.25x Post-acute/skilled Wholly-Owned 1 $ 17,909 $ 314 120 93.4 1.97x 1.59x Total Leased Properties 83 $ 1,088,829 $ 27,668 DEBT INVESTMENTS Investment Interest Income Yield Weighted Average Maturity in Years Maria Mallaband - UK $ 14,757 (3) $ 2,979 (2) 7.5% 5.4 Remaining 51,069 3,387 (4) 8.5% 3.8 Total Debt Investments $ 65,826 $ 6,365 Wholly-owned

41 (1) Certain operators in our hospital portfolio are not required under their respective leases to provide operational data. Other Same Property Portfolio - Wholly-owned As of and for the quarter ended March 31, 2018, dollars in thousands HOSPITALS 1Q17 2Q17 3Q17 4Q17 1Q18 Property count 14 14 14 14 14 Investment $ 530,910 $ 530,910 $ 530,910 $ 530,910 $ 532,060 Beds 2,134 2,134 2,134 2,134 2,134 Occupancy %(1) 51.2 52.1 50.7 48.6 47.7 Facility EBITDARM CFC(1) 6.68x 6.50x 6.52x 6.83x 7.11x Facility EBITDAR CFC(1) 6.24x 6.06x 6.08x 6.38x 6.65x Rental and Operating Revenues $ 20,877 $ 20,460 $ 20,548 $ 20,783 $ 21,370 Operating Expenses (1,205) (1,047) (1,094) (1,226) (1,176) NOI $ 19,672 $ 19,413 $ 19,454 $ 19,557 $ 20,194 Cash Rental and Operating Revenues $ 20,627 $ 20,295 $ 19,929 $ 20,169 $ 20,680 Cash Operating Expenses (1,205) (1,047) (1,094) (1,226) (1,176) Cash NOI $ 19,422 $ 19,248 $ 18,835 $ 18,943 $ 19,503 Year-Over-Year Three-Month SPP Growth 0.4% UNITED KINGDOM 1Q17 2Q17 3Q17 4Q17 1Q18 Property count 61 61 61 61 61 Investment $ 373,799 $ 388,275 $ 401,165 $ 404,695 $ 419,739 Beds 3,198 3,184 3,183 3,183 3,183 Occupancy % 92.8 91.1 91.8 91.2 90.8 Facility EBITDARM CFC 1.56x 1.57x 1.57x 1.53x 1.50x Facility EBITDAR CFC 1.31x 1.31x 1.31x 1.27x 1.25x Rental and Operating Revenues $ 7,592 $ 7,891 $ 8,101 $ 8,216 $ 8,619 FX adjustment 935 693 515 403 — NOI $ 8,527 $ 8,584 $ 8,616 $ 8,619 $ 8,619 Cash Rental and Operating Revenues $ 6,830 $ 7,191 $ 7,435 $ 7,546 $ 7,917 FX adjustment 841 631 471 369 — Cash NOI $ 7,671 $ 7,822 $ 7,906 $ 7,915 $ 7,917 Year-Over-Year Three-Month SPP Growth 3.2%

42 Other As of and for the quarter ended March 31, 2018, dollars in thousands TOTAL OTHER(1) 1Q17 2Q17 3Q17 4Q17 1Q18 Property count 76 76 76 76 76 Investment $ 922,617 $ 937,093 $ 949,984 $ 953,513 $ 969,707 Rental and Operating Revenues $ 28,777 $ 28,659 $ 28,957 $ 29,311 $ 30,303 Operating Expenses (1,205) (1,047) (1,094) (1,226) (1,176) FX adjustment 935 693 515 403 — NOI $ 28,507 $ 28,305 $ 28,378 $ 28,488 $ 29,127 Cash Rental and Operating Revenues $ 27,765 $ 27,793 $ 27,673 $ 28,027 $ 28,911 Cash Operating Expenses (1,205) (1,047) (1,094) (1,226) (1,176) FX adjustment 841 631 471 369 — Cash NOI $ 27,401 $ 27,377 $ 27,049 $ 27,170 $ 27,735 Year-Over-Year Three-Month SPP Growth 1.2% (1) Includes one domestic post-acute/skilled property. Same Property Portfolio - Wholly-owned

43 (1) Excludes land held for development and includes two senior housing developments and two life science redevelopments. (2) Includes $13.2 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 $7.0 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 $436 million of debt funded by HCP. Other Unconsolidated JVs(1) As of and for the quarter ended March 31, 2018, dollars and square feet in thousands SELECTED FINANCIAL DATA AT 100% Total CCRC JV RIDEA II JV Other SHOP JVs Life Science Medical Office Remaining Joint ventures' Investment $ 2,913,758 $ 1,457,135 $ 1,027,917 $ 212,320 $ 156,745 $ 50,065 $ 9,576 Joint ventures' mortgage debt 1,341,285 622,360 593,046 122,726 — — 3,153 Property count 84 15 49 10 4 3 3 Capacity 7,257 Units 5,302 Units 921 Units 278 Sq. Ft. 294 Sq. Ft. 360 Beds Occupancy % 86.4 81.5 91.2 96.3 78.0 79.2 Total revenues $ 188,804 $ 104,235 $ 70,952 $ 9,236 $ 2,259 $ 1,652 $ 470 Operating expenses (147,160) (83,677) (55,881) (6,160) (611) (811) (20) NOI $ 41,644 $ 20,558 $ 15,071 $ 3,076 $ 1,648 $ 841 $ 450 Depreciation and amortization (37,157) (24,091) (10,123) (1,721) (576) (527) (119) General and administrative expenses 190 470 (101) (9) (23) (135) (12) Interest expense and other (13,957) (6,447) (6,638) (830) 49 — (91) Net income (loss) $ (9,280) $ (9,510) $ (1,791) $ 516 $ 1,098 $ 179 $ 228 Depreciation and amortization 37,157 24,091 10,123 1,721 576 527 119 FFO $ 27,877 $ 14,581 $ 8,332 $ 2,237 $ 1,674 $ 706 $ 347 Non-refundable Entrance Fee sales, net(2) 6,177 6,177 — — — — — Non-cash adjustments to NOI (337) (594) 269 (12) (35) 35 — Non-cash adjustments to net income 584 249 256 67 — — 12 FAD capital expenditures (6,183) (3,410) (2,585) (45) (14) (129) — FAD $ 28,118 $ 17,003 $ 6,272 $ 2,247 $ 1,625 $ 612 $ 359 HCP's SHARE OF UNCONSOLIDATED JVs HCP's ownership percentage 49% 40% - 45% 45% - 90% 50% - 63% 20% - 67% 80% HCP's net equity investment(3) $ 425,389 $ 199,191 $ 88,773 $ 58,716 $ 65,016 $ 12,395 $ 1,298 Mortgage debt(3) 173,586 104,456 — 69,130 — — — NOI 19,438 10,073 6,036 1,539 1,014 416 360 Cash NOI 21,737 12,300 6,144 1,529 984 421 359 Net income (loss)(3) 570 (2,133) 1,949 62 313 197 182 FFO(3) 17,958 9,240 6,017 1,004 1,030 391 276 FAD(3) 18,172 10,382 5,131 1,013 990 370 286

44 Other Unconsolidated JV Capital Represents HCP's pro rata share of unconsolidated JVs for the quarter ended March 31, 2018, dollars in thousands Three Months Ended March 31, 2018 FAD capital expenditures $ 2,776 Revenue enhancing capital expenditures 2,797 Development 3,694 Redevelopment 150 Capitalized interest 63 Total capital expenditures $ 9,480 DEVELOPMENT PROJECTS IN PROCESS Actual / Estimated Occupancy Project MSA Property Type Property Count CIP Cost to Complete Total at Completion Units Project Start Initial Stabilized Otay Ranch San Diego, CA Senior housing 1 $ 11,311 $ 16,533 $ 27,844 111 2Q17 3Q18 4Q20 Waldwick New York, NY Senior housing 1 4,797 21,095 25,892 79 3Q17 4Q18 4Q20 2 $ 16,108 $ 37,628 $ 53,736 190 LAND HELD FOR DEVELOPMENT Project MSA Property Type Gross Site Acreage Estimated Rentable Units Investment to Date Oakmont Village Santa Rosa, CA Senior housing 3 74 $ 2,292 Brandywine Philadelphia, PA Senior housing 8 67 797 11 141 $ 3,089 REDEVELOPMENT PROJECTS IN PROCESS Incremental Costs Project MSA Property Type Property Count Redevelopments Removed from Operations CIP Cost to Complete Total Total at Completion Project Start Estimated Completion Biotech Gateway San Francisco, CA Life Science 2 $ 41,363 $ 135 $ 20,502 $ 20,637 $ 62,000 1Q18 1Q19

45 Other CCRC JV Dollars in thousands, except REVPOR CCRC JV 1Q17 2Q17 3Q17 4Q17 1Q18 Property count 15 15 15 15 15 Units 7,198 7,245 7,249 7,250 7,257 Occupancy % 85.7 85.2 84.9 85.7 86.4 REVPOR(1) $ 5,060 $ 5,065 $ 5,094 $ 5,153 $ 5,099 HCP's SHARE OF CCRC JV Investment $ 694,762 $ 700,776 $ 705,554 $ 709,625 $ 713,996 Cash Rental and Operating Revenues excluding Cash NREFs, net $ 45,871 $ 45,761 $ 46,074 $ 47,063 $ 46,982 Cash NREFs, net(2) 6,353 7,716 8,090 9,892 6,235 Cash Operating Expenses (39,121) (40,601) (40,044) (41,103) (40,916) Cash NOI $ 13,102 $ 12,876 $ 14,120 $ 15,852 $ 12,300 Margin % including NREFs, net 24.9 24.0 25.9 27.7 23.0 (1) The 3-month average Cash Rental and Operating Revenues per occupied unit excluding Cash NREFs, net for the period presented. (2) Represents non-refundable entrance fees, net of a 15% reserve for statutory refunds due to early terminations and related management fees. See Entrance Fees in Glossary.

46 (1) The current guidance has not changed from the February 13, 2018 guidance, with the exception of net dispositions, which were modified to reflect the pending U.K. JV. See footnote (5) below for further discussion. (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 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) 6.5% cap rate based on trailing twelve month EBITDAR at time of announcement. (C) Upon closing the JV our remaining equity investment is expected to be approximately $100 million, assuming the JV secures third party property level debt. (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 (May 3, 2018)(1) 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(2) 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% 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 Cash NOI(4) $76 - $84 HCP's Share of Unconsolidated JVs FFO $55 - $63 Net dispositions(5) $1.7B - $2.3B @ 6.9% Joint Venture HCP's Share of Cash NOI Comments RIDEA II JV $8 - $12 Expected to sell mid-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) Proceeds Cash Yield Brookdale sales - 4 SHOP / 2 NNN Closed $275 7.4%(B) U.K. JV(C) Mid-Year $425 - $450 6.5% 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)

47 Glossary Adjusted Fixed Charge Coverage* Adjusted EBITDA divided by Fixed Charges. Adjusted Fixed Charge Coverage is a supplemental measure of liquidity and our ability to meet interest payments on our outstanding debt and pay dividends to our preferred stockholders, if applicable. Our various debt agreements contain covenants that require us 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 of our debt instruments. 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 excludes properties in our 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). We use 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 us 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 HCP) to meet the operator’s/tenant’s related rent and other obligations to us. 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. Cash Operating Expenses* Cash operating expenses represents property level operating expenses (which exclude transition costs) after eliminating the effects of straight-line rents, lease termination fees and the impact of deferred community fee expense. Cash Rental and Operating Revenues* 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, lease termination fees and the impact of deferred community fee income. 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 our consolidated financial statements. Consolidated Gross Assets* The carrying amount of total assets, excluding investments in and advances to our unconsolidated JVs, after adding back accumulated depreciation and amortization, as reported in our consolidated financial statements. Consolidated Gross Assets is a supplemental measure of our financial position, which, when used in conjunction with debt-related measures, enables both management and investors to analyze our leverage and to compare our leverage to that of other companies. Consolidated Secured Debt Mortgage and other debt secured by real estate, as reported in our 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. 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 to HCP. Adjusted EBITDA is defined as EBITDA excluding impairments (recoveries), gains or losses from sales of depreciable property, transaction-related items, prepayment costs (benefits) associated with early retirement or payment of debt, severance and related charges, litigation costs (recoveries), losses (gains) upon consolidation and deconsolidation, casualty-related charges (recoveries) and foreign currency remeasurement losses (gains). EBITDA and Adjusted EBITDA include our pro rata share our unconsolidated JVs presented on the same basis. Enterprise Debt* Consolidated Debt plus our pro rata share of total debt from our unconsolidated JVs. Enterprise Debt is a supplemental measure of our financial position, which enables both management and investors to analyze our leverage and to compare our leverage to that of other companies. Our pro rata share of total debt from our unconsolidated JVs is not intended to reflect our actual liability or ability to access assets should there be a default under any or all such loans or a liquidation of the JVs. Enterprise Gross Assets* Consolidated Gross Assets plus our pro rata share of total gross assets from our unconsolidated JVs, after adding back accumulated depreciation and amortization. Enterprise Gross Assets is a supplemental measure of our financial position, which, when used in conjunction with debt-related measures, enables both management and investors to analyze our leverage and to compare our leverage to that of other companies.

48 Glossary Financial Leverage* Enterprise Debt divided by Enterprise Gross Assets. Financial Leverage is a supplemental measure of our financial position, which enables both management and investors to analyze our leverage and to compare our leverage to that of other companies. Fixed Charges* Total interest expense plus capitalized interest plus preferred stock dividends (if applicable). Fixed Charges also includes our pro rata share of the interest expense plus capitalized interest plus preferred stock dividends (if applicable) held from our unconsolidated JVs. Fixed Charges is a supplemental measure of our 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. 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 and Portfolio Investment* Represents: (i) the carrying amount of real estate assets and intangibles, after adding back accumulated depreciation and amortization; and (ii) the carrying amount of DFLs and Debt Investments. Portfolio Investment also includes our pro rata share of the real estate assets and intangibles held in our unconsolidated JVs, presented on the same basis as Investment, less the value attributable to refundable Entrance Fee liabilities. Investment and Portfolio Investment exclude land held for development. Enterprise Secured Debt* Consolidated Secured Debt plus our pro rata share of mortgage debt from our unconsolidated JVs. Enterprise Secured Debt is a supplemental measure of our financial position, which enables both management and investors to analyze our leverage and to compare our leverage to that of other companies. Our pro rata share of Enterprise Secured Debt from our unconsolidated JVs is not intended to reflect our actual liability or ability to access assets should there be a default under any or all such loans or a liquidation of the JVs. Entrance Fees Certain of our communities have residency agreements which require the resident to pay an upfront entrance fee prior to taking occupancy at the community. For net income, NOI 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 liabilities. Estimated / Actual Completion Date For Developments, management’s estimate of the period the core and shell structure improvements are expected to be or have been completed. For Redevelopments, management’s estimate of the period in which major construction activity in relation to the scope of the project has been or will be substantially completed. Facility EBITDA* EBITDA for a particular facility (not HCP), for the trailing 12 months and one quarter in arrears from the date reported. We use 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. We receive periodic financial information from most borrowers regarding the performance under the loan agreement. We utilize Facility EBITDA as a supplemental measure of the borrower’s ability to generate sufficient liquidity to meet their obligations to us. Facility EBITDA includes a management fee as specified in the borrower loan agreements with us. All borrower financial performance data was derived solely from information provided by borrowers without independent verification by us. 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 (HCP as lessor), for the trailing 12 months and one quarter in arrears from the date reported. We use 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 us. 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 us. 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.

49 Glossary 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* Enterprise Debt less the carrying amount of cash and cash equivalents as reporting in our consolidated financial statements and our pro rata share of cash and cash equivalents from our unconsolidated JVs. Net Debt is a supplemental measure of our financial position, which enables both management and investors to analyze our leverage and to compare our leverage to that of other companies. Net Debt to Adjusted EBITDA* Net Debt divided by Adjusted EBITDA is a supplemental measure of our ability to decrease our debt. Because we may not be able to use our cash to reduce our debt on a dollar-for-dollar basis, this measure may have material limitations. 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 (which exclude transition costs); 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 SHOP properties, 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 us. Penetration Rate Reflects the number of available senior housing units as a percentage of total population 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. Portfolio Income* Cash NOI plus interest income plus our pro rata share of Cash NOI from our unconsolidated JVs. 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* Includes rental related revenues, tenant recoveries, resident fees and services and income from DFLs. 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. 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 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 our financial results. Facility revenues are derived solely from information provided by operators/tenants without independent verification by us. 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.

50 Glossary Same Property Portfolio (“SPP”)* SPP NOI and Adjusted (Cash) NOI information allows us to evaluate the performance of our property portfolio under a consistent population by eliminating changes in the composition of our consolidated portfolio of properties. SPP NOI excludes certain non-property specific operating expenses that are allocated to each operating segment on a consolidated basis. 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* Enterprise Secured Debt divided by Enterprise Gross Assets. Secured Debt Ratio is a supplemental measure of our financial position, which enables both management and investors to analyze our leverage and to compare our leverage to that of other companies. 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 Market Equity The total number of outstanding shares of our common stock multiplied by the closing price per share of our 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 our common stock on the New York Stock Exchange as of period end (adjusted for stock splits). 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.

51 Debt Ratios Adjusted EBITDA and AdjustedFixed Charge Coverage Dollars in thousands Three Months Ended March 31, 2018 Net income $ 43,237 Interest expense 75,102 Income tax expense (benefit) (5,336) Depreciation and amortization 143,250 Other depreciation and amortization 1,296 HCP’s share of unconsolidated JVs: Interest expense 1,714 Income tax expense (benefit) 33 Depreciation and amortization 17,388 Other JV adjustments (295) EBITDA $ 276,389 Loss (gain) on sales of real estate, net (20,815) Loss (gain) upon consolidation, net 41,017 Transaction-related items 1,942 Other impairments (recoveries), net (3,298) Severance and related charges 8,738 Litigation costs (recoveries) 406 Foreign currency remeasurement losses (gains) 130 Adjusted EBITDA $ 304,509 ADJUSTED FIXED CHARGE COVERAGE Interest expense 75,102 HCP’s share of unconsolidated JV interest expense 1,714 Capitalized interest 3,578 Fixed Charges $ 80,394 Adjusted Fixed Charge Coverage 3.8x

52 Debt Ratios As of and for the quarter ended March 31, 2018, dollars in thousands ENTERPRISE DEBT AND NET DEBT March 31, 2018 Bank line of credit(1) $ 1,092,357 Term loan(2) 236,878 Senior unsecured notes 6,398,976 Mortgage debt 143,524 Other debt 93,856 Consolidated Debt $ 7,965,591 HCP's share of unconsolidated JV mortgage debt 173,586 HCP's share of unconsolidated JV other debt 177,423 Enterprise Debt $ 8,316,600 Cash and cash equivalents (86,021) HCP's share of unconsolidated JV cash and cash equivalents (37,974) Net Debt $ 8,192,605 (1) Includes £105 million translated into USD. (2) Represents £169 million translated into USD. (3) Represents the current quarter Adjusted EBITDA multiplied by a factor of four. FINANCIAL LEVERAGE March 31, 2018 Enterprise Debt $ 8,316,600 Enterprise Gross Assets 18,123,476 Financial Leverage 45.9% SECURED DEBT RATIO March 31, 2018 Mortgage debt $ 143,524 HCP's share of unconsolidated JV mortgage debt 173,586 Enterprise Secured Debt $ 317,110 Enterprise Gross Assets 18,123,476 Secured Debt Ratio 1.7% NET DEBT TO ADJUSTED EBITDA Three Months Ended March 31, 2018 Net Debt $ 8,192,605 Adjusted EBITDA(3) 1,218,036 Net Debt to Adjusted EBITDA 6.7x

53 COMPANY Information BOARD OF DIRECTORS BRIAN G. CARTWRIGHT Chairman of the Board, HCP, Inc. Former General Counsel U.S. Securities and Exchange Commission THOMAS M. HERZOG President and Chief Executive Officer, HCP, Inc. CHRISTINE N. GARVEY Former Global Head of Corporate Real Estate Services, Deutsche Bank AG R. KENT GRIFFIN, JR. Former President and Chief Operating Officer, BioMed Realty Trust, Inc. EXECUTIVE MANAGEMENT THOMAS M. HERZOG President and Chief Executive Officer SCOTT M. BRINKER Executive Vice President Chief Investment Officer THOMAS M. KLARITCH Executive Vice President Chief Operating Officer TROY E. MCHENRY Executive Vice President General Counsel and Corporate Secretary PETER A. SCOTT Executive Vice President Chief Financial Officer DAVID B. HENRY Former Vice Chairman and Chief Executive Officer, Kimco Realty Corporation LYDIA H. KENNARD President and Chief Executive Officer, KDG Construction Consulting PETER L. RHEIN Partner, Sarlot & Rhein JOSEPH P. SULLIVAN Chairman Emeritus, Board of Advisors, RAND Health; Former Chief Executive Officer, American Health Properties, Inc. KENDALL K. YOUNG Executive Vice President Senior Managing Director Senior Housing Properties SHAWN G. JOHNSTON Senior Vice President Chief Accounting Officer GLENN T. PRESTON Senior Vice President Senior Managing Director Medical Office Properties

54 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, transitions, development and redevelopment projects or other transactions, including with respect to closing dates, completion dates, stabilization dates, rentable square feet, costs to complete, occupancy, yield, lease coverage ratios, total investment and return on investment, (ii) portfolio diversification and operator/tenant concentration on a pro forma basis, (iii) future new supply and demographics, and (iv) the Company’s 2018 guidance and assumptions with respect thereto. 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 Hayden Boston, MA

55 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) Hayden Boston, MA

56 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