EX-99.2 3 hcpsupplementalreport63018.htm EXHIBIT 99.2
Earnings Release and Supplemental Report second quarter 2018 Rendering of Sierra Point Development South San Francisco, CA 1

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 45 Glossary and Debt Ratios 46 TABLE OF Company Information 52 Contents Forward-Looking Statements & Risk Factors 54 Discussion and Reconciliation of Non-GAAP Financial Measures 2

HCP Reports Second Quarter 2018 Results IRVINE, CA, August 2, 2018 -- HCP, Inc. (NYSE: HCP) today announced results for the second quarter ended June 30, 2018. For the quarter, we generated net income of $0.19 per share, FFO of $0.45 per share and FFO as adjusted of $0.47 per share. QUARTERLY AND RECENT HIGHLIGHTS – Entered into a $605 million joint venture with Morgan Stanley Real Estate Investing on a two million square foot medical office portfolio – Commenced $267 million of life science development projects, including $160 million at Hayden Research Campus in the Boston market and $107 million at Phase IV of The Cove in South San Francisco – Generated $892 million of proceeds from asset sales, including: (i) a 51% interest in our U.K. holdings; (ii) our remaining investment in the RIDEA II senior housing joint venture ("RIDEA II"); and (iii) five assets sold to Brookdale Senior Living, Inc. ("Brookdale") – Under contract on the previously announced disposition of 22 senior housing communities managed by Brookdale to an investment fund managed by affiliates of Apollo Global Management for $428 million – Completed 28 senior housing operator transitions from Brookdale to date, including 20 to Atria, five to Sunrise, two to Eclipse and one to Sonata – Completed 324,000 square feet of leasing at Phase III of The Cove, bringing Phase III to 100% leased – Repaid $700 million of our 5.375% senior notes due 2021 using proceeds from capital recycling – Appointed Katherine Sandstrom to the Company's Board of Directors – Named to the FTSE4Good sustainability index for the seventh consecutive year – Increased 2018 FFO as adjusted guidance and reaffirmed full-year 2018 SPP Cash NOI guidance ranges Three Months Ended Three Months Ended June 30, 2018 June 30, 2017 Diluted Diluted Per Share (in thousands, except per share amounts) Amount Per Share Amount Per Share Change Net income (loss) $ 89,481 $ 0.19 $ 19,283 $ 0.04 $ 0.15 FFO $ 209,895 $ 0.45 $ 164,650 $ 0.35 $ 0.10 Transaction-related items 1,993 — 840 — — Other impairments (recoveries), net(1) 7,639 0.02 56,682 0.12 (0.10) Litigation costs 179 — 3,366 0.01 (0.01) Foreign currency remeasurement losses (gains) (195) — (768) — — FFO as adjusted $ 219,511 $ 0.47 $ 224,770 $ 0.48 $ (0.01) FAD $ 190,103 $ 200,157 (1) For the three months ended June 30, 2018, represents the impairment of an undeveloped life science land parcel classified as held for sale. For the three months ended June 30, 2017, represents the impairment of our Tandem Mezzanine Loan, which was sold in the first quarter of 2018. 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 “June 30, 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. 3

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 second quarter: Year-Over-Year Three-Month SPP Cash NOI Growth Components of SHOP SPP Cash NOI Growth Senior housing triple-net 0.7% Core Transition/Sale Portfolio(1) Portfolio(2) Total SHOP (4.4%) Property count 33 22 55 Life science 0.5% SPP Cash NOI Growth 2.9% (15.3%) (4.4%) Medical office 2.5% Other non-reportable segments ("Other") 1.7% (1) Includes 17 properties managed by Brookdale and 16 properties managed by four operators that are not expected to undergo a transition or sale during 2018. Total Portfolio 0.7% (2) Represents properties managed by Brookdale that have transitioned or are expected to transition to new operators or sell in 2018. HCP AND MORGAN STANLEY REAL ESTATE INVESTING EXPAND STRATEGIC MEDICAL OFFICE JOINT VENTURE RELATIONSHIP HCP entered into a definitive agreement to form a new $605 million 51%/49% joint venture (the “Venture”) on a two million square foot medical office portfolio with Morgan Stanley Real Estate Investing ("MSREI"). This will be the second medical office joint venture between HCP and MSREI. "We are excited to build on our successful relationship with Morgan Stanley Real Estate Investing," said Scott Brinker, Executive Vice President and Chief Investment Officer of HCP. "The Venture demonstrates our ability to use strong relationships with capital partners, owners, and health systems to source and structure creative investments that are accretive to earnings and aligned with our strategy of owning on-campus medical office properties affiliated with leading health systems." To form the Venture, MSREI will contribute cash and HCP will contribute nine wholly-owned medical office buildings (the “Contributed Assets”). The Contributed Assets are primarily located in Texas and Florida, have a combined 1.2 million square feet of leasable space and are 80% occupied. The Contributed Assets are valued at approximately $320 million, representing a 4% disposition cap rate on a trailing 12-month basis. The Venture intends to use the cash contributed by MSREI to fund the acquisition of a medical office portfolio (the “Portfolio”) in Greenville, South Carolina. HCP’s initial yield on the transaction is approximately 6% inclusive of joint venture fees. Excluding three small non-strategic assets the Venture expects to immediately market for sale, the Portfolio consists of 13 assets with a combined 832,000 square feet and is 95% on-campus. The Portfolio is anchored by A-rated Greenville Health System (“GHS”), which leases 94% of the square footage and is the largest health system in South Carolina. The Venture has reached an agreement with GHS to enter into new 10-year leases concurrent with the closing of the acquisition, which is expected to occur in the third quarter. The Portfolio is accretive to a number of HCP’s key portfolio metrics including on-campus percentage, occupancy, rent per square foot, and percentage of space leased to a health system. The Portfolio acquisition and formation of the Venture are expected to be immediately accretive to HCP’s FFO and FAD. The Venture between HCP and MSREI builds on a portfolio of medical office buildings that was acquired in 2015 for $225 million. On a combined basis, the HCP and MSREI relationship will span 3.2 million square feet of leasable space across 33 properties. TRANSACTION UPDATES 22-COMMUNITY PORTFOLIO SALE As previously disclosed, HCP entered into definitive agreements to sell a portfolio of 22 Brookdale-managed senior housing communities to an investment fund managed by affiliates of Apollo Global Management for $428 million. The transaction is expected to close in two installments, with the first closing in the third quarter and the second closing in the fourth quarter, as regulatory license transfer approvals are granted. U.K. PORTFOLIO TRANSACTION In June, we closed on the previously announced joint venture through which we sold a 51% interest in our U.K. holdings, generating net proceeds of approximately $402 million, including $146 million of third party property-level financing at our share. As part of the transaction, we expect to sell our remaining 49% interest in the joint venture in 2019. Additionally, we expect to sell an £11 million loan at par to a separate buyer in the third quarter. 4

RIDEA II JOINT VENTURE SALE As previously announced, in June we closed on the disposition of our remaining investment in RIDEA II, generating $332 million of proceeds. At the time of the sale, the RIDEA II joint venture owned 49 communities, of which 46 were managed by Brookdale. ADDITIONAL SIGNIFICANT DISPOSITION TRANSACTIONS As previously announced, we sold five senior housing assets to Brookdale for $243 million in April 2018. Additionally, during the quarter, we sold five senior housing communities, four of which were managed by Brookdale, to third parties for $61 million. In June, we reached a definitive agreement to sell a parcel of land in San Diego for $35 million and expect this transaction to close by year end. The land parcel was originally acquired as part of HCP's purchase of Slough Estates USA Inc. in August 2007. In July, a tenant in our life science portfolio in South San Francisco exercised its purchase option on four properties, generating proceeds of $269 million. OPERATOR TRANSITION UPDATES SUNRISE We reached an agreement with Sunrise Senior Living, LLC ("Sunrise") to transition management on a portfolio of six HCP-owned senior housing communities from Brookdale to Sunrise. To date, we have completed five transitions and expect the remaining community to transition in the third quarter. ATRIA To date, we have completed transitions of 20 HCP-owned senior housing communities from Brookdale to Atria Senior Living and expect to transition the remaining properties in the third quarter. ECLIPSE In July, we completed transitions of two HCP-owned senior housing communities from Brookdale to Elmcroft by Eclipse Senior Living ("ESL") and expect to transition one additional community to ESL in the third quarter. DEVELOPMENT UPDATES HAYDEN CAMPUS EXPANSION In June, we broke ground on 75 Hayden, a 214,000 square foot Class A development at our Hayden Research Campus ("Hayden") located in the Boston suburb of Lexington. The $160 million campus expansion, expected to stabilize in 2022, will capitalize on the strong demand from tenants expanding from current locations in the Cambridge and suburban Boston submarkets. When complete, the Hayden campus will encompass 600,000 square feet of state-of-the-art Class A life science space. PHASE III OF THE COVE 100% LEASED; COMMENCING PHASE IV DEVELOPMENT We have signed 324,000 square feet of leases at our $224 million Phase III development of The Cove in South San Francisco. With Phase III 100% leased, we recently commenced development on the 160,000 square foot, $107 million final phase of the project ("Phase IV"). Upon Phase IV's completion in early 2020, The Cove will be a one million square foot, LEED silver, fully-integrated, waterfront life science campus located at the entrance to South San Francisco's life science cluster. BALANCE SHEET At June 30, 2018, we had $1.5 billion of liquidity from a combination of cash and availability under our $2.0 billion credit facility. On July 16, 2018, we repaid $700 million of our 5.375% senior notes due 2021 using capital recycling proceeds received subsequent to June 30. In connection with the repayment, we expect to incur an extinguishment of debt charge of approximately $44 million in the third quarter. BOARD OF DIRECTORS HCP appointed Katherine Sandstrom as a new independent director to its Board of Directors. Ms. Sandstrom’s career spanned over two decades at Heitman LLC, a real estate investment management firm, where she held a series of senior leadership positions. Most recently, she served as head of Heitman’s real estate securities business, overseeing more than $5 billion of assets invested through domestic and global funds, as well as separately managed accounts. Additionally, she led the firm’s buy-side investment teams for REIT securities strategies and assets held by institutional and private wealth clients. Ms. Sandstrom continues to serve as an advisor to Heitman’s securities business leaders. 5

DIVIDEND On July 26, 2018, our Board declared a quarterly cash dividend of $0.37 per common share. The dividend will be paid on August 21, 2018 to stockholders of record as of the close of business on August 6, 2018. SUSTAINABILITY For the seventh consecutive year, we were named as a constituent to the FTSE4Good Index Series, an equity index series designed to facilitate investment in companies that meet globally recognized environmental, social and governance criteria. More information about HCP's sustainability efforts, including a link to our Sustainability Report, is available in the Sustainability section which can be found on our website at www.hcpi.com/sustainable-growth. 2018 GUIDANCE For full-year 2018, we expect net income per share to range between $0.79 and $0.85; FFO per share to range between $1.65 and $1.69; and FFO as adjusted per share to range between $1.79 and $1.83, representing a $0.01 per share increase at the mid-point. In addition, we expect 2018 SPP Cash NOI to increase between 0.25% and 1.75%. These estimates do not reflect the potential impact from unannounced future transactions other than capital recycling activities. For additional detail and information regarding these estimates, refer to the "Projected Full Year 2018 SPP Cash NOI Growth" table below, the 2018 Guidance section of our corresponding Supplemental Report and the 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 Growth 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% Total Portfolio SPP Growth 0.25% 1.75% COMPANY INFORMATION HCP has scheduled a conference call and webcast for Thursday, August 2, 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 June 30, 2018. The conference call is accessible by dialing (888) 317-6003 (U.S.) or (412) 317-6061 (International). The conference ID number is 6277849. You may also access the conference call via webcast in the Investor Relations section of our website at http://ir.hcpi.com. Through August 17, 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 10121778. Our Supplemental Report for the current period is also 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. 6

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 Growth” 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 "HCP and Morgan Stanley Real Estate Investing Expand Strategic Medical Office Joint Venture Relationship", "Transaction Updates", "Operator Transition Update", "Development Updates" and "Balance Sheet." 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 7

The Numbers Overview(1) As of and for the quarter ended June 30, 2018, dollars, square feet and shares in thousands, except per share data Full Year 2018 Guidance 2Q18 YTD 2018 (August 2, 2018) Financial Metrics (1) Reconciliations, definitions and important discussions Diluted earnings per common share $0.19 $0.28 $0.79 - $0.85 regarding the usefulness and limitations of the non-GAAP financial measures used in this report can be found at Diluted FFO per common share $0.45 $0.91 $1.65 - $1.69 http://ir.hcpi.com/financial-reconciliation. Totals throughout Diluted FFO as adjusted per common share $0.47 $0.95 $1.79 - $1.83 this Earnings Release and Supplemental Report may not add Dividends per common share $0.37 $0.74 $1.48 due to rounding. Rental and related revenues $468,104 $940,936 (2) Includes our share of unconsolidated joint ventures ("JVs") and activity from assets sold and held for sale during the NOI $294,239 $594,519 periods presented. Cash NOI $290,577 $581,170 (3) Including the $402.4 million of proceeds receivable from the Portfolio Income(2) $311,893 $630,588 U.K. JV transaction (which was received on July 2, 2018), Net Debt to Adjusted EBITDA would have been 6.3x at June 30, 2018. Same Property Portfolio Cash NOI Growth (4) Our Other non-reportable segment includes 103 properties Senior housing triple-net 0.7% 0.4% 0.50% - 1.50% in unconsolidated JVs, 68 of which were contributed to our SHOP (4.4%) (3.6%) (4.00%) - 0.00% U.K. JV in June 2018. See the Other Unconsolidated JV page in this report for further details. Life science 0.5% 0.5% 0.25% - 1.25% Medical office 2.5% 2.0% 1.75% - 2.75% Other 1.7% 1.1% 0.50% - 1.50% Total 0.7% 0.4% 0.25% - 1.75% 2Q18 2Q18 Capitalization Debt Ratios Common stock outstanding and DownREIT units 476,449 Financial Leverage 45.0% Total Market Equity $12,301,914 Secured Debt Ratio 2.6% Enterprise Debt $7,900,104 Net Debt to Adjusted EBITDA 6.6x (3) Adjusted Fixed Charge Coverage 3.7x Property Count Capacity Occupancy Portfolio Statistics Senior housing triple-net 169 16,956 Units 85.8% SHOP 102 13,527 Units 84.6% Life science 133 7,782 Sq. Ft. 94.8% Medical office 254 18,472 Sq. Ft. 91.7% Other(4) 118 N/A N/A Total 776 N/A N/A 8

HCP, Inc. Consolidated Balance Sheets In thousands, except share and per share data (unaudited) June 30, 2018 December 31, 2017 Assets Real estate: Buildings and improvements $ 10,683,541 $ 11,239,732 Development costs and construction in progress 373,818 447,976 Land 1,655,012 1,785,865 Accumulated depreciation and amortization (2,750,351) (2,741,695) Net real estate 9,962,020 10,731,878 Net investment in direct financing leases 712,570 714,352 Loans receivable, net 38,691 313,326 Investments in and advances to unconsolidated joint ventures 628,607 800,840 Accounts receivable, net of allowance of $4,755 and $4,425, respectively 43,965 40,733 Cash and cash equivalents 91,381 55,306 Restricted cash 30,548 26,897 Intangible assets, net 294,056 410,082 Assets held for sale, net 692,702 417,014 Proceeds receivable from U.K. JV transaction 402,447 — Other assets, net 554,400 578,033 Total assets $ 13,451,387 $ 14,088,461 Liabilities and Equity Bank line of credit $ 545,226 $ 1,017,076 Term loan 222,923 228,288 Senior unsecured notes 6,401,502 6,396,451 Mortgage debt 140,321 144,486 Other debt 93,070 94,165 Intangible liabilities, net 49,976 52,579 Liabilities of assets held for sale, net 10,357 14,031 Accounts payable and accrued liabilities 398,920 401,738 Deferred revenue 172,369 144,709 Total liabilities 8,034,664 8,493,523 Commitments and contingencies Common stock, $1.00 par value: 750,000,000 shares authorized; 469,829,639 and 469,435,678 shares issued and outstanding, respectively 469,830 469,436 Additional paid-in capital 8,187,385 8,226,113 Cumulative dividends in excess of earnings (3,509,641) (3,370,520) Accumulated other comprehensive income (loss) (4,080) (24,024) Total stockholders' equity 5,143,494 5,301,005 Joint venture partners 96,341 117,045 Non-managing member unitholders 176,888 176,888 Total noncontrolling interests 273,229 293,933 Total equity 5,416,723 5,594,938 Total liabilities and equity $ 13,451,387 $ 14,088,461 9

HCP, Inc. Consolidated Statements of Operations In thousands, except per share data (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Revenues: Rental and related revenues $ 279,056 $ 263,820 $ 558,634 $ 550,038 Tenant recoveries 38,784 35,259 75,958 68,934 Resident fees and services 136,774 125,416 279,588 265,648 Income from direct financing leases 13,490 13,564 26,756 27,276 Interest income 1,447 20,869 7,812 39,200 Total revenues 469,551 458,928 948,748 951,096 Costs and expenses: Interest expense 73,038 77,788 148,140 164,506 Depreciation and amortization 143,292 130,751 286,542 267,305 Operating 173,866 153,163 346,418 312,244 General and administrative 22,514 21,286 51,689 43,764 Transaction costs 2,404 867 4,599 1,924 Impairments (recoveries), net 13,912 56,682 13,912 56,682 Total costs and expenses 429,026 440,537 851,300 846,425 Other income (expense): Gain (loss) on sales of real estate, net 46,064 412 66,879 317,670 Other income (expense), net 1,786 71 (38,621) 51,279 Total other income (expense), net 47,850 483 28,258 368,949 Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures 88,375 18,874 125,706 473,620 Income tax benefit (expense) 4,654 2,987 9,990 9,149 Equity income (loss) from unconsolidated joint ventures (101) 240 469 3,509 Net income (loss) 92,928 22,101 136,165 486,278 Noncontrolling interests' share in earnings (2,986) (2,718) (5,991) (5,750) Net income (loss) attributable to HCP, Inc. 89,942 19,383 130,174 480,528 Participating securities' share in earnings (461) (100) (852) (674) Net income (loss) applicable to common shares $ 89,481 $ 19,283 $ 129,322 $ 479,854 Earnings per common share: Basic $ 0.19 $ 0.04 $ 0.28 $ 1.02 Diluted $ 0.19 $ 0.04 $ 0.28 $ 1.02 Weighted average shares outstanding: Basic 469,769 468,646 469,664 468,474 Diluted 469,941 468,839 469,799 473,366 10

HCP, Inc. Funds From Operations In thousands, except per share data (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Net income (loss) applicable to common shares $ 89,481 $ 19,283 $ 129,322 $ 479,854 Real estate related depreciation and amortization 143,292 130,751 286,542 267,305 Real estate related depreciation and amortization on unconsolidated joint ventures 16,162 16,314 33,550 31,353 Real estate related depreciation and amortization on noncontrolling interests and other (1,664) (3,634) (4,207) (7,820) Other depreciation and amortization 1,268 2,347 2,563 5,358 Loss (gain) on sales of real estate, net (46,064) (412) (66,879) (317,670) Loss (gain) upon consolidation of real estate, net(1) — — 41,017 — Taxes associated with real estate dispositions(2) 1,147 1 1,147 (5,498) Impairments (recoveries) of depreciable real estate, net(3) 6,273 — 6,273 — FFO applicable to common shares 209,895 164,650 429,328 452,882 Distributions on dilutive convertible units — — — 3,654 Diluted FFO applicable to common shares $ 209,895 $ 164,650 $ 429,328 $ 456,536 Diluted FFO per common share $ 0.45 $ 0.35 $ 0.91 $ 0.96 Weighted average shares outstanding - diluted FFO 469,941 468,839 469,799 473,366 Impact of adjustments to FFO: Transaction-related items $ 1,993 $ 840 $ 3,934 $ 1,896 Other impairments (recoveries), net(4) 7,639 56,682 4,341 5,787 Severance and related charges(5) — — 8,738 — Litigation costs 179 3,366 585 5,205 Foreign currency remeasurement losses (gains) (195) (768) (65) (845) Total adjustments 9,616 60,120 17,533 12,043 FFO as adjusted applicable to common shares 219,511 224,770 446,861 464,925 Distributions on dilutive convertible units and other (28) 1,738 (45) 3,632 Diluted FFO as adjusted applicable to common shares $ 219,483 $ 226,508 $ 446,816 $ 468,557 Diluted FFO as adjusted per common share $ 0.47 $ 0.48 $ 0.95 $ 0.99 Weighted average shares outstanding - diluted FFO as adjusted 469,941 473,528 469,799 473,366 (1) For the six months ended June 30, 2018, represents the loss on consolidation of seven U.K. care homes. (2) Represents the income tax impact of our RIDEA II transactions in June 2018 and January 2017. (3) For the three and six months ended June 30, 2018, represents the impairment of two underperforming SHOP portfolios classified as held for sale (13 total assets). (4) For the three months ended June 30, 2018, represents the impairment of an undeveloped life science land parcel classified as held for sale. For the three months ended June 30, 2017, represents the impairment of our Tandem Mezzanine Loan, which was sold in the first quarter of 2018. For the six months ended June 30, 2018, represents the impairment of an undeveloped life science land parcel classified as held for sale, partially offset by an impairment recovery upon the sale of our Tandem Mezzanine Loan in March 2018. For the six months ended June 30, 2017, represents the impairment of our Tandem Mezzanine Loan, net of the impairment recovery upon the sale of our Four Seasons Notes in the first quarter of 2017. (5) For the six months ended June 30, 2018, relates to the departure of our former Executive Chairman, including $6 million of cash severance and $3 million of equity award vestings. 11

HCP, Inc. Funds Available for Distribution In thousands (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 FFO as adjusted applicable to common shares $ 219,511 $ 224,770 $ 446,861 $ 464,925 Amortization of deferred compensation(1) 4,299 3,327 7,719 7,092 Amortization of deferred financing costs 3,355 3,843 6,690 7,702 Straight-line rents (5,793) (4,882) (16,479) (12,278) FAD capital expenditures (26,346) (25,477) (45,592) (47,554) Lease restructure payments 303 314 601 854 CCRC entrance fees(2) 3,652 4,713 6,679 8,362 Deferred income taxes (5,731) (4,342) (7,871) (6,716) Other FAD adjustments(3) (3,147) (2,109) (6,774) (3,685) FAD applicable to common shares 190,103 200,157 391,834 418,702 Distributions on dilutive convertible units — 1,738 — — Diluted FAD applicable to common shares $ 190,103 $ 201,895 $ 391,834 $ 418,702 Weighted average shares outstanding - diluted FAD 469,941 473,528 469,799 468,669 (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 six months ended June 30, 2018. (2) 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. (3) Primarily includes our share of FAD capital expenditures from unconsolidated joint ventures. 12

Portfolio Summary As of and for the quarter ended June 30, 2018, dollars in thousands Property Portfolio Portfolio Private PORTFOLIO INCOME Count Age Investment Income Pay %(1) Wholly Owned Property Portfolio Unconsolidated JVs 6% Senior housing triple-net 169 20 $ 3,339,787 $ 70,929 92.6 U.K. 4% SHOP 98 22 2,500,375 36,461 96.8 Life science 120 21 4,221,008 76,067 100.0 Hospitals 6% SHOP 12% Medical office 251 22 4,226,220 76,982 100.0 Other 15 28 549,987 30,139 81.9 653 21 $ 14,837,376 $ 290,577 95.9 Debt Investments Other — N/A $ 57,632 $ 1,447 — Medical Senior Developments office $311.9M housing 25% triple-net Life science 10 N/A $ 283,227 $ — — 23% Redevelopments SHOP 4 N/A $ 39,267 $ — — Life science 3 N/A 77,484 — — Medical office 3 N/A 83,026 — — 10 N/A $ 199,778 (2) $ — — Life science 24% Total Senior housing triple-net 169 20 $ 3,339,787 $ 70,929 92.6 SHOP 102 22 2,539,642 36,461 96.8 Life science 133 21 4,581,719 76,067 100.0 Medical office 254 22 4,309,246 76,982 100.0 Other 15 28 607,619 31,586 81.9 673 21 $ 15,378,013 $ 292,024 95.9 HCP's Share of Unconsolidated JVs(3) Other(4) 103 30 $ 1,232,947 $ 19,869 81.9 Total Portfolio 776 22 $ 16,610,960 $ 311,893 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) Includes Construction in Process ("CIP") and buildings or portions of buildings placed in Redevelopment. (3) 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. (4) Our 103 properties in unconsolidated JVs are reported in the Other non-reportable segment and include 68 assets contributed to our U.K. JV in June 2018. See the Other Unconsolidated JV page in this report for further details. 13

NOI and Cash NOI Summary For the quarter ended June 30, 2018, dollars in thousands NOI SUMMARY Rental and Operating Operating (1) Revenues Expenses NOI Wholly-Owned Senior housing triple-net $ 70,714 $ (791) $ 69,922 SHOP 138,352 (101,767) 36,585 Life science 101,031 (22,731) 78,299 Medical office 125,246 (47,271) 77,975 Other 32,762 (1,305) 31,457 $ 468,104 $ (173,865) $ 294,239 CASH NOI SUMMARY Cash Rental and Cash Operating Operating (1) Revenues Expenses Cash NOI Wholly-Owned Senior housing triple-net $ 71,707 $ (778) $ 70,929 SHOP 136,700 (100,239) 36,461 Life science 98,780 (22,714) 76,067 Medical office 123,545 (46,564) 76,982 Other 31,444 (1,305) 30,139 $ 462,176 $ (171,600) $ 290,577 (1) NOI and Cash NOI include $2.1 million attributable to noncontrolling interest, excluding DownREITS. 14

Same Property Portfolio As of June 30, 2018, dollars in thousands SAME PROPERTY PORTFOLIO RECONCILIATION Senior Housing Life Medical Triple-net SHOP Science Office Other Total (1) Our 103 properties in unconsolidated JVs are reported in the Other non-reportable segment Total Property Count 169 102 133 254 118 776 and include 68 assets in our U.K. JV that was Unconsolidated JVs(1) — — — — (103) (103) formed in June 2018. Acquisitions — (1) (4) (14) — (19) Assets in Development — — (10) — — (10) Assets in Redevelopment — (4) (3) (3) — (10) Assets held for sale (11) (25) (4) — — (40) Senior housing triple-net to SHOP conversions — (15) — — — (15) Completed Developments and Redevelopments - not stabilized — (2) (4) (11) — (17) Three-Month SPP Property Count 158 55 108 226 15 562 Senior housing triple-net to SHOP conversions — (1) — — — (1) Six-Month SPP Property Count 158 54 108 226 15 561 THREE-MONTH SPP % of Year-Over-Year Sequential Property Portfolio Occupancy Growth Occupancy Growth Property based on SPP Cash SPP Cash Count Investment Investment 2Q18 2Q17 SPP NOI NOI 2Q18 1Q18 SPP NOI NOI Senior housing triple-net 158 $ 3,174,273 95 85.6% 87.1% 2.4% 0.7% 85.6% 86.5% —% 4.5% SHOP 55 1,579,990 63 85.9% 87.1% (7.2%) (4.4%) 85.9% 87.4% (9.9%) (8.1%) Life science 108 3,218,052 76 95.5% 96.3% 0.9% 0.5% 95.5% 94.3% 0.3% 1.3% Medical office 226 3,510,275 83 91.9% 92.5% 2.4% 2.5% 91.9% 92.2% 0.9% 1.0% Other 15 549,987 100 N/A N/A 4.5% 1.7% N/A N/A 0.5% 0.3% Total 562 $ 12,032,576 81 1.1% 0.7% (0.8%) 0.9% SIX-MONTH SPP Year-Over-Year % of Occupancy Growth Property Portfolio Six Months Ended Property based on SPP Cash Count Investment Investment June 2018 June 2017 SPP NOI NOI Senior housing triple-net 158 $ 3,174,273 95 85.6% 87.1% 3.4% 0.4% SHOP 54 1,559,921 62 86.6% 88.1% (6.1%) (3.6%) Life science 108 3,218,052 76 95.5% 96.3% 1.0% 0.5% Medical office 226 3,510,275 83 91.9% 92.5% 1.7% 2.0% Other 15 549,987 100 N/A N/A 3.5% 1.1% Total 561 $12,012,508 81 1.3% 0.4% 15

Capitalization Dollars and shares in thousands, except price per share data TOTAL CAPITALIZATION June 30, 2018 Shares Value Total Value Common stock (NYSE: HCP) 469,830 $ 25.82 $ 12,131,011 Convertible partnership (DownREIT) units 6,619 25.82 170,903 Total Market Equity 476,449 $ 12,301,914 Consolidated debt(1) N/A 7,405,281 Total Market Equity and Consolidated Debt 476,449 $ 19,707,195 HCP's share of unconsolidated JV debt N/A 497,062 Total Market Equity and Enterprise Debt 476,449 $ 20,204,257 COMMON STOCK AND EQUIVALENTS Weighted Average Shares Weighted Average Shares Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Shares Outstanding Diluted FFO Diluted Diluted FFO Diluted June 30, 2018 Diluted EPS Diluted FFO as adjusted FAD Diluted EPS Diluted FFO as adjusted FAD Common stock 469,830 469,769 469,769 469,769 469,769 469,664 469,664 469,664 469,664 Common stock equivalent securities: Restricted stock units 1,746 156 156 156 156 120 120 120 120 Dilutive impact of options 16 16 16 16 16 15 15 15 15 Convertible partnership (DownREIT) units 6,619 — — — — — — — — Total common stock and equivalents 478,211 469,941 469,941 469,941 469,941 469,799 469,799 469,799 469,799 (1) Includes mortgage debt of $2.2 million on assets held for sale. 16

Indebtedness and Ratios As of June 30, 2018, dollars in thousands DEBT MATURITIES AND SCHEDULED PRINCIPAL REPAYMENTS (AMORTIZATION) HCP's Share of Senior Unsecured Notes Mortgage Debt Unconsolidated JV Debt Enterprise Debt Bank Line Consolidated of Credit(1) Term Loan(2) Amounts Rates %(3) Amounts Rates %(3) Debt Amounts(4) Rates %(3) Amounts Rates %(3) 2018 $ — $ — $ — — $ 1,710 — $ 1,710 $ 1,235 — $ 2,945 — 2019 — 223,131 450,000 3.95 3,561 — 676,692 163,484 5.31 840,176 3.64 2020 — — 800,000 2.79 3,609 5.08 803,609 12,003 4.22 815,612 2.81 2021 545,226 — 700,000 (5) 5.56 10,957 5.26 1,256,183 48,836 4.50 1,305,019 4.48 2022 — — 900,000 3.93 2,691 — 902,691 34,987 4.54 937,678 3.95 2023 — — 800,000 4.39 2,811 — 802,811 4,053 3.96 806,864 4.38 2024 — — 1,150,000 4.17 2,937 — 1,152,937 935 — 1,153,872 4.17 2025 — — 1,350,000 3.93 3,069 — 1,353,069 18,911 3.87 1,371,980 3.93 2026 — — — — 3,006 2.85 3,006 942 — 3,948 2.85 2027 — — — — 9,184 5.28 9,184 945 — 10,129 5.28 Thereafter — — 300,000 6.88 91,509 4.01 391,509 38,006 3.86 429,515 5.87 Subtotal $ 545,226 $ 223,131 $ 6,450,000 $ 135,044 $ 7,353,401 $ 324,337 $ 7,677,738 Other Debt(6) — — — — 93,070 175,835 268,905 (Discounts), premium and debt costs, net — (208) (48,498) 5,277 (43,429) (3,110) (46,539) Total $ 545,226 $ 222,923 $ 6,401,502 $ 140,321 $ 7,403,042 $ 497,062 $ 7,900,104 Weighted average interest rate % 3.09 1.80 4.20 4.19 4.04 4.75 4.07 Weighted average maturity in years 3.3 0.5 5.3 19.4 5.3 3.4 5.2 (1) Includes £85 million ($112 million) translated into U.S. dollars ("USD") at June 30, 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 $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 June 30, 2018. On July 3, 2018, we exercised our right to repay the outstanding £169 million balance and re-borrow $224 million. The term loan contains a one-year committed extension option. (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) On July 16, 2018, we repaid these notes in their entirety. (6) Represents non-interest bearing Entrance Fee deposits at certain of our senior housing facilities and demand notes that have no scheduled maturities. 17

Indebtedness and Ratios As of June 30, 2018, dollars in thousands, includes HCP's pro rata share of unconsolidated JVs DEBT STRUCTURE Weighted Average Balance % of Total Rates % Years to Maturity Secured Fixed rate $ 182,937 2 4.19 15.9 Floating rate 276,444 4 4.85 2.9 Combined $ 459,381 6 4.59 8.1 Unsecured Fixed rate 6,450,000 84 4.20 5.3 Floating rate 768,357 10 2.71 2.5 Combined $ 7,218,357 94 4.04 5.0 Total Fixed rate 6,632,937 86 4.20 5.6 Floating rate 1,044,801 14 3.28 2.6 Combined $ 7,677,738 100 4.07 5.2 Other Debt(1) 268,905 (Discounts), premiums and debt costs, net (46,539) Enterprise Debt $ 7,900,104 FINANCIAL COVENANTS(2) Bank Line of Credit Requirement Actual Compliance Leverage Ratio No greater than 60% 46% 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 ($ billions) No less than $6.5B $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. 18

Investment Summary For the three and six months ended June 30, 2018, dollars and square feet in thousands INVESTMENT SUMMARY Three Months Ended Six Months Ended (1) In March 2018, we acquired the rights to develop a 214,000 square foot lab building on our June 30, 2018 June 30, 2018 Hayden life science campus for $21 million. Hayden development entitlements(1) $ — $ 21,390 (2) In March 2018, we acquired Brookdale's 10% interest in the RIDEA I JV for $63 million bringing (2) our total ownership in RIDEA I to 100%. Noncontrolling interest in RIDEA I JV — 62,632 (3) Represents fundings under the $115 million participating development loan for the construction Participating development loan(3) 2,266 2,266 of 620 Terry, a $147 million senior housing development located in Seattle. (4) Represents the average yield calculated using Cash NOI for the 12-month period prior to the sale Development fundings 53,328 108,653 for dispositions and for the 12-month period ended June 2018 for assets held for sale; excludes Redevelopment fundings 17,144 30,248 land held for sale. Lease commissions - Dev/Redev/Acq 5,013 5,013 (5) In June 2018, we sold our remaining 40% interest in the RIDEA II JV, generating proceeds of $332 million. Total $ 77,751 $ 230,202 (6) In June 2018, we sold a 51% interest in our U.K. assets, generating net proceeds of $402 million, DEBT INVESTMENT REPAYMENTS including $146 million of third party property-level financing at our share. (7) Closed in July 2018. Gross (8) Four properties closed in July 2018 for $19 million. Date Proceeds Participating development financing February 2018 $ 21,498 Tandem March 2018 112,000 Total $ 133,498 DISPOSITIONS Property Sales Price/ Trailing Cash Date Capacity Count Property Type Proceeds Yield(4) West Palm Beach, FL January 2018 34 Units 1 SHOP $ 3,350 Altamonte Springs, FL (sale to Brookdale) January 2018 137 Units 1 SHOP 32,105 Beaumont, TX April 2018 159 Units 1 SHOP 23,000 Various (sale to Brookdale) April 2018 995 Units 5 SHOP / Senior housing 242,753 Various June 2018 439 Units 4 SHOP 37,500 RIDEA II JV(5) June 2018 5,302 Units 49 Other 332,000 U.K. sale of partnership interest(6) June 2018 N/A N/A Other 402,447 Total 7,066 Units 61 $ 1,073,155 7.1% ASSETS HELD FOR SALE Held for Sale Property Projected Sales Trailing Cash Date Capacity Count Property Type Price Yield(4) South San Francisco, CA(7) August 2017 337 Sq. Ft. 4 Life science $ 269,400 Sterling Heights, MI December 2017 120 Units 1 SHOP 23,000 Various, RI June 2018 272 Units 2 SHOP 14,500 11-Community Portfolio(8) June 2018 1,048 Units 11 SHOP 65,750 22-Community Portfolio June 2018 2,781 Units 22 SHOP / Senior housing 428,000 Poway II Land June 2018 N/A N/A Life science 35,400 Total 40 $ 836,050 7.1% 19

Developments As of June 30, 2018, dollars and square feet in thousands DEVELOPMENT PROJECTS IN PROCESS Property (1) Cost to Total at Project MSA Property Type Count CIP Complete(1) Completion Wholly-Owned Ridgeview San Diego, CA Life science 3 $ 54,527 $ 8,069 $ 62,596 The Cove at Oyster Point - Phase III San Francisco, CA Life science 2 121,229 102,302 223,531 Sorrento Summit San Diego, CA Life science 1 2,136 14,704 16,840 Sierra Point - Phase I San Francisco, CA Life science 2 67,302 156,361 223,663 The Cove at Oyster Point - Phase IV San Francisco, CA Life science 1 14,642 92,653 107,295 75 Hayden Boston, MA Life science 1 23,391 136,824 160,214 10 $ 283,227 $ 510,913 $ 794,139 Projected stabilized yield typically ranges from 6.0% - 8.0% % of Total Actual / Estimated Occupancy Total Project Project Project Project Capacity (Sq. Ft.) Leased Start Initial Stabilized(2) Wholly-Owned Ridgeview 301 100 2Q16 4Q18 2Q19 The Cove at Oyster Point - Phase III 324 100 4Q16 1Q19 3Q19 Sorrento Summit 28 100 3Q17 3Q19 3Q19 Sierra Point - Phase I 215 — 4Q17 4Q19 4Q20 The Cove at Oyster Point - Phase IV 160 — 2Q18 1Q20 4Q20 75 Hayden 214 — 2Q18 4Q20 4Q22 1,242 53 (1) Includes lease commissions incurred to date and projected lease commissions through stabilization. (2) Economic stabilization typically occurs three to six months following stabilized occupancy. 20

Redevelopments and Land Held for Development(1) As of June 30, 2018, dollars and square feet in thousands REDEVELOPMENT PROJECTS IN PROCESS Incremental Costs Property Property Placed in Cost to Project Estimated Project MSA Type Count Service CIP(2) Complete(2) Total Start Completion(3) Wholly-Owned 3535 Market Street Philadelphia, PA Medical office 1 $ 12,275 $ 14,415 $ 17,687 $ 44,377 2Q17 3Q18 Directors Place - 4939 San Diego, CA Life science 1 — 4,227 5,913 10,140 2Q17 2Q18 Wateridge San Diego, CA Life science 1 — 5,486 8,021 13,507 2Q17 4Q18 Summit III Nashville, TN Medical office 1 — 502 5,498 6,000 1Q18 1Q19 Nordstrom Tower Seattle, WA Medical office 1 — 1,001 6,099 7,100 1Q18 1Q19 Biotech Gateway San Francisco, CA Life science 1 — 2,122 13,498 15,620 1Q18 1Q19 Various SHOP Various SHOP 4 — 759 36,845 37,604 2Q18 3Q19 - 1Q20 10 $ 12,275 $ 28,512 $ 93,561 $ 134,348 Projected stabilized return on incremental capital invested typically ranges from 9.0% to 12.0% LAND HELD FOR DEVELOPMENT Estimated Gross Site Rentable Investment Project MSA Property Type Acreage Sq. Ft. to Date Wholly-Owned Sierra Point San Francisco, CA Life science 14 365 $ 53,263 Forbes Research Center San Francisco, CA Life science 8 326 46,544 Modular Labs III San Francisco, CA Life science 2 106 10,766 Torrey Pines Science Center San Diego, CA Life science 6 93 11,728 Directors Place San Diego, CA Life science 4 82 6,220 Remaining Various Various 13 N/A 4,589 47 972 $ 133,110 (1) Redevelopments are excluded from SPP until they are Stabilized. See Glossary for further definition. (2) Includes lease commissions incurred to date and projected lease commissions through stabilization. (3) Excludes the completion of tenant improvements. 21

Capital Expenditures For the quarter and six months ended June 30, 2018, dollars in thousands, except per unit/square foot SECOND QUARTER Senior Housing Triple-net SHOP Life Science Medical Office Other Total Wholly-Owned Recurring capital expenditures $ 248 $ 5,455 $ 650 $ 3,719 $ — $ 10,071 Tenant improvements - 2nd generation — — 3,930 5,907 19 9,856 Lease commissions - 2nd generation(1) — — 3,731 2,689 (2) 6,418 FAD capital expenditures $ 248 $ 5,455 $ 8,311 $ 12,315 $ 17 $ 26,345 Revenue enhancing capital expenditures 1,172 2,030 2,691 2,071 — 7,964 Casualty related capital expenditures — 2,074 — — — 2,074 Initial Capital Expenditures ("ICE")(2) — 28 182 53 — 262 Tenant improvements - 1st generation — — 23,011 7,703 — 30,714 Lease commissions - Dev/Redev/Acq(3) — — 4,942 71 — 5,013 Development — — 51,619 1,709 — 53,328 Redevelopment — 1,288 5,003 10,854 — 17,144 Capitalized interest — 5 3,050 811 — 3,866 Total capital expenditures $ 1,420 $ 10,880 $ 98,807 $ 35,587 $ 17 $ 146,710 (4) $410 $0.08 $0.20 (4) Recurring capital expenditures per unit/sq. ft. per Unit per Sq. Ft. per Sq. Ft. SIX MONTHS Wholly-Owned Recurring capital expenditures $ 311 $ 9,104 $ 1,047 $ 5,845 $ — $ 16,307 Tenant improvements - 2nd generation — — 7,065 11,921 19 19,005 Lease commissions - 2nd generation(1) — — 5,413 4,851 15 10,280 FAD capital expenditures $ 311 $ 9,104 $ 13,525 $ 22,618 $ 34 $ 45,591 Revenue enhancing capital expenditures 5,912 3,613 3,001 2,672 1,150 16,348 Casualty related capital expenditures — 3,505 — — — 3,505 ICE — 23 1,076 70 — 1,169 Tenant improvements - 1st generation — — 36,154 19,939 — 56,093 Lease commissions - Dev/Redev/Acq(3) — — 4,942 71 — 5,013 Development — — 102,290 6,363 — 108,653 Redevelopment — 1,306 6,884 22,058 — 30,248 Capitalized interest — 15 5,380 2,049 — 7,444 Total capital expenditures $ 6,222 $ 17,567 $ 173,252 $ 75,840 $ 1,184 $ 274,065 (4) $697 $0.13 $0.32 (4) Recurring capital expenditures per unit/sq. ft. per Unit per Sq. Ft. per Sq. Ft. (1) Excludes lease commissions on Development, Redevelopment, and 1st generation recently acquired vacant space. (2) 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. (3) Includes lease commissions for Development, Redevelopment, and 1st generation recently acquired vacant space of $3.3 million, $0.8 million and $0.9 million, respectively. (4) Senior housing triple-net per unit and Other per bed are not presented as they are not meaningful. 22

Portfolio Diversification As of and for the quarter ended June 30, 2018, dollars in thousands PORTFOLIO INCOME BY MSA Property Senior Housing Medical MSA Count(1) Triple-net SHOP Life Science Office Other Total % of Total San Francisco, CA 78 $ 2,557 $ — $ 48,901 $ 775 $ — $ 52,233 17 Dallas, TX 41 2,086 1,264 — 9,819 7,431 20,600 7 Houston, TX 40 764 6,869 — 8,949 325 16,906 5 San Diego, CA 34 790 — 13,458 2,173 — 16,421 5 Denver, CO 22 2,136 2,594 — 5,318 — 10,048 3 Washington, DC 19 6,753 2,077 — 957 — 9,786 3 San Jose, CA 15 — — 8,789 652 — 9,441 3 Seattle, WA 13 2,794 — — 6,182 — 8,976 3 Los Angeles, CA 11 2,520 691 — 1,387 3,694 8,292 3 Philadelphia, PA 6 4,110 — — 3,531 — 7,641 2 Remaining 384 46,418 22,966 4,919 37,241 18,690 130,233 42 Cash NOI 663 $ 70,929 $ 36,461 $ 76,067 $ 76,982 $ 30,139 $ 290,577 93 Interest income — — — — — 1,447 1,447 — HCP's Share of Unconsolidated JVs 101 — — — — 19,869 19,869 6 Portfolio Income 764 $ 70,929 $ 36,461 $ 76,067 $ 76,982 $ 51,455 $ 311,893 100 (1) Excludes twelve properties in Development including two unconsolidated development JVs. 23

Portfolio Diversification As of and for the quarter ended June 30, 2018, dollars in thousands, includes HCP's pro rata share of unconsolidated JVs PORTFOLIO INCOME BY OPERATOR/TENANT Tenant/Credit Exposure SHOP/Operator Exposure Senior % of % of Property Housing Life Medical Portfolio Property Portfolio Operator/Tenant Count Triple-net Science Office Other Total Income Count SHOP Other Total Income Brookdale 66 $ 27,726 $ — $ — $ — $ 27,726 9 73 $ 22,263 $ 17,150 $ 39,413 13 Sunrise Senior Living 48 24,322 — — — 24,322 8 3 1,823 — 1,823 — Amgen 7 — 12,942 — — 12,942 4 — — — — — Atria Senior Living — — — — — — — 25 8,250 (258) 7,992 3 Google 11 — 7,936 — — 7,936 3 — — — — — Hospital Corporation of America ("HCA")(1) 5 — — 483 6,069 6,553 2 (1) — — — — — Remaining 502 18,881 55,189 76,498 27,147 177,715 57 24 4,126 1,347 5,472 2 Portfolio Income 639 $ 70,929 $ 76,067 $ 76,982 $ 33,216 $257,193 82 125 $ 36,461 $ 18,239 $ 54,700 18 PRO FORMA PORTFOLIO INCOME BY OPERATOR/TENANT(2) Tenant/Credit Exposure SHOP/Operator Exposure Senior % of % of Property Housing Life Medical Portfolio Property Portfolio Operator/Tenant Count Triple-net Science Office Other Total Income Count SHOP Other Total Income Brookdale 43 $ 18,428 $ — $ — $ — $ 18,428 7 37 $ 13,357 $ 13,389 $ 26,746 9 Sunrise Senior Living 48 24,322 — — — 24,322 8 3 2,166 — 2,166 1 Amgen 7 — 12,942 — — 12,942 5 — — — — — Atria Senior Living — — — — — — — 24 9,909 (258) 9,651 3 Google 11 — 7,936 — — 7,936 3 — — — — — HCA(1) 5 — — 483 6,069 6,553 2 (1) — — — — — Remaining 430 18,883 49,825 76,498 16,572 161,778 57 34 8,405 1,424 9,829 4 Portfolio Income 544 $ 61,634 $ 70,703 $ 76,982 $ 22,641 $231,959 83 98 $ 33,836 $ 14,556 $ 48,392 17 (1) Includes Cash NOI for 1.3 million square feet in five properties (including a hospital) that are 100% leased to HCA, and excludes 2.7 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 four life science properties that closed in July 2018 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. 24

Expirations and Maturities As of June 30, 2018, dollars in thousands EXCLUDES PURCHASE AND PREPAYMENT OPTIONS Annualized Base Rent Senior Housing Medical Interest Year Total % of Total Triple-net Life Science Office Other Income 2018(1) $ 56,234 5 $ — $ 9,389 $ 46,845 $ — $ — 2019 87,530 8 2,305 30,157 55,068 — — 2020 127,911 12 39,804 19,576 59,400 8,145 986 2021 107,377 10 7,764 51,871 43,835 1,619 2,288 2022 82,199 8 1,513 22,524 43,180 13,974 1,008 2023 128,193 12 45,158 56,134 26,902 — — 2024 64,190 6 13,046 5,756 22,607 22,781 — 2025 104,803 10 9,854 40,588 33,292 20,878 191 2026 37,716 4 4,316 13,451 19,949 — — 2027 49,949 5 12,335 22,426 15,188 — — Thereafter 203,754 19 137,883 28,192 29,308 8,371 — $ 1,049,858 100 $ 273,979 $ 300,063 $ 395,574 $ 75,768 $ 4,474 Weighted average maturity in years 5.9 8.7 5.3 4.2 6.5 3.2 REFLECTS PURCHASE AND PREPAYMENT OPTIONS Annualized Base Rent Senior Housing Medical Interest Year Total % of Total Triple-net Life Science Office Other Income(2) 2018(1) $ 65,144 6 $ — $ 9,389 $ 54,856 $ — $ 900 (1) Includes month-to-month and 2019 99,804 10 2,305 30,157 51,243 15,112 986 holdover leases. 2020 131,061 12 39,804 25,585 57,527 8,145 — (2) Reflects the earliest point at which there is no prepayment penalty. 2021 117,942 11 7,764 51,871 55,299 1,619 1,388 2022 79,890 8 1,513 22,524 41,470 13,376 1,008 2023 124,976 12 45,158 56,134 23,684 — — 2024 49,086 5 13,046 5,756 22,018 8,267 — 2025 105,602 10 9,854 40,588 34,091 20,878 191 2026 28,724 3 4,316 13,451 10,957 — — 2027 49,883 5 12,335 22,426 15,121 — — Thereafter 197,745 19 137,883 22,184 29,308 8,371 — $ 1,049,858 100 $ 273,979 $ 300,063 $ 395,574 $ 75,768 $ 4,474 25

Triple-Net Master Lease Profile(1)(2) INVESTMENT TYPE 2.2% x 25 13.00x2. Senior Housing No Corporate Guaranty x 0.6% 00 2. Other 0.2% LOWER RISK LOWER 1.4% % Percent of Total Cash NOI x 0.4% and Interest Income 75 1. x 50 1. 0.1% 1.6% 1.4% 1.1% 1.8% x 2.8% 25 2.1% 0.4% 1. 0.1% 1.4% 1.1% 1.6% 0.5% 0.4% x 1.2% 0.4% 00 1. 0.3% 1.8% x 75 0.1% 0. 0.3% HIGHER RISK 0x .5 0 2 4 6 8 10 12 14 16 18 2250 FACILITY EBITDAR CFC (TRAILING 12 MONTHS ENDED 03/31/2018) EBITDAR FACILITY 0 HIGHER RISK LOWER RISK TERM (YEARS TO EXPIRATION) % of Weighted (1) Excludes properties held for sale or sold, master leases with properties acquired Total Cash NOI Average during the period required to calculate CFC and master leases that include newly and Interest # of Leases/ Maturity in completed developments that are not stabilized. (3) Facility EBITDAR CFC Income Data Points Years Guaranty (2) Pro forma to reflect the Brookdale Transaction. In connection with the agreement, Less than 1.0x 4.5 7 7.3 53.3% 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 1.00x - 1.25x 12.9 10 8.5 58.9% renewal terms. 1.26x - 1.50x 3.1 3 11.7 48.4% (3) Represents the percentage of total Cash NOI supported by a corporate guaranty. 1.51x and above 4.8 5 6.8 100.0% 26

Senior Housing Triple-net As of and for the quarter ended June 30, 2018, dollars in thousands, except REVPOR Facility Facility Property Occupancy REVPOR EBITDARM EBITDAR Property Portfolio Count Investment Cash NOI Units % Triple-Net CFC CFC Assisted/Independent living 167 $ 3,086,408 $ 65,192 15,901 85.6 $ 5,912 1.24x 1.05x CCRC 2 253,379 5,737 1,055 88.5 6,193 1.39x 1.17x Total 169 $ 3,339,787 $ 70,929 16,956 85.8 $ 5,930 1.25x 1.06x Properties Facility Occupancy REVPOR EBITDARM Facility Operator Investment Cash NOI Count % Pooled Units % Triple-Net CFC EBITDAR CFC Brookdale $ 1,135,719 $ 27,726 66 97 6,681 86.9 $ 5,055 1.23x/1.40x(1) 1.06x/1.22x(1) Sunrise Senior Living 1,364,916 24,322 48 98 5,548 84.4 7,420 1.30x 1.06x Harbor Retirement Associates 212,674 4,759 14 100 1,343 79.5 6,004 1.24x 1.03x Aegis Senior Living 182,152 4,530 10 80 702 92.0 8,400 1.40x 1.22x Capital Senior Living 181,988 4,441 15 100 1,509 84.4 3,266 1.09x 0.95x Remaining 262,339 5,152 16 56 1,173 92.1 5,720 1.13x 0.99x Total $ 3,339,787 $ 70,929 169 93 16,956 85.8 $ 5,930 1.25x/1.31x(1) 1.06x/1.10x(1) (1) Brookdale Facility EBITDARM and EBITDAR CFC, pro forma to reflect the Brookdale Transaction, is 1.40x and 1.22x, respectively. Total Facility EBITDARM and EBITDAR CFC, pro forma to reflect the Brookdale Transaction, is 1.31x and 1.10x, respectively. 27

Senior Housing Triple-net Same Property Portfolio Dollars in thousands, except REVPOR 2Q17 3Q17 4Q17 1Q18 2Q18 Property count 158 158 158 158 158 Investment $ 3,154,808 $ 3,161,495 $ 3,170,516 $ 3,174,159 $ 3,174,273 Units 16,111 16,114 16,111 16,111 16,112 Occupancy % 87.1 86.4 86.5 86.5 85.6 REVPOR Triple-net $ 5,924 $ 5,938 $ 5,948 $ 5,976 $ 6,039 Facility EBITDARM CFC 1.36x 1.33x 1.30x 1.28x 1.26x/1.31x (1) Facility EBITDAR CFC 1.15x 1.12x 1.10x 1.08x 1.06x/1.10x (1) Rental and Operating Revenues $ 63,899 $ 63,597 $ 78,392 (2) $ 65,424 $ 65,410 Operating Expenses (113) (119) (114) (120) (98) NOI $ 63,787 $ 63,478 $ 78,278 (2) $ 65,303 $ 65,312 Cash Rental and Operating Revenues $ 65,876 $ 65,354 $ 68,524 $ 63,489 $ 66,347 Cash Operating Expenses (100) (106) (101) (107) (85) Cash NOI $ 65,776 $ 65,248 $ 68,422 $ 63,382 $ 66,262 Year-Over-Year Three-Month SPP Growth 0.7% (1) Facility EBITDARM and EBITDAR CFC, pro forma to reflect the Brookdale Transaction, is 1.31x and 1.10x, respectively. (2) Includes non-cash adjustments related to the Brookdale Transaction from the value associated with the right to terminate certain triple-net leases, partially offset by the write-off of lease-related intangible assets. Refer to the 4Q17 Earnings Release and Supplemental Report for additional information. 28

Senior Housing Triple-net New Supply As of and for the quarter ended June 30, 2018, dollars in thousands NEW SUPPLY ANALYSIS Senior Housing Triple-net Portfolio 5-Mile Radius(1) % of Cash NOI 5-Year 80+ Triple- Properties/ Exposed Population 80+ Median Median net Cash Units Under to New Growth % Penetration Household Home Unemploy- MSA Units Cash NOI NOI Construction(2) Supply(3) 2018-2023 Rate % Income Value ment % US National Average 13.2 11.8 $ 58 $ 218 4.8 Washington, DC 1,329 $ 6,753 9.5 4 / 421 $ 2,084 14.5 12.7 108 529 3.0 New York, NY 1,146 6,053 8.5 5 / 601 2,810 10.7 3.6 90 529 4.8 Philadelphia, PA 728 4,110 5.8 1 / 64 804 5.5 13.3 86 311 5.0 Seattle, WA 513 2,794 3.9 -- / -- — 15.0 14.5 90 527 4.8 Portland, OR 986 2,608 3.7 4 / 388 1,122 14.7 22.0 67 337 4.5 San Francisco, CA 359 2,557 3.6 1 / 16 1,707 13.1 12.2 89 615 3.9 Los Angeles, CA 385 2,520 3.6 1 / 40 479 9.7 6.6 75 738 4.3 Chicago, IL 530 2,479 3.5 1 / 90 407 9.8 8.6 78 309 6.8 Denver, CO 414 2,136 3.0 1 / 163 748 15.7 17.7 66 374 3.4 Dallas, TX 632 2,086 2.9 -- / -- — 18.8 16.2 67 182 4.1 Jacksonville, FL 486 1,997 2.8 1 / 328 1,318 15.0 19.5 56 222 4.1 Atlanta, GA 560 1,697 2.4 4 / 515 808 18.1 18.0 70 302 3.5 Baltimore, MD 293 1,565 2.2 3 / 274 1,242 15.8 9.3 90 367 4.6 Austin, TX 269 1,543 2.2 1 / 206 1,543 17.6 13.4 55 383 3.5 Sebastian, FL 298 1,505 2.1 -- / -- — 12.5 8.5 49 237 8.5 Charlotte, NC 449 1,470 2.1 -- / -- — 17.9 19.3 63 218 4.7 Detroit, MI 330 1,311 1.8 4 / 364 1,019 10.8 21.4 74 230 3.6 Sacramento, CA 352 1,308 1.8 2 / 144 650 10.1 15.0 70 381 5.3 Providence, RI 276 1,237 1.7 -- / -- — 6.4 11.2 59 319 6.0 Miami, FL 366 1,009 1.4 -- / -- — 10.5 8.3 55 246 5.1 Remaining 6,255 22,189 31.3 11 / 1,211 3,098 12.0 13.9 60 266 4.4 Total 16,956 $ 70,929 100.0 44 / 4,825 $ 19,839 11.9 11.1 $ 73 $ 368 4.4 % of Total Cash NOI and Interest Income 6.8% (1) Demographic data provided by Environmental Systems Research Institute (“ESRI”) for 2018. Construction and supply data provided by National Investment Center for Senior Housing and Care (“NIC”) for the quarter ended June 30, 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. 29

SHOP As of and for the quarter ended June 30, 2018, dollars in thousands, except REVPOR INVESTMENTS Property REVPOR Count Investment Cash NOI Units Occupancy % SHOP Operator Brookdale 57 $ 1,438,589 $ 22,263 8,127 85.3 $ 3,821 Atria Senior Living 25 565,240 8,250 3,398 85.8 3,945 Senior Lifestyle Corp. 7 196,864 2,476 640 81.6 5,545 Sunrise Senior Living 3 116,427 1,823 500 84.2 4,618 Remaining 10 183,255 1,650 862 78.6 4,770 Total 102 $ 2,500,375 $ 36,461 13,527 84.6 $ 4,027 TOTAL OPERATING PORTFOLIO 2Q17 3Q17 4Q17 1Q18 2Q18 Property count 81 84 102 100 102 Investment $ 2,322,058 $ 2,348,506 $ 2,606,937 $ 2,600,444 $ 2,500,375 Units 12,047 12,205 13,744 13,580 13,527 Occupancy % 86.8 86.6 87.3 85.5 84.6 REVPOR SHOP $ 3,999 $ 3,992 $ 3,978 $ 4,069 $ 4,027 Rental and Operating Revenues $ 125,416 $ 126,040 $ 133,789 $ 144,670 $ 138,352 Operating Expenses (85,866) (86,821) (129,265) (1) (101,746) (101,767) NOI $ 39,550 $ 39,219 $ 4,524 (1) $ 42,925 $ 36,585 Cash Rental and Operating Revenues $ 125,527 $ 126,279 $ 132,718 $ 142,318 $ 136,700 Cash Operating Expenses (85,965) (87,095) (94,633) (101,001) (100,239) Cash NOI $ 39,562 $ 39,184 $ 38,084 $ 41,317 $ 36,461 Cash NOI Margin % 31.5 31.0 28.7 29.0 26.7 (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. 30

SHOP MSA As of and for the quarter ended June 30, 2018, dollars in thousands, except REVPOR OPERATING PORTFOLIO METRICS Units(1) REVPOR SHOP(1) % of SHOP Occupancy MSA Investment Cash NOI Cash NOI AL IL % AL IL Houston, TX $ 353,522 $ 6,869 18.8 311 1,962 92.1 $ 6,204 $ 3,086 Miami, FL 219,080 2,968 8.1 702 674 83.9 4,484 3,416 Chicago, IL 180,216 2,914 8.0 — 946 89.7 — 3,339 Denver, CO 173,806 2,594 7.1 154 437 93.2 4,261 4,030 Washington, DC 145,301 2,077 5.7 468 — 85.6 5,985 — Tampa, FL 107,432 2,067 5.7 182 424 86.9 3,984 3,928 Baltimore, MD 108,913 1,287 3.5 321 — 80.3 5,808 — Dallas, TX 71,315 1,264 3.5 286 216 86.1 4,101 — Richmond, VA 63,154 1,027 2.8 204 — 74.2 5,544 — Sarasota, FL 88,165 999 2.7 259 164 76.0 4,018 4,793 Memphis, TN 72,397 967 2.7 — 182 91.4 — 5,711 Phoenix, AZ 42,177 965 2.6 — 211 89.5 — 4,053 Providence, RI 116,070 960 2.6 478 305 80.0 4,398 4,943 Austin, TX 38,304 745 2.0 136 — 96.2 5,200 — Los Angeles, CA 16,520 691 1.9 135 — N/A — — Boston, MA 57,696 635 1.7 182 — 81.5 7,703 — Fresno, CA 39,354 624 1.7 — 172 88.9 — 3,714 Boulder, CO 41,138 619 1.7 — 96 97.2 — 4,289 Albuquerque, NM 27,512 597 1.6 261 — 82.2 3,776 — Charlotte, NC 44,928 461 1.3 135 — N/A — — Remaining 493,374 5,131 14.1 2,635 888 78.7 3,695 3,857 Total $ 2,500,375 $ 36,461 100.0 6,850 6,677 84.6 $ 4,392 $ 3,677 (1) Units and REVPOR SHOP are based on the majority type within each community. AL includes needs-based care such as memory care. 31

SHOP Same Property Portfolio Dollars in thousands, except REVPOR 2Q17 3Q17 4Q17 1Q18 2Q18 Property count 55 55 55 55 55 Investment $ 1,558,933 $ 1,560,087 $ 1,567,718 $ 1,571,885 $ 1,579,990 Units 7,537 7,538 7,536 7,532 7,532 Occupancy % 87.1 87.1 87.9 87.4 85.9 REVPOR SHOP $ 4,165 $ 4,162 $ 4,160 $ 4,265 $ 4,272 Rental and Operating Revenues $ 81,948 $ 81,803 $ 82,570 $ 84,852 $ 83,045 Operating Expenses (55,484) (55,433) (77,211) (1) (57,622) (58,500) NOI $ 26,463 $ 26,369 $ 5,359 (1) $ 27,230 $ 24,545 Cash Rental and Operating Revenues $ 82,011 $ 81,987 $ 82,703 $ 84,269 $ 82,897 Cash Operating Expenses (55,492) (55,588) (56,648) (56,664) (57,534) Cash NOI $ 26,519 $ 26,399 $ 26,056 $ 27,605 $ 25,364 Cash NOI Margin % 32.3 32.2 31.5 32.8 30.6 Year-Over-Year Three-Month SPP Growth (4.4%) COMPONENTS OF 2Q18 SHOP SPP CASH NOI GROWTH Core Transition/Sales Portfolio(2) Portfolio(3) Total Property count 33 22 55 SPP Cash NOI Growth 2.9% (15.3%) (4.4%) (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 17 properties managed by Brookdale and 16 properties managed by four 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. 32

SHOP New Supply As of and for the quarter ended June 30, 2018, dollars in thousands NEW SUPPLY ANALYSIS SHOP 5-Mile Radius(1) Cash NOI 5-Year 80+ % of Properties/ Exposed Population 80+ Median SHOP Units Under to New Growth % Penetration Household Median Unemploy- MSA Units Cash NOI Cash NOI Construction(2) Supply(3) 2018-2023 Rate % Income Home Value ment% US National Average 13.2 11.8 $ 58 $ 218 4.8 Houston, TX 2,273 $ 6,869 18.8 3 / 611 $ 2,513 21.1 19.8 77 286 4.5 Miami, FL 1,376 2,968 8.1 4 / 485 825 9.4 8.6 52 209 6.6 Chicago, IL 946 2,914 8.0 1 / 68 583 10.3 13.9 89 321 4.8 Denver, CO 591 2,594 7.1 3 / 608 1,958 13.6 16.6 58 324 3.6 Washington, DC 468 2,077 5.7 2 / 158 705 13.8 8.4 107 433 3.7 Tampa, FL 606 2,067 5.7 -- / -- — 9.8 11.4 48 186 4.4 Baltimore, MD 321 1,287 3.5 -- / -- — 10.5 5.9 80 306 4.8 Dallas, TX 502 1,264 3.5 1 / 180 258 15.9 16.3 57 162 5.0 Richmond, VA 204 1,027 2.8 2 / 43 1,027 11.9 36.6 87 337 3.0 Sarasota, FL 423 999 2.7 3 / 288 373 12.8 13.2 54 247 3.8 Memphis, TN 182 967 2.7 1 / 44 967 14.2 24.3 73 243 3.6 Phoenix, AZ 211 965 2.6 1 / 128 965 9.5 13.6 55 199 5.2 Providence, RI 783 960 2.6 -- / -- — 4.6 7.2 54 253 6.2 Austin, TX 136 745 2.0 1 / 86 353 28.3 24.9 55 211 3.9 Los Angeles, CA 135 691 1.9 -- / -- — 22.0 4.9 101 749 3.4 Boston, MA 182 635 1.7 1 / 72 591 9.2 10.7 87 612 3.6 Fresno, CA 172 624 1.7 -- / -- — 6.2 12.3 61 334 5.0 Boulder, CO 96 619 1.7 -- / -- — 18.1 23.9 61 592 3.9 Albuquerque, NM 261 597 1.6 -- / -- — 6.0 6.0 42 188 5.8 Charlotte, NC 135 461 1.3 -- / -- — 27.7 16.8 70 273 5.0 Remaining 3,523 5,131 14.1 8 / 753 684 10.9 13.3 54 190 5.1 Total 13,527 $ 36,461 100.0 31 / 3,524 $ 11,802 12.7 13.6 $ 68 $ 282 4.6 % of Total Cash NOI and Interest Income 4.0% (1) Demographic data provided by ESRI for 2018. Construction and supply data provided by NIC for the quarter ended June 30, 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. 33

Life Science As of and for the quarter ended June 30, 2018, dollars and square feet in thousands INVESTMENTS(1) Property Cash Square Occupancy MSA Count Investment NOI Feet % San Francisco, CA/San Jose, CA 85 $ 3,070,349 $ 57,689 4,948 96.5 San Diego, CA 28 760,582 13,458 1,925 93.9 Boston, MA 2 236,080 1,532 397 70.2 (2) Remaining 8 153,996 3,386 512 100.0 123 $ 4,221,008 $ 76,067 7,782 94.8 SAME PROPERTY PORTFOLIO 2Q17 3Q17 4Q17 1Q18 2Q18 Property Count 108 108 108 108 108 Investment $ 3,165,777 $ 3,171,559 $ 3,180,015 $ 3,192,948 $ 3,218,052 Square Feet 6,353 6,353 6,353 6,357 6,357 Occupancy % 96.3 96.3 95.6 94.3 95.5 Rental and Operating Revenues $ 75,679 $ 76,643 $ 78,290 $ 75,584 $ 76,465 Operating Expenses (15,910) (16,671) (16,740) (15,428) (16,141) NOI $ 59,769 $ 59,972 $ 61,550 $ 60,156 $ 60,324 Cash Rental and Operating Revenues $ 76,473 $ 77,295 $ 77,255 $ 75,501 $ 77,026 Cash Operating Expenses (15,890) (16,651) (16,720) (15,409) (16,124) Cash NOI $ 60,582 $ 60,644 $ 60,535 $ 60,092 $ 60,902 Year-Over-Year Three-Month SPP Growth % 0.5% (1) Excludes ten properties that are in Development. (2) Represents the Hayden Campus which is 97% leased as of June 2018. Occupancy relating to recently leased space is projected to occur by the end of 2018. 34

Life Science As of June 30, 2018, dollars and square feet in thousands SELECTED LEASE EXPIRATION DATA (NEXT 5 YEARS)(1) San Francisco / Total San Jose San Diego Boston Remaining Leased Square Annualized Square Annualized Square Annualized Square Annualized Square Annualized Year Feet % Base Rent % Feet Base Rent Feet Base Rent Feet Base Rent Feet Base Rent 2018(2) 277 4 $ 9,389 3 217 $ 8,226 24 $ 583 — $ — 36 $ 579 2019 751 11 30,157 10 297 9,508 375 17,369 80 3,279 — — 2020 549 8 19,576 7 317 11,944 232 7,633 — — — — 2021 963 14 51,871 17 812 46,974 151 4,898 — — — — 2022 616 9 22,524 8 344 14,708 202 5,952 — — 70 1,864 Thereafter 3,882 55 166,547 56 2,454 123,720 823 22,895 199 7,989 406 11,943 7,038 100 $ 300,063 100 4,441 $ 215,079 1,807 $ 59,331 279 $ 11,268 512 $ 14,386 TENANT CONCENTRATION(1) Leased Square Feet Annualized Base Rent Remaining Lease Term % of % of Credit University, in Years Amount Total Amount Total Rating Government, Research 4% Amgen 4.2 684 10 $ 49,483 16 A Google 4.2 729 10 31,230 10 AA+ Public Biotech / Takeda 0.9 166 2 9,781 3 A- Medical Device Office and Rigel Pharmaceuticals 4.6 147 2 8,992 3 — 45% R&D 17% AstraZeneca Pharmaceuticals 8.7 156 2 8,371 3 BBB+ Myriad Genetics 6.9 310 4 7,798 3 — Pharma Shire 10.3 184 3 7,172 2 BBB- Private 18% Five Prime 9.5 115 2 6,789 2 — Biotech / Medical Device NuVasive 16.0 169 2 6,586 2 — 17% General Atomics 13.4 397 6 6,068 2 — Remaining 4.8 3,981 57 157,793 53 5.3 7,038 100 $ 300,063 100 (1) Excludes 337,000 square feet and annualized base rent of $21 million related to four properties sold to Genentech in July 2018. (2) Includes month-to-month and holdover leases. 35

Life Science Square feet in thousands LEASING ACTIVITY Annualized HCP Tenant Leased Base Rent % Change in Improvements Leasing Costs Average Lease Retention Square Feet Per Sq. Ft. Cash Rents per Sq. Ft. per Sq. Ft. Term (Months) Rate YTD Leased Square Feet as of March 31, 2018 7,269 $ 43.17 Expirations (279) 23.27 Renewals, amendments and extensions 266 27.77 23.8 $ 11.56 $ 5.53 41 64.6% New leases 132 44.89 126.80 14.61 95 Terminations (13) 38.07 Leased Square Feet as of June 30, 2018 7,375 $ 43.58 Rendering of Sierra Point Development South San Francisco, CA 3636

Medical Office As of and for the quarter ended June 30, 2018, dollars and square feet in thousands PORTFOLIO BY MARKET Square Feet On-campus(1) Off-campus(2) Total Property Occupancy MSA Count Investment Cash NOI % Multi-tenant Single-tenant Multi-tenant Single-tenant Multi-tenant Single-tenant % of Total Dallas, TX 27 $ 552,899 $ 9,819 89.3 1,860 34 326 54 2,186 88 12 Houston, TX 29 556,426 8,949 92.6 1,196 1,365 287 — 1,483 1,365 15 Seattle, WA 6 217,619 6,182 93.9 667 — — — 667 — 4 Denver, CO 16 278,533 5,318 89.8 1,022 — 35 — 1,058 — 6 Nashville, TN 14 164,588 4,994 95.9 1,288 10 — — 1,288 10 7 Louisville, KY 11 213,760 4,195 93.8 566 17 447 15 1,013 32 6 Philadelphia, PA 3 278,927 3,531 87.9 705 — 213 90 918 90 5 Salt Lake City, UT 13 146,425 3,428 96.6 434 63 154 116 587 179 4 Phoenix, AZ 13 176,716 2,963 88.9 519 — 208 — 727 — 4 San Diego, CA 5 109,629 2,173 96.6 — 176 155 — 155 176 2 Miami, FL 10 96,968 2,167 86.2 498 — — 30 498 30 3 Las Vegas, NV 7 122,416 1,714 83.3 536 — — — 536 — 3 Kansas City, MO 3 77,881 1,492 96.3 260 — — 8 260 8 1 Los Angeles, CA 5 89,019 1,387 81.1 106 — 174 — 280 — 2 San Antonio, TX 4 70,257 1,192 78.4 353 — — — 353 — 2 Ogden, UT 9 63,255 1,184 88.1 269 — 13 68 282 68 2 Sacramento, CA 2 74,494 981 94.4 — — 29 92 29 92 1 Washington, DC 3 64,266 957 80.7 55 29 99 — 154 29 1 Baltimore, MD 3 31,624 816 98.5 — 63 38 58 38 121 1 San Francisco, CA 1 41,955 775 100.0 — — — 104 — 104 1 Remaining 70 798,564 12,768 94.9 1,565 1,273 404 325 1,969 1,598 19 254 $ 4,226,220 $ 76,982 91.7 11,900 3,030 2,582 960 14,482 3,990 100 (1) Includes 6.4 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). 37

Medical Office As of and for the quarter ended June 30, 2018, square feet in thousands SQUARE FEET BY HEALTH SYSTEM Square Feet Directly Leased by Health System Health System Credit % of Annualized Health System Rank(1) Rating On-Campus Anchored(2) Adjacent(2) Off-Campus Total % of Total % Square Feet Base Rent HCA 2 Ba1 7,283 60 236 — 7,579 41.0 16.5 18.7 Memorial Hermann Health System 40 A1 1,570 80 — — 1,650 8.9 9.2 4.8 Community Health Systems, Inc. 8 Caa2 1,284 51 — — 1,334 7.2 7.1 4.5 Norton Healthcare 105 — 583 15 328 — 927 5.0 3.1 3.1 Jefferson Health 60 A2 705 — — — 705 3.8 2.2 2.4 Providence Health & Services 4 Aa3 563 — — — 563 3.1 1.5 2.4 Steward Health Care N/A — 547 — — — 547 3.0 1.8 1.7 HonorHealth 134 A2 421 — — — 421 2.3 0.9 1.1 Remaining - credit rated 1,637 754 580 — 2,971 16.1 Non-credit rated 336 226 56 1,156 1,774 9.6 Total 14,930 1,185 1,200 1,156 18,472 100.0 42.3 38.7 % of Total 80.8 6.4 6.5 6.3 Total Healthcare Affiliated 93.7% LEASING ACTIVITY Annualized HCP Tenant Average Leased Base Rent % Change in Improvements Leasing Costs Lease Term Retention Square Feet Per Sq. Ft. Cash Rents(3) per Sq. Ft. per Sq. Ft. (Months) Rate YTD Leased Square Feet as of March 31, 2018 16,989 $ 23.21 Expirations (696) 23.26 Renewals, amendments and extensions 509 22.68 — $ 8.25 $ 3.10 55 75.6% New leases 150 24.86 27.81 6.68 71 Terminations (8) 23.95 Leased Square Feet as of June 30, 2018 16,944 $ 23.35 (1) Ranked by revenue based on the 2017 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. 38

Medical Office As of and for the quarter ended June 30, 2018, dollars and square feet in thousands SELECTED LEASE EXPIRATION DATA (NEXT 5 YEARS) Total On-Campus Off-Campus Leased Annualized Annualized Annualized Year Square Feet % Base Rent % Square Feet Base Rent Square Feet Base Rent 2018(1) 1,877 11 $ 46,845 12 1,555 $ 39,367 322 $ 7,478 2019 2,261 13 55,068 14 1,752 42,725 510 12,342 2020 2,295 14 59,400 15 1,997 52,603 298 6,797 2021 1,734 10 43,835 11 1,436 36,503 298 7,331 2022 1,726 10 43,180 11 1,312 32,621 414 10,559 Thereafter 7,049 42 147,247 37 5,668 115,077 1,381 32,169 16,944 100 $ 395,574 100 13,720 $ 318,897 3,224 $ 76,677 SAME PROPERTY PORTFOLIO 2Q17 3Q17 4Q17 1Q18 2Q18 Property Count 226 226 226 226 226 Investment $ 3,435,040 $ 3,445,622 $ 3,466,529 $ 3,490,448 $ 3,510,275 Square feet 16,362 16,362 16,361 16,367 16,367 Occupancy % 92.5 92.3 92.0 92.2 91.9 Rental and Operating Revenues $ 105,068 $ 105,860 $ 105,385 $ 105,286 $ 106,525 Operating Expenses (38,883) (39,252) (37,949) (38,109) (38,747) NOI $ 66,185 $ 66,608 $ 67,436 $ 67,177 $ 67,778 Cash Rental and Operating Revenues $ 104,123 $ 105,118 $ 104,617 $ 104,318 $ 105,624 Cash Operating Expenses (38,300) (38,674) (37,365) (37,537) (38,175) Cash NOI $ 65,823 $ 66,444 $ 67,252 $ 66,781 $ 67,449 Year-Over-Year Three-Month SPP Growth % 2.5% (1) Includes month-to-month and holdover leases. 39

Other Wholly-owned As of and for the quarter ended June 30, 2018, dollars in thousands LEASED PROPERTIES Facility Facility Property Occupancy EBITDARM EBITDAR Type/Operator Count Investment Cash NOI Beds %(1) CFC(1) CFC(1) Hospitals Acute care 4 $ 342,202 $ 13,826 1,442 48.5 9.32x 8.76x Remaining 10 189,876 5,724 696 53.0 3.77x 3.49x 14 $ 532,079 $ 19,550 2,138 51.2 7.50x 7.03x Post-acute/skilled Wholly-Owned 1 $ 17,909 $ 314 120 88.8 1.86x 1.49x United Kingdom(2) — $ — $ 10,275 Total Leased Properties 15 $ 549,987 $ 30,139 DEBT INVESTMENTS Weighted Average Interest Maturity in Investment Income Yield Years Maria Mallaband - U.K.(3) $ 14,345 $ 355 9.8% 2.7 Remaining 43,287 1,092 8.6% 3.8 Total Debt Investments $ 57,632 $ 1,447 (1) Certain operators in our hospital portfolio are not required under their respective leases to provide operational data. (2) In June 2018, we closed on the previously announced U.K. JV through which we sold a 51% interest in our U.K. assets. We retained a 49% noncontrolling interest in the JV and received total proceeds of $402.4 million. The Cash NOI represents activity for the 90 days of the quarter the U.K. assets were wholly-owned. (3) Represents a development loan that was excluded from the U.K. JV. 40

Other Same Property Portfolio - Wholly-owned As of and for the quarter ended June 30, 2018, dollars in thousands OTHER 2Q17 3Q17 4Q17 1Q18 2Q18 Property count 15 15 15 15 15 Investment $ 548,818 $ 548,818 $ 548,818 $ 549,968 $ 549,987 Beds 2,254 2,254 2,254 2,254 2,258 Occupancy %(1) 52.1 50.7 48.6 47.7 51.2 Facility EBITDARM CFC(1) 6.50x 6.52x 6.83x 7.11x 7.50x Facility EBITDAR CFC(1) 6.06x 6.08x 6.38x 6.65x 7.03x Rental and Operating Revenues $ 20,768 $ 20,856 $ 21,095 $ 21,684 $ 21,876 Operating Expenses (1,047) (1,094) (1,226) (1,176) (1,273) NOI $ 19,721 $ 19,762 $ 19,869 $ 20,508 $ 20,603 Cash Rental and Operating Revenues $ 20,602 $ 20,237 $ 20,481 $ 20,994 $ 21,156 Cash Operating Expenses (1,047) (1,094) (1,226) (1,176) (1,273) Cash NOI $ 19,556 $ 19,143 $ 19,255 $ 19,817 $ 19,882 Year-Over-Year Three-Month SPP Growth 1.7% (1) Excludes certain operators in our hospital portfolio that are not required under their respective leases to provide operational data and excludes data for one post-acute/skilled property. 41

Other Unconsolidated JVs(1) As of and for the quarter ended June 30, 2018, dollars and square feet in thousands Other SHOP Medical SELECTED FINANCIAL DATA AT 100% Total CCRC JV RIDEA II JV(2) JVs U.K. JV(3) Life Science Office Remaining Joint ventures' Investment $ 2,454,847 $ 1,467,184 $ — $ 242,568 $ 525,050 $ 160,166 $ 50,303 $ 9,576 Joint ventures' mortgage debt 1,043,446 619,772 — 127,676 292,953 — — 3,045 Property count 103 15 — 10 68 4 3 3 Capacity 7,262 Units — 645 Units 3,640 Beds 278 Sq. Ft. 294 Sq. Ft. 360 Beds Occupancy % 85.8 — 94.0 89.8 96.3 77.0 79.3 Total revenues $ 164,306 $ 104,394 $ 46,612 $ 9,142 $ 242 $ 1,819 $ 1,656 $ 441 Operating expenses (129,204) (83,771) (37,733) (6,286) — (541) (857) (16) NOI $ 35,102 $ 20,623 $ 8,879 $ 2,856 $ 242 $ 1,278 $ 799 $ 425 Depreciation and amortization (34,082) (24,334) (6,777) (1,735) (76) (562) (527) (71) General and administrative expenses 716 480 376 (45) (15) (7) (59) (14) Interest expense and other (15,295) (6,906) (7,000) (1,298) (84) 76 — (83) Gain (loss) on sales of real estate, net (3,906) — (3,906) — — — — — Net income (loss) $ (17,465) $ (10,137) $ (8,428) $ (222) $ 67 $ 785 $ 213 $ 257 Depreciation and amortization 34,082 24,334 6,777 1,735 76 562 527 71 Loss (gain) on sales of real estate, net 3,906 — 3,906 — — — — — FFO $ 20,523 $ 14,197 $ 2,255 $ 1,513 $ 143 $ 1,347 $ 740 $ 328 Non-refundable Entrance Fee sales, net(4) 7,454 7,454 — — — — — — Non-cash adjustments to NOI 291 7 325 — (27) (60) 46 — Non-cash adjustments to net income 2,748 262 2,379 67 38 — — 2 FAD capital expenditures (7,352) (3,957) (2,985) (212) — — (198) — FAD $ 23,664 $ 17,963 $ 1,974 $ 1,368 $ 154 $ 1,287 $ 588 $ 330 HCP's SHARE OF UNCONSOLIDATED JVs HCP's ownership percentage 49% 40% - 45% 45% - 90% 49% 50% - 63% 20% - 67% 80% HCP's net equity investment(5) $ 431,305 $ 188,432 $ — $ 59,340 $ 104,955 $ 64,814 $ 12,428 $ 1,336 Mortgage debt(5) 321,227 104,060 — 73,620 143,547 — — — NOI 16,700 10,105 3,549 1,367 119 813 407 340 Cash NOI 19,869 13,189 3,685 1,367 105 769 414 340 Net income (loss)(5) (101) (2,429) 2,101 (357) 33 143 203 205 FFO(5) 16,061 9,063 4,824 595 70 851 397 261 FAD(5) 15,586 10,863 2,711 524 75 807 343 263 (1) Excludes land held for development and includes two senior housing developments, two life science redevelopments and a U.K. Debt Investment of $9.6 million (at 100%). (2) On June 1, 2018, we sold our remaining ownership interest in the RIDEA II JV generating proceeds of $332 million. (3) In June 2018, we closed on the previously announced U.K. JV through which we sold a 51% interest in our U.K. assets, generating proceeds of $402 million, including $146 million of third party property-level financing at our share. The selected financial data includes two days of revenue and expense items for the U.K. JV. (4) Includes $15.2 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 $7.7 million related to non-refundable Entrance Fee amortization recognized on an FFO basis over the estimated stay of the residents. See Entrance Fees in Glossary. (5) HCP's pro rata share excludes activity related to $195 million of debt funded by HCP at the CCRC JV and $242 million of debt funded by HCP at the RIDEA II JV, which was repaid in June 2018. 42

Other Unconsolidated JV Capital Represents HCP's pro rata share of unconsolidated JVs for the quarter ended June 30, 2018, dollars in thousands UNCONSOLIDATED JV CAPITAL Three Months Ended Six Months Ended June 30, 2018 June 30, 2018 FAD capital expenditures $ 3,324 $ 6,100 Revenue enhancing capital expenditures 3,358 6,180 Lease commissions - Dev/Redev/Acq 425 425 Development 5,563 9,257 Redevelopment 1,588 1,738 Capitalized interest 700 763 Total capital expenditures $ 14,958 $ 24,464 DEVELOPMENT PROJECTS IN PROCESS Actual / Estimated Occupancy Property Cost to Total at Project Project MSA Property Type Count CIP Complete Completion Units Start Initial Stabilized Otay Ranch San Diego, CA Senior housing 1 $ 18,627 $ 9,217 $ 27,844 111 2Q17 4Q18 1Q21 Waldwick New York, NY Senior housing 1 7,807 18,085 25,892 79 3Q17 1Q19 1Q21 2 $ 26,434 $ 27,302 $ 53,736 190 REDEVELOPMENT PROJECTS IN PROCESS Incremental Costs Property (1) Cost to Project Estimated Project MSA Property Type Count CIP Complete(1) Total Start Completion Biotech Gateway San Francisco, CA Life Science 2 $ 1,756 $ 24,085 $ 25,841 1Q18 1Q19 LAND HELD FOR DEVELOPMENT Estimated Gross Site Rentable Investment Project MSA Property Type Acreage Units 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 (1) Includes lease commissions incurred to date and projected lease commissions through stabilization. 43

Other CCRC JV Dollars in thousands, except REVPOR CCRC JV 2Q17 3Q17 4Q17 1Q18 2Q18 Property count 15 15 15 15 15 Units 7,245 7,249 7,250 7,257 7,262 Occupancy % 85.2 84.9 85.7 86.4 85.8 REVPOR(1) $ 5,065 $ 5,094 $ 5,153 $ 5,099 $ 5,132 HCP's SHARE OF CCRC JV Investment $ 700,776 $ 705,554 $ 709,625 $ 713,996 $ 718,920 Cash Rental and Operating Revenues excluding Cash NREFs, net $ 45,761 $ 46,074 $ 47,063 $ 46,982 $ 46,983 Cash NREFs, net(2) 7,716 8,090 9,892 6,235 7,186 Cash Operating Expenses (40,601) (40,044) (41,103) (40,916) (40,980) Cash NOI $ 12,876 $ 14,120 $ 15,852 $ 12,300 $ 13,189 Margin % including NREFs, net 24.0 25.9 27.7 23.0 24.2 Year-Over-Year Three-Month Growth 2.4% (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. 44

2018 Guidance Projected full year 2018, dollars in millions, except per share amounts Full Year 2018 (1) SPP Cash NOI guidance includes $9.0 million related to non-recurring items identified in Guidance our 4Q17 Earnings Release and Supplemental Report. Excluding these items, SPP Cash (August 2, 2018) NOI guidance would be 2.00% at the mid-point. Net Income, FFO and FFO as Adjusted per Share Guidance Diluted earnings per common share $0.79 - $0.85 (2) FAD capital expenditures exclude approximately $6 - $10 million related to lease Diluted FFO per common share $1.65 - $1.69 commissions on Development, Redevelopment and 1st generation recently acquired vacant space, reported in Capital Expenditures below. Diluted FFO as adjusted per common share $1.79 - $1.83 Annualized dividend per share $1.48 (3) HCP's Share of Unconsolidated JVs Total Cash NOI guidance range consists of the following: Year-Over-Year SPP Cash NOI Guidance(1) HCP's Share of Total Senior housing triple-net 0.50% - 1.50% Joint Venture Cash NOI Comments SHOP (4.00%) - 0.00% RIDEA II JV $10 Sold June 2018 Life science 0.25% - 1.25% CCRC JV $54 - $57 Medical office 1.75% - 2.75% U.K. JV $8 - $10 Closed June 2018 Other 0.50% - 1.50% Other JVs $12 - $13 Total Portfolio 0.25% - 1.75% Total $84 - $90 Other Supplemental Information - Cash Addition (Reduction) Amortization of deferred compensation $17 - $19 (4) Base case assumes that proceeds from dispositions are used to repay approximately $1.4 billion of debt at a blended rate of approximately 4%. The remaining proceeds are Amortization of deferred financing costs $12 - $14 assumed to be reinvested into a combination of capital expenditures and investments. Straight-line rents ($18) - ($22) Major dispositions consist of the following: FAD capital expenditures(2) ($104) - ($110) 2018 Cash CCRC Entrance Fees, net $16 - $19 Transaction Timing Proceeds Yield Deferred income taxes ($10) - ($14) Tandem and other 1H18 $197 2.9% Other FAD adjustments - primarily JV FAD capital ($11) - ($15) Brookdale sales - 4 SHOP / 2 NNN Jan/Apr 2018 $275 7.4%(A) RIDEA II JV June 2018 $332 6.8% Capital Expenditures (excluding FAD Capital Expenditures) U.K. JV(B) June 2018 $402 6.5% 1st generation tenant improvements/ICE $82 - $88 Genentech PO July 2018 $269 8.0% Lease commissions - Dev/Redev/Acq $6 - $10 BKD 3rd Party Transactions - SHOP / NNN 2H18 $428 7.6% Casualty related capital $23 - $27 Other 2H18 $150 - $250 Various Revenue enhancing $45 - $50 Development and Redevelopment $330 - $370 (A) 6.5% cap rate based on trailing twelve month EBITDAR at time of announcement. (B) In June, we sold a 51% interest in our U.K. assets, generating net proceeds of $402 million, HCP's Share of Unconsolidated JVs Dev/Redev $45 - $55 including $146 million of third party property–level financing at our share. 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 $265 - $275 HCP's Share of Unconsolidated JVs Cash NOI(3) $84 - $90 HCP's Share of Unconsolidated JVs FFO $60 - $66 Net dispositions(4) $1.8B - $2.2B @ 6.5% 45

Glossary Adjusted Fixed Charge Coverage* Consolidated Gross Assets* Adjusted EBITDA divided by Fixed Charges. Adjusted Fixed Charge Coverage is a supplemental The carrying amount of total assets, excluding investments in and advances to our measure of liquidity and our ability to meet interest payments on our outstanding debt and pay unconsolidated JVs, after adding back accumulated depreciation and amortization, as reported dividends to our preferred stockholders, if applicable. Our various debt agreements contain in our consolidated financial statements. Consolidated Gross Assets is a supplemental measure covenants that require us to maintain ratios similar to Adjusted Fixed Charge Coverage, and credit of our financial position, which, when used in conjunction with debt-related measures, enables rating agencies utilize similar ratios in evaluating and determining the credit rating on certain of both management and investors to analyze our leverage and to compare our leverage to that of our debt instruments. Adjusted Fixed Charge Coverage is subject to the same limitations and other companies. qualifications as Adjusted EBITDA and Fixed Charges. Consolidated Secured Debt Annualized Base Rent Mortgage and other debt secured by real estate, as reported in our consolidated financial The most recent month’s (or subsequent month’s if acquired in the most recent month) base rent statements. 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 Continuing Care Retirement Community (“CCRC”) sale during the quarter. Further, Annualized Base Rent does not include tenant recoveries, additional A senior housing facility which provides at least three levels of care (i.e., independent living, assisted rents in excess of floors and non-cash revenue adjustments (i.e., straight-line rents, amortization living and skilled nursing). 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. Debt Investments Loans secured by a direct interest in real estate and mezzanine loans. Cash Flow Coverage (“CFC”)* Facility EBITDAR or Facility EBITDARM divided by the aggregate of base rent and any additional Development rent due to us for the trailing 12-month period one quarter in arrears from the period presented. Includes ground-up construction. Newly completed developments, are considered Stabilized at CFC is a supplemental measure of a property’s ability to generate cash flows for the operator/ the earlier of lease-up (typically when the tenant(s) controls the physical use of 80% of the space) tenant (not HCP) to meet the operator’s/tenant’s related rent and other obligations to us. However, or 24 months from the date the property is placed in service. 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 Direct Financing Lease (“DFL”) facilities under lease-up, facilities acquired or transitioned to new operators during the relevant Lease for which future minimum lease payments are recorded as a receivable and the difference trailing 12-month period, vacant facilities and facilities for which data is not available or meaningful. 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 Cash Operating Expenses* income over the lease terms to provide a constant yield. 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 EBITDA and Adjusted EBITDA* impact of deferred community fee expense. 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, Cash Rental and Operating Revenues* transaction-related items, prepayment costs (benefits) associated with early retirement or payment Cash Rental and Operating Revenues represents rental and related revenues, tenant recoveries, of debt, severance and related charges, litigation costs (recoveries), losses (gains) upon resident fees and services and income from DFLs after eliminating the effects of straight-line rents, consolidation and deconsolidation, casualty-related charges (recoveries) and foreign currency DFL non-cash interest, amortization of market lease intangibles, lease termination fees and the remeasurement losses (gains). EBITDA and Adjusted EBITDA include our pro rata share of our impact of deferred community fee income. unconsolidated JVs presented on the same basis. Completion Date - Development/Redevelopment Enterprise Debt* For Developments, management’s estimate of the period the core and shell structure improvements Consolidated Debt plus our pro rata share of total debt from our unconsolidated JVs. Enterprise are expected to be or have been completed. For Redevelopments, management’s estimate of the Debt is a supplemental measure of our financial position, which enables both management and period in which major construction activity in relation to the scope of the project has been or will investors to analyze our leverage and to compare our leverage to that of other companies. Our pro be substantially completed and excludes the completion of tenant improvements. 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 Consolidated Debt the JVs. The carrying amount of bank line of credit and term loans, senior unsecured notes, mortgage debt and other debt, as reported in our consolidated financial statements. 46

Glossary Enterprise Gross Assets* Fixed Charges* Consolidated Gross Assets plus our pro rata share of total gross assets from our unconsolidated Total interest expense plus capitalized interest plus preferred stock dividends (if applicable). Fixed JVs, after adding back accumulated depreciation and amortization. Enterprise Gross Assets is a Charges also includes our pro rata share of the interest expense plus capitalized interest plus supplemental measure of our financial position, which, when used in conjunction with debt-related preferred stock dividends (if applicable) held from our unconsolidated JVs. Fixed Charges is a measures, enables both management and investors to analyze our leverage and to compare our supplemental measure of our interest payments on outstanding debt and dividends to preferred leverage to that of other companies. 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 Enterprise Secured Debt* not include all contractual obligations. 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 Funds Available for Distribution (“FAD”)* management and investors to analyze our leverage and to compare our leverage to that of other See the “Funds Available for Distribution” definition included in the accompanying Discussion and companies. Our pro rata share of Enterprise Secured Debt from our unconsolidated JVs is not Reconciliations of Non-GAAP Financial Measures for information regarding FAD. 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. Funds From Operations (“FFO”) and FFO as Adjusted* See the “Funds From Operations” definition included in the accompanying Discussion and Entrance Fees Reconciliations of Non-GAAP Financial Measures for information regarding FFO and FFO as Certain of our communities have residency agreements which require the resident to pay an upfront adjusted. 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 HCP’s Share of Unconsolidated JVs over the estimated stay of the resident based on an actuarial valuation. For Cash NOI and FAD, HCP’s pro rata share information is prepared on a basis consistent with the comparable the non-refundable entrance fees are recognized upon receipt, net of a reserve for statutory refunds consolidated amounts by applying our actual ownership percentage for the period, and is intended due to early terminations. The refundable portion of a resident’s entrance fee is generally refundable to reflect our proportionate economic interest in the financial position and operating results of within a certain number of months or days following contract termination or upon the sale of the properties in our portfolio. unit. All refundable amounts due to residents at any time in the future are classified as liabilities. Healthcare Affiliated Facility EBITDAR and Facility EBITDARM* Represents properties that are on-campus or adjacent to a healthcare system and properties that Earnings before interest, taxes, depreciation, amortization and rent (and management fees), as are leased 50% or more to a healthcare system. 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 Initial Capital Expenditures (“ICE”) or Facility EBITDARM in determining CFC and as a supplemental measure of the ability of the Expenditures required to bring a newly acquired property up to standard. The expenditures are property to generate sufficient liquidity to meet related obligations to us. Facility EBITDAR includes: typically identified during underwriting and incurred within the first year of ownership. (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 Investment and Portfolio Investment* revenues for hospitals. All facility financial performance data was derived solely from information Represents: (i) the carrying amount of real estate assets and intangibles, after adding back provided by operators/tenants without independent verification by us. Facility EBITDAR and Facility accumulated depreciation and amortization; and (ii) the carrying amount of DFLs and Debt EBITDARM are subject to the same limitations and qualifications as EBITDA. In addition, Facility Investments. Portfolio Investment also includes our pro rata share of the real estate assets and EBITDAR and Facility EBITDARM do not represent a borrower’s net income or cash flow from intangibles held in our unconsolidated JVs, presented on the same basis as Investment, less the operations and should not be considered alternatives to those indicators. Facility EBITDAR and value attributable to refundable Entrance Fee liabilities. Investment and Portfolio Investment Facility EBITDARM are not presented for: (i) properties operated under a RIDEA structure; or (ii) exclude land held for development. 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 Metropolitan Statistical Areas (“MSA”) or meaningful. 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 Financial Leverage* statistics. A metro area contains a core urban area of 50,000 or more population, consists of one Enterprise Debt divided by Enterprise Gross Assets. Financial Leverage is a supplemental measure or more counties and includes the counties containing the core urban area, as well as any adjacent of our financial position, which enables both management and investors to analyze our leverage counties that have a high degree of social and economic integration (as measured by commuting and to compare our leverage to that of other companies. to work) with the urban core. 47

Glossary Net Debt* Redevelopment Enterprise Debt less the carrying amount of cash and cash equivalents as reporting in our Properties that incur major capital expenditures to significantly improve, change the use, or consolidated financial statements and our pro rata share of cash and cash equivalents from our reposition the property pursuant to a formal redevelopment plan. Newly completed unconsolidated JVs. Net Debt is a supplemental measure of our financial position, which enables redevelopments, are considered Stabilized at the earlier of lease-up (typically when the tenant(s) both management and investors to analyze our leverage and to compare our leverage to that of controls the physical use of 80% of the space) or 24 months from the date the property is placed other companies. in service. Net Debt to Adjusted EBITDA* Rental and Operating Revenues* Net Debt divided by Adjusted EBITDA is a supplemental measure of our ability to decrease our Includes rental related revenues, tenant recoveries, resident fees and services and income from debt. Because we may not be able to use our cash to reduce our debt on a dollar-for-dollar basis, DFLs. this measure may have material limitations. Retention Rate Net Operating Income from Continuing Operations (“NOI”) and Cash The ratio of total renewed square feet to the total square feet expiring and available for lease, NOI* excluding the square feet for tenant leases terminated for default or buy-out prior to the expiration NOI is defined as rental and related revenues, including tenant recoveries, resident fees and of the lease. services, and income from DFLs, less property level operating expenses (which exclude transition REVPOR SHOP* 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, The 3-month average Rental and Operating Revenues per occupied unit for the most recent period amortization of market lease intangibles, termination fees, and the impact of deferred community available. REVPOR SHOP excludes newly completed assets under lease-up, assets sold, acquired fee income and expense. 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 Occupancy operations. For life science facilities and medical office buildings, Occupancy represents the percentage of REVPOR Triple-net 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- The 3-month average facility revenue per occupied unit, one quarter in arrears from the period acute/skilled facilities and hospitals, Occupancy represents the facilities’ average operating presented. Facility revenue consists primarily of resident rents generated at triple-net communities, Occupancy for the trailing three-month period ended one quarter in arrears from the date reported. which are not included in our financial results. Facility revenues are derived solely from information For SHOP properties, Occupancy represents the facilities’ average operating Occupancy for the provided by operators/tenants without independent verification by us. REVPOR Triple-net excludes most recent calendar quarter (year-to-date for year-to-date SPP) available weighted to reflect HCP’s vacant facilities, newly completed assets under lease-up, assets sold, acquired or transitioned to share. The percentages are calculated based on units for senior housing facilities and available a new operating structure (such as triple-net to SHOP) during the relevant period. beds for post-acute/skilled facilities and hospitals. The percentages shown exclude newly RIDEA 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 A structure whereby a taxable REIT subsidiary is permitted to rent a healthcare facility from its facility financial performance data was derived solely from information provided by operators/ parent REIT and hire an independent contractor to operate the facility. tenants and borrowers without independent verification by us. Same Property Portfolio (“SPP”)* Penetration Rate SPP NOI and Adjusted (Cash) NOI information allows us to evaluate the performance of our property Reflects the number of available senior housing units as a percentage of total population age 80 portfolio under a consistent population by eliminating changes in the composition of our and older. This measurement is an indicator of market demand for new development and expansion consolidated portfolio of properties. SPP NOI excludes certain non-property specific operating projects. 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 Pooled Leases acquired operating assets are generally considered stabilized at the earlier of lease-up (typically Two or more leases to the same operator/tenant or their subsidiaries under which their obligations when the tenant(s) control(s) the physical use of at least 80% of the space) or 12 months from the are combined by virtue of cross default protection, a pooling agreement or multiple pooling acquisition date. Newly completed developments and redevelopments are considered stabilized agreements, or cross-guaranties. 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 Portfolio Income* RIDEA reporting structure, are considered stabilized after 12 months in operations under a Cash NOI plus interest income plus our pro rata share of Cash NOI from our unconsolidated JVs. 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). 48

Glossary 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. 49

Adjusted EBITDA and Adjusted Debt Ratios Fixed Charge Coverage Dollars in thousands NET INCOME TO ADJUSTED EBITDA Three Months Ended June 30, 2018 Net income $ 92,928 Interest expense 73,038 Income tax expense (benefit) (4,654) Depreciation and amortization 143,292 Other depreciation and amortization 1,268 HCP’s share of unconsolidated JV: Interest expense 1,946 Income tax expense (benefit) 20 Depreciation and amortization 16,162 Other JV adjustments (882) EBITDA $ 323,118 Loss (gain) on sales of real estate, net (46,064) Taxes associated with real estate dispositions 1,147 Impairments (recoveries) of depreciable real estate, net 6,273 Transaction-related items 1,993 Other impairments (recoveries), net 7,639 Litigation costs 179 Foreign currency remeasurement losses (gains) (195) Adjusted EBITDA $ 294,090 ADJUSTED FIXED CHARGE COVERAGE Interest expense 73,038 Capitalized interest 4,455 HCP’s share of unconsolidated JV interest expense and capitalized interest 2,057 Fixed Charges $ 79,550 Adjusted Fixed Charge Coverage 3.7x 50

Debt Ratios As of and for the quarter ended June 30, 2018, dollars in thousands ENTERPRISE DEBT AND NET DEBT June 30, 2018 Bank line of credit(1) $ 545,226 Term loans(2) 222,923 Senior unsecured notes(3) 6,401,502 Mortgage debt(4) 142,560 Other debt 93,070 Consolidated Debt $ 7,405,281 HCP's share of unconsolidated JV mortgage debt 321,227 HCP's share of unconsolidated JV other debt 175,835 Enterprise Debt $ 7,902,343 Cash and cash equivalents (91,381) HCP's share of unconsolidated JV cash and cash equivalents (33,490) Net Debt $ 7,777,472 FINANCIAL LEVERAGE June 30, 2018 Enterprise Debt $ 7,902,343 Enterprise Gross Assets 17,568,547 Financial Leverage 45.0% SECURED DEBT RATIO June 30, 2018 (4) Mortgage debt $ 142,560 (1) Includes £85 million translated into USD. HCP's share of unconsolidated JV mortgage debt 321,227 (2) Represents £169 million translated into USD. Enterprise Secured Debt $ 463,787 (3) On July 16, 2018, we repaid $700 million of our 5.375% senior unsecured notes due 2021. Enterprise Gross Assets 17,568,547 (4) Includes mortgage debt of $2.2 million on assets held for Secured Debt Ratio 2.6% sale. (5) Represents the current quarter Adjusted EBITDA multiplied NET DEBT TO ADJUSTED EBITDA by a factor of four. (6) Including the $402.4 million of proceeds receivable from the Three Months Ended U.K. JV transaction (which was received on July 2, 2018), June 30, 2018 Net Debt to Adjusted EBITDA would have been 6.3x at June 30, 2018. Net Debt $ 7,777,472 Adjusted EBITDA(5) 1,176,360 Net Debt to Adjusted EBITDA 6.6x (6) 51

COMPANY Information BOARD OF DIRECTORS BRIAN G. CARTWRIGHT LYDIA H. KENNARD Chairman of the Board, HCP, Inc. President and Chief Executive Officer, Former General Counsel KDG Construction Consulting U.S. Securities and Exchange Commission PETER L. RHEIN THOMAS M. HERZOG Partner, President and Chief Executive Officer, HCP, Inc. Sarlot & Rhein CHRISTINE N. GARVEY KATHERINE M. SANDSTROM Former Global Head of Corporate Advisor, Real Estate Services, Deutsche Bank AG Heitman, LLC R. KENT GRIFFIN, JR. JOSEPH P. SULLIVAN Former President and Chief Operating Officer, Chairman Emeritus, Board of Advisors, BioMed Realty Trust, Inc. RAND Health; Former Chief Executive Officer, American Health Properties, Inc. DAVID B. HENRY Former Vice Chairman and Chief Executive Officer, Kimco Realty Corporation EXECUTIVE MANAGEMENT THOMAS M. HERZOG KENDALL K. YOUNG President and Chief Executive Officer Executive Vice President Senior Managing Director SCOTT M. BRINKER Senior Housing Properties Executive Vice President Chief Investment Officer SHAWN G. JOHNSTON Senior Vice President THOMAS M. KLARITCH Chief Accounting Officer Executive Vice President Chief Operating Officer GLENN T. PRESTON Senior Vice President TROY E. MCHENRY Senior Managing Director Executive Vice President Medical Office Properties General Counsel and Corporate Secretary PETER A. SCOTT Executive Vice President Chief Financial Officer 52

Sunrise Beverly Hills Beverly Hills, CA 53

Hoag Hospital Forward-Looking Statements Irvine, CA & 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 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; the Company’s concentration in the healthcare property sector, particularly in senior housing, life sciences and medical office buildings, which makes its profitability more vulnerable to a downturn in a specific sector than if the Company were investing in multiple industries; the Company’s 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 the Company’s investments in joint ventures 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 or other investments within expected time frames or at all, or within expected cost projections; the potential impact on the Company and its tenants, operators and borrowers from current and future litigation matters, including the possibility of larger than expected litigation costs, adverse results and related developments; 54 Continued

The Cove Forward-Looking Statements South San Francisco, CA & Risk Factors (continued) operational risks associated with third party management contracts, including the additional regulation and liabilities of RIDEA lease structures; the effect on the Company and its 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 the Company’s costs of compliance or increase the costs, or otherwise affect the operations, of its tenants and operators; the Company’s ability to foreclose on collateral securing its real estate-related loans; 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 potential impact of uninsured or underinsured losses; the Company’s reliance on information technology systems and the potential impact of system failures, disruptions or breaches; 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. 55

CORPORATE HEADQUARTERS SAN FRANCISCO OFFICE NASHVILLE OFFICE 1920 MAIN STREET, SUITE 1200 950 TOWER LANE, SUITE 1650 3000 MERIDIAN BOULEVARD, SUITE 200 IRVINE, CA 92614 FOSTER CITY, CA 94404 FRANKLIN, TN 37067 (949) 407-0700 56