EX-99.2 3 hcpsupplementalreport930.htm EXHIBIT 99.2
Earnings Release and Supplemental Report third quarter 2018 Patewood Medical Office Building C Greenville, SC 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 21 Capital Expenditures 23 Portfolio Diversification 24 Expirations and Maturities 26 Triple-net Master Lease Profile 27 Portfolio Senior Housing Triple-net 28 Senior Housing Operating Portfolio 31 Life Science 35 Medical Office 38 Other 41 Guidance 46 Glossary and Debt Ratios 47 TABLE OF Company Information 53 Contents Forward-Looking Statements & Risk Factors 54 Discussion and Reconciliation of Non-GAAP Financial Measures 2

HCP Reports Third Quarter 2018 Results IRVINE, CA, October 31, 2018 -- HCP, Inc. (NYSE: HCP) today announced results for the third quarter ended September 30, 2018. For the quarter, we generated net income of $0.21 per share, FFO of $0.33 per share and FFO as adjusted of $0.44 per share. QUARTERLY AND RECENT HIGHLIGHTS – Under contract to sell our Shoreline Technology Center campus in Mountain View, California for gross proceeds of $1.0 billion – Signed 460,000 square feet of leases at our South San Francisco developments; both Phase I of The Shore at Sierra Point and Phase IV of The Cove are now 100% pre-leased – Created a program with HCA Healthcare to develop primarily on-campus MOBs; commenced first project, a $26 million on-campus MOB in Myrtle Beach, South Carolina – Closed on the previously announced $605 million joint venture with Morgan Stanley Real Estate Investing in a two million square foot medical office portfolio – Completed the sale of 17 senior housing communities to an investment fund managed by affiliates of Apollo Global Management for $264 million and expect the remaining two assets in the portfolio to close by year-end for approximately $113 million – Completed 35 senior housing operator transitions from Brookdale Senior Living, Inc. ("Brookdale") with four additional transitions expected to be completed by year-end – Completed the early redemption of all $700 million of our 5.375% senior notes due 2021 using proceeds from capital recycling – Named to the Dow Jones Sustainability Index and received the Green Star designation from GRESB, our sixth and seventh year, respectively, receiving these prestigious awards – Achieved total portfolio year-over-year SPP Cash NOI growth of 1.7% in the third quarter – Reaffirmed 2018 FFO as adjusted and full-year 2018 SPP Cash NOI guidance ranges Three Months Ended Three Months Ended September 30, 2018 September 30, 2017 Diluted Diluted (in thousands, except per share amounts) Amount Per Share Amount Per Share Net income (loss) $ 98,946 $ 0.21 $ (7,788) $ (0.02) FFO $ 155,632 $ 0.33 $ 155,248 $ 0.33 Transaction-related items 4,678 0.01 580 — Other impairments (recoveries), net(1) — — 2,738 0.01 Severance and related charges(2) 4,573 0.01 3,889 0.01 Loss on debt extinguishments(3) 43,899 0.09 54,227 0.11 Litigation costs (recoveries) (545) — 2,303 — Casualty-related charges (recoveries), net — — 8,925 0.02 Foreign currency remeasurement losses (gains) (41) — (141) — FFO as adjusted $ 208,196 $ 0.44 $ 227,769 $ 0.48 FAD $ 186,545 $ 202,407 (1) For the three months ended September 30, 2017, represents the impairment of our Tandem Mezzanine Loan, which was sold in the first quarter of 2018. (2) For the three months ended September 30, 2018, relates to corporate restructuring activities. For the three months ended September 30, 2017, primarily relates to the departure of our former Chief Accounting Officer. (3) Represents the premium associated with the prepayment of senior unsecured notes. 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 “September 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 third quarter: Year-Over-Year Three-Month SPP Cash NOI Growth Components of SHOP SPP Cash NOI Growth Senior housing triple-net 1.6% Core Transition/Sale Portfolio(1) Portfolio(2) Total SHOP (6.3%) Property count 32 18 50 Life science 2.6% Current Quarter Cash NOI $15,482 $6,330 $21,812 Medical office 2.3% SPP Cash NOI Growth 4.1% (24.8%) (6.3%) Other non-reportable segments ("Other") 6.5% SPP Cash NOI Margin 33.1% 25.4% 30.4% Total Portfolio 1.7% (1) Includes 16 properties managed by Brookdale and 16 properties managed by four operators that are not expected to undergo a transition or sale during 2018. (2) Represents properties previously managed by Brookdale that have transitioned or are expected to transition to new operators or sell in 2018. SHORELINE TECHNOLOGY CENTER DISPOSITION In October, we entered into a definitive agreement to sell our approximately 800,000 square foot Shoreline Technology Center campus located in Mountain View, California for $1.0 billion. The disposition is expected to generate a gain on sale of approximately $700 million upon closing in the fourth quarter 2018. "This transaction highlights our ability to unlock meaningful shareholder value and generate attractively-priced capital which we will use to delever and further strengthen our balance sheet as well as fund future accretive growth," said Peter Scott, Executive Vice President and Chief Financial Officer of HCP. We intend to use the proceeds from the disposition to initially repay approximately $1 billion of debt at an average interest rate of approximately 3.5%. Over time, we will opportunistically redeploy a portion of this capital into future acquisitions and to fund our development and redevelopment activity while maintaining a target net debt to adjusted EBITDA ratio in the high five times range. TRANSACTION UPDATES HCP AND MORGAN STANLEY REAL ESTATE INVESTING MEDICAL OFFICE JOINT VENTURE HCP and Morgan Stanley Real Estate Investing ("MSREI") closed on the previously announced $605 million 51%/49% joint venture (the “Venture”) in a two million square foot medical office portfolio. To form the Venture, MSREI contributed cash to fund the acquisition of a medical office portfolio in Greenville, South Carolina and HCP contributed nine wholly-owned medical office buildings primarily located in Texas and Florida. 19-COMMUNITY PORTFOLIO SALE In October, we closed on the first tranche of the previously announced 19-asset portfolio sale of Brookdale-managed senior housing communities to an investment fund managed by affiliates of Apollo Global Management for $264 million. We expect to close on the sale of the remaining two assets in the portfolio to the same buyer for $113 million during the fourth quarter. ADDITIONAL SIGNIFICANT DISPOSITION TRANSACTIONS As previously disclosed, 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. In August, we sold an £11 million U.K. development loan at par. In addition to the 19-community portfolio sale referenced above, during the third quarter we sold 11 senior housing communities, 10 of which were managed by Brookdale, to third parties for a total of $76 million. 4

OPERATOR TRANSITION UPDATE We have completed the vast majority of our planned operator transitions with 35 HCP-owned senior housing communities transitioning from Brookdale to other operators, including Atria Senior Living, Sunrise Senior Living, Elmcroft by Eclipse Senior Living, Discovery Senior Living and Sonata Senior Living. The remaining four transitions are expected to close in 2018. ON-CAMPUS MEDICAL OFFICE DEVELOPMENT PROGRAM WITH HCA In October, we created a program with HCA Healthcare ("HCA") to develop primarily on-campus medical office buildings. HCA outpatient departments are expected to anchor roughly half of the square footage of each project, with the balance of demand coming from third-party physicians and other ancillary medical services. We will continue working with HCA to find win-win development opportunities and expect to announce additional projects in 2018 and 2019. The program's first development is a 90,000 square foot medical office building on the campus of Grand Strand Medical Center ("Grand Strand") in Myrtle Beach, South Carolina with an estimated cost of $26 million. Grand Strand is operated by HCA and is the leading hospital in the market. Grand Strand will anchor the development and occupy 42,000 square feet upon completion. We expect the development to generate a 7.2% yield upon stabilization. DEVELOPMENT UPDATES PHASE IV OF THE COVE 100% PRE-LEASED; 1 MILLION SQUARE FOOT CAMPUS NOW 100% LEASED During the quarter, we signed a 164,000 square foot, full-building lease at the $107 million Phase IV development of The Cove in South San Francisco. This lease, combined with the previously disclosed leases at Phase III of the development, brings the combined $344 million, 488,000 square feet of in-process development to 100% pre-leased. Upon Phase IV's completion in early 2020, The Cove will be a one million square foot, LEED silver, fully-integrated, waterfront campus located at the entrance to South San Francisco's life science cluster. PHASE I OF THE SHORE AT SIERRA POINT 100% PRE-LEASED During September and October, we signed leases totaling 222,000 square feet at The Shore at Sierra Point, a 23-acre waterfront life science development offering state-of-the-art laboratory and office space along with premier amenities. The $224 million first phase of the development is now 100% pre-leased. With the leasing success to-date, and the continued strength of the South San Francisco life science market, we will look to accelerate construction of the remaining two phases which encompass a combined 365,000 square feet of potential development. BALANCE SHEET As previously disclosed, on July 16, 2018, we repaid $700 million of our 5.375% senior notes due 2021 using capital recycling proceeds received during the third quarter. In connection with the repayment, we incurred an extinguishment of debt charge of approximately $44 million in the third quarter. At September 30, 2018, we had $1.4 billion of liquidity from a combination of cash and availability under our $2.0 billion credit facility. In connection with the pending Shoreline Technology Center disposition, on October 9, 2018, we provided a redemption notice to holders of our $450 million 3.75% senior notes due in 2019, which will be redeemed at par in November 2018. DIVIDEND On October 25, 2018, our Board declared a quarterly cash dividend of $0.37 per common share. The dividend will be paid on November 20, 2018 to stockholders of record as of the close of business on November 5, 2018. SUSTAINABILITY For the sixth consecutive year, HCP has been named to the Dow Jones Sustainability Index North America for demonstrating best-in-class sustainable business practices. Additionally, for the seventh consecutive year, HCP has received the Green Star designation from GRESB for excellence in sustainability implementation and measurement as well as management and policy. 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. 5

2018 GUIDANCE For full-year 2018, we expect net income per share to range between $2.23 and $2.29; 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. 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 Wednesday, October 31, 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 September 30, 2018. The conference call is accessible by dialing (888) 317-6003 (U.S.) or (412) 317-6061 (International). The conference ID number is 5581677. You may also access the conference call via webcast in the Investor Relations section of our website at http://ir.hcpi.com. Through November 15, 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 10124783. 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,” "target," “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 "Shoreline Technology Center Disposition", "Transaction Updates", "Operator Transition Update", "On-Campus Medical Office Development Program with HCA", "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 September 30, 2018, dollars, square feet and shares in thousands, except per share data Full Year 2018 Guidance 3Q18 YTD 2018 (October 31, 2018) (1) Reconciliations, definitions and important discussions Financial Metrics regarding the usefulness and limitations of the non-GAAP Diluted earnings per common share $0.21 $0.49 $2.23 - $2.29 financial measures used in this report can be found at Diluted FFO per common share $0.33 $1.25 $1.65 - $1.69 http://ir.hcpi.com/financial-reconciliation.Totals throughout this Earnings Release and Supplemental Diluted FFO as adjusted per common share $0.44 $1.39 $1.79 - $1.83 Report may not add due to rounding. Dividends per common share $0.37 $1.11 $1.48 (2) Includes our share of unconsolidated joint ventures Rental and related revenues $454,786 $1,395,721 ("JVs") and activity from assets sold and held for sale NOI $273,578 $868,097 during the periods presented. Cash NOI $272,875 $854,045 (3) Our Other non-reportable segment includes 103 (2) properties in unconsolidated JVs. See the Other Portfolio Income $297,414 $928,002 Unconsolidated JV page in this report for further details. Full Year % of Total 2018 Guidance Same Property Portfolio Cash NOI Growth YTD SPP 3Q18 YTD 2018 (October 31, 2018) Senior housing triple-net 27.1% 1.6% 0.7% 0.50% - 1.50% SHOP 9.9% (6.3%) (3.3%) (4.00%) - 0.00% Life science 25.7% 2.6% 1.2% 0.25% - 1.25% Medical office 28.7% 2.3% 2.1% 1.75% - 2.75% Other 8.6% 6.5% 2.8% 0.50% - 1.50% Total 100.0% 1.7% 1.0% 0.25% - 1.75% 3Q18 3Q18 Capitalization Debt Ratios Common stock outstanding and DownREIT units 476,533 Financial Leverage 42.4% Total Market Equity $12,542,348 Secured Debt Ratio 2.7% Enterprise Debt $7,297,905 Net Debt to Adjusted EBITDA 6.5x Adjusted Fixed Charge Coverage 3.8x Property Count Capacity Occupancy Portfolio Statistics Senior housing triple-net 163 16,473 Units 84.8% SHOP 97 12,995 Units 84.2% Life science 129 7,332 Sq. Ft. 96.3% Medical office 268 19,233 Sq. Ft. 92.1% Other(3) 118 N/A N/A Total 775 N/A N/A 8

HCP, Inc. Consolidated Balance Sheets In thousands, except share and per share data (unaudited) September 30, 2018 December 31, 2017 Assets Real estate: Buildings and improvements $ 10,956,474 $ 11,239,732 Development costs and construction in progress 442,007 447,976 Land 1,663,069 1,785,865 Accumulated depreciation and amortization (2,825,850) (2,741,695) Net real estate 10,235,700 10,731,878 Net investment in direct financing leases 714,709 714,352 Loans receivable, net 41,302 313,326 Investments in and advances to unconsolidated joint ventures 623,255 800,840 Accounts receivable, net of allowance of $4,552 and $4,425, respectively 48,701 40,733 Cash and cash equivalents 78,864 55,306 Restricted cash 29,877 26,897 Intangible assets, net 305,805 410,082 Assets held for sale, net 423,063 417,014 Other assets, net 582,682 578,033 Total assets $ 13,083,958 $ 14,088,461 Liabilities and Equity Bank line of credit $ 636,709 $ 1,017,076 Term loan 223,468 228,288 Senior unsecured notes 5,706,181 6,396,451 Mortgage debt 139,401 144,486 Other debt 92,494 94,165 Intangible liabilities, net 56,871 52,579 Liabilities of assets held for sale, net 3,146 14,031 Accounts payable and accrued liabilities 410,804 401,738 Deferred revenue 174,509 144,709 Total liabilities 7,443,583 8,493,523 Commitments and contingencies Common stock, $1.00 par value: 750,000,000 shares authorized; 469,916,246 and 469,435,678 shares issued and outstanding, respectively 469,916 469,436 Additional paid-in capital 8,189,946 8,226,113 Cumulative dividends in excess of earnings (3,584,397) (3,370,520) Accumulated other comprehensive income (loss) (4,297) (24,024) Total stockholders' equity 5,071,168 5,301,005 Joint venture partners 392,319 117,045 Non-managing member unitholders 176,888 176,888 Total noncontrolling interests 569,207 293,933 Total equity 5,640,375 5,594,938 Total liabilities and equity $ 13,083,958 $ 14,088,461 9

HCP, Inc. Consolidated Statements of Operations In thousands, except per share data (unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Revenues: Rental and related revenues $ 262,828 $ 266,109 $ 821,462 $ 816,147 Tenant recoveries 41,026 36,860 116,984 105,794 Resident fees and services 137,359 126,040 416,947 391,688 Income from direct financing leases 13,573 13,240 40,329 40,516 Interest income 1,236 11,774 9,048 50,974 Total revenues 456,022 454,023 1,404,770 1,405,119 Costs and expenses: Interest expense 63,486 71,328 211,626 235,834 Depreciation and amortization 132,198 130,588 418,740 397,893 Operating 181,207 155,338 527,625 467,582 General and administrative 23,503 23,523 75,192 67,287 Transaction costs 4,489 580 9,088 2,504 Impairments (recoveries), net 5,268 25,328 19,180 82,010 Total costs and expenses 410,151 406,685 1,261,451 1,253,110 Other income (expense): Gain (loss) on sales of real estate, net 95,332 5,182 162,211 322,852 Loss on debt extinguishments (43,899) (54,227) (43,899) (54,227) Other income (expense), net 1,604 (10,556) (37,017) 40,723 Total other income (expense), net 53,037 (59,601) 81,295 309,348 Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures 98,908 (12,263) 224,614 461,357 Income tax benefit (expense) 4,929 5,481 14,919 14,630 Equity income (loss) from unconsolidated joint ventures (911) 1,062 (442) 4,571 Net income (loss) 102,926 (5,720) 239,091 480,558 Noncontrolling interests' share in earnings (3,555) (1,937) (9,546) (7,687) Net income (loss) attributable to HCP, Inc. 99,371 (7,657) 229,545 472,871 Participating securities' share in earnings (425) (131) (1,278) (560) Net income (loss) applicable to common shares $ 98,946 $ (7,788) $ 228,267 $ 472,311 Earnings per common share: Basic $ 0.21 $ (0.02) $ 0.49 $ 1.01 Diluted $ 0.21 $ (0.02) $ 0.49 $ 1.01 Weighted average shares outstanding: Basic 469,867 468,975 469,732 468,642 Diluted 470,118 468,975 469,876 468,828 10

HCP, Inc. Funds From Operations In thousands, except per share data (unaudited) Three Months Ended Nine Months Ended (1) For the nine months ended September 30, 2018, September 30, September 30, represents the loss on consolidation of seven U.K. 2018 2017 2018 2017 care homes. (2) Represents the income tax impact of our RIDEA II Net income (loss) applicable to common shares $ 98,946 $ (7,788) $ 228,267 $ 472,311 transactions in June 2018 and January 2017. Real estate related depreciation and amortization 132,198 130,588 418,740 397,893 (3) For the nine months ended September 30, 2018, Real estate related depreciation and amortization on unconsolidated represents the impairment of an undeveloped life joint ventures 15,180 16,358 48,730 47,711 science land parcel classified as held for sale, Real estate related depreciation and amortization on noncontrolling partially offset by an impairment recovery upon the interests and other (2,971) (3,678) (7,136) (11,711) sale of our Tandem Mezzanine Loan in March 2018. Other depreciation and amortization 2,343 2,360 4,906 7,718 For the nine months ended September 30, 2017, represents the impairment of our Tandem Mezzanine Loss (gain) on sales of real estate, net (95,332) (5,182) (162,211) (322,852) Loan, net of the impairment recovery upon the sale Loss (gain) upon consolidation of real estate, net(1) — — 41,017 — of our Four Seasons Notes in the first quarter of 2017. For the three months ended September 30, 2017, Taxes associated with real estate dispositions(2) — — 1,147 (5,498) represents the impairment of our Tandem Mezzanine Impairments (recoveries) of depreciable real estate, net 5,268 22,590 11,541 22,590 Loan, which was sold in the first quarter of 2018. FFO applicable to common shares 155,632 155,248 585,001 608,162 (4) For the three months ended September 30, 2018, relates to corporate restructuring activities. For the Distributions on dilutive convertible units — — — 5,250 nine months ended September 30, 2018, primarily Diluted FFO applicable to common shares $ 155,632 $ 155,248 $ 585,001 $ 613,412 relates to the departure of our former Executive Chairman, which consisted of $6 million of cash Diluted FFO per common share $ 0.33 $ 0.33 $ 1.25 $ 1.30 severance and $3 million of equity award vestings. For the three and nine months ended September 30, Weighted average shares outstanding - diluted FFO 470,118 469,156 469,876 473,519 2017, primarily relates to the departure of our former Impact of adjustments to FFO: Chief Accounting Officer. Transaction-related items $ 4,678 $ 580 $ 8,612 $ 2,476 (5) Represents the premium associated with the prepayment of senior unsecured notes. Other impairments (recoveries), net(3) — 2,738 4,341 8,526 Severance and related charges(4) 4,573 3,889 13,311 3,889 Loss on debt extinguishments(5) 43,899 54,227 43,899 54,227 Litigation costs (recoveries) (545) 2,303 41 7,507 Casualty-related charges (recoveries), net — 8,925 — 8,925 Foreign currency remeasurement losses (gains) (41) (141) (106) (986) Total adjustments 52,564 72,521 70,098 84,564 FFO as adjusted applicable to common shares 208,196 227,769 655,099 692,726 Distributions on dilutive convertible units and other (90) 1,493 (180) 5,095 Diluted FFO as adjusted applicable to common shares $ 208,106 $ 229,262 $ 654,919 $ 697,821 Diluted FFO as adjusted per common share $ 0.44 $ 0.48 $ 1.39 $ 1.47 Weighted average shares outstanding - diluted FFO as adjusted 470,118 473,836 469,876 473,519 11

HCP, Inc. Funds Available for Distribution In thousands (unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 FFO as adjusted applicable to common shares $ 208,196 $ 227,769 $ 655,099 $ 692,726 Amortization of deferred compensation(1) 3,530 3,237 11,249 10,329 Amortization of deferred financing costs 3,070 3,439 9,760 11,141 Straight-line rents (4,409) (5,774) (20,888) (18,052) FAD capital expenditures (24,646) (26,272) (70,237) (73,825) Lease restructure payments 300 311 901 1,165 CCRC entrance fees(2) 6,524 6,074 13,203 14,436 Deferred income taxes(3) (4,880) (3,807) (12,751) (10,523) Other FAD adjustments(4) (1,140) (2,570) (7,959) (6,288) FAD applicable to common shares 186,545 202,407 578,377 621,109 Distributions on dilutive convertible units — 1,596 — 5,250 Diluted FAD applicable to common shares $ 186,545 $ 204,003 $ 578,377 $ 626,359 Weighted average shares outstanding - diluted FAD 470,118 473,836 469,876 473,519 (1) Excludes amounts in severance and related charges related to the acceleration of deferred compensation for restricted stock units that vested upon the departure of certain former employees. (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) For the three and nine months ended September 30, 2017, excludes $2 million of deferred tax benefit from casualty-related charges, which is included in casualty-related charges (recoveries), net. (4) Primarily includes our share of FAD capital expenditures from unconsolidated joint ventures, partially offset by noncontrolling interests' share of FAD capital expenditures from consolidated joint ventures. 12

Portfolio Summary As of and for the quarter ended September 30, 2018, dollars in thousands Property Average Portfolio Portfolio Private PORTFOLIO INCOME Count Age Investment Income Pay %(1) Wholly Owned Property Portfolio Unconsolidated JVs(2) Senior housing triple-net 163 20 $ 3,257,336 $ 67,181 92.7 8% SHOP 89 22 2,462,108 32,240 97.9 SHOP 11% Life science 115 21 3,976,291 72,933 100.0 Hospitals 7% Medical office 264 22 4,528,657 80,149 100.0 Other 15 29 550,211 20,373 86.4 646 22 $ 14,774,603 $ 272,875 96.9 Debt Investments Other — N/A $ 60,373 $ 1,236 — Senior housing Medical triple-net Developments $297.4M office 23% Life science 10 N/A $ 353,025 $ — — 27% Redevelopments SHOP 8 N/A $ 65,417 $ — — Life science 4 N/A 114,805 — — Medical office 4 N/A 76,450 — — 16 N/A $ 256,672 (3) $ — — Life science 24% Total Senior housing triple-net 163 20 $ 3,257,336 $ 67,181 92.7 SHOP 97 22 2,527,525 32,240 97.9 Life science 129 21 4,444,121 72,933 100.0 Medical office 268 22 4,605,107 80,149 100.0 Other 15 29 610,584 21,609 86.4 672 22 $ 15,444,673 $ 274,111 96.9 HCP's Share of Unconsolidated JVs(4) Other(5) 103 30 $ 1,244,730 $ 23,303 75.7 Total Portfolio 775 23 $ 16,689,402 $ 297,414 95.3 (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 5.2% related to 15 assets in our unconsolidated CCRC JV and 1.6% related to 68 assets contributed to our U.K. JV. (3) Includes Construction in Process ("CIP") and buildings or portions of buildings placed in Redevelopment. (4) 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. (5) Our 103 properties in unconsolidated JVs are reported in the Other non-reportable segment. See the Other Unconsolidated JV page in this report for further details. 13

NOI and Cash NOI Summary For the quarter ended September 30, 2018, dollars in thousands NOI SUMMARY Rental and Operating Operating (1) Revenues Expenses NOI Wholly-Owned Senior housing triple-net $ 67,487 $ (840) $ 66,646 SHOP 137,044 (106,182) 30,863 Life science 98,040 (23,668) 74,372 Medical office 129,618 (49,150) 80,468 Other 22,597 (1,367) 21,229 $ 454,786 $ (181,207) $ 273,578 CASH NOI SUMMARY Cash Rental and Cash Operating Operating (1) Revenues Expenses Cash NOI Wholly-Owned Senior housing triple-net $ 68,056 $ (875) $ 67,181 SHOP 137,815 (105,576) 32,240 Life science 96,587 (23,655) 72,933 Medical office 128,483 (48,334) 80,149 Other 21,740 (1,367) 20,373 $ 452,682 $ (179,806) $ 272,875 (1) NOI includes $4.1 million and Cash NOI includes $4.0 million attributable to noncontrolling interest, excluding DownREITS. 14

Same Property Portfolio As of September 30, 2018, dollars in thousands SAME PROPERTY PORTFOLIO RECONCILIATION Senior Housing Life Medical Triple-net SHOP Science Office Other Total Total Property Count 163 97 129 268 118 775 Unconsolidated JVs — — — — (103) (103) Acquisitions — (1) (3) (30) — (34) Assets in Development — — (10) — — (10) Assets in Redevelopment — (8) (4) (4) — (16) Assets held for sale (11) (14) — — — (25) Senior housing triple-net to SHOP conversions — (21) — — — (21) Completed Developments and Redevelopments - not stabilized — (2) (5) (11) — (18) Assets impacted by casualty event — (1) — — — (1) Three-Month SPP Property Count 152 50 107 223 15 547 Senior housing triple-net to SHOP conversions — (1) — — — (1) Acquisitions — — (1) — — (1) Nine-Month SPP Property Count 152 49 106 223 15 545 THREE-MONTH SPP % of Year-Over-Year Sequential Property Portfolio Occupancy Growth Occupancy Growth Property based on SPP Cash SPP Cash Count Investment Investment 3Q18 3Q17 SPP NOI NOI 3Q18 2Q18 SPP NOI NOI Senior housing triple-net 152 $ 3,091,822 95 84.7% 85.8% 3.6% 1.6% 84.7% 85.3% 0.7% 0.1% SHOP 50 1,444,778 59 86.1% 87.5% (8.0%) (6.3%) 86.1% 87.0% (4.2%) (6.0%) Life science 107 3,196,675 80 96.2% 96.3% 3.2% 2.6% 96.2% 95.4% 2.6% 2.2% Medical office 223 3,485,303 77 92.1% 92.4% 1.8% 2.3% 92.1% 92.1% (0.2%) 0.6% Other 15 550,211 100 N/A N/A 7.5% 6.5% N/A N/A 3.1% 2.5% Total 547 $ 11,768,789 80 2.1% 1.7% 0.7% 0.4% NINE-MONTH SPP Year-Over-Year % of Occupancy Growth Property Portfolio Nine Months Ended Property based on September September SPP Cash Count Investment Investment 2018 2017 SPP NOI NOI Senior housing triple-net 152 $ 3,091,822 95 85.0% 86.0% 3.4% 0.7% SHOP 49 1,423,998 58 87.1% 88.0% (5.7%) (3.3%) Life science 106 3,178,400 80 96.1% 96.2% 1.8% 1.2% Medical office 223 3,485,303 77 92.1% 92.4% 1.8% 2.1% Other 15 550,211 100 N/A N/A 4.9% 2.8% Total 545 $11,729,734 79 1.7% 1.0% 15

Capitalization Dollars and shares in thousands, except price per share data TOTAL CAPITALIZATION September 30, 2018 Shares Value Total Value Common stock (NYSE: HCP) 469,916 $ 26.32 $ 12,368,189 Convertible partnership (DownREIT) units 6,617 26.32 174,159 Total Market Equity 476,533 $ 12,542,348 Consolidated debt N/A 6,798,253 Total Market Equity and Consolidated Debt 476,533 $ 19,340,601 HCP's share of unconsolidated JV debt N/A 499,652 Total Market Equity and Enterprise Debt 476,533 $ 19,840,253 COMMON STOCK AND EQUIVALENTS Weighted Average Shares Weighted Average Shares Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Shares Outstanding Diluted FFO Diluted Diluted FFO Diluted September 30, 2018 Diluted EPS Diluted FFO as adjusted FAD Diluted EPS Diluted FFO as adjusted FAD Common stock 469,916 469,867 469,867 469,867 469,867 469,732 469,732 469,732 469,732 Common stock equivalent securities: Restricted stock units 1,699 222 222 222 222 126 126 126 126 Dilutive impact of options 29 29 29 29 29 18 18 18 18 Convertible partnership (DownREIT) units 6,617 — — — — — — — — Total common stock and equivalents 478,261 470,118 470,118 470,118 470,118 469,876 469,876 469,876 469,876 16

Indebtedness and Ratios As of September 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 Amounts Rates %(2) Amounts Rates %(2) Debt Amounts(3) Rates %(2) Amounts Rates %(2) 2018 $ — $ — $ — — $ 860 — $ 860 $ 706 — $ 1,566 — 2019 — 223,587 450,000 (4) 3.95 3,561 — 677,148 161,665 5.39 838,813 4.08 2020 — — 800,000 2.79 3,609 5.08 803,609 12,006 4.22 815,615 2.81 2021 636,709 — — — 10,957 5.26 647,666 54,442 4.72 702,108 3.47 2022 — — 900,000 3.93 2,691 — 902,691 34,987 4.66 937,678 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 6.87 91,509 4.02 391,509 38,006 4.06 429,515 5.89 Subtotal $ 636,709 $ 223,587 $ 5,750,000 $ 134,194 $ 6,744,490 $ 327,598 $ 7,072,088 Other Debt(5) — — — — 92,494 174,761 267,255 (Discounts), premium and debt costs, net — (119) (43,819) 5,207 (38,731) (2,707) (41,438) Total $ 636,709 $ 223,468 $ 5,706,181 $ 139,401 $ 6,798,253 $ 499,652 $ 7,297,905 Weighted average interest rate % 3.33 3.40 4.03 4.19 3.94 4.86 3.99 Weighted average maturity in years 3.1 0.3 5.4 19.2 5.3 3.1 5.2 (1) Includes £55 million ($72 million) translated into U.S. dollars ("USD") at September 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 based on our current unsecured credit rating; and (iii) inclusion of a $750 million accordion feature which can be used to increase the facility size, subject to securing additional commitments. (2) The rates are reported in the year in which the related debt matures. (3) Reflects pro rata share of mortgage and other debt in our unconsolidated JVs. (4) On October 9, 2018, we provided a redemption notice to holders of our $450 million senior unsecured notes due in 2019, which will be redeemed in November 2018. (5) 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 September 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 $ 181,775 3 4.19 15.7 Floating rate 280,017 4 4.98 2.8 Combined $ 461,792 7 4.67 7.9 Unsecured Fixed rate 5,750,000 81 4.03 5.4 Floating rate 860,296 12 3.35 2.3 Combined $ 6,610,296 93 3.94 5.0 Total Fixed rate 5,931,775 84 4.03 5.7 Floating rate 1,140,313 16 3.75 2.5 Combined $ 7,072,088 100 3.99 5.2 Other Debt(1) 267,255 (Discounts), premiums and debt costs, net (41,438) Enterprise Debt $ 7,297,905 FINANCIAL COVENANTS(2) Bank Line of Credit Requirement Actual Compliance Leverage Ratio No greater than 60% 44% Secured Debt Ratio No greater than 30% 4% Unsecured Leverage Ratio No greater than 60% 48% Fixed Charge Coverage Ratio (12 months) No less than 1.50x 3.6x Tangible Net Worth ($ billions) No less than $6.5B $8.8B 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 nine months ended September 30, 2018, dollars and square feet in thousands INVESTMENT SUMMARY Three Months Ended Nine Months Ended September 30, 2018 September 30, 2018 Acquisition of 16 MOBs - Greenville, SC(1) $ 285,000 $ 285,000 Hayden development entitlements(2) — 21,390 Noncontrolling interest in RIDEA I JV(3) — 62,632 Participating development loan(4) 17,527 19,792 Development fundings 66,227 174,881 Redevelopment fundings 16,755 47,003 Lease commissions - Dev/Redev/Acq 6,053 11,066 Total $ 391,562 $ 621,764 DEBT INVESTMENT REPAYMENTS Gross Date Proceeds Participating development financing February $ 21,498 Tandem March 112,000 Maria Mallaband - U.K. August 14,465 Total $ 147,963 ASSETS HELD FOR SALE Held for Sale Property Projected Sales Trailing Cash Date Capacity Count Property Type Price Yield(5) Las Vegas, NV June 152 Units 1 SHOP $ 12,514 19-Community Portfolio(6) June 2,478 Units 19 SHOP / Senior housing 376,933 Poway II Land June N/A N/A Life science 35,400 Various, RI June/September 647 Units 5 SHOP 48,625 Total 25 $ 473,472 7.6% (1) In August 2018, we formed a 51/49 joint venture with Morgan Stanley Real Estate Investment ("MSREI") through which we contributed nine assets valued at $320 million and MSREI contributed cash, which was used to acquire 16 MOBs valued at $285 million with an initial yield of approximately 6%, inclusive of joint venture fees. (2) In March 2018, we acquired the rights to develop a 214,000 square foot lab building on our Hayden life science campus for $21 million. (3) In March 2018, we acquired Brookdale's 10% interest in the RIDEA I JV for $63 million, bringing our total ownership in RIDEA I to 100%. (4) Represents fundings under the $115 million participating development loan for the construction of 620 Terry, a $147 million senior housing development located in Seattle. (5) Represents the average yield calculated using Cash NOI for the 12-month period ended September 2018; excludes land held for sale. (6) Seventeen properties closed in October 2018 for $264 million, the remaining two are expected to close in 4Q18. 19

Investment Summary Dispositions For the nine months ended September 30, 2018, dollars and square feet in thousands Property Sales Price/ Trailing Cash Date Capacity Count Property Type Proceeds Yield(1) West Palm Beach, FL January 34 Units 1 SHOP $ 3,350 Altamonte Springs, FL (sale to Brookdale) January 137 Units 1 SHOP 32,105 Beaumont, TX April 159 Units 1 SHOP 23,000 Various (sale to Brookdale) April 995 Units 5 SHOP / Senior housing 242,753 Various, SHOP June 439 Units 4 SHOP 37,500 RIDEA II JV(2) June 5,302 Units 49 Other 332,000 U.K. sale of partnership interest(3) June N/A N/A Other 402,447 South San Francisco, CA July 337 Sq. Ft. 4 Life science 269,400 Sterling Heights, MI August 120 Units 1 SHOP 23,000 10-Community Portfolio July/September 896 Units 10 SHOP 53,236 Various, MOB August/September 86 Sq. Ft. 2 MOB 20,725 MOB JV partnership formation(4) August N/A N/A MOB 296,450 Total 78 $ 1,735,966 6.6% (1) Represents the average yield calculated using Cash NOI for the 12-month period prior to the sale. (2) In June 2018, we sold our remaining 40% interest in the RIDEA II JV, generating proceeds of $332 million. (3) In June 2018, we sold a 51% interest in our U.K. assets, generating net proceeds of $402 million, including $146 million of third party property-level financing at our share. (4) Sales price of $296 million represents MSREI's 49% share of the $605 million joint venture formed in August 2018, through which we contributed nine assets valued at $320 million and MSREI contributed cash used to acquire 16 MOBs valued at $285 million as referenced on the previous page, generating proceeds of $11.5 million. 20

Developments As of September 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 $ 58,203 $ 4,393 $ 62,596 The Cove at Oyster Point - Phase III San Francisco, CA Life science 2 145,258 91,612 236,870 Sorrento Summit San Diego, CA Life science 1 3,259 13,581 16,840 The Shore at Sierra Point - Phase I San Francisco, CA Life science 2 86,080 137,583 223,663 The Cove at Oyster Point - Phase IV San Francisco, CA Life science 1 25,534 81,761 107,295 75 Hayden Boston, MA Life science 1 34,691 125,524 160,215 10 $ 353,025 $ 454,454 $ 807,479 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 306 100 2Q16 4Q18 2Q19 The Cove at Oyster Point - Phase III 324 100 4Q16 1Q19 3Q19 Sorrento Summit 28 100 3Q17 3Q19 3Q19 The Shore at Sierra Point - Phase I(3) 222 59 4Q17 4Q19 1Q20 The Cove at Oyster Point - Phase IV 164 100 2Q18 1Q20 1Q20 75 Hayden 214 — 2Q18 4Q20 4Q22 1,258 76 (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. (3) In October 2018, we signed a lease for 92,000 square feet, bringing the percentage of total project leased to 100% and the total Development portfolio to 83% leased. 21

Redevelopments and Land Held for Development(1) As of September 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 $ 25,387 $ 5,733 $ 13,257 $ 44,377 2Q17 3Q18 Wateridge San Diego, CA Life science 1 — 7,134 6,373 13,507 2Q17 4Q18 Summit III Nashville, TN Medical office 1 — 1,737 4,263 6,000 1Q18 1Q19 Nordstrom Tower Seattle, WA Medical office 1 — 1,605 5,495 7,100 1Q18 1Q19 Biotech Gateway San Francisco, CA Life science 1 — 3,372 12,248 15,620 1Q18 1Q19 Various SHOP Various SHOP 8 — 2,691 67,740 70,431 2Q18 - 3Q18 3Q19 - 3Q20 Pointe Grand San Francisco, CA Life science 2 — 3,738 23,922 27,660 3Q18 1Q19 St Matthews I Louisville, KY Medical office 1 220 267 10,514 11,001 3Q18 4Q19 16 $ 25,607 $ 26,277 $ 143,812 $ 195,696 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 The Shore at Sierra Point San Francisco, CA Life science 14 365 $ 53,264 Forbes Research Center San Francisco, CA Life science 8 326 46,559 Modular Labs III San Francisco, CA Life science 2 106 10,772 Torrey Pines Science Center San Diego, CA Life science 6 93 11,612 Directors Place San Diego, CA Life science 4 82 6,313 Remaining Various Various 13 N/A 4,589 47 972 $ 133,109 (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. 22

Capital Expenditures For the three and nine months ended September 30, 2018, dollars in thousands, except per unit/square foot THIRD QUARTER Senior Housing Triple-net SHOP Life Science Medical Office Other Total Wholly-Owned Recurring capital expenditures $ 473 $ 4,514 $ 1,009 $ 4,852 $ — $ 10,848 Tenant improvements - 2nd generation — — 2,281 5,391 191 7,864 Lease commissions - 2nd generation(1) — — 976 4,958 — 5,934 FAD capital expenditures $ 473 $ 4,514 $ 4,267 $ 15,200 $ 191 $ 24,646 Revenue enhancing capital expenditures 289 4,187 3,897 1,065 — 9,439 Casualty related capital expenditures 468 1,301 — 241 — 2,010 Initial Capital Expenditures ("ICE") — 63 95 50 — 207 Tenant improvements - 1st generation — — 12,772 6,617 — 19,388 Lease commissions - Dev/Redev/Acq(2) — — 5,753 300 — 6,053 Development — — 65,721 506 — 66,227 Redevelopment — 2,194 5,571 8,990 — 16,755 Capitalized interest — 34 3,863 799 — 4,696 Total capital expenditures $ 1,230 $ 12,294 $ 101,939 $ 33,768 $ 191 $ 149,422 (3) $338 $0.14 $0.26 (3) Recurring capital expenditures per unit/sq. ft. per Unit per Sq. Ft. per Sq. Ft. NINE MONTHS Wholly-Owned Recurring capital expenditures $ 783 $ 13,619 $ 2,057 $ 10,697 $ — $ 27,155 Tenant improvements - 2nd generation — — 9,346 17,312 210 26,868 Lease commissions - 2nd generation(1) — — 6,389 9,809 15 16,214 FAD capital expenditures $ 783 $ 13,619 $ 17,792 $ 37,818 $ 226 $ 70,237 Revenue enhancing capital expenditures 6,201 7,801 6,898 3,737 1,150 25,787 Casualty related capital expenditures 468 4,806 — 241 — 5,515 ICE — 86 1,171 120 — 1,376 Tenant improvements - 1st generation — — 48,926 26,556 — 75,482 Lease commissions - Dev/Redev/Acq(4) — — 10,695 371 — 11,066 Development — — 168,011 6,869 — 174,881 Redevelopment — 3,500 12,455 31,048 — 47,003 Capitalized interest — 50 9,242 2,848 — 12,140 Total capital expenditures $ 7,452 $ 29,860 $ 275,191 $ 109,608 $ 1,376 $ 423,487 (3) $1,073 $0.27 $0.57 (3) 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) Includes lease commissions on Development, Redevelopment, and 1st generation recently acquired space of $4.0 million, $1.4 million, and $0.7 million, respectively. (3) Senior housing triple-net per unit and Other per bed are not presented, as they are not meaningful. (4) Includes lease commissions on Development, Redevelopment, and 1st generation recently acquired space of $7.2 million, $2.3 million, and $1.6 million, respectively. 23

Portfolio Diversification As of and for the quarter ended September 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 74 $ 2,609 $ — $ 45,369 $ 781 $ — $ 48,758 16 Dallas, TX 41 1,759 1,174 — 9,552 7,788 20,273 7 San Diego, CA 34 806 — 13,770 2,152 — 16,727 6 Houston, TX 40 363 6,565 — 9,198 340 16,467 6 Denver, CO 22 2,136 2,693 — 5,481 — 10,310 3 San Jose, CA 15 — — 8,800 643 — 9,443 3 Washington, DC 19 6,666 1,675 — 997 — 9,338 3 Seattle, WA 13 2,584 39 — 6,219 — 8,842 3 Los Angeles, CA 10 2,551 466 — 1,184 3,760 7,961 3 Philadelphia, PA 6 3,180 274 — 3,802 — 7,256 2 Remaining 388 44,527 19,354 4,994 40,141 8,486 117,501 40 Cash NOI 662 $ 67,181 $ 32,240 $ 72,933 $ 80,149 $ 20,373 $ 272,875 92 Interest income — — — — — 1,236 1,236 — HCP's Share of Unconsolidated JVs 101 — — — — 23,303 23,303 8 Portfolio Income 763 $ 67,181 $ 32,240 $ 72,933 $ 80,149 $ 44,911 $ 297,414 100 (1) Excludes twelve properties in Development, including two unconsolidated development JVs. 24

Portfolio Diversification As of and for the quarter ended September 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(1) Triple-net Science Office Other Total Income Count(1) SHOP Other Total Income Brookdale 60 $ 24,049 $ — $ — $ — $ 24,049 8 59 $ 19,599 $ 15,726 $ 35,326 12 Sunrise Senior Living 48 24,045 — — — 24,045 8 5 1,653 — 1,653 1 Amgen 7 — 12,905 — — 12,905 4 — — — — — Google 11 — 7,947 — — 7,947 3 — — — — — Hospital Corporation of America ("HCA")(2) 5 — — 484 6,412 6,895 2 (2) — — — — — Atria Senior Living — — — — — — — 27 6,536 (86) 6,450 2 Remaining 512 19,087 52,080 79,665 21,473 172,305 58 29 4,452 1,386 5,838 2 Portfolio Income 643 $ 67,181 $ 72,933 $ 80,149 $ 27,885 $248,148 83 120 $ 32,240 $17,027 $ 49,266 17 PRO FORMA PORTFOLIO INCOME BY OPERATOR/TENANT(3) 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 $ 18,450 $ — $ — $ — $ 18,450 7 37 $ 13,433 $ 15,726 $ 29,159 10 Sunrise Senior Living 48 24,045 — — — 24,045 8 5 1,830 — 1,830 1 Amgen 7 — 12,905 — — 12,905 5 — — — — — Atria Senior Living — — — — — — — 27 7,180 (86) 7,093 3 HCA(2) 5 — — 484 6,412 6,895 2 (2) — — — — — Harbor Retirement Associates 14 4,898 — — — 4,898 2 — — — — — Remaining 429 14,188 51,189 81,569 16,819 163,764 59 31 6,283 1,386 7,669 3 Portfolio Income 546 $ 61,581 $ 64,094 $ 82,053 $ 23,230 $230,958 83 100 $ 28,726 $ 17,027 $ 45,752 17 (1) Excludes twelve properties in Development, including two unconsolidated development JVs. (2) Includes Cash NOI for 1.4 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 17% and 6% of Cash Rental and Operating Revenues in our medical office segment and total portfolio including HCP's Share of Unconsolidated JVs, respectively. (3) Pro forma to reflect the Brookdale Transactions, the sale of our U.K. holdings, and certain other previously announced sales, including the sale of our Shoreline Technology Center campus. Pro forma Portfolio Income is further adjusted to reflect acquisitions, dispositions and operator transitions as if they occurred on the first day of the quarter. 25

Expirations and Maturities As of September 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) $ 35,885 3 $ — $ 3,618 $ 32,267 $ — $ — 2019 85,535 8 2,305 27,337 55,893 — — 2020 129,450 12 40,592 19,765 59,962 8,145 986 2021 109,801 10 7,969 53,572 45,740 1,619 900 2022 87,340 8 1,513 25,219 44,670 14,099 1,839 2023 134,400 13 45,213 57,123 32,065 — — 2024 65,098 6 13,073 5,847 23,230 22,947 — 2025 109,754 10 9,354 44,663 35,546 20,051 140 2026 37,888 4 4,316 13,487 20,085 — — 2027 50,064 5 12,335 22,761 14,967 — — Thereafter 220,787 21 130,975 33,035 48,295 8,483 — $ 1,066,003 100 $ 267,646 $ 306,427 $ 412,720 $ 75,345 $ 3,864 Weighted average maturity in years 5.8 8.4 5.3 4.4 6.2 3.3 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) $ 45,059 4 $ — $ 3,618 $ 40,541 $ — $ 900 (1) Includes month-to-month and 2019 97,801 9 2,305 27,337 52,059 15,112 986 holdover leases. 2020 132,652 12 40,592 25,840 58,075 8,145 — (2) Reflects the earliest point at which there is no prepayment penalty. 2021 120,369 11 7,969 53,572 57,209 1,619 — 2022 84,936 8 1,513 25,219 42,864 13,501 1,839 2023 131,045 12 45,213 57,123 28,709 — — 2024 49,984 5 13,073 5,847 22,631 8,433 — 2025 110,556 10 9,354 44,663 36,348 20,051 140 2026 28,893 3 4,316 13,487 11,090 — — 2027 49,995 5 12,335 22,761 14,899 — — Thereafter 214,712 20 130,975 26,960 48,295 8,483 — $ 1,066,003 100 $ 267,646 $ 306,427 $ 412,720 $ 75,345 $ 3,864 26

Triple-Net Master Lease Profile(1)(2) INVESTMENT TYPE 2.4% x 25 13.00x2. Senior Housing - Guaranty 0.7% Senior Housing - No Guaranty x 00 2. 1.4% Other - Guaranty 0.2% LOWER RISK LOWER x % Percent of Total Cash NOI and 75 1. 0.4% Interest Income 0x .5 1 0.1% 1.4% 1.7% x 1.1% 1.8% 25 2.9% 2.0% 1. 0.1% 0.4% 1.5% 1.6% 1.1% x 1.3% 0.4% 00 0.5% 1. 0.3% 0.4% 1.8% 5x .7 0 0.1% 0.3% x 50 0. (3) 0.4% HIGHER RISK 5x .2 0 2 4 6 8 10 12 14 16 18 2250 FACILITY EBITDAR CFC (TRAILING 12 MONTHS ENDED 06/30/2018) EBITDAR FACILITY 0 HIGHER RISK LOWER RISK TERM (YEARS TO EXPIRATION) (1) Excludes properties held for sale or sold, master leases with properties acquired % of Weighted during the period required to calculate CFC and master leases that include newly Total Cash NOI Average completed developments that are not stabilized. and Interest # of Leases/ Maturity in (2) Pro forma to reflect the Brookdale Transaction. In connection with the agreement, (4) Facility EBITDAR CFC Income Data Points Years Guaranty multiple leases with Brookdale were combined into a single master lease with Less than 1.0x 5.5 9 6.6 61.8% varying maturities. The varying maturities are reflected in the graph based on their renewal terms. 1.00x - 1.25x 14.2 10 9.8 50.7% (3) Represents a three property master lease that was previously in development, which 1.26x - 1.50x 1.5 2 2.2 100.0% has reached the 24 month Stabilization period, but has not yet reached 80% 1.51x and above 5.1 5 6.6 100.0% occupancy. (4) Represents the percentage of total Cash NOI supported by a corporate guaranty. 27

Senior Housing Triple-net As of and for the quarter ended September 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 161 $ 3,003,572 $ 61,961 15,418 84.6 $ 5,905 1.21x 1.02x CCRC 2 253,764 5,220 1,055 87.0 6,280 1.38x 1.17x Total 163 $ 3,257,336 $ 67,181 16,473 84.8 $ 5,930 1.23x 1.03x Properties Facility Occupancy REVPOR EBITDARM Facility Operator Investment Cash NOI Count % Pooled Units % Triple-Net CFC EBITDAR CFC Brookdale $ 1,049,898 $ 24,049 60 97 6,190 85.6 $ 5,015 1.22x/1.34x(1) 1.05x/1.16x(1) Sunrise Senior Living 1,366,900 24,045 48 98 5,548 84.6 7,425 1.26x 1.03x Harbor Retirement Associates 214,059 4,898 14 100 1,343 79.1 5,849 1.22x 1.02x Aegis Senior Living 182,152 4,620 10 80 702 89.7 8,769 1.44x 1.26x Capital Senior Living 181,988 4,460 15 100 1,512 83.3 3,321 1.10x 0.96x Remaining 262,339 5,108 16 56 1,178 87.0 5,359 1.03x 0.89x Total $ 3,257,336 $ 67,181 163 93 16,473 84.8 $ 5,930 1.23x/1.26x(1) 1.03x/1.07x(1) (1) Brookdale Facility EBITDARM and EBITDAR CFC, pro forma to reflect the Brookdale Transaction, is 1.34x and 1.16x, respectively. Total Facility EBITDARM and EBITDAR CFC, pro forma to reflect the Brookdale Transaction, is 1.26x and 1.07x, respectively. 28

Senior Housing Triple-net Same Property Portfolio Dollars in thousands, except REVPOR 3Q17 4Q17 1Q18 2Q18 3Q18 Property count 152 152 152 152 152 Investment $ 3,075,911 $ 3,084,696 $ 3,088,338 $ 3,088,453 $ 3,091,822 Units 15,623 15,620 15,620 15,621 15,629 Occupancy % 85.8 86.1 86.2 85.3 84.7 REVPOR Triple-net $ 5,932 $ 5,937 $ 5,962 $ 6,025 $ 6,041 Facility EBITDARM CFC 1.32x 1.29x 1.27x 1.25x 1.23x/1.26x (1) Facility EBITDAR CFC 1.11x 1.08x 1.07x 1.06x 1.04x/1.07x (1) Rental and Operating Revenues $ 61,475 $ 84,880 (2) $ 63,221 $ 63,207 $ 63,652 Operating Expenses (98) (94) (98) (76) (84) NOI $ 61,377 $ 84,786 (2) $ 63,123 $ 63,131 $ 63,568 Cash Rental and Operating Revenues $ 63,220 $ 66,381 $ 61,287 $ 64,144 $ 64,221 Cash Operating Expenses (84) (80) (84) (62) (70) Cash NOI $ 63,137 $ 66,301 $ 61,202 $ 64,082 $ 64,152 Year-Over-Year Three-Month SPP Growth 1.6% (1) Facility EBITDARM and EBITDAR CFC, pro forma to reflect the Brookdale Transaction, is 1.26x and 1.07x, 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. 29

Senior Housing Triple-net New Supply As of and for the quarter ended September 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 12.8 11.9 $ 61 $ 206 3.9 Washington, DC 1,329 $ 6,666 9.9 3 / 294 $ 1,632 16.8 13.7 108 540 2.8 New York, NY 1,069 5,904 8.8 4 / 536 1,863 9.8 3.5 92 541 3.7 Philadelphia, PA 542 3,180 4.7 -- / -- — 3.3 15.1 90 321 3.5 San Francisco, CA 359 2,609 3.9 -- / -- — 13.8 12.5 94 680 2.9 Seattle, WA 428 2,584 3.8 -- / -- — 13.2 14.3 91 593 3.3 Los Angeles, CA 385 2,551 3.8 2 / 165 1,420 13.7 7.1 79 693 3.8 Chicago, IL 530 2,482 3.7 1 / 179 408 12.0 8.5 81 283 3.6 Portland, OR 897 2,275 3.4 2 / 333 443 15.2 22.9 64 318 3.8 Denver, CO 414 2,136 3.2 1 / 36 1,388 13.6 19.0 69 398 2.8 Jacksonville, FL 486 1,998 3.0 2 / 500 1,581 18.4 25.6 56 207 3.0 Dallas, TX 631 1,759 2.6 -- / -- — 19.7 17.4 73 183 3.5 Atlanta, GA 560 1,704 2.5 2 / 149 416 20.5 17.1 71 290 3.1 Austin, TX 269 1,543 2.3 1 / 206 1,543 19.9 13.1 67 423 2.8 Sebastian, FL 298 1,451 2.2 -- / -- — 14.6 10.7 50 206 4.6 Baltimore, MD 239 1,328 2.0 3 / 274 1,272 14.3 9.5 87 375 3.7 Sacramento, CA 352 1,321 2.0 2 / 170 660 13.9 14.2 72 365 3.6 Detroit, MI 330 1,312 2.0 4 / 318 1,019 5.8 24.1 74 232 3.1 Providence, RI 276 1,254 1.9 -- / -- — 8.0 11.2 55 310 5.1 Charlotte, NC 451 1,217 1.8 -- / -- — 18.4 18.4 63 231 3.7 Miami, FL 366 1,014 1.5 -- / -- — 9.4 8.4 58 256 3.5 Remaining 6,262 20,894 31.1 12 / 1,370 2,411 12.2 11.9 62 259 3.6 Total 16,473 $ 67,181 100.0 39 / 4,530 $ 16,056 12.3 11.0 $ 75 $ 370 3.5 % of Total Cash NOI and Interest Income 5.9% (1) Demographic data provided by StratoDem Analytics for 2018. Construction and supply data provided by National Investment Center for Senior Housing and Care (“NIC”) for the quarter ended September 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. 30

SHOP As of and for the quarter ended September 30, 2018, dollars in thousands, except REVPOR INVESTMENTS Property REVPOR Count Investment Cash NOI Units Occupancy % SHOP Operator Brookdale 43 $ 1,258,211 $ 19,599 6,748 87.4 $ 3,746 Atria Senior Living 27 594,163 6,536 3,541 79.7 4,249 Senior Lifestyle Corp. 7 197,373 2,397 640 81.8 5,596 Sunrise Senior Living 5 147,075 1,653 639 82.0 4,782 Remaining 15 265,286 2,054 1,427 78.3 4,639 Total 97 $ 2,462,108 $ 32,240 12,995 84.2 $ 4,089 TOTAL OPERATING PORTFOLIO 3Q17 4Q17 1Q18 2Q18 3Q18 Property count 84 102 100 102 97 Investment $ 2,348,506 $ 2,606,937 $ 2,600,444 $ 2,500,375 $ 2,462,108 Units 12,205 13,744 13,580 13,527 12,995 Occupancy % 86.6 87.3 85.5 84.6 84.2 REVPOR SHOP $ 3,992 $ 3,978 $ 4,069 $ 4,027 $ 4,089 Rental and Operating Revenues $ 126,040 $ 133,789 $ 144,670 $ 138,352 $ 137,044 Operating Expenses (86,821) (129,265) (1) (101,746) (101,767) (106,182) NOI $ 39,219 $ 4,524 (1) $ 42,925 $ 36,585 $ 30,863 Cash Rental and Operating Revenues $ 126,279 $ 132,718 $ 142,318 $ 136,700 $ 137,815 Cash Operating Expenses (87,095) (94,633) (101,001) (100,239) (105,576) Cash NOI $ 39,184 $ 38,084 $ 41,317 $ 36,461 $ 32,240 Cash NOI Margin % 31.0 28.7 29.0 26.7 23.4 (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. 31

SHOP MSA As of and for the quarter ended September 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 $ 348,446 $ 6,565 20.4 311 1,962 91.0 $ 4,993 $ 2,564 Chicago, IL 180,681 2,880 8.9 — 947 88.1 — 3,165 Denver, CO 174,042 2,693 8.4 154 437 91.7 4,192 4,079 Miami, FL 210,300 2,645 8.2 982 394 87.9 4,378 2,853 Tampa, FL 107,716 1,793 5.6 182 424 85.3 4,162 3,951 Washington, DC 145,690 1,675 5.2 468 — 81.5 5,919 — Dallas, TX 71,668 1,174 3.6 286 216 86.4 4,048 3,655 Baltimore, MD 117,102 1,147 3.6 375 — 80.0 5,836 — Memphis, TN 72,442 1,143 3.5 — 182 93.0 — 5,860 Boston, MA 57,815 898 2.8 177 — 84.7 6,981 — Phoenix, AZ 42,286 893 2.8 — 211 91.6 — 3,938 Providence, RI 111,346 844 2.6 612 171 80.2 5,012 3,348 Richmond, VA 63,328 738 2.3 204 — 71.9 5,581 — Austin, TX 38,368 707 2.2 136 — 96.9 5,169 — Sarasota, FL 89,038 655 2.0 260 164 73.6 4,035 4,919 Boulder, CO 41,152 628 1.9 — 96 96.8 — 4,343 Dayton, OH 29,434 525 1.6 72 108 91.2 5,239 2,877 Los Angeles, CA 16,067 466 1.4 135 — N/A — — Charlotte, NC 45,172 397 1.2 135 — 70.2 5,321 — Sebastian, FL 21,469 367 1.1 104 — 80.2 4,437 — Remaining 478,544 3,409 10.6 2,269 821 77.5 4,108 4,063 Total $ 2,462,108 $ 32,240 100.0 6,862 6,133 84.2 $ 4,757 $ 3,446 (1) Units and REVPOR SHOP are based on the majority type within each community. AL includes needs-based care, such as memory care. 32

SHOP Same Property Portfolio Dollars in thousands, except REVPOR 3Q17 4Q17 1Q18 2Q18 3Q18 Property count 50 50 50 50 50 Investment $ 1,419,313 $ 1,426,090 $ 1,429,960 $ 1,437,347 $ 1,444,778 Units 6,652 6,650 6,646 6,646 6,646 Occupancy % 87.5 88.7 88.3 87.0 86.1 REVPOR SHOP $ 4,031 $ 4,032 $ 4,152 $ 4,183 $ 4,179 Rental and Operating Revenues $ 70,170 $ 71,212 $ 73,598 $ 72,718 $ 71,454 Operating Expenses (46,874) (64,332) (1) (49,080) (50,345) (50,014) NOI $ 23,297 $ 6,880 (1) $ 24,518 $ 22,373 $ 21,440 Cash Rental and Operating Revenues $ 70,356 $ 71,337 $ 73,087 $ 72,562 $ 71,704 Cash Operating Expenses (47,073) (48,176) (48,281) (49,365) (49,892) Cash NOI $ 23,283 $ 23,161 $ 24,807 $ 23,197 $ 21,812 Cash NOI Margin % 33.1 32.5 33.9 32.0 30.4 Year-Over-Year Three-Month SPP Growth (6.3%) COMPONENTS OF SHOP SPP CASH NOI GROWTH Core Transition/Sales Portfolio(2) Portfolio(3) Total Property count 32 18 50 Current Quarter Cash NOI $ 15,482 $ 6,330 $ 21,812 SPP Cash NOI Growth 4.1% (24.8%) (6.3%) SPP Cash NOI Margin 33.1% 25.4% 30.4% (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 16 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 previously managed by Brookdale that have transitioned or are expected to transition to new operators or sell in 2018. 33

SHOP New Supply As of and for the quarter ended September 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 12.8 11.9 $ 61 $ 206 3.9 Houston, TX 2,273 $ 6,565 20.4 3 / 834 $ 2,952 20.7 20.3 80 281 3.5 Chicago, IL 947 2,880 8.9 1 / 68 554 10.2 14.3 97 312 3.5 Denver, CO 591 2,693 8.4 3 / 608 1,926 13.6 17.9 59 343 3.0 Miami, FL 1,376 2,645 8.2 3 / 367 734 9.3 8.7 56 220 4.2 Tampa, FL 606 1,793 5.6 -- / -- — 8.4 12.0 50 180 3.8 Washington, DC 468 1,675 5.2 2 / 158 719 16.5 7.1 100 406 3.3 Dallas, TX 502 1,174 3.6 1 / 180 385 20.3 15.8 57 166 4.1 Baltimore, MD 375 1,147 3.6 -- / -- — 6.1 6.4 80 291 4.1 Memphis, TN 182 1,143 3.5 2 / 347 1,143 10.3 25.0 75 229 2.7 Boston, MA 177 898 2.8 1 / 72 542 9.4 10.7 79 535 2.8 Phoenix, AZ 211 893 2.8 1 / 128 893 16.5 14.4 52 214 4.1 Providence, RI 783 844 2.6 -- / -- — 4.2 6.1 57 230 4.5 Richmond, VA 204 738 2.3 2 / 43 738 4.4 36.5 94 339 2.3 Austin, TX 136 707 2.2 -- / -- — 29.6 22.7 56 230 3.4 Sarasota, FL 424 655 2.0 3 / 346 291 12.4 13.0 58 245 3.3 Boulder, CO 96 628 1.9 -- / -- — 17.3 23.1 62 657 2.7 Dayton, OH 180 525 1.6 1 / 66 283 5.8 9.5 61 164 3.5 Los Angeles, CA 135 466 1.4 -- / -- — 16.0 5.8 101 792 2.8 Charlotte, NC 135 397 1.2 -- / -- — 19.8 18.6 79 250 3.0 Sebastian, FL 104 367 1.1 -- / -- — 14.4 19.6 50 187 4.5 Remaining 3,090 3,409 10.6 6 / 660 740 12.8 9.9 57 196 4.0 Total 12,995 $ 32,240 100.0 29 / 3,877 $ 11,900 13.2 14.0 $ 70 $ 280 3.6 % of Total Cash NOI and Interest Income 4.3% (1) Demographic data provided by StratoDem Analytics for 2018. Construction and supply data provided by NIC for the quarter ended September 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. 34

Life Science As of and for the quarter ended September 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 81 $ 2,792,581 $ 54,169 4,497 97.2 San Diego, CA 28 786,725 13,770 1,925 93.9 Boston, MA 2 242,727 1,695 398 93.9 Remaining 8 154,258 3,299 512 100.0 119 $ 3,976,291 $ 72,933 7,332 96.3 SAME PROPERTY PORTFOLIO 3Q17 4Q17 1Q18 2Q18 3Q18 Property Count 107 107 107 107 107 Investment $ 3,135,734 $ 3,144,196 $ 3,157,085 $ 3,181,866 $ 3,196,675 Square Feet 6,312 6,312 6,316 6,316 6,317 Occupancy % 96.3 95.6 94.3 95.4 96.2 Rental and Operating Revenues $ 75,779 $ 77,465 $ 74,755 $ 75,621 $ 78,338 Operating Expenses (16,512) (16,621) (15,305) (15,996) (17,152) NOI $ 59,267 $ 60,844 $ 59,450 $ 59,626 $ 61,186 Cash Rental and Operating Revenues $ 76,572 $ 76,581 $ 74,809 $ 76,320 $ 78,808 Cash Operating Expenses (16,493) (16,602) (15,286) (15,979) (17,139) Cash NOI $ 60,079 $ 59,979 $ 59,524 $ 60,341 $ 61,669 Year-Over-Year Three-Month SPP Growth % 2.6% (1) Excludes ten properties that are in Development. 35

Life Science As of September 30, 2018, dollars and square feet in thousands SELECTED LEASE EXPIRATION DATA (NEXT 5 YEARS) 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(1) 96 1 $ 3,618 1 72 $ 3,113 24 $ 505 — $ — — $ — 2019 661 9 27,337 9 285 9,291 297 14,767 80 3,279 — — 2020 549 8 19,765 6 317 12,072 232 7,692 — — — — 2021 963 14 53,572 17 812 48,675 151 4,898 — — — — 2022 695 10 25,219 8 344 14,728 280 8,627 — — 70 1,864 Thereafter 4,100 58 176,916 58 2,541 128,449 823 23,123 294 12,559 441 12,785 7,064 100 $ 306,427 100 4,372 $ 216,327 1,807 $ 59,612 374 $ 15,838 512 $ 14,649 TENANT CONCENTRATION Leased Square Feet Annualized Base Rent Remaining University, Lease Term % of % of Credit in Years Amount Total Amount Total Rating Government, Research 4% Amgen 4.0 684 10 $ 49,483 16 A Google 3.9 729 10 31,355 10 AA+ Public Biotech / Takeda 0.6 166 2 9,836 3 A- Medical Device Office and Rigel Pharmaceuticals 4.3 147 2 8,992 3 — 44% R&D 16% AstraZeneca Pharmaceuticals 8.5 156 2 8,558 3 BBB+ Myriad Genetics 6.7 310 4 7,995 3 — Pharma Shire 10.1 184 3 7,172 2 BBB- Private 18% Five Prime 9.3 115 2 6,789 2 — Biotech / Medical Device NuVasive 15.7 169 2 6,752 2 — 18% General Atomics 13.2 397 6 6,108 2 — Remaining 4.9 4,007 57 163,387 53 5.3 7,064 100 $ 306,427 100 (1) Includes month-to-month and holdover leases. 36

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 June 30, 2018 7,375 $ 43.58 Dispositions (337) 63.67 Redevelopments (115) 35.38 Expirations (156) 29.81 Renewals, amendments and extensions 126 31.63 10.7 $ 15.38 $ 6.65 45 68.8% New leases 171 50.15 88.68 17.93 106 Leased Square Feet as of September 30, 2018 7,064 $ 43.38 Britannia Oyster Point I - A South San Francisco, CA 3737

Medical Office As of and for the quarter ended September 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 $ 554,971 $ 9,552 89.3 1,861 34 328 54 2,189 88 12 Houston, TX 29 558,539 9,198 93.2 1,182 1,365 287 — 1,469 1,365 15 Seattle, WA 6 218,589 6,219 94.2 667 — — — 667 — 3 Denver, CO 16 280,441 5,481 89.1 1,027 — 35 — 1,062 — 6 Nashville, TN 14 165,787 4,869 93.9 1,289 10 — — 1,289 10 7 Louisville, KY 11 214,907 4,179 91.8 565 17 447 15 1,013 32 5 Philadelphia, PA 3 292,513 3,802 89.7 700 — 217 90 916 90 5 Salt Lake City, UT 13 147,353 3,464 95.6 434 63 153 116 587 179 4 Phoenix, AZ 13 178,108 3,048 89.7 518 — 207 — 726 — 4 San Diego, CA 5 109,705 2,152 97.3 — 176 155 — 155 176 2 Miami, FL 10 97,704 2,121 84.5 499 — — 30 499 30 3 Greenville, SC 16 293,127 2,077 99.4 232 560 12 52 244 612 4 Las Vegas, NV 7 122,923 1,779 84.2 536 — — — 536 — 3 Kansas City, MO 3 78,593 1,524 96.3 260 — — 8 260 8 1 San Antonio, TX 4 70,375 1,252 77.0 354 — — — 354 — 2 Ogden, UT 9 63,469 1,184 88.1 269 — 13 68 282 68 2 Los Angeles, CA 4 63,844 1,184 88.8 106 — 97 — 202 — 1 Sacramento, CA 2 74,758 1,011 95.8 — — 29 92 29 92 1 Washington, DC 3 65,645 997 80.7 55 29 99 — 154 29 1 Baltimore, MD 3 31,811 825 98.5 — 63 38 58 38 121 1 Remaining 70 845,496 14,231 95.5 1,609 1,230 404 420 2,012 1,650 19 268 $ 4,528,657 $ 80,149 92.1 12,162 3,547 2,521 1,003 14,683 4,550 100 (1) Includes 7.1 million square feet subject to ground leases with average expirations of 56 years and renewal options generally ranging from 10 to 25 years. (2) Includes medical office buildings that are off-campus, adjacent (within 0.25 miles of a hospital campus) and anchored (50% or more leased by a health system). 38

Medical Office As of and for the quarter ended September 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 7,275 60 236 — 7,570 39.4 15.8 18.2 Memorial Hermann Health System 40 A1 1,572 80 — — 1,652 8.6 8.8 4.7 Community Health Systems, Inc. 8 Caa2 1,287 51 — — 1,338 7.0 6.8 4.4 Greenville Health System 117 A1 792 64 — — 856 4.5 4.5 3.8 Norton Healthcare 116 — 582 15 328 — 926 4.8 3.0 3.1 Jefferson Health 64 A2 700 — — — 700 3.6 2.2 2.2 Providence Health & Services 4 Aa3 563 — — — 563 2.9 1.4 2.3 Steward Health Care N/A — 547 — — — 547 2.8 1.7 1.5 Remaining - credit rated 2,054 753 507 — 3,314 17.2 Non-credit rated 336 226 56 1,149 1,767 9.2 Total 15,709 1,249 1,127 1,149 19,233 100.0 44.2 40.2 % of Total 81.7 6.5 5.9 6.0 Total Healthcare Affiliated 94.0% 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 June 30, 2018 16,944 $ 23.35 Acquisitions 851 19.69 Dispositions (48) 29.86 Expirations (671) 23.65 Renewals, amendments and extensions 546 24.52 4.0 $ 12.56 $ 4.81 68 77.6% New leases 149 23.35 29.87 8.50 78 Terminations (49) 21.79 Leased Square Feet as of September 30, 2018 17,722 $ 23.29 (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. 39

Medical Office As of and for the quarter ended September 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) 1,307 7 $ 32,267 8 1,041 $ 26,203 266 $ 6,065 2019 2,283 13 55,893 14 1,777 43,819 506 12,073 2020 2,305 13 59,962 15 2,013 53,343 292 6,619 2021 1,820 10 45,740 11 1,536 38,764 284 6,977 2022 1,771 10 44,670 11 1,352 33,873 419 10,797 Thereafter 8,236 46 174,187 42 6,791 140,536 1,445 33,652 17,722 100 $ 412,720 100 14,509 $ 336,538 3,212 $ 76,183 SAME PROPERTY PORTFOLIO 3Q17 4Q17 1Q18 2Q18 3Q18 Property Count 223 223 223 223 223 Investment $ 3,400,445 $ 3,425,084 $ 3,448,259 $ 3,467,894 $ 3,485,303 Square feet 16,180 16,179 16,186 16,186 16,170 Occupancy % 92.4 92.2 92.4 92.1 92.1 Rental and Operating Revenues $ 104,775 $ 104,318 $ 104,321 $ 105,621 $ 107,133 Operating Expenses (38,707) (37,389) (37,603) (38,244) (39,863) NOI $ 66,069 $ 66,929 $ 66,718 $ 67,377 $ 67,270 Cash Rental and Operating Revenues $ 104,081 $ 103,571 $ 103,366 $ 104,724 $ 106,762 Cash Operating Expenses (38,128) (36,805) (37,031) (37,671) (39,295) Cash NOI $ 65,953 $ 66,767 $ 66,335 $ 67,052 $ 67,467 Year-Over-Year Three-Month SPP Growth % 2.3% (1) Includes month-to-month and holdover leases. 40

Other Wholly-owned As of and for the quarter ended September 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 $ 342,426 $ 14,235 1,442 44.8 9.65x 9.07x Remaining 10 189,876 5,824 696 50.0 4.01x 3.72x 14 $ 532,302 $ 20,059 2,138 47.9 7.81x 7.32x Post-acute/skilled Wholly-Owned 1 $ 17,909 $ 314 120 94.5 1.91x 1.55x Total Leased Properties 15 $ 550,211 $ 20,373 DEBT INVESTMENTS Weighted Average Interest Maturity in Investment Income Yield Years 620 Terry Development Loan(2) $ 19,792 $ 136 6.5% 4.2 Remaining 40,580 1,099 8.7% 3.5 Total Debt Investments $ 60,373 $ 1,236 8.0% 3.8 (1) Certain operators in our hospital portfolio are not required under their respective leases to provide operational data. (2) Investment represents fundings under the $115 million participating development loan for the construction of 620 Terry, a $147 million senior housing development located in Seattle. 41

Other Same Property Portfolio - Wholly-owned As of and for the quarter ended September 30, 2018, dollars in thousands OTHER 3Q17 4Q17 1Q18 2Q18 3Q18 Property count 15 15 15 15 15 Investment $ 548,818 $ 548,818 $ 549,968 $ 549,987 $ 550,211 Beds 2,254 2,254 2,254 2,258 2,258 Occupancy %(1) 50.7 48.6 47.7 51.2 47.9 Facility EBITDARM CFC(1) 6.52x 6.83x 7.11x 7.50x 7.81x Facility EBITDAR CFC(1) 6.08x 6.38x 6.65x 7.03x 7.32x Rental and Operating Revenues $ 20,856 $ 21,095 $ 21,684 $ 21,876 $ 22,580 Operating Expenses (1,094) (1,226) (1,176) (1,273) (1,336) NOI $ 19,762 $ 19,869 $ 20,508 $ 20,603 $ 21,244 Cash Rental and Operating Revenues $ 20,237 $ 20,481 $ 20,994 $ 21,156 $ 21,723 Cash Operating Expenses (1,094) (1,226) (1,176) (1,273) (1,336) Cash NOI $ 19,143 $ 19,255 $ 19,817 $ 19,882 $ 20,387 Year-Over-Year Three-Month SPP Growth 6.5% (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. 42

Other Unconsolidated JVs(1) As of and for the quarter ended September 30, 2018, dollars and square feet in thousands Other SHOP Medical SELECTED FINANCIAL DATA AT 100% Total CCRC JV JVs U.K. JV Life Science Office Remaining Joint ventures' Investment $ 2,471,438 $ 1,475,599 $ 251,165 $ 519,350 $ 165,229 $ 50,519 $ 9,576 Joint ventures' mortgage debt 1,043,893 616,896 133,798 290,264 — — 2,935 Property count 103 15 10 68 4 3 3 Capacity 7,268 Units 921 Units 3,640 Beds 293 Sq. Ft. 294 Sq. Ft. 360 Beds Occupancy % 85.5 93.1 87.1 96.3 76.4 77.9 Total revenues $ 129,674 $ 105,749 $ 9,296 $ 10,710 $ 1,838 $ 1,638 $ 443 Operating expenses (93,730) (86,008) (6,323) — (538) (833) (28) NOI $ 35,944 $ 19,741 $ 2,973 $ 10,710 $ 1,300 $ 805 $ 415 Depreciation and amortization (30,579) (24,574) (1,759) (3,092) (565) (518) (71) General and administrative expenses (596) (34) (41) (466) (3) (50) (2) Interest expense and other (11,459) (6,217) (1,337) (3,703) (125) 3 (80) Net income (loss) $ (6,690) $ (11,084) $ (164) $ 3,449 $ 607 $ 240 $ 262 Depreciation and amortization 30,579 24,574 1,759 3,092 565 518 71 FFO $ 23,889 $ 13,490 $ 1,595 $ 6,541 $ 1,172 $ 758 $ 333 Non-refundable Entrance Fee sales, net(2) 13,314 13,314 — — — — — Non-cash adjustments to NOI (1,929) (663) (33) (1,211) (56) 34 — Non-cash adjustments to net income 1,004 264 67 671 — — 2 FAD capital expenditures (3,484) (2,923) (207) — (60) (294) — FAD $ 32,794 $ 23,482 $ 1,422 $ 6,001 $ 1,056 $ 498 $ 335 HCP's SHARE OF UNCONSOLIDATED JVs HCP's ownership percentage 49% 45% - 90% 49% 50% - 63% 20% - 67% 80% HCP's net equity investment(3) $ 426,939 $ 181,129 $ 59,589 $ 105,200 $ 67,328 $ 12,313 $ 1,380 Mortgage debt(3) 324,891 103,522 79,140 142,229 — — — NOI 17,967 9,673 1,480 5,248 823 411 332 Cash NOI 23,210 15,574 1,453 4,655 781 415 332 Net income (loss)(3) (911) (2,880) (53) 1,556 43 213 210 FFO(3) 14,269 8,729 910 3,206 753 404 267 FAD(3) 18,535 13,580 813 2,941 682 251 268 (1) Excludes land held for development and includes two senior housing developments and two life science redevelopments. (2) Includes $21.7 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 $8.4 million related to non-refundable Entrance Fee amortization recognized on an FFO basis over the estimated stay of the residents. See Entrance Fees in Glossary. (3) HCP's pro rata share excludes activity related to $194 million of debt funded by HCP at the CCRC JV. 43

Other Unconsolidated JV Capital Represents HCP's pro rata share of unconsolidated JVs for the quarter ended September 30, 2018, dollars in thousands UNCONSOLIDATED JV CAPITAL Three Months Ended Nine Months Ended September 30, 2018 September 30, 2018 FAD capital expenditures $ 1,740 $ 7,840 Revenue enhancing capital expenditures 4,014 10,193 Tenant improvements - 1st generation 2 2 Lease commissions - Dev/Redev/Acq 200 625 Development 7,157 16,839 Redevelopment 2,318 3,630 Capitalized interest 1,109 1,872 Total capital expenditures $ 16,538 $ 41,002 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 $ 23,720 $ 4,124 $ 27,844 111 2Q17 4Q18 2Q21 Waldwick New York, NY Senior housing 1 9,981 15,911 25,892 79 3Q17 2Q19 2Q21 2 $ 33,701 $ 20,035 $ 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 $ 4,204 $ 21,636 $ 25,840 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 $ 2,315 Brandywine Philadelphia, PA Senior housing 8 67 797 11 141 $ 3,112 (1) Includes lease commissions incurred to date and projected lease commissions through stabilization. 44

Other CCRC JV Dollars in thousands, except REVPOR CCRC JV 3Q17 4Q17 1Q18 2Q18 3Q18 Property count 15 15 15 15 15 Units 7,249 7,250 7,257 7,262 7,268 Occupancy % 84.9 85.7 86.4 85.8 85.5 REVPOR(1) $ 5,094 $ 5,153 $ 5,099 $ 5,132 $ 5,188 HCP's SHARE OF CCRC JV Investment $ 705,554 $ 709,625 $ 713,996 $ 718,920 $ 723,044 Cash Rental and Operating Revenues excluding Cash NREFs, net $ 46,074 $ 47,063 $ 46,982 $ 46,983 $ 47,370 Cash NREFs, net(2) 8,090 9,892 6,235 7,186 10,299 Cash Operating Expenses (40,044) (41,103) (40,916) (40,980) (42,095) Cash NOI $ 14,120 $ 15,852 $ 12,300 $ 13,189 $ 15,574 Margin % including NREFs, net 25.9 27.7 23.0 24.2 26.8 Year-Over-Year Three-Month Growth 10.3% (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. 45

2018 Guidance Projected full year 2018, dollars in millions, except per share amounts Full Year 2018 Guidance (October 31, 2018) Net Income, FFO and FFO as Adjusted per Share Guidance (1) SPP Cash NOI guidance includes $9.0 million related to non-recurring items identified in Diluted earnings per common share $2.23 - $2.29 our 4Q17 Earnings Release and Supplemental Report. Excluding these items, SPP Cash Diluted FFO per common share $1.65 - $1.69 NOI guidance would be 2.00% at the mid-point. Diluted FFO as adjusted per common share $1.79 - $1.83 (2) HCP's Share of Unconsolidated JVs Total Cash NOI guidance range consists of the Annualized dividend per share $1.48 following: (1) Year-Over-Year SPP Cash NOI Guidance HCP's Share of Total Joint Venture Comments Senior housing triple-net 0.50% - 1.50% Cash NOI 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 51% interest 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) (3) Base case assumes that proceeds from dispositions are used to repay approximately $2.4 billion of debt at a blended rate of approximately 4%. The remaining proceeds are Amortization of deferred compensation $15 - $17 assumed to be reinvested into a combination of capital expenditures and investments. Amortization of deferred financing costs $12 - $14 Major dispositions consist of the following: Straight-line rents ($22) - ($24) FAD capital expenditures ($104) - ($110) 2018 Cash Transaction Timing Proceeds Yield CCRC Entrance Fees, net $16 - $19 Tandem and other 1H18 $197 2.9% Deferred income taxes ($13) - ($17) Brookdale sales - 4 SHOP / 2 NNN Jan/Apr 2018 $275 7.4%(A) Other FAD adjustments - primarily JV FAD capital ($7) - ($11) RIDEA II JV - remaining interest June 2018 $332 6.8% U.K. JV(B) June 2018 $402 6.5% Capital Expenditures (excluding FAD Capital Expenditures) Genentech PO July 2018 $269 8.0% 1st generation tenant improvements/ICE $87 - $93 BKD 3rd Party Transactions - SHOP / NNN Q4 $377 7.5% Lease commissions - Dev/Redev/Acq $11 - $15 Shoreline Technology Center campus November 2018 $1,000 3.5% 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. HCP's Share of Unconsolidated JVs Dev/Redev $30 - $40 (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 revenue enhancing and other $16 - $21 including $146 million of third party property–level financing at our share. Other Items Interest income $9 - $11 General and administrative (excluding severance and related charges) $80 - $85 Interest expense $260 - $270 HCP's Share of Unconsolidated JVs Cash NOI(2) $84 - $90 HCP's Share of Unconsolidated JVs FFO $60 - $66 Net dispositions(3) $2.8B - $3.2B @ 5.5% 46

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. 47

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. 48

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). 49

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. 50

Adjusted EBITDA and Adjusted Debt Ratios Fixed Charge Coverage Dollars in thousands NET INCOME TO ADJUSTED EBITDA Three Months Ended September 30, 2018 Net income $ 102,926 Interest expense 63,486 Income tax expense (benefit) (4,929) Depreciation and amortization 132,198 Other depreciation and amortization 2,343 HCP’s share of unconsolidated JV: Interest expense 3,995 Income tax expense (benefit) 240 Depreciation and amortization 15,180 Other JV adjustments (250) EBITDA $ 315,189 Loss (gain) on sales of real estate, net (95,332) Impairments (recoveries) of depreciable real estate, net 5,268 Transaction-related items 4,678 Severance and related charges 4,573 Loss on debt extinguishments 43,899 Litigation costs (recoveries) (545) Foreign currency remeasurement losses (gains) (41) Adjusted EBITDA $ 277,689 ADJUSTED FIXED CHARGE COVERAGE Interest expense 63,486 Capitalized interest 5,736 HCP’s share of unconsolidated JV interest expense and capitalized interest 4,064 Fixed Charges $ 73,286 Adjusted Fixed Charge Coverage 3.8x 51

Debt Ratios As of and for the quarter ended September 30, 2018, dollars in thousands ENTERPRISE DEBT AND NET DEBT September 30, 2018 Bank line of credit(1) $ 636,709 Term loans 223,468 Senior unsecured notes(2) 5,706,181 Mortgage debt 139,401 Other debt 92,494 Consolidated Debt $ 6,798,253 HCP's share of unconsolidated JV mortgage debt 324,891 HCP's share of unconsolidated JV other debt 174,761 Enterprise Debt $ 7,297,905 Cash and cash equivalents (78,864) HCP's share of unconsolidated JV cash and cash equivalents (31,791) Net Debt $ 7,187,250 FINANCIAL LEVERAGE September 30, 2018 Enterprise Debt $ 7,297,905 Enterprise Gross Assets 17,202,197 Financial Leverage 42.4% SECURED DEBT RATIO September 30, 2018 Mortgage debt $ 139,401 (1) Includes £55 million translated into USD. HCP's share of unconsolidated JV mortgage debt 324,891 (2) On October 9, 2018, we provided a redemption notice to Enterprise Secured Debt $ 464,292 holders of our $450 million senior unsecured notes due in 2019, which will be redeemed in November 2018. Enterprise Gross Assets 17,202,197 (3) Represents the current quarter Adjusted EBITDA multiplied Secured Debt Ratio 2.7% by a factor of four. NET DEBT TO ADJUSTED EBITDA Three Months Ended September 30, 2018 Net Debt $ 7,187,250 Adjusted EBITDA(3) 1,110,756 Net Debt to Adjusted EBITDA 6.5x 52

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 Housing Properties SCOTT M. BRINKER Executive Vice President SHAWN G. JOHNSTON Chief Investment Officer Senior Vice President Chief Accounting Officer THOMAS M. KLARITCH Executive Vice President GLENN T. PRESTON Chief Operating Officer Senior Vice President Senior Managing Director TROY E. MCHENRY Medical Office Properties Executive Vice President General Counsel and Corporate Secretary PETER A. SCOTT Executive Vice President Chief Financial Officer 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,” “target,” “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, lease commissions, total investment and return on investment, (ii) the redemption of the Company's senior unsecured notes due in 2019, (iii) portfolio diversification, operator/tenant concentration, and facility EBITDARM and EBITDAR CFC on a pro forma basis, (iv) future new supply and demographics, and (v) 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

Forward-Looking Statements & 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 Patewood Medical Office Building C Greenville, SC (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