Investor Presentation November 2017 Table of Contents Introduction - PowerPoint PPT Presentation

Investor Presentation November 2017

Table of Contents  Introduction to HCP 3-10  Segment Overviews 11-18  Development and Redevelopment 19-22  Balance Sheet, Guidance and Sustainability 23-28  Appendices  Brookdale Transaction Overview 29-36  Demographic Drivers of Demand 37-41 Note: Data in this presentation is as of September 30, 2017 unless otherwise noted. HCP 2 2

INTRODUCTION TO HCP HCP HCP 3 3

Introduction HCP at a Glance DIVERSIFIED SCALE BALANCED PORTFOLIO 818 PROPERTIES 18 Million Sq. Ft. Medical Office $21 Billion in Enterprise Value (1) $13 Billion in Market Cap (1) 8 Million Sq. Ft. Life Science 46,000 Senior Housing Units HIGH GH-QUA UALITY PRIVAT ATE P PAY AY INVESTMENT GRADE ESTABLISHED DIVER VERSIFIED ED STRONG BALANCE SHEET 32 YEARS AS A PUBLIC COMPANY S&P: BBB (Positive Outlook) Member of S&P 500 5.5% Dividend Yield (2) Moody’s: Baa2 (Stable) Fitch: BBB (Stable) (1) Enterprise value and market capitalization based on HCP’s share price of $27.83 on 9/30/17 and total consolidated debt and HCP’s share of unconsolidated JV debt as of 9/30/17. (2) Based on share price as of 11/9/17. HCP 4 4

What Differentiates HCP  High-quality, 95% private-pay portfolio with a balanced emphasis on Senior Housing, Medical Office, and Life Science real estate  Over 50% of cash NOI from specialty office which includes primarily on-campus Medical Office portfolio and premier Life Science properties in San Francisco and San Diego Strong and improving investment grade balance sheet with ample  Recently announced reentry into the Boston life science market liquidity and no signif  ~40% of cash NOI from a diversified senior housing portfolio with a balanced mix of well-covered triple-net leases and operating properties  ~$1 billion development and redevelopment pipeline with an additional 1.8 million square feet of entitlements  Investment grade balance sheet with ample liquidity and no significant debt maturities until 2019  Global leader in sustainability & best-in-class disclosures and transparency Cypress MOB Cypress, TX HCP 5 5

Senior Leadership MICHAEL McKEE EXECUTIVE CHAIRMAN TOM HERZOG PRESIDENT AND CHIEF EXECUTIVE OFFICER Mr. McKee is our Executive Chairman and works closely with our Mr. Herzog is our President and CEO and a member of our Board of senior management team refining the strategic direction of the Directors. Mr. Herzog is responsible for all aspects of the Company, pursuing business development initiatives, and Company’s business and has been instrumental in the recent advancing our corporate governance practices and process. repositioning of the Company through the sale or transfer of non- Currently, he chairs our Investment Committee. Mr. McKee has strategic assets, balance sheet improvements, and reductions in been a member of our Board of Directors since 1989. Previously, tenant concentrations. Previously, Mr. Herzog was CFO of UDR, he was Vice Chairman and CEO of The Irvine Company and CEO of Inc. from January 2013 until June 2016. Prior to joining UDR, Mr. Bentall Kennedy U.S., two of the largest privately-owned real estate Herzog served in various CFO and Chief Accounting Officer roles firms in North America. in the real estate industry. PETER SCOTT CHIEF FINANCIAL OFFICER TOM KLARITCH CHIEF OPERATING OFFICER Mr. Scott is our EVP and Chief Financial Officer and is responsible Mr. Klaritch is our EVP and Chief Operating Officer and oversees for all aspects of the Company’s finance, treasury, tax, risk the Company’s specialty office platform with the life science and management, and investor relations activities. In addition, Mr. medical office businesses reporting to him, and works closely with Scott sits on our Investment Committee. Prior to joining HCP in the respective teams to advance the competitive performance and 2017, he served as Managing Director, Real Estate Banking Group growth of this platform. Mr. Klaritch previously served as Senior of Barclays from 2014 to 2017. His experience also includes various Managing Director – Medical Office Properties from April 2008 to positions of increasing responsibility at the financial services firms August 2017. In aggregate, Mr. Klaritch has 34 years of operational Credit Suisse from 2011 to 2014, Barclays from 2008 to 2011 and and financial management experience in the medical office and Lehman Brothers from 2002 to 2008. hospital sectors. SCOTT BRINKER CHIEF INVESTMENT OFFICER TROY McHENRY GENERAL COUNSEL & CORPORATE SECRETARY Mr. Brinker is anticipated to become our EVP and Chief Investment Mr. McHenry is our EVP, General Counsel and Corporate Secretary Officer effective Q1 2018. In addition to leading the Company’s and serves as the chief legal officer. He is responsible for Effective investment activities, Mr. Brinker will also oversee our senior providing oversight and a legal perspective for the Company’s real Q1 2018 housing platform. Mr. Brinker most recently served as EVP and estate and financing transactions, litigation, as well as corporate Chief Investment Officer at Welltower from July 2014 to January governance and SEC/NYSE compliance. He previously served as 2017. Prior to that, he served as Welltower’s EVP of Investments SVP – Legal and HR from July 2013 to February 2016, as well as from January 2012 to July 2014. From July 2001 to January 2012, he other legal related capacities since December 2010. Prior to served in various investment and portfolio management related joining HCP, Mr. McHenry held various legal leadership roles with capacities with Welltower. MGM Resorts International, Boyd Gaming Corp., and DLA Piper. HCP 6 6

The Opportunity HCP Has a Significant Pipeline for Future Growth HCP’s PORTFOLIO (2) U.S. HEALTHCARE REAL ESTATE (1) Other owners of Other healthcare real estate 7% SH - NNN 19% Medical $21B $1.1 Office 27% HCP HCP Enterprise SHOP Trillion Value 20% Other public REITs Life Science 27% (1) Sources: National Investment Center for Seniors Housing & Care (NIC), HCP research. (2) Percentages by segment represent 3Q 2017 Cash NOI plus Interest Income, including $3 million of anticipated quarterly stabilized Cash NOI from our Hayden (life science asset) acquisition (under contract), while excluding $18 million of quarterly Cash NOI and Interest Income from our UK investments (marketing for sale) and Tandem Consulate Health Care debt investment (under contract to sell). Assumes proceeds from UK and Tandem sales are invested equally in SHOP, Medical Office and Life Science assets at a blended cap rate of 5.5%. Assumes approximately 50% of the Cash NOI related to 36 Brookdale SHOP assets and 32 Brookdale triple-net leased assets is sold and approximately 50% is transitioned to other operators (see Appendix I for more information). Enterprise value and market capitalization based on HCP’s share price of $27.83 on 9/30/17 and total consolidated debt and HCP’s share of unconsolidated JV debt as of 9/30/17. HCP 7 7

HCP’s Portfolio & Strategy Overview Strategic Growth Initiatives Across Segments As Baby Boomers Age, They Will Continue to Seek… Frequent primary-care and New and innovative drugs, Senior Housing communities specialist doctor visits, treatments and healthcare offering social activities, daily performed more efficiently in a devices, which will be serviced living assistance, and Medical Office Building setting by our Life Science portfolios coordination with outside healthcare providers Parker Adventist Denver, CO The Cove South San Francisco, CA The Solana Preserve Houston, TX  Grow relationships with top  Focus on the three major Life  Focus on locations with strong 5- hospitals and health systems Science markets mile / 20-min drive time demographics and favorable  Pursue on-campus and select off-  Assemble clusters of assets supply outlooks campus assets with strong through acquisitions,  Active asset and portfolio hospitals and health systems in development and redevelopment relevant markets management to reduce risks  Grow existing relationships by  Execute on redev potential in our  Capitalize on select development providing expansion opportunities older, on-campus portfolio to our tenants and redevelopment opportunities HCP 8 8

Execution of Strategic Repositioning 2016 1H 17 2H 17 Expected ‘17–‘18 SPUN-OFF SNF BROOKDALE HC-ONE HC-ONE TANDEM SALE ASSETS ASSET SALES REPAYMENT REPAYMENT INITIAL FOUR SEASONS $500M BOND $500M BOND BROOKDALE LOAN SALE TENDER TENDER TRANSACTIONS (2) REENTERED REENTERED EXIT U.K. BOSTON L.S. BOSTON L.S. INVESTMENTS MARKET (1 ) MARKET (1) FUTURE BROOKDALE TRANSACTIONS (2) Rapid Progress With A Clear Path to Completion (1) See page 15 for details on recent Hayden life science campus acquisition (under contract). (2) See pages 30 to 36 for additional information on the previously announced Brookdale transactions. HCP 9 9