Investor Presentation September 2017 Table of Contents 3-12 - PowerPoint PPT Presentation

Investor Presentation September 2017

Table of Contents 3-12  Introduction to HCP 13-18  Segment Overviews 19-22  Development and Redevelopment 23-28  Balance Sheet, Guidance and Sustainability 29-33  Appendices Data in presentation is as of June 30, 2017 unless otherwise noted. HCP 2 2

INTRODUCTION TO HCP HCP HCP 3 3

Introduction HCP at a Glance DIVERSIFIED SCALE 799 PROPERTIES 3 RD LARGEST HEALTHCARE REIT 18 Million Sq. Ft. Medical Office $23 Billion in Enterprise Value (1) $15 Billion in Market Cap (1) 7 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 (Stable) Member of S&P 500 4.9% Dividend Yield (2) Moody’s: Baa2 (Stable) Fitch: BBB (Stable) (1) Enterprise value and market capitalization based on HCP’s share price of $31.96 on 6/30/17 and total consolidated debt and HCP’s share of unconsolidated JV debt as of 6/30/17. (2) Based on share price as of 9/8/17. 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  Investment grade balance sheet with ample liquidity and no significant debt maturities until 2019 Strong and improving investment grade balance sheet with ample liquidity and no signif  44% of Cash NOI and Interest Income (1) from a diversified senior housing portfolio: 25% triple-net with well-covered leases and 19% SHOP  Premier Life Science portfolios in San Francisco and San Diego  83% on-campus MOB portfolio  ~$1 billion development and redevelopment pipeline with an additional 1.8 million square feet of entitlements  Global leader in sustain inabil ilit ity & best-in-class disclosures and tran tr anspar aren ency Cypress MOB Cypress, Texas (1) Cash NOI plus Interest Income excluding $9.4 million of interest income from our HC-One debt investment which was repaid 6/30/17 and $7.6 million of interest income from our Tandem Consulate Health Care debt investment as we entered into a definitive agreement in July 2017 to sell this investment. 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 Effective Officer effective January 4, 2018. In addition to leading the and serves as the chief legal officer. He is responsible for Company’s investment activities, Mr. Brinker will also oversee our providing oversight and a legal perspective for the Company’s real January senior housing platform. Mr. Brinker most recently served as EVP estate and financing transactions, litigation, as well as corporate 2018 and Chief Investment Officer at Welltower from July 2014 to governance and SEC/NYSE compliance. He previously served as January 2017. Prior to that, he served as Welltower’s EVP of SVP – Legal and HR from July 2013 to February 2016, as well as Investments from January 2012 to July 2014. From July 2001 to other legal related capacities since December 2010. Prior to January 2012, he served in various investment and portfolio joining HCP, Mr. McHenry held various legal leadership roles with management related 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 10% SH - NNN 25% Medical $23B $1.1 Office 23% HCP HCP Enterprise Trillion Value Other SHOP public 19% REITs Life Science 23% (1) Sources: National Investment Center for Seniors Housing & Care (NIC), HCP research. (2) Enterprise value based on HCP’s share price of $31.96 on 6/30/17 and total consolidated debt and HCP’s share of unconsolidated JV debt as of 6/30/17. Percentages by segment represent 2Q17 reported Cash NOI plus Interest Income excluding $9.4 million of interest income from our HC-One debt investment which was repaid 6/30/17 and $7.6 million of interest income from our Tandem Consulate Health Care debt investment as we entered into a definitive agreement in July 2017 to sell this investment. HCP 7 7

HCP Portfolio & Strategy Overview Focused Growth in Three Core Segments Senior Housing Medical Office Life Science The Solana Preserve Houston, TX Parker Adventist Denver, CO The Cove South San Francisco, CA    National portfolio of 46,000 units One of the largest MOB portfolios 95% located in 2 of the top 3 LS markets    57% NNN / 43% SHOP portfolio (1) 18M sq. ft.; 83% on-campus High-quality land bank  87% in NIC-99 markets (1)  87% in Top-50 MSAs (1)  Top-tier relationships SENI NIOR OR HOU OUSING NG FOC OCUS MEDICAL L OFFI FFICE FO FOCUS LIFE S E SCIEN ENCE E FOCUS US  Reduce Brookdale concentration, focus  Grow relationships with top hospitals  Focus on core Life Science markets on growing relationships with 10-12 and health systems  Assemble clusters of assets through operators  Pursue on-campus opportunities and acquisitions, development and  As pricing for stable assets continues to select off-campus assets with strong redevelopment rise, focus on select development hospitals and health systems  Grow existing relationships by providing opportunities in top markets  Remain disciplined as pricing expansion opportunities to our tenants  Capitalize on redevelopment expectations continue to rise opportunities (1) Percentage based on Cash NOI for senior housing and square footage for medical office and life science. HCP 8

Execution of Strategic Repositioning OCTOBER 2016 JANUARY 2017 MARCH 2017 SUMMER 2017 SPUN-OFF SNF SALE OF INTEREST SALE OF 64 HC-ONE LOAN ASSETS IN BROOKDALE BROOKDALE REPAYMENT PORTFOLIO ASSETS TANDEM FOUR SEASONS LOAN SALE LOAN SALE ANNOUNCEMENT ELIMINATED DIRECT SNF EXPOSURE $500M BOND TENDER REDUCED LEVERAGED DEBT INVESTMENTS REPAID $3.7B OF DEBT / DELEVERED BALANCE SHEET REDUCED BROOKDALE EXPOSURE We Have Made Steady Progress… HCP 9 9