HCP,Inc.

June2011

Disclaimer
Thispresentationisbeingpresentedsolelyforyourinformation,whichissubjecttochangeandspeaksonlyasofthedatehereto.Thispresentation
andcommentsmadebymanagementdonotconstituteanoffertosellorthesolicitationofanoffertobuyanysecuritiesofHCPoranyinvestment
interestinanybusinessventuresofHCP.Thispresentationisnotcompleteandisonlyasummaryofthemoredetailedinformationincluded
elsewhere,includinginHCPsSecuritiesandExchangeCommissionfilings.Norepresentation orwarranty,expressedorimpliedismadeandno
relianceshouldbeplacedontheaccuracy,fairnessorcompletenessoftheinformationpresented.HCP,itsaffiliates,advisers andrepresentatives
acceptnoliabilitywhatsoeverforanylossesarisingfromanyinformationcontainedinthispresentation.
Someofthestatementsinthispresentation,aswellasstatementsmadebymanagement,maybeforwardlookingstatements, including
statementsregardingFFO,FADandincomeprojections,futurebusinessstrategiesandabilitytoacceleratedividendgrowth,andHCPintendssuch
forwardlookingstatements tobecoveredbythesafeharborprovisionscontainedinthePrivateSecuritiesLitigationReformActof1995. HCP
cautionsthatsuchstatementsarenotguaranteesoffutureperformanceandaresubjecttoknownandunknownrisks,uncertainties,assumptions
andotherfactors manyofwhichareoutsideofHCPscontrolanddifficulttoforecast thatcouldcauseactualresultstodiffermateriallyfrom
thosesetforthinorimpliedbyforwardlookingstatements.Theserisksanduncertaintiesincludebutarenotlimitedto:nationalandlocal
economicconditions,risksassociatedwithacquisitions,includingourabilitytointegrateouracquisitionofHCRManorCare,satisfactionofthe
conditionstotheclosingofthestrategicventurewithBrookdaleSeniorLiving,volatilityincapitalmarkets,changesininterestrates,availabilityof
capital,competitionforlesseesandmortgagors,abilityofHCPsoperators,tenants,lesseesandmortgagorstomaintaintheiroperationsandsatisfy
theirrespectiveobligationstoHCPandotherthirdparties,changesinhealthcarelawsandregulations,changesinthefinancialpositionorbusiness
strategies,risksassociatedwithvarioussegmentsofHCPsportfolioandotherrisksdescribedfromtimetotimeinHCPspressreleasesand
SecuritiesandExchangeCommissionfilings.Thesestatementsarebasedoncurrentplans,estimatesandprojections,andthereforeyoushouldnot
placeunduerelianceonthem.ForwardlookingstatementsspeakonlyasofthedatetheyweremadeandHCPassumesno,andherebydisclaims,
anyobligationtoupdateanyoftheforegoingasaresultofnew informationorneworfuturedevelopmentsorotherwise.
ThispresentationalsoincludesmarketandindustrydatathatHCPhasobtainedfrommarketresearch,publiclyavailableinformationandindustry
publications.Theaccuracyandcompletenessofsuchinformationisnotguaranteed.Themarketandindustrydataisoftenbasedonindustry
surveysandpreparers experienceintheindustry.Similarly,althoughHCPbelievesthatthesurveysandmarketresearchthatothershave
performedarereliable,HCPhasnotindependentlyverifiedthisinformation.
ThispresentationcontainscertainsupplementalnonGAAPfinancialmeasures.WhileHCPbelievesthatnonGAAPfinancialmeasuresarehelpfulin
evaluatingitsoperatingperformance,theuseofnonGAAPfinancialmeasuresinthispresentationshouldnotbeconsideredinisolationfrom,oras
analternativefor,ameasureoffinancialoroperatingperformanceasdefinedbyGAAP.Youarecautionedthatthereareinherentlimitations
associatedwiththeuseofeachofthesesupplementalnonGAAPfinancialmeasuresasananalyticaltool.ReconciliationsofthenonGAAPfinancial
measurestothemostdirectlycomparableGAAPfinancialmeasures canbefoundintheCompanyssupplementalinformationpackagesand
earningsreleases,whichareavailableontheCompanyswebsiteatwww.hcpi.cominthePresentations sectionoftheInvestorRelations tab.

HCPOverview
Investsin5segmentsofhealthcarerealestate

$1.4BAnnualCashNOI(1)

through5investmentproducts

Proformaforrecentacquisitions(1)

$19billionofassetsundermanagement

Diverse,wellbalancedportfolio

Portfoliotogenerateover$1.4billionof
annualcashnetoperatingincome

PostAcute/
Skilled
Nursing
33%

Hospital
6%

Strongbalancesheetwithinvestmentgrade
creditratings

sinceIPOin1985
26yearsofconsecutivedividendgrowth

(1) Basedon2010,adjustedtoreflectthefullyearimpactofHCRManorCarerealestateacquisitionandVenturesIIbuyouttransactions.
(2) ThroughMarch2011andassumesreinvestmentofdividends.

LifeScience
15%

BestinclassTenants&Operators

Compoundannualshareholderreturnof16.7%(2)

MOB
14%

Senior
Housing
32%

2011YTDHighlights
Completedthebuyoutofcapitalpartner's65%interestinHCPVenturesII
ReceivedcreditratingupgradesfromMoody's(toBaa2)andFitch (toBBB+)
$2.4BseniorunsecurednotesofferinginJanuary
Declaredannualizeddividendof$1.92/share,representing3.2%increasefrom2010
$1.27BequityofferinginMarch(upsized44%from24Mto34.5Mshares)
Newrevolvingcreditfacilityproviding$1.5Bofimmediateliquidity
Closed$6.1BacquisitionofHCRManorCarespostacute/skillednursingrealestate
FormedastrategicventurewithBrookdale,including21seniorhousingcommunities
inaRIDEAstructure

Highquality,diversifiedportfoliosupportedbyastrongbalancesheet
3

HugeandgrowingindustryintheUS

17.4%ofGDPonnationalhealth
expenditures($2.7trillion)(1)

$1trillionofhealthcarerealestate(2)

%ofTotalUSPopulation

100

25%

AcceleratedagingofUSpopulationin
thenextdecade

Next
Decade

20%

80

15%

60

10%

40

5%

20

0%
1980

1990
%85+

2000

2010

%7584

2020

2030

%6574

2040

2050

65+Population

Fragmentedindustrydespiterecentsector
institutionalization
Originallyacottageindustry withonly5
dedicatedHCREITsinlate1980s
15+publicHCREITswithsignificantcapital
inflow

$160
$1,000

$inBillions

FragmentedIndustry

$200
$1,200
$1,000

$120
$85
$80
$40
$0
TotalMarket

Institutional
RealEstate

Healthcareindustryprovidesfavorableunderlyingfundamentals
(1) Source:CentersforMedicare&MedicaidServicesprojectionsforcalendaryear2011.
(2) BasedonCompanyestimates.

$75

PublicHCREITs

PopulationinMillions

StrongDemographics

WhyHealthcareRealEstate?

DemonstratedInvestmentTrackRecord
MultiplePathwaystoCreateOwnershipInterestsinRealEstate
Senior
Housing

Life
PostAcute/
Science
Skilled

Medical
Office

Hospital

Development
DebtInvestment

HCRManorCare

JointVenture

StrategicventurewithBrookdale

RealEstate

VenturesII

5 x 5 Business Model

RIDEA TRS
Current

Original1985IPOPortfolio

Flexiblecapitalallocationthatreflects/exploitscurrentmarketopportunities&conditions
5

EvolutionofLongtermStrategicRelationship
HCP HCRManorCareHistory
Aug2009

Dec2007

Bought$1Bmezz
investment(face)from
majorcommercialbanks
inconnectionwithHCR
ManorCareLBO
Keyterms:

Purchased$720M
participationinthefirst
mortgagedebtfroma
majorcommercialbank

Keyterms:

April2011

Acquired100%ownershipin
HCRManorCares
unencumberedrealestate
portfoliofor$6.1billion

Coupon:L+125bps

Coupon:L+400bps

Discounttopar:$130M

Discounttopar:$100M

Received$425M
favorablefinancing

Earlyparpayoffproducedablended
IRRof12.5%ondeployedcapital
during3yearhold

Exercisedoptiontopurchase
9.9%equityinterestin
HCRsoperationsfor$95M

Accretivelyredeployed
HCP'scapitalinto
longtermrealestate

$6.1BacquisitioninApril2011istheculminationofinvestmentsinHCRManorCarethatbeganin2007
6

HCP'sBusinessModelProvidesAttractiveOptionality
Historyof25propertyseniorhousingportfolio(HorizonBayBrookdale)
2006

2007

2011

RealEstate

Alignmentwithastrong
operator

JointVenture

Attractivevaluationentry
point
Favorablesupply/demand
fundamentals

RIDEA TRS
PortfolioSnapshot:
4NNNLeasedAssets

LevelofCare
28%
SNF

Occupancy

38%
IL

Margin

GrowthExpectation

94.7%

30.7%

2.75%perannum

89.0%

37.7%

"Righttime"inthecycle

34%
AL(Z)

21RIDEA/JVAssets

17%
AL(Z)
83%
IL

HCP's CurrentTwoLargestRelationships

Largestproviderofpostacute,
skillednursing&rehabcare
Nationalfootprintwith500+
locations

Outstandingmargins
Qualitymixatindustryleading
71%ofrevenues

Thepremierpostacuteand
skillednursingoperator
Successfullydischargesmore
than150,000patientsperyear

CriticalMass

Efficient
Operations

Quality
Outcome

Largestoperatorinthesenior
housingindustry
Industryleadingancillaryservices
platform

Attractivemarginsenabledby
economiesofscale
Strongmarketconcentrations
provide"VirtualCCRC"

Bestinclassseniorhousing
operator
Highsatisfactionfromresidents
&employees

Strategicrelationshipswithstrongalignmentleadtoadditional growthopportunities
8

AMultiyear,ForwardlookingHCPPerspective
$7billionofaccretiveacquisitionscompletedduring2011YTDwillsignificantlyaddto
FFO&FADpershareinthefirstyearpostclosing
Lockedinthe"profitspread"withlongtermfinancing
Organic,ongoingFADpersharegrowthforthenextfewyears,drivenby:

Lowtomid3%CashSamePropertyPerformance

TargetLeverageof40%

Ourcurrentportfolioprimarilyconsistsof
longterm,contractualrents&oncampusMOBs

Principallyallfixedratedebtwith6.4year
averageremainingtenor

NormalizedCashSPPisprojectedtoincreasefrom
themid2%tothelowtomid3%area:

Primarilyunsecuredbonds

$6.1billionHCRManorCarerealestate,
masterleasedwith3.5%rentincreasesforthe
next5years
Sunrisetransitionassets

FADgrowthenhancesdividendcoverageandabilitytoaccelerategrowthofdividendinthefuture
9

HCPProvidesSafety&Growth
Healthcareindustryprovidesfavorableunderlyingfundamentals

Newerassetsinhighbarrierto
entrymarketsatorbelow
replacementcost

Premiertenants&operators
withstructuralandcredit
enhancements

Longtermleaseswithsteadyescalatorsandlimitedrollover

Leverage5x5model

Provenexecutionexperience

Uniquebusinessmodelresultingincompetitiveedgeandvalue

HCPistheindustryleaderwithrespecttosize,portfolioqualityandstrategies
10