HEALTHPEAK PROPERTIES, INC. - FORM 8-K - EX-99.2

Attached files

file	filename
EX-99.1 - EX-99.1 - HEALTHPEAK PROPERTIES, INC.	a09-32650_1ex99d1.htm
8-K - 8-K - HEALTHPEAK PROPERTIES, INC.	a09-32650_18k.htm

Exhibit 99.2

Supplemental Information

September 30, 2009

(Unaudited)


San Francisco, CA		San Diego, CA		Irvine, CA		Richmond, VA

Table of Contents

Company Information	1
Highlights	2
Consolidated Funds From Operations	3
Capitalization	4
Indebtedness and Ratios	5
Investments and Dispositions	6
Development	7
Owned Portfolio
Portfolio summary	8
Portfolio concentrations	9
Same property operating lease portfolio	10
Lease expirations and debt investment maturities	11
Owned Senior Housing Portfolio
Investments and operator concentration	12
Trends	13
Owned Life Science Portfolio
Investments, tenant concentration and trends	14
Lease expirations and leasing activity	15
Owned Medical Office Portfolio
Investments and trends	16
Leasing activity	17
Owned Hospital Portfolio
Investments and operator concentration	18
Trends and HCR ManorCare Information	19
Owned Skilled Nursing Portfolio
Investments and operator concentration	20
Trends	21
Investment Management Platform
Summary and balance sheets	22
Statement of operations and funds from operations	23
Net operating income	24
Portfolio summary	25
Reporting Definitions and Reconciliations of Non-GAAP Measures	26-30

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this supplemental information which are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements include among other things the Company’s estimate of (i) yields, (ii) completion dates, stabilization dates, rentable square feet and total investment for development projects in progress, and (iii) rentable square feet for land held for future development. These statements are made as of the date hereof and are subject to known and unknown risks, uncertainties, assumptions and other factors—many of which are out of the Company’s control and difficult to forecast—that could cause actual results to differ materially from those set forth in or implied by forward-looking statements. These risks and uncertainties include but are not limited to: national and local economic conditions, including the possibility of a prolonged recession; continued volatility in the capital markets, including changes in interest rates and the availability and cost of capital, which changes and volatility affect opportunities for profitable investment; the Company’s ability to access external sources of capital when desired and on reasonable terms; the Company’s ability to manage its indebtedness levels; changes in the terms of the Company’s indebtedness; the Company’s ability to maintain its credit ratings; the potential impact of existing and future litigation matters, including the possibility of larger than expected litigation costs and related developments; the Company’s ability to achieve the expected benefits from acquisitions, including integrating and preserving the goodwill of the acquired companies; the Company’s ability to sell its properties when desired and on profitable terms; competition for lessees and mortgagors (including new leases and mortgages and the renewal or rollover of existing leases); the Company’s ability to reposition its properties on the same or better terms if existing leases are not renewed or the Company exercises its right to replace an existing operator or tenant upon default; continuing reimbursement uncertainty in the skilled nursing segment; competition in the senior housing segment specifically and in the healthcare industry in general; the ability of the Company’s operators and tenants to maintain or increase occupancy levels at, and rental income from, the senior housing segment; the Company’s ability to realize the benefits of its mezzanine and other loan investments; the ability of the Company’s lessees and mortgagors to maintain the financial strength and liquidity necessary to satisfy their respective obligations to the Company and other third parties; the bankruptcy, insolvency or financial deterioration of the Company’s operators, lessees, borrowers or other obligors; changes in healthcare laws and regulations, including the impact of future or pending healthcare reform, and other changes in the healthcare industry which affect the operations of the Company’s lessees or obligors; the Company’s ability to recruit and retain key management personnel; costs of compliance with regulations and environmental laws affecting the Company’s properties; changes in tax laws and regulations; the Company’s ability and willingness to maintain its qualification as a REIT; changes in rules governing financial reporting, including new accounting pronouncements; and other risks described from time to time in the Company’s Securities and Exchange Commission filings. The Company assumes no, and hereby disclaims any, obligation to update any of the foregoing or any other forward-looking statements as a result of new information or new or future developments, except as otherwise required by law.

*Company Information* *(1)*

Board of Directors

Robert R. Fanning, Jr.		Harold M. Messmer, Jr.
Managing Director (Retired),		Chairman and Chief Executive Officer
The Huron Consulting Group		Robert Half International, Inc.

James F. Flaherty III		Peter L. Rhein
Chairman and Chief Executive Officer		Partner, Sarlot & Rhein
HCP, Inc.
		Kenneth B. Roath
Christine N. Garvey		Chairman Emeritus, HCP, Inc.
Former Global Head of Corporate
Real Estate Services, Deutsche Bank AG		Richard M. Rosenberg
		Chairman and Chief Executive Officer
David B. Henry		(Retired), BankAmerica Corporation
Vice Chairman, President and Chief
Investment Officer, Kimco Realty Corporation		Joseph P. Sullivan
		Chairman of the Board of Advisors
Lauralee E. Martin		RAND Health
Chief Operating and Financial Officer
Jones Lang LaSalle Incorporated

Michael D. McKee
Chief Executive Officer and Vice Chairman
(Retired), The Irvine Company

Senior Management

James F. Flaherty III		Thomas D. Kirby
Chairman and		Executive Vice President
Chief Executive Officer		Acquisitions and Valuations

Paul F. Gallagher		Thomas M. Klaritch
Executive Vice President		Executive Vice President
Chief Investment Officer		Medical Office Properties

Edward J. Henning		Timothy M. Schoen
Executive Vice President		Executive Vice President
General Counsel, Chief Administrative		Life Science and Investment Management
Officer and Corporate Secretary
		Susan M. Tate
Thomas M. Herzog		Executive Vice President
Executive Vice President		Asset Management and Senior Housing
Chief Financial Officer and Treasurer

Other Information

Corporate Headquarters		Nashville Office
3760 Kilroy Airport Way, Suite 300		3000 Meridian Boulevard, Suite 200
Long Beach, CA 90806-2473		Franklin, TN 37067
(562) 733-5100
		San Francisco Office
Chicago Office		400 Oyster Point Boulevard, Suite 409
444 North Michigan Avenue, Suite 3230		South San Francisco, CA 94080
Chicago, IL 60611

The information in this supplemental information package should be read in conjunction with the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other information filed with the Securities and Exchange Commission (“SEC”). The Reporting Definitions and Reconciliations of Non-GAAP Measures are an integral part of the information presented herein.

On the Company’s internet website, www.hcpi.com, you can access, free of charge, its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, and 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 its website is not incorporated by reference into, and should not be considered a part of, this supplemental information package. In addition, the SEC maintains an internet website that contains reports, proxy and information statements, and other information regarding issuers, including HCP, that file electronically with the SEC at www.sec.gov.

For more information, contact Thomas M. Herzog, Executive Vice President, Chief Financial Officer and Treasurer at (562) 733-5309.

(1)	As of October 30, 2009.

Highlights

Dollars in thousands, except per share data

	Three Months Ended September 30,					Nine Months Ended September 30,
	2009			2008		2009		2008

Revenues	$	255,329		$	267,852	$	773,603	$	760,653

NOI	207,830			217,225		629,658		612,356

Adjusted EBITDA	237,314			279,543		701,146		750,702

Net income (loss) applicable to common shares	(52,397		)	119,615		82,672		390,357

FFO applicable to common shares	32,169			174,287		306,424		414,740

Diluted EPS per common share	$	(0.18	)	$	0.49	$	0.31	$	1.68

Diluted FFO per common share	$	0.11		$	0.70	$	1.14	$	1.77

Diluted FFO per common share, before giving effect to impairments, litigation provision and merger-related charges	$	0.52		$	0.72	$	1.60	$	1.84

FFO payout ratio, before giving effect to impairments, litigation provision and merger-related charges	89%			63%		86%		74%

Financial Leverage	43%			47%

Adjusted fixed charge coverage	2.6x			2.8x		2.5x		2.4x

	September 30,			December 31,
	2009			2008

Properties:

Senior housing	258			260

Life science	98			104

Medical office	251			251

Hospital	22			23

Skilled nursing	48			48

Total	677			686

Portfolio Income from Assets Under Management(1)		Assets Under Management: $13.8 billion(2)

(1) Represents the NOI from real estate owned by HCP, the interest income from debt investments and HCP’s pro rata share of the NOI from real estate owned by the Company’s Investment Management Platform, excluding assets under development and land held for future development, for the nine months ended September 30, 2009.

(2) Represents the historical cost of real estate owned by HCP, the carrying amount of debt investments and 100% of the cost of real estate owned by the Company’s Investment Management Platform, excluding assets under development and land held for future development, at September 30, 2009.

See Reporting Definitions and Reconciliations of Non-GAAP Measures

Consolidated Funds From Operations

Dollars in thousands, except per share data

	Three Months Ended September 30,						Nine Months Ended September 30,
	2009			2008(1)			2009			2008(1)

Net income (loss) applicable to common shares	$	(52,397	)	$	119,615		$	82,672		$	390,357
Depreciation and amortization of real estate, in-place lease and other intangibles:
Continuing operations	82,301			77,292			242,318			232,574
Discontinued operations	56			414			266			7,178
Gain on sales of real estate	(2,460		)	(27,752		)	(34,357		)	(228,395		)
Equity income from unconsolidated joint ventures	(1,328		)	(1,227		)	(1,993		)	(3,736		)
FFO from unconsolidated joint ventures	6,433			6,488			19,004			18,216
Noncontrolling interests’ and participating securities’ share in earnings	3,895			6,659			12,147			19,559
Noncontrolling interests’ and participating securities’ share in FFO	(4,331		)	(7,202		)	(13,633		)	(21,013		)
FFO applicable to common shares	$	32,169		$	174,287		$	306,424		$	414,740

Distributions on convertible units	$	—		$	3,992		$	—		$	11,155

Diluted FFO applicable to common shares	$	32,169		$	178,279		$	306,424		$	425,895

Basic FFO per common share	$	0.11		$	0.71		$	1.14		$	1.79

Diluted FFO per common share	$	0.11		$	0.70		$	1.14		$	1.77

Weighted average shares used to calculate diluted FFO per share	285,234			253,531			268,183			240,633

Dividends declared per common share	$	0.46		$	0.455		$	1.38		$	1.365

Impact of impairments, litigation provision and merger-related charges	$	117,096		$	4,553		$	123,002		$	16,598

Per common share impact of impairments, litigation provision and merger-related charges on diluted FFO	$	0.41		$	0.02		$	0.46		$	0.07

Diluted FFO per common share, before giving effect to impairments, litigation provision and merger-related charges	$	0.52		$	0.72		$	1.60		$	1.84

FFO payout ratio, before giving effect to impairments, litigation provision and merger-related charges	88.5%			63.2%			86.3%			74.2%

Consolidated selected supplemental cash flow information:
Impairments	$	15,123		$	3,710		$	21,029		$	13,425
Litigation provision	101,973			—			101,973			—
Amortization of above and below market lease intangibles, net	(1,677		)	(1,991		)	(12,657		)	(6,020		)
Stock-based compensation	3,531			3,152			11,068			10,637
Amortization of debt premiums, discounts and issuance costs, net	1,874			2,385			6,187			7,409
Straight-line rents	(12,992		)	(9,112		)	(38,751		)	(28,645		)
Interest accretion – DFLs	(2,034		)	(2,160		)	(5,983		)	(6,350		)
Increase in deferred revenues – tenant improvement related	2,818			3,677			10,178			12,594
Increase (decrease) in deferred revenues – additional rents (SAB 104)	(201		)	(729		)	329			3,633
Lease commissions and tenant and capital improvements	(8,495		)	(12,375		)	(27,321		)	(44,734		)

HCP’s share of selected supplemental cash flow information from unconsolidated joint ventures(2):
Amortization of above and below market lease intangibles, net	$	139		$	264		$	1,394		$	799
Amortization of debt premiums, discounts and issuance costs, net	111			139			300			345
Straight-line rents	(1,329		)	(1,328		)	(3,394		)	(3,667		)
Lease commissions and tenant and capital improvements	(542		)	(501		)	(1,644		)	(1,303		)

(1) Presentation and certain computational changes have been made for the adoption of Accounting Standard Codification 260-10, Earnings Per Share - Overall (formerly FSP-EITF 03-6-1, Determining Whether Instruments Granted in Share Based Payment Transactions are Participating Securities), to compute earnings per share and funds from operations per share under the two-class method.

(2) Includes Investment Management Platform and three other unconsolidated joint ventures.

See Reporting Definitions and Reconciliations of Non-GAAP Measures

Capitalization

Dollars and shares in thousands, except price data

Total Debt
	September 30, 2009		December 31, 2008		September 30, 2008
Bank line of credit	$	—	$	150,000	$	—
Term loan	200,000		200,000		200,000
Bridge loan	—		320,000		320,000
Senior unsecured notes	3,520,577		3,523,513		3,522,689
Mortgage and other secured debt	1,863,404		1,641,734		1,804,069
Mortgage debt on assets held for sale	—		—		978
Other debt	99,487		102,209		102,602
Consolidated debt	5,683,468		5,937,456		5,950,338
HCP’s share of unconsolidated debt(1)	342,698		346,470		347,701
Total debt	$	6,026,166	$	6,283,926	$	6,298,039

Total Market Capitalization
	September 30, 2009
	Shares/Units	Price		Value
Common stock	293,145	$	28.74	$	8,424,987
Convertible partnership units
2 for 1(2)	1,627	57.48		93,520
1 for 1(3)	2,660	28.74		76,448
	4,287			169,968
Preferred stock:
7.25% Series E (Callable at par after September 15, 2008)	4,000	22.25		89,000
7.10% Series F (Callable at par after December 3, 2008)	7,820	22.00		172,040
	11,820			261,040

Consolidated market equity				$	8,855,995

Consolidated debt				5,683,468

Consolidated market capitalization				$	14,539,463

HCP’s share of unconsolidated debt(1)				342,698

Total market capitalization				$	14,882,161

*Common Stock and Equivalents*
	Shares	Weighted Average Shares
	Outstanding	Three Months Ended		Nine Months Ended
	September 30,	September 30, 2009		September 30, 2009
	2009	Diluted EPS	Diluted FFO	Diluted EPS	Diluted FFO
Common Stock	293,145	284,812	284,812	267,971	267,971
Dilutive securities:
Restricted stock and units	996	—	187	33	96
Options	37	—	235	37	116
Convertible partnership units	5,914	—	—	—	—
Total common and equivalents	300,092	284,812	285,234	268,041	268,183

*Other Information*
Trading Symbol		Senior Debt Ratings
HCP	Common Stock	Moody’s	Baa3 (stable outlook)
HCP_pe	Series E Preferred Stock	Standard & Poor’s	BBB (stable outlook)
HCP_pf	Series F Preferred Stock	Fitch	BBB (positive outlook)

Stock Exchange Listing

NYSE

(1) Reflects the Company’s pro rata share of amounts from the Investment Management Platform. Excludes unconsolidated joint ventures outside of the Investment Management Platform.

(2) Each convertible partnership unit is exchangeable for an amount of cash approximating the then-current market value of two shares of the Company’s common stock at the time of conversion or, at the Company’s election, two shares of the Company’s common stock.

(3) Each convertible partnership unit is exchangeable for an amount of cash approximating the then-current market value of one share of the Company’s common stock at the time of conversion or, at the Company’s election, one share of the Company’s common stock.

See Reporting Definitions and Reconciliations of Non-GAAP Measures

Indebtedness and Ratios

Dollars in thousands

Debt Maturities and Scheduled Principal Repayments (Amortization)

*September 30, 2009*
									Mortgage and								HCP’s Share
	Bank Line				Senior Unsecured				Other Secured			Other		Consolidated			of Unconsolidated
	of Credit		Term Loan		Notes			Rates(1)	Debt(2)		Rates(1)	Debt(3)		Debt			Mortgage Debt(4)			Rates(1)	Total Debt
2009 (3 months)	$	—	$	—	$	—		—%	$	22,813	5.37%	$	99,487	$	122,300		$	1,340		—%	$	123,640
2010	—		—		206,421			5.17	115,046		7.24	—		321,467			5,546			—	327,013
2011	—		200,000		292,265			4.85	140,235		5.08	—		632,500			6,224			—	638,724
2012	—		—		250,000			6.67	63,776		5.43	—		313,776			13,560			4.85	327,336
2013	—		—		550,000			5.83	675,104		2.98	—		1,225,104			44,508			5.75	1,269,612
2014	—		—		87,000			4.88	177,435		5.86	—		264,435			4,364			—	268,799
2015	—		—		400,000			6.64	355,368		5.94	—		755,368			15,070			5.39	770,438
2016	—		—		400,000			6.43	250,142		6.17	—		650,142			50,975			5.84	701,117
2017	—		—		750,000			6.05	3,203		—	—		753,203			201,648			5.67	954,851
2018	—		—		600,000			6.85	3,389		—	—		603,389			—			—	603,389
Thereafter	—		—		—			—	53,577		5.69	—		53,577			—			—	53,577
Subtotal	—		200,000		3,535,686				1,860,088			99,487		5,695,261			343,235				6,038,496

(Discounts) and premiums, net	—		—		(15,109		)		3,316			—		(11,793		)	(537		)		(12,330		)
Total debt	$	—	$	200,000	$	3,520,577			$	1,863,404		$	99,487	$	5,683,468		$	342,698			$	6,026,166

Weighted average interest rate	N/A		2.73%		6.13%				5.10%			N/A		5.66%			5.70%				5.67%

Weighted average maturity in years	1.86		1.86		5.55				4.58			N/A		5.09			7.15				5.21

Ratios

Covenants

September
30,

December
31,

The following is a summary of the financial covenants under the revolving line of credit facility and term loan at September 30, 2009.

2009

2008

Consolidated Debt/Consolidated Gross Assets

42.8%

47.1%

Financial Leverage (Total Debt/Total Gross Assets)

43.4%

47.6%

Line of Credit and Term Loan

Financial Covenants(5)

Requirement

Actual Compliance

Consolidated Secured Debt/Consolidated Gross Assets

14.0%

13.0%

Leverage Ratio

No greater than 60%

45%

Total Secured Debt/Total Gross Assets

15.9%

15.1%

Secured Debt Ratio

No greater than 30%

17%

Unsecured Leverage Ratio

No greater than 65%

42%

Fixed and variable rate ratios:

Fixed Charge Coverage Ratio (12 months)

No less than 1.75x

2.3x

Fixed rate Total Debt

83.9%

85.8%

Variable rate Total Debt

16.1%

14.2%

100.0%

(1) Senior unsecured notes and mortgage and other secured debt weighted-average effective rates relate to maturing amounts.

(2) Mortgage debt attributable to non-controlling interests at September 30, 2009 was $16 million. On October 15, 2009, the Company exercised its election to extend the maturity date of $86 million of mortgage debt from 2010 to 2015. The above table reflects the reclassification of the portion of the mortgage debt that was extended to September 2015.

(3) Other debt represents non-interest bearing Life Care Bonds and occupancy fee deposits at three of the Company’s senior housing facilities, which are payable on-demand, under certain conditions.

(4) Includes pro-rata share of the Company’s Investment Management Platform. At September 30, 2009, 100% of the Company’s Investment Management Platform’s mortgage debt accrues interest at fixed rates.

(5) The revolving line of credit facility and term loan have very similar terms, including financial covenants that are calculated based on the definitions contained within the agreements and may be different than similar terms in the Company’s Consolidated Financial Statements provided herein and as provided in its Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. Compliance with certain of these financial covenants requires the inclusion of the Company’s consolidated amounts and its proportionate share of unconsolidated investees.

See Reporting Definitions and Reconciliations of Non-GAAP Measures

Investments and Dispositions

Dollars and square feet in thousands

*Investments*
	September 30, 2009
	Three Months		Nine Months
Description	Ended		Ended

Acquisition of joint venture interests	$	—	$	14,250

Purchase of participation in HCR ManorCare’s first mortgage debt	$	590,536	$	590,536

Total fundings for development, tenant and capital improvements(1)	$	31,009	$	86,088

Total investments	$	621,545	$	690,874

Dispositions(2)

Property

Sales Price,

Description

Capacity

Count

Segment

Net of Costs

Location

Date

Three Months Ended September 30, 2009:

Charleston, West Virginia

August 31, 2009

68 sq. ft.

MOB

5,765

Marketable securities sold

Various

Hospital

114,865

Total

120,630

Nine Months Ended September 30, 2009:

Property Dispositions

Various

52,031

Marketable security sold

119,665

Total

177,711

(1) Includes capitalized interest for the three and nine months ended September 30, 2009, of $6.6 million and $19.0 million, respectively.

(2) For the nine months ended September 30, 2009, unless otherwise indicated.

(3) Represents the partial sale of a medical office building (condominiums).

See Reporting Definitions and Reconciliations of Non-GAAP Measures

Development

As of September 30, 2009, dollars in thousands

Development Projects in Process

Estimated/

Estimated

Actual

Rent

Rentable

Estimated

Completion

Commencement

Square

Investment

Total

Name of Project

Location

Segment

Date

Feet

to Date(1)

Investment

Development

Oyster Point II (A)

So. San Francisco, CA

Life science

4Q 2008

122

92,285

97,448

Oyster Point II (B)

So. San Francisco, CA

Life science

4Q 2008

1Q 2009

129

97,318

103,293

Oyster Point II (C)

So. San Francisco, CA

Life science

4Q 2008

N/A

50,168

60,660

329

239,771

261,401

Percentage pre-leased

76%

Redevelopment

500/600 Saginaw

Redwood City, CA

Life science

4Q 2009

N/A

34,861

45,813

Modular Labs IV

So. San Francisco, CA

Life science

3Q 2010

N/A

24,382

43,231

Westridge

San Diego, CA

Life science

2Q 2010

N/A

9,601

10,601

Innovation Drive

San Diego, CA

MOB

3Q 2010

N/A

21,142

34,272

Folsom

Sacramento, CA

MOB

3Q 2010

N/A

24,859

31,605

Knoxville

Knoxville, TN

MOB

N/A

5,405

7,969

453

120,250

173,491

Total

782

360,021

434,892

*Land Held for Future Development*
				Estimated
			Gross	Rentable
			Site	Square
	Location	Segment	Acreage	Feet
	So. San Francisco, CA	Life science	30	866
	Carlsbad, CA	Life science	41	697
	Poway, CA	Life science	72	1,261
	Torrey Pines, CA	Life science	6	93
			149	2,917

	Investment-to-date			$	258,746

(1) Investment-to-date includes $74 million of land, $73 million of buildings, $13 million of net intangible assets and $200 million in development costs and construction in progress.

See Reporting Definitions and Reconciliations of Non-GAAP Measures

Owned Portfolio Summary

As of and for the nine months ended September 30, 2009, dollars and square feet in thousands, unless otherwise indicated

Portfolio Summary by Investment Product

Leased	Property					Average			Occupancy	EBITDAR			EBITDARM
Properties	Count	Investment		NOI		Age (Years)	Capacity		%(1)	Amount		CFC	Amount		CFC
Senior housing	233	$	4,097,138	$	252,714	12	25,427	Units	87.2	$	352,239	1.16 x	$	425,247	1.40 x
Life science	94	2,815,660		154,744		15	6,083	Sq. Ft.	91.1	N/A		N/A	N/A		N/A
Medical office	184	2,127,477		133,048		18	12,815	Sq. Ft.	90.7	N/A		N/A	N/A		N/A
Hospital	18	673,109		61,116		23	2,510	Beds	57.6	304,597		4.46 x	338,934		4.96 x
Skilled nursing	48	255,084		28,036		24	5,628	Beds	85.7	57,445		1.59 x	77,252		2.13 x
	577	$	9,968,468	$	629,658	16

Secured			Interest		EBITDA	EBITDAM
Loans	Investment		Income		DSC	DSC
Senior housing	$	16,785	$	880	1.54 x	1.88 x
Hospital	35,308		2,251		3.65 x	4.30 x
Skilled nursing	609,623		8,919		12.59 x	15.56 x
	$	661,716	$	12,050

Mezzanine			Interest		EBITDA	EBITDAM
Loans	Investment		Income		DSC	DSC
Hospital	$	267,550	$	36,796	2.43 x	2.64 x
Skilled nursing	929,942		45,832		3.03 x	3.74 x
	$	1,197,492	$	82,628

Total	$	11,827,676	$	724,336

Portfolio NOI, Adjusted NOI and Interest Income

	Three Months Ended September 30, 2009
	Rental									NOI and
	Revenues		Operating					Interest		Interest		Adjusted
Segment	& DFL Income		Expenses			NOI(2)		Income(3)		Income		NOI
Senior housing	$	81,798	$	(252	)	$	82,050	$	304	$	82,354	$	73,532
Life science	63,232		11,930			51,302		—		51,302		47,413
Medical office	77,690		33,573			44,117		—		44,117		42,646
Hospital	21,483		883			20,600		16,343		36,943		17,645
Skilled nursing	9,800		39			9,761		23,416		33,177		9,413
	$	254,003	$	46,173		$	207,830	$	40,063	$	247,893	$	190,649

	Nine Months Ended September 30, 2009
	Rental								NOI and
	Revenues		Operating				Interest		Interest		Adjusted
Segment	& DFL Income		Expenses		NOI(2)		Income(3)		Income		NOI
Senior housing	$	256,655	$	3,941	$	252,714	$	880	$	253,594	$	221,997
Life science	189,383		34,639		154,744		—		154,744		140,947
Medical office	231,585		98,537		133,048		—		133,048		127,793
Hospital	63,658		2,542		61,116		39,047		100,163		52,780
Skilled nursing	28,189		153		28,036		54,751		82,787		27,463
	$	769,470	$	139,812	$	629,658	$	94,678	$	724,336	$	570,980

(1)	For MOBs and life science facilities, occupancy percentages are presented as of the end of the period reported. For hospitals, skilled nursing facilities and senior housing facilities, occupancy represents the facilities’ average operating occupancy for the trailing twelve months and one quarter in arrears from the period reported.
(2)	NOI attributable to non-controlling interests for the three months and nine months ended September 30, 2009, was $1.3 million and $4.1 million, respectively.
(3)	Includes loan accretion for the three and nine months ended September 30, 2009, of $10.1 million and $17.7 million, respectively.

See Reporting Definitions and Reconciliations of Non-GAAP Measures

Owned Portfolio Concentrations

As of and for the nine months ended September 30, 2009, dollars in thousands

Geographic Diversification(1)

	Total	Senior		Life		Medical				Skilled				% of
Investment by State	Properties	Housing		Science		Office		Hospital		Nursing		Total		Total
CA	132	$	578,155	$	2,725,393	$	217,972	$	128,508	$	14,347	$	3,664,375	36
TX	80	364,401		—		634,219		260,385		2,818		1,261,823		13
FL	50	479,344		—		143,237		62,450		—		685,031		7
CO	24	168,931		—		190,096		9,028		27,610		395,665		4
VA	21	279,059		—		40,370		—		63,100		382,529		4
WA	14	132,609		—		171,517		—		—		304,126		3
NJ	13	280,589		—		—		—		—		280,589		3
UT	33	27,800		90,267		131,840		—		4,935		254,842		2
MD	12	182,087		—		29,001		—		—		211,088		2
IL	12	187,700		—		12,415		—		—		200,115		2
Other	186	1,433,248		—		556,810		248,046		156,452		2,394,556		24
Total	577	$	4,113,923	$	2,815,660	$	2,127,477	$	708,417	$	269,262	$	10,034,739	100

Mezzanine and other secured debt loan investments not allocated to geographic regions												$	1,792,937

NOI and Interest	Total	Senior		Life		Medical				Skilled				% of
Income by State	Properties	Housing		Science		Office		Hospital		Nursing		Total		Total

CA	132	$	36,101	$	147,364	$	8,202	$	11,679	$	1,615	$	204,961	32
TX	80	24,966		—		35,835		20,967		307		82,075		13
FL	50	32,378		—		9,551		5,784		—		47,713		8
CO	24	9,951		—		11,687		1,010		2,270		24,918		4
VA	21	15,181		—		3,260		—		5,142		23,583		4
UT	33	1,201		7,380		9,884		—		520		18,985		3
NJ	13	18,595		—		—		—		—		18,595		3
WA	14	5,675		—		12,207		—		—		17,882		3
TN	23	1,996		—		11,212		—		2,573		15,781		2
MD	12	11,768		—		2,249		—		—		14,017		2
Other	175	95,782		—		28,961		23,927		16,856		165,526		26
Total	577	$	253,594	$	154,744	$	133,048	$	63,367	$	29,283	$	634,036	100

Mezzanine and other secured debt loan interest income not allocated to geographic regions												$	90,300

*Operator/Tenant Diversification*

	Primary	Annualized Revenues
Company	Segment	Amount		%
Sunrise Senior Living	Senior housing	$	110,101	12
Brookdale	Senior housing	60,166		6
HCA	Hospital	58,250		6
HCR ManorCare	Skilled nursing	54,391		6
Emeritus Corporation	Senior housing	43,262		4
Genentech	Life science	34,862		4
Amgen	Life science	25,818		3
Aegis Senior Living	Senior housing	20,579		2
Tenet Healthcare Corporation	Hospital	18,991		2
Cirrus	Hospital	16,235		2
Other		480,398		52
		$	923,053	100

(1) Owned portfolio geographic concentration includes investments, NOI and interest income from investments in our leased properties and certain secured loans and excludes mezzanine loans and other investments in HCR ManorCare as the investment and interest income associated with those assets cannot be allocated to a particular geographic region.

See Reporting Definitions and Reconciliations of Non-GAAP Measures

Owned Same Property Operating Lease Portfolio

As of September 30, 2009, dollars and square feet in thousands

				Senior			Life			Medical						Skilled
	Total			Housing(1)			Science			Office			Hospital			Nursing

Property count	542			202			91			183			18			48
Investment	$	9,168,488		$	3,476,777		$	2,654,071		$	2,109,447		$	673,109		$	255,084
Percent of operating lease portfolio (by investment)	98.0%			99.7%			94.3%			99.2%			100%			100%
Capacity				22,185 Units			5,854 Sq. Ft.			12,697 Sq. Ft.			2,510 Beds			5,628 Beds

Year-Over-Year Three-Month SPP

Occupancy(2):
September 30, 2009				85.7%			90.8%			90.9%			57.5%			85.2%
September 30, 2008				88.2%			89.8%			91.1%			61.5%			85.9%
% change				(2.5%		)	1.0%			(0.2%		)	(4.0%		)	(0.7%		)

NOI % change	(4.2%		)	1.1%			(21.4%		)	7.1%			1.5%			6.3%

Adjusted NOI:
September 30, 2009	$	178,087		$	61,895		$	45,366		$	43,760		$	17,650		$	9,416
September 30, 2008	$	172,351		$	64,580		$	38,351		$	40,372		$	19,972		$	9,076
Adjusted NOI % change	3.3%			(4.2%		)	18.3%			8.4%			(11.6%		)	3.7%

Sequential Three-Month SPP

Occupancy(2):
September 30, 2009				85.7%			90.8%			90.9%			57.5%			85.2%
June 30, 2009				86.6%			90.6%			90.9%			61.3%			85.8%
% change				(0.9%		)	0.2%			—%			(3.8%		)	(0.6%		)

NOI % change	(6.1%		)	(13.0%		)	(0.7%		)	(1.0%		)	(8.5%		)	3.5%

Adjusted NOI:
September 30, 2009	$	178,087		$	61,895		$	45,366		$	43,760		$	17,650		$	9,416
June 30, 2009	$	182,214		$	65,849		$	44,819		$	43,479		$	18,867		$	9,200
Adjusted NOI % change	(2.3%		)	(6.0%		)	1.2%			0.6%			(6.5%		)	2.3%

Year-Over-Year Nine-Month SPP

NOI % change	3.0%			5.3%			(1.2%		)	5.2%			0.2%			4.2%

Adjusted NOI:
September 30, 2009	$	534,353		$	188,322		$	134,253		$	131,515		$	52,785		$	27,478
September 30, 2008	$	515,878		$	192,421		$	112,600		$	124,296		$	59,981		$	26,580
Adjusted NOI % change	3.6%			(2.1%		)	19.2%			5.8%			(12.0%		)	3.4%

(1) Excludes 30 properties which are classified as direct financing leases.

(2) Occupancy percentages for senior housing, hospital and skilled nursing are calculated based on the average three month occupancy one quarter in arrears from the period presented. Occupancy percentages for life science and medical office are as of the end of the period presented.

See Reporting Definitions and Reconciliations of Non-GAAP Measures

Owned Portfolio Lease Expirations and Debt Investment Maturities

At September 30, 2009, dollars and square feet in thousands

	Expiration Year
Segment	Total		2009(1)		2010		2011		2012		2013		2014		2015		2016		2017		2018		Thereafter

*Lease Expirations*

Senior housing:
Properties	233		—		4		3		4		6		8		2		24		26		50		106
Annualized revenues	$	309,317	$	—	$	664	$	785	$	1,075	$	24,405	$	15,600	$	3,174	$	26,985	$	31,678	$	82,362	$	122,589

Life science:
Square feet	5,545		127		280		459		191		381		377		549		263		733		411		1,774
Annualized revenues	$	197,517	$	4,096	$	7,257	$	14,914	$	4,884	$	11,266	$	9,609	$	17,361	$	7,988	$	24,273	$	23,492	$	72,377

Medical office:
Square feet	11,628		690		2,010		1,411		1,602		1,272		1,128		626		542		482		709		1,156
Annualized revenues	$	234,811	$	15,189	$	41,973	$	31,017	$	32,886	$	23,653	$	25,583	$	12,598	$	10,275	$	10,703	$	13,380	$	17,554

Hospital:
Properties	18		—		1		—		—		1		3		—		—		2		—		11
Annualized revenues	$	54,245	$	—	$	2,973	$	—	$	—	$	2,424	$	16,018	$	—	$	—	$	4,480	$	—	$	28,350

Skilled nursing:
Properties	48		—		—		1		—		10		12		5		5		9		4		2
Annualized revenues	$	36,784	$	—	$	—	$	292	$	—	$	7,090	$	8,079	$	3,263	$	4,898	$	8,072	$	2,590	$	2,500

Total annualized revenues	$	832,674	$	19,285	$	52,867	$	47,008	$	38,845	$	68,838	$	74,889	$	36,396	$	50,146	$	79,206	$	121,824	$	243,370

*Debt Investment Maturities*

Senior housing:
Annualized interest	$	1,107	$	—	$	306	$	308	$	—	$	493	$	—	$	—	$	—	$	—	$	—	$	—

Hospital:
Annualized interest	$	33,183	$	—	$	11,408	$	—	$	—	$	—	$	—	$	—	$	19,925	$	1,850	$	—	$	—

Skilled nursing:
Annualized interest	$	56,089	$	—	$	1,457	$	—	$	—	$	54,391	$	241	$	—	$	—	$	—	$	—	$	—

Total annualized interest	$	90,379	$	—	$	13,171	$	308	$	—	$	54,884	$	241	$	—	$	19,925	$	1,850	$	—	$	—

(1) Includes month-to-month and holdover leases.

See Reporting Definitions and Reconciliations of Non-GAAP Measures

Owned Senior Housing Portfolio

As of and for the nine months ended September 30, 2009, dollars in thousands

Investments

Operating	Property					Average Age			EBITDAR			EBITDARM
Leases	Count	Investment		NOI		(Years)	Units	Occupancy %	Amount		CFC	Amount		CFC
Assisted living	166	$	2,269,054	$	135,350	11	14,178	86.1	$	190,393	1.16 x	$	231,556	1.41 x
Independent living	29	708,952		43,573		16	4,880	86.6	62,520		1.05 x	71,839		1.21 x
CCRCs	8	510,688		34,537		21	3,228	91.6	56,243		1.33 x	67,365		1.59 x
	203	$	3,488,694	$	213,460	12	22,286	87.0	$	309,156	1.16 x	$	370,760	1.39 x

Direct						Average
Financing	Property					Age			EBITDAR			EBITDARM
Leases	Count	Investment		NOI		(Years)	Units	Occupancy %	Amount		CFC	Amount		CFC
Assisted living	27	$	570,450	$	36,332	12	3,141	88.2	$	43,083	1.13 x	$	54,487	1.43 x
CCRCs(1)	3	37,994		2,922
	30	$	608,444	$	39,254

Leased Properties	233	$	4,097,138	$	252,714	12	25,427	87.2	$	352,239	1.16 x	$	425,247	1.40 x

				Interest					EBITDA			EBITDARM
Secured Loans		Investment		Income					Amount		DSC	Amount		DSC
Assisted living		$	5,092	$	453				$	208	1.39 x	$	287	1.92 x
Independent living		2,930		233					703		1.60 x	821		1.86 x
CCRC(2)		8,763		194					—		—	—		—
		$	16,785	$	880				$	911	1.54 x	$	1,108	1.88 x

Total		$	4,113,923	$	253,594

Operator Concentration(3)

						NOI and
	Properties		Investment			Interest Income					EBITDA(R)	EBITDA(R)M
Operator	Count	% Pooled	Amount		%	Amount		%	Units	Occupancy %	CFC/DSC	CFC/DSC
Sunrise Senior Living(4)(5)	75	99	$	1,735,334	42	$	91,429	36	8,808	88.6	1.21 x	1.50 x
Brookdale	24	92	675,804		16	51,427		20	4,817	90.1	1.31 x	1.54 x
Emeritus Corporation	37	86	537,335		13	41,933		17	3,788	88.1	1.20 x	1.43 x
Aegis Senior Living	12	83	258,008		6	16,913		7	965	87.9	1.01 x	1.17 x
Harbor Retirement Associates	13	92	189,879		5	10,077		4	1,260	76.2	1.06 x	1.35 x
Capital Senior Living	15	73	176,517		4	11,202		4	1,530	80.7	1.05 x	1.20 x
Horizon Bay Senior Communities	11	91	157,203		4	6,770		3	1,278	94.5	1.48 x	1.71 x
Other(5)	46	61	383,843		10	23,843		9	2,981	81.7	0.89 x	1.08 x
	233	85	$	4,113,923	100	$	253,594	100	25,427	87.1	1.16 x	1.40 x

(1) Represents ground leases on CCRCs.

(2) Represents a secured construction loan on one CCRC included in the DFL portfolio.

(3) Property count and units are presented for leased properties, excludes secured loans. Occupancy percentages are presented in the aggregate for leased properties and secured loans.

(4) Sunrise Senior Living percentage pooled consists of 75 assets under 11 separate pools.

(5) Pro forma for transition of 14 of 15 assets (one was sold on October 1, 2009) formally operated by Sunrise Senior Living to three new operators. Property count, investment NOI and units are disclosed under new operators while occupancy and CFC are disclosed under “other”.

See Reporting Definitions and Reconciliations of Non-GAAP Measures

Owned Senior Housing Portfolio

Dollars in thousands

Portfolio Trends

	Same Property Operating Lease Portfolio															Total Portfolio
	As of and for the Quarter Ended									As of and for the YTD Period Ended						As of and for the Twelve Months Ended
	09/30/09			06/30/09			09/30/08			09/30/09			09/30/08			09/30/09		06/30/09(1)		09/30/08(1)

Property count	202			202			202			202			202			233		234		237
Investment	$	3,476,777		$	3,474,162		$	3,476,541		$	3,476,777		$	3,476,541		$	4,113,923	$	4,135,923	$	4,151,621
Units	22,185			22,194			22,152			22,185			22,152			25,427		25,497		25,663
3-Month Occupancy %(2)	85.7			86.6			88.2			85.7			88.2			85.7		86.5		88.6
12-Month Occupancy %(2)	87.0			87.7			89.7			87.0			89.7			87.1		87.8		89.7
EBITDA(R)(3)	$	308,034		$	302,980		$	308,580		$	308,034		$	308,580		$	353,150	$	347,299	$	353,040
EBITDA(R) CFC/DSC(3)	1.16 x			1.13 x			1.17 x			1.16 x			1.17 x			1.16 x		1.13 x		1.16 x
EBITDA(R)M(3)	$	369,472		$	364,414		$	369,932		$	369,472		$	369,932		$	426,355	$	420,306	$	427,826
EBITDA(R)M CFC/DSC(3)	1.39 x			1.36 x			1.41 x			1.39 x			1.41 x			1.40 x		1.37 x		1.40 x
NOI:
Rental revenues	$	68,319		$	79,445		$	70,274		$	216,488		$	209,791
Operating expenses(4)	9			(935		)	(2,672		)	(3,580		)	(7,545		)
	$	68,328		$	78,510		$	67,602		$	212,908		$	202,246
Adjusted NOI:
Straight-line rents	(5,691		)	(6,081		)	(3,059		)	(17,174		)	(9,937		)
Above (below) market lease intangibles, net	(742		)	(6,580		)	37			(7,412		)	112
	$	61,895		$	65,849		$	64,580		$	188,322		$	192,421

(1) Amounts reflected conform to current presentation, without giving effect to discontinued operations.

(2) Occupancy percentages are one quarter in arrears from the period presented. Total portfolio occupancy percentages are presented in the aggregate for leased properties and secured loans.

(3) EBITDA(R) and EBITDA(R)M amounts and coverages are based on the trailing twelve-month period presented and are one quarter in arrears from the period presented.

(4) Excludes certain non-property specific operating expenses allocated to each segment.

See Reporting Definitions and Reconciliations of Non-GAAP Measures

Owned Life Science Portfolio

As of and for the nine months ended September 30, 2009, unless otherwise indicated, dollars and square feet in thousands

Investments

	Property					Average	Square	Occupancy
Leased Properties	Count	Investment		NOI(1)		Age (Years)	Feet	%(2)
San Francisco	70	$	2,237,878	$	121,744	16	4,171	90.5
San Diego	15	487,515		25,620		18	1,328	90.5
Utah	9	90,267		7,380		10	584	97.0
	94	$	2,815,660	$	154,744	15	6,083	91.1

Tenant Concentration

	Annualized Revenues			Square Feet
Tenant	Amount		%	Amount	%
Genentech	$	34,862	18	794	14
Amgen	25,818		13	433	8
Takeda	15,939		8	324	6
Rigel Pharmaceuticals	14,438		7	147	3
Exelixis, Inc.	12,502		6	295	5
ARUP	5,088		3	324	6
Alexza Pharmaceuticals, Inc.	4,916		2	107	2
Sequenom	4,583		2	83	1
Myriad Genetics	4,500		2	225	4
NuVasive, Inc.	4,362		2	145	3
Other	70,509		37	2,668	48
	$	197,517	100	5,545	100

Portfolio Trends

	Same Property Operating Lease Portfolio															Total Portfolio
										As of and for the
	As of and for the Quarter Ended									YTD Period Ended						At the Period Ended
	09/30/09			06/30/09			09/30/08			09/30/09			09/30/08			09/30/09		06/30/09(3)		09/30/08(3)

Property count	91			91			91			91			91			94		96		99
Investment	$	2,654,071		$	2,647,950		$	2,628,506		$	2,654,071		$	2,628,506		$	2,815,660	$	2,819,642	$	2,822,043
Square feet	5,854			5,854			5,841			5,854			5,841			6,083		6,137		6,232
Occupancy %(2)	90.8			90.6			89.8			90.8			89.8			91.1		91.1		89.1
NOI:
Rental revenues	$	58,883		$	58,853		$	70,027		$	176,513		$	175,531
Operating expenses(4)	(10,773		)	(10,392		)	(8,790		)	(31,518		)	(28,714		)
	$	48,110		$	48,461		$	61,237		$	144,995		$	146,817
Adjusted NOI:
Straight-line rents	(3,211		)	(3,317		)	(4,250		)	(9,697		)	(13,560		)
Below market lease intangibles, net	467			(325		)	(586		)	(1,045		)	(2,607		)
Lease termination fees	—			—			(18,050		)	—			(18,050		)
	$	45,366		$	44,819		$	38,351		$	134,253		$	112,600

(1) Excludes $3.2 million of rent, $2.8 million from San Francisco and $0.4 million from San Diego, collected on leases where the respective tenant improvement build outs are not complete (deferred rent). These leases are included in occupied square feet and annualized revenues when determining occupancy and tenant concentration.

(2) Occupancy percentages are presented as of the end of the period reported.

(3) Amounts reflected conform to current presentation, without giving effect to discontinued operations.

(4) Excludes certain non-property specific operating expenses allocated to each segment.

See Reporting Definitions and Reconciliations of Non-GAAP Measures

Owned Life Science Portfolio

Dollars and square feet in thousands, except dollars per square foot

Selected Lease Expirations Data (next 3 years):

	Total					San Francisco			San Diego			Utah
	Square Feet		Annualized Revenues			Square	Annualized		Square	Annualized		Square	Annualized
Year	Amount	%	Amount		%	Feet	Revenues		Feet	Revenues		Feet	Revenues
2009 (3 months)(1)	127	2	$	4,096	2	57	$	457	70	$	3,639	—	$	—
2010	280	5	7,257		4	138	3,986		142	3,271		—	—
2011	459	8	14,914		8	429	14,315		30	599		—	—
2012	191	3	4,884		2	120	3,104		53	1,498		18	282
Thereafter	4,488	82	166,366		84	3,032	129,545		907	27,234		549		9,587
	5,545	100	$	197,517	100	3,776	$	151,407	1,202	$	36,241	567	$	9,869

Leasing Activity

			Annualized				Tenant		Leasing		Average
	Leased		Base Rent		%		Improvements		Costs Per		Lease	Retention
	Square		Per		Change		Per Square		Square		Term	Rate
	Feet		Square Foot		In Rents		Foot		Foot		(Months)	YTD
Leased Square Feet as of December 31, 2008	5,579		$	33.79
Expirations	(159	)	20.43
Renewals, amendments and extensions	126		16.68		(7.2	)	$	—	$	2.54	109	79.7
New leases and expansions	87		33.70				68.95		12.28		79
Terminations	(34	)	13.92

Leased Square Feet as of March 31, 2009	5,599		$	34.80
Expirations	(317	)	28.44
Renewals, amendments and extensions	310		24.56		(13.6	)	1.96		6.70		54	91.9
New leases and expansions	39		17.70				—		—		2
Terminations	(42	)	18.91

Leased Square Feet as of June 30, 2009	5,589		$	35.28
Redevelopments	(54	)	15.92
Expirations	(75	)	22.10
Renewals, amendments and extensions	48		22.94		18.4		—		5.46		45	88.0
New leases and expansions	78		19.75				71.03		0.33		73
Terminations	(41	)	38.19

Leased Square Feet as of September 30, 2009	5,545		$	35.62

(1) Includes month-to-month and holdover leases.

See Reporting Definitions and Reconciliations of Non-GAAP Measures

Owned Medical Office Portfolio

As of and for the nine months ended September 30, 2009, dollars and square feet in thousands

Investments

	Property					Average		Occupancy
Leased Properties	Count	Investment		NOI		Age (Years)	Square Feet	%
On-Campus	141	$	1,718,688	$	104,909	18	10,698	90.4
Off-Campus	43	408,789		28,139		17	2,117	92.6
	184	$	2,127,477	$	133,048	18	12,815	90.7

Portfolio Trends

	Same Property Operating Lease Portfolio															Total Portfolio
	As of and for the Quarter Ended									As of and for the YTD Period Ended						At the Period Ended
	09/30/09			06/30/09			09/30/08			09/30/09			09/30/08			09/30/09		06/30/09(1)		09/30/08(1)

Property count	183			183			183			183			183			184		186		190
Investment	$	2,109,447		$	2,103,112		$	2,085,221		$	2,109,447		$	2,085,221		$	2,127,477	$	2,124,933	$	2,162,655
Square feet	12,697			12,696			12,701			12,697			12,701			12,815		12,882		13,145
Occupancy %(2)	90.9			90.9			91.1			90.9			91.1			90.7		90.7		90.2
NOI:
Rental revenues	$	77,262		$	76,005		$	75,228		$	229,678		$	223,718
Operating expenses(3)	(32,049		)	(30,338		)	(33,018		)	(92,984		)	(93,742		)
	$	45,213		$	45,667		$	42,210		$	136,694		$	129,976
Adjusted NOI:
Straight-line rents	(443		)	(663		)	(1,074		)	(1,832		)	(3,477		)
Below market lease intangibles, net	(846		)	(811		)	(724		)	(2,408		)	(2,163		)
Lease terminations	(164		)	(714		)	(40		)	(939		)	(40		)
	$	43,760		$	43,479		$	40,372		$	131,515		$	124,296

(1) Amounts reflected conform to current presentation, without giving effect to discontinued operations.

(2) Occupancy percentages are presented as of the end of the period reported.

(3) Excludes certain non-property specific operating expenses allocated to each segment.

See Reporting Definitions and Reconciliations of Non-GAAP Measures

Owned Medical Office Portfolio

Square feet in thousands

Leasing Activity

			Annualized			Tenant
	Leased Square		Base Rent Per		% Change	Improvements Per Square		Leasing Costs Per		Average Lease Term	Retention Rate
	Feet		Square Foot		In Rents	Foot		Square Foot		(Months)	YTD

Leased Square Feet as of December 31, 2008	11,699		$	20.86
Dispositions	(36	)	24.90
Expirations	(468	)	21.02
Renewals, amendments and extensions	369		19.77		1.2	$	7.70	$	1.73	38	78.7
New leases	162		19.19			20.64		3.42		49
Terminations	(35	)	21.37

Leased Square Feet as of March 31, 2009	11,691		$	20.99
Dispositions	(38	)	14.77
Expirations	(686	)	18.74
Renewals, amendments and extensions	542		18.84		15.6	2.62		0.89		35	78.8
New leases	268		17.96			10.84		1.76		53
Terminations	(89	)	19.37

Leased Square Feet as of June 30, 2009	11,688		$	21.21
Dispositions	(62	)	19.07
Expirations	(288	)	21.88
Renewals, amendments and extensions	227		21.96		1.3	3.34		1.04		34	78.8
New leases	126		19.59			18.51		4.56		63
Terminations	(63	)	22.25

Leased Square Feet as of September 30, 2009	11,628		$	21.27

See Reporting Definitions and Reconciliations of Non-GAAP Measures

Owned Hospital Portfolio

As of and for the nine months ended September 30, 2009, dollars in thousands, unless otherwise indicated

Investments

Leased	Property					Average Age		Occupancy	EBITDAR(1)			EBITDARM(1)
Properties	Count	Investment		NOI		(Years)	Beds	%(1)	Amount		CFC	Amount		CFC
Acute care	6	$	478,806	$	44,485	31	1,742	57.6	$	242,902	5.06 x	$	267,217	5.57 x
Rehab	7	95,409		6,761		19	487	60.2	23,719		2.76 x	27,012		3.14 x
Specialty	2	63,689		3,874		26	37	N/A	25,549		5.28 x	28,541		5.89 x
LTACH	3	35,205		5,996		15	244	53.4	12,427		1.81 x	16,164		2.36 x
	18	$	673,109	$	61,116	23	2,510	57.6	$	304,597	4.46 x	$	338,934	4.96 x

Secured

Interest

EBITDA(1)

EBITDAM(1)

Loans

Investment

Income

Amount

DSC

Amount

DSC

Acute care

35,308

2,251

10,956

3.65 x

12,900

4.30 x

Mezzanine			Interest		EBITDA			EBITDAM
Loans	Investment		Income		Amount		DSC	Amount		DSC
Acute care	$	182,728	$	26,274	$	60,525	2.61 x	$	67,389	2.90 x
Specialty	84,822		10,522		18,356		1.98 x	18,356		1.98 x
	$	267,550	$	36,796	$	78,881	2.43 x	$	85,745	2.64 x

Total	$	975,967	$	100,163

Operator Concentration(2)

						NOI and
	Properties		Investment			Interest Income
Operator(1)	Count	% Pooled	Amount		%	Amount		%	Beds
HCA	1	—	$	349,102	36	$	41,166	42	645
Tenet Healthcare Corp	4	—	223,633		23	20,384		20	921
Cirrus Health	2	—	130,211		13	13,008		13	37
HealthSouth	5	80	55,981		6	6,462		6	372
Other	6	50	217,040		22	19,143		19	535
	18	39	$	975,967	100	$	100,163	100	2,510

(1) Certain operators in HCP’s hospital portfolio are not required under their respective leases to provide operational data.

(2) Property count and beds are presented for leased properties, excludes secured and mezzanine loans.

See Reporting Definitions and Reconciliations of Non-GAAP Measures

Owned Hospital Portfolio

Dollars in thousands

Portfolio Trends

	Same Property Operating Lease Portfolio															Total Portfolio
										As of and for the						As of and for the Twelve Months
	As of and for the Quarter Ended									YTD Period Ended						Ended
	09/30/09			06/30/09			09/30/08			09/30/09			09/30/08			09/30/09		06/30/09(1)		09/30/08

Property count	18			18			18			18			18			18		18		21
Investment	$	673,109		$	672,899		$	672,742		$	673,109		$	672,742		$	975,967	$	1,074,888	$	1,082,931
Beds	2,510			2,510			2,463			2,510			2,463			2,510		2,510		2,763
3-Month Occupancy %(2)	57.5			61.3			61.5			57.5			61.5			57.3		60.8		61.3
12-Month Occupancy %(2)	57.6			58.5			60.6			57.6			60.6			57.5		58.5		56.0
EBITDAR(3)	$	304,597		$	299,403		$	289,882		$	304,597		$	289,882
EBITDAR CFC(3)	4.46 x			4.38 x			4.36 x			4.46 x			4.36 x
EBITDARM(3)	$	338,934		$	333,457		$	324,042		$	338,934		$	324,042
EBITDARM CFC(3)	4.96 x			4.87 x			4.88 x			4.96 x			4.88 x
NOI:
Rental revenues	$	21,483		$	23,363		$	21,086		$	63,658		$	63,597
Operating expenses(4)	(878		)	(848		)	(779		)	(2,537		)	(2,580		)
	$	20,605		$	22,515		$	20,307		$	61,121		$	61,017

Adjusted NOI:
Straight-line rents	(2,737		)	(3,430		)	(117		)	(7,683		)	(383		)
Below market lease intangibles, net	(218		)	(218		)	(218		)	(653		)	(653		)
	$	17,650		$	18,867		$	19,972		$	52,785		$	59,981

(1) Amounts reflected conform to current presentation, without giving effect to discontinued operations.

(2) Occupancy percentages are one quarter in arrears from the period presented. Total portfolio occupancy percentages are presented in the aggregate for leased properties and secured loans.

(3) EBITDAR and EBITDARM amounts and coverages are based on the trailing twelve-month period one quarter in arrears from the period presented.

(4) Excludes certain non-property specific operating expenses allocated to each segment.

See Reporting Definitions and Reconciliations of Non-GAAP Measures

Owned Skilled Nursing Portfolio

As of and for the nine months ended September 30, 2009, dollars in thousands, unless otherwise indicated

Investments

Leased

Property

Average
Age

EBITDAR

EBITDARM

Properties(1)

Count

Investment

NOI

(Years)

Beds

Occupancy %

Amount

CFC

Amount

CFC

Skilled nursing

255,084

28,036

5,628

85.7

57,445

1.59 x

77,252

2.13 x

Secured			Interest		EBITDA		EBITDAM
Loans	Investment		Income		Amount	DSC	Amount	DSC
HCR ManorCare(2)	$	595,445	$	7,672	$ 562,514	12.70 x	$ 695,231	15.69 x
Other	14,178		1,247		5,942	2.45 x	7,338	3.03 x
	$	609,623	$	8,919	$ 568,456	12.59 x	$ 702,569	15.56 x

Mezzanine			Interest		EBITDA			EBITDAM
Loans	Investment		Income		Amount		DSC	Amount		DSC
HCR ManorCare(3)	$	929,942	$	45,832	$	562,514	3.03 x	$	695,231	3.74 x

Total	$	1,794,649	$	82,787

Operator Concentration(4)

						NOI and
	Properties		Investment			Interest Income
Operator	Count	% Pooled	Amount		%	Amount		%	Beds	Occupancy %	EBITDA(R) CFC/DSC	EBITDAM(R) CFC/DSC
HCR ManorCare	—	—	$	1,525,387	85	$	53,504	65	N/A	N/A	3.03 x	3.74 x
Formation Capital	9	100	63,100		5	5,142		7	934	94.3	2.06 x	2.57 x
Covenant Care	12	100	62,318		3	7,255		9	1,373	81.2	1.56 x	2.11 x
Kindred	9	100	38,117		2	6,115		7	1,288	86.8	1.33 x	1.97 x
Sun HealthCare Corp.	4	100	38,055		2	3,329		4	479	82.0	2.30 x	2.85 x
Trilogy Health Services	5	100	33,351		2	3,958		5	546	90.7	1.42 x	1.80 x
Other	9	56	34,321		1	3,484		3	1,008	84.2	1.25 x	1.88 x
	48	92	$	1,794,649	100	$	82,787	100	5,628

(1) The Company’s skilled nursing leased properties have the following revenue mix: Private-pay (26%), Medicare (35%) and Medicaid (39%).

(2) Represents the $720 million participation in first mortgage debt of HCR ManorCare with a carrying value of $595 million. This interest-only participation bears interest on the face amount at LIBOR plus 1.25% and represents 45% of the $1.6 billion most senior tranche of HCR ManorCare’s mortgage debt. The mortgage matures in January 2012, with a one-year extension, subject to certain performance conditions. At August 3, 2009, the mortgage loan is secured by a first lien on 331 HCR ManorCare facilities located in 30 states.

(3) Represents mezzanine loans having an aggregate face value of $1.0 billion and a carrying value of $930 million. These interest-only loans bear interest on their face amounts at LIBOR plus 4.0%. These loans mature in January 2013 and are mandatorily pre-payable in January 2012, unless the borrower satisfies certain performance conditions. At August 3, 2009, the loans are secured by an indirect pledge of equity ownership in 331 HCR ManorCare facilities located in 30 states and are subordinate to other debt of approximately $3.6 billion.

(4) Property count and beds are presented for leased properties, excludes secured and mezzanine loans. Occupancy percentages are presented in the aggregate for leased properties and other secured loans, excluding the Company’s interest in HCR ManorCare.

See Reporting Definitions and Reconciliations of Non-GAAP Measures

Owned Skilled Nursing Portfolio

Dollars in thousands, unless otherwise indicated

Portfolio Trends

	Same Property Operating Lease Portfolio															Total Portfolio
	As of and for the Quarter Ended									As of and for the YTD Period Ended						As of and for the Twelve Months Ended
	09/30/09			06/30/09			09/30/08			09/30/09			09/30/08			09/30/09		06/30/09(1)		09/30/08(1)

Property count	48			48			48			48			48			48		48		48
Investment	$	255,084		$	255,084		$	254,658		$	255,084		$	254,658		$	1,794,649	$	1,195,794	$	1,172,497
Beds	5,628			5,628			5,658			5,628			5,658			5,628		5,628		5,681
3-Month Occupancy %(2)	85.2			85.8			85.9			85.2			85.9			85.2		85.6		85.7
12-Month Occupancy%(2)	85.7			85.9			86.2			85.7			86.2			85.5		85.7		85.9
EBITDAR(3)	$	57,445		$	56,802		$	50,294		$	57,445		$	50,294
EBITAR CFC(3)	1.59 x			1.58 x			1.46 x			1.59 x			1.46 x
EBITDARM(3)	$	77,252		$	76,451		$	69,691		$	77,252		$	69,691
EBITDARM CFC(3)	2.13 x			2.13 x			2.02 x			2.13 x			2.02 x
NOI:
Rental revenues	$	9,800		$	9,487		$	9,150		$	28,189		$	26,925
Operating expenses(4)	(36		)	(52		)	35			(138		)	8
	$	9,764		$	9,435		$	9,185		$	28,051		$	26,933
Adjusted NOI:
Straight-line rents	(348		)	(235		)	(109		)	(573		)	$	(406	)
Above market lease intangibles, net	—			—			—			—			53
	$	9,416		$	9,200		$	9,076		$	27,478		$	26,580

HCR Properties, LLC (HCR ManorCare “PropCo”) Information

Portfolio Summary(5)

Non-

Occupancy

Medicaid

Property Count

Beds

Revenue(6)

EBITDA(3)

EBITDAM(3)

331

41,654

88.4

72%

562,514

695,231

Debt Capital Structure (dollars in billions)

12-Month

3-Month

EBITDA DSC

EBITDA

EBITDAM

EBITDA

at Interest-

Total

HCP Interest(7)

DSC

Rate Cap

First mortgage

1.6

0.7

12.70 x

15.69 x

22.25 x

6.57 x

Other mortgage

1.4

—

Mezzanine securities

1.6

1.0

3.03 x

3.74 x

4.39 x

1.85 x

4.6

1.7

3.03 x

3.74 x

4.39 x

1.85 x

Interest-Rate Caps (dollars in billions)

Maturity

Description

Notional

Strike Rate

Date

Index

Interest-rate cap

2.5

3.00%

January 2012

1-month LIBOR

Interest-rate cap

2.1

5.25%

January 2012

1-month LIBOR

(1) Amounts reflected conform to current presentation, without giving effect to discontinued operations.

(2) Occupancy percentages are one quarter in arrears from the period presented. Total portfolio occupancy percentages are presented in the aggregate for leased properties and other secured loans, excluding the Company’s interest in HCR ManorCare.

(3) EBITDA(R) and EBITDA(R)M amounts and coverages are based on the trailing twelve-month period one quarter in arrears from the period presented.

(4) Excludes certain non-property specific operating expenses allocated to each segment.

(5) PropCo leases its properties to HCR III HealthCare, LLC (“OpCo”) under a 12-year triple net lease, which commenced in December 2007 and includes one 10-year extension option. Initial year base rent to OpCo is $379.5 million and escalates at 3% per annum.

(6) Private-pay and Medicare revenues as a percentage of total revenues are 32% and 40%, respectively.

(7) HCP’s investment participation in first mortgage is pari passu of the remaining first mortgage. HCP’s investments in mezzanine securities are junior to the remaining mezzanine securities.

See Reporting Definitions and Reconciliations of Non-GAAP Measures

Investment Management Platform

As of and for the nine months ended September 30, 2009, dollars in thousands

								HCP’s
								Investment
Unconsolidated		Date	HCP’s	Joint		HCP’s Net		Management		Initial
Institutional	Primary	Established/	Ownership	Venture’s		Equity		Fee		Term
Joint Ventures	Segment	Acquired	Percentage	Investment		Investment(1)		Income		(in years)

HCP Ventures II	Senior housing	January-07	35%	$	1,097,267	$	139,064	$	2,224	Indefinite
HCP Ventures III	Medical office	October-06	30%(2)	141,410		11,092		331		10
HCP Ventures IV	Medical office	April-07	20%	657,622		41,284		1,576		10
HCP Life Science	Life science	August-07	50%-63%	80,841		63,991		2		97-98
				$	1,977,140	$	255,431	$	4,133

*Balance Sheets(3)***
	September 30, 2009									December 31, 2008
	Senior Housing			MOB			Life Science			Senior Housing			MOB			Life Science
ASSETS
Real estate:
Buildings and improvements	$	935,211		$	658,409		$	43,137		$	935,211		$	653,588		$	43,124
Development costs and CIP	—			1,197			1,011			—			2,966			513
Land	108,907			67,820			8,271			108,907			67,776			8,271
Accumulated depreciation and amortization	(80,191		)	(68,561		)	(29,282		)	(60,143		)	(47,596		)	(26,398		)
Net real estate	963,927			658,865			23,137			983,975			676,734			25,510

Cash and cash equivalents and restricted cash	10,708			16,080			1,878			9,142			12,235			1,269
Other assets, net	47,931			17,560			1,937			39,733			17,371			3,145
Intangible assets, net	40,817			53,613			—			44,033			62,492			—
Total assets	$	1,063,383		$	746,118		$	26,952		$	1,076,883		$	768,832		$	29,924

LIABILITIES AND MEMBERS’ CAPITAL
Mortgage debt	$	661,918		$	469,806		$	13,706		$	668,938		$	470,178		$	15,844
Intangible liabilities, net	1,095			14,820			—			1,176			16,388			—
Accounts payable, accrued liabilities and deferred revenue	8,122			17,923			962			7,662			15,797			1,093
Total liabilities	671,135			502,549			14,668			677,776			502,363			16,937
HCP’s capital	134,533			40,621			6,190			136,927			45,284			6,755
Partners’ capital	257,715			202,948			6,094			262,180			221,185			6,232
Total liabilities and members’ capital	$	1,063,383		$	746,118		$	26,952		$	1,076,883		$	768,832		$	29,924

(1) The carrying value of investments in unconsolidated joint ventures is based on the amount we paid to purchase the joint venture interest, which is different from our capital balance as reflected at the joint venture level as the records of the unconsolidated joint venture are reflected at their historical cost. These differences in basis are generally amortized over the lives of the related assets and liabilities and included in the Company’s share of equity in earnings of the respective joint venture.

(2) The Company owns an 85% interest in HCP Birmingham Portfolio LLC, which owns a 30% interest in HCP Ventures III.

(3) Financial information is combined by primary segment of each joint venture (i.e., HCP Ventures III and HCP Ventures IV are combined under the MOB columns).

See Reporting Definitions and Reconciliations of Non-GAAP Measures

Investment Management Platform

In thousands

*Statements of Operations and Funds From Operations(1)***
	Three Months Ended September 30, 2009									Three Months Ended September 30, 2008
	Senior Housing			MOB			Life Science			Senior Housing			MOB			Life Science
Revenues:
Rental and related revenues	$	20,852		$	17,864		$	1,786		$	20,832		$	18,418		$	2,092
Tenant recoveries	—			4,531			345			—			4,045			177
Total revenues	20,852			22,395			2,131			20,832			22,463			2,269

Costs and expenses:
Depreciation and amortization	7,031			9,525			439			7,142			7,650			571
Operating	7			8,563			376			—			8,543			163
General and administrative	1,261			1,072			84			1,685			1,155			2
Total costs and expenses	8,299			19,160			899			8,827			17,348			736

Other income (expense):
Interest and other income, net	—			(56		)	—			16			74			—
Interest expense	(9,757		)	(6,993		)	(253		)	(9,992		)	(7,003		)	(303		)
Net income (loss)	$	2,796		$	(3,814	)	$	979		$	2,029		$	(1,814	)	$	1,230

Depreciation and amortization of real estate and in-place lease intangibles	7,031			9,525			439			7,142			7,650			571
FFO	$	9,827		$	5,711		$	1,418		$	9,171		$	5,836		$	1,801

HCP’s pro rata share of FFO	$	3,439		$	1,267		$	790		$	3,210		$	1,300		$	1,033

Selected supplemental cash flow information:
Amortization of above (below) market lease intangibles, net	$	793		$	105		$	—		$	714		$	139		$	—
Amortization of debt premiums, discounts and issuance costs, net	171			190			7			265			190			7
Straight-line rents	(2,515		)	(746		)	(7		)	(3,128		)	(1,303		)	58
Lease commissions and tenant and capital improvements	(489		)	(889		)	(60		)	—			(2,386		)	(44		)

	Nine Months Ended September 30, 2009									Nine Months Ended September 30, 2008
	Senior Housing			MOB			Life Science			Senior Housing			MOB			Life Science
Revenues:
Rental and related revenues	$	62,551		$	53,352		$	5,531		$	62,582		$	53,743		$	6,164
Tenant recoveries	—			13,784			836			—			12,343			1,280
Total revenues	62,551			67,136			6,367			62,582			66,086			7,444

Costs and expenses:
Depreciation and amortization	21,092			28,571			3,241			21,424			23,100			1,708
Operating	7			26,067			1,162			4			25,114			1,400
General and administrative	3,759			3,264			116			4,317			3,134			51
Total costs and expenses	24,858			57,902			4,519			25,745			51,348			3,159

Other income (expense):
Interest and other income, net	1			180			—			58			176			12
Interest expense	(29,058		)	(20,744		)	(792		)	(29,629		)	(20,926		)	(960		)
Net income (loss)	$	8,636		$	(11,330	)	$	1,056		$	7,266		$	(6,012	)	$	3,337

Depreciation and amortization of real estate and in-place lease intangibles	21,092			28,571			3,241			21,424			23,100			1,708
FFO	$	29,728		$	17,241		$	4,297		$	28,690		$	17,088		$	5,045

HCP’s pro rata share of FFO	$	10,405		$	3,867		$	2,410		$	10,042		$	3,835		$	2,888

Selected supplemental cash flow information:
Amortization of above (below) market lease intangibles, net	$	2,409		$	282		$	—		$	2,140		$	462		$	—
Amortization of debt premiums, discounts and issuance costs, net	514			569			24			576			569			31
Straight-line rents	(7,549		)	(1,765		)	(63		)	(9,384		)	(2,380		)	145
Lease commissions and tenant and capital improvements	(1,400		)	(3,511		)	(512		)	—			(4,725		)	(710		)

(1) Financial information is combined by primary segment of each joint venture (i.e., HCP Ventures III and HCP Ventures IV are combined under the MOB columns).

See Reporting Definitions and Reconciliations of Non-GAAP Measures

Investment Management Platform

In thousands

*Net Operating Income(1)***
	Three Months Ended September 30, 2009									Three Months Ended September 30, 2008
	Senior									Senior
	Housing			MOB			Life Science			Housing			MOB			Life Science

Net income (loss)	$	2,796		$	(3,814	)	$	979		$	2,029		$	(1,814	)	$	1,230
Depreciation and amortization	7,031			9,525			439			7,142			7,650			571
General and administrative	1,261			1,072			84			1,685			1,155			2
Interest and other income, net	—			56			—			(16		)	(74		)	—
Interest expense	9,757			6,993			253			9,992			7,003			303

NOI	$	20,845		$	13,832		$	1,755		$	20,832		$	13,920		$	2,106
Straight-line rents	(2,515		)	(746		)	(7		)	(3,128		)	(1,303		)	58
Amortization of above (below) market lease intangibles, net	793			105			—			714			139			—

Adjusted NOI	$	19,123		$	13,191		$	1,748		$	18,418		$	12,756		$	2,164

HCP’s pro rata share of NOI	$	7,296		$	3,055		$	986		$	7,291		$	3,081		$	1,212

HCP’s pro rata share of adjusted NOI	$	6,693		$	2,911		$	982		$	6,446		$	2,825		$	1,249

	Nine Months Ended September 30, 2009									Nine Months Ended September 30, 2008
	Senior									Senior
	Housing			MOB			Life Science			Housing			MOB			Life Science

Net income (loss)	$	8,636		$	(11,330	)	$	1,056		$	7,266		$	(6,012	)	$	3,337
Depreciation and amortization	21,092			28,571			3,241			21,424			23,100			1,708
General and administrative	3,759			3,264			116			4,317			3,134			51
Interest and other income, net	(1		)	(180		)	—			(58		)	(176		)	(12		)
Interest expense	29,058			20,744			792			29,629			20,926			960

NOI	$	62,544		$	41,069		$	5,205		$	62,578		$	40,972		$	6,044
Straight-line rents	(7,549		)	(1,765		)	(63		)	(9,384		)	(2,380		)	145
Amortization of above (below) market lease intangibles, net	2,409			282			—			2,140			462			—

Adjusted NOI	$	57,404		$	39,586		$	5,142		$	55,334		$	39,054		$	6,189

HCP’s pro rata share of NOI	$	21,890		$	9,123		$	2,937		$	21,902		$	9,102		$	3,473

HCP’s pro rata share of adjusted NOI	$	20,091		$	8,766		$	2,902		$	19,367		$	8,649		$	3,595

(1) Financial information is combined by primary segment of each joint venture (i.e., HCP Ventures III and HCP Ventures IV are combined under the MOB columns).

See Reporting Definitions and Reconciliations of Non-GAAP Measures

Investment Management Platform

As of and for the nine months ended September 30, 2009, dollars and square feet in thousands

						Average			EBITDAR			EBITDARM
	Property					Age
HCP Ventures II(1)	Count	Investment		NOI		(Years)	Units	Occupancy%(2)(3)	Amount		CFC	Amount		CFC
Assisted living	2	$	11,077	$	687	13	111	86.6	$	520	0.64 x	$	713	0.88 x
Independent living	20	978,522		55,405		20	5,057	92.0	61,739		0.93 x	69,251		1.04 x
CCRCs	3	107,668		6,452		14	448	90.5	5,995		0.78 x	7,035		0.92 x
	25	$	1,097,267	$	62,544	19	5,616	91.8	$	68,254	0.91 x	$	76,999	1.03 x

						Average
	Property					Age	Square
HCP Ventures III	Count	Investment		NOI		(Years)	Feet	Occupancy%(2)
On-Campus	9	$	108,870	$	6,950	9	619	100.0
Off-Campus	4	32,540		2,139		8	183	93.2
	13	$	141,410	$	9,089	9	802	98.4

						Average
	Property					Age	Square
HCP Ventures IV	Count	Investment		NOI		(Years)	Feet	Occupancy%(2)(4)
Medical office:
On-Campus	23	$	228,716	$	9,950	21	1,207	78.5
Off-Campus	31	347,524		17,393		18	1,478	85.4
Hospital:
LTACH	1	12,193		801		3	N/A	N/A
Rehab	1	13,965		291		3	N/A	N/A
Specialty	2	55,224		3,545		5	N/A	N/A
	58	$	657,622	$	31,980	18

						Average
	Property					Age	Square
HCP Life Science	Count	Investment		NOI		(Years)	Feet	Occupancy%(2)
San Francisco	2	$	40,562	$	3,011	12	147	100.0
San Diego	2	40,279		2,194		14	131	96.8
	4	$	80,841	$	5,205	13	278	98.5

Total	100	$	1,977,140	$	108,818

(1)	All facilities are operated by Horizon Bay Senior Communities.
(2)	For MOBs and life science facilities, occupancy are presented as of the end of the period reported. For senior housing, occupancy represents the facilities’ average operating occupancy for the trailing twelve months and are one quarter in arrears from the period reported.
(3)	At September 30, 2009, the average three-month occupancy for senior housing facilities was 90.0%. These occupancy percentages are one quarter in arrears from the period presented.
(4)	Certain operators in the Investment Management Platform hospital portfolio are not required under their respective leases to provide operational data.

See Reporting Definitions and Reconciliations of Non-GAAP Measures

Reporting Definitions and Reconciliations of Non-GAAP Measures

Adjusted Fixed Charge Coverage. Adjusted EBITDA divided by Fixed Charges. The Company uses Adjusted Fixed Charge Coverage, a non-GAAP financial measure, as a measure of liquidity. The Company believes Adjusted Fixed Charge Coverage provides investors, particularly fixed income investors, relevant and useful information because it measures the Company’s ability to meet its interest payments on outstanding debt and pay dividends to its preferred stockholders. The Company’s various debt agreements contain covenants that require the Company to maintain ratios similar to Adjusted Fixed Charge Coverage and credit rating agencies utilize similar ratios in evaluating and determining the credit rating on certain debt instruments of the Company. However, since this ratio is derived from Adjusted EBITDA and Fixed Charges, its usefulness is limited by the same factors that limit the usefulness of Adjusted EBITDA and Fixed Charges. Further, the Company’s computation of Adjusted Fixed Charge Coverage may not be comparable to similar fixed charge coverage ratios reported by other companies.

The following table details the calculation of Adjusted Fixed Charge Coverage:

In thousands

	Three Months Ended September 30,				Nine Months Ended September 30,
	2009		2008		2009		2008

Adjusted EBITDA	$	237,314	$	279,543	$	701,146	$	750,702
Interest expense:
Continuing operations	74,039		82,813		226,053		264,488
Discontinued operations	—		451		—		732
HCP’s share of interest expense from the Investment Management Platform	5,103		5,217		15,202		15,540
Capitalized interest	6,647		5,579		18,994		22,479
Preferred stock dividends	5,282		5,282		15,848		15,848
Fixed charges	$	91,071	$	99,342	$	276,097	$	319,087

Adjusted fixed charge coverage	2.6 x		2.8 x		2.5 x		2.4 x

Annualized Debt Service. The most recent monthly interest and principal amortization due to HCP as of period end annualized for twelve months. The Company uses Annualized Debt Service for purposes of determining Debt Service Coverage.

Annualized Revenues. The most recent monthly base rent, income from direct financing leases and/or interest income annualized for twelve months. Annualized Revenues do not include tenant recoveries, additional rents and non-cash revenue adjustments (i.e., straight-line rents, amortization of above and below market lease intangibles, interest accretion and deferred revenues). The Company uses Annualized Revenues for the purpose of determining Relationship Concentrations, Lease Expirations and Debt Investment Maturities.

Assets Held for Sale. Assets of discontinued operations in accordance with Statement of Financial Accounting Standards No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets.

Assisted Living Facility (“ALF”). A senior housing facility that predominantly consists of assisted living units is classified by the Company as an ALF.

Beds/Units/Square Feet. Senior housing facilities are measured in units (e.g., studio, one or two bedroom units). MOBs and life science facilities are measured in square feet. Hospitals and skilled nursing facilities are measured in licensed bed count.

Cash Flow Coverage (“CFC”). Facility EBITDAR or Facility EBITDARM for the most recent twelve months of available data divided by the Same Period Rent. Cash Flow Coverage is a supplemental measure of a property’s ability to generate cash flows for the operator/tenant (not the Company) to meet the operator’s/tenant’s related rent and other obligations to the Company. However, its usefulness is limited by, among other things, the same factors that limit the usefulness of Facility EBITDAR or Facility EBITDARM. The coverages shown exclude newly completed facilities under start-up, vacant facilities and facilities for which data is not available or meaningful.

Consolidated Assets. Total assets as reported in the Company’s consolidated financial statements.

Consolidated Debt. The carrying amount of bank line of credit, bridge and term loans (if applicable), senior unsecured notes, mortgage and other secured debt, and other debt as reported in the Company’s consolidated financial statements.

Consolidated Gross Assets. The carrying amount of total assets, excluding investments in and advances to unconsolidated joint ventures, after adding back accumulated depreciation and amortization, as reported in the Company’s consolidated financial statements.

Consolidated Market Capitalization. Consolidated Debt at Book Value plus Consolidated Market Equity.

Consolidated Market Equity. The total number of outstanding shares of the Company’s common stock multiplied by the closing price per share of its 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 its common stock on the New York Stock Exchange as of period end (adjusted for stock splits), plus the total number of outstanding shares of the Company’s preferred stock multiplied by the closing price of its preferred stock on the New York Stock Exchange as of period end.

Consolidated Secured Debt. Mortgage and other secured debt secured by real estate excluding debt on assets held for sale as reported in the Company’s consolidated financial statements.

Continuing Care Retirement Community (“CCRC”). A senior housing facility which provides at least three levels of care (i.e., independent living, assisted living and skilled nursing) is classified by the Company as a CCRC.

Debt Investments. Loans secured by a direct interest in real estate and mezzanine loans.

Debt Service. The periodic payment of interest expense and principal amortization on secured loans.

Reporting Definitions and Reconciliations of Non-GAAP Measures

Debt Service Coverage (“DSC”). Facility EBITDA(R) or Facility EBITDA(R)M for the most recent twelve months of available data divided by Annualized Debt Service. Debt Service Coverage is a supplemental measure of the property’s ability to generate sufficient cash flows for the operator/tenant (not the Company) to meet the operator’s/tenant’s related obligations to the Company under loan agreements. However, its usefulness is limited by the same factors that limit the usefulness of Facility EBITDA(R) or Facility EBITDA(R)M. The coverages shown exclude newly completed facilities under start-up, vacant facilities and facilities for which data is not available or meaningful.

Development. Includes ground-up construction and redevelopments.

Direct Financing Lease (“DFL”). The Company uses the direct finance method of accounting to record income from DFLs. For leases accounted for as DFLs, future minimum lease payments are recorded as a receivable. The difference 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 income over the lease terms to provide a constant yield. Investments in DFLs are presented net of unamortized interest income.

Estimated Completion Date. For development projects, management’s estimate of the date the core and shell structure improvements are expected to be or have been completed. For redevelopment projects, management’s estimate of the time in which major construction activity in relation to the scope of the project has been substantially completed.

EBITDA and Adjusted EBITDA. The real estate industry uses earnings before interest, taxes, depreciation and amortization (“EBITDA”), a non-GAAP financial measure, as a measure of both operating performance and liquidity. Adjusted EBITDA is calculated as EBITDA excluding impairments and gains or losses from real estate dispositions. The Company uses EBITDA and Adjusted EBITDA to measure both its operating performance and liquidity. The Company considers Adjusted EBITDA to provide investors relevant and useful information because it permits investors to view income from its operations on an unleveraged basis before the effects of taxes, non-cash depreciation and amortization, impairments, litigation provision and gains or losses from real estate dispositions. By excluding interest expense, Adjusted EBITDA allows investors to measure the Company’s operating performance independent of its capital structure and indebtedness and, therefore, allows for a more meaningful comparison of its operating performance between quarters as well as annual periods and to compare its operating performance to that of other companies, both in the real estate industry and in other industries. As a liquidity measure, the Company believes that EBITDA and Adjusted EBITDA help investors analyze the Company’s ability to meet its interest payments on outstanding debt and to make preferred dividend payments. The Company believes investors should consider EBITDA and Adjusted EBITDA, in conjunction with net income (the primary measure of the Company’s performance) and the other required GAAP measures of its performance and liquidity, to improve their understanding of the Company’s operating results and liquidity, and to make more meaningful comparisons of its performance between periods and as against other companies. EBITDA and Adjusted EBITDA have limitations as analytical tools and should be used in conjunction with the Company’s required GAAP presentations. EBITDA and Adjusted EBITDA do not reflect the Company’s historical cash expenditures or future cash requirements for capital expenditures or contractual commitments. While Adjusted EBITDA is a relevant and widely used measure of operating performance and liquidity, it does not represent net income or cash flow from operations as defined by GAAP and it should not be considered as an alternative to those indicators in evaluating operating performance or liquidity. Further, the Company’s computation of EBITDA and Adjusted EBITDA may not be comparable to similar measures reported by other companies.

The following table reconciles Adjusted EBITDA from net income (loss):

In thousands

	Three Months Ended September 30,						Nine Months Ended September 30,
	2009			2008			2009			2008

Net income (loss)	$	(43,220	)	$	131,556		$	110,667		$	425,764
Interest expense:
Continuing operations	74,039			82,813			226,053			264,488
Discontinued operations	—			451			—			732
Income tax (expense) benefit:
Continuing operations	(322		)	853			1,406			4,327
Discontinued operations	—			15			157			150
Depreciation and amortization of real estate, in-place lease and other intangibles:
Continuing operations	82,301			77,292			242,318			232,574
Discontinued operations	56			414			266			7,178
Equity (income) loss from unconsolidated joint ventures	(1,328		)	(1,227		)	(1,993		)	(3,736		)
HCP’s share of EBITDA from the Investment Management Platform	10,601			10,763			31,886			32,315
Other joint venture adjustments	551			655			1,741			1,880
EBITDA	$	122,678		$	303,585		$	612,501		$	965,672

Impairments	15,123			3,710			21,029			13,425
Litigation provision	101,973			—			101,973			—
Gain on sales of real estate	(2,460		)	(27,752		)	(34,357		)	(228,395		)
Adjusted EBITDA	$	237,314		$	279,543		$	701,146		$	750,702

Reporting Definitions and Reconciliations of Non-GAAP Measures

Facility EBITDA(R) (“EBITDA(R)”). Earnings before interest, taxes, depreciation, amortization and rent for a particular facility accruing to the operator/tenant of the property (not the Company), for the trailing twelve months and one quarter in arrears from the date presented. The Company uses Facility EBITDA(R) in determining Cash Flow Coverage and Debt Service Coverage. Facility EBITDA(R) has limitations as an analytical tool. Facility EBITDA(R) does not reflect historical cash expenditures or future cash requirements for facility capital expenditures or contractual commitments. In addition, Facility EBITDA(R) does not represent a property’s net income or cash flow from operations and should not be considered an alternative to those indicators. However, the Company receives periodic financial information from operators/tenants regarding the performance of the Company’s facilities under the operator’s/tenant’s management. The Company utilizes Facility EBITDA(R) as a supplemental measure of the ability of those properties to generate sufficient liquidity to meet related obligations to the Company. Facility EBITDA(R) includes the greater of (i) contractual management fees or (ii) an imputed management fee of 2% for acute care hospitals and 5% for skilled nursing facilities and senior housing facilities which the Company believes represents typical management fees in their respective industries. All facility financial performance data was derived solely from information provided by operators/tenants and borrowers without independent verification by the Company.

Facility EBITDA(R)M (“EBITDA(R)M”). Earnings before interest, taxes, depreciation, amortization, rent and management fees for a particular facility accruing to the operator/tenant of the property (not the Company), for the trailing twelve months and one quarter in arrears from the date presented. The Company uses Facility EBITDA(R)M in determining Cash Flow Coverage and Debt Service Coverage. Facility EBITDA(R)M has limitations as an analytical tool. Facility EBITDA(R)M does not reflect historical cash expenditures or future cash requirements for facility capital expenditures or contractual commitments. In addition, Facility EBITDA(R)M does not represent a property’s net income or cash flow from operations and should not be considered an alternative to those indicators. However, the Company receives periodic financial information from operators/tenants regarding the performance of the Company’s facilities under the operator’s/tenant’s management. The Company utilizes Facility EBITDA(R)M as a supplemental measure of the ability of those properties to generate sufficient liquidity to meet related obligations to the Company. All facility financial performance data was derived solely from information provided by operators/tenants and borrowers without independent verification by the Company.

Financial Leverage. Total Debt divided by Total Gross Assets. The Company believes that its Financial Leverage is a meaningful supplemental measure of its financial position, which enables both management and investors to analyze its leverage and to compare its leverage to that of other companies. The Company believes that its Financial Leverage is a meaningful supplemental measure of its financial position, which enables both management and investors to analyze its leverage and to compare its leverage to that of other companies. The Company believes that the ratio of consolidated debt to consolidated gross assets is the most directly comparable GAAP measure to Financial Leverage. The Company’s computation of its Financial Leverage may not be identical to the computations of financial leverage reported by other companies. The Company’s share of total debt is not intended to reflect its actual liability or ability to access assets should there be a default under any or all of such loans or a liquidation of the joint ventures.

Fixed Charges. Total interest expense plus capitalized interest plus preferred stock dividends. The Company uses Fixed Charges to measure its interest payments on outstanding debt and dividends to its preferred stockholders for purposes of presenting Fixed Charge Coverage and Adjusted Fixed Charge Coverage. However, the usefulness of Fixed Charges is limited as, among other things, it does not include all contractual obligations. The Company’s computation of Fixed Charges should not be considered an alternative to fixed charges as defined by Item 503(d) of Regulation S-K and may not be comparable to fixed charges reported by other companies.

Funds From Operations (“FFO”). The Company believes that net income as defined by GAAP is the most appropriate earnings measure. The Company also believes that Funds From Operations, or FFO, as defined by the National Association of Real Estate Investment Trusts (“NAREIT”), FFO applicable to common shares, Diluted FFO applicable to common shares, and Basic and Diluted FFO per common share are important non-GAAP supplemental measures of operating performance for a real estate investment trust. Because the historical cost accounting convention used for real estate assets requires straight-line depreciation (except on land), such accounting presentation implies that the value of real estate assets diminishes predictably over time. However, since real estate values have historically risen or fallen with market and other conditions, presentations of operating results for a real estate investment trust that use historical cost accounting for depreciation could be less informative. Thus, NAREIT created FFO as a supplemental measure of operating performance for real estate investment trusts that excludes historical cost depreciation and amortization, among other items, from net income, as defined by GAAP. FFO is defined as net income, computed in accordance with GAAP, excluding gains or losses from real estate dispositions, plus real estate depreciation and amortization, with adjustments to derive the Company’s pro rata share of FFO from consolidated and unconsolidated joint ventures. Adjustments for joint ventures are calculated to reflect FFO on the same basis. The Company believes that the use of FFO, combined with the required GAAP presentations, improves the understanding of operating results of real estate investment trusts among investors and makes comparisons of operating results among such companies more meaningful. The Company considers FFO to be a useful measure for reviewing comparative operating and financial performance because, by excluding gains or losses related to sales of previously depreciated operating real estate assets and real estate depreciation and amortization, FFO can help investors compare the operating performance of a real estate investment trust between periods or as compared to other companies. While FFO is a relevant and widely used measure of operating performance of real estate investment trusts, it does not represent cash flows from operations or net income as defined by GAAP and should not be considered an alternative to those measures in evaluating the Company’s liquidity or operating performance. FFO also does not consider the costs associated with capital expenditures related to the Company’s real estate assets nor is FFO necessarily indicative of cash available to fund the Company’s future cash requirements. Further, the Company’s computation of FFO may not be comparable to FFO reported by other real estate investment trusts that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently from the Company. For a reconciliation of FFO to net income, please refer to the slide in this supplemental information package captioned “Consolidated Funds From Operations.”

FFO Payout Ratio. Dividends declared per common share divided by Diluted FFO per common share for a given period. The Company believes the FFO Payout Ratio per Common Share provides investors relevant and useful information because it measures the portion of FFO being declared as dividends to common stockholders. FFO Payout Ratio per Common Share is subject to the same limitations noted in the definition of FFO above.

Reporting Definitions and Reconciliations of Non-GAAP Measures

HCP Life Science. Includes three unconsolidated joint ventures between the Company and an institutional capital partner for which the Company is the managing member. HCP Life Science includes the following partnerships: (i) Torrey Pines Science Center LP (50%), (ii) Britannia Biotech Gateway LP (55%) and (iii) LASDK LP (63%). The unconsolidated joint ventures were acquired as part of the Company’s purchase of Slough Estates USA Inc. on August 1, 2007.

HCP Ventures II. An unconsolidated joint venture formed on January 5, 2007 between the Company and an institutional capital partner, for which the Company is the managing member and has a 35% interest.

HCP Ventures III. An unconsolidated joint venture formed on October 27, 2006 between the Company and an institutional capital partner, for which the Company is the managing member and has an effective 25.5% interest.

HCP Ventures IV. An unconsolidated joint venture formed on April 30, 2007 between the Company and an institutional capital partner, for which the Company is the managing member and has a 20% interest.

Independent Living Facility (“ILF”). A senior housing facility that predominantly consists of independent living units.

Investment. Represents (i) the carrying amount of real estate assets, including intangibles, after adding back accumulated depreciation and amortization, excluding assets held for sale and classified as discontinued operations and (ii) the carrying amount of DFLs and debt investments, excluding interest accretion related to DFLs.

Investment Management Platform. Includes the following unconsolidated joint ventures: (i) HCP Life Science, (ii) HCP Ventures II, (iii) HCP Ventures III and (iv) HCP Ventures IV.

Life Science. Laboratory and office space primarily for biotechnology and pharmaceutical companies, scientific research institutions, government agencies and other entities involved in the life science industry.

Long-Term Acute Care Hospitals (“LTACHs”). LTACHs provide care for patients with complex medical conditions that require longer stays and more intensive care, monitoring or emergency back-up than that available in most skilled nursing-based programs.

Net Operating Income from Continuing Operations (“NOI”). A non-GAAP supplemental financial measure used to evaluate the operating performance of real estate properties and SPP. The Company defines NOI as rental revenues, including tenant reimbursements and income from direct financing leases, less property level operating expenses. NOI excludes investment management fee income, depreciation and amortization, general and administrative expenses, litigation provision, impairments, interest and other income, net, interest expense, income tax expense (benefit), equity income from unconsolidated joint ventures and discontinued operations. The Company believes NOI provides investors relevant and useful information because it measures the operating performance of the Company’s real estate at the property level on an unleveraged basis. NOI, as adjusted, is calculated as NOI eliminating the effects of straight-line rents, DFL interest accretion, amortization of above and below market lease intangibles, and lease termination fees. NOI, as adjusted, is sometimes referred as “adjusted NOI” or “cash basis NOI.” The Company uses NOI and NOI, as adjusted, to make decisions about resource allocations, to assess and compare property level performance, and evaluate SPP. The Company believes that net income is the most directly comparable GAAP measure to NOI. NOI should not be viewed as an alternative measure of operating performance to net income as defined by GAAP since it does not reflect the aforementioned excluded items. Further, NOI may not be comparable to that of other real estate investment trusts, as they may use different methodologies for calculating NOI.

The following table reconciles NOI from net income (loss):

In thousands

	Three Months Ended September 30,						Nine Months Ended September 30,
	2009			2008			2009			2008
Net income (loss)	$	(43,220	)	$	131,556		$	110,667		$	425,764
Investment management fee income	(1,326		)	(1,523		)	(4,133		)	(4,448		)
Depreciation and amortization	82,301			77,292			242,318			232,574
General and administrative	22,860			17,077			61,625			55,859
Litigation provision	101,973			—			101,973			—
Impairments	15,123			3,710			20,904			5,284
Interest and other income, net	(39,962		)	(62,283		)	(93,027		)	(128,344		)
Interest expense	74,039			82,813			226,053			264,488
Income tax (expense) benefit	(322		)	853			1,406			4,327
Equity income from unconsolidated joint ventures	(1,328		)	(1,227		)	(1,993		)	(3,736		)
Total discontinued operations, net of taxes	(2,308		)	(31,043		)	(36,135		)	(239,412		)
NOI	$	207,830		$	217,225		$	629,658		$	612,356
Straight-line rents	(12,992		)	(9,112		)	(38,751		)	(28,645		)
Interest accretion - DFLs	(2,034		)	(2,160		)	(5,983		)	(6,350		)
Amortization of above and below market lease intangibles, net	(1,677		)	(1,991		)	(12,657		)	(6,020		)
Lease termination fees	(479		)	(18,090		)	(1,826		)	(18,090		)
NOI adjustments related to properties in discontinued operations	1			22			539			337
Adjusted NOI	$	190,649		$	185,894		$	570,980		$	553,588

Reporting Definitions and Reconciliations of Non-GAAP Measures

Occupancy. For MOBs and life science facilities, occupancy represents the percentage of total rentable square feet leased where rental payments have commenced, including month-to-month leases, as of the end of the period reported. For hospitals, skilled nursing facilities and senior housing facilities, occupancy represents the facilities’ average operating occupancy for the trailing twelve months and one quarter in arrears from the date reported. The percentages are calculated based on licensed beds, available beds and units for hospitals, skilled nursing facilities and senior housing facilities, respectively. The percentages shown exclude newly completed facilities under lease-up, vacant facilities and facilities for which data is not available or meaningful. All facility financial performance data were derived solely from information provided by operators/tenants and borrowers without independent verification by the Company. For the same property portfolio, occupancy for hospitals, skilled nursing facilities and senior housing facilities are presented based on the average operating occupancy for trailing three-month period one quarter in arrears from the date reported.

Owned Portfolio. Represents owned properties subject to operating leases and DFLs and debt investments, and excludes properties under and land held for future development.

Pooled Leases. Two or more leases to the same operator/tenant or their subsidiaries under which their obligations are combined by virtue of a master lease, or multiple master leases, a pooling agreement, or multiple pooling agreements, or cross-guaranties. Sunrise Senior Living percentage pooled consists of 75 assets under 11 separate pools.

Redevelopment Projects. Properties that require significant capital expenditures (generally more than 25% of acquired cost or existing basis) to achieve stabilization or to change the use of the properties.

Rehabilitation Hospitals (“Rehab”). Rehabilitation hospitals provide inpatient and outpatient care for patients who have sustained traumatic injuries or illnesses, such as spinal cord injuries, strokes, head injuries, orthopedic problems, work-related disabilities and neurological diseases.

Rental Revenues. Represents rental and related revenues, tenant recoveries and income from direct financing leases.

Retention Rate. The Company defines retention rate as the ratio of total square feet expiring and available for lease to total renewed square feet, excluding the square feet for tenant leases terminated for default or buy-out prior to the expiration of their lease.

Same Period Rent. The base rent plus additional rent due to the Company over the most recent trailing twelve-month period as of period end. The Company uses Same Period Rent for purposes of determining property-level Cash Flow Coverage.

Same Property Portfolio (“SPP”). An important component of the Company’s evaluation of the operating performance of its properties. The Company defines its same property portfolio each quarter as those properties that have been in operation throughout the current year and the prior year and that were also in operation at January 1st of the prior year. Newly acquired assets, developments and redevelopments in process and assets classified in discontinued operations are excluded from the same property portfolio. Same property statistics allow management to evaluate the NOI of its real estate portfolio as a consistent population from period to period and eliminates the effects of changes in the composition of the properties on performance measures. SPP NOI excludes certain non-property specific operating expenses that are allocated to each operating segment on a consolidated basis.

Senior Housing. ALFs, ILFs and CCRCs. For reporting purposes, the Company’s senior housing portfolio also includes a school formerly operated as an assisted living facility and six health and wellness centers.

Specialty Hospitals. Specialty hospitals are licensed as acute care hospitals but focus on providing care in specific areas such as cardiac, orthopedic and women’s conditions, or specific procedures such as surgery and are less likely to provide emergency services.

Square Feet. The square footage for properties, excluding square footage for development or redevelopment properties prior to completion.

Stabilization. Assets are considered stabilized at the earlier of achieving 90% occupancy or one year from the completion of development or redevelopment activities.

Total Debt. Consolidated Debt at Book Value plus the Company’s pro rata share of debt from the Investment Management Platform.

Total Gross Assets. Consolidated Gross Assets plus the Company’s pro rata share of total assets from the Investment Management Platform, after adding back accumulated depreciation and amortization.

The following table details the calculation of Total Gross Assets:

In thousands

	September 30, 2009			December 31, 2008			September 30, 2008
Consolidated total assets	$	12,338,210		$	11,849,826		$	12,031,404
Investments in and advances to unconsolidated joint ventures	(261,364		)	(272,929		)	(275,593		)
Accumulated depreciation and amortization	1,209,850			993,954			939,414
Accumulated depreciation and amortization from assets held for sale	354			24,729			29,153
Consolidated gross assets	$	13,287,050		$	12,595,580		$	12,724,378
HCP’s share of unconsolidated total assets(1)	550,011			561,397			569,150
HCP’s share of unconsolidated accumulated depreciation and amortization(1)	59,809			46,629			41,889
Total gross assets	$	13,896,870		$	13,203,606		$	13,335,417

Total Market Capitalization. Total Debt plus Consolidated Market Equity.

Total Secured Debt. Consolidated secured debt plus the Company’s pro rata share of mortgage debt from the Investment Management Platform.

Yield. Yield is calculated as Net Operating Income, as adjusted, divided by total investment. For acquisitions, initial yields are calculated as projected Net Operating Income, twelve months forward, as adjusted, as of the closing date divided by total acquisition cost. The total acquisition cost basis includes the initial purchase price, the effects of adjusting assumed debt to market, lease intangible adjustments and all transaction costs.

(1)	Reflects the Company’s pro rata share of amounts from the Investment Management Platform.

Attached files

HEALTHPEAK PROPERTIES, INC. Reports

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