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
3760 Kilroy Airport Way, Suite 300
Long Beach, CA 90806-2473
(562) 733-5100

Chicago Office
444 North Michigan Avenue, Suite 3230
Chicago, IL 60611

Nashville Office

3100 West End Avenue, Suite 800

Nashville, TN 37203

San Francisco Office

400 Oyster Point Boulevard, Suite 409

South San Francisco, CA 94080

Trading Symbol

HCP		Common Stock
HCP_pe		Series E Preferred Stock
HCP_pf		Series F Preferred Stock

Stock Exchange Listing

NYSE

Senior Debt Ratings

Moody’s		Baa3
Standard & Poor’s		BBB
Fitch		BBB

(1) As of April 28, 2009.

See Reporting Definitions and Supplemental Financial Measures Disclosures

Highlights

Dollars in thousands, except per share data

	Three Months Ended March 31,
	2009		2008

Revenues	$	251,615	$	244,793

NOI	202,501		195,105

Adjusted EBITDA	221,291		237,306

Net income applicable to common shares	43,285		44,579

FFO applicable to common shares	128,019		121,483

Per diluted common share:

EPS	$	0.17	$	0.21

FFO	0.50		0.56

FFO payout ratio per diluted common share	92%		81%

Adjusted fixed charge coverage	2.4x		2.0x

Financial leverage	48%		58%

Recent Developments(1)		Total Assets Under Management: $13.2 billion(2)

·	Diluted FFO per share of $0.50(3)

·	Completed sale of Los Gatos, California hospital for $45 million

·	Thomas M. Herzog named as Executive Vice President - Chief Financial Officer and Treasurer

(1) As of April 28, 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 March 31, 2009.

(3) As of and for the quarter ended March 31, 2009.

See Reporting Definitions and Supplemental Financial Measures Disclosures

Consolidated Balance Sheets

In thousands

	March 31,			December 31,
	2009			2008

ASSETS
Real estate:
Buildings and improvements	$	7,758,432		$	7,752,714
Development costs and construction in progress	240,690			224,337
Land	1,550,286			1,550,219
Less accumulated depreciation and amortization	880,881			820,441
Net real estate	8,668,527			8,706,829

Net investment in direct financing leases	648,411			648,234
Loans receivable, net	1,074,874			1,076,392
Investments in and advances to unconsolidated joint ventures	267,350			272,929
Accounts receivable, net	29,046			34,211
Cash and cash equivalents	66,376			57,562
Restricted cash	32,973			35,078
Intangible assets, net	482,329			505,986
Real estate held for sale, net	15,120			19,799
Other assets, net	516,283			492,806
Total assets	$	11,801,289		$	11,849,826

LIABILITIES AND EQUITY
Bank line of credit	$	235,000		$	150,000
Bridge and term loans	520,000			520,000
Senior unsecured notes	3,524,338			3,523,513
Mortgage debt	1,603,838			1,641,734
Other debt	101,047			102,209
Intangible liabilities, net	223,749			232,654
Accounts payable and accrued liabilities	190,100			211,691
Deferred revenue	72,305			60,185
Total liabilities	6,470,377			6,441,986

Commitments and contingencies

Preferred stock	285,173			285,173
Common stock	253,975			253,601
Additional paid-in capital	4,870,942			4,873,727
Cumulative dividends in excess of earnings	(203,359		)	(130,068		)
Accumulated other comprehensive loss	(77,469		)	(81,162		)
Total stockholders’ equity	5,129,262			5,201,271

Joint venture partners	8,245			12,912
Non-managing member unitholders	193,405			193,657
Total noncontrolling interests	201,650			206,569
Total equity	5,330,912			5,407,840
Total liabilities and equity	$	11,801,289		$	11,849,826

See Reporting Definitions and Supplemental Financial Measures Disclosures

Consolidated Statements of Income

In thousands, except per share data

	Three Months Ended March 31,
	2009			2008
Revenues:
Rental and related revenues	$	213,588		$	206,905
Tenant recoveries	23,664			21,447
Income from direct financing leases	12,925			14,974
Investment management fee income	1,438			1,467
Total revenues	251,615			244,793
Costs and expenses:
Depreciation and amortization	80,537			77,632
Operating	47,676			48,221
General and administrative	18,991			20,445
Total costs and expenses	147,204			146,298
Other income (expense):
Interest and other income, net	24,333			35,322
Interest expense	(76,674		)	(96,263		)
Total other income (expense)	(52,341		)	(60,941		)
Income before income taxes and equity income (loss) from unconsolidated joint ventures	52,070			37,554
Income taxes	(915		)	(2,241		)
Equity income (loss) from unconsolidated joint ventures	(462		)	1,288
Income from continuing operations	50,693			36,601
Discontinued operations:
Income before gain on sales of real estate, net of income taxes	659			9,389
Gain on sales of real estate, net of income taxes	1,357			10,138
Total discontinued operations	2,016			19,527
Net income	52,709			56,128
Noncontrolling interests’ and participating securities’ share in earnings	(4,141		)	(6,266		)
Preferred stock dividends	(5,283		)	(5,283		)
Net income applicable to common shares	$	43,285		$	44,579

Basic earnings per common share:
Continuing operations	$	0.16		$	0.12
Discontinued operations	0.01			0.09
Net income applicable to common shares	$	0.17		$	0.21

Diluted earnings per common share:
Continuing operations	$	0.16		$	0.12
Discontinued operations	0.01			0.09
Net income applicable to common shares	$	0.17		$	0.21

Weighted average shares used to calculate earnings per common share:
Basic	253,335			216,773
Diluted	253,423			217,391

Dividends declared per common share	$	0.460		$	0.455

See Reporting Definitions and Supplemental Financial Measures Disclosures

Consolidated Statements of Cash Flows

In thousands

	Three Months Ended March 31,
	2009			2008
Cash flows from operating activities:
Net income	$	52,709		$	56,128
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of real estate, in-place lease and other intangibles:
Continuing operations	80,537			77,632
Discontinued operations	61			4,726
Amortization of above and below market lease intangibles, net	(2,660		)	(2,152		)
Stock-based compensation	3,546			3,526
Amortization of debt premiums, discounts and issuance costs, net	2,768			3,039
Straight-line rents	(11,422		)	(9,782		)
Interest accretion	(6,121		)	(6,292		)
Deferred rental revenue	6,914			8,605
Equity (income) loss from unconsolidated joint ventures	462			(1,288		)
Distributions of earnings from unconsolidated joint ventures	1,468			1,191
Gain on sales of real estate	(1,357		)	(10,138		)
Marketable securities losses, net	309			113
Derivative losses, net	439			—
Changes in:
Accounts receivable	5,165			12,043
Other assets	(1,050		)	10,480
Accounts payable and accrued liabilities	(14,756		)	(16,156		)
Net cash provided by operating activities	117,012			131,675

Cash flows from investing activities:
Cash used in other acquisitions and development of real estate	(20,269		)	(42,962		)
Lease commissions and tenant and capital improvements	(9,642		)	(18,107		)
Proceeds from sales of real estate, net	5,764			29,590
Contributions to unconsolidated joint ventures	—			(472		)
Distributions in excess of earnings from unconsolidated joint ventures	1,714			2,316
Principal repayments on loans receivable and direct financing leases	2,485			2,155
Investments in loans receivable	(16		)	(602		)
Decrease in restricted cash	2,105			6,763
Net cash used in investing activities	(17,859		)	(21,319		)

See Reporting Definitions and Supplemental Financial Measures Disclosures

Consolidated Funds From Operations

Dollars in thousands, except per share data

	Three Months Ended March 31,
	2009			2008

Net income applicable to common shares	$	43,285		$	44,579
Depreciation and amortization of real estate, in-place lease and other intangibles:
Continuing operations	80,537			77,632
Discontinued operations	61			4,726
Gain on sales of real estate	(1,357		)	(10,138		)
Equity (income) loss from unconsolidated joint ventures	462			(1,288		)
FFO from unconsolidated joint ventures	5,631			6,620
Noncontrolling interests’ share in earnings	3,826			5,716
Noncontrolling interests’ share in FFO	(4,426		)	(6,364		)
FFO applicable to common shares	$	128,019		$	121,483

Distributions on convertible units	$	1,620		$	4,767

Diluted FFO applicable to common shares	$	129,639		$	126,250

Basic FFO per common share	$	0.51		$	0.56

Diluted FFO per common share	$	0.50		$	0.56

Weighted average shares used to calculate diluted FFO per common share	256,949			226,910

Dividends declared per common share	$	0.460		$	0.455

FFO payout ratio per common share	92.0%			81.3%

Impact of merger-related charges	$	—		$	1,189

Per common share impact of merger-related charges on diluted FFO	$	—		$	—

FFO payout ratio per common share prior to merger-related charges	92.0%			81.3%

Consolidated selected supplemental cash flow information:
Amortization of net below market lease intangibles	$	2,660		$	2,152
Stock-based compensation	3,546			3,526
Amortization of debt premiums, discounts and issuance costs, net	2,768			3,039
Straight-line rents	11,422			9,782
Interest accretion	6,121			6,292
Increase in deferred revenues – tenant improvement related	3,942			4,585
Increase in SAB 104 deferred revenue	2,972			4,020
Lease commissions and tenant and capital improvements	9,642			18,107
Capitalized interest	6,020			9,362

HCP’s share of selected supplemental cash flow information from the Investment Management Platform
Amortization of net above market lease intangibles	$	1,442		$	269
Amortization of debt premiums, discounts and issuance costs, net	106			105
Straight-line rents	1,039			1,208
Lease commissions and tenant and capital improvements	561			292

See Reporting Definitions and Supplemental Financial Measures Disclosures

Capitalization

Dollars in thousands

Debt Maturities and Scheduled Principal Repayments March 31, 2009
	Bank Line of Credit		Bridge and Term Loans		Senior Unsecured Notes			Mortgage Debt		Other Debt(1)			Consolidated Debt			HCP’s Share of Unconsolidated Mortgage Debt(2)			Total Debt

2009 (9 months)	$	—	$	320,000	$	—		$	117,811	$		101,047	$	538,858		$	3,886		$	542,744
2010	—		—		206,421			298,503		—			504,924			5,546			510,470
2011	235,000		200,000		300,000			137,573		—			872,573			6,224			878,797
2012	—		—		250,000			60,922		—			310,922			13,560			324,482
2013	—		—		550,000			233,293		—			783,293			44,508			827,801
2014	—		—		87,000			174,490		—			261,490			4,364			265,854
2015	—		—		400,000			279,536		—			679,536			15,070			694,606
2016	—		—		400,000			237,114		—			637,114			50,975			688,089
2017	—		—		750,000			3,203		—			753,203			201,648			954,851
2018	—		—		600,000			3,389		—			603,389			—			603,389
Thereafter	—		—		—			53,576		—			53,576			—			53,576
Subtotal	235,000		520,000		3,543,421			1,599,410		101,047			5,998,878			345,781			6,344,659

(Discounts) and premiums, net	—		—		(19,083		)	4,428		—			(14,655		)	(599		)	(15,254		)
Total	$	235,000	$	520,000	$	3,524,338		$	1,603,838	$	101,047		$	5,984,223		$	345,182		$	6,329,405

Weighted average interest rate	1.50%		1.90%		6.24%			6.00%		N/A			5.60%			5.70%			5.61%

Weighted average maturity in years	2.40		1.12		6.04			4.62		N/A			5.07			7.66			5.22

*Capitalization Ratios*
		March 31,	December 31,
		2009	2008
Total Debt/Total Book Capitalization		54.3%	53.7%
Total Debt/Total Undepreciated Book Capitalization		49.5%	49.3%

Consolidated Debt/Consolidated Gross Assets		47.4%	47.1%
Financial Leverage (Total Debt/Total Gross Assets)		47.9%	47.6%

Consolidated Secured Debt/Consolidated Gross Assets		12.7%	13.0%
Total Secured Debt/Total Gross Assets		14.7%	15.1%

Consolidated Debt/Consolidated Market Capitalization		55.2%	44.5%
Total Debt/Total Market Capitalization		56.6%	45.9%

*Variable Rate Debt*
		March 31,	December 31,
		2009	2008
Fixed and variable rate ratios

Fixed rate		84.6%	85.8%
Variable rate		15.4%	14.2%
		100.0%	100.0%

(1)	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.
(2)	Includes pro-rata share of the Company’s Investment Management Platform.

See Reporting Definitions and Supplemental Financial Measures Disclosures

Investments and Dispositions

As of and for the three months ended March 31, 2009, dollars and square feet in thousands

*Investments*
Description	Capacity	Property Count	Segment	Investment

Acquisition of joint venture interests				$	14,250

Total fundings for development, tenant and capital improvements				$	24,655

Total investments				$	38,905

Dispositions
Description	Capacity	Property Count	Segment	Sales Price, Net of Costs
Property dispositions:
First quarter
Texas	40 beds	1	Hospital	$	839
Louisiana	N/A	4	MOB	384
Kansas	110 units	1	Senior housing	480
Washington	40 sq. ft.	1	MOB	4,312
Total property dispositions				$	6,015

See Reporting Definitions and Supplemental Financial Measures Disclosures

Development

As of March 31, 2009, dollars and square feet in thousands

Development Projects in Process

Name of Project

Location

Segment

Estimated
Completion
Date

Rent
Commencement
Date

Estimated
Rentable
Square
Feet

Oyster Point II (Building A)

So. San Francisco, CA

Life science

4Q 2008

122

Oyster Point II (Building B)

So. San Francisco, CA

Life science

4Q 2008

1Q 2009

129

Oyster Point II (Building C)

So. San Francisco, CA

Life science

4Q 2008

N/A

329

Redevelopment

500/600 Saginaw

Redwood City, CA

Life science

4Q 2009

N/A

Modular Labs IV

So. San Francisco, CA

Life science

3Q 2010

N/A

Innovation Drive

San Diego, CA

MOB

3Q 2010

N/A

Folsom Blvd

Sacramento, CA

MOB

3Q 2010

N/A

362

Estimated total investment

416,322

Investment-to-date(1)

314,831

Percentage pre-leased

36%

Land Held for Future Development

Estimated

Rentable

Gross Site

Square

Name of Project

Location

Segment

Acreage

Feet

Forbes Research Center

So. San Francisco, CA

Life science

326

Sierra Point

So. San Francisco, CA

Life science

540

Bressi I

Carlsbad, CA

Life science

397

Bressi II

Carlsbad, CA

Life science

300

Poway I

Poway, CA

Life science

676

Poway II

Poway, CA

Life science

585

Torrey Pines Science Center

Torrey Pines, CA

Life science

149

2,917

(1)

Investment-to-date includes $67 million of land, $65 million of buildings and $13 million of net intangible assets, which are not included in development costs and construction in progress on the Company’s consolidated balance sheet.

See Reporting Definitions and Supplemental Financial Measures Disclosures

Investment Management Platform

As of and for the three months ended March 31, 2009, dollars in thousands

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

HCP Ventures II		Senior housing	January-07	35%	$	1,097,267	$	140,750	$	783	Indefinite
HCP Ventures III		Medical office	October-06	30%(1)	141,089		11,577		117		10
HCP Ventures IV		Medical office	April-07	20%	655,804		44,408		537		10
HCP Life Science		Life science	August-07	50%-63%	80,484		63,953		1		97-98
					$	1,974,644	$	260,688	$	1,438

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

See Reporting Definitions and Supplemental Financial Measures Disclosures

Investment Management Platform

In thousands

*Funds From Operations*
		Three Months Ended March 31, 2009												Three Months Ended March 31, 2008
		HCP Ventures II			HCP Ventures III			HCP Ventures IV			HCP Life Science(1)			HCP Ventures II			HCP Ventures III			HCP Ventures IV			HCP Life Science
Net income (loss)		$	2,877		$	250		$	(3,581	)	$	(958	)	$	2,734		$	93		$	(2,008	)	$	1,152
Depreciation and amortization of real estate and in-place lease intangibles		7,031			1,302			8,199			2,361			7,141			1,249			6,538			566
FFO		$	9,908		$	1,552		$	4,618		$	1,403		$	9,875		$	1,342		$	4,530		$	1,718

HCP’s pro rata share of FFO		$	3,468		$	466		$	924		$	796		$	3,456		$	403		$	906		$	990

Selected supplemental cash flow information:
Amortization of above (below) market lease intangibles, net		$	823		$	(141	)	$	248		$	—		$	713		$	(141	)	$	311		$	—
Amortization of debt premiums, discounts and issuance costs, net		171			38			152			8			156			38			152			15
Straight-line rents		(2,512		)	(90		)	(535		)	(48		)	(3,128		)	30			(555		)	(38		)
Lease commissions and tenant and capital improvements		616			78			1,215			157			—			10			497			379

(1)	For the three months ended March 31, 2009, HCP Life Science ventures experienced a loss of $1.8 million primarily related to accelerated amortization of real estate and other assets. At the date that we acquired this venture, other assets was not attributed any value relative to the Company’s investment in the venture; as such, the related allowance and accelerated amortization do not have an impact on the Company’s earnings or FFO.

See Reporting Definitions and Supplemental Financial Measures Disclosures

Investment Management Platform

In thousands

*Balance Sheets*
	March 31, 2009								December 31, 2008
	HCP Ventures II		HCP Ventures III		HCP Ventures IV		HCP Life Science		HCP Ventures II		HCP Ventures III		HCP Ventures IV		HCP Life Science
ASSETS
Real estate:
Buildings and improvements	$	935,211	$	129,838	$	524,978	$	43,137	$	935,211	$	129,838	$	523,750	$	43,124
Development costs and construction in progress	—		418		2,381		656		—		367		2,599		513
Land	108,907		1,780		66,029		8,271		108,907		1,780		65,996		8,271
Less accumulated depreciation and amortization	66,826		10,251		44,296		28,436		60,143		9,412		38,184		26,398
Net real estate	977,292		121,785		549,092		23,628		983,975		122,573		554,161		25,510

Cash and cash equivalents and restricted cash	6,586		1,734		11,893		2,505		9,142		1,489		10,746		1,269
Other assets, net	42,635		3,833		13,949		2,629		39,733		4,045		13,326		3,145
Intangible assets, net	42,961		10,095		49,353		—		44,033		10,578		51,914		—
Total assets	$	1,069,474	$	137,447	$	624,287	$	28,762	$	1,076,883	$	138,685	$	630,147	$	29,924

LIABILITIES AND MEMBERS’ CAPITAL
Mortgage debt	$	666,494	$	91,730	$	378,326	$	15,141	$	668,938	$	91,730	$	378,448	$	15,844
Intangible liabilities, net	1,149		4,762		11,099		—		1,176		4,926		11,462		—
Accounts payable, accrued liabilities and deferred revenue	5,118		1,961		12,821		1,702		7,662		3,285		12,512		1,093
Total liabilities	672,761		98,453		402,246		16,843		677,776		99,941		402,422		16,937

HCP’s capital	136,097		9,955		34,267		6,029		136,927		9,880		35,404		6,755
Partners’ capital	260,616		29,039		187,774		5,890		262,180		28,864		192,321		6,232
Total liabilities and members’ capital	$	1,069,474	$	137,447	$	624,287	$	28,762	$	1,076,883	$	138,685	$	630,147	$	29,924

See Reporting Definitions and Supplemental Financial Measures Disclosures

Investment Management Platform

In thousands

*Statements of Operations*
	Three Months Ended March 31, 2009												Three Months Ended March 31, 2008
	HCP Ventures II			HCP Ventures III			HCP Ventures IV			HCP Life Science			HCP Ventures II			HCP Ventures III			HCP Ventures IV			HCP Life Science
Revenues:
Rental and related revenues	$	20,851		$	3,495		$	14,443		$	1,960		$	20,921		$	3,315		$	14,425		$	2,060
Tenant recoveries	—			1,266			3,459			170			—			1,177			3,140			346
Total revenues	20,851			4,761			17,902			2,130			20,921			4,492			17,565			2,406

Costs and expenses:
Depreciation and amortization	7,031			1,302			8,199			2,361			7,141			1,249			6,538			566
Operating	—			1,591			6,938			437			—			1,562			6,816			345
General and administrative	1,326			237			912			15			1,247			164			716			14
Total costs and expenses	8,357			3,130			16,049			2,813			8,388			2,975			14,070			925

Other income (expense):
Interest and other income, net	—			3			7			—			36			10			3			12
Interest expense	(9,617		)	(1,384		)	(5,441		)	(275		)	(9,835		)	(1,434		)	(5,506		)	(341		)
Net income (loss)	$	2,877		$	250		$	(3,581	)	$	(958	)	$	2,734		$	93		$	(2,008	)	$	1,152

See Reporting Definitions and Supplemental Financial Measures Disclosures

Investment Management Platform

In thousands

*Net Operating Income*
	Three Months Ended March 31, 2009											Three Months Ended March 31, 2008
	HCP		HCP			HCP			HCP			HCP			HCP			HCP			HCP
	Ventures II		Ventures III			Ventures IV			Life Science			Ventures II			Ventures III			Ventures IV			Life Science
Net income (loss)	$	2,877	$	250		$	(3,581	)	$	(958	)	$	2,734		$	93		$	(2,008	)	$	1,152
Depreciation and amortization	7,031		1,302			8,199			2,361			7,141			1,249			6,538			566
General and administrative	1,326		237			912			15			1,247			164			716			14
Interest and other income, net	—		(3		)	(7		)	—			(36		)	(10		)	(3		)	(12		)
Interest expense	9,617		1,384			5,441			275			9,835			1,434			5,506			341
NOI	$	20,851	$	3,170		$	10,964		$	1,693		$	20,921		$	2,930		$	10,749		$	2,061

HCP’s pro rata share of NOI	$	7,298	$	951		$	2,193		$	963		$	7,322		$	879		$	2,150		$	1,190

See Reporting Definitions and Supplemental Financial Measures Disclosures

Investment Management Platform

In thousands

*EBITDA*
	Three Months Ended March 31, 2009										Three Months Ended March 31, 2008
	HCP		HCP		HCP			HCP			HCP		HCP		HCP			HCP
	Ventures II		Ventures III		Ventures IV			Life Science			Ventures II		Ventures III		Ventures IV			Life Science
Net income (loss)	$	2,877	$	250	$	(3,581	)	$	(958	)	$	2,734	$	93	$	(2,008	)	$	1,152
Depreciation and amortization	7,031		1,302		8,199			2,361			7,141		1,249		6,538			566
Interest expense	9,617		1,384		5,441			275			9,835		1,434		5,506			341
EBITDA	$	19,525	$	2,936	$	10,059		$	1,678		$	19,710	$	2,776	$	10,036		$	2,059

HCP’s pro rata share of EBITDA	$	6,834	$	881	$	2,012		$	955		$	6,899	$	833	$	2,007		$	1,189

See Reporting Definitions and Supplemental Financial Measures Disclosures

Investment Management Platform

In thousands

*Mortgage Debt Maturities and Scheduled Principal Repayments* *March 31, 2009*
														HCP’s Share of
	HCP			HCP		HCP			HCP					Unconsolidated
	Ventures II			Ventures III		Ventures IV			Life Science		Total			Mortgage Debt

2009 (9 months)	$	7,097		$	—	$	705		$	2,173	$	9,975		$	3,886
2010	10,130			—		1,048			3,086		14,264			5,546
2011	10,726			—		2,743			3,309		16,778			6,224
2012	11,254			—		37,806			3,548		52,608			13,560
2013	118,124			—		8,451			2,630		129,205			44,508
2014	10,359			—		2,606			395		13,360			4,364
2015	10,969			—		56,156			—		67,125			15,070
2016	11,539			91,730		97,085			—		200,354			50,975
2017	476,766			—		173,898			—		650,664			201,648
Subtotal	666,964			91,730		380,498			15,141		1,154,333			345,781

Discounts, net	(470		)	—		(2,172		)	—		(2,642		)	(599		)
Total debt	$	666,494		$	91,730	$	378,326		$	15,141	$	1,151,691		$	345,182

HCP’s share of total debt	$	233,273		$	27,519	$	75,665		$	8,725	$	345,182

Weighted average interest rate(1)	5.66%			6.02%		5.56%			6.99%		5.67%			5.70%

Weighted average maturity in years	8.00			7.28		7.09			4.53		7.60			7.66

(1) Mortgage debt is 100% fixed rate debt.

See Reporting Definitions and Supplemental Financial Measures Disclosures

Owned Portfolio

As of and for the three months ended March 31, 2009, dollars and square feet in thousands

Portfolio Summary

	Property			Average			EBITDAR	EBITDARM
Segment	Count	Investment		Age (Years)	Capacity	Occupancy %	CFC/DSC	CFC/DSC
Senior housing	239	$	4,143,028	12	25,790 Units	88.6	1.13 x	1.37 x
Life science	96	2,817,301		15	6,126 Sq. Ft.	91.4	N/A	N/A
Medical office	187	2,124,046		17	12,912 Sq. Ft.	90.5	N/A	N/A
Hospital	19	1,010,130		22	2,521 Beds	56.9	2.70 x	3.12 x
Skilled nursing	51	1,172,307		24	6,093 Beds	86.1	1.56 x	2.11 x
	592	$	11,266,812	15

Portfolio Diversification

*Relationship Concentration*				*Geographic Concentration(1)***
	Annualized Revenues				Investment			Rental Revenues &		Interest		Operating
Company	Amount		%	State	Amount		%	DFL Income		Income		Expenses
Sunrise Senior Living	$	128,704	14	CA	$	3,669,699	36	$	82,408	$	72	$	15,255
HCA	69,849		7	TX	1,276,901		13	37,893		851		11,739
HCR ManorCare	60,984		6	FL	684,141		7	18,322		—		3,183
Brookdale	59,780		6	CO	394,088		4	10,743		370		3,046
Emeritus Corporation	42,585		5	VA	383,145		4	8,399		—		474
Genentech	34,321		4	WA	303,688		3	7,971		—		2,441
Amgen	25,224		3	NJ	280,589		3	4,657		—		—
Aegis Senior Living	19,980		2	UT	254,063		3	7,380		—		1,414
Tenet Healthcare Corporation	18,991		2	MD	211,082		2	4,926		—		403
Cirrus Health	16,157		2	Other	2,605,082		25	67,478		199		9,721
Kindred	15,704		2		$	10,062,478	100	$	250,177	$	1,492	$	47,676
Other	453,415		47
	$	945,694	100

(1) Geographic concentration excludes Mezzanine Loans and Other Debt Investments as the investment and revenues associated with those assets cannot be allocated to a particular geographic region.

See Reporting Definitions and Supplemental Financial Measures Disclosures

Owned Portfolio

As of and for the three months ended March 31, 2009, dollars and square feet in thousands

Operating Lease Portfolio

	Property			Rental		Operating		Average				EBITDAR			EBITDARM
Segment	Count	Investment		Revenues		Expenses		Age (Years)	Capacity		Occupancy %	Amount		CFC	Amount		CFC
Senior housing	204	$	3,495,543	$	69,012	$	2,701	12	22,316	Units	88.3	$	303,886	1.13 x	$	365,606	1.36 x
Life science	96	2,817,301		63,138		11,436		15	6,126	Sq. Ft.	91.4	N/A		N/A	N/A		N/A
Medical office	187	2,124,046		77,387		32,786		17	12,912	Sq. Ft.	90.5	N/A		N/A	N/A		N/A
Hospital	18	673,105		18,813		753		23	2,463	Beds	56.9	155,401		2.64 x	179,918		3.06 x
Skilled nursing	48	255,084		8,902		—		24	5,651	Beds	86.2	53,727		1.51 x	73,271		2.06 x
	553	$	9,365,079	$	237,252	$	47,676	16

Direct Financing Lease Portfolio

Property

Average

EBITDAR

EBITDARM

Segment

Count

Investment

DFL Income

Age (Years)

Capacity

Occupancy %

Amount

CFC

Amount

CFC

Senior housing

626,650

12,925

3,141

Units

90.9

42,956

1.15 x

54,125

1.44 x

Secured Loan Portfolio

	Property			Interest		Average				EBITDAR			EBITDARM
Segment	Count	Investment		Income		Age (Years)	Capacity		Occupancy %	Amount		DSC	Amount		DSC
Senior housing	5	$	20,835	$	326	16	333	Units	82.8	$	713	1.62 x	$	830	1.89 x
Hospital	1	35,308		750		10	58	Beds	58.3	11,089		3.69 x	12,963		4.32 x
Skilled nursing	3	14,606		416		30	442	Beds	84.5	5,684		2.29 x	7,093		2.86 x
	9	$	70,749	$	1,492	20				$	17,486		$	20,886

Mezzanine Loans and Other Debt Investments

				Interest
Segment		Investment		Income
Hospital		$	301,717	$	9,975
Skilled nursing		902,617		15,246
		$	1,204,334	$	25,221

Total	592	$	11,266,812

See Reporting Definitions and Supplemental Financial Measures Disclosures

Owned Portfolio

As of March 31, 2009, except NOI data, dollars and square feet in thousands

Same Property Portfolio

				Senior			Life		Medical					Skilled
	Total			Housing			Science		Office		Hospital			Nursing

Property count	548			203			93		186		18			48
Investment	$	9,175,245		$	3,484,625		$	2,655,837	$	2,106,594	$	673,105		$	255,084

Percent of operating lease portfolio (by investment)	98.0			99.7			94.3		99.2		100.0			100.0

Capacity				22,215 Units			5,896 Sq. Ft.		12,795 Sq. Ft.		2,463 Beds			5,651 Beds

NOI for the three months ended:
March 31, 2009	$	187,794		$	66,194		$	48,529	$	46,109	$	18,060		$	8,902
December 31, 2008	$	196,522		$	76,311		$	46,916	$	43,513	$	20,782		$	9,000
Same property % change in NOI	(4.4		)	(13.3		)	3.4		6.0		(13.1		)	(1.1		)

Adjusted NOI for the three months ended:
March 31, 2009	$	174,613		$	60,701		$	44,105	$	44,568	$	16,327		$	8,912
December 31, 2008	$	184,151		$	72,523		$	40,251	$	42,020	$	20,456		$	8,901
Same property % change in Adjusted NOI	(5.2		)	(16.3		)	9.6		6.1		(20.2		)	0.1

NOI for the three months ended:
March 31, 2009	$	187,794		$	66,194		$	48,529	$	46,109	$	18,060		$	8,902
March 31, 2008	$	181,438		$	67,996		$	41,785	$	44,193	$	18,685		$	8,779
Same property % change in NOI	3.5			(2.7		)	16.1		4.3		(3.3		)	1.4

Adjusted NOI for the Three months ended:
March 31, 2009	$	174,613		$	60,701		$	44,105	$	44,568	$	16,327		$	8,912
March 31, 2008	$	169,577		$	64,414		$	36,015	$	42,165	$	18,334		$	8,649
Same property % change in Adjusted NOI	3.0			(5.8		)	22.5		5.7		(10.9		)	3.0

See Reporting Definitions and Supplemental Financial Measures Disclosures

Owned Portfolio

As of and for the three months ended March 31, 2009, dollars and square feet in thousands

Lease Expirations and Secured Loan Maturities

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

Senior housing:
Properties	239		3		5		4		4		6		8		2		24		26		67		90
Annualized revenues	$	320,687	$	576	$	909	$	1,099	$	1,075	$	24,832	$	15,600	$	3,174	$	26,976	$	31,510	$	109,461	$	105,475

Life science:
Square feet	5,599		316		567		415		233		216		249		595		263		733		411		1,601
Annualized revenues	$	194,820	$	7,678	$	12,770	$	14,119	$	4,850	$	7,204	$	5,794	$	18,064	$	8,187	$	23,802	$	22,826	$	69,526

Medical office:
Square feet	11,691		1,682		1,940		1,363		1,508		1,254		805		618		431		468		709		913
Annualized revenues	$	237,674	$	34,211	$	40,343	$	29,443	$	30,859	$	22,910	$	18,988	$	12,222	$	8,970	$	10,380	$	13,233	$	16,115

Hospital:
Properties	19		—		1		—		—		1		3		1		1		2		—		10
Annualized revenues	$	55,055	$	—	$	2,973	$	—	$	—	$	2,400	$	16,018	$	377	$	3,001	$	4,413	$	—	$	25,873

Skilled nursing:
Properties	51		1		2		—		—		10		12		5		5		9		4		3
Annualized revenues	$	37,144	$	183	$	1,481	$	—	$	—	$	6,940	$	7,952	$	3,229	$	4,868	$	7,953	$	2,196	$	2,342

Total:
Annualized revenues	$	845,380	$	42,648	$	58,476	$	44,661	$	36,784	$	64,286	$	64,352	$	37,066	$	52,002	$	78,058	$	147,716	$	219,331

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

See Reporting Definitions and Supplemental Financial Measures Disclosures

Owned Senior Housing Portfolio

As of and for the three months ended March 31, 2009, dollars in thousands

Operating Lease	Property			Rental		Operating		Average			EBITDAR			EBITDARM
Portfolio	Count	Investment		Revenues		Expenses		Age (Years)	Units	Occupancy %	Amount		CFC	Amount		CFC
Assisted living	167	$	2,273,539	$	45,041	$	2,659	11	14,203	87.5	$	187,082	1.11 x	$	228,541	1.35 x
Independent living	28	682,030		11,749		23		15	4,581	87.6	55,755		1.03 x	64,448		1.19 x
CCRCs	9	539,974		12,222		19		21	3,532	92.5	61,049		1.34 x	72,617		1.60 x
	204	$	3,495,543	$	69,012	$	2,701	12	22,316	88.3	$	303,886	1.13 x	$	365,606	1.36 x

Direct Financing Lease	Property							Average			EBITDAR			EBITDARM
Portfolio	Count	Investment		DFL Income				Age (Years)	Units	Occupancy %	Amount		CFC	Amount		CFC
Assisted living	27	$	570,450	$	11,950			12	3,141	90.9	$	42,956	1.15 x	$	54,125	1.44 x
CCRCs(1)	3	56,200		975
	30	$	626,650	$	12,925

Secured Loan	Property			Interest				Average			EBITDAR			EBITDARM
Portfolio	Count	Investment		Income				Age (Years)	Units	Occupancy %	Amount		DSC	Amount		DSC
Assisted living	4	$	8,251	$	146			14	233	N/A	$	N/A	N/A	$	N/A	N/A
Independent living	1	2,996		79				25	100	82.8	713		1.62 x	830		1.89 x
CCRCs(2)	N/A	9,588		101					N/A	N/A
	5	$	20,835	$	326			16	333

Total	239	$	4,143,028					12	25,790	88.6

(1) Represents ground leases on CCRCs.

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

See Reporting Definitions and Supplemental Financial Measures Disclosures

Owned Senior Housing Portfolio

As of and for the three months ended March 31, 2009, dollars in thousands

Portfolio Diversification

Operator Concentration

	Properties			Investment				Rental Revenues & Interest Income					EBITAR	EBITARM
Operator	Count	% Pooled		Amount		%		Amount		%	Units	Occupancy %	CFC/DSC	CFC/DSC
Sunrise Senior Living	90	99		$	1,941,334	47		$	28,473	35	10,267	90.0	1.10 x	1.37 x
Brookdale	24	92		675,054		16		16,824		20	4,825	91.5	1.27 x	1.50 x
Emeritus Corporation	38	84		536,380		13		14,607		18	3,885	89.9	1.18 x	1.42 x
Aegis Senior Living	12	67		258,008		6		5,644		7	966	87.6	1.00 x	1.16 x
Capital Senior Living	15	73		176,517		4		3,727		5	1,530	83.2	1.09 x	1.25 x
Harbor Retirement Associates	10	90		160,679		4		2,745		3	1,069	78.9	1.05 x	1.37 x
Atria Senior Living Group	6	100		88,076		2		2,239		3	854	82.8	0.93 x	1.08 x
Other	44	48		306,980		8		8,004		9	2,394	76.2	1.10 x	1.35 x
	239	83		$	4,143,028	100		$	82,263	100	25,790	88.6	1.13 x	1.37 x

Geographic Concentration

	Property	Investment				Rental Revenues & Interest Income					Occupancy	EBITAR	EBITARM
State	Count	Amount		%		Amount		%		Units	%	CFC/DSC	CFC/DSC
CA	28	$	582,955	14		$	11,009	13		3,176	84.5	1.01 x	1.26 x
FL	30	479,323		12		11,043		13		3,820	87.0	1.21 x	1.46 x
TX	30	382,039		9		8,625		10		3,257	87.1	1.15 x	1.35 x
NJ	13	280,589		7		4,657		6		1,223	93.9	1.18 x	1.39 x
VA	10	279,059		7		4,974		6		1,335	91.4	1.14 x	1.35 x
IL	11	187,218		5		4,118		5		912	90.1	1.25 x	1.48 x
MD	9	182,087		4		3,692		4		827	91.2	1.07 x	1.30 x
CO	5	168,931		4		3,293		4		893	90.1	1.24 x	1.52 x
MI	8	155,136		4		3,025		4		938	85.8	0.77 x	1.02 x
PA	2	137,400		3		3,218		4		542	94.1	1.58 x	1.85 x
AL	4	137,100		3		3,112		4		681	90.5	1.17 x	1.34 x
WA	8	132,609		3		1,367		2		573	85.0	0.67 x	0.88 x
Other	81	1,038,582		25		20,130		25		7,613	89.7	1.19 x	1.45 x
	239	$	4,143,028	100		$	82,263	100		25,790	88.6	1.13 x	1.37 x

See Reporting Definitions and Supplemental Financial Measures Disclosures

Owned Senior Housing Portfolio

Dollars in thousands

Portfolio Trends

	Same Property Portfolio																Total Portfolio
	As of and for the Quarter Ended								As of and for the Quarter Ended								As of and for the Twelve Months Ended
	03/31/09			12/31/08			Change %		03/31/09			03/31/08			Change %		03/31/09		12/31/08(1)		03/31/08(1)

Total senior housing:
Property count	203			203					203			203					239		239		240
Investment	$	3,484,625		$	3,483,155		—		$	3,484,625		$	3,477,639		0.2		$	4,143,028	$	4,145,965	$	4,150,949
Units	22,215			22,270			(0.2	)	22,215			22,304			(0.4	)	25,790		25,822		25,828
Occupancy %	88.3			89.0			(0.7	)	88.3			90.3			(2.0	)	88.6		89.3		90.2
EBITDAR	$	302,928		$	311,124		(2.6	)	$	302,928		$	288,498		5.0		$	347,555	$	357,874	$	326,172
EBITDAR CFC/DSC	1.13 x			1.16 x			(2.6	)	1.13 x			1.13 x			—		1.13 x		1.17 x		1.12 x
EBITDARM	$	364,496		$	375,673		(3.0	)	$	364,496		$	348,983		4.4		$	420,561	$	433,954	$	397,664
EBITDARM CFC/DSC	1.36 x			1.41 x			(3.5	)	1.36 x			1.37 x			(0.7	)	1.37 x		1.42 x		1.36 x
NOI:
Rental revenues	$	68,732		$	78,798		(12.8	)	$	68,732		$	70,528		(2.5	)
Operating expenses	(2,538		)	(2,487		)	2.1		(2,538		)	(2,532		)	0.2
	$	66,194		$	76,311		(13.3	)	$	66,194		$	67,996		(2.7	)
Adjusted NOI:
Straight-line rents	(5,402		)	(3,761		)	43.6		(5,402		)	(3,619		)	49.3
Above (below) market lease intangibles, net	(91		)	(27		)	NM	(2)	(91		)	37			NM
	$	60,701		$	72,523		(16.3	)	$	60,701		$	64,414		(5.8	)

(1) Amounts are reflected as originally reported.

(2) Percentage change not meaningful.

See Reporting Definitions and Supplemental Financial Measures Disclosures

Owned Senior Housing Portfolio

Dollars in thousands

Lease Expirations and Secured Loan Maturities

	Total				Assisted Living			Independent Living			CCRCs
		Annualized Revenues				Annualized			Annualized			Annualized
Year	Properties	Amount		%	Properties	Revenues		Properties	Revenues		Properties	Revenues
2009 (9 months)	3	$	576	—	3	$	576	—	$	—	—	$	—
2010	5	909		—	5	909		—	—		—	—
2011	4	1,099		—	3	785		1	314		—	—
2012	4	1,075		—	4	1,075		—	—		—	—
2013	6	24,832		8	—	—		1	4,243		5	20,589
2014	8	15,600		5	5	1,948		—	—		3	13,652
2015	2	3,174		1	1	617		1	2,557		—	—
2016	24	26,976		8	14	13,353		10	13,623		—	—
2017	26	31,510		10	21	20,120		3	4,467		2	6,923
2018	67	109,461		34	59	78,645		6	16,507		2	14,309
Thereafter	90	105,475		34	83	93,918		7	11,557		—	—
	239	$	320,687	100	198	$	211,946	29	$	53,268	12	$	55,473

See Reporting Definitions and Supplemental Financial Measures Disclosures

Owned Life Science Portfolio

As of and for the three months ended March 31, 2009, dollars and square feet in thousands

Operating Lease	Property			Rental		Operating		Average	Square
Portfolio	Count	Investment		Revenues(1)		Expenses		Age (Years)	Feet	Occupancy %
San Francisco	70	$	2,230,508	$	49,955	$	8,545	15	4,160	89.9
San Diego	17	496,526		10,676		2,529		18	1,382	92.4
Utah	9	90,267		2,507		362		9	584	100.0
	96	$	2,817,301	$	63,138	$	11,436	15	6,126	91.4

Portfolio Diversification

Tenant Concentration

	Square Feet		Annualized Revenues
Tenant	Amount	%	Amount		%
Genentech	794	14	$	34,321	18
Amgen	433	8	25,224		13
Rigel Pharmaceuticals	147	3	14,437		7
Takeda	283	5	14,321		7
Exelixis, Inc.	295	5	12,327		6
General Atomics	281	5	5,153		3
ARUP	324	6	4,995		3
Sequenom	83	1	4,583		2
Myriad Genetics	225	4	4,406		2
NuVasive, Inc.	145	3	4,235		2
Other	2,589	46	70,818		37
	5,599	100	$	194,820	100

(1) Excludes $5.3 million of rent, $4.8 million from San Francisco and $0.5 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.

See Reporting Definitions and Supplemental Financial Measures Disclosures

Owned Life Science Portfolio

Dollars and square feet in thousands

Portfolio Trends

	Same Property Portfolio																Total Portfolio
	As of and for the Quarter Ended								As of and for the Quarter Ended								At the Period Ended
	03/31/09			12/31/08			Change %		03/31/09			03/31/08			Change %		03/31/09		12/31/08(1)		03/31/08(1)
Total life science:
Property count	93			93					93			93					96		96		97
Investment	$	2,655,837		$	2,649,177		0.3		$	2,655,837		$	2,616,162		1.5		$	2,817,301	$	2,810,577	$	2,660,989
Square feet	5,896			5,896			—		5,896			5,900			(0.1	)	6,126		6,126		6,024
Occupancy %	91.1			90.7			0.4		91.1			88.4			2.7		91.4		91.1		87.7
NOI:
Rental revenues	$	58,675		$	57,656		1.8		$	58,675		$	52,490		11.8
Operating expenses	(10,146		)	(10,740		)	(5.5	)	(10,146		)	(10,705		)	(5.2	)
	$	48,529		$	46,916		3.4		$	48,529		$	41,785		16.1
Adjusted NOI:
Straight-line rents	(3,159		)	(5,442		)	(42.0	)	(3,159		)	(4,334		)	(27.1	)
Below market lease intangibles, net	(1,265		)	(1,223		)	3.4		(1,265		)	(1,436		)	(11.9	)
	$	44,105		$	40,251		9.6		$	44,105		$	36,015		22.5

(1) Amounts are reflected as originally reported, except for March 31, 2008 occupancy which was revised to conform to current presentation.

See Reporting Definitions and Supplemental Financial Measures Disclosures

Owned Life Science Portfolio

Dollars and square feet in thousands

Lease Expirations

	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 (9 months)(1)	316	6	$	7,678	4	157	$	4,323	159	$	3,355	—	$	—
2010	567	10	12,770		7	289	7,577		142	3,206		136	1,987
2011	415	7	14,119		7	385	13,164		30	955		—	—
2012	233	4	4,850		2	144	3,083		53	1,485		36	282
2013	216	4	7,204		4	216	7,204		—	—		—	—
2014	249	4	5,794		3	249	5,794		—	—		—	—
2015	595	11	18,064		9	213	8,126		311	8,742		71	1,196
2016	263	5	8,187		4	263	8,187		—	—		—	—
2017	733	13	23,802		12	226	10,322		353	10,655		154	2,825
2018	411	7	22,826		12	369	22,028		—	—		42	798
Thereafter	1,601	29	69,526		36	1,228	59,545		228	7,386		145	2,595
	5,599	100	$	194,820	100	3,739	$	149,353	1,276	$	35,784	584	$	9,683

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

See Reporting Definitions and Supplemental Financial Measures Disclosures

Owned Life Science Portfolio

Square feet in thousands

Leasing Activity

			Annualized				Tenant
	Leased		Base Rent		%		Improvements		Leasing		Average
	Square		Per		Change		Per Square		Costs Per		Lease Term	Renewal Rate
	Feet		Square Foot		In Rents		Foot		Square Foot		(Months)	Year-to-Date

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

See Reporting Definitions and Supplemental Financial Measures Disclosures

Owned Medical Office Portfolio

As of and for the three months ended March 31, 2009, dollars and square feet in thousands

	Property			Rental		Operating		Average
Operating Lease Portfolio	Count	Investment		Revenues		Expenses		Age (Years)	Square Feet	Occupancy %
On-Campus	143	$	1,711,499	$	63,783	$	28,589	17	10,755	89.7
Off-Campus	44	412,547		13,604		4,197		17	2,157	94.5
	187	$	2,124,046	$	77,387	$	32,786	17	12,912	90.5

Portfolio Diversification

Geographic Concentration

	Property	Investment			Square Feet			Rental Revenues			Operating Expenses
State	Count	Amount		%	Amount	%	Occupancy %	Amount		%	Amount		%
TX	45	$	631,960	30	4,075	32	90.0	$	22,412	29	$	10,970	33
CA	14	216,471		10	780	6	91.3	6,982		9	4,033		12
CO	16	188,112		9	1,031	8	85.7	6,722		9	3,046		9
WA	6	171,080		8	647	5	98.2	6,604		9	2,440		7
TN	17	142,787		7	1,500	12	91.1	6,405		8	2,688		8
FL	19	142,369		7	1,024	8	90.3	5,934		8	2,619		8
UT	22	131,062		6	939	7	92.7	4,310		6	1,052		3
KY	6	100,670		5	640	5	91.8	3,135		4	1,156		4
NV	8	85,552		4	541	4	84.6	3,440		4	1,017		3
Other	34	313,983		14	1,735	13	91.6	11,443		14	3,765		13
	187	$	2,124,046	100	12,912	100	90.5	$	77,387	100	$	32,786	100

See Reporting Definitions and Supplemental Financial Measures Disclosures

Owned Medical Office Portfolio

Dollars and square feet in thousands

Portfolio Trends

	Same Property Portfolio																Total Portfolio
	As of and for the Quarter Ended								As of and for the Quarter Ended								At the Period Ended
	03/31/09			12/31/08			Change %		03/31/09			03/31/08			Change %		03/31/09		12/31/08(1)		03/31/08(1)
Total medical office:
Property count	186			186					186			186					187		188		205
Investment	$	2,106,594		$	2,102,773		0.2		$	2,106,594		$	2,081,128		1.2		$	2,124,046	$	2,125,280	$	2,232,462
Square feet	12,795			12,794			—		12,795			12,798			—		12,912		12,952		13,896
Occupancy %	90.8			90.8			—		90.8			90.9			(0.1	)	90.5		90.3		90.0
NOI:
Rental revenues	$	76,844		$	74,817		2.7		$	76,844		$	74,348		3.4
Operating expenses	(30,735		)	(31,304		)	(1.8	)	(30,735		)	(30,155		)	1.9
	$	46,109		$	43,513		6.0		$	46,109		$	44,193		4.3
Adjusted NOI:
Straight-line rents	(728		)	(780		)	(6.7	)	(728		)	(1,314		)	(44.6	)
Below market lease intangibles, net	(752		)	(713		)	5.5		(752		)	(714		)	5.3
Lease terminations	(61		)	—			NM	(2)	(61		)	—			NM
	$	44,568		$	42,020		6.1		$	44,568		$	42,165		5.7

(1) Amounts are reflected as originally reported, except occupancy which was revised to conform to current presentation.

(2) Percentage change not meaningful.

See Reporting Definitions and Supplemental Financial Measures Disclosures

Owned Medical Office Portfolio

Dollars and square feet in thousands

Lease Expirations

	Total					On-Campus			Off-Campus
	Square Feet		Annualized Revenues				Annualized			Annualized
	Amount	%	Amount		%	Square Feet	Revenues		Square Feet	Revenues
2009 (9 months)(1)	1,682	14	$	34,211	14	1,382	$	28,108	300	$	6,103
2010	1,940	17	40,343		17	1,752	35,377		188	4,966
2011	1,363	12	29,443		12	1,166	25,204		197	4,239
2012	1,508	13	30,859		13	1,304	26,793		204	4,066
2013	1,254	11	22,910		10	1,016	18,304		238	4,606
2014	805	7	18,988		8	691	16,138		114	2,850
2015	618	5	12,222		5	461	8,959		157	3,263
2016	431	4	8,970		4	358	7,419		73	1,551
2017	468	4	10,380		4	391	8,855		77	1,525
2018	709	6	13,233		6	467	8,228		242	5,005
Thereafter	913	7	16,115		7	664	10,527		249	5,588
	11,691	100	$	237,674	100	9,652	$	193,912	2,039	$	43,762

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

See Reporting Definitions and Supplemental Financial Measures Disclosures

Owned Medical Office Portfolio

Square feet in thousands

Leasing Activity

			Annualized			Tenant
			Base Rent			Improvements		Leasing		Average
	Leased		Per		% Change	Per Square		Costs Per		Lease Term	Renewal Rate
	Square Feet		Square Foot		In Rents	Foot		Square Foot		(Months)	Year-to-Date

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

See Reporting Definitions and Supplemental Financial Measures Disclosures

Owned Hospital Portfolio

As of and for the three months ended March 31, 2009, dollars in thousands

Operating Lease	Property			Rental		Operating		Average		Occupancy	EBITDAR(1)			EBITDARM(1)
Portfolio	Count	Investment		Revenues		Expenses		Age (Years)	Beds	%(1)	Amount		CFC	Amount		CFC
Acute care	6	$	478,505	$	13,449	$	753	31	1,695	55.5	$	99,554	2.56 x	$	114,374	2.94 x
Rehab	7	95,322		2,084		—		18	487	59.8	21,656		2.60 x	24,782		2.97 x
Specialty	2	64,073		1,281		—		25	37	—	23,446		4.96 x	26,250		5.55 x
LTACH	3	35,205		1,999		—		15	244	58.5	10,745		1.59 x	14,512		2.15 x
	18	$	673,105	$	18,813	$	753	23	2,463	56.9	$	155,401	2.64 x	$	179,918	3.06 x

Secured Loan	Property			Interest				Average		Occupancy	EBITDAR(1)			EBITDARM(1)
Portfolio	Count	Investment		Income				Age (Years)	Beds	%(1)	Amount		DSC	Amount		DSC
Acute care	1	$	35,308	$	750			10	58	58.3	$	11,089	3.69 x	$	12,963	4.32 x

Other Debt				Interest
Investments		Investment		Income
Acute care		$	220,908	$	6,666
Specialty		80,809		3,309
		$	301,717	$	9,975

Total	19	$	1,010,130					22	2,521	56.9

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

See Reporting Definitions and Supplemental Financial Measures Disclosures

Owned Hospital Portfolio

As of and for the three months ended March 31, 2009, dollars in thousands

Portfolio Diversification

Operator Concentration

	Properties			Investment				Rental Revenues & Interest Income				Occupancy	EBITDAR	EBITDARM
Operator(1)	Count	% Pooled		Amount		%		Amount		%	Beds	%	CFC/DSC	CFC/DSC
HCA	1	—		$	386,980	38		$	12,303	42	598	N/A	N/A	N/A
Tenet Healthcare Corp	4	—		223,633		22		5,223		18	921	59.4	3.31 x	3.79 x
Cirrus Health	2	—		130,782		13		4,128		14	37	N/A	4.96 x	5.55 x
HealthSouth	5	60		55,981		6		2,084		7	372	59.8	2.60 x	2.97 x
Other	7	43		212,754		21		5,800		19	593	40.2	1.48 x	1.83 x
	19	32		$	1,010,130	100		$	29,538	100	2,521	56.9	2.70 x	3.12 x

Geographic Concentration(1)(2)

	Property	Investment				Rental Revenues & Interest Income					Occupancy	EBITDAR	EBITDARM
State	Count	Amount		%		Amount		%		Beds	%	CFC/DSC	CFC/DSC
TX	5	$	260,084	37		$	7,604	39		947	53.9	2.58 x	3.15 x
CA	2	128,893		18		3,317		17		176	35.2	1.46 x	1.71 x
GA	2	76,735		11		2,449		13		274	61.0	3.63 x	4.06 x
LA	3	60,400		9		1,365		7		244	49.0	2.28 x	2.71 x
Other	7	182,301		25		4,828		24		880	62.4	3.20 x	3.69 x
	19	$	708,413	100		$	19,563	100		2,521	56.9	2.70 x	3.12 x

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

(2) Geographic concentration excludes Other Debt Investments as the investment and revenues associated with those assets cannot be allocated to a particular geographic region.

See Reporting Definitions and Supplemental Financial Measures Disclosures

Owned Hospital Portfolio

Dollars in thousands

Portfolio Trends

	Same Property Portfolio																Total Portfolio
	As of and for the Quarter Ended								As of and for the Quarter Ended								As of and for the Twelve Months Ended
	03/31/09			12/31/08			Change %		03/31/09			03/31/08			Change %		03/31/09		12/31/08(1)		03/31/08(1)

Total hospital:	18			18					18			18					19		20		23
Property count	$	673,105		$	672,760		0.1		$	673,105		$	667,925		0.8		$	1,010,130	$	1,008,506	$	1,188,452
Investment	2,463			2,463			—		2,463			2,442			0.9		2,521		2,620		3,239
Beds	56.9			58.9			(2.0	)	56.9			57.6			(0.7	)	56.9		58.5		52.4
Occupancy %	$	155,402		$	155,430		—		$	155,402		$	164,159		(5.3	)	$	166,490	$	164,873	$	180,716
EBITDAR	2.64 x			2.54 x			3.9		2.64 x			2.78 x			(5.0	)	2.70 x		2.58 x		2.27 x
EBITDAR CFC/DSC	$	179,918		$	181,506		(0.9	)	$	179,918		$	189,821		(5.2	)	$	192,881	$	192,414	$	213,852
EBITDARM	3.06 x			2.97 x			3.0		3.06 x			3.21 x			(4.7	)	3.12 x		3.01 x		2.69 x
EBITDARM CFC/DSC
NOI :
Rental revenues	$	18,813		$	21,238		(11.4	)	$	18,813		$	19,499		(3.5	)
Operating expenses	(753		)	(456		)	65.1		(753		)	(814		)	(7.5	)
	$	18,060		$	20,782		(13.1	)	$	18,060		$	18,685		(3.3	)
Adjusted NOI:
Straight-line rents	(1,515		)	(108		)	NM	(2)	(1,515		)	(133		)	NM
Below market lease intangibles, net	(218		)	(218		)	—		(218		)	(218		)	—
	$	16,327		$	20,456		(20.2	)	$	16,327		$	18,334		(10.9	)

Lease Expirations and Secured Loan Maturities

				Annualized Revenues
	Properties			Amount			%
2009 (9 months)	—			$	—		—
2010	1			2,973			5
2011	—			—			—
2012	—			—			—
2013	1			2,400			4
2014	3			16,018			29
2015	1			377			1
2016	1			3,001			5
2017	2			4,413			8
2018	—			—			—
Thereafter	10			25,873			48
	19			$	55,055		100

(1) Amounts are reflected as originally reported.

(2) Percentage change not meaningful.

See Reporting Definitions and Supplemental Financial Measures Disclosures

Owned Skilled Nursing Portfolio

As of and for the three months ended March 31, 2009, dollars in thousands

Operating Lease	Property			Rental		Average		Occupancy	EBITDAR			EBITDARM
Portfolio	Count	Investment		Revenues		Age (Years)	Beds	%	Amount		CFC	Amount		CFC
Skilled nursing	48	$	255,084	$	8,902	24	5,651	86.2	$	53,727	1.51 x	$	73,271	2.06 x

Secured Loan	Property			Interest		Average		Occupancy	EBITDAR			EBITDARM
Portfolio	Count	Investment		Income		Age (Years)	Beds	%	Amount		DSC	Amount		DSC
Skilled nursing	3	$	14,606	$	416	30	442	84.5	$	5,684	2.29 x	$	7,093	2.86 x

				Interest
Mezzanine Loans		Investment		Income
Skilled nursing		$	902,617	$	15,246

Total	51	$	1,172,307			24	6,093	86.1

Portfolio Diversification

	Properties		Investment			Rental Revenues & Interest Income				Occupancy	EBITDAR	EBITDARM
Operator	Count	% Pooled	Amount		%	Amount		%	Beds	%	CFC/DSC	CFC/DSC
HCR ManorCare(1)	—	—	$	902,617	77	$	15,246	62	N/A	N/A	N/A	N/A
Formation Capital	9	100	63,100		6	1,711		7	934	95.0	1.80 x	2.30 x
Covenant Care	12	—	62,318		5	2,194		9	1,373	81.4	1.49 x	2.03 x
Sun Healthcare	6	67	38,461		3	1,099		4	841	83.8	2.28 x	2.82 x
Kindred	9	100	38,117		3	2,018		8	1,288	87.7	1.39 x	2.07 x
Trilogy Health Services	5	100	33,351		3	1,184		5	539	92.2	1.44 x	1.82 x
Other	10	50	34,343		3	1,112		5	1,118	80.6	0.97 x	1.58 x
	51	63	$	1,172,307	100	$	24,564	100	6,093	86.1	1.56 x	2.11 x

(1) For the Company’s HCR ManorCare investment, DSC is calculated as the quotient of i) Facility EBITDAR with an imputed management fee of 4% and EBITDARM for the most recent trailing twelve months divided by ii) the borrower’s actual debt service. Currently, the EBITDAR and EBITDARM DSC for this investment is 2.12 x and 2.64x, respectively.

See Reporting Definitions and Supplemental Financial Measures Disclosures

Owned Skilled Nursing Portfolio

As of and for the three months ended March 31, 2009, dollars in thousands

Geographic Concentration(1)

	Property		Investment					Rental Revenues & Interest Income									EBITDAR		EBITDARM
State	Count		Amount			%		Amount		%			Beds		Occupancy		CFC/DSC		CFC/DSC
VA	9		$	63,100		23		$	1,711	18			934		95.0		1.80 x		2.30 x
IN	8		45,989			17		1,669		18			846		86.1		1.37 x		1.80 x
OH	8		43,689			16		1,764		19			1,120		77.5		1.20 x		1.72 x
CO	4		28,016			10		762		8			602		90.6		2.49 x		3.07 x
CA	3		14,347			5		540		6			379		87.6		1.47 x		2.13 x
NV	2		13,100			5		463		5			267		90.3		1.90 x		2.54 x
Other	17		61,449			24		2,409		26			1,945		83.6		1.36 x		1.99 x
	51		$	269,690		100		$	9,318	100			6,093		86.1		1.56 x		2.11 x

Portfolio Trends

	Same Property Portfolio														Total Portfolio
	As of and for the Quarter Ended							As of and for the Quarter Ended							As of and for the Twelve Months Ended
	03/31/09		12/31/08			Change %		03/31/09		03/31/08			Change %		03/31/09		12/31/08(2)		03/31/08(2)
Total skilled nursing:
Property count	48		48					48		48					51		51		51
Investment	$	255,084	$	254,682		0.2		$	255,084	$	242,058		5.4		$	1,172,307	$	1,172,212	$	1,160,284
Beds	5,651		5,658			(0.1	)	5,651		5,237			7.9		6,093		6,123		6,050
Occupancy %	86.2		86.3			(0.1	)	86.2		86.3			(0.1	)	86.1		86.0		85.9
EBITDAR	$	53,727	$	51,428		4.5		$	53,727	$	46,161		16.4		$	59,411	$	57,480	$	51,416
EBITAR CFC/DSC	1.51 x		1.45 x			4.1		1.51 x		1.39 x			8.6		1.56 x		1.51 x		1.44 x
EBITDARM	$	73,271	$	71,213		2.9		$	73,271	$	64,301		14.0		$	80,364	$	78,658	$	70,866
EBITDARM CFC/DSC	2.06 x		2.01 x			2.5		2.06 x		1.94 x			6.2		2.11 x		2.07 x		1.98 x
NOI:
Rental revenues	$	8,902	$	9,000		(1.1	)	$	8,902	$	8,779		1.4

Adjusted NOI:
Straight-line rents	10		(99		)	NM	(3)	10		(159		)	NM
Above market lease intangibles, net	—		—			—		—		29			(100.0	)
	$	8,912	$	8,901		0.1		$	8,912	$	8,649		3.0

(1) Geographic concentration excludes Mezzanine Loans as the investment and revenues associated with these assets cannot be allocated to a particular geographic region.

(2) Amounts are reflected as originally reported.

(3) Percentage change not meaningful.

See Reporting Definitions and Supplemental Financial Measures Disclosures

Investment Management Platform

As of and for the three months ended March 31, 2009, dollars and square feet in thousands

	Property Count			Rental Revenues		Operatin Expenses		Average Age (Years)			EBITDAR			EBITDARM
HCP Ventures II (35%)(1)	Property Count	Investment		Rental Revenues		Operatin Expenses		Average Age (Years)	Units	Occupancy %	Amount		CFC	Amount		CFC
Assisted living	2	$	11,077	$	227			13	111	89.8	$	547	0.69 x	$	746	0.95 x
Independent living	20	978,522		18,498				19	5,074	93.8	63,151		0.97 x	70,774		1.08 x
CCRCs	3	107,668		2,126				14	444	90.3	6,727		0.90 x	7,757		1.04 x
	25	$	1,097,267	$	20,851			18	5,629	93.4	$	70,425	0.96 x	$	79,277	1.08 x

	Property Count			Rental Revenues		Operating Expenses		Average Age (Years)
HCP Ventures III (30%)	Property Count	Investment		Rental Revenues		Operating Expenses		Average Age (Years)	Square Feet	Occupancy %
On-Campus	9	$	108,607	$	3,540	$	1,165	8	606	100.0
Off-Campus	4	32,482		1,221		426		8	183	100.0
	13	$	141,089	$	4,761	$	1,591	8	789	100.0

	Property Count			Rental Revenues		Operating Expenses		Average
HCP Ventures IV (20%)	Property Count	Investment		Rental Revenues		Operating Expenses		Age (Years)	Square Feet(2)	Occupancy %(2)
Medical office:
On-Campus	23	$	227,648	$	6,136	$	2,971	20	1,212	80.3
Off-Campus	31	346,783		9,518		3,668		17	1,478	88.0

Hospital:
LTACH	1	12,184		466		51		2	N/A	N/A
Rehab	1	13,965		313		75		3	N/A	N/A
Specialty	2	55,224		1,469		173		4	N/A	N/A
	58	$	655,804	$	17,902	$	6,938	17

	Property Count			Rental Revenues		Operating Expenses		Average
HCP Life Science (50%-63%)	Property Count	Investment		Rental Revenues		Operating Expenses		Age (Years)	Square Feet	Occupancy %
San Francisco	2	$	40,560	$	1,172	$	313	12	147	100.0
San Diego	2	39,924		958		124		13	131	96.8
	4	$	80,484	$	2,130	$	437	13	278	98.5

(1)	All facilities are operated by Horizon Bay Senior Communities.
(2)	Certain operators in the Investment Management Platform hospital portfolio are not required under their respective leases to provide operational data.

See Reporting Definitions and Supplemental Financial Measures Disclosures

Investment Management Platform

As of and for the three months ended March 31, 2009, dollars in thousands

Portfolio Diversification

Geographic Concentration

	Investment			Rental		Operating
State	Amount		%	Revenues		Expenses
TX	$	609,326	31	$	15,183	$	3,604
FL	435,794		22	9,295		1,364
IL	235,452		12	4,936		536
RI	200,885		10	4,067		—
CA	154,334		8	3,450		436
AZ	113,672		5	2,439		679
AL	58,398		3	1,769		546
TN	35,014		2	1,055		426
MO	33,350		2	847		336
NC	23,855		1	497		79
Other	74,564		4	2,106		960
	$	1,974,644	100	$	45,644	$	8,966

See Reporting Definitions and Supplemental Financial Measures Disclosures

Reporting Definitions

Acute Care Hospitals. Acute care hospitals offer a wide range of services such as fully-equipped operating and recovery rooms, obstetrics, radiology, intensive care, open heart surgery and coronary care, neurosurgery, neonatal intensive care, magnetic resonance imaging, nursing units, oncology, clinical laboratories, respiratory therapy, physical therapy, nuclear medicine, rehabilitation services and outpatient services.

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 Secured Loan 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.

Book Value. The carrying amount as reported in the Company’s financial statements.

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 Book Capitalization. The carrying amount of (i) Consolidated Debt, plus (ii) noncontrolling interests, plus (iii) stockholders’ equity, 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 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 debt secured by real estate excluding debt on assets held for sale as reported in the Company’s consolidated financial statements.

Consolidated Undepreciated Book Capitalization. Consolidated Book Capitalization after adding back accumulated depreciation and amortization on the Company’s real estate assets, 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 Service. The periodic payment of interest expense and principal amortization on secured loans.

Debt Service Coverage (“DSC”). Facility EBITDAR or Facility EBITDARM 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 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.

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.

Reporting Definitions

Facility EBITDAR (“EBITDAR”). Earnings before interest, taxes, depreciation, amortization and rent for a particular facility accruing to the operator/tenant of the property (not the Company). The Company uses Facility EBITDAR in determining Cash Flow Coverage and Debt Service Coverage. Facility EBITDAR has limitations as an analytical tool. Facility EBITDAR does not reflect historical cash expenditures or future cash requirements for facility capital expenditures or contractual commitments. In addition, Facility EBITDAR 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 EBITDAR as a supplemental measure of the ability of those properties to generate sufficient liquidity to meet related obligations to the Company. Facility EBITDAR 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 EBITDARM (“EBITDARM”). 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). The Company uses Facility EBITDARM in determining Cash Flow Coverage and Debt Service Coverage. Facility EBITDARM has limitations as an analytical tool. Facility EBITDARM does not reflect historical cash expenditures or future cash requirements for facility capital expenditures or contractual commitments. In addition, Facility EBITDARM 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 EBITDARM 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.

GAAP. U.S. generally accepted accounting principles.

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 direct financing leases and debt investments, excluding interest accretion.

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.

Marketable Securities. The Company classifies its existing marketable equity and debt securities as available-for-sale in accordance with provisions of Statement of Financial Accounting Standards No. 115. These securities are carried at fair market value, with unrealized gains and losses reported in stockholders’ equity as a component of accumulated other comprehensive income.

MOB. Medical office building.

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 date reported. For hospitals, skilled nursing facilities and senior housing facilities, occupancy represents the facilities’ operating occupancy for the trailing twelve months of the most recent quarter of available data. 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.

Owned Portfolio. Represents owned properties, direct financing leases, loans and marketable debt securities, and excludes properties under and land held for future development.

Other Debt Investments. Marketable debt securities and loans not secured by real estate.

Percentage Pre-leased. Represents the percentage of a development project’s estimated square footage attributed to signed leases.

Reporting Definitions

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 90 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.

Renewal Rate. The Company defines renewal 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.

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

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.

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 Book Capitalization. Total Debt plus the carrying amount of noncontrolling interests plus the carrying amount of stockholders’ equity.

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

The following table details the calculation of Total Debt:

In thousands

	March 31,		December 31,
	2009		2008
Bank line of credit	$	235,000	$	150,000
Bridge and term loans	520,000		520,000
Senior unsecured notes	3,524,338		3,523,513
Mortgage debt	1,603,838		1,641,734
Other debt	101,047		102,209
Consolidated debt	5,984,223		5,937,456
HCP’s share of unconsolidated debt(1)	345,182		346,470
Total debt	$	6,329,405	$	6,283,926

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

	March 31,			December 31,
	2009			2008
Consolidated total assets	$	11,801,289		$	11,849,826
Investments in and advances to unconsolidated joint ventures	(267,350		)	(272,929		)
Accumulated depreciation and amortization	1,064,536			994,426
Accumulated depreciation and amortization from assets held for sale	17,402			24,257
Consolidated gross assets	$	12,615,877		$	12,595,580
HCP’s share of unconsolidated total assets(1)	556,464			561,397
HCP’s share of unconsolidated accumulated depreciation and amortization(1)	51,685			46,629
Total gross assets	$	13,224,026		$	13,203,606

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

Reporting Definitions

Total Market Capitalization. Total Debt plus Consolidated Market Equity.

The following table details the calculation of Total Market Capitalization:

In thousands, except price data

	March 31, 2009
	Shares/Units	Price		Value
Common stock	253,975	$	17.85	$	4,533,454

Convertible partnership units
2 for 1(1)	1,627	35.70		58,084
1 for 1(2)	3,176	17.85		56,692
				114,776

Preferred stock:
7.25% Series E	4,000	17.99		71,960
7.10% Series F	7,820	16.90		132,158
				204,118

Consolidated market equity				$	4,852,348

Consolidated debt				5,984,223

Consolidated market capitalization				$	10,836,571

HCP’s share of unconsolidated debt(3)				345,182

Total market capitalization				$	11,181,753

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

Total Undepreciated Book Capitalization. Total Book Capitalization after adding back accumulated depreciation and amortization on the Company’s real estate assets and the Company’s pro rata share of accumulated depreciation and amortization on real estate assets in unconsolidated joint ventures.

The following table details the calculation of Total Undepreciated Book Capitalization at:

In thousands

	March 31,		December 31,
	2009		2008
Total debt	$	6,329,405	$	6,283,926
Total equity	5,330,912		5,407,840
Total book capitalization	11,660,317		11,691,766
Accumulated depreciation and amortization	1,064,536		994,426
Accumulated depreciation and amortization from assets held for sale	17,402		24,257
HCP’s share of unconsolidated accumulated depreciation and amortization(3)	51,685		46,629
Total undepreciated book capitalization	$	12,793,940	$	12,757,078

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)	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.
(2)	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.
(3)	Excludes unconsolidated joint ventures outside of the Investment Management Platform.

Supplemental Financial Measures Disclosures

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 March 31,
	2009			2008

Net income	$	52,709		$	56,128
Interest expense:
Continuing operations	76,674			96,263
Discontinued operations	—			107
Income taxes:
Continuing operations	915			2,241
Discontinued operations	(1		)	93
Depreciation and amortization of real estate, in-place lease and other intangibles:
Continuing operations	80,537			77,632
Discontinued operations	61			4,726
Equity (income) loss from unconsolidated joint ventures	462			(1,288		)
HCP’s share of EBITDA from the Investment Management Platform	10,682			10,928
Other joint venture adjustments	609			614
EBITDA	222,648			247,444

Gain on sales of real estate	(1,357		)	(10,138		)
Adjusted EBITDA	$	221,291		$	237,306

Interest expense:
Continuing operations	$	76,674		$	96,263
Discontinued operations	—			107
HCP’s share of interest expense from the Investment Management Platform	5,028			5,170
Capitalized interest	6,020			9,362
Preferred stock dividends	5,283			5,283
Fixed charges	$	93,005		$	116,185

Adjusted fixed charge coverage	2.4 x			2.0 x

Supplemental Financial Measures Disclosures

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 noncontrolling interests’ share in earnings, 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 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. The Company considers Adjusted EBITDA to be a useful supplemental measure for reviewing its comparative performance with other companies because, by excluding non-cash depreciation expense, Adjusted EBITDA can help the investing public compare the performance of a real estate company to that of companies 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’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. 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. By excluding interest, taxes, depreciation and amortization, impairments and gains or losses from real estate dispositions when assessing the Company’s financial performance, an investor is assessing the earnings generated by the Company’s operations, but not taking into account the eliminated expenses or gains or losses from real estate dispositions incurred in connection with such operations. As a result, 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. Also, EBITDA and Adjusted EBITDA do not reflect the cash required to make interest and principal payments on the Company’s outstanding debt. 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 cash provided by operating activities:

In thousands

	Three months ended March 31,
	2009			2008

Net cash provided by operating activities	$	117,012		$	131,675
Changes in:
Accounts receivable	(5,165		)	(12,043		)
Other assets	1,050			(10,480		)
Accounts payable and accrued liabilities	14,756			16,156
Derivative losses, net	(439		)	—
Marketable securities losses (gains), net	(309		)	(113		)
Gain on sales of real estate	1,357			10,138
Distributions of earnings from unconsolidated joint ventures	(1,468		)	(1,191		)
Equity income (loss) from unconsolidated joint ventures	(462		)	1,288
Deferred rental revenue	(6,914		)	(8,605		)
Interest accretion	6,121			6,292
Straight-line rents	11,422			9,782
Amortization of debt premiums, discounts and issuance costs, net	(2,768		)	(3,039		)
Stock-based compensation	(3,546		)	(3,526		)
Amortization of above and below market lease intangibles, net	2,660			2,152
Depreciation and amortization of real estate, in-place lease and other intangibles:
Continuing operations	(80,537		)	(77,632		)
Discontinued operations	(61		)	(4,726		)
Net income	52,709			56,128

Interest expense:
Continuing operations	76,674			96,263
Discontinued operations	—			107
Income taxes:
Continuing operations	915			2,241
Discontinued operations	(1		)	93
Depreciation and amortization of real estate, in-place lease and other intangibles:
Continuing operations	80,537			77,632
Discontinued operations	61			4,726
Equity (income) loss from unconsolidated joint ventures	462			(1,288		)
HCP’s share of EBITDA from the Investment Management Platform	10,682			10,928
Other joint venture adjustments	609			614
EBITDA	222,648			247,444

Gain on sales of real estate	(1,357		)	(10,138		)
Adjusted EBITDA	$	221,291		$	237,306

Supplemental Financial Measures Disclosures

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 per Common Share. 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.

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, interest and other income, net, interest expense, income taxes, 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, 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:

In thousands

	Three months ended March 31,
	2009			2008
Net income	$	52,709		$	56,128
Investment management fee income	(1,438		)	(1,467		)
Depreciation and amortization	80,537			77,632
General and administrative	18,991			20,445
Interest and other income, net	(24,333		)	(35,322		)
Interest expense	76,674			96,263
Income taxes	915			2,241
Equity (income) loss from unconsolidated joint ventures	462			(1,288		)
Total discontinued operations, net of taxes	(2,016		)	(19,527		)
NOI	$	202,501		$	195,105

	Three Months Ended March 31,
	2009			2008
Cash flows from financing activities:
Net borrowings under bank line of credit	85,000			66,900
Repayments of mortgage debt	(38,463		)	(12,071		)
Issuance of common stock and exercise of options	665			6,265
Repurchase of common stock	(2,143		)	(2,022		)
Dividends paid on common and preferred stock and participating securities	(122,174		)	(104,370		)
Purchase of noncontrolling interests	(9,097		)	—
Distributions to noncontrolling interests	(4,127		)	(7,327		)
Net cash used in financing activities	(90,339		)	(52,625		)

Net increase in cash and cash equivalents	8,814			57,731
Cash and cash equivalents, beginning of period	57,562			96,269
Cash and cash equivalents, end of period	$	66,376		$	154,000