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Investments in and Advances to Unconsolidated Joint Ventures (Tables)
 9 Months Ended
Sep. 30, 2013
Investments in and Advances to Unconsolidated Joint Ventures  
Company owned interests in entities, accounted under equity method

The Company owns interests in the following entities that are accounted for under the equity method at September 30, 2013 (dollars in thousands):

 

Entity(1)

 

Properties/Segment

 

Investment(2)

 

Ownership%

 

HCR ManorCare

 

post-acute/skilled nursing operations

 

$

85,777

 

9.5

 

HCP Ventures III, LLC

 

13 medical office

 

7,251

 

30

 

HCP Ventures IV, LLC

 

54 medical office and 4 hospital

 

30,420

 

20

 

HCP Life Science(3) 

 

4 life science

 

68,992

 

50-63

 

Horizon Bay Hyde Park, LLC

 

1 senior housing

 

6,725

 

72

 

Suburban Properties, LLC

 

1 medical office

 

6,666

 

67

 

Advances to unconsolidated joint ventures, net

 

 

 

173

 

 

 

 

 

 

 

$

206,004

 

 

 

 

 

 

 

 

 

 

 

Edgewood Assisted Living Center, LLC

 

1 senior housing

 

$

(429

)

45

 

Seminole Shores Living Center, LLC

 

1 senior housing

 

(697

)

50

 

 

 

 

 

$

(1,126

)

 

 

 

(1)          These entities are not consolidated because the Company does not control, through voting rights or other means, the joint ventures.

(2)          Represents the carrying value of the Company’s investment in the unconsolidated joint venture. Negative balances are recorded in accounts payable and accrued liabilities on the Company’s Condensed Consolidated Balance Sheets.

(3)          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 (and the Company’s ownership percentage): (i) Torrey Pines Science Center, LP (50%); (ii) Britannia Biotech Gateway, LP (55%); and (iii) LASDK, LP (63%).
Summarized combined financial information for unconsolidated joint ventures

Summarized combined financial information for the Company’s unconsolidated joint ventures follows (in thousands):

 

 

 

September 30,

 

December 31,

 

 

 

2013

 

2012

 

Real estate, net

 

$

3,676,367

 

$

3,731,740

 

Goodwill and other assets, net

 

5,802,930

 

5,734,318

 

Total assets

 

$

9,479,297

 

$

9,466,058

 

 

 

 

 

 

 

Capital lease obligations and mortgage debt

 

$

6,782,574

 

$

6,875,932

 

Accounts payable

 

1,060,153

 

971,095

 

Other partners’ capital

 

1,452,308

 

1,435,885

 

HCP’s capital(1) 

 

184,262

 

183,146

 

Total liabilities and partners’ capital

 

$

9,479,297

 

$

9,466,058

 

 

(1)          The combined basis difference of the Company’s investments in these joint ventures of $20 million, as of September 30, 2013, is primarily attributable to goodwill, real estate, capital lease obligations, deferred tax assets and lease related net intangibles.

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

2013

 

2012

 

2013

 

2012

 

Total revenues

 

$

1,055,889

 

$

1,057,567

 

$

3,208,752

 

$

3,196,086

 

Net income (loss)

 

1,739

 

(8,851

)

22,232

 

8,416

 

HCP’s share in earnings (1) 

 

13,892

 

13,396

 

44,278

 

42,803

 

Fees earned by HCP

 

464

 

460

 

1,406

 

1,423

 

Distributions received by HCP

 

1,390

 

1,419

 

3,918

 

4,826

 

 

(1)          The Company’s joint venture interest in HCR ManorCare is accounted for using the equity method and results in an ongoing reduction of DFL income, proportional to HCP’s ownership in HCR ManorCare. The Company recorded a reduction of $15.4 million and $46.6 million for the three and nine months ended September 30, 2013, respectively. The Company recorded a reduction of $14.9 million and $44.4 million for the three and nine months ended September 30, 2012, respectively. Further, the Company’s share of earnings from HCR ManorCare (equity income) increases for the corresponding reduction of related lease expense recognized at the HCR ManorCare level.