Investments in and Advances to Unconsolidated Joint Ventures (Tables)

6 Months Ended

Jun. 30, 2015

Investments in and Advances to Unconsolidated Joint Ventures

Company owned interests in entities, accounted under equity method (dollars in thousands)

Entity(1)	Segment	Carrying Amount		Ownership%
CCRC JV(2)	senior housing	$	452,283		49
HCRMC	post-acute/skilled nursing		50,958		9
MBK JV	senior housing		27,139		50
HCP Ventures III, LLC	medical office		6,408		30
HCP Ventures IV, LLC	medical office and hospital		25,432		20
HCP Life Science(3)	life science		69,293	50	–	63
Vintage Park	senior housing		4,737		85
Suburban Properties, LLC	medical office		5,112		67
Advances to unconsolidated joint ventures, net			125
		$	641,487

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

(2) Includes two unconsolidated joint ventures in a RIDEA structure: (i) “CCRC PropCo” and (ii) “CCRC OpCo”.

(3) Includes three unconsolidated joint ventures between the Company and an institutional capital partner. 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 equity method investments (in thousands)

	June 30,		December 31,
	2015		2014
Real estate, net	$	5,219,661	$	5,134,587
Goodwill and other assets, net		5,065,096		4,986,310
Total assets	$	10,284,757	$	10,120,897
Capital lease obligations and debt	$	7,210,974	$	7,197,940
Accounts payable		1,127,561		1,015,912
Other partners’ capital		1,299,578		1,281,413
HCP’s capital(1)		646,644		625,632
Total liabilities and partners’ capital	$	10,284,757	$	10,120,897

(1) The combined basis difference of the Company’s investments in these joint ventures of $5 million, as of June 30, 2015, is attributable to goodwill, real estate, capital lease obligations, deferred tax assets and lease-related net intangibles.

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Total revenues	$	1,142,647	$	1,059,455	$	2,309,127	$	2,126,943
Loss from discontinued operations		(7,100)		(6,200)		(6,000)		(8,800)
Net loss		(21,528)		(11,834)		(11,730)		(3,973)
HCP’s share of earnings(1)		12,001		14,692		25,602		29,220
Fees earned by HCP		458		444		918		893
Distributions received by HCP		2,306		566		4,487		3,768

(1) The Company’s joint venture interest in HCRMC is accounted for using the equity method and results in an ongoing elimination of DFL income proportional to HCP’s ownership in HCRMC. The elimination of the respective proportional lease expense at the HCRMC level in substance results in $15 million and $16 million of DFL income that is recharacterized to the Company’s share of earnings from HCRMC (equity income from unconsolidated joint ventures) for the three months ended June 30, 2015 and 2014, respectively. For the six months ended June 30, 2015 and 2014, $30 million and $31 million, respectively, of DFL income was recharacterized to the Company’s share of earnings from HCR ManorCare.