Segment Disclosures (Tables)

9 Months Ended

Sep. 30, 2016

Segment Disclosures

Summary financial information of reportable segment (in thousands)

The following tables summarize information for the reportable segments (in thousands):

For the three months ended September 30, 2016:

					Life		Medical				Other		Corporate
	SH NNN		SHOP		Science		Office		QCP		Non-reportable		Non-segment		Total
Rental revenues(1)	$	104,249	$	—	$	90,847	$	113,653	$	123,716	$	30,571	$	—	$	463,036
Resident fees and services		13		170,739		—		—		—		—		—		170,752
HCP share of unconsolidated JV revenues		—		50,973		1,929		502		—		410		—		53,814
Less:																—
Operating expenses		(1,794)		(121,502)		(18,487)		(44,738)		(1,036)		(1,190)		—		(188,747)
HCP share of unconsolidated JV operating expenses		—		(42,463)		(406)		(148)		—		(20)		—		(43,037)
NOI		102,468		57,747		73,883		69,269		122,680		29,771		—		455,818
Non-cash adjustments to NOI(2)		(1,003)		4,608		(314)		(814)		172		(1,140)		—		1,509
Adjusted (cash) NOI		101,465		62,355		73,569		68,455		122,852		28,631		—		457,327
Addback non-cash adjustments		1,003		(4,608)		314		814		(172)		1,140		—		(1,509)
Interest income		—		—		—		—		—		20,482		—		20,482
Interest expense		(644)		(8,130)		(634)		(1,608)		—		(2,260)		(104,584)		(117,860)
Depreciation and amortization		(34,030)		(26,837)		(31,967)		(41,111)		(1,467)		(7,462)		—		(142,874)
General and administrative expenses		—		—		—		—		—		—		(34,787)		(34,787)
Acquisition and pursuit costs		—		—		—		—		—		—		(17,568)		(17,568)
Loss on sales of real estate, net		—		—		—		(9)		—		—		—		(9)
Other income, net		—		—		—		—		—		—		1,454		1,454
Income tax benefit		—		—		—		—		—		—		2,213		2,213
Less: HCP share of unconsolidated JV NOI		—		(8,510)		(1,523)		(354)		—		(390)		—		(10,777)
Equity (loss) income in unconsolidated JVs		—		(3,517)		778		462		—		224		—		(2,053)
Net income (loss)	$	67,794	$	10,753	$	40,537	$	26,649	$	121,213	$	40,365	$	(153,272)	$	154,039

For the three months ended September 30, 2015:

					Life		Medical				Other		Corporate
	SH NNN		SHOP		Science		Office		QCP		Non-reportable		Non-segment		Total
Rental revenues(1)	$	105,405	$	182	$	86,140	$	108,898	$	148,599	$	33,143	$	—	$	482,367
Resident fees and services		—		155,290		—		—		—		—		—		155,290
HCP share of unconsolidated JV revenues		—		45,891		1,840		464		—		400		—		48,595
Less:																—
Operating expenses		(871)		(110,254)		(17,785)		(43,008)		(1,008)		(589)		—		(173,515)
HCP share of unconsolidated JV operating expenses		—		(39,226)		(425)		(150)		—		(19)		—		(39,820)
NOI		104,534		51,883		69,770		66,204		147,591		32,935		—		472,917
Non-cash adjustments to NOI(2)		(2,312)		6,984		(2,673)		(1,342)		(23,158)		(770)		—		(23,271)
Adjusted (cash) NOI		102,222		58,867		67,097		64,862		124,433		32,165		—		449,646
Addback non-cash adjustments		2,312		(6,984)		2,673		1,342		23,158		770		—		23,271
Interest income		—		—		—		—		—		19,842		—		19,842
Interest expense		(4,239)		(8,026)		(701)		(2,540)		—		(2,521)		(104,130)		(122,157)
Depreciation and amortization		(31,527)		(24,398)		(32,013)		(37,151)		(1,470)		(8,145)		—		(134,704)
General and administrative expenses		—		—		—		—		—		—		(20,534)		(20,534)
Acquisition and pursuit costs		—		—		—		—		—		—		(1,553)		(1,553)
Impairments		—		—		—		—		—		(69,622)		—		(69,622)
Gain on sales of real estate, net		—		—		—		52		—		—		—		52
Other expense, net		—		—		—		—		—		—		(572)		(572)
Income tax benefit		—		—		—		—		—		—		1,980		1,980
Less: HCP share of unconsolidated JV NOI		—		(6,665)		(1,415)		(314)		—		(381)		—		(8,775)
Equity (loss) income in unconsolidated JVs		—		(3,291)		706		(586)		11,485		—		—		8,314
Impairment of investments in unconsolidated JVs		—		—		—		—		(27,234)		—		—		(27,234)
Net income (loss)	$	68,768	$	9,503	$	36,347	$	25,665	$	130,372	$	(27,892)	$	(124,809)	$	117,954

For the nine months ended September 30, 2016:

					Life		Medical				Other		Corporate
	SH NNN		SHOP		Science		Office		QCP		Non-reportable		Non-segment		Total
Rental revenues(1)	$	319,976	$	—	$	269,994	$	331,881	$	367,714	$	95,476	$	—	$	1,385,041
Resident fees and services		13		500,704		—		—		—		—		—		500,717
HCP share of unconsolidated JV revenues		—		152,424		5,628		1,503		—		1,224		—		160,779
Less:																—
Operating expenses		(5,521)		(350,949)		(53,191)		(129,715)		(3,068)		(3,383)		—		(545,827)
HCP share of unconsolidated JV operating expenses		—		(125,244)		(1,173)		(452)		—		(30)		—		(126,899)
NOI		314,468		176,935		221,258		203,217		364,646		93,287		—		1,373,811
Non-cash adjustments to NOI(2)		(8,464)		15,175		(1,545)		(2,361)		375		(1,926)		—		1,254
Adjusted (cash) NOI		306,004		192,110		219,713		200,856		365,021		91,361		—		1,375,065
Addback non-cash adjustments		8,464		(15,175)		1,545		2,361		(375)		1,926		—		(1,254)
Interest income		—		—		—		—		—		71,298		—		71,298
Interest expense		(8,859)		(23,818)		(1,904)		(4,899)		—		(7,067)		(314,708)		(361,255)
Depreciation and amortization		(101,737)		(78,124)		(97,640)		(120,432)		(4,402)		(23,247)		—		(425,582)
General and administrative expenses		—		—		—		—		—		—		(83,079)		(83,079)
Acquisition and pursuit costs		—		—		—		—		—		—		(34,570)		(34,570)
Gain on sales of real estate, net		23,940		—		29,428		8,333		—		57,904		—		119,605
Other income, net		—		—		—		—		—		—		5,128		5,128
Income tax expense		—		—		—		—		—		—		(48,822)		(48,822)
Less: HCP share of unconsolidated JV NOI		—		(27,180)		(4,455)		(1,051)		—		(1,194)		—		(33,880)
Equity (loss) income in unconsolidated JVs		—		(8,477)		2,263		1,541		—		645		—		(4,028)
Net income (loss)	$	227,812	$	39,336	$	148,950	$	86,709	$	360,244	$	191,626	$	(476,051)	$	578,626

For the nine months ended September 30, 2015:

					Life		Medical				Other		Corporate
	SH NNN		SHOP		Science		Office		QCP		Non-reportable		Non-segment		Total
Rental revenues(1)	$	317,520	$	(7,127)	$	255,100	$	307,881	$	454,740	$	90,600	$	—	$	1,418,714
Resident fees and services		12		367,129		—		—		—		—		—		367,141
HCP share of unconsolidated JV revenues		—		134,047		5,257		1,395		—		1,193		—		141,892
Less:
Operating expenses		(2,655)		(260,393)		(51,718)		(121,330)		(2,898)		(2,894)		—		(441,888)
HCP share of unconsolidated JV operating expenses		—		(112,395)		(1,173)		(467)		—		(54)		—		(114,089)
NOI		314,877		121,261		207,466		187,479		451,842		88,845		—		1,371,770
Non-cash adjustments to NOI(2)		(8,853)		26,620		(8,635)		(4,326)		(65,807)		(1,633)		—		(62,634)
Adjusted (cash) NOI		306,024		147,881		198,831		183,153		386,035		87,212		—		1,309,136
Addback non-cash adjustments		8,853		(26,620)		8,635		4,326		65,807		1,633		—		62,634
Interest income		—		—		—		—		—		89,049		—		89,049
Interest expense		(12,677)		(23,895)		(2,229)		(7,458)		—		(7,270)		(304,040)		(357,569)
Depreciation and amortization		(93,260)		(55,627)		(92,503)		(102,748)		(4,410)		(21,081)		—		(369,629)
General and administrative expenses		—		—		—		—		—		—		(74,152)		(74,152)
Acquisition and pursuit costs		—		—		—		—		—		—		(23,350)		(23,350)
Impairments		—		—		—		(2,948)		(478,464)		(111,509)		—		(592,921)
Gain on sales of real estate, net		6,325		—		—		52		—		—		—		6,377
Other income, net		—		—		—		—		—		—		13,125		13,125
Income tax benefit		—		—		—		—		—		—		6,620		6,620
Less: HCP share of unconsolidated JV NOI		—		(21,652)		(4,084)		(928)		—		(1,139)		—		(27,803)
Equity (loss) income in unconsolidated JVs		—		(5,917)		2,123		(1,761)		39,471		—		—		33,916
Impairment of investments in unconsolidated JVs		—		—		—		—		(27,234)		—		—		(27,234)
Net income (loss)	$	215,265	$	14,170	$	110,773	$	71,688	$	(18,795)	$	36,895	$	(381,797)	$	48,199

(1) Represents rental and related revenues, tenant recoveries and income from DFLs.

(2) Represents straight-line rents, DFL non-cash interest, amortization of market lease intangibles and lease termination fees.

Reconciliation of company's revenues to total revenues (in thousands)

	Three Months Ended September 30,				Nine Months Ended September 30,
Segment	2016		2015		2016		2015
SH NNN	$	104,262	$	105,405	$	319,989	$	317,532
SHOP		170,739		155,472		500,704		360,002
Life science		90,847		86,140		269,994		255,100
Medical office		113,653		108,898		331,881		307,881
QCP		123,716		148,599		367,714		454,740
Other non-reportable segment		51,053		52,985		166,774		179,649
Total revenues	$	654,270	$	657,499	$	1,957,056	$	1,874,904

Reconciliation of company's assets to total assets (in thousands)

	September 30,		December 31,
Segment	2016		2015
SH NNN	$	5,097,301	$	5,092,443
SHOP		3,476,136		3,195,384
Life science		3,983,929		3,905,137
Medical office		3,481,174		3,436,884
QCP		5,335,708		5,382,843
Gross reportable segment assets		21,374,248		21,012,691
Accumulated depreciation and amortization		(3,064,520)		(2,769,744)
Net reportable segment assets		18,309,728		18,242,947
Other non-reportable segment assets		1,598,092		1,787,579
Real estate and related assets held for sale, net		372,968		314,126
Other non-segment assets		907,757		1,105,197
Total assets	$	21,188,545	$	21,449,849