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HCP,Inc.

June

2011

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HCPOverview

Investsin5segmentsofhealthcarerealestate

through5investmentproducts

Proformaforrecentacquisitions(1)

$19billionofassetsundermanagement

Diverse,wellbalancedportfolio

Portfoliotogenerateover$1.4billionof

annualcashnetoperatingincome

Strongbalancesheetwithinvestmentgrade

creditratings

Compoundannualshareholderreturnof16.7%(2)

sinceIPO

in

1985

26yearsofconsecutivedividendgrowth

$1.4BAnnualCashNOI(1)

BestinclassTenants&Operators

(1) Basedon

2010,

adjusted

to

reflect

the

fullyear

impact

of

HCR

ManorCare

real

estate

acquisition

and

Ventures

IIbuyout

transactions.

(2) ThroughMarch2011andassumesreinvestmentofdividends.

LifeScience

15%

Senior

Housing

32%

Hospital

6%

PostAcute/

SkilledNursing

33%

MOB

14%

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Highquality,diversifiedportfoliosupportedbyastrongbalancesheet

2011YTDHighlights

Completedthebuyoutofcapitalpartner's65%interestinHCPVenturesII

ReceivedcreditratingupgradesfromMoody's(toBaa2)andFitch (toBBB+)

$2.4BseniorunsecurednotesofferinginJanuary

Declaredannualizeddividendof$1.92/share,representing3.2%increasefrom2010

$1.27BequityofferinginMarch(upsized44%from24Mto34.5Mshares)

Newrevolvingcreditfacilityproviding$1.5Bofimmediateliquidity

Closed$6.1BacquisitionofHCRManorCarespostacute/skillednursingrealestate

FormedastrategicventurewithBrookdale,including21seniorhousingcommunitiesinaRIDEAstructure

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0%

5%

10%

15%

20%

25%

1980 1990 2000 2010 2020 2030 2040 2050

0

20

40

60

80

100

%85+ %7584 %6574 65+Population

$75$85

$1,000

$0

$40

$80

$120

$160

$200

TotalMarket Institutional

RealEstate

PublicHCREITs

$1,000

$1,200

$1,000

WhyHealthcareRealEstate?

HugeandgrowingindustryintheUS

17.4%ofGDPonnationalhealth

expenditures($2.7trillion)(1)

$1trillionofhealthcarerealestate(2)

AcceleratedagingofUSpopulationin

thenextdecade

Fragmentedindustrydespiterecentsector

institutionalization

Originallyacottageindustry withonly5

dedicatedHCREITsinlate1980s

15+publicHCREITswithsignificantcapital

inflow

StrongDemographics

Fragmen

tedIndustry

%ofTotalUSPopulation

PopulationinMillions

Next

Decade

Healthcareindustryprovidesfavorableunderlyingfundamentals

$inBillions

(1) Source: CentersforMedicare&MedicaidServicesprojectionsforcalendaryear2011.

(2) BasedonCompanyestimates.

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DemonstratedInvestmentTrackRecordMultiple

Pathways

to

Create

Ownership

Interests

in

Real

Estate

Flexiblecapitalallocationthatreflects/exploitscurrentmarketopportunities&conditions

PostAcute/

Skilled Hospital

Medical

Office

Life

Science

Senior

Housing

JointVenture

Development

DebtInvestment

RealEstate

RIDEA TRS

VenturesII

HCRManorCare

5 x 5 Business Model

Current Original1985IPOPortfolio

StrategicventurewithBrookdale

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April2011Aug2009Dec2007

Earlypar

payoff

produced

ablended

IRRof12.5%ondeployedcapital

during3yearhold

$6.1BacquisitioninApril2011istheculminationofinvestmentsinHCRManorCarethatbeganin2007

Bought$1Bmezz

investment(face)from

majorcommercial

banks

inconnectionwithHCR

ManorCareLBO

Keyterms:

Coupon:L+400bps

Discounttopar:$100M

Purchased$720M

participationinthefirst

mortgagedebt

from

a

majorcommercialbank

Keyterms:

Coupon:L+125bps

Discountto

par:

$130M

Received$425M

favorablefinancing

Acquired100%ownershipin

HCRManorCares

unencumberedreal

estate

portfoliofor$6.1billion

Exercisedoptiontopurchase

9.9%equityinterestin

HCRsoperationsfor$95M

EvolutionofLongtermStrategicRelationshipHCP

HCR

ManorCare

History

AccretivelyredeployedHCP'scapitalinto

longtermrealestate

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JointVenture

RealEstate

RIDEA TRS

20112006 2007

HCP'sBusinessModelProvidesAttractiveOptionality

Alignmentwithastrong

operator

Attractivevaluationentry

point

Favorablesupply/demand

fundamentals

LevelofCare Occupancy Margin GrowthExpectation

4NNNLeasedAssets 94.7% 30.7% 2.75%perannum

21

RIDEA

/

JV

Assets 89.0% 37.7% "Right

time"

in

the

cycle

38%IL

83%

IL

34%

AL(Z)

17%

AL(Z)

28%

SNF

PortfolioSnapshot:

Historyof

25property

senior

housing

portfolio

(Horizon

Bay

Brookdale)

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HCP's CurrentTwoLargestRelationships

Critical

Mass

Efficient

Operations

Quality

Outcome

Largestoperatorinthesenior

housingindustry

Industryleading

ancillary

services

platform

Attractivemarginsenabledby

economiesofscale

Strongmarketconcentrationsprovide"VirtualCCRC"

Bestinclassseniorhousing

operator Highsatisfactionfromresidents

&employees

Strategicrelationshipswithstrongalignmentleadtoadditional growthopportunities

Largestproviderofpostacute,

skillednursing&rehabcare

Nationalfootprint

with

500+

locations

Outstandingmargins

Qualitymixatindustryleading

71%ofrevenues

Thepremierpostacuteand

skillednursing

operator

Successfullydischargesmore

than150,000patientsperyear

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AMultiyear,ForwardlookingHCPPerspective

$7billionofaccretiveacquisitionscompletedduring2011YTDwillsignificantlyaddto

FFO&FADpershareinthefirstyearpostclosing

Lockedinthe"profitspread"withlongtermfinancing

Organic,ongoingFADpersharegrowthforthenextfewyears,drivenby:

FADgrowthenhancesdividendcoverageandabilitytoaccelerategrowthofdividendinthefuture

Lowtomid3%CashSamePropertyPerformance TargetLeverageof40%

Ourcurrent

portfolio

primarily

consists

of

longterm,contractualrents&oncampusMOBs

NormalizedCashSPPisprojectedtoincreasefrom

themid2%tothelowtomid3%area:

$6.1billionHCRManorCarerealestate,

masterleased

with

3.5%

rent

increases

for

the

next5years

Sunrisetransitionassets

Principallyall

fixedrate

debt

with

6.4

year

averageremainingtenor

Primarilyunsecuredbonds

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HCPProvidesSafety&Growth

HCPistheindustryleaderwithrespecttosize,portfolioqualityandstrategies

Longtermleaseswithsteadyescalatorsandlimitedrollover

Healthcareindustryprovidesfavorableunderlyingfundamentals

Leverage5x5model Provenexecutionexperience

Newerassetsinhighbarrierto

entrymarkets

at

or

below

replacementcost

Premiertenants&operators

withstructural

and

credit

enhancements

Uniquebusinessmodelresultingincompetitiveedgeandvalue