Bank of America37th Annual Investment ConferenceSeptember 2007

Britannia Oyster Point, South San Francisco Britannia Shoreline Technology Park, Mountain View Britannia East Grand, South San Francisco

2

Forward-looking Statements

Some of the statements in this presentation may be “forward-looking statements” and HCP intends such forward-looking statements to be covered by the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995. Investors are cautioned that, while forward-looking statements reflect HCP’s good faith belief and best judgment based upon current information, they are not guarantees of future performance and are subject to known and unknownrisks and uncertainties as more fully described in news releases and SEC reports filed by HCP. Actual results may differ materially from the expectations contained in the forward-lookingstatements as a result of various factors. HCP assumes no, and hereby disclaims any, obligation to update the forward-looking statements contained in this presentation.

Market Data

This presentation includes market and industry data that HCP has obtained from market research,publicly available information and industry publications. These sources generally state that theinformation that they provide has been obtained from sources believed to be reliable, but that theaccuracy and completeness of such information is not guaranteed. The market and industry datais often based on industry surveys and preparers’ experience in the industry. Similarly, althoughHCP believes that the surveys and market research that others have performed are reliable, HCPhas not independently verified this information.

3

Overview

(1) Inclusive of SEUSA acquisition completed on August 1, 2007.(2) As of June 30, 2007 and assumes re-investment of dividends on ex-dividend date.

Largest public healthcare REIT – $14.0 billion enterprise value(1)

Capitalizing on paradigm shift created by the “institutionalization” of healthcare real estate

Acquired Slough Estates USA, the premier life science platform, for $2.9 billion

Successfully completed the $5.3 billion CNL acquisition

High quality, lower risk portfolio – age, properties, markets, operators, lease structures and diversification

Portfolio heavily weighted towards non-government reimbursed, private pay sectors

Accelerating growth driven by new operating platforms

Compounded total shareholder return of 17%(2) per annum since IPO in 1985

Management team and infrastructure scaled for growth

4

Experienced Management Team

Jay FlahertyChairman & Chief Executive Officer

Charles Elcan

Medical Office Properties

Paul Gallagher

Chief InvestmentOfficer

Mark Wallace

Chief FinancialOfficer & Treasurer

Edward Henning

General Counsel & Corporate Secretary

Steve Maulbetsch

StrategicDevelopment

Marshall Lees

Life ScienceEstates

Tom KlaritchMedical Office

Properties

Tom KirbyAcquisitions & Dispositions

Tim SchoenInvestment

Management

Susan TateAsset

Management

Brian MaasAssociate

General Counsel

Randy RohnerLife Science

Estates

George DoyleChief Accounting

Officer

Stephen RobieFinancial Planning

& Analysis

Donald McNutt

Operations

5

Company Evolution

Growth

Financial Profile

Leading Relationships

Assets UnderManagement

Portfolio(3)

► Organic► Property acquisitions► Multiple operating platforms► Industry consolidation

► Organic► Property acquisitions

► Enterprise value: $14 billion► Expected FFO payout ratio: 80%-90%

► Enterprise value: $4 billion► FFO payout ratio: 95%

► Sunrise► Brookdale► Amgen► Genentech

► Tenet► ARC ► Emeritus► HealthSouth

► $13 billion ► 757 properties► Recycled capital: $3.4 billion

► $3 billion► 463 properties► Recycled capital: $21 million

► Senior housing: 39% of portfolio► Life science/MOB: 47%► Skilled nursing: 3%► Private pay component: 87%

► Senior housing: 22% of portfolio► Life science/MOB: 25%► Skilled nursing: 23%► Private pay component: 52%

2007 Pro Forma(2)2002(1)

Accelerating Growth Potential(1) As of and for the year ended December 31, 2002. (2) Portfolio data reflects HCP’s portfolio as of June 30, 2007, inclusive of subsequent SEUSA acquisition and disposition of 41 senior housing facilities for

$502 million to Emeritus. HCP’s portfolio of properties as of June 30, 2007 excludes assets held for sale and classified as discontinued operations.(3) Basis of presentation reflects the historical cost of real estate investments in HCP’s portfolio and HCP’s unconsolidated joint ventures.

6

$0

$2

$4

$6

$8

$10

$12

$14

$16

HCP Peer A Peer B Peer C Peer D

Equity Debt Preferred

$7.9

$5.9

$4.1

(1) As of August 20, 2007, from Citigroup research.(2) Based on company reports.(3) Inclusive of SEUSA acquisition completed on August 1, 2007.

Healthcare REIT Portfolios(1)(2)Healthcare REIT Capitalization(1)

$14.0

$2.0

HCP’s Leading Market Position

HCP’s Portfolio is Heavily Weighted Towards Higher Quality, Private Pay Sectors

(In billions) (In billions)

$0

$2

$4

$6

$8

$10

$12

$14

$16

HCP Peer A Peer B Peer C Peer D

MO B Senior Housing Hospital Skilled Nursing Life Science/O ther

(3) (3)

7

0%

5%

10%

15%

20%

25%

1980 1990 2000 2010 2020 2030 2040 2050

% o

f T

otal

U.S

. Pop

ulat

ion

0

20

40

60

80

100

Populations in Millions

% 65-74 % 75-84 % 85+ 65+ Population

U.S. Population Over 65 Years Old is Growing

Source: U.S. Census Bureau, Statistical Abstract of the United States: 2004-2005.

Healthcare Expenditures Rising as a % of GDP

10%

13%

16%

19%

22%

1990 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015%

of G

DP

Actual Forecast

Source: Centers for Medicare and Medicaid, December 2006.

16% of GDP

20% of GDP

Demographics Driving Healthcare Real Estate Demand

’05–’15 CAGR –7.2%

8

Growing institutionalization of healthcare real estateMigration from private to public ownershipSignificant increase of institutional allocations and capital flowsConsolidation of both real estate owners and operators

Improving operator financial strength and management expertiseCapital accessInterest rate environment creates incentives to exercise purchase options

Government reimbursement risk ever present – particularly hospitals and SNFsProperty age and obsolescence creates potential downside risk

Superior investment opportunities being “cherry picked” away from traditional healthcare REIT models

“Capital available to invest” is no longer a differentiating factor for healthcare REITs- 1980s and 1990s: “cottage industry”- Now: challenge of how to differentiate product offering to create value

Healthcare Real Estate Experiencing “Disruptive Forces”

Changing Dynamics Create Opportunities for Selected Players

9

Healthcare Real Estate Sector Undergoing Consolidation

$0

$400

$3,000

Total Market % Owned by Public REITs

$360B

$0

$50

$100

$150

$750

Total Market % Owned by Public REITs

“The HCP advantage”Attractive acquisition currencyProven platform – able to absorb sizeable portfoliosTax-efficient structuresExperience in identifying, investing and managing well-located & operated facilities

Sources: Health Forum LLC, ASHA, Irving Levin Associates; PREI, August 2004.

Commercial Real Estate Market - $3 Trillion Healthcare Real Estate Market - $750 Billion

(In billions) (In billions)

$75B

$15B

Fragmented Ownership

Source: SDC Platinum as of August 20, 2007.

12% 12%

2%0% 0%

$20.6B(1)$9.2B$1.2B

YTD 200720062005

Healthcare Real Estate Acquisition Volume

(1) Includes $13.8 billion of acquisitions closed to date and $6.8 billion of acquisitions pending closing.

10

Asset Class Characteristics and Opportunities

Preferred Characteristics Opportunities

Senior Housing

• Major markets with high barriers to entry • Newer facilities with respected operators • Opportunities for rent growth • Expansion possibilities

• Partnering with existing operators to enhance return of existing portfolio

Life Science

• Heavily clustered markets near medical research centers • Supply-constrained with high-barrier-to-entry markets • High quality, stable tenant base with manageable turnover • Affiliation/relationships with established pharma/biotech

firms • At-market rents or ability to roll below-market rents to

market

• Phased development pipeline • Redevelopment of existing campuses to achieve

densification • Scalability via footprint expansion

MOB • On or adjacent to the campuses of leading hospitals • Modern facilities • At-market rents or ability to roll below-market rents to

market

• Acquisition of MOBs from not-for-profit hospital systems • Acquisition of campus portfolios rather than individual

buildings • Development on existing campuses

Hospital • Leading market share hospital systems • Well established operators with strong track records • Modern facilities in growth markets

• Limited acquisition opportunities as hospitals are usually sold to strategic buyers

• Debt/mezzanine financing

SNF

• Supply-constrained markets with high barriers to entry • Newer properties with private/semi-private rooms • Stable operators with strong track records • Favorable payor mix, biased towards Medicare and private

pay • High occupancy

• Limited opportunities with possibilities for mezzanine investments

11

Slough Estates USA Inc.

Attractive Platform of Institutional Quality Real Estate

August 1, 2007Closed:

Core portfolio: Acquired at a 6.3% cap rate on forecasted 2008 NOIDevelopment pipeline: Target 8% - 11% yield

Key metrics:

Amgen; GenentechLargest tenants:

$1.8 billion development pipelineRepresents 3.8 million square feet upon completion (SF: 1.7 million; SD: 2.1 million)Increases market share in current marketsEstablishes significant presence in new regions (Carlsbad and Poway)Committed pipeline ($0.4 billion) is 86% pre-leased to investment grade tenantsAdditional spending of $1.2 billion over nine years

Development pipeline:

83 life science real estate assets located in high-barrier-to-entry coastal markets“Best-in-class” lab/pharma portfolio4.2 million square feet in San Francisco Bay area1.0 million square feet in San Diego County10-year property age82% occupied

Core portfolio:

$2.9 billion in a cash-for-stock transactionTransaction value:

HCP acquired Slough Estates USA Inc. (“SEUSA”)Acquisition:

12

Immediate scale in San Francisco and San Diego marketsCritical mass in two of the most heavily clustered life science markets with high barriers to entry

Above average growth profile for core portfolio14% cash NOI CAGR through 2010

Strong growth drivers for core portfolioOccupancy gains (82% rising to 89% in 2008)Below market in-place rentsStrengthening market fundamentals

Quality tenant baseApproximately 50% of current contracted rents from investment grade tenants; 88% from publicly traded companies

Manageable vacancies and lease expirationsLease expirations average 5.7% per annum through 2016Primarily NNN, single tenant leases

Attractive development platform provides growth opportunities$1.8 billion phased pipeline in four submarketsDesirable “campus” concept, allowing tenants to grow within the portfolioAbility to expand into new markets

Proven management team with well established reputationManagement expertise leveraged with key service providers

Significant tenant co-investment (i.e., tenant improvements)

Britannia Modular Labs II, South SF

Britannia Point Eden, Hayward

Profile of SEUSA

13

Attractive Dynamics in Underlying Markets

Largest cluster of life science activity in the U.S. with 22 million square feet and over 800 companies present

Bay Area vacancy has declined from 10% to 7% since 2004

Low vacancy rates and absence of immediate supply driving rents upward as rental rates have increased since 2004 from $2.55 to $3.35 per square foot

South San Francisco is the “hub” of the life science market in the Northern Peninsula and current vacancy is below 3%

Second largest cluster of life science activity in the U.S. with over 600 companies and several major research institutions present

San Diego vacancy has declined from 12% to 7% since 2004 and consists of approximately 14 million square feet

Rental rates have increased in excess of 20% since 2004 from $2.25 to $2.75 per square foot

Limited supply of specialty space such as vivariums, clean rooms and manufacturing suites

Positive Market Fundamentals Provide Opportunities to Capture Upside in Rents as Portfolio Stabilizes

San Diego CountySan Francisco Bay Area

14

SEUSA Top 10 Tenants

By 2010, 81% of SEUSA’s Rental Revenues will be Generated from SEUSA’s Top 10 TenantsInvestment Grade Tenants will Represent 55% of SEUSA’s Rental Revenues

Amgen and Genentech are among HCP’s leading relationships

Superior Tenant Credit Quality

% '07EContracted Credit Ratings(1)

2007 Tenants Rent (Moody’s/S&P)

Amgen 22% A2/A+Genentech 14% A1/AAExelixis 8% NRRigel Pharmaceuticals 7% NRMillennium Pharmaceuticals 5% NRFibroGen 3% NRSkyePharma 3% NRGoogle 3% NRTakeda N.A. (Syrrx) 3% Aa1/AAAbbott 2% A1/AA

Top 10 Tenants 70%

% '10EContracted Credit Ratings(1)

2010 Tenants Rent (Moody’s/S&P)

Amgen 26% A2/A+Genentech 22% A1/AARigel Pharmaceuticals 9% NRExelixis 8% NRMillennium Pharmaceuticals 4% NRSequenom 3% NRSkyePharma 3% NRFibroGen 2% NRPfizer (Rinat Neuroscience) 2% Aa1/AAATakeda N.A. (Syrrx) 2% Aa1/AA

Top 10 Tenants 81%

(1) Reflects Moody’s and S&P credit ratings as of August 20, 2007.

15

7%6% 6% 4% 6%2%

9% 8%4% 6% 5%

--%

16%11%

--%5%5%

11%17%

21%27% 29%

36%

45%53%

57%63%

68% 68%

84%

95% 95%100%

--

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

2007E 2008E 2009E 2010E 2011E 2012E 2013E 2014E 2015E 2016E 2017E 2018E 2019E 2020E 2021E 2022E 2023E

Sq. F

t. (0

00s)

Current YearCumulative

Contractual Lease Expirations(1)

(1) Based on existing and pre-leased properties.

Total4,869 square feet occupied

Manageable Lease Expiration ProfileSq

uare

feet

(In thousands)

16

Developing “state-of-the-market” product in markets with strong barriers to entry

$1.8 billion phased pipeline

$0.6 billion allocated purchase price ($0.3 billion land)

Additional spending of $1.2 billion over nine years

Represents 3.8 million square feet upon completion• 0.5 million square feet of pre-leased development• 3.3 million square feet of future development

59 buildings in four submarkets

Committed development of $0.4 billion – 86% pre-leased

Manage risk through pre-leasing and phasing

Increase market share in existing markets

Establish significant presence in new regions (Carlsbad and Poway)

Target 8%–11% yield

Assumes two years to develop and stabilize

Generic tenant improvements• $50/sf for office, $100–$125/sf for life science

Britannia Seaport Centre East, Redwood City

Britannia East Grand, South SF

Attractive Development Pipeline

17

O ther Sr. Housing

28%

Sunrise Sr. Housing

26%Life Science2%

MO B26%

Hospital13%

SNF4%

O ther1%

O ther Sr. Housing

19%

Sunrise Sr. Housing

20%

Life Science27%

MO B20%

Hospital10%

SNF3%

O ther1%

O ther Sr. Housing

31%

Sunrise Sr. Housing

23%Life Science

2%

MO B28%

Hospital12%

SNF3%

O ther1%

O ther Sr. Housing

24%

Sunrise Sr. Housing

17%

Life Science25%

MO B22%

Hospital9%

SNF2%

O ther1%

Total Investments(3)

Total Assets Under

Management(4)

Total: $9.9 billion Total: $12.8 billion

Enhance HCP’s High Quality, Low Risk Portfolio

(1) Portfolio data reflects HCP’s portfolio as of June 30, 2007.(2) Portfolio data reflects HCP’s portfolio as of June 30, 2007, inclusive of subsequent SEUSA acquisition and disposition of 41 senior housing facilities for $502 million to Emeritus.(3) Basis of presentation reflects the historical cost of real estate investments in HCP’s portfolio and HCP’s unconsolidated joint ventures.(4) Reflects 100% of all assets under management including assets in HCP’s unconsolidated joint ventures.

Total: $8.6 billion Total: $11.5 billion

HCP Current Stand-alone Portfolio(1) HCP Portfolio Pro Forma for SEUSA(2)

18

Younger Assets in More Attractive Sectors

Comparatively Younger AssetsPredominantly Private Pay

Acuity

Lower

HigherHospital

SNF

MOBA/L

CCRC

I/L

Gov’t Reimbursement Risk HigherLower

LifeScience

Significantly Repositioned HCP’s Real Estate Portfolio

87% of HCPportfolio

AssetAge

Younger

Older

Gov’t Reimbursement Risk HigherLower

09/30/02

SEUSA08/01/07

CRP10/05/06SNF Disposition

11/29/06

MedCap10/03/03

1

2

3

4

19

Opportunistic capital deployment and recycling

Active portfolio management

New operating platforms that accelerate FFO growth

Significant growth in assets under management

Structured underwriting processes and risk mitigation

Disciplined financial management

Industry consolidator focused on institutional quality healthcare real estate

What You Should Expect from HCP

“Institutional Partner of Choice” for Healthcare Real Estate

20

Growth DriversExamples

HCP MOP (GE JV)HCP Ventures II – $1.1 billion senior housing JVHCP Ventures III – $140 million MOB JVHCP Ventures IV – $585 million MOB JV

Enhanced ROEStructured for recurring fee streamPotential for promoted interest

Medical City Dallas and other DownREITsARC mezzanine debtProposed REIT tax legislation

Focused on larger, complex transactionsInvestments across capital spectrumTax efficient structures

SEUSA – 2007CNL – 2006MedCap Properties – 2003American Health Properties – 1999

Size and scale advantageInfrastructure investmentsAttractive currencyCreative structuring

HCA 9⅝% senior secured notesSEUSA warrants

Negotiated equity “kickers”Healthcare securities

Life science pipelineCirrus MOB/specialty hospital relationship

Higher risk adjusted returnsProduct type diversification

Horizon Bay lease restructureSale of Sierra Health buildingKindred swapSNF portfolio sale to CapitalSource

Active capital recyclingLease restructurings

Minimal lease expirationsMaster leases

2% – 3% same store growthStable recurring cash flow

Comments

IndustryConsolidation

Portfolio Upside

Development

SecuritiesInvestment

Assets UnderManagement

PropertyAcquisitions

Sustainable CorePortfolio Growth

21

$0

$1

$2

$3

$4

$5

$6

$7

$8

$9

$10

$11

$12

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Unconsolidated Joint VenturesConsolidated Assets

(In billions)

HCP Performance

Source: Company reports.(1) Represents the historical cost of real estate owned by HCP and its unconsolidated joint ventures, and the carrying amount of mortgage loans.(2) As of March 2, 2004, each shareholder received one additional share of common stock for each share they owned resulting from a 2-for-1 stock split declared by HCP on January 22, 2004. The stock split has been reflected in all periods presented.(3) Prior to merger-related charges and impairments.(4) Includes the impact of preferred redemption charges of $0.15 per diluted share.

Growth in Dividends/Share and FFO/Share(2)Assets Under Management(1)

Dividend/FFOper Share

FFO PayoutRatio

’96–’06 CAGR: 27%

$1.00

$1.20

$1.40

$1.60

$1.80

$2.00

$2.20

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 200675%

80%

85%

90%

95%

100%

105%

110%

Diluted FFO /share Dividends/share FFO Payout ratio

(4)

(3)

22

Financial Overview

SEUSA Transaction Financing

(1) Bridge loan is a 364-day facility with extension options; priced on ratings grid; no mandatory payments.(2) Credit metrics are calculated from pro forma financial statements which include the pro rata consolidation of material unconsolidated joint ventures.(3) As of June 30, 2007.(4) As of August 1, 2007.(5) As of August 15, 2007.

De-levering Plan

Senior Debt Ratings

S&P BBB

Moody’s Baa3

Fitch BBB

Credit Metrics(2)

(In billions)

Sources Uses

Cash consideration $ – $ 2.9

Bridge loan/cash(1) 3.0 –

Transaction expenses – 0.1

Total $ 3.0 $ 3.0

Asset dispositions

Contributions to JVs

Capital markets transactions

Strategic equity placement

Post

66%

13%

57%

Disposition(5)Emeritus

70%56%Unsecured leverage ratio

13% 16% Secured debt ratio

60% 50% Leverage ratio

Closing(4)Acquisition(3)AtPre

23

Conclusion

(1) Inclusive of SEUSA acquisition completed on August 1, 2007.(2) As of June 30, 2007 and assumes re-investment of dividends on ex-dividend date.

“Institutional Partner of Choice” for Healthcare Real Estate

Largest public healthcare REIT – $14.0 billion enterprise value(1)

Capitalizing on paradigm shift created by the “institutionalization” of healthcare real estate

Acquired Slough Estates USA, the premier life science platform, for $2.9 billion

Successfully completed the $5.3 billion CNL acquisition

High quality, lower risk portfolio – age, properties, markets, operators, lease structures and diversification

Portfolio heavily weighted towards non-government reimbursed, private pay sectors

Accelerating growth driven by new operating platforms

Compounded total shareholder return of 17%(2) per annum since IPO in 1985

Management team and infrastructure scaled for growth

24

Appendix

25

Reconciliation of Net Income and Funds From Operations (“FFO”)

(1) Includes the impact of $18.6 million of preferred redemption charges, or $0.15 per diluted share.

(In millions, except per share data) 2003(1) 2004 2005 2006

Net income applicable to common shares 121.8$ 147.9$ 151.9$ 396.4$ Real estate depreciation and amortization:

Continuing operations 58.5 72.5 94.9 144.2 Discontinued operations 21.6 16.8 13.1 9.9

Gain on sales of real estate (12.1) (21.1) (10.2) (275.3) Equity (income) loss from unconsolidated joint ventures (2.9) (2.2) 1.1 (8.3) FFO from unconsolidated joint ventures 5.5 8.7 8.1 7.3 Minority interests 9.7 12.2 13.0 14.8 Minority interests in FFO (9.9) (13.3) (14.2) (16.2) FFO applicable to common shares 192.2$ 221.5$ 257.7$ 272.8$

Distributions on convertible units 3.5 6.5 9.1 7.8

Diluted FFO applicable to common shares 195.7$ 228.0$ 266.8$ 280.6$

Impairments 14.0 17.1 - 9.6 Merger-related charges - - - 14.0

Diluted FFO applicable to common shares prior to impairments and merger related charges 209.7$ 245.1$ 266.8$ 304.2$

Diluted FFO per common share 1.54$ 1.66$ 1.89$ 1.82$

Diluted FFO per common share prior to impairments and merger-related charges 1.64$ 1.79$ 1.89$ 1.98$

Weighted average shares used to calculate diluted FFOper common share 127.5 137.2 141.0 153.8

Dividends declared per common share 1.66$ 1.67$ 1.68$ 1.70$

FFO payout ratio per common share 107.8% 100.6% 88.9% 93.4%

FFO payout ratio per common share prior to impairments and merger-related charges 101.2% 93.3% 88.9% 85.9%

26

Reporting Definitions

Annualized Revenues. The most recent monthly base rent due to HCP as of period end annualized for twelve months plus additional rents received by HCP over the most recent twelve month period as of period end. The Company uses Annualized Revenues for purposes of measuring operator concentration and determining certain property level metrics.

Beds/Units/Square Feet. Hospitals and skilled nursing facilities are measured by licensed bed count. Senior housing facilities are stated in units (e.g., studio, one or two bedroom units). MOBs and other healthcare facilities are measured in square feet.

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

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 minority interests’ share of earnings and gains or losses from real estate dispositions. The Company’s presentations of EBITDA and Adjusted EBITDA herein are solely as non-GAAP liquidity measures in connection with the presentation of Fixed Charge Coverage. 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 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 cash flow from operating activities, and other required measures under GAAP, to improve their understanding of the Company’s liquidity. 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. The Company believes cash flow from operating activities is the most directly comparable GAAP measure to EBITDA and Adjusted EBITDA. EBITDA and Adjusted EBITDA do not represent net income or cash flow from operations as defined by GAAP and should not be considered an alternative to those indicators. Further, the Company’s computation of EBITDA and Adjusted EBITDA may not be comparable to similar measures reported by other companies.

Fixed Charge Coverage. Adjusted EBITDA divided by Fixed Charges. The Company uses Fixed Charge Coverage, a non-GAAP financial measure, as a measure of liquidity. The Company believes 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 shareholders. The Company’s various debt agreements contain covenants that require the Company to maintain ratios similar to 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 Fixed Charge Coverage may not be comparable to similar fixed charge coverage ratios reported by other companies.

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 shareholders for purposes of presenting 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.

27

Reporting Definitions (cont’d)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 flow 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.

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 FFOPayout Ratio provides investors relevant and useful information because it measures the portion of FFO being declared as dividends to common shareholders.

GAAP. U.S. generally accepted accounting principles.

HCP MOP. Prior to November 30, 2006, HCP Medical Office Portfolio, LLC, was an unconsolidated joint venture formed between the Company and an affiliate of General Electric Company (“GE”), for which the Company was the managing member and had a 33% interest therein.

Investment. The carrying amount of real estate assets, including intangibles, after adding back accumulated depreciation and amortization and the carrying amount of mortgage loans receivable. Excludes assets held for sale and classified as discontinued operations.

Life Science. Laboratory and office space for biotechnology and pharmaceutical companies, scientific research institutions, government agencies and other entities involved in the life science industry.

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.

MOB. Medical office building.

“Other” Property Type. Physician group practice clinics and health and wellness centers.

Total Market Capitalization. Consolidated debt at Book Value plus the Company’s pro rata share of debt from unconsolidated joint ventures plus total Market Equity.