Healthpeak Properties (DOC) 10-K 12 Feb 10 2009 FY Annual report Financial data

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands	Dec. 31, 2009	Dec. 31, 2008
Real estate:
Buildings and improvements	$7,826,388	$7,738,817
Development costs and construction in progress	272,542	224,336
Land	1,547,518	1,546,889
Accumulated depreciation and amortization	(1,061,103)	(818,672)
Net real estate	8,585,345	8,691,370
Net investment in direct financing leases	600,077	648,234
Loans receivable, net	1,672,938	1,068,454
Investments in and advances to unconsolidated joint ventures	267,978	272,929
Accounts receivable, net of allowance of $10,772 and $18,413, respectively	43,726	33,834
Cash and cash equivalents	112,259	57,562
Restricted cash	33,000	35,078
Intangible assets, net	389,698	505,507
Real estate held for sale, net		35,737
Other assets, net	504,714	501,121
Total assets	12,209,735	11,849,826
LIABILITIES AND EQUITY
Bank line of credit		150,000
Term loan	200,000	200,000
Bridge loan		320,000
Senior unsecured notes	3,521,325	3,523,513
Mortgage and other secured debt	1,834,935	1,641,734
Other debt	99,883	102,209
Intangible liabilities, net	200,260	232,630
Accounts payable and accrued liabilities	309,596	211,715
Deferred revenue	85,127	60,185
Total liabilities	6,251,126	6,441,986
Commitments and contingencies
Preferred stock, $1.00 par value: 50,000,000 shares authorized; 11,820,000 shares issued and outstanding, liquidation preference of $25.00 per share	285,173	285,173
Common stock, $1.00 par value: 750,000,000 shares authorized; 293,548,162 and 253,601,454 shares issued and outstanding, respectively	293,548	253,601
Additional paid-in capital	5,719,400	4,873,727
Cumulative dividends in excess of earnings	(515,450)	(130,068)
Accumulated other comprehensive loss	(2,134)	(81,162)
Total stockholders' equity	5,780,537	5,201,271
Joint venture partners	7,529	12,912
Non-managing member unitholders	170,543	193,657
Total noncontrolling interests	178,072	206,569
Total equity	5,958,609	5,407,840
Total liabilities and equity	$12,209,735	$11,849,826

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
In Thousands, except Share data	Dec. 31, 2009	Dec. 31, 2008
CONSOLIDATED BALANCE SHEETS
Accounts receivable, allowance (in dollars)	$10,772	$18,413
Preferred stock, par value (in dollars per share)	$1	$1
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	11,820,000	11,820,000
Preferred stock, shares outstanding	11,820,000	11,820,000
Preferred stock, liquidation preference (in dollars per share)	$25	$25
Common stock, par value (in dollars per share)	$1	$1
Common stock, shares authorized	750,000,000	750,000,000
Common stock, shares issued	293,548,162	253,601,454
Common stock, shares outstanding	293,548,162	253,601,454

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (USD $)
In Thousands, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Revenues:
Rental and related revenues	$886,495	$875,436	$759,813
Tenant recoveries	89,582	82,811	64,932
Income from direct financing leases	51,495	58,149	63,852
Interest income	124,146	130,869	51,565
Investment management fee income	5,312	5,923	13,581
Total revenues	1,157,030	1,153,188	953,743
Costs and expenses:
Depreciation and amortization	319,583	313,404	258,264
Operating	185,898	193,121	175,704
General and administrative	78,476	73,698	67,522
Litigation provision	101,973
Impairments	75,389	18,276
Total costs and expenses	761,319	598,499	501,490
Other income (expense):
Gain on sale of real estate interest			10,141
Other income, net	7,940	25,846	24,395
Interest expense	(298,897)	(348,390)	(355,197)
Total other income (expense)	(290,957)	(322,544)	(320,661)
Income before income tax expense and equity income from unconsolidated joint ventures	104,754	232,145	131,592
Income tax expense	(1,924)	(4,248)	(1,444)
Equity income from unconsolidated joint ventures	3,511	3,326	5,645
Income from continuing operations	106,341	231,223	135,793
Discontinued operations:
Income before gain on sales of real estate, net of income taxes	2,614	19,746	73,994
Impairments	(125)	(9,175)
Gain on sales of real estate, net of income taxes	37,321	229,189	404,328
Total discontinued operations	39,810	239,760	478,322
Net income	146,151	470,983	614,115
Noncontrolling interests' and participating securities' share in earnings	(15,952)	(24,485)	(27,905)
Preferred stock dividends	(21,130)	(21,130)	(21,130)
Net income applicable to common shares	$109,069	$425,368	$565,080
Basic earnings per common share:
Continuing operations (in dollars per share)	0.25	0.78	0.42
Discontinued operations (in dollars per share)	0.15	1.01	2.3
Net income applicable to common shares (in dollars per share)	0.4	1.79	2.72
Diluted earnings per common share:
Continuing operations (in dollars per share)	0.25	0.78	0.42
Discontinued operations (in dollars per share)	0.15	1.01	2.28
Net income applicable to common shares (in dollars per share)	0.4	1.79	2.7
Weighted average shares used to calculate earnings per common share:
Basic (in shares)	274,216	237,301	207,924
Diluted (in shares)	274,631	237,972	208,920
Dividends declared per common share (in dollars per share)	1.84	1.82	1.78

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $)
In Thousands	Total Stockholders' Equity	Preferred Stock	Common Stock	Additional Paid-In Capital	Cumulative Dividends In Excess Of Earnings	Accumulated Other Comprehensive Income (Loss)	Noncontrolling Interests	Total
Balance at Dec. 31, 2006	$3,294,036	$285,173	$198,599	$3,108,908	($316,369)	$17,725	$161,765	$3,455,801
Balance (in shares) at Dec. 31, 2006		11,820	198,599
Comprehensive income:
Net income	589,015				589,015		25,100	614,115
Change in net unrealized gains (losses) on securities:
Unrealized gains (losses)	(10,490)					(10,490)		(10,490)
Less reclassification adjustment realized in net income	176					176		176
Change in net unrealized gains (losses) on cash flow hedges:
Unrealized gains (losses)	(9,647)					(9,647)		(9,647)
Change in Supplemental Executive Retirement Plan obligation	102					102		102
Foreign currency translation adjustment	32					32		32
Total comprehensive income	569,188						25,100	594,288
Issuance of common stock, net	617,651		17,894	599,757			(3,702)	613,949
Issuance of common stock, net (in shares)			17,894
Repurchase of common stock	(3,122)		(84)	(3,038)				(3,122)
Repurchase of common stock (in shares)			(84)
Exercise of stock options	8,114		410	7,704				8,114
Exercise of stock options (in shares)			410
Amortization of deferred compensation	11,408			11,408				11,408
Preferred dividends	(21,130)				(21,130)			(21,130)
Common dividends ($1.78, $1.82 and $1.84 per share during 2007, 2008 and 2009, respectively)	(372,436)				(372,436)			(372,436)
Distributions to noncontrolling interests							(22,345)	(22,345)
Noncontrolling interests in acquired assets							180,698	180,698
Purchase of noncontrolling interests							(2,245)	(2,245)
Balance at Dec. 31, 2007	4,103,709	285,173	216,819	3,724,739	(120,920)	(2,102)	339,271	4,442,980
Balance (in shares) at Dec. 31, 2007		11,820	216,819
Comprehensive income:
Net income	448,495				448,495		22,488	470,983
Change in net unrealized gains (losses) on securities:
Unrealized gains (losses)	(88,266)					(88,266)		(88,266)
Less reclassification adjustment realized in net income	7,230					7,230		7,230
Change in net unrealized gains (losses) on cash flow hedges:
Unrealized gains (losses)	(1,485)					(1,485)		(1,485)
Less reclassification adjustment realized in net income	3,999					3,999		3,999
Change in Supplemental Executive Retirement Plan obligation	292					292		292
Foreign currency translation adjustment	(830)					(830)		(830)
Total comprehensive income	369,435						22,488	391,923
Issuance of common stock, net	1,163,002		36,233	1,126,769			(111,467)	1,051,535
Issuance of common stock, net (in shares)			36,233
Repurchase of common stock	(3,184)		(99)	(3,085)				(3,184)
Repurchase of common stock (in shares)			(99)
Exercise of stock options	12,187		648	11,539				12,187
Exercise of stock options (in shares)			648
Amortization of deferred compensation	13,765			13,765				13,765
Preferred dividends	(21,130)				(21,130)			(21,130)
Common dividends ($1.78, $1.82 and $1.84 per share during 2007, 2008 and 2009, respectively)	(436,513)				(436,513)			(436,513)
Distributions to noncontrolling interests							(28,375)	(28,375)
Purchase of noncontrolling interests							(15,348)	(15,348)
Balance at Dec. 31, 2008	5,201,271	285,173	253,601	4,873,727	(130,068)	(81,162)	206,569	5,407,840
Balance (in shares) at Dec. 31, 2008		11,820	253,601
Comprehensive income:
Net income	131,690				131,690		14,461	146,151
Change in net unrealized gains (losses) on securities:
Unrealized gains (losses)	82,816					82,816		82,816
Less reclassification adjustment realized in net income	(4,197)					(4,197)		(4,197)
Change in net unrealized gains (losses) on cash flow hedges:
Unrealized gains (losses)	179					179		179
Less reclassification adjustment realized in net income	781					781		781
Change in Supplemental Executive Retirement Plan obligation	(521)					(521)		(521)
Foreign currency translation adjustment	(30)					(30)		(30)
Total comprehensive income	210,718						14,461	225,179
Issuance of common stock, net	871,216		39,664	831,552			(23,045)	848,171
Issuance of common stock, net (in shares)			39,664
Repurchase of common stock	(2,685)		(110)	(2,575)				(2,685)
Repurchase of common stock (in shares)			(110)
Exercise of stock options	7,426		393	7,033				7,426
Exercise of stock options (in shares)			393
Amortization of deferred compensation	14,388			14,388				14,388
Preferred dividends	(21,130)				(21,130)			(21,130)
Common dividends ($1.78, $1.82 and $1.84 per share during 2007, 2008 and 2009, respectively)	(495,942)				(495,942)			(495,942)
Distributions to noncontrolling interests							(15,541)	(15,541)
Purchase of noncontrolling interests	(4,725)			(4,725)			(4,372)	(9,097)
Balance at Dec. 31, 2009	$5,780,537	$285,173	$293,548	$5,719,400	($515,450)	($2,134)	$178,072	$5,958,609
Balance (in shares) at Dec. 31, 2009		11,820	293,548

1_CONSOLIDATED STATEMENTS OF ST

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) (USD $)
	1/1/2009 - 12/31/2009	1/1/2008 - 12/31/2008	1/1/2007 - 12/31/2007
CONSOLIDATED STATEMENTS OF EQUITY
Dividends declared per common share (in dollars per share)	1.84	1.82	1.78

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Cash flows from operating activities:
Net income	$146,151	$470,983	$614,115
Depreciation and amortization of real estate, in-place lease and other intangibles:
Continuing operations	319,583	313,404	258,264
Discontinued operations	542	7,832	22,915
Amortization of above and below market lease intangibles, net	(14,780)	(8,440)	(6,056)
Stock-based compensation	14,388	13,765	11,408
Amortization of debt premiums, discounts and issuance costs, net	8,328	9,869	17,781
Straight-line rents	(46,688)	(39,463)	(49,725)
Interest accretion	(39,172)	(27,019)	(8,739)
Deferred rental revenue	12,804	13,931	9,027
Equity income from unconsolidated joint ventures	(3,511)	(3,326)	(5,645)
Distributions of earnings from unconsolidated joint ventures	7,273	6,745	5,264
Gain on sales of real estate and real estate interest	(37,321)	(229,189)	(414,469)
Gain on early repayment of debt		(2,396)
Marketable securities (gains) losses, net	(8,876)	7,230	(2,233)
Derivative losses, net	69	4,577
Impairments	75,514	27,451
Recovery of loan losses			(386)
Impairments of unconsolidated joint ventures		400
Changes in:
Accounts receivable	4,408	10,681	(13,115)
Other assets	(6,881)	(1,315)	(11,989)
Accrued liability for litigation provision	101,973
Accounts payable and other accrued liabilities	(18,170)	(7,023)	26,634
Net cash provided by operating activities	515,634	568,697	453,051
Cash flows from investing activities:
Cash used in other acquisitions and development of real estate	(96,528)	(155,531)	(425,464)
Lease commissions and tenant and capital improvements	(40,702)	(59,991)	(49,669)
Proceeds from sales of real estate	72,272	639,585	887,218
Cash used in SEUSA acquisition, net of cash acquired			(2,982,689)
Contributions to unconsolidated joint ventures	(7,975)	(3,579)	(3,641)
Distributions in excess of earnings from unconsolidated joint ventures	6,869	8,400	478,293
Purchase of marketable securities		(30,089)	(26,647)
Proceeds from sales of marketable securities	157,122	10,700	53,817
Proceeds from sales of interests in unconsolidated joint ventures		2,855
Principal repayments on loans receivable and direct financing leases	10,952	16,790	104,009
Investments in loans receivable and direct financing leases, net	(165,494)	(3,162)	(923,534)
Decrease in restricted cash	2,078	1,349	192
Net cash provided by (used in) investing activities	(61,406)	427,327	(2,888,115)
Cash flows from financing activities:
Net borrowings (repayments) under bank line of credit	(150,000)	(801,700)	327,200
Repayments of term and bridge loans	(320,000)	(1,030,000)	(1,904,593)
Borrowings under term and bridge loans		200,000	2,750,000
Repayments of mortgage debt	(234,080)	(225,316)	(97,882)
Issuance of mortgage debt	1,942	579,557	143,421
Repayments and repurchases of senior unsecured notes	(7,735)	(300,000)	(20,000)
Issuance of senior unsecured notes			1,100,000
Settlement of cash flow hedges, net		(9,658)
Debt issuance costs	(860)	(12,657)	(27,044)
Net proceeds from the issuance of common stock and exercise of options	852,912	1,060,538	618,854
Dividends paid on common and preferred stock	(517,072)	(457,643)	(393,566)
Purchase of noncontrolling interests	(9,097)
Distributions to noncontrolling interests	(15,541)	(37,852)	(23,462)
Net cash provided by (used in) financing activities	(399,531)	(1,034,731)	2,472,928
Net increase (decrease) in cash and cash equivalents	54,697	(38,707)	37,864
Cash and cash equivalents, beginning of year	57,562	96,269	58,405
Cash and cash equivalents, end of year	$112,259	$57,562	$96,269

Business

Business
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Business	(1)Business HCP,Inc., an SP500 company, is a Maryland corporation that is organized to qualify as a real estate investment trust ("REIT") which, together with its consolidated entities (collectively, "HCP" or the "Company"), invests primarily in real estate serving the healthcare industry in the United States. The Company acquires, develops, leases, manages and disposes of healthcare real estate and provides financing to healthcare providers.

Summary of Significant Accounti

Summary of Significant Accounting Policies
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Summary of Significant Accounting Policies	(2)Summary of Significant Accounting Policies Use of Estimates Management is required to make estimates and assumptions in the preparation of financial statements in conformity with U.S. generally accepted accounting principles ("GAAP"). These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from management's estimates. Principles of Consolidation The consolidated financial statements include the accounts of HCP, its wholly-owned subsidiaries and joint ventures that it controls, through voting rights or other means. All material intercompany transactions and balances have been eliminated in consolidation. At inception of joint venture transactions, the Company identifies entities for which control is achieved through means other than voting rights ("variable interest entities" or "VIEs") and determines which business enterprise is the primary beneficiary of its operations. A variable interest entity is broadly defined as an entity where either (i)the equity investors as a group, if any, do not have a controlling financial interest, or (ii)the equity investment at risk is insufficient to finance that entity's activities without additional subordinated financial support. The Company consolidates investments in VIEs when it is determined to be the primary beneficiary at either the inception of the VIE or upon the occurrence of a qualifying reconsideration event. Qualifying reconsideration events include, but are not limited to, the modification of contractual arrangements that affect the characteristics or adequacy of the entity's equity investments at risk and the disposal of all or a portion of an interest held by the primary beneficiary. At December31, 2009, the Company did not consolidate any significant variable interest entities. The Company uses qualitative and quantitative approaches when determining whether it is (or is not) the primary beneficiary of a VIE. Consideration of various factors includes, but is not limited to, the form of the Company's ownership interest, its representation on the entity's governing body, the size and seniority of its investment, various cash flow scenarios related to the VIE, its ability and the rights of other investors to participate in policy making decisions and to replace the manager of and/or liquidate the venture. For its investments in joint ventures, the Company evaluates the type of rights held by the limited partner(s), which may preclude consolidation in circumstances in which the sole general partner would otherwise consolidate the limited partnership. The assessment of limited partners' rights and their impact on the presumption of control over a limited partnership by the sole general partner should be made when an investor becomes the sole general partner and should be reassessed if (i)there is a change to the terms or in the exercisability of the rights of the limited partners, (ii)the sole general partner increases or de

Mergers and Acquisitions

Mergers and Acquisitions
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Mergers and Acquisitions	(3)Mergers and Acquisitions Slough Estates USAInc. On August1, 2007, the Company closed its acquisition of SEUSA for aggregate cash consideration of approximately $3.0billion. SEUSA's life science portfolio is concentrated in the SanFrancisco Bay Area and SanDiego County. The calculation of total consideration follows (in thousands): Payment of aggregate cash consideration $ 2,978,911 Estimated acquisition costs, net of cash acquired 3,800 Purchase price, net of assumed liabilities 2,982,711 Fair value of liabilities assumed, including debt 220,133 Purchase price $ 3,202,844 Under the purchase method of accounting, the assets and liabilities of SEUSA were recorded at their relative fair values as of the acquisition date. During the year ended December31, 2008, the Company revised its initial purchase price allocation for its acquired interest in SEUSA, which resulted in the reallocation of $51million among buildings and improvements, development costs and construction in progress, land, intangible assets and investments in and advances to unconsolidated joint ventures from its preliminary allocation at December31, 2007. The changes from the Company's initial purchase price allocation did not have a significant impact on the Company's results of operations for the year ended December31, 2008. The following table summarizes the estimated fair values of the SEUSA assets acquired and liabilities assumed as of the acquisition date of August1, 2007 (in thousands): Assets acquired Buildings and improvements $ 1,664,156 Developments in process 254,626 Land 827,041 Investments in and advances to unconsolidated joint ventures 68,300 Intangible assets 351,500 Other assets 37,221 Total assets acquired $ 3,202,844 Liabilities assumed Mortgages payable and other debt $ 33,553 Intangible liabilities 147,700 Other liabilities 38,880 Total liabilities assumed 220,133 Net assets acquired $ 2,982,711 The related assets, liabilities and results of operations of SEUSA are included in the consolidated financial statements from the date of acquisition. Pro Forma Results of Operations The following unaudited pro forma consolidated results of operations for the year ended December31, 2007 assume that the acquisition of SEUSA was completed as of January1, 2007 as shown below (in thousands, except per share amounts): Revenues $ 1,067,925 Net income 478,195 Basic earnings per common share $ 2.06 Diluted earnings per common share 2.05 Pro forma data may not be indicative of the results that would have been obtained had the acquisition actually occurred as of January1, 2007, nor does it intend to be a projection of future results.

Real Estate Property Investment

Real Estate Property Investments
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Real Estate Property Investments	(4)Real Estate Property Investments During the year ended December31, 2009, the Company funded an aggregate of $119million for construction, tenant and other capital improvement projects, primarily in its life science segment. During the year ended December31, 2008, the Company acquired a senior housing facility for $11million, purchased a joint venture interest valued at $29million and funded an aggregate of $158million for construction and other capital improvement projects, primarily in its life science segment. During 2008, three of the Company's life science facilities located in South SanFrancisco were placed into service.

Dispositions of Real Estate and

Dispositions of Real Estate and Discontinued Operations
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Dispositions of Real Estate and Discontinued Operations	(5)Dispositions of Real Estate and Discontinued Operations Dispositions of Real Estate During the year ended December31, 2009, the Company sold 14 properties for $72million and recognized gain on sales of real estate of $37million. The Company's sales of properties during the year ended December31, 2009 were made from the following segments: (i)$46million of hospital, including a hospital located in LosGatos, California, for $45million; (ii)$15million of senior housing; and (iii)$11million of medical office. During the year ended December31, 2008, the Company sold 51 properties for approximately $643million and recognized on sales of real estate of $229million. The Company's sales of properties were made from the following segments: (i)$427million of hospital, (ii)$97million of skilled nursing, (iii)$95million of medical office and (iv)$24million of senior housing. Dispositions of Real Estate Interests On January5, 2007, the Company formed a senior housing joint venture ("HCP VenturesII"), which included 25 properties valued at $1.1billion that were encumbered by a $686million secured debt facility. The 25 properties included in this joint venture were acquired in the Company's acquisition of CNL Retirement Properties,Inc. ("CRP") in 2006 and were classified as held for contribution within three months from the close of the CRP acquisition. These assets were not depreciated or amortized prior to their contribution, as these assets were held for contribution, and the value allocated to these assets was based on the disposition proceeds received. The Company received approximately $280million in proceeds, including a one-time acquisition fee of $5.4million, which is included in investment management fee income. No gain or loss was recognized for the sale of a 65% interest in this joint venture. The Company acts as the managing member and receives asset management fees. On April30, 2007, the Company formed a medical office building joint venture, HCP VenturesIV,LLC ("HCP VenturesIV"), which included 55 properties valued at approximately $585million that were encumbered by a $344million secured debt facility. Upon the disposition of an 80% interest in this venture, the Company received proceeds of $196million, including a one-time acquisition fee of $3million, which is included in investment management fee income, and recognized a gain of $10.1million. The Company acts as the managing member and receives asset management fees. Properties Held for Sale At December31, 2008, the carrying amount of assets held for sale aggregated to $35.7million. No properties were held for sale as of December31, 2009. Results from Discontinued Operations The following table summarizes operating income from discontinued operations, impairments and gains on sales of real estate included in discontinued operations (dollars in thousands): Year Ended December31, 2009 2008 2007 Rental and related revenues $ 3,830 $ 37,681 $ 115,584 Other revenues 232 55 3,138 Total revenues 4,062 37,736 118,722 Depreciation and amortization expenses

Net Investment in Direct Financ

Net Investment in Direct Financing Leases
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Net Investment in Direct Financing Leases	(6)Net Investment in Direct Financing Leases The components of net investment in DFLs consisted of the following (dollars in thousands): Year Ended December31, 2009 2008 Minimum lease payments receivable $ 1,338,634 $ 1,373,283 Estimated residual values 467,248 467,248 Allowance for DFL losses (54,957 ) Less unearned income (1,150,848 ) (1,192,297 ) Net investment in direct financing leases $ 600,077 $ 648,234 Properties subject to direct financing leases 30 30 The DFLs were acquired in the Company's merger with CRP. CRP determined that these leases were DFLs, and the Company is required to carry forward CRP's accounting conclusions after the acquisition date relative to their assessment of these leases, provided that the Company does not believe CRP's accounting to be in error. The Company believes that its accounting for the leases is appropriate and in accordance with GAAP. Certain leases contain provisions that allow the tenants to elect to purchase the properties during or at the end of the lease terms for the aggregate initial investment amount plus adjustments, if any, as defined in the lease agreements. Certain leases also permit the Company to require the tenants to purchase the properties at the end of the lease terms. Lease payments due to the Company relating to three land-only DFLs, along with the land, are subordinate to and serve as collateral for first mortgage construction loans entered into by Erickson Retirement Communities and its affiliate entities ("Erickson") to fund development costs related to the properties. During the three months ended December31, 2008, the Company determined that two of these DFLs were impaired and began recognizing income on a cost-recovery basis. As a result of Erickson's October19, 2009 bankruptcy filing, the Company recorded a provision for DFL losses (impairment charges) of $15.1million for the three months ending September30, 2009 related to the two DFLs above, which was based on the Company's estimate of the present value of future cash flows that would result from what was viewed as the probable outcome of Erickson's reorganization plan. At that time, the Company determined that an impairment charge would not be required for the third DFL since that asset was performing, nor would an impairment charge be required for a $10million participation in a senior construction loan, for which Erickson is the borrower, since the estimated fair value of the underlying collateral supporting the loan was sufficient for the Company to recover its investment. On December23, 2009, an auction was concluded with respect to Erickson's assets, and on December30, 2009, Erickson filed an amended plan of reorganization providing additional detail about the results of the auction and the allocation of auction proceeds. The amended plan proposed that the Company would not be entitled to any of the proceeds with respect to the three DFLs and would receive only a nominal recovery with respect to the Company's participation in the senior construction loan. Additionally, on January

Loans Receivable

Loans Receivable
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Loans Receivable	(7)Loans Receivable The following table summarizes the Company's loans receivable (in thousands): December31, 2009 2008 Real Estate Secured Other Secured Total Real Estate Secured Other Secured Total Mezzanine $ $ 999,118 $ 999,118 $ $ 999,891 $ 999,891 Other 783,798 84,079 867,877 71,004 81,062 152,066 Unamortized discounts, fees and costs (115,422 ) (66,196 ) (181,618 ) (83,262 ) (83,262 ) Allowance for loan losses (8,148 ) (4,291 ) (12,439 ) (241 ) (241 ) $ 660,228 $ 1,012,710 $ 1,672,938 $ 71,004 $ 997,450 $ 1,068,454 Following is a summary of loans receivable secured by real estate at December31, 2009 (in thousands): Final Payment Due Number of Loans Payment Terms Initial Principal Amount Carrying Amount 2010 4 Monthly interest-only payments of $14,000, at 6.00% secured by an assisted living facility in South Carolina; monthly interest and principal payments of $190,000 at 11.55% secured by two skilled nursing facilities in Colorado; monthly interest and principal payments of $5,800, at 9.00% secured by an assisted living facility in Georgia; and monthly interest-only payments of $42,000 at 5.50% secured by an assisted living facility in Texas. $ 33,947 $ 16,449 2011 1 Monthly interest and principal payments of $37,000 at 10.44% secured by an assisted living facility in North Carolina. 3,859 2,896 2013 1 Monthly interest-only payments at LIBOR plus 1.25% (1.48%) secured by 331 skilled nursing facilities in 30 states. 719,922 603,943 2014 1 Monthly interest and principal payments of $16,000 at 11.00% secured by a skilled nursing facility in Montana. 1,900 1,632 2016 1 Monthly interest payments of $250,000 at 8.50% secured by a hospital in Texas. 35,308 35,308 8 $ 794,936 $ 660,228 At December31, 2009, minimum future principal payments, net of allowance for loan losses, to be received on loans receivable, including those secured by real estate, are $95million in 2010, $3million in 2011, $1.72billion in 2013, $2million in 2016 and $35million thereafter. On October5, 2006, through its merger with CRP, the Company acquired an interest-only, senior secured term loan made to an affiliate of the Cirrus Group,LLC ("Cirrus"). The loan had a maturity date of December31, 2008, with a one-year extension period at the option of the borrower, subject to certain conditions, under which amounts were borrowed to finance the acquisition, development, syndication and operation of new and existing surgical partnerships. The loan accrues interest at a rate of 14.0%, of which 9.5% is payable monthly and the balance of 4.5% is deferred until maturity. The loan is collateralized by all of the assets of the borrower (comprised primarily of interests in partnerships operating surgical facilities, some of which ar

Investments in and Advances to

Investments in and Advances to Unconsolidated Joint Ventures
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Investments in and Advances to Unconsolidated Joint Ventures	(8)Investments in and Advances to Unconsolidated Joint Ventures The Company owns interests in the following entities which are accounted for under the equity method at December31, 2009 (dollars in thousands): Entity(1) Properties Investment(2) Ownership% HCP VenturesII 25 senior housing facilities $ 138,878 35 HCP VenturesIII,LLC 13 MOBs 10,823 30 HCP VenturesIV,LLC 54 MOBs and 4 hospitals 40,037 20 HCP Life Science(3) 4 life science facilities 64,076 50-63 Horizon Bay Hyde Park,LLC 1 senior housing development 7,927 75 Suburban Properties,LLC 1 MOB 3,429 67 Advances to unconsolidated joint ventures, net 2,808 $ 267,978 Edgewood Assisted Living Center,LLC(4)(5) 1 senior housing facility $ (322 ) 45 Seminole Shores Living Center,LLC(4)(5) 1 senior housing facility (802 ) 50 $ 266,854 (1) These joint ventures are not considered VIEs and are not consolidated since the Company does not control the entities through voting rights or other means. See Note2 regarding the Company's policy on consolidation. (2) Represents the carrying value of the Company's investment in the unconsolidated joint venture. See Note2 regarding the Company's policy for accounting for joint venture interests. (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: (i)Torrey Pines Science Center,LP (50%); (ii)Britannia Biotech Gateway,LP (55%); and (iii)LASDK,LP (63%). The unconsolidated joint ventures were acquired as part of the Company's purchase of SEUSA on August1, 2007. (4) As of December31, 2009, the Company has guaranteed in the aggregate $4million of a total of $8million of mortgage debt for these joint ventures. No amounts have been recorded related to these guarantees at December31, 2009. (5) Negative investment amounts are included in accounts payable and accrued liabilities. Summarized combined financial information for the Company's unconsolidated joint ventures follows (in thousands): December31, 2009 2008 Real estate, net $ 1,655,754 $ 1,703,308 Other assets, net 189,841 184,297 Total assets $ 1,845,595 $ 1,887,605 Mortgage debt $ 1,159,589 $ 1,172,702 Accounts payable 38,255 39,883 Other partners' capital 462,243 488,860 HCP's capital(1) 185,508 186,160 Total liabilities and partners' capital $ 1,845,595 $ 1,887,605 Year Ended December31, 2009 2008 2007(2) Total revenues $ 184,102 $ 182,543 $ 154,748 Net income (loss) (341 ) (1,720 ) 8,532 HCP's equity income 3,511 3,326 5,645 Fees earned by HCP 5,312 5,923 13,581 Distributions received, net 14,142 15,145 483,557 (1) Ag

Intangibles

Intangibles
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Intangibles	(9)Intangibles At December31, 2009 and 2008, intangible lease assets, comprised of lease-up intangibles, above market tenant lease intangibles, below market ground lease intangibles and intangible assets related to non-compete agreements, were $592.1million and $679.4million, respectively. At December31, 2009 and 2008, the accumulated amortization of intangible assets was $202.4million and $173.9million, respectively. The remaining weighted average amortization period of intangible assets was 9 and 10years at December31, 2009 and 2008, respectively. At December31, 2009 and 2008, below market lease intangibles and above market ground lease intangibles were $284.2million and $293.4million, respectively. At December31, 2009 and 2008, the accumulated amortization of intangible liabilities was $83.9million and $60.8million, respectively. The remaining weighted-average amortization period of unfavorable market lease intangibles is approximately 9years at December31, 2009 and 2008. For the years ended December31, 2009, 2008 and 2007, rental income includes additional revenues of $16.4million, $9.0million and $6.2million, respectively, from the amortization of net below market lease intangibles. For the years ended December31, 2009, 2008 and 2007, operating expense includes additional expense of $0.4million, $0.4million and $0.3million, respectively, from the amortization of net above market ground lease intangibles. For the years ended December31, 2009, 2008 and 2007, depreciation and amortization expense includes additional expense of $63.3million, $74.0million and $57.7million, respectively, from the amortization of lease-up and non-compete agreement intangibles. On October5, 2006, the Company acquired CRP in a merger. Through the purchase method of accounting, the Company allocated $35million of above-market lease intangibles related to 15 senior housing facilities that were operated by Sunrise Senior Living,Inc. and its subsidiaries ("Sunrise"). In June2009, in a subsequent review of the related calculations of the relative fair value of these lease intangibles, the Company noted valuation errors, which resulted in an aggregate overstatement of the above-market lease intangible assets and an aggregate understatement of building and improvements of $28million. In the periods from October5, 2006 through March31, 2009, these errors resulted in an understatement of rental and related revenues and depreciation expense of approximately $6million and $2million, respectively. The Company recorded the related corrections in June2009, and determined that such misstatements to the Company's results of operations or financial position during the periods from October5, 2006 through June30, 2009 were immaterial. Estimated aggregate amortization of intangible assets and liabilities for each of the five succeeding fiscal years and thereafter follows (in thousands): Intangible Assets Intangible Liabilities Net Intangible Amortization 2010 $ 63,444 $ 27,322 $ 36,122 2011 46,459 23,392 23,067 2012 41,922 22,544 19,378 2013 39,762 22,025 17,737 2014 35

Other Assets

Other Assets
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Other Assets	(10)Other Assets The Company's other assets consisted of the following (in thousands): December31, 2009 2008 Marketable debt securities $ 172,799 $ 228,660 Marketable equity securities 3,521 3,845 Straight-line rent assets, net 158,674 112,038 Deferred debt issuance costs, net 18,607 23,512 Goodwill 50,346 51,746 Other 100,767 81,320 Total other assets $ 504,714 $ 501,121 The cost or amortized cost, estimated fair value and gross unrealized gains and losses on marketable securities follows (in thousands): Gross Unrealized Cost(1) Fair Value Gains Losses December31, 2009: Debt securities $ 160,830 $ 172,799 $ 11,969 $ Equity securities 3,685 3,521 236 (400 ) Total investments $ 164,515 $ 176,320 $ 12,205 $ (400 ) December31, 2008: Debt securities $ 295,138 $ 228,660 $ $ (66,478 ) Equity securities 4,181 3,845 (336 ) Total investments $ 299,319 $ 232,505 $ $ (66,814 ) (1) Represents original cost basis reduced by other-than-temporary impairments and discount or premium accretion recorded through earnings, if any. At December31, 2009, $141million of the Company's marketable debt securities accrue interest at 9.625% and mature in November2016 and $20million accrue interest at 9.25% and mature in May2017. The issuers of these notes may elect to pay interest in cash or by issuing additional notes for all or a portion of the interest payments. In November2008, the issuer of the Company's 9.625% debt securities elected to make its next interest payment by issuing additional notes, and in May2009, the Company received $14million of additional debt securities in lieu of its cash interest payment. In May2009, the issuer of the Company's 9.625% debt securities elected to make its next interest payment in cash. Marketable securities with unrealized losses at December31, 2009 are not considered to be other-than-temporarily impaired as the Company has the intent and ability to hold these investments for a period of time sufficient to allow for an anticipated recovery in fair value. During the year ended December31, 2008, the Company purchased $32million of marketable debt securities for $30million that accrue interest at 9.625% and mature on November15, 2016. During the year ended December31, 2009 and 2008, the Company sold marketable debt securities for $157million and $11million, which resulted in gains of approximately $9.3million and $0.7million, respectively. During the year ended December31, 2008, the Company also recognized losses related to other-than-temporary decline in the value of marketable equity securities of $8million. Gains, losses and other-than-temporary impairment losses related to available-for-sale marketable securities are included in other income, net.

Debt

Debt
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Debt	(11)Debt Bank Line of Credit and Bridge and Term Loans The Company's revolving line of credit facility with a syndicate of banks provides for an aggregate borrowing capacity of $1.5billion and matures on August1, 2011. This revolving line of credit facility accrues interest at a rate per annum equal to LIBOR plus a margin ranging from 0.325% to 1.00%, depending upon the Company's debt ratings. The Company pays a facility fee on the entire revolving commitment ranging from 0.10% to 0.25%, depending upon its debt ratings. Based on the Company's debt ratings at December31, 2009, the margin on the revolving line of credit facility was 0.55% and the facility fee was 0.15%. At December31, 2009, the Company had no outstanding amounts drawn under this revolving line of credit facility. At December31, 2009, a $103million letter of credit was issued against its revolving line of credit facility as a result of the Ventas litigation judgment. For further information regarding the Ventas litigation judgment see Note12. At December31, 2009, the outstanding balance of the Company's term loan was $200million with a maturity date of August1, 2011. The term loan accrues interest at a rate per annum equal to LIBOR plus a margin ranging from 1.825% to 2.375%, depending upon the Company's debt ratings (weighted-average effective interest rate of 2.70% at December31, 2009). Commencing on October25, 2010, the margin on this loan will increase by an additional 0.25% through its maturity. Based on the Company's debt ratings at December31, 2009, the margin on the term loan was 2.00%. The Company's revolving line of credit facility and term loan contain certain financial restrictions and other customary requirements, including cross-default provisions to other indebtedness. Among other things, these covenants, using terms defined in the agreement (i)limit the ratio of Consolidated Total Indebtedness to Consolidated Total Asset Value to 60%, (ii)limit the ratio of Unsecured Debt to Consolidated Unencumbered Asset Value to 65%, (iii)require a Fixed Charge Coverage ratio of 1.75times, and (iv)require a formula-determined Minimum Consolidated Tangible Net Worth of $4.9billion at December31, 2009. At December31, 2009, the Company was in compliance with each of these restrictions and requirements of the revolving line of credit facility and term loan. On May8, 2009, the Company repaid the remaining $320million outstanding balance under its bridge loan credit facility, which accrued interest at a rate per annum equal to LIBOR plus a margin ranging from 0.425% to 1.25%, with proceeds received from the issuance of shares of its common stock. Senior Unsecured Notes At December31, 2009, the Company had $3.5billion in aggregate principal amount of senior unsecured notes outstanding with interest rates ranging from 1.15% to 7.07%. The weighted-average effective interest rate on the senior unsecured notes at December31, 2009 was 6.12%. Discounts and premiums are amortized to interest expense over the term of the related senior unsecured notes. In September2008, the Company repaid $300million of maturing senior unsecured notes which accrued interest based

Commitments and Contingencies

Commitments and Contingencies
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Commitments and Contingencies	(12)Commitments and Contingencies Legal Proceedings From time to time, the Company is a party to legal proceedings, lawsuits and other claims that arise in the ordinary course of the Company's business. Except as described in this Note12, the Company is not aware of any other legal proceedings or claims that it believes may have, individually or taken together, a material adverse effect on the Company's business, prospects, financial condition or results of operations. The Company's policy is to accrue legal expenses as they are incurred. On May3, 2007, Ventas,Inc. ("Ventas") filed a complaint against the Company in the United States District Court for the Western District of Kentucky asserting claims of tortious interference with contract and tortious interference with prospective business advantage. The complaint alleged, among other things, that the Company interfered with Ventas' purchase agreement with Sunrise Senior Living Real Estate Investment Trust ("Sunrise REIT"); that the Company interfered with Ventas' prospective business advantage in connection with the Sunrise REIT transaction; and that the Company's actions caused Ventas to suffer damages. As part of the same litigation, the Company filed counterclaims against Ventas as successor to Sunrise REIT. On March25, 2009, the District Court issued an order dismissing the Company's counterclaims. On April8, 2009, the Company filed a motion for leave to file amended counterclaims. On May26, 2009, the District Court denied the Company's motion. Ventas sought approximately $300million in compensatory damages plus punitive damages. On July16, 2009, the District Court dismissed Ventas's claim that HCP interfered with Ventas's purchase agreement with Sunrise REIT, dismissed claims for compensatory damages based on alleged financing and other costs, and allowed Ventas's claim of interference with prospective advantage to proceed to trial. Ventas's claim was tried before a jury between August18, 2009 and September4, 2009. During the trial, the District Court dismissed Ventas's claim for punitive damages. On September4, 2009, the jury returned a verdict in favor of Ventas in the amount of approximately $102million in compensatory damages. The District Court entered a judgment against the Company in that amount on September8, 2009, which the Company recorded as a litigation provision expense during the three months ended September30, 2009. On September22, 2009, the Company filed a motion for judgment as a matter of law or for a new trial. Also on September22, 2009, Ventas filed a motion seeking approximately $20million in prejudgment interest and approximately $4million in additional damages to account for changes in currency exchange rates. The District Court denied both parties' post-trial motions on November17, 2009. The Company filed a notice of appeal in the United States Court of Appeals for the Sixth Circuit on November17, 2009; Ventas filed a notice of appeal on November25, 2009. The court of appeals has set a briefing schedule for the appeal; the court of appeals has not yet set a date for oral argument. On June29, 2009, several of the Company's subsidiaries, tog

Stockholders' Equity

Stockholders' Equity
	1/1/2009 - 12/31/2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Stockholders' Equity	(13)Stockholders' Equity Preferred Stock The following summarizes cumulative redeemable preferred stock outstanding at December31, 2009: Series Shares Outstanding Issue Price Dividend Rate Callable at Par on or After SeriesE 4,000,000 $ 25/share 7.25 % September15, 2008 SeriesF 7,820,000 $ 25/share 7.10 % December3, 2008 The SeriesE and SeriesF preferred stock have no stated maturity, are not subject to any sinking fund or mandatory redemption and are not convertible into any other securities of the Company. Holders of each series of preferred stock generally have no voting rights, except under limited conditions, and all holders are entitled to receive cumulative preferential dividends based upon each series' respective liquidation preference. To preserve the Company's status as a REIT, each series of preferred stock is subject to certain restrictions on ownership and transfer. Dividends are payable quarterly in arrears on the last day of March, June, September and December. The SeriesE and SeriesF preferred stock are currently redeemable at the Company's option. Distributions with respect to the Company's preferred stock can be characterized for federal income tax purposes as taxable ordinary dividends, capital gain dividends, nontaxable distributions or a combination thereof. Following is the characterization of the Company's annual preferred stock dividends per share: SeriesE SeriesF December31, December31, 2009 2008 2007 2009 2008 2007 (unaudited) Ordinary dividends $ 1.2572 $ 0.8144 $ 0.6681 $ 1.2312 $ 0.7975 $ 0.6542 Capital gain dividends 0.5553 0.9981 1.1444 0.5438 0.9775 1.1208 $ 1.8125 $ 1.8125 $ 1.8125 $ 1.7750 $ 1.7750 $ 1.7750 On February1, 2010, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.45313 per share on its SeriesE cumulative redeemable preferred stock and $0.44375 per share on its SeriesF cumulative redeemable preferred stock. These dividends will be paid on March31, 2010 to stockholders of record as of the close of business on March15, 2010. Common Stock Distributions with respect to the Company's common stock can be characterized for federal income tax purposes as taxable ordinary dividends, capital gain dividends, nontaxable distributions or a combination thereof. Following is the characterization of the Company's annual common stock dividends per share: Year Ended December31, 2009 2008 2007 (unaudited) Ordinary dividends $ 1.2763 $ 0.8178 $ 0.6561 Capital gain dividends 0.5637 1.0022 1.1239 $ 1.8400 $ 1.8200 $ 1.7800 On February1, 2010, the Company announced that its Board declared a quarterly cash dividend of $0.465 per share. The common stock cash dividend will be paid on February23, 2010 to stockholders of record as of the close of business on February11, 2010. During 2009 and 200

Segment Disclosures

Segment Disclosures
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Segment Disclosures	(14)Segment Disclosures The Company evaluates its business and makes resource allocations based on its five business segments: (i)senior housing, (ii)life science, (iii)medical office, (iv)hospital, and (v)skilled nursing. Under the senior housing, life science, hospital and skilled nursing segments, the Company invests primarily in single operator or tenant properties, through the acquisition and development of real estate or through investment in debt issued by operators in these sectors. Under the medical office segment, the Company invests through the acquisition of MOBs that are primarily leased under gross or modified gross leases, which are generally to multiple tenants and require a greater level of property management. The acquisition of SEUSA on August1, 2007 resulted in a change to the Company's reportable segments. Prior to the SEUSA acquisition, the Company operated through two reportable segmentstriple-net leased properties and medical office buildings. The senior housing, life science, hospital and skilled nursing segments were previously aggregated under the Company's triple-net leased segment. SEUSA's results are included in the Company's consolidated financial statements from the acquisition date of August1, 2007. The accounting policies of the segments are the same as those described under Summary of Significant Accounting Policies (see Note2). There were no intersegment sales or transfers during the years ended December31, 2009 and 2008. The Company evaluates performance based upon property net operating income from continuing operations ("NOI"), and interest income of the combined investments in each segment. Non-segment assets consist primarily of real estate held for sale and corporate assets including cash, restricted cash, accounts receivable, net and deferred financing costs. Interest expense, depreciation and amortization and non-property specific revenues and expenses are not allocated to individual segments in determining the Company's performance measure. See Note12 for other information regarding concentrations of credit risk. Summary information for the reportable segments follows (in thousands): For the year ended December31, 2009: Segments Rental and Related Revenues Tenant Recoveries Income From DFLs Interest Income Investment Management Fees Total Revenues NOI(1) Senior housing $ 290,816 $ $ 51,495 $ 1,147 $ 2,789 $ 346,247 $ 338,373 Life science 214,134 40,845 4 254,983 207,694 Medical office 260,516 46,748 2,519 309,783 176,663 Hospital 83,282 1,989 40,295 125,566 81,398 Skilled nursing 37,747 82,704 120,451 37,546 Total $ 886,495 $ 89,582 $ 51,495 $ 124,146 $ 5,312 $ 1,157,030 $ 841,674 For the year ended December31, 2008: Segments Rental and Related Revenues Tenant Recoveries Income From DFLs Interest Income Investment Management Fees Total Revenues

Future Minimum Rents

Future Minimum Rents
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Future Minimum Rents	(15)Future Minimum Rents Future minimum lease payments to be received, excluding operating expense reimbursements, from tenants under non-cancelable operating leases as of December31, 2009, are as follows (in thousands): Year Amount 2010 $ 923,706 2011 891,885 2012 849,717 2013 804,579 2014 727,663 Thereafter 4,189,021 $ 8,386,571

Compensation Plans

Compensation Plans
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Compensation Plans	(16)Compensation Plans Stock Based Compensation On May11, 2006, the Company's stockholders approved the 2006 Performance Incentive Plan (the "2006 Incentive Plan"). The 2006 Incentive Plan replaced the Company's 2000 Stock Incentive Plan provides for the granting of stock-based compensation, including stock options, restricted stock and performance restricted stock units to officers, employees and directors in connection with their employment with or services provided to the Company. On April23, 2009, the Company's stockholders amended the 2006 Incentive Plan. As a result of the amendment, the maximum number of shares reserved for awards under the 2006 Incentive Plan, as amended, is 23.2million shares. The maximum number of shares available for future awards under the 2006 Incentive Plan is 10.9million shares at December31, 2009, of which approximately 7.2million shares may be issued as restricted stock and performance restricted stock units. Stock Options Stock options are generally granted with an exercise price equal to the fair market value of the underlying stock on the grant date. Stock options generally vest ratably over a five-year period and have a 10-year contractual term. Vesting of certain options may accelerate, as defined in the grant, upon retirement, a change in control, or other specified events. A summary of the option activity is presented in the following table (in thousands, except per share amounts): Shares Under Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding as of December31, 2008 5,137 $ 29.08 7.2 $ 6,838 Granted 2,310 Exercised (393 ) Forfeited (368 ) Outstanding as of December31, 2009 6,686 $ 27.49 7.2 $ 26,611 Exercisable as of December31, 2009 2,547 $ 28.03 5.5 $ 8,640 The following table summarizes additional information concerning outstanding and exercisable stock options at December31, 2009 (shares in thousands): Weighted Average Remaining Contractual Term (Years) Currently Exercisable Range of Exercise Price Shares Under Options Weighted Average Exercise Price Shares Under Options Weighted Average Exercise Price $16.03-$23.34 2,308 $ 23.18 8.9 72 $ 18.12 23.50-27.52 2,428 26.58 5.1 1,953 26.58 31.95-39.72 1,950 33.73 7.8 522 34.85 6,686 27.49 7.2 2,547 28.03 The following table summarizes additional information concerning unvested stock options at December31, 2009 (shares in thousands): Shares Under Options Weighted Average Grant Date Fair Value Unvested at December31, 2008 3,099 $ 2.95 Granted 2,310 2.23 Vested (902 ) 2.64 Forfeited (368 ) 2.88 Unvested at December31, 2009 4,139 2.59 The weighted average

Impairments

Impairments
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Impairments	(17)Impairments During the year ended December31, 2009, the Company recognized impairments of $75.5million as follows: (i)$63.1million in the senior housing segment related to three DFLs and a participation in a senior construction loan associated with properties operated by Erickson resulting from the conclusion of their bankruptcy auction and their amended reorganization plan, (ii)$5.9million related to intangible assets on 12 of 15 senior housing communities which were determined to be impaired due to the termination of the Sunrise management agreements effective October1, 2009 in the senior housing segment, (iii)$4.3million related to a senior secured term loan to an affiliate of Cirrus as a result of discussions to restructure its loan in the hospital segment and (iv)$2.2million related to intangible assets associated with the early termination of a lease in the life science segment. During the year ended December31, 2008, the Company recognized impairments of $27.5million as follows: (i)$12.0million related to intangible assets associated with the transfer of an 11-property senior housing portfolio, (ii)$3.7million related to intangible assets associated with the early termination of three leases in the life science segment, (iii)$1.0million related to intangible assets associated with the early termination of two leases in the hospital segment, (iv)$1.6million related to two senior housing facilities as a result of a decrease in expected cash flows, and (v)$9.2million, included in discontinued operations, related to the decrease in expected cash flows and anticipated dispositions of two senior housing properties and one hospital.

Income Taxes

Income Taxes
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Income Taxes	(18)Income Taxes During the years ended December31, 2009, 2008 and 2007, the Company's income tax expense was $2.2million, $3.8million and $3.5million, respectively. During the years ended December31, 2009, 2008 and 2007, the Company's income tax expense from continuing operations was $1.9million, $4.2million and $1.4million, respectively. State taxes comprised $1.2million, or 54%, of total income tax expense in 2009, $1.3million, or 34%, of total income tax expense in 2008 and $1.7million, or 49%, of total income tax expense in 2007. The Company's deferred income tax expense and its ending balance in deferred tax assets and liabilities were insignificant for the years ended December31, 2009, 2008 and 2007. At December31, 2009 and 2008, the tax basis of the Company's net assets is less than the reported amounts by $2.1billion and $2.3billion, respectively. The difference between the reported amounts and the tax basis is primarily related to the Company's acquisition of SEUSA. The Company files numerous U.S. federal, state and local income and franchise tax returns. With a few exceptions, the Company is no longer subject to U.S. federal, state or local tax examinations by taxing authorities for years prior to 2006. CNL Retirement Corp. Merger On October5, 2006, the Company merged with CNL Retirement Corp. ("CRC"), a corporation subject to federal and state income taxes. For federal income tax purposes, the CRC merger was treated as a tax-free transaction resulting in a carry-over tax basis in its assets. At December31, 2009 and 2008, the Company's net tax basis in the CRC assets is less than reported amounts by $55million and $62million, respectively. SEUSA Acquisition On August1, 2007, HCP Life Science REIT, a wholly-owned subsidiary, acquired the stock of SEUSA, causing SEUSA to become a qualified REIT subsidiary. As a result of the acquisition, HCP Life Science REIT succeeded to SEUSA's tax attributes, including SEUSA's tax basis in its net assets. Prior to the acquisition, SEUSA was a corporation subject to federal and state income taxes. HCP Life Science REIT will be subject to a corporate-level tax on any taxable disposition of SEUSA's pre-acquisition assets that occur within ten years after the August1, 2007 acquisition. The corporate-level tax would be assessed only to the extent of the built-in gain that existed on the date of acquisition, based on the estimated fair market value of the assets on August1, 2007. The Company does not expect to dispose of any assets included in the SEUSA acquisition, if such a disposition would result in the imposition of a material tax liability. As a result, the Company has not recorded a deferred tax liability associated with this corporate-level tax. Gains from asset dispositions occurring more than 10years after the acquisition will not be subject to this corporate-level tax. However, the Company may dispose of SEUSA assets before the 10-year period if it is able to effect a tax deferred exchange. At December31, 2009 and 2008, the tax basis of the Company's net assets included in the SEUSA acquisition is less than the reported amounts by $1.7billion and $1.8billion, respect

Earnings Per Common Share

Earnings Per Common Share
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Earnings Per Common Share	(19)Earnings Per Common Share The following table illustrates the computation of basic and diluted earnings per share (dollars in thousands, except per share and share amounts): Year Ended December31, 2009 2008 2007 Numerator Income from continuing operations $ 106,341 $ 231,223 $ 135,793 Noncontrolling interests' and participating securities' share in continuing operations (15,952 ) (23,900 ) (27,161 ) Preferred stock dividends (21,130 ) (21,130 ) (21,130 ) Income from continuing operations applicable to common shares 69,259 186,193 87,502 Discontinued operations 39,810 239,760 478,322 Noncontrolling interests' and participating securities' share in continuing operations (585 ) (744 ) Net income applicable to common shares $ 109,069 $ 425,368 $ 565,080 Denominator Basic weighted average common shares 274,216 237,301 207,924 Dilutive stock options and restricted stock 415 671 996 Diluted weighted average common shares 274,631 237,972 208,920 Basic earnings per common share Income from continuing operations $ 0.25 $ 0.78 $ 0.42 Discontinued operations 0.15 1.01 2.30 Net income applicable to common stockholders $ 0.40 $ 1.79 $ 2.72 Diluted earnings per common share Income from continuing operations $ 0.25 $ 0.78 $ 0.42 Discontinued operations 0.15 1.01 2.28 Net income applicable to common shares $ 0.40 $ 1.79 $ 2.70 Restricted stock and certain of the Company's performance restricted stock units are considered participating securities which require the use of the two-class method when computing basic and diluted earnings per share. For the years ended December31, 2009, 2008 and 2007, earnings representing nonforfeitable dividends of $1.5million, $2.0million and $2.8million, respectively, were allocated to the participating securities. Options to purchase approximately 4.6million, 3.0million and 0.6million shares of common stock that had an exercise price in excess of the average market price of the common stock during the years ended December31, 2009, 2008 and 2007, respectively, were not included because they are anti-dilutive. Additionally, 5.9million shares issuable upon conversion of 4.3million DownREIT units during 2009, 6.4million shares issuable upon conversion of 4.8million DownREIT units during 2008, and 10.1million shares issuable upon conversion of 7.6million non-managing member units in 2007 were not included since they are anti-dilutive.

Supplemental Cash Flow Informat

Supplemental Cash Flow Information
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Supplemental Cash Flow Information	(20)Supplemental Cash Flow Information Year Ended December31, 2009 2008 2007 (in thousands) Supplemental cash flow information: Interest paid, net of capitalized interest and other $ 291,936 $ 344,434 $ 329,679 Taxes paid 2,280 4,551 1,785 Supplemental schedule of non-cash investing activities: Capitalized interest 25,917 27,490 12,346 Increase (decrease) in accrued construction costs (3,870 ) (9,041 ) 13,177 Real estate exchanged in real estate acquisitions 35,205 Loan received upon real estate disposition 1,001 3,200 Supplemental schedule of non-cash financing activities: Mortgages assumed with real estate acquisitions 4,892 17,362 Mortgages included with real estate dispositions 3,792 Secured debt obtained in purchase of participation in secured loan receivable 425,042 Restricted stock issued 305 157 282 Vesting of restricted stock units 194 142 121 Cancellation of restricted stock 53 114 41 Conversion of non-managing member units into common stock 23,045 111,467 3,704 Non-managing member units issued in connection with acquisitions 180,698 Unrealized gains (losses), net on available for sale securities and derivatives designated as cash flow hedges 82,996 (89,751 ) (20,673 ) See discussions of the SEUSA acquisition, HCR ManorCare, and HCP VenturesII and HCP VenturesIV transactions in Notes3, 7 and 8, respectively.

Variable Interest Entities

Variable Interest Entities
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Variable Interest Entities	(21)Variable Interest Entities During its normal course of business, the Company makes investments through entities that are considered to be variable interest entities. The Company's investments, or variable interests, in these entities are created from leasing and lending arrangements. The Company is not considered to be the primary beneficiary of any of the variable interest entities' operations. The carrying value and classification of the related assets, liabilities and maximum exposure to loss as a result of the Company's involvement with unconsolidated VIEs are presented below (in thousands): VIE Type Maximum Loss Exposure(1) Asset/Liability Type Carrying Amount VIE tenantsoperating leases $ 473,312 Lease intangibles, net and straight-line rent receivables $ 8,502 VIE tenantsDFLs 645,951 Net investment in DFLs 215,963 Senior secured loans 83,510 Loans receivable, net 83,510 Mezzanine loans 934,387 Loans receivable, net 934,387 (1) The Company's maximum loss exposure related to the VIE tenants represents the future minimum lease payments over the remaining term of the respective leases, which may be mitigated by re-leasing the properties to new tenants. The Company's maximum loss exposure related to loans to VIEs represents their current aggregate carrying value. At December31, 2009, the Company had 60 properties leased to a total of eight tenants ("VIE tenants"). These VIE tenants are thinly capitalized entities that rely on the cash flows generated from the senior housing facilities to pay operating expenses, including the rent obligations under their leases. The Company has no formal involvement in these VIE tenants beyond its investment. The Company acquired these leases on October5, 2006 in its merger with CRP. CRP determined it was not the primary beneficiary of these VIEs, and the Company is required to carry forward CRP's accounting conclusions after the acquisition relative to their primary beneficiary assessments, provided the Company does not believe CRP's accounting to be in error. The Company believes that its accounting for the VIEs is an appropriate application of GAAP. The Company does not consolidate the VIE tenants because it does not expect to absorb the majority of the VIE tenants' operating earnings or losses. On October5, 2006, through its merger with CRP, the Company acquired an interest-only, senior secured term loan made to a borrower that has been identified as a VIE. CRP determined it was not the primary beneficiary of the VIE, and the Company is required to carry forward CRP's accounting conclusions after the acquisition relative to their primary beneficiary assessments, provided the Company does not believe CRP's accounting to be in error. The Company believes that its accounting for the VIE is the appropriate application of GAAP. The Company does not consolidate the VIE because it does not expect to absorb the majority of the VIE's operating earnings or losses. The loan is collateralized by all of the assets of the borrower (comprised primarily of interests in partnerships operating surgical facilities, some

Fair Value Measurements

Fair Value Measurements
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Fair Value Measurements	(22)Fair Value Measurements The following tables illustrate the Company's fair value measurements of its financial assets and liabilities measured at fair value in the Company's consolidated financial statements. Recognized gains and losses are recorded in other income, net on the Company's consolidated statements of income. The following is a summary of fair value measurements of financial assets and liabilities at December31, 2009 (in thousands): Financial Instrument Fair Value Level1 Level2 Level3 Marketable debt securities $ 172,799 $ 152,449 $ 20,350 $ Marketable equity securities 3,521 3,521 Interest-rate swap assets(1) 3,523 3,523 Interest-rate swap liabilities(1) (3,438 ) (3,438 ) Warrants(1) 1,732 1,732 $ 178,137 $ 155,970 $ 20,435 $ 1,732 (1) Interest rate swaps and common stock warrants are valued using observable and unobservable market assumptions, as well as standardized derivative pricing models.

Disclosures About Fair Value of

Disclosures About Fair Value of Financial Instruments
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Disclosures About Fair Value of Financial Instruments	(23)Disclosures About Fair Value of Financial Instruments The carrying values of cash and cash equivalents, restricted cash, receivables, payables, and accrued liabilities are reasonable estimates of fair value because of the short-term maturities of these instruments. Fair values for loans receivable, bank line of credit, bridge and term loans, credit facilities, mortgage and other secured debt, and other debt are estimates based on rates currently prevailing for similar instruments of similar maturities. The estimated fair values of the interest-rate swaps and warrants were determined based on observable and unobservable market assumptions using standardized derivative pricing models. The fair values of the senior unsecured notes and marketable equity and debt securities were determined based on market quotes. December31, 2009 2008 Carrying Amount Fair Value Carrying Amount Fair Value (in thousands) Loans receivable, net $ 1,672,938 $ 1,728,599 $ 1,068,454 981,128 Marketable debt securities 172,799 172,799 228,660 228,660 Marketable equity securities 3,521 3,521 3,845 3,845 Warrants 1,732 1,732 1,460 1,460 Bank line of credit 150,000 150,000 Bridge and term loans 200,000 200,000 520,000 520,000 Senior unsecured notes 3,521,325 3,548,926 3,523,513 2,384,488 Mortgage and other secured debt 1,834,935 1,789,992 1,641,734 1,538,057 Other debt 99,883 99,883 102,209 102,209 Interest-rate swap assets 3,523 3,523 Interest-rate swap liabilities 3,438 3,438 2,324 2,324

Derivative Financial Instrument

Derivative Financial Instruments
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Derivative Financial Instruments	(24)Derivative Financial Instruments The Company uses derivative instruments to mitigate the effects of interest rate fluctuations on specific forecasted transactions as well as recognized obligations or assets. The Company does not use derivative instruments for speculative or trading purposes. The primary risks associated with derivative instruments are market and credit risk. Market risk is defined as the potential for loss in value of a derivative instrument due to adverse changes in market prices (interest rates). Utilizing derivative instruments allows the Company to effectively manage the risk of fluctuations in interest rates with respect to the potential effects these changes could have on future earnings, forecasted cash flows and the fair value of recognized obligations. Credit risk is the risk that one of the parties to a derivative contract fails to perform or meet their financial obligation. The Company does not obtain collateral associated with its derivative instruments, but monitors the credit standing of its counterparties on a regular basis. Should a counterparty fail to perform, the Company would incur a financial loss to the extent that the associated derivative contract was in an asset position. At December31, 2009, the Company does not anticipate non-performance by the counterparties to its outstanding derivative contracts. The Company had four interest-rate swap contracts outstanding at December31, 2009, which hedge fluctuations in interest payments on variable-rate secured debt. At December31, 2009, these interest-rate swap contracts had an aggregate notional amount of $60million and an estimated fair value of $3.4million included in accounts payable and accrued liabilities. During the year ended December31, 2009, there were no ineffective portions related to these hedging relationships. In August2006, the Company entered into two treasury lock contracts that were designated as hedging the variability in forecasted interest payments, attributable to changes in the U.S. Treasury rate, on the forecasted issuance of long-term, fixed rate debt between September1 and October31, 2006. The cash flow hedges had a notional amount of $560.5million and were settled with the counterparty on September16, 2006, which was the date that the forecasted debt was issued. The cash settlement value of these contracts at September16, 2006, was $4.4million. The unamortized amount of these contracts at December31, 2009, is $2.4million and is included in accumulated other comprehensive income (loss). Amounts reported in accumulated other comprehensive income (loss) related to these hedges will be recognized as additional interest expense on the related hedged fixed-rate debt, maturing 2011 and 2016. At December31, 2009, the Company determined that the forecasted interest payments remained probable of occurring. For the year ended December31, 2009, the Company recognized increased interest expense of $0.8million and expects to recognize an additional $0.4million attributable to these contracts during 2010. During October and November2007, the Company entered into two forward-starting interest-rate swap contracts with an ag

Transactions with Related Parti

Transactions with Related Parties
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Transactions with Related Parties	(25)Transactions with Related Parties Mr.Rhein, a director of the Company, is a director of Cohen Steers,Inc. Cohen Steers Capital Management,Inc., a wholly owned subsidiary of Cohen Steers,Inc., is an investment adviser registered under Section203 of the Investment Advisers Act of 1940. As of January7, 2010, mutual funds managed by Cohen Steers Capital Management,Inc., ("Cohen Steers") in the aggregate, owned approximately 4.0% of the Company's common stock. In addition, an affiliate of Cohen Steers provided financial advisory services to the Company in 2007. The Company made payments in respect of such services of $5.5million during 2007. No payments were made to the Cohen Steers affiliate during 2009 and 2008. Mr.Elcan, a former Executive Vice President of the Company through April30, 2008, and certain members of Mr.Elcan's immediate family, including without limitation his wife and father-in-law, may be deemed to own directly or indirectly, in the aggregate, greater than 10% of the outstanding common stock of HCA,Inc. ("HCA") at April29, 2008. During 2008 and 2007, HCA contributed $95million and $83million, respectively, in aggregate revenues, for the lease of certain assets and obligations under debt securities. Mr.Elcan and Mr.Klaritch, an Executive Vice President of the Company, were previously senior executives and limited liability company members of MedCap Properties,LLC, which was acquired in October2003 by HCP and a joint venture of which HCP was the managing member. As part of that transaction, MedCap Properties,LLC contributed certain property interests to a newly-formed entity, HCPI/TennesseeLLC, in exchange for DownREIT units. In connection with the transactions, Messrs.Elcan and Klaritch received 610,397 and 113,431 non-managing member units, respectively, in HCPI/Tennessee,LLC in a distribution of their respective interests in MedCap Properties,LLC. Each DownREIT unit is redeemable for an amount of cash approximating the then-current market value of two shares of HCP's common stock or, at HCP's option, two shares of HCP's common stock (subject to certain adjustments, such as stock splits, stock dividends and reclassifications). In addition, the HCPI/Tennessee,LLC agreement provides for a "make-whole" payment, intended to cover grossed-up tax liabilities, to the non-managing members upon the sale of certain properties acquired by HCPI/Tennessee,LLC in the MedCap transactions and other events. The HCPI/Tennessee,LLC agreement was amended, with an effective date of January1, 2007, to change the allocation of the taxable income among the members, to more closely correspond with the relative cash distributions each member receives. Previously, taxable income was allocated disproportionately to the non-managing members to reflect the priority rights of the non-managing member unit holders in distributions of cash. The amendment has no effect on the amounts of cash distributions to the non-managing members.

Selected Quarterly Financial Da

Selected Quarterly Financial Data
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Selected Quarterly Financial Data	(26)Selected Quarterly Financial Data Selected quarterly information for the years ended December31, 2009 and 2008 is as follows (in thousands, except per share amounts). Results of operations for properties sold or to be sold have been classified as discontinued operations for all periods presented: Three Months Ended During 2009 March31 June30 September30 December31 (in thousands, except share data, unaudited) Total revenues $ 277,821 $ 293,783 $ 289,002 $ 296,424 Income (loss) before income taxes and equity income from unconsolidated joint ventures 51,821 68,919 (47,372 ) 31,386 Total discontinued operations 2,238 31,972 2,502 3,098 Net income (loss) applicable to common shares 43,285 91,784 (52,397 ) 26,397 Dividends paid per common share 0.46 0.46 0.46 0.46 Basic earnings (loss) per common share 0.17 0.35 (0.18 ) 0.09 Diluted earnings (loss) per common share 0.17 0.35 (0.18 ) 0.09 Three Months Ended During 2008 March31 June30 September30 December31 (in thousands, except share data, unaudited) Total revenues $ 278,293 $ 280,158 $ 299,791 $ 294,946 Income before income taxes and equity income from unconsolidated joint ventures 37,362 49,068 99,950 45,765 Total discontinued operations 19,731 189,473 31,213 (657 ) Net income applicable to common shares 44,579 225,890 119,615 34,650 Dividends paid per common share 0.455 0.455 0.455 0.455 Basic earnings per common share 0.21 0.96 0.49 0.14 Diluted earnings per common share 0.21 0.96 0.49 0.14 The above selected quarterly financial data includes the following significant transactions: On July30, 2008, the Company received and recognized lease termination income of $18million from a tenant in connection with the early termination of three leases in its life science segment. Upon termination of the leases, the Company recognized an impairment of $4million related to intangible assets associated with these leases. On September19, 2008, the Company settled various disputes with Tenet, including the sale of its Tarzana, CA hospital leased to Tenet, which resulted in gains on settlement income of $29million and sale of real estate of $18million. On September4, 2009, a jury returned a verdict in favor of Ventas in an action brought against the Company. The jury awarded Ventas approximately $102million in compensatory damages, which the Company recorded as a litigation provision expense during the three months ended September30, 2009. During the three months ended December31, 2009, the Company recognized impairments of $48.0million related to three DFLs and a participation in a senior construction loan associated with properties operated by Erickson as a result of the conclusion of an auction process related to Erickson's bankruptcy. During the three months ended September30, 2009, the Company previously recognized impairm

Subsequent Events

Subsequent Events
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Subsequent Events	(27)Subsequent Events The Company evaluated subsequent events through February12, 2010, which is the date the December31, 2009 consolidated financial statements were issued.

Schedule II Valuation and Quali

Schedule II Valuation and Qualifying Accounts
	12 Months Ended Dec. 31, 2009 USD / shares
Valuation and Qualifying Accounts
Schedule II: Valuation and Qualifying Accounts	HCP,Inc. ScheduleII: Valuation and Qualifying Accounts December31, 2009 (In thousands) Allowance Accounts(1) Additions Deductions Year Ended December31, Balance at Beginning of Year Amounts Charged Against Operations, net Acquired Properties Uncollectible Accounts Written-off Disposed/ Contributed Properties Balance at End of Year 2009 $ 58,911 $ 79,346 $ $ (8,504 ) $ (248 ) $ 129,505 2008 $ 59,131 $ 9,747 $ $ (2,574 ) $ (7,393 ) $ 58,911 2007 $ 55,106 $ 23,383 $ 890 $ (1,964 ) $ (18,284 ) $ 59,131 (1) Includes allowance for doubtful accounts, straight-line rent reserves, and allowances for loan and direct financing lease losses.

Schedule III Real Estate and Ac

Schedule III Real Estate and Accumulated Depreciation
	12 Months Ended Dec. 31, 2009 USD / shares
Real Estate and Accumulated Depreciation
Schedule III: Real Estate and Accumulated Depreciation	HCP,Inc. ScheduleIII: Real Estate and Accumulated Depreciation December31, 2009 (In thousands) Gross Amount at Which Carried As of December31, 2009 Initial Cost to Company LifeonWhich Depreciationin LatestIncome Statementis Computed City State Encumbrances at12/31/09(1) Land Buildingsand Improvements CostsCapitalized Subsequentto Acquisition Land Buildingsand Improvements Total(2) Accumulated Depreciation Year Acquired/ Constructed Senior housing Birmingham AL $ 34,011 $ 4,682 $ 86,200 $ $ 4,682 $ 86,200 $ 90,882 $ (7,828 ) 2006 40 Huntsville AL 18,597 1,394 44,347 1,394 44,347 45,741 (4,020 ) 2006 40 Huntsville AL 307 5,813 307 5,813 6,120 (677 ) 2006 40 Little Rock AR 1,922 14,140 1,922 14,140 16,062 (1,458 ) 2006 39 Douglas AZ 110 703 110 703 813 (204 ) 2005 35 Tucson AZ 33,277 2,350 24,037 2,350 24,037 26,387 (5,008 ) 2002 30 Beverly Hills CA 9,872 32,590 9,872 32,590 42,462 (3,126 ) 2006 40 Camarillo CA 5,798 19,427 5,798 19,427 25,225 (2,020 ) 2006 40 Carlsbad CA 7,897 14,255 47 7,897 14,302 22,199 (1,608 ) 2006 40 Carmichael CA 4,270 13,846 4,270 13,846 18,116 (1,396 ) 2006 40 Citrus Heights CA 1,180 8,367 1,180 8,367 9,547 (1,195 ) 2006 29 Concord CA 25,000 6,010 39,601 6,010 39,601 45,611 (5,359 ) 2005 40 Dana Point CA 1,960 15,946 1,960 15,946 17,906 (2,131 ) 2005 39 Elk Grove CA 2,235 6,339 2,235 6,186 8,421 (503 ) 2006 40 Escondido CA 14,340 5,090 24,253 5,090 24,253 29,343 (3,374 ) 2005 40 Fremont CA 9,589 2,360 11,672 2,360 11,672 14,032 (1,660 ) 2005 40 Granada Hills CA 2,200 18,257 2,200 18,257 20,457 (2,495 ) 2005 39 Hemet CA 1,270 5,966 1,270 5,966 7,236 (625 ) 2006 40 Irvine CA 8,220 14,104 8,220 14,104 22,324 (1,399 ) 2006 45 Lodi CA 9,083 732 5,453 732 5,453 6,185 (1,759 ) 1997 35 Murietta CA 6,103 435 5,729 435 5,729 6,164 (1,782 ) 1997 35 Northridge CA 6,718 26,309 6,718 26,309 33,027 (2,598 ) 2006 40 Orangevale CA 4,651 2,160 8,522 1,000 2,160 9,522 11,682 (641 ) 2008 40 Palm Springs CA 1,005 5,183 1,005 5,

Document and Entity Information

Document and Entity Information (USD $)
In Billions, except Share data	12 Months Ended Dec. 31, 2009	Feb. 01, 2010	Jun. 30, 2009
Document and Entity Information
Entity Registrant Name	HCP, INC.
Entity Central Index Key	0000765880
Document Type	10-K
Document Period End Date	2009-12-31
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			5.8
Entity Common Stock, Shares Outstanding		293,844,057