Healthpeak Properties (DOC) 10-Q 9 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	Apr. 29, 2016
Document and Entity Information
Entity Registrant Name	HCP, INC.
Entity Central Index Key	765,880
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		467,087,589
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands		Mar. 31, 2016	Dec. 31, 2015
Real estate:
Buildings and improvements		$ 12,314,826	$ 12,198,704
Development costs and construction in progress		430,104	388,576
Land		1,956,841	1,948,757
Accumulated depreciation and amortization		(2,636,636)	(2,541,334)
Net real estate		12,065,135	11,994,703
Net investment in direct financing leases		5,857,210	5,905,009
Loans receivable, net		768,896	768,743
Investments in and advances to unconsolidated joint ventures		608,665	605,244
Accounts receivable, net of allowance of $4,161 and $3,261, respectively		45,224	48,929
Cash and cash equivalents		94,665	346,500
Restricted cash		46,280	60,616
Intangible assets, net		585,330	603,706
Other assets, net		817,279	802,273
Real estate assets held for sale, net		311,243	314,126
Total assets	[1]	21,199,927	21,449,849
LIABILITIES AND EQUITY
Bank line of credit		810,313	397,432
Term loans		511,737	524,807
Senior unsecured notes		8,623,376	9,120,107
Mortgage debt		895,289	932,212
Other debt		95,229	94,445
Intangible liabilities, net		52,794	56,147
Intangible liabilities on assets held for sale, net		18,064	19,126
Accounts payable and accrued liabilities		433,144	436,239
Deferred revenue		129,656	123,017
Total liabilities	[1]	$ 11,569,602	$ 11,703,532
Commitments and contingencies
Common stock, $1.00 par value: 750,000,000 shares authorized; 466,924,935 and 465,488,492 shares issued and outstanding, respectively		$ 466,925	$ 465,488
Additional paid-in capital		11,685,541	11,647,039
Cumulative dividends in excess of earnings		(2,890,046)	(2,738,414)
Accumulated other comprehensive loss		(31,673)	(30,470)
Total stockholders' equity		9,230,747	9,343,643
Joint venture partners		218,110	217,066
Non-managing member unitholders		181,468	185,608
Total noncontrolling interests		399,578	402,674
Total equity		9,630,325	9,746,317
Total liabilities and equity		$ 21,199,927	$ 21,449,849
[1]	HCP, Inc.’s consolidated total assets and total liabilities at March 31, 2016 and December 31, 2015 include certain assets of variable interest entities (“VIEs”) that can only be used to settle the liabilities of the related VIE. The VIE creditors do not have recourse to HCP, Inc. Total assets at March 31, 2016 include VIE assets as follows: buildings and improvements $3.4 billion; development costs $60 million; land $327 million; accumulated depreciation and amortization $567 million; investments in unconsolidated joint ventures $14 million; accounts receivable $18 million; cash $60 million; restricted cash $23 million; intangible assets, net $197 million; and other assets, net $66 million. Total assets at December 31, 2015 include VIE assets as follows: buildings and improvements $3.4 billion; development costs $54 million; land $327 million; accumulated depreciation and amortization $537 million; investments in unconsolidated joint ventures $14 million; accounts receivable $19 million; cash $61 million; restricted cash $21 million; intangible assets, net $204 million; and other assets, net $63 million. Total liabilities at March 31, 2016 include VIE liabilities as follows: mortgage debt $573 million; intangible liabilities, net $10 million; accounts payable and accrued liabilities of $107 million and deferred revenue of $23 million from VIEs. Total liabilities at December 31, 2015 include VIE liabilities as follows: mortgage debt $589 million; intangible liabilities, net $10 million; accounts payable and accrued liabilities of $107 million and deferred revenue of $19 million. See Note 16 to the Consolidated Financial Statements for additional information.

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Company's involvement with VIEs:
Development costs	$ 430,104	$ 388,576
Land	1,956,841	1,948,757
Accumulated depreciation and amortization	2,636,636	2,541,334
Investments in unconsolidated joint ventures	608,665	605,244
Accounts Receivable	45,224	48,929
Cash	94,665	346,500
Restricted cash	46,280	60,616
Intangible assets, net	585,330	603,706
Other assets, net	817,279	802,273
Mortgage debt	895,289	932,212
Intangible liabilities, net	52,794	56,147
Accounts payable and accrued liabilities	433,144	436,239
Deferred Revenue	129,656	123,017
Balance Sheet Parenthetical Disclosures
Accounts receivable, allowance (in dollars)	$ 4,161	$ 3,261
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, shares authorized	750,000,000	750,000,000
Common stock, shares issued	466,924,935	465,488,492
Common stock, shares outstanding	466,924,935	465,488,492
VIEs
Company's involvement with VIEs:
Buildings and improvements	$ 3,400,000	$ 3,400,000
Development costs	60,000	54,000
Land	327,000	327,000
Accumulated depreciation and amortization	567,000	537,000
Investments in unconsolidated joint ventures	14,000	14,000
Accounts Receivable	18,000	19,000
Cash	60,000	61,000
Restricted cash	23,000	21,000
Intangible assets, net	197,000	204,000
Other assets, net	66,000	63,000
Mortgage debt	573,000	589,000
Intangible liabilities, net	10,000	10,000
Accounts payable and accrued liabilities	107,000	107,000
Deferred Revenue	$ 23,000	$ 19,000

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenues:
Rental and related revenues	$ 297,194	$ 275,082
Tenant recoveries	31,737	29,896
Resident fees and services	165,763	105,013
Income from direct financing leases	127,968	167,078
Interest income	18,029	33,262
Investment management fee income	91	460
Total revenues	640,782	610,791
Costs and expenses:
Interest expense	122,062	116,780
Depreciation and amortization	141,322	114,522
Operating	176,955	132,031
General and administrative	25,499	24,773
Acquisition and pursuit costs	2,475	3,390
Impairment		478,464
Total costs and expenses	468,313	869,960
Other income:
Gain on sales of real estate		6,264
Other income, net	1,222	1,724
Total other income, net	1,222	7,988
Income (loss) before income taxes and equity (loss) income from unconsolidated joint ventures	173,691	(251,181)
Income tax (expense) benefit	(53,038)	77
Equity (loss) income from unconsolidated joint ventures	(908)	13,601
Net income (loss)	119,745	(237,503)
Noncontrolling interests' share in earnings	(3,626)	(3,111)
Net income (loss) attributable to HCP, Inc.	116,119	(240,614)
Participating securities' share in earnings	(357)	(335)
Net income (loss) applicable to common shares	$ 115,762	$ (240,949)
Earnings per common share:
Basic (in dollars per share)	$ 0.25	$ (0.52)
Diluted (in dollars per share)	$ 0.25	$ (0.52)
Weighted average shares used to calculate earnings per common share:
Basic (in shares)	466,074	460,880
Diluted (in shares)	466,262	460,880
Dividends declared per common share (in dollars per share)	$ 0.575	$ 0.565

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income (loss)	$ 119,745	$ (237,503)
Other comprehensive loss:
Change in net unrealized losses on securities	(15)	(5)
Change in net unrealized (losses) gains on cash flow hedges:
Unrealized (losses) gains	(690)	2,339
Reclassification adjustment realized in net income	169	(6)
Change in Supplemental Executive Retirement Plan obligation	70	69
Foreign currency translation adjustment	(737)	(6,963)
Total other comprehensive loss	(1,203)	(4,566)
Total comprehensive income (loss)	118,542	(242,069)
Total comprehensive income attributable to noncontrolling interests	(3,626)	(3,111)
Total comprehensive (loss) income attributable to HCP, Inc.	$ 114,916	$ (245,180)

CONSOLIDATED STATEMENTS OF EQUI

CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Thousands, $ in Thousands	Total Stockholders' Equity	Common Stock	Additional Paid-In Capital	Cumulative Dividends In Excess Of Earnings	Accumulated Other Comprehensive Loss	Noncontrolling Interests	Total
Balance at Dec. 31, 2014	$ 10,735,297	$ 459,746	$ 11,431,987	$ (1,132,541)	$ (23,895)	$ 261,802	$ 10,997,099
Balance (in shares) at Dec. 31, 2014		459,746
Increase (Decrease) in Stockholders' Equity
Net income (loss)	(240,614)			(240,614)		3,111	(237,503)
Other comprehensive income	(4,566)				(4,566)		(4,566)
Issuance of common stock, net	36,812	$ 1,155	35,657			(1,608)	35,204
Issuance of common stock, net (in shares)		1,155
Conversion of DownREIT units to common stock							(1,608)
Repurchase of common stock	(6,096)	$ (128)	(5,968)				(6,096)
Repurchase of common stock (in shares)		(128)
Exercise of stock options	27,221	$ 811	26,410				27,221
Exercise of stock options (in shares)		811
Amortization of deferred compensation	6,165		6,165				6,165
Common dividends ($2.26, $2.18 and $2.10 per share for the year ended 2015, 2014 and 2013, respectively)	(260,686)			(260,686)			(260,686)
Distributions to noncontrolling interests	(263)		(263)			(3,861)	(4,124)
Issuance of noncontrolling interests						2,932	2,932
Balance at Mar. 31, 2015	10,293,270	$ 461,584	11,493,988	(1,633,841)	(28,461)	262,376	10,555,646
Balance (in shares) at Mar. 31, 2015		461,584
Balance at Dec. 31, 2015	9,343,643	$ 465,488	11,647,039	(2,738,414)	(30,470)	402,674	9,746,317
Balance (in shares) at Dec. 31, 2015		465,488
Increase (Decrease) in Stockholders' Equity
Net income (loss)	116,119			116,119		3,626	119,745
Other comprehensive income	(1,203)				(1,203)		(1,203)
Issuance of common stock, net	35,406	$ 1,428	33,978				35,406
Issuance of common stock, net (in shares)		1,428
Conversion of DownREIT units to common stock						(4,136)	(4,136)
Repurchase of common stock	(3,628)	$ (102)	(3,526)				(3,628)
Repurchase of common stock (in shares)		(102)
Exercise of stock options	2,852	$ 111	2,741				2,852
Exercise of stock options (in shares)		111
Amortization of deferred compensation	5,345		5,345				5,345
Common dividends ($2.26, $2.18 and $2.10 per share for the year ended 2015, 2014 and 2013, respectively)	(268,186)			(268,186)			(268,186)
Distributions to noncontrolling interests	(36)		(36)			(4,853)	(4,889)
Issuance of noncontrolling interests						2,200	2,200
Deconsolidation of noncontrolling interests	435			435		67	502
Balance at Mar. 31, 2016	$ 9,230,747	$ 466,925	$ 11,685,541	$ (2,890,046)	$ (31,673)	$ 399,578	$ 9,630,325
Balance (in shares) at Mar. 31, 2016		466,925

CONSOLIDATED STATEMENTS OF EQU7

CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares	Apr. 27, 2016	Jan. 28, 2016	Mar. 31, 2016	Mar. 31, 2015
CONSOLIDATED STATEMENTS OF EQUITY
Common dividends, per share (in dollars per share)	$ 0.575	$ 0.575	$ 0.575	$ 0.565

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net income (loss)	$ 119,745	$ (237,503)
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract]
Depreciation and amortization	141,322	114,522
Amortization of market lease intangibles, net	(468)	(378)
Amortization of deferred compensation	5,345	6,165
Amortization of deferred financing costs, net	5,280	4,752
Straight-line rents	(7,576)	(9,546)
Loan and direct financing lease non-cash interest	165	(21,032)
Deferred rental revenues	(619)	(902)
Equity loss (income) from unconsolidated joint ventures	908	(13,601)
Distributions of earnings from unconsolidated joint ventures	1,589	1,159
Lease termination income, net		(1,103)
Gain on sales of real estate		(6,264)
Deferred income tax expense	49,156
Foreign exchange and other (gains) losses, net	(89)	134
Impairment		478,464
Changes in:
Accounts receivable, net	3,705	(3,814)
Other assets	(6,847)	(5,839)
Accounts payable and other accrued liabilities	(42,999)	(75,146)
Net cash provided by operating activities	268,617	230,068
Cash flows from investing activities:
Acquisitions of real estate	(94,271)	(71,373)
Development of real estate	(99,096)	(61,805)
Leasing costs and tenant and capital improvements	(19,964)	(11,540)
Contributions to unconsolidated joint ventures	(10,136)	(27,279)
Distributions in excess of earnings from unconsolidated joint ventures	5,336	1,022
Principal repayments on loans receivable, direct financing leases and other	155,320	17,496
Investments in loans receivable and other	(117,282)	(176,504)
Decrease in restricted cash	14,336	1,697
Net cash used in investing activities	(165,757)	(328,286)
Cash flows from financing activities:
Net borrowings under bank line of credit	422,897
Repayments under bank line of credit		(455,506)
Borrowings under term loan		333,014
Issuance of senior unsecured notes		595,110
Repayments of senior unsecured notes	(500,000)	(200,000)
Repayments of mortgage and other debt	(36,918)	(6,354)
Deferred financing costs		(7,687)
Issuance of common stock and exercise of options	34,122	62,425
Repurchase of common stock	(3,628)	(6,096)
Dividends paid on common stock	(268,186)	(260,686)
Issuance of noncontrolling interests	2,200	1,626
Distributions to noncontrolling interest	(4,889)	(4,124)
Net cash (used in) provided by financing activities	(354,402)	51,722
Effect of foreign exchange on cash and cash equivalents	(293)	(144)
Net decrease in cash and cash equivalents	(251,835)	(46,640)
Cash and cash equivalents, beginning of year	346,500	183,810
Cash and cash equivalents, end of year	$ 94,665	$ 137,170

Business

Business	3 Months Ended
	Mar. 31, 2016
Business
Business	NOTE 1. Business HCP, Inc., a Standard & Poor’s (“S&P”) 500 company, together with its consolidated entities (collectively, “HCP” or the “Company”), invests primarily in real estate serving the healthcare industry in the United States (“U.S.”). The Company is a Maryland corporation organized in 1985 and qualifies as a self-administered real estate investment trust (“REIT”). The Company is headquartered in Irvine, California, with offices in Nashville, Los Angeles, San Francisco and London. The Company acquires, develops, leases, manages and disposes of healthcare real estate, and provides financing to healthcare providers. The Company’s diverse portfolio is comprised of investments in the following healthcare segments: (i) senior housing, (ii) post-acute/skilled nursing, (iii) life science, (iv) medical office and (v) hospital.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2016
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	NOTE 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Management is required to make estimates and assumptions in the preparation of financial statements in conformity with 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. The consolidated financial statements include the accounts of HCP, Inc., its wholly-owned subsidiaries, joint ventures and VIEs that it controls through voting rights or other means. Intercompany transactions and balances have been eliminated upon consolidation. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary to present fairly the Company’s financial position, results of operations and cash flows have been included. Operating results for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 . The accompanying unaudited interim financial information should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2015 included in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the “SEC”). Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). ASU 2016-09 is intended to simplify accounting for share-based payment transactions. The areas for simplification in this update involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statements of cash flows. ASU 2016-09 is effective for fiscal years, and interim periods within, beginning after December 15, 2016. Early adoption is permitted. The Company is evaluating the impact of the adoption of ASU 2016-09 on January 1, 2017 to its consolidated financial position, results of operations or cash flows. In March 2016, the FASB issued ASU No. 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (“ASU 2016-08”). ASU 2016-08 is intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. ASU 2016-08 is effective for fiscal years, and interim periods within, beginning after December 15, 2017. Early adoption is permitted. The Company is evaluating the impact of the adoption of ASU 2016-08 on January 1, 2018 to its consolidated financial position or results of operations. In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”). ASU 2016-02 amends the current accounting for leases to (i) require lessees to put most leases on their balance sheets, but continue recognizing expenses on their income statements in a manner similar to today’s accounting, (ii) eliminate current real estate specific lease provisions, and (iii) modify classification criteria and accounting for sales-type leases for lessors. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018. Early adoption is permitted. The Company is evaluating the impact of the adoption of ASU 2016-02 on January 1, 2019 to its consolidated financial position or results of operations. In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). This update requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. This update also simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment at each reporting period. ASU 2016-01 is effective for fiscal years, and interim periods within, beginning after December 15, 2017. Early adoption is permitted only for certain disclosure requirements. The Company is evaluating the impact of the adoption of ASU 2016-01 on January 1, 2018 to its consolidated financial position or results of operations. In September 2015, the FASB issued ASU No. 2015-16, Simplifying the Accounting for Measurement-Period Adjustments (“ASU 2015-16”). ASU 2015-16 simplifies the accounting for adjustments made to provisional amounts recognized in a business combination by requiring the acquirer to (i) recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amount is determined, (ii) record, in the same period, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date, and (iii) present separately or disclose the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. ASU 2015-16 is effective for fiscal years, and interim periods within, beginning after December 15, 2015. Early adoption is permitted. The Company adopted ASU 2015-16 on January 1, 2016; the adoption of which did not have a material impact on its consolidated financial position or results of operations. In February 2015, the FASB issued ASU No. 2015-02, Amendments to the Consolidation Analysis (“ASU 2015-02”). ASU 2015-02 requires amendments to both the VIE and voting consolidation accounting models. The amendments (i) rescind the indefinite deferral of certain aspects of accounting standards relating to consolidations and provide a permanent scope exception for registered money market funds and similar unregistered money market funds, (ii) modify (a) the identification of variable interests (fees paid to a decision maker or service provider), (b) the VIE characteristics for a limited partnership or similar entity and (c) the primary beneficiary determination under the VIE model, and (iii) eliminate the presumption within the current voting model that a general partner controls a limited partnership or similar entity. ASU 2015-02 is effective for fiscal years, and interim periods within, beginning after December 15, 2015. Early adoption is permitted. A reporting entity may apply the amendments in ASU 2015-02 using either a modified retrospective or retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption. The Company adopted ASU 2015-02 on January 1, 2016; the adoption of which did not have a material impact to its consolidated financial position or results of operations. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). This update changes the requirements for recognizing revenue. ASU 2014-09 provides guidance for revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date (“ASU 2015-14”). ASU 2015-14 defers the effective date of ASU 2014-09 by one year to fiscal years and interim periods beginning after December 15, 2017. Early adoption is permitted for annual periods, and interim periods within, beginning after December 15, 2016. The Company is evaluating the impact of the adoption of ASU 2014-09 on January 1, 2018 to its consolidated financial position or results of operations. Reclassification Certain amounts in the Company’s consolidated financial statements have been reclassified for prior periods to conform to the current period presentation. Assets held for sale and associated liabilities have been reclassified on the consolidated balance sheets (see Note 4).

Real Estate Property Investment

Real Estate Property Investments	3 Months Ended
	Mar. 31, 2016
Real Estate Property Investments
Real Estate Property Investments	NOTE 3. Real Estate Property Investments 2016 Acquisitions A summary of real estate acquisitions for the three months ended March 31, 2016 (in thousands): Consideration Assets Acquired (1) Liabilities Net Segment Cash Paid Assumed Real Estate Intangibles Senior housing $ $ $ $ Post-acute/skilled nursing — $ $ $ $ (1) The purchase price allocation is preliminary and may be subject to change. Acquisition of Private Pay Senior Housing Portfolio (“RIDEA III”) On June 30, 2015, the Company and Brookdale Senior Living (“Brookdale”) acquired a portfolio of 35 private pay senior housing communities from Chartwell Retirement Residences, including two leasehold interests, representing 5,025 units. The portfolio was acquired in a RIDEA structure (“RIDEA III”), with Brookdale owning a 10% noncontrolling interest. Brookdale has operated these communities since 2011 and continues to manage the communities under a long-term management agreement, which is cancellable under certain conditions (subject to a fee if terminated within seven years from the acquisition date). The Company paid $770 million in cash consideration, net of cash assumed, and assumed $32 million of net liabilities and $29 million of noncontrolling interests to acquire: (i) real estate with a fair value of $771 million, (ii) lease-up intangible assets with a fair value of $53 million and (iii) working capital of $7 million. As a result of the acquisition, the Company recognized a net termination fee of $8 million in rental and related revenues, which represents the termination value of the two leasehold interests. The lease-up intangible assets recognized were attributable to the value of the acquired underlying operating resident leases of the senior housing communities that were stabilized or nearly stabilized (i.e., resident occupancy above 80% ). As of March 31, 2016, the purchase price allocation is preliminary and may be subject to change. Pro Forma Results of Operations The following unaudited pro forma consolidated results of operations assume that the RIDEA III acquisition was completed as of January 1, 2014 (in thousands, except per share amounts): Three Months Ended March 31, 2015 Revenues $ Net loss Net loss applicable to HCP, Inc. Basic earnings per common share Diluted earnings per common share 2015 Other Acquisitions A summary of real estate acquisitions for the three months ended March 31, 2015 (in thousands): Consideration Assets Acquired Liabilities Noncontrolling Net Segment Cash Paid Assumed Interest Real Estate Intangibles Senior housing $ $ $ $ $ Medical office — — — $ $ $ $ $ Construction, Tenant and Other Capital Improvements A summary of the Company’s funding for construction, tenant and other capital improvements (in thousands): Three Months Ended March 31, Segment 2016 2015 Senior housing $ $ Post-acute/skilled nursing — Life science Medical office Hospital — $ $ Subsequent Event . In May 2016, the Company announced it entered into definitive agreements to acquire a portfolio of seven private pay senior housing communities for $190 million, including the assumption of $75 million of debt maturing in 2044 at a 4.0% rate. Consisting of 526 assisted living and memory care units, the portfolio will be managed by Senior Lifestyle Corporation in a 100% owned RIDEA structure at closing. The closing of this transaction is expected in the second half of 2016 and remains subject to customary closing conditions.

Dispositions of Real Estate

Dispositions of Real Estate	3 Months Ended
	Mar. 31, 2016
Dispositions of Real Estate
Dispositions of Real Estate	NOTE 4. Dispositions of Real Estate At March 31, 2016 and December 31, 2015, four life science facilities were classified as held for sale, with an aggregate carrying value of $311 million and $314 million, respectively. During the three months ended March 31, 2015 , the Company sold eight senior housing facilities for $51 million resulting from Brookdale’s exercise of its purchase option received as part of the 2014 Brookdale transaction. Subsequent Event . In April 2016, the Company sold a life science facility for $74 million with a carrying value of $43 million at March 31, 2016 .

Net Investment in Direct Financ

Net Investment in Direct Financing Leases	3 Months Ended
	Mar. 31, 2016
Net Investment in Direct Financing Leases
Net Investment in Direct Financing Leases	NOTE 5. Net Investment in Direct Financing Leases Net investment in direct financing leases (“DFLs”) consisted of the following (dollars in thousands): March 31, December 31, 2016 2015 Minimum lease payments receivable $ $ Estimated residual values Less unearned income Net investment in direct financing leases before allowance Allowance for DFL losses Net investment in direct financing leases $ $ Properties subject to direct financing leases HCR ManorCare, Inc. The Company acquired 334 post-acute, skilled nursing and assisted living facilities in its 2011 transaction with HCR ManorCare Inc. (“HCRMC”) and entered into a triple-net Master Lease and Security Agreement (the “Master Lease”) with a subsidiary (“Lessee”) of HCRMC. As part of the Company’s fourth quarter 2015 review process, including its internal rating evaluation, it assessed the collectibility of all contractual rent payments under the HCRMC amended master lease (the “Amended Master Lease”). The Company’s evaluation included, but was not limited to, consideration of: (i) the continued decline in HCRMC’s operating performance and fixed charge coverage ratio during the second half of 2015, with the most significant deterioration occurring during the fourth quarter, (ii) the reduced growth outlook for the post-acute/skilled nursing business and (iii) HCRMC’s 2015 audited financial statements. The Company determined that the timing and amounts owed under the HCRMC DFL investments were no longer reasonably assured and assigned an internal rating of “Watch List” as of December 31, 2015. Further, the Company placed the HCRMC DFL investments on nonaccrual and utilizes the cash method of accounting in accordance with its policy. As a result of assigning an internal rating of “Watch List” for its HCRMC DFL investments during the quarterly review process, the Company further evaluated the carrying amount of its HCRMC DFL investments. As a result of the significant decline in HCRMC’s fixed charge coverage ratio in the fourth quarter of 2015, combined with a lower growth outlook for the post-acute/skilled nursing business, the Company determined that it was probable that its HCRMC DFL investments were impaired and the amount of the loss could be reasonably estimated. In the fourth quarter of 2015, the Company recorded an allowance for DFL losses (impairment charge) of $817 million, reducing the carrying amount of its HCRMC DFL investments from $6.0 billion to $5.2 billion. In December 2015, the Company reduced the carrying amount of its equity investment in HCRMC to zero , and income will be recognized only if cash distributions are received from HCRMC; as a result, the Company no longer recharacterizes (eliminates) its proportional ownership share of income from DFLs to equity income from unconsolidated joint ventures (see Note 7). During the quarter ended March 31, 2015, the Company and HCRMC agreed to market for sale the real estate and operations associated with 50 non-strategic facilities that are under the Master Lease. HCRMC will receive an annual rent reduction under the Master Lease based on 7.75% of the net sales proceeds received by HCP. During the year ended December 31, 2015, the Company completed sales of 22 non-strategic HCRMC facilities for $219 million. During the three months ended March 31, 2016, the Company sold an additional 11 facilities for $62 million, bringing the total facilities sold through May 9, 2016 to 33 , with the remaining facility sales expected to close by the end of 2016. On March 29, 2015, certain subsidiaries of the Company entered into an amendment to the Master Lease (the “HCRMC Lease Amendment”) effective April 1, 2015. The HCRMC Lease Amendment reduced initial annual rent by a net $68 million from $541 million to $473 million. Commencing on April 1, 2016, the minimum rent escalation was reset to 3.0% for each lease year through the expiration of the initial term of each applicable pool of facilities. Prior to the HCRMC Lease Amendment, rent payments would have increased 3.5% on April 1, 2015 and 2016 and 3.0% thereafter. The initial term was extended five years to an average of 16 years, and the extension options’ aggregate terms remained the same. As consideration for the rent reduction, the Company received a Deferred Rent Obligation (“DRO”) from the Lessee equal to an aggregate amount of $525 million, which was allocated into two tranches: (i) a Tranche A DRO of $275 million and (ii) a Tranche B DRO of $250 million. The Lessee made rental payments equal to 6.9% of the outstanding amount (representing $19 million) for the initial lease year until the entire Tranche A DRO was paid in full in March 2016. Commencing on April 1, 2016, until the Tranche B DRO is paid in full, the outstanding principal balance of the Tranche B DRO will be increased annually by (i) 3.0% initially, (ii) 4.0% commencing on April 1, 2019, (iii) 5.0% commencing on April 1, 2020, and (iv) 6.0% commencing on April 1, 2021 and for the remainder of its term. The DRO is due and payable on the earlier of (i) certain capital or liquidity events of HCRMC, including an initial public offering or sale, or (ii) March 31, 2029, which is not subject to any extensions. The HCRMC Lease Amendment also imposes certain restrictions on the Lessee and HCRMC until the DRO is paid in full, including with respect to the payment of dividends and the transfer of interest in HCRMC. Additionally, HCRMC agreed to sell, and HCP agreed to purchase, nine post-acute facilities for an aggregate purchase price of $275 million. Through March 31, 2016, HCRMC and HCP completed the nine facility purchases for $275 million, the proceeds of which were used to settle the Tranche A DRO. Following the purchase of a facility, the Lessee leases such facility from the Company pursuant to the Amended Master Lease. The nine facilities contribute an aggregate of $19 million of annual rent (subject to escalation) under the Amended Master Lease. In March 2015, the Company recorded a net impairment charge of $478 million related to its HCRMC DFL investments. The impairment charge reduced the carrying value of the HCRMC DFL investments from $6.6 billion to $6.1 billion, based on the present value of the future lease payments effective April 1, 2015 under the Amended Master Lease discounted at the original DFL investments’ effective lease rate. During the three months ended March 31, 2016 and 2015, the Company recognized DFL income of $113 million and $152 million, respectively, and received cash payments of $113 million and $131 million, respectively, from the HCRMC DFL investments. During the three months ended March 31, 2015, the Company recognized a total of $21 million of net accretion related to its HCRMC DFL investments. The carrying value of the HCRMC DFL investments was $5.1 billion and $5.2 billion at March 31, 2016 and December 31, 2015, respectively. The Company acquired the HCRMC DFL investments in 2011 through an acquisition of a C-Corporation, which was subject to federal and state built-in gain tax, if all the assets were sold within 10 years, of up to $2 billion. At the time, the Company intended to hold the assets for at least 10 years, at which time the assets would no longer be subject to the built-in gain tax. In December 2015, the U.S. Federal Government passed legislation which permanently reduced the holding period, for federal tax purposes, to five years. The Company satisfied the five year holding period requirement in April 2016. However, certain states still require a 10 -year holding period and, as such, the assets are still subject to state built-in gain tax. During the three months ended March 31, 2016, the Company determined that it may sell assets during the next five years and, therefore, recorded a deferred tax liability of approximately $49 million representing its estimated exposure to state built-in gain tax. On April 20, 2015, the DOJ unsealed a previously filed complaint in the U.S. District Court for the Eastern District of Virginia against HCRMC and certain of its affiliates in three consolidated cases following a civil investigation arising out of three lawsuits filed by former employees of HCRMC under the qui tam provisions of the federal False Claims Act. The DOJ’s complaint in intervention is captioned United States of America, ex rel. Ribik, Carson, and Slough v. HCR ManorCare, Inc., ManorCare Inc., HCR ManorCare Services, LLC and Heartland Employment Services, LLC (Civil Action Numbers: 1:09cv13; 1:11cv1054; 1:14cv1228 (CMH/TCB)). The complaint alleges that HCRMC submitted claims to Medicare for therapy services that were not covered by the skilled nursing facility benefit, were not medically reasonable and necessary, and were not skilled in nature, and therefore not entitled to Medicare reimbursement. HCRMC and the DOJ have filed a motion requesting that the court adopt their Joint Proposed Discovery Plan, which establishes the scope of discovery and depositions. Under the Joint Proposed Discovery Plan, motions for summary judgment would be due to be filed in April 2017. While this litigation is at an early stage and HCRMC has indicated that it believes the claims are unjust and it will vigorously defend against them, a significant adverse judgment against HCRMC or significant settlement obligation could impact the carrying value of the Company’s HCRMC DFL investments further . See Notes 7 and 20 for additional discussion of HCRMC. Direct Financing Lease Internal Ratings The following table summarizes the Company’s internal ratings for DFLs at March 31, 2016 (dollars in thousands): Carrying Percentage of Internal Ratings Segment Amount DFL Portfolio Performing DFLs Watch List DFLs Workout DFLs Senior housing $ 31 $ $ $ — Post-acute/skilled nursing 67 — — Hospital 2 — — $ 100 $ $ $ — Beginning September 30, 2013, the Company placed a 14 -property senior housing DFL (the “DFL Portfolio”) on nonaccrual status and assigned an internal rating of “Watch List.” The Company determined that the collection of all rental payments was and continues to be no longer reasonably assured; therefore, rental revenue from the DFL Portfolio is recognized on a cash basis. During the three months ended March 31, 2016 and 2015 , the Company recognized DFL income of $3 million and $4 million, respectively, and received cash payments of $4 million and $5 million, respectively, from the DFL Portfolio. The carrying value of the DFL Portfolio was $364 million and $366 million at March 31, 2016 and December 31, 2015 , respectively.

Loans Receivable

Loans Receivable	3 Months Ended
	Mar. 31, 2016
Loans Receivable.
Loans Receivable	NOTE 6. Loans Receivable The following table summarizes the Company’s loans receivable (in thousands): March 31, 2016 December 31, 2015 Real Estate Other Real Estate Other Secured Secured Total Secured Secured Total Mezzanine (1) (2) $ — $ $ $ — $ $ Other (2) (3) — — Unamortized discounts, fees and costs (1) $ $ $ $ $ $ (1) At March 31, 2016, included £278 million ( $400 million) outstanding and £3 million ( $5 million) of associated unamortized discounts, fees and costs. At December 31, 2015, included £273 million ( $403 million) outstanding and £4 million ( $5 million) of associated unamortized discounts, fees and costs. (2) At March 31, 2016 , the Company had £43 million ( $62 million) remaining under its commitments to fund development projects and capital expenditures under its United Kingdom (“U.K.”) development projects. (3) At March 31, 2016, the Company had $2 million remaining of commitments to fund development projects and capital expenditures under the senior housing development loan program. Loans Receivable Internal Ratings The following table summarizes the Company’s internal ratings for loans receivable at March 31, 2016 (dollars in thousands): Carrying Percentage of Internal Ratings Investment Type Amount Loan Portfolio Performing Loans Watch List Loans Workout Loans Real estate secured $ 15 $ $ — $ — Other secured 85 — — $ 100 $ $ — $ — Real Estate Secured Loans Four Seasons Health Care . In December 2015, the Company purchased £28 million ( $42 million) of Four Seasons Health Care’s (“Four Seasons”) £40 million senior secured term loan. The loan is secured by, among other things, the real estate assets of Four Seasons, and represents the most senior debt tranche. The loan bears interest at a rate of LIBOR plus 6.0% per annum and matures in December 2017. Other Secured Loans HC-One Facility. In November 2014, the Company was the lead investor in the financing for Formation Capital and Safanad’s acquisition of NHP, a company that, at closing, owned 273 nursing and residential care homes representing over 12,500 beds in the U.K. principally operated by HC-One. The Company provided a loan facility (the “HC-One Facility”), secured by substantially all of NHP’s assets, totaling £395 million, with £363 million ( $574 million) drawn at closing and has a five -year term. In February 2015, the Company increased the HC-One Facility by £108 million ( $164 million) to £502 million ( $795 million), in conjunction with HC-One’s acquisition of Meridian Healthcare. In April 2015, the Company converted £174 million of the HC-One Facility into a sale-leaseback transaction for 36 nursing and residential care homes located throughout the U.K. In September 2015, the Company amended and increased its commitment under the HC-One Facility by £11 million primarily for the funding of capital expenditures and a development project. As part of the amendments, the Company shortened the non-call period by 17 months and provided consent for (i) the paydown of £34 million from disposition proceeds without a prepayment premium and (ii) the spinoff of 36 properties into a separate joint venture. In return, the Company retained security over the spinoff properties for a period of two years. During the year ended December 31, 2015, the Company received paydowns of £34 million ( $52 million). At March 31, 2016, the HC-One Facility had an outstanding balance of $395 million. Tandem Health Care Loan. On July 31, 2012, the Company closed a mezzanine loan facility to lend up to $205 million to Tandem Health Care (“Tandem”), as part of the recapitalization of a post-acute/skilled nursing portfolio. The Company funded $100 million (the “First Tranche”) at closing and funded an additional $102 million (the “Second Tranche”) in June 2013. In May 2015, the Company increased and extended the mezzanine loan facility with Tandem to (i) fund $50 million (the “Third Tranche”) and $5 million (the “Fourth Tranche”), which proceeds were used to repay a portion of Tandem’s existing senior and mortgage debt, respectively; (ii) extend its maturity to October 2018; and (iii) extend the prepayment penalty period to January 2017. The loans bear interest at fixed rates of 12% , 14% , 6% and 6% per annum for the First, Second, Third and Fourth Tranches, respectively. At March 31, 2016 , the facility had an outstanding balance of $256 million at an 11.5% blended interest rate and was subordinate to $ 380 million of senior mortgage debt.

Investments in and Advances to

Investments in and Advances to Unconsolidated Joint Ventures	3 Months Ended
	Mar. 31, 2016
Investments in and Advances to Unconsolidated Joint Ventures
Investments in and Advances to Unconsolidated Joint Ventures	NOTE 7. Investments in and Advances to Unconsolidated Joint Ventures The Company owns interests in the following entities that are accounted for under the equity method at March 31, 2016 (dollars in thousands): Entity (1) Segment Carrying Amount Ownership% CCRC JV (2) Senior housing $ 49 HCRMC (3) Senior housing and post-acute/skilled nursing — 9 MBK JV (4) Senior housing 50 HCP Ventures III, LLC Medical office 30 HCP Ventures IV, LLC Medical office and hospital 20 HCP Life Science (5) Life science – 63 Vintage Park Development JV Senior housing 85 MBK Development JV (4) Senior housing 50 Suburban Properties, LLC Medical office 67 K&Y (6) Post-acute/skilled nursing 8 0 Advances to unconsolidated joint ventures, net and other $ (1) These entities are not consolidated because the Company does not control, through voting rights or other means, the joint ventures. (2) Includes two unconsolidated joint ventures in a RIDEA structure (CCRC PropCo and CCRC OpCo). (3) In December 2014, September 2015 and December 2015, the Company recognized impairment charges of $36 million, $27 million and $19 million, respectively. (4) Includes two unconsolidated joint ventures in a RIDEA structure (PropCo and OpCo). (5) Includes three unconsolidated joint ventures between the Company and an institutional capital partner. HCP Life Science includes the following partnerships (and the Company’s ownership percentage): (i) Torrey Pines Science Center, LP ( 50% ); (ii) Britannia Biotech Gateway, LP ( 55% ); and (iii) LASDK, LP ( 63% ). (6) Includes three unconsolidated joint ventures. Summarized combined financial information for the Company’s equity method investments (in thousands): March 31, December 31, 2016 2015 Real estate, net $ $ Goodwill and other assets, net Assets held for sale Total assets $ $ Capital lease obligations and mortgage debt $ $ Accounts payable Liabilities and mortgage debt held for sale Other partners’ capital HCP’s capital (1) Total liabilities and partners’ capital $ $ (1) The combined basis difference of the Company’s investments in these joint ventures of $35 million, as of March 31, 2016 , is attributable to goodwill, real estate, capital lease obligations, deferred tax assets and lease-related net intangibles. Three Months Ended March 31, 2016 2015 Total revenues $ $ Income (loss) from discontinued operations Net (loss) income HCP’s share of earnings (1) Fees earned by HCP Distributions received by HCP (1) The Company’s joint venture interest in HCRMC is accounted for using the equity method and results in an elimination of DFL income proportional to HCP’s ownership in HCRMC. The elimination of the respective proportional lease expense at the HCRMC level in substance resulted in $16 million of DFL income that was recharacterized to the Company’s share of earnings from HCRMC (equity income from unconsolidated joint ventures) for the three months ended March 31, 2015 . Beginning in January 2016, income will be recognized only if cash distributions are received from HCRMC; as a result, the Company no longer recharacterizes (eliminates) its proportional ownership share of income from DFLs to equity income (loss) from unconsolidated joint ventures. HCRMC . The Company concluded that its equity investment in HCRMC was other-than-temporarily impaired as of December 31, 2014, September 30, 2015 and December 31, 2015 and recorded impairment charges of $36 million, $27 million and $19 million, respectively. Beginning in January 2016, equity income will be recognized only if cash distributions are received from HCRMC (see Note 5). MBK JVs . On March 30, 2015, the Company and MBK Senior Living (“MBK”), a subsidiary of Mitsui & Co. Ltd, formed a new RIDEA joint venture (“MBK JV”) that owns three senior housing facilities with the Company and MBK each owning a 50% equity interest. MBK manages these communities on behalf of the joint venture. The Company contributed $ 27 million of cash and MBK contributed the three senior housing facilities with a fair value of $126 million, which were encumbered by $78 million of mortgage debt at closing. On September 25, 2015, the Company and MBK formed a new RIDEA joint venture (“MBK Development JV”), which acquired a $3 million parcel of land for the purpose of developing a 74 -unit class A senior housing facility in Santa Rosa, California. The parcel of land is located adjacent to the Oakmont Gardens independent living facility currently owned and operated by the MBK JV.

Intangibles

Intangibles	3 Months Ended
	Mar. 31, 2016
Intangibles
Intangibles	NOTE 8. Intangibles At March 31, 2016 and December 31, 2015 , gross intangible lease assets, comprised of lease-up intangibles, above market tenant lease intangibles and below market ground lease intangibles, were $988 million and $984 million, respectively. At March 31, 2016 and December 31, 2015 , the accumulated amortization of intangible assets was $403 million and $380 million, respectively. At both March 31, 2016 and December 31, 2015 , gross intangible lease liabilities, comprised of below market tenant lease intangibles and above market ground lease intangibles were $156 million. At March 31, 2016 and December 31, 2015 , the accumulated amortization of intangible liabilities was $103 million and $100 million, respectively.

Other Assets

Other Assets	3 Months Ended
	Mar. 31, 2016
Other Assets
Other Assets	NOTE 9. Other Assets A summary of the Company’s other assets (in thousands): March 31, December 31, 2016 2015 Straight-line rent receivables, net of allowance of $33,012 and $33,648 , respectively $ $ Marketable debt securities, net Leasing costs and inducements, net Goodwill Other Total other assets $ $ At March 31, 2016 and December 31, 2015 , other assets includes a non-interest bearing receivable of $5 million and $9 million, respectively, from Brookdale payable in eight quarterly installments. Four Seasons Health Care Senior Unsecured Notes Marketable debt securities, net are classified as held-to-maturity debt securities and primarily represent senior notes issued by Elli Investments Limited (“Elli”), a company beneficially owned by funds or limited partnerships managed by Terra Firma, as part of the financing for Elli’s acquisition of Four Seasons Health Care (the “Four Seasons Notes”). The Four Seasons Notes mature in June 2020, are non-callable through June 2016 and bear interest on their par value at a fixed rate of 12.25% per annum. The Company purchased an aggregate par value of £138.5 million of the Four Seasons Notes at a discount for £136.8 million ( $215 million) in June 2012, representing 79% of the total £175 million issued and outstanding Four Seasons Notes. In June 2015 and September 2015, the Company determined that the Four Seasons Notes were other-than-temporarily impaired and recorded impairment charges of $42 million and $70 million, respectively. Elli remains obligated to repay the aggregate par value at maturity and interest payments due June 15 and December 15 each year. When the remaining semi-annual interest payments are received, the Company expects to reduce the carrying value of the Four Seasons Notes during the related fiscal period. In December 2015, the Company received its contractual interest payment of £8 million ( $13 million), which was applied against the principal balance reducing the carrying amount to £58 million ( $85 million and $83 million at December 31, 2015 and March 31, 2016, respectively).

Debt

Debt	3 Months Ended
	Mar. 31, 2016
Debt
Debt	NOTE 10. Debt Bank Line of Credit and Term Loans The Company’s $2.0 billion unsecured revolving line of credit facility (the “Facility”) matures on March 31, 2018 and contains a one -year extension option. Borrowings under the Facility accrue interest at LIBOR plus a margin that depends upon the Company’s credit ratings. The Company pays a facility fee on the entire revolving commitment that depends on its credit ratings. Based on the Company’s credit ratings at March 31, 2016 , the margin on the Facility was 0.925% , and the facility fee was 0.15% . The Facility also includes a feature that allows the Company to increase the borrowing capacity by an aggregate amount of up to $500 million, subject to securing additional commitments from existing lenders or new lending institutions. At March 31, 2016 , the Company had $810 million, including £275 million ( $395 million), outstanding under the Facility with a weighted average effective interest rate of 1.68% . The Facility and term loans 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 agreements, (i) limit the ratio of Consolidated Total Indebtedness to Consolidated Total Asset Value to 60% , (ii) limit the ratio of Secured Debt to Consolidated Total Asset Value to 30% , (iii) limit the ratio of Unsecured Debt to Consolidated Unencumbered Asset Value to 60% and (iv) require a minimum Fixed Charge Coverage ratio of 1.5 times. The Facility and term loans also require a Minimum Consolidated Tangible Net Worth of $9.5 billion at March 31, 2016 . At March 31, 2016 , the Company was in compliance with each of these restrictions and requirements. Senior Unsecured Notes At March 31, 2016 , the Company had senior unsecured notes outstanding with an aggregate principal balance of $8.7 billion. The senior unsecured notes contain certain covenants including limitations on debt, maintenance of unencumbered assets, cross-acceleration provisions and other customary terms. The Company believes it was in compliance with these covenants at March 31, 2016 . The following table summarizes the Company’s senior unsecured notes issuances for the periods presented (dollars in thousands): Issuance Period Amount Coupon Rate Maturity Date Net Proceeds Year ended December 31, 2015: January 21, 2015 $ % $ May 20, 2015 $ % $ December 1, 2015 $ % $ The following table summarizes the Company’s senior unsecured notes payoffs for the periods presented (dollars in thousands): Period Amount Coupon Rate Three months ended March 31, 2016: February 1, 2016 $ % Year ended December 31, 2015: March 1, 2015 $ % June 8, 2015 $ % Mortgage Debt At March 31, 2016 , the Company had $895 million in aggregate principal amount of mortgage debt outstanding, which is secured by 56 healthcare facilities (including redevelopment properties) with a carrying value of $1.1 billion. Mortgage debt generally requires monthly principal and interest payments, is collateralized by real estate assets and is generally non-recourse. Mortgage debt typically restricts transfer of the encumbered assets, prohibits additional liens, restricts prepayment, requires payment of real estate taxes, requires maintenance of the assets in good condition, requires maintenance of insurance on the assets and includes conditions to obtain lender consent to enter into or terminate material leases. Some of the mortgage debt is also cross-collateralized by multiple assets and may require tenants or operators to maintain compliance with the applicable leases or operating agreements of such real estate assets. Debt Maturities The following table summarizes the Company’s stated debt maturities and scheduled principal repayments at March 31, 2016 , (in thousands): Senior Bank Line of Unsecured Mortgage Year Credit (1) Term Loans (2) Notes (3) Debt (4) Total (5) 2016 (nine months) $ — $ $ $ $ 2017 — — 2018 — 2019 — 2020 — — Thereafter — — Discounts, net — $ $ $ $ $ (1) Includes £275 million ( $395 million) translated into U.S. dollars (“USD”). (2) Represents £357 million translated into USD. (3) Interest rates on senior unsecured notes ranged from 2.79% to 6.88% with a weighted average effective interest rate of 4.72% and a weighted average maturity of six years. (4) Interest rates on the mortgage debt ranged from 3.11% to 8.35% with a weighted average effective interest rate of 6.22% and a weighted average maturity of two years. (5) Excludes $ 95 million of other debt that represents Life Care Bonds and Demand Notes that have no scheduled maturities. Other Debt At March 31, 2016 , the Company had $67 million of non-interest bearing life care bonds at two of its continuing care retirement communities and non-interest bearing occupancy fee deposits at two of its senior housing facilities, all of which are payable to certain residents of the facilities (collectively, “Life Care Bonds”). The Life Care Bonds are generally refundable to the residents upon the termination of the contract or upon the successful resale of the unit. At March 31, 2016 , the Company had $28 million of on-demand notes (“Demand Notes”) from the CCRC JV. The Demand Notes bear interest at a rate of 4.5% .

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies.
Commitments and Contingencies	NOTE 11. 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. The Company is not aware of any 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, results of operations or cash flows. The Company’s policy is to expense legal costs as they are incurred.

Equity

Equity	3 Months Ended
	Mar. 31, 2016
Equity
Equity	NOTE 12. Equity Common Stock The following table lists the common stock cash dividends declared by the Company in 2016 : Amount Dividend Declaration Date Record Date Per Share Payable Date January 28 February 8 $ February 23 April 27 May 9 May 24 The following is a summary of the Company’s other common stock activities (shares in thousands): Three Months Ended March 31, 2016 2015 Dividend Reinvestment and Stock Purchase Plan Conversion of DownREIT units (1) Exercise of stock options Vesting of restricted stock units Repurchase of common stock (1) Non-managing member limited liability company (“LLC”) units. Accumulated Other Comprehensive Loss The following is a summary of the Company’s accumulated other comprehensive loss (in thousands): March 31, December 31, 2016 2015 Cumulative foreign currency translation adjustment $ $ Unrealized losses on cash flow hedges, net Supplemental Executive Retirement Plan minimum liability Unrealized (losses) gains on available for sale securities Total accumulated other comprehensive loss $ $ Noncontrolling Interests At March 31, 2016 , non-managing members held an aggregate of 4 million units in five limited liability companies (“DownREITs”), for which the Company is the managing member. At March 31, 2016 , the carrying and fair values of these DownREIT units were $181 million and $191 million, respectively. See Note 15 for the supplemental schedule of non-cash financing activities.

Segment Disclosures

Segment Disclosures	3 Months Ended
	Mar. 31, 2016
Segment Disclosures
Segment Disclosures	NOTE 13. Segment Disclosures The Company evaluates its business and makes resource allocations based on its five business segments: (i) senior housing, (ii) post-acute/skilled nursing, (iii) life science, (iv) medical office and (v) hospital. Under the medical office segment, the Company invests through the acquisition and development of medical office buildings (“MOBs”), which generally require a greater level of property management. Otherwise, the Company primarily invests, through the acquisition and development of real estate, in single tenant and operator properties and debt issued by tenants and operators in these sectors. The accounting policies of the segments are the same as those described in Note 2 to the Consolidated Financial Statements herein and in the Company’s 2015 Annual Report on Form 10-K filed with the SEC. There were no intersegment sales or transfers during the three months ended March 31, 2016 and 2015 . The Company evaluates performance based upon (i) property net operating income from continuing operations (“NOI”), (ii) adjusted NOI (cash NOI), and (iii) adjusted NOI, including the Company’s pro rata share of unconsolidated joint ventures, plus interest income (“Portfolio Income”) of the combined investments in each segment. Non-segment assets consist primarily of corporate assets, including cash and cash equivalents, restricted cash, accounts receivable, net, marketable equity securities and, if any, real estate held for sale. Interest expense, depreciation and amortization, and non-property specific revenues and expenses are not allocated to individual segments in evaluating the Company’s segment-level performance. See Note 17 for other information regarding concentrations of credit risk. Summary information for the reportable segments (in thousands): For the three months ended March 31, 2016 : Senior Post-acute/ Life Medical Housing Skilled Nursing Science Office Hospital Total Rental revenues (1) $ $ $ $ $ $ Resident fees and services — — — — Operating expenses NOI Non-cash adjustments to NOI (2) Adjusted (cash) NOI Adjusted (cash) NOI from unconsolidated joint ventures — Interest income — — — Portfolio Income $ $ $ $ $ Addback non-cash adjustments Investment management fee income Interest expense Depreciation and amortization General and administrative expenses Acquisition and pursuit costs Other income, net Income tax expense Equity loss in unconsolidated joint ventures, excluding adjusted (cash) NOI Net income $ For the three months ended March 31, 2015 : Senior Post-acute/ Life Medical Housing Skilled Nursing Science Office Hospital Total Rental revenues (1) $ $ $ $ $ $ Resident fees and services — — — — Operating expenses NOI Non-cash adjustments to NOI (2) Adjusted (cash) NOI Adjusted (cash) NOI from unconsolidated joint ventures — — Interest income — — — Portfolio Income $ $ $ $ $ Addback non-cash adjustments Investment management fee income Interest expense Depreciation and amortization General and administrative expenses Acquisition and pursuit costs Impairment Gain on sales of real estate Other income, net Income tax benefit Equity loss in unconsolidated joint ventures, excluding adjusted (cash) NOI Net loss $ (1) Represents rental and related revenues, tenant recoveries and income from DFLs. (2) Represents straight-line rents, DFL non-cash interest, amortization of market lease intangibles and lease termination fees. A summary of the Company’s total assets by segment (in thousands): March 31, December 31, Segment 2016 2015 Senior housing $ $ Post-acute/skilled nursing Life science Medical office Hospital Gross segment assets Accumulated depreciation and amortization Net segment assets Real estate assets held for sale, net Other non-segment assets Total assets $ $ At both March 31, 2016 and December 31, 2015 , goodwill of $50 million was allocated to segment assets as follows: (i) senior housing— $31 million, (ii) post-acute/skilled nursing — $3 million, (iii) medical office— $11 million and (iv) hospital— $5 million.

Earnings Per Common Share

Earnings Per Common Share	3 Months Ended
	Mar. 31, 2016
Earnings Per Common Share
Earnings Per Common Share	NOTE 14. Earnings Per Common Share The following table illustrates the computation of basic and diluted earnings per share (in thousands, except per share amounts): Three Months Ended March 31, 2016 2015 Numerator Net income (loss) $ $ Noncontrolling interests’ share in earnings Net income (loss) attributable to HCP, Inc. Participating securities’ share in earnings Net income (loss) applicable to common shares $ $ Denominator Basic weighted average common shares Dilutive potential common shares — Diluted weighted average common shares Earnings per common share Basic $ $ Diluted $ $ Restricted stock and certain of the Company’s performance restricted stock units are considered participating securities, because dividend payments are not forfeited even if the underlying award does not vest, which requires the use of the two-class method when computing basic and diluted earnings per share. Options to purchase approximately 1.4 million shares of common stock that had an exercise price (including deferred compensation expense) in excess of the average closing market price of the Company’s common stock during the three months ended March 31, 2016 were not included in the Company’s earnings per share calculations because they are anti-dilutive. Restricted stock and performance restricted stock units representing 0.7 million shares of common stock during the three months ended March 31, 2016 were not included because they are anti-dilutive. Additionally, 6 million shares issuable upon conversion of 4 million DownREIT units during the three months ended March 31, 2016 were not included because they are anti-dilutive. For the three months ended March 31, 2015, the Company generated a net loss. The weighted-average basic shares outstanding was used in calculating diluted loss per share from continuing operations, as using diluted shares would be anti-dilutive to loss per share.

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	3 Months Ended
	Mar. 31, 2016
Supplemental Cash Flow Information
Supplemental Cash Flow Information	NOTE 15. Supplemental Cash Flow Information The following table provides supplemental cash flow information (in thousands): Three Months Ended March 31, 2016 2015 Supplemental cash flow information: Interest paid, net of capitalized interest $ $ Income taxes paid Capitalized interest Supplemental schedule of non-cash investing activities: Accrued construction costs Settlement of HCRMC Tranche A DRO as consideration for DFL acquisition — Tenant funded tenant improvements owned by HCP Supplemental schedule of non-cash financing activities: Vesting of restricted stock units Conversion of non-managing member units into common stock Noncontrolling interest issued in connection with real estate acquisitions — Other liabilities assumed with real estate acquisitions Unrealized (losses) gains on available-for-sale securities and derivatives designated as cash flow hedges, net

Variable Interest Entities

Variable Interest Entities	3 Months Ended
	Mar. 31, 2016
Variable Interest Entities
Variable Interest Entities	NOTE 16. Variable Interest Entities On January 1, 2016, the Company adopted ASU 2015-02 using the modified retrospective method as permitted by the ASU. As a result of the adoption, the Company identified additional assets and liabilities of certain VIEs in its consolidated total assets and total liabilities at December 31, 2015 of $543 million and $651 million, respectively. Refer to the specific VIE descriptions below for detail on which entities were classified as consolidated VIEs subsequent to the adoption of ASU 2015-02. Additionally, the Company deconsolidated three joint ventures and recognized $0.5 million as a cumulative-effect adjustment to cumulative dividends in excess of earnings. Unconsolidated Variable Interest Entities At March 31, 2016 , the Company had investments in: (i) four unconsolidated VIE joint ventures; (ii) 358 properties leased to VIE tenants; and (iii) marketable debt securities of, and a loan to two VIE borrowers. The Company has determined that it is not the primary beneficiary of these VIEs. The Company does not consolidate these VIEs because it does not have the ability to control the activities that most significantly impact their economic performance. Except for the Company’s equity interest in the unconsolidated joint ventures (CCRC OpCo, HCRMC OpCo, Vintage Park Development JV and LLC investments discussed below), it has no formal involvement in these VIEs beyond its investments. The Company leases 310 properties to, and has an equity ownership investment in, HCRMC that has been identified as a VIE upon a reconsideration event in the fourth quarter of 2015. HCRMC has experienced continued operational declines and is a “thinly capitalized” entity that relies on the operating cash flows generated from its senior housing and post-acute facilities to fund operating expenses, including the rent obligations under the Amended Master Lease (see Notes 5 and 7). The Company leases 48 properties to a total of seven tenants that have been identified as VIEs (“VIE tenants”). These VIE tenants are “thinly capitalized” entities that rely on the operating cash flows generated from the senior housing facilities to pay operating expenses, including the rent obligations under their leases. The Company holds a 49% ownership interest in CCRC OpCo, a joint venture entity formed in August 2014 that operates senior housing properties in a RIDEA structure, that has been identified as a VIE (see Note 7). The equity members of CCRC OpCo “lack power” because they share certain operating rights with Brookdale as manager of the CCRCs. The assets of CCRC OpCo primarily consist of the CCRCs that it owns and leases, resident fees receivable, notes receivable, and cash and cash equivalents; its obligations primarily consist of operating lease obligations to CCRC PropCo and accounts payable and expense accruals associated with the cost of its CCRCs’ operations. Assets generated by the CCRC operations (primarily rents from CCRC residents) of CCRC OpCo may only be used to settle its contractual obligations (primarily the rental costs and operating expenses incurred to manage such facilities). The Company holds Four Seasons Notes (see Note 9) and a portion of Four Season’s senior secured term loan (see Note 6). In the second quarter of 2015, upon the occurrence of a reconsideration event, it was determined that the issuer of the Four Seasons Notes is a VIE because this entity is “thinly capitalized.” The Company holds an 85% ownership interest in Vintage Park Development JV (see Note 7) that has been identified as a VIE. Although power is shared among equity members, one equity member does not have a substantive investment in the entity. The assets of Vintage Park Development JV primarily consist of an in-progress independent living facility development project that it owns and cash and cash equivalents; its obligations primarily consist of accounts payable and expense accruals associated with the cost of the development obligations. Any assets generated by Vintage Park Development JV may only be used to settle its contractual obligations (primarily development expenses and debt service payments). The Company holds a limited partner ownership interest in an unconsolidated LLC that has been identified as a VIE. The Company’s involvement in the entity is limited to its equity investment as a limited partner, and it does not have any ability to direct the activities that most significantly impact the entity. The assets and liabilities of the entity primarily consist of senior housing real estate and development activities. Any assets generated by the entity may only be used to settle its contractual obligations (primarily development expenses and debt service payments). The Company holds commercial mortgage-backed securities (“CMBS”) issued by Federal Home Loan Mortgage Corporation (“Freddie MAC”) through a special purpose entity that has been identified as a VIE because it is “thinly capitalized.” The CMBS issued by the VIE are backed by mortgage debt obligations on real estate assets. The classification of the related assets and liabilities and their maximum loss exposure as a result of the Company’s involvement with these VIEs at March 31, 2016 are presented below (in thousands): Maximum Loss Carrying VIE Type Exposure (1) Asset/Liability Type Amount HCRMC $ Net investment in DFLs and investments in unconsolidated joint ventures $ VIE tenants—DFLs Net investment in DFLs VIE tenants—operating leases Lease intangibles, net and straight-line rent receivables CCRC OpCo Investments in unconsolidated joint ventures Four Seasons Loans and marketable debt securities Vintage Park Development JV Investments in unconsolidated joint ventures CMBS and LLC investments Marketable debt and cost method investments (1) The Company’s maximum loss exposure related to HCRMC, VIE tenants, CCRC OpCo, Vintage Park Development JV, loan and marketable debt securities, and LLC investments to VIE borrowers represents the aggregate carrying amount of such investments (including accrued interest). The Company’s maximum loss exposure may be mitigated by re-leasing the underlying properties to new tenants upon an event of default. As of March 31, 2016 , the Company has not provided, and is not required to provide, financial support through a liquidity arrangement or otherwise, to its unconsolidated VIEs, including circumstances in which it could be exposed to further losses (e.g., cash shortfalls). See Notes 5, 6, 7 and 9 for additional descriptions of the nature, purpose and operating activities of the Company’s unconsolidated VIEs and interests therein. Consolidated Variable Interest Entities RIDEA I. The Company holds a 90% ownership interest in joint venture entities formed in September 2011 that own and operate senior housing properties in a RIDEA structure (“RIDEA I”). The Company has historically classified RIDEA I OpCo as a VIE and, as a result of the adoption of ASU 2015-02, now classifies RIDEA I PropCo as a VIE as well due to the non-managing member having no substantive participating rights in the management of RIDEA I PropCo or kick-out rights over the managing member. The Company consolidates RIDEA I PropCo and RIDEA I OpCo as the primary beneficiary because it has the ability to control the activities that most significantly impact these VIEs’ economic performance. The assets of RIDEA I PropCo primarily consist of leased properties (net real estate), rents receivable, and cash and cash equivalents; its obligations primarily consist of notes payable to a non-VIE consolidated subsidiary of the Company. The assets of RIDEA I OpCo primarily consist of leasehold interests in senior housing facilities (operating leases), resident fees receivable, and cash and cash equivalents; its obligations primarily consist of lease payments to RIDEA I PropCo and operating expenses of its senior housing facilities (accounts payable and accrued expenses). Assets generated by the senior housing operations (primarily from senior housing resident rents) of the RIDEA I structure may only be used to settle its contractual obligations (primarily from the rental costs, operating expenses incurred to manage such facilities and debt costs). RIDEA II . The Company holds an 80% ownership interest in joint venture entities formed in August 2014 that own and operate senior housing properties in a RIDEA structure (“RIDEA II”). The Company consolidates RIDEA II (“SH PropCo” and “SH OpCo”) as the primary beneficiary because it has the ability to control the activities that most significantly impact these VIEs’ economic performance. The assets of SH PropCo primarily consist of leased properties (net real estate), rents receivable, and cash and cash equivalents; its obligations primarily consist of a note payable to a non-VIE consolidated subsidiary of the Company. The assets of SH OpCo primarily consist of leasehold interests in senior housing facilities (operating leases), resident fees receivable, and cash and cash equivalents; its obligations primarily consist of lease payments to SH PropCo and operating expenses of its senior housing facilities (accounts payable and accrued expenses). Assets generated by the senior housing operations (primarily from senior housing resident rents) of the RIDEA II structure may only be used to settle its contractual obligations (primarily from the rental costs, operating expenses incurred to manage such facilities and debt costs). See Note 20 for additional discussion of potential RIDEA II transactions. RIDEA III . The Company holds a 90% ownership interest in joint venture entities formed in June 2015 that own and operate senior housing properties in a RIDEA structure (“RIDEA III”). The Company has historically classified RIDEA III OpCo as a VIE and, as a result of the adoption of ASU 2015-02, now classifies RIDEA III PropCo as a VIE as well due to the non-managing member having no substantive participating rights in the management of RIDEA III PropCo or kick-out rights over the managing member. The Company consolidates RIDEA III PropCo and RIDEA III OpCo as the primary beneficiary because it has the ability to control the activities that most significantly impact these VIEs’ economic performance. The assets of RIDEA III PropCo primarily consist of leased properties (net real estate), rents receivable, and cash and cash equivalents; its obligations primarily consist of a note payable to a non-VIE consolidated subsidiary of the Company. The assets of RIDEA III OpCo primarily consist of leasehold interests in senior housing facilities (operating leases), resident fees receivable, and cash and cash equivalents; its obligations primarily consist of lease payments to RIDEA III PropCo and operating expenses of its senior housing facilities (accounts payable and accrued expenses). Assets generated by the senior housing operations (primarily from senior housing resident rents) of the RIDEA III structure may only be used to settle its contractual obligations (primarily from the rental costs, operating expenses incurred to manage such facilities and debt costs). HCP Ventures V, LLC . The Company holds a 51% ownership interest in and is the managing member of a joint venture entity formed in October 2015 that owns and leases real estate assets (“HCP Ventures V, LLC”). Upon adoption of ASU 2015-02, the Company classified HCP Ventures V, LLC as a VIE due to the non-managing member having no substantive participating rights in the management of the HCP Ventures V, LLC or kick-out rights over the managing member. The Company consolidates HCP Ventures V, LLC as the primary beneficiary because it has the ability to control the activities that most significantly impact the VIE’s economic performance. The assets of HCP Ventures V, LLC primarily consist of leased properties (net real estate), rents receivable, and cash and cash equivalents; its obligations primarily consist of capital expenditures for the properties. Assets generated by the HCP Ventures V, LLC may only be used to settle its contractual obligations (primarily from capital expenditures). Vintage Park JV . The Company holds a 90% ownership interest in a joint venture entity formed in January 2015 that owns an 85% interest in an unconsolidated development VIE (“Vintage Park JV”). Upon adoption of ASU 2015-02, the Company classified Vintage Park JV as a VIE due to the non-managing member having no substantive participating rights in the management of the Vintage Park JV or kick-out rights over the managing member. The Company consolidates Vintage Park JV as the primary beneficiary because it has the ability to control the activities that most significantly impact the VIE’s economic performance. The assets of Vintage Park JV primarily consist of an investment in the Vintage Park Development JV and cash and cash equivalents; its obligations primarily consist of funding the ongoing development of the Vintage Park Development JV. Assets generated by the Vintage Park JV may only be used to settle its contractual obligations (primarily from the funding of the Vintage Park Development JV). DownREIT Partnerships . The Company holds a controlling ownership interest in and is the managing member of five partnerships organized in downREIT structures (the “DownREIT Partnerships”). Upon adoption of ASU 2015-02, the Company classified the DownREIT Partnerships as VIEs due to the non-managing members having no substantive participating rights in the management of the DownREIT Partnerships or kick-out rights over the managing member. The Company consolidates the DownREIT Partnerships as the primary beneficiary because it has the ability to control the activities that most significantly impact these VIEs’ economic performance. The assets of the DownREIT Partnerships primarily consist of leased properties (net real estate), rents receivable, and cash and cash equivalents; its obligations primarily consist of debt service payments and capital expenditures for the properties. Assets generated by the DownREIT Partnerships (primarily from resident rents) may only be used to settle its contractual obligations (primarily from debt service and capital expenditures). Other Consolidated Real Estate Partnerships . The Company holds a controlling ownership interest in and is the general partner (or managing member) of multiple partnerships that own and lease real estate assets (the “Partnerships”). Upon adoption of ASU 2015-02, the Company classified the Partnerships as VIEs due to the limited partners (non-managing members) having no substantive participating rights in the management of the Partnerships or kick-out rights over the general partner (managing member). The Company consolidates the Partnerships as the primary beneficiary because it has the ability to control the activities that most significantly impact these VIEs’ economic performance and its right (or obligation) to the majority of the returns (or losses). The assets of the Partnerships primarily consist of leased properties (net real estate), rents receivable, and cash and cash equivalents; its obligations primarily consist of debt service payments and capital expenditures for the properties. Assets generated by the Partnerships (primarily from resident rents) may only be used to settle its contractual obligations (primarily from debt service and capital expenditures). Other consolidated VIEs . The Company made a loan to an entity that entered into a tax credit structure (“Tax Credit Subsidiary”) and a loan to an entity that made an investment in a development joint venture (“Development JV”) both of which are considered VIEs. The Company consolidates the Tax Credit Subsidiary and Development JV because it is the primary beneficiary as it has the ability to control the activities that most significantly impact the VIEs’ economic performance. The assets and liabilities of the Tax Credit Subsidiary and Development JV substantially consist of development in progress, notes receivable, prepaid expenses, notes payable, and accounts payable and accrued liabilities generated from their operating activities. Any assets generated by the operating activities of the Tax Credit Subsidiary and Development JV may only be used to settle their contractual obligations.

Concentration of Credit Risk

Concentration of Credit Risk	3 Months Ended
	Mar. 31, 2016
Concentration of Credit Risk
Concentration of Credit Risk	NOTE 17. Concentration of Credit Risk Concentrations of credit risk arise when one or more tenants, operators or obligors related to the Company’s investments are engaged in similar business activities, or activities in the same geographic region, or have similar economic features that would cause their ability to meet contractual obligations, including those to the Company, to be similarly affected by changes in economic conditions. The Company regularly monitors various segments of its portfolio to assess potential concentrations of risks. The Company does not have significant foreign operations. The following tables provide information regarding the Company’s concentrations with respect to certain tenants and operators; the information provided is presented for the gross assets and revenues that are associated with certain tenants and operators as percentages of their respective segment’s and total Company’s gross assets and revenues: Percentage of Percentage of Senior Housing Gross Assets Senior Housing Revenues March 31, December 31, Three Months Ended March 31, Operators 2016 2015 2016 2015 Brookdale % % % % HCRMC % % % % Percentage of Post-Acute/ Percentage of Post-Acute/ Skilled Nursing Gross Assets Skilled Nursing Revenues March 31, December 31, Three Months Ended March 31, Operators 2016 2015 2016 2015 HCRMC % % % % Percentage of Percentage of Total Company Gross Assets Total Company Revenues March 31, December 31, Three Months Ended March 31, Operators 2016 2015 2016 2015 HCRMC % % % % Brookdale % % % % HCRMC’s summarized consolidated financial information (in millions): March 31, December 31, 2016 2015 Real estate and other property, net $ $ Cash and cash equivalents Goodwill, intangible and other assets, net Total assets $ $ Debt and financing obligations $ $ Accounts payable, accrued liabilities and other Total equity Total liabilities and equity $ $ Three Months Ended March 31, 2016 2015 Revenues $ $ Operating, general and administrative expense Depreciation and amortization expense Interest expense Other income, net Gain on disposal of assets — (Loss) income from continuing operations before income tax (expense) benefit Income tax benefit (expense) (Loss) income from continuing operations Income from discontinued operations, net of taxes Net (loss) income $ $ As of March 31, 2016 , Brookdale provided comprehensive facility management and accounting services with respect to 108 of the Company’s senior housing facilities and 15 CCRCs owned by the CCRC JV, for which the Company or joint venture pay annual management fees pursuant to long-term management agreements. Most of the management agreements have terms ranging from 10 to 15 years, with three to four 5 -year renewals. The base management fees are 4.5% to 5.0% of gross revenues (as defined) generated by the RIDEA facilities. In addition, there are incentive management fees payable to Brookdale if operating results of the RIDEA properties exceed pre-established EBITDAR (as defined) thresholds. Brookdale is subject to the registration and reporting requirements of the SEC and is required to file with the SEC annual reports containing audited financial information and quarterly reports containing unaudited financial information. The information related to Brookdale contained or referred to in this report has been derived from SEC filings made by Brookdale or other publicly available information, or was provided to the Company by Brookdale, and the Company has not verified this information through an independent investigation or otherwise. The Company has no reason to believe that this information is inaccurate in any material respect, but the Company cannot assure the reader of its accuracy. The Company is providing this data for informational purposes only, and encourages the reader to obtain Brookdale’s publicly available filings, which can be found at the SEC’s website at www.sec.gov. To mitigate the credit risk of leasing properties to certain senior housing and post-acute/skilled nursing operators, leases with operators are often combined into portfolios that contain cross-default terms, so that if a tenant of any of the properties in a portfolio defaults on its obligations under its lease, the Company may pursue its remedies under the lease with respect to any of the properties in the portfolio. Certain portfolios also contain terms whereby the net operating profits of the properties are combined for the purpose of securing the funding of rental payments due under each lease.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2016
Fair Value Measurements
Fair Value Measurements	NOTE 18. Fair Value Measurements Items Measured at Fair Value on a Recurring Basis The following table illustrates the Company’s financial assets and liabilities measured at fair value on a recurring basis at March 31, 2016 in the consolidated balance sheets (in thousands): Financial Instrument (1) Fair Value Level 1 Level 2 Level 3 Marketable equity securities $ $ $ — $ — Interest-rate swap liabilities — — Currency swap assets — — Warrants — — (1) Interest-rate and currency swaps, as well as common stock warrant fair values, are determined based on observable and unobservable market assumptions utilizing standardized derivative pricing models. Recognized gains and losses are recorded in other income, net on the Company’s consolidated statements of operations. During the three months ended March 31, 2016 , there were no transfers of financial assets or liabilities within the fair value hierarchy. Disclosures About Fair Value of Financial Instruments Cash and cash equivalents, restricted cash, accounts receivable, net, and accounts payable and accrued liabilities – The carrying values are reasonable estimates of fair value because of the short-term maturities of these instruments. Loans receivable, net and mortgage debt – The fair values are based on discounting future cash flows utilizing current market rates for loans and debt of the same type and remaining maturity. Marketable debt securities – The fair value is based on quoted prices from inactive markets. Marketable equity securities and senior unsecured notes – The fair values are based on quoted prices in active markets. Warrants – The fair value is based on significant unobservable market inputs utilizing standardized derivative pricing models. Bank line of credit, term loans and other debt – The carrying values are reasonable estimates of fair value because the borrowings are primarily based on market interest rates and the Company’s current credit ratings. Interest-rate swaps – The fair value is based on observable inputs utilizing standardized pricing models that consider forward yield curves and discount rates which are observable in active and inactive markets. Currency swaps – The fair value is based on observable inputs utilizing standardized pricing models that consider the future value of the currency exchange rates, comprised of current spot and traded forward points, and calculating a present value of the net amount using discount rates based on observable traded interest rates. The table below summarizes the carrying values and fair values of the Company’s financial instruments (in thousands): March 31, 2016 December 31, 2015 Carrying Carrying Value Fair Value Value Fair Value Loans receivable, net (2) $ $ $ $ Marketable debt securities (2) Marketable equity securities (1) Warrants (3) Bank line of credit (2) Term loans (2) Senior unsecured notes (1) Mortgage debt (2) Other debt (2) Interest-rate swap assets (2) — — Interest-rate swap liabilities (2) Currency swap assets (2) (1) Level 1: Fair value calculated based on quoted prices in active markets. (2) Level 2: Fair value based on quoted prices for similar or identical instruments in active or inactive markets, respectively, or calculated utilizing standardized pricing models in which significant inputs or value drivers are observable in active markets. (3) Level 3: Fair value determined based on significant unobservable market inputs using standardized derivative pricing models.

Derivative Financial Instrument

Derivative Financial Instruments	3 Months Ended
	Mar. 31, 2016
Derivative Financial Instruments
Derivative Financial Instruments	NOTE 19. Derivative Financial Instruments The following table summarizes the Company’s outstanding interest-rate and foreign currency swap contracts as of March 31, 2016 (dollars and GBP in thousands): Fixed Hedge Rate/Buy Floating/Exchange Notional/ Date Entered Maturity Date Designation Amount Rate Index Sell Amount Fair Value (1) Interest rate: July 2005 (2) July 2020 Cash Flow % BMA Swap Index $ $ November 2008 (3) October 2016 Cash Flow % 1 Month LIBOR+ 1.50 % $ $ July 2012 (4) June 2016 Cash Flow % 1 Month GBP LIBOR+ 1.20 % £ $ January 2015 (4) October 2017 Cash Flow % 1 Month GBP LIBOR+ 0.975 % £ $ Foreign currency: July 2012 (5) June 2016 N/A $ Buy USD/Sell GBP £ $ January 2015 (6) October 2017 Cash Flow $ Buy USD/Sell GBP £ $ (1) Derivative assets are recorded in other assets, net and derivative liabilities are recorded in accounts payable and accrued liabilities on the consolidated balance sheets. (2) Represents three interest-rate swap contracts, which hedge fluctuations in interest payments on variable-rate secured debt due to overall changes in hedged cash flows. (3) Represents an interest-rate swap contract, which hedges fluctuations in interest payments on variable-rate secured debt due to overall changes in hedged cash flows. (4) Hedges fluctuations in interest payments on variable-rate unsecured debt due to fluctuations in the underlying benchmark interest rate. (5) Currency swap contract (buy USD/sell GBP) hedges the foreign currency exchange risk related to a portion of the Company’s forecasted interest receipts on British pound sterling (“GBP”) denominated senior notes. Represents a currency swap to sell £7.2 million at a rate of 1.5695 in June 2016. (6) Currency swap contract (buy USD/sell GBP) hedges the foreign currency exchange risk related to the Company’s forecasted GBP denominated interest receipts on its HC-One Facility. Represents a currency swap to sell approximately £1.0 million monthly at a rate of 1.5149 through October 2017. The Company uses derivative instruments to mitigate the effects of interest rate and foreign currency fluctuations on specific forecasted transactions as well as recognized financial obligations or assets. Utilizing derivative instruments allows the Company to manage the risk of fluctuations in interest and foreign currency rates related to the potential impact these changes could have on future earnings and forecasted cash flows. 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. 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 contracts, 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 March 31, 2016 , the Company does not anticipate non-performance by the counterparties to its outstanding derivative contracts. During the three months ended March 31, 2016 , the Company determined a portion of a cash flow hedge was ineffective and reclassified $0.1 million of unrealized gains related to this interest-rate swap contract into other income, net. The Company expects that the hedged forecasted transactions for each of the outstanding qualifying cash flow hedging relationships at March 31, 2016 remain probable of occurring, and as a result, no additional gains or losses recorded to accumulated other comprehensive loss are expected to be reclassified to earnings for any other outstanding hedges, other than those discussed above. To illustrate the effect of movements in the interest rate and foreign currency markets, the Company performed a market sensitivity analysis on its outstanding derivative financial instruments. The Company applied various basis point spreads to the underlying interest rate curves and foreign currency exchange rates of the derivative portfolio in order to determine the instruments’ change in fair value. The following table summarizes the results of the analysis performed (dollars in thousands): Effects of Change in Interest and Foreign Currency Rates +50 Basis -50 Basis +100 Basis -100 Basis Date Entered Maturity Date Points Points Points Points Interest rate: July 2005 July 2020 $ $ $ $ November 2008 October 2016 July 2012 June 2016 January 2015 October 2017 Foreign currency: July 2012 June 2016 January 2015 October 2017

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2016
Subsequent Events
Subsequent Events	NOTE 20. Subsequent Events In May 2016, the Company announced its intention to spin off interests in 338 properties (including 17 facility sales expected to close by the end of 2016 and potentially before completion of the spin off), primarily comprised of its HCRMC DFL investments, and its equity investment in HCRMC OpCo, into an independent, publicly-traded REIT (“SpinCo”). The spin-off is expected to be effectuated through a pro rata special distribution of SpinCo’s common shares to HCP stockholders and will be treated as a taxable transaction for U.S. federal income tax purposes. The transaction is subject to certain conditions, including the SEC declaring effective a registration statement for the SpinCo common share to be distributed, filing and approval of SpinCo to be listed on an exchange, customary third party consents, and formal approval and declaration of the distribution by the Company’s Board of Directors. The transaction is expected to be completed in the second half of 2016. The Company may, at any time and for any reason until the proposed transaction is complete, abandon the spin-off or modify or change its terms. In May 2016, the Company entered into a master contribution agreement to contribute its interests in RIDEA II to an unconsolidated joint venture owned 50.1% by HCP and 49.9% by an investor group led by Columbia Pacific Advisors, LLC (“CPA”) (the “HCP/CPA JV”). In return, the Company will receive $109 million in cash proceeds from the HCP/CPA JV, a $636 million note receivable (“Note”) and retain an approximately 40% beneficial interest in RIDEA II. This transaction, upon completion, would result in the Company deconsolidating the net assets of RIDEA II because it will not direct the activities that most significantly impact the venture. The Company further expects that the members will recapitalize RIDEA II, at which time the Company expects to receive cash proceeds in payment against the Note. The closing of these transactions are expected to occur in 2016 and remain subject to regulatory and third party approvals and other customary closing conditions.

Summary of Significant Accoun29

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
Summary of Significant Accounting Policies
Basis of Presentation	Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Management is required to make estimates and assumptions in the preparation of financial statements in conformity with 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. The consolidated financial statements include the accounts of HCP, Inc., its wholly-owned subsidiaries, joint ventures and VIEs that it controls through voting rights or other means. Intercompany transactions and balances have been eliminated upon consolidation. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary to present fairly the Company’s financial position, results of operations and cash flows have been included. Operating results for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 . The accompanying unaudited interim financial information should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2015 included in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the “SEC”).
Recent Accounting Pronouncements	Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). ASU 2016-09 is intended to simplify accounting for share-based payment transactions. The areas for simplification in this update involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statements of cash flows. ASU 2016-09 is effective for fiscal years, and interim periods within, beginning after December 15, 2016. Early adoption is permitted. The Company is evaluating the impact of the adoption of ASU 2016-09 on January 1, 2017 to its consolidated financial position, results of operations or cash flows. In March 2016, the FASB issued ASU No. 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (“ASU 2016-08”). ASU 2016-08 is intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. ASU 2016-08 is effective for fiscal years, and interim periods within, beginning after December 15, 2017. Early adoption is permitted. The Company is evaluating the impact of the adoption of ASU 2016-08 on January 1, 2018 to its consolidated financial position or results of operations. In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”). ASU 2016-02 amends the current accounting for leases to (i) require lessees to put most leases on their balance sheets, but continue recognizing expenses on their income statements in a manner similar to today’s accounting, (ii) eliminate current real estate specific lease provisions, and (iii) modify classification criteria and accounting for sales-type leases for lessors. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018. Early adoption is permitted. The Company is evaluating the impact of the adoption of ASU 2016-02 on January 1, 2019 to its consolidated financial position or results of operations. In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). This update requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. This update also simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment at each reporting period. ASU 2016-01 is effective for fiscal years, and interim periods within, beginning after December 15, 2017. Early adoption is permitted only for certain disclosure requirements. The Company is evaluating the impact of the adoption of ASU 2016-01 on January 1, 2018 to its consolidated financial position or results of operations. In September 2015, the FASB issued ASU No. 2015-16, Simplifying the Accounting for Measurement-Period Adjustments (“ASU 2015-16”). ASU 2015-16 simplifies the accounting for adjustments made to provisional amounts recognized in a business combination by requiring the acquirer to (i) recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amount is determined, (ii) record, in the same period, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date, and (iii) present separately or disclose the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. ASU 2015-16 is effective for fiscal years, and interim periods within, beginning after December 15, 2015. Early adoption is permitted. The Company adopted ASU 2015-16 on January 1, 2016; the adoption of which did not have a material impact on its consolidated financial position or results of operations. In February 2015, the FASB issued ASU No. 2015-02, Amendments to the Consolidation Analysis (“ASU 2015-02”). ASU 2015-02 requires amendments to both the VIE and voting consolidation accounting models. The amendments (i) rescind the indefinite deferral of certain aspects of accounting standards relating to consolidations and provide a permanent scope exception for registered money market funds and similar unregistered money market funds, (ii) modify (a) the identification of variable interests (fees paid to a decision maker or service provider), (b) the VIE characteristics for a limited partnership or similar entity and (c) the primary beneficiary determination under the VIE model, and (iii) eliminate the presumption within the current voting model that a general partner controls a limited partnership or similar entity. ASU 2015-02 is effective for fiscal years, and interim periods within, beginning after December 15, 2015. Early adoption is permitted. A reporting entity may apply the amendments in ASU 2015-02 using either a modified retrospective or retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption. The Company adopted ASU 2015-02 on January 1, 2016; the adoption of which did not have a material impact to its consolidated financial position or results of operations. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). This update changes the requirements for recognizing revenue. ASU 2014-09 provides guidance for revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date (“ASU 2015-14”). ASU 2015-14 defers the effective date of ASU 2014-09 by one year to fiscal years and interim periods beginning after December 15, 2017. Early adoption is permitted for annual periods, and interim periods within, beginning after December 15, 2016. The Company is evaluating the impact of the adoption of ASU 2014-09 on January 1, 2018 to its consolidated financial position or results of operations.
Reclassifications	Reclassification Certain amounts in the Company’s consolidated financial statements have been reclassified for prior periods to conform to the current period presentation. Assets held for sale and associated liabilities have been reclassified on the consolidated balance sheets (see Note 4).

Real Estate Property Investme30

Real Estate Property Investments (Tables)	3 Months Ended
	Mar. 31, 2016
Real Estate Property Investments
Schedule of real estate acquisitions (in thousands)	A summary of real estate acquisitions for the three months ended March 31, 2016 follows (in thousands): Consideration Assets Acquired (1) Liabilities Net Segment Cash Paid Assumed Real Estate Intangibles Senior housing $ $ $ $ Post-acute/skilled nursing — $ $ $ $ (1) The purchase price allocation is preliminary and may be subject to change. A summary of real estate acquisitions for the three months ended March 31, 2015 follows (in thousands): Consideration Assets Acquired Liabilities Noncontrolling Net Segment Cash Paid Assumed Interest Real Estate Intangibles Senior housing $ $ $ $ $ Medical office — — — $ $ $ $ $
Schedule of unaudited pro forma consolidated results of operations (in thousands, except per share amounts)	The following unaudited pro forma consolidated results of operations assume that the RIDEA III acquisition was completed as of January 1, 2014 (in thousands, except per share amounts): Three Months Ended March 31, 2015 Revenues $ Net loss Net loss applicable to HCP, Inc. Basic earnings per common share Diluted earnings per common share
Schedule of capital improvements (in thousands)	A summary of the Company’s funding for construction, tenant and other capital improvements (in thousands): Three Months Ended March 31, Segment 2016 2015 Senior housing $ $ Post-acute/skilled nursing — Life science Medical office Hospital — $ $

Net Investment in Direct Fina31

Net Investment in Direct Financing Leases (Tables)	3 Months Ended
	Mar. 31, 2016
Loans Receivable:
Schedule of components of net investment in DFLs (dollars in thousands)	Net investment in direct financing leases (“DFLs”) consisted of the following (dollars in thousands): March 31, December 31, 2016 2015 Minimum lease payments receivable $ $ Estimated residual values Less unearned income Net investment in direct financing leases before allowance Allowance for DFL losses Net investment in direct financing leases $ $ Properties subject to direct financing leases
Direct Financing Leases
Loans Receivable:
Summary of the Company's internal ratings for DFLs (dollars in thousands)	The following table summarizes the Company’s internal ratings for DFLs at March 31, 2016 (dollars in thousands): Carrying Percentage of Internal Ratings Segment Amount DFL Portfolio Performing DFLs Watch List DFLs Workout DFLs Senior housing $ 31 $ $ $ — Post-acute/skilled nursing 67 — — Hospital 2 — — $ 100 $ $ $ —

Loans Receivable (Tables)

Loans Receivable (Tables) - Loans receivable	3 Months Ended
	Mar. 31, 2016
Loans Receivable:
Schedule of loans receivable (in thousands)	The following table summarizes the Company’s loans receivable (in thousands): March 31, 2016 December 31, 2015 Real Estate Other Real Estate Other Secured Secured Total Secured Secured Total Mezzanine (1) (2) $ — $ $ $ — $ $ Other (2) (3) — — Unamortized discounts, fees and costs (1) $ $ $ $ $ $ (1) At March 31, 2016, included £278 million ( $400 million) outstanding and £3 million ( $5 million) of associated unamortized discounts, fees and costs. At December 31, 2015, included £273 million ( $403 million) outstanding and £4 million ( $5 million) of associated unamortized discounts, fees and costs. (2) At March 31, 2016 , the Company had £43 million ( $62 million) remaining under its commitments to fund development projects and capital expenditures under its United Kingdom (“U.K.”) development projects. (3) At March 31, 2016, the Company had $2 million remaining of commitments to fund development projects and capital expenditures under the senior housing development loan program.
Summary of the Company's internal ratings for loans receivable (dollars in thousands)	The following table summarizes the Company’s internal ratings for loans receivable at March 31, 2016 (dollars in thousands): Carrying Percentage of Internal Ratings Investment Type Amount Loan Portfolio Performing Loans Watch List Loans Workout Loans Real estate secured $ 15 $ $ — $ — Other secured 85 — — $ 100 $ $ — $ —

Investments in and Advances t33

Investments in and Advances to Unconsolidated Joint Ventures (Tables)	3 Months Ended
	Mar. 31, 2016
Investments in and Advances to Unconsolidated Joint Ventures
Company owned interests in entities, accounted under equity method (dollars in thousands)	The Company owns interests in the following entities that are accounted for under the equity method at March 31, 2016 (dollars in thousands): Entity (1) Segment Carrying Amount Ownership% CCRC JV (2) Senior housing $ 49 HCRMC (3) Senior housing and post-acute/skilled nursing — 9 MBK JV (4) Senior housing 50 HCP Ventures III, LLC Medical office 30 HCP Ventures IV, LLC Medical office and hospital 20 HCP Life Science (5) Life science – 63 Vintage Park Development JV Senior housing 85 MBK Development JV (4) Senior housing 50 Suburban Properties, LLC Medical office 67 K&Y (6) Post-acute/skilled nursing 8 0 Advances to unconsolidated joint ventures, net and other $ (1) These entities are not consolidated because the Company does not control, through voting rights or other means, the joint ventures. (2) Includes two unconsolidated joint ventures in a RIDEA structure (CCRC PropCo and CCRC OpCo). (3) In December 2014, September 2015 and December 2015, the Company recognized impairment charges of $36 million, $27 million and $19 million, respectively. (4) Includes two unconsolidated joint ventures in a RIDEA structure (PropCo and OpCo). (5) Includes three unconsolidated joint ventures between the Company and an institutional capital partner. HCP Life Science includes the following partnerships (and the Company’s ownership percentage): (i) Torrey Pines Science Center, LP ( 50% ); (ii) Britannia Biotech Gateway, LP ( 55% ); and (iii) LASDK, LP ( 63% ). (6) Includes three unconsolidated joint ventures.
Summarized combined financial information for equity method investments (in thousands)	Summarized combined financial information for the Company’s equity method investments (in thousands): March 31, December 31, 2016 2015 Real estate, net $ $ Goodwill and other assets, net Assets held for sale Total assets $ $ Capital lease obligations and mortgage debt $ $ Accounts payable Liabilities and mortgage debt held for sale Other partners’ capital HCP’s capital (1) Total liabilities and partners’ capital $ $ (1) The combined basis difference of the Company’s investments in these joint ventures of $35 million, as of March 31, 2016 , is attributable to goodwill, real estate, capital lease obligations, deferred tax assets and lease-related net intangibles. Three Months Ended March 31, 2016 2015 Total revenues $ $ Income (loss) from discontinued operations Net (loss) income HCP’s share of earnings (1) Fees earned by HCP Distributions received by HCP (1) The Company’s joint venture interest in HCRMC is accounted for using the equity method and results in an elimination of DFL income proportional to HCP’s ownership in HCRMC. The elimination of the respective proportional lease expense at the HCRMC level in substance resulted in $16 million of DFL income that was recharacterized to the Company’s share of earnings from HCRMC (equity income from unconsolidated joint ventures) for the three months ended March 31, 2015 . Beginning in January 2016, income will be recognized only if cash distributions are received from HCRMC; as a result, the Company no longer recharacterizes (eliminates) its proportional ownership share of income from DFLs to equity income (loss) from unconsolidated joint ventures.

Other Assets (Tables)

Other Assets (Tables)	3 Months Ended
	Mar. 31, 2016
Other Assets
Schedule of other assets (in thousands)	A summary of the Company’s other assets (in thousands): March 31, December 31, 2016 2015 Straight-line rent receivables, net of allowance of $33,012 and $33,648 , respectively $ $ Marketable debt securities, net Leasing costs and inducements, net Goodwill Other Total other assets $ $

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2016
Debt
Summary of senior notes issuances (dollars in thousands)	The following table summarizes the Company’s senior unsecured notes issuances for the periods presented (dollars in thousands): Issuance Period Amount Coupon Rate Maturity Date Net Proceeds Year ended December 31, 2015: January 21, 2015 $ % $ May 20, 2015 $ % $ December 1, 2015 $ % $
Summary of senior notes payoffs (dollars in thousands)	The following table summarizes the Company’s senior unsecured notes payoffs for the periods presented (dollars in thousands): Period Amount Coupon Rate Three months ended March 31, 2016: February 1, 2016 $ % Year ended December 31, 2015: March 1, 2015 $ % June 8, 2015 $ %
Summary of stated debt maturities and scheduled principal repayments (in thousands)	The following table summarizes the Company’s stated debt maturities and scheduled principal repayments at March 31, 2016 , (in thousands): Senior Bank Line of Unsecured Mortgage Year Credit (1) Term Loans (2) Notes (3) Debt (4) Total (5) 2016 (nine months) $ — $ $ $ $ 2017 — — 2018 — 2019 — 2020 — — Thereafter — — Discounts, net — $ $ $ $ $ (1) Includes £275 million ( $395 million) translated into U.S. dollars (“USD”). (2) Represents £357 million translated into USD. (3) Interest rates on senior unsecured notes ranged from 2.79% to 6.88% with a weighted average effective interest rate of 4.72% and a weighted average maturity of six years. (4) Interest rates on the mortgage debt ranged from 3.11% to 8.35% with a weighted average effective interest rate of 6.22% and a weighted average maturity of two years. (5) Excludes $ 95 million of other debt that represents Life Care Bonds and Demand Notes that have no scheduled maturities.

Equity (Tables)

Equity (Tables)	3 Months Ended
	Mar. 31, 2016
Equity
Schedule of common stock, cash dividends	Amount Dividend Declaration Date Record Date Per Share Payable Date January 28 February 8 $ February 23 April 27 May 9 May 24
Schedule of company's other common stock activities (shares in thousands)	The following is a summary of the Company’s other common stock activities (shares in thousands): Three Months Ended March 31, 2016 2015 Dividend Reinvestment and Stock Purchase Plan Conversion of DownREIT units (1) Exercise of stock options Vesting of restricted stock units Repurchase of common stock (1) Non-managing member limited liability company (“LLC”) units.
Schedule of accumulated other comprehensive loss (in thousands)	The following is a summary of the Company’s accumulated other comprehensive loss (in thousands): March 31, December 31, 2016 2015 Cumulative foreign currency translation adjustment $ $ Unrealized losses on cash flow hedges, net Supplemental Executive Retirement Plan minimum liability Unrealized (losses) gains on available for sale securities Total accumulated other comprehensive loss $ $

Segment Disclosures (Tables)

Segment Disclosures (Tables)	3 Months Ended
	Mar. 31, 2016
Segment Disclosures
Summary financial information of reportable segment (in thousands)	Summary information for the reportable segments (in thousands): For the three months ended March 31, 2016 : Senior Post-acute/ Life Medical Housing Skilled Nursing Science Office Hospital Total Rental revenues (1) $ $ $ $ $ $ Resident fees and services — — — — Operating expenses NOI Non-cash adjustments to NOI (2) Adjusted (cash) NOI Adjusted (cash) NOI from unconsolidated joint ventures — Interest income — — — Portfolio Income $ $ $ $ $ Addback non-cash adjustments Investment management fee income Interest expense Depreciation and amortization General and administrative expenses Acquisition and pursuit costs Other income, net Income tax expense Equity loss in unconsolidated joint ventures, excluding adjusted (cash) NOI Net income $ For the three months ended March 31, 2015 : Senior Post-acute/ Life Medical Housing Skilled Nursing Science Office Hospital Total Rental revenues (1) $ $ $ $ $ $ Resident fees and services — — — — Operating expenses NOI Non-cash adjustments to NOI (2) Adjusted (cash) NOI Adjusted (cash) NOI from unconsolidated joint ventures — — Interest income — — — Portfolio Income $ $ $ $ $ Addback non-cash adjustments Investment management fee income Interest expense Depreciation and amortization General and administrative expenses Acquisition and pursuit costs Impairment Gain on sales of real estate Other income, net Income tax benefit Equity loss in unconsolidated joint ventures, excluding adjusted (cash) NOI Net loss $ (1) Represents rental and related revenues, tenant recoveries and income from DFLs. (2) Represents straight-line rents, DFL non-cash interest, amortization of market lease intangibles and lease termination fees.
Reconciliation of company's assets to total assets (in thousands)	A summary of the Company’s total assets by segment (in thousands): March 31, December 31, Segment 2016 2015 Senior housing $ $ Post-acute/skilled nursing Life science Medical office Hospital Gross segment assets Accumulated depreciation and amortization Net segment assets Real estate assets held for sale, net Other non-segment assets Total assets $ $

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	3 Months Ended
	Mar. 31, 2016
Earnings Per Common Share
Computation of basic and diluted earnings per share (in thousands, except per share amounts)	The following table illustrates the computation of basic and diluted earnings per share (in thousands, except per share amounts): Three Months Ended March 31, 2016 2015 Numerator Net income (loss) $ $ Noncontrolling interests’ share in earnings Net income (loss) attributable to HCP, Inc. Participating securities’ share in earnings Net income (loss) applicable to common shares $ $ Denominator Basic weighted average common shares Dilutive potential common shares — Diluted weighted average common shares Earnings per common share Basic $ $ Diluted $ $

Supplemental Cash Flow Inform39

Supplemental Cash Flow Information (Tables)	3 Months Ended
	Mar. 31, 2016
Supplemental Cash Flow Information
Supplemental cash flow information (in thousands)	The following table provides supplemental cash flow information (in thousands): Three Months Ended March 31, 2016 2015 Supplemental cash flow information: Interest paid, net of capitalized interest $ $ Income taxes paid Capitalized interest Supplemental schedule of non-cash investing activities: Accrued construction costs Settlement of HCRMC Tranche A DRO as consideration for DFL acquisition — Tenant funded tenant improvements owned by HCP Supplemental schedule of non-cash financing activities: Vesting of restricted stock units Conversion of non-managing member units into common stock Noncontrolling interest issued in connection with real estate acquisitions — Other liabilities assumed with real estate acquisitions Unrealized (losses) gains on available-for-sale securities and derivatives designated as cash flow hedges, net

Variable Interest Entities (Tab

Variable Interest Entities (Tables)	3 Months Ended
	Mar. 31, 2016
Variable Interest Entities
Schedule of Variable Interest Entities (in thousands)	Maximum Loss Carrying VIE Type Exposure (1) Asset/Liability Type Amount HCRMC $ Net investment in DFLs and investments in unconsolidated joint ventures $ VIE tenants—DFLs Net investment in DFLs VIE tenants—operating leases Lease intangibles, net and straight-line rent receivables CCRC OpCo Investments in unconsolidated joint ventures Four Seasons Loans and marketable debt securities Vintage Park Development JV Investments in unconsolidated joint ventures CMBS and LLC investments Marketable debt and cost method investments (1) The Company’s maximum loss exposure related to HCRMC, VIE tenants, CCRC OpCo, Vintage Park Development JV, loan and marketable debt securities, and LLC investments to VIE borrowers represents the aggregate carrying amount of such investments (including accrued interest). The Company’s maximum loss exposure may be mitigated by re-leasing the underlying properties to new tenants upon an event of default.

Concentration of Credit Risk (T

Concentration of Credit Risk (Tables)	3 Months Ended
	Mar. 31, 2016
Summary of consolidated financial information (in millions)	March 31, December 31, 2016 2015 Real estate and other property, net $ $ Cash and cash equivalents Goodwill, intangible and other assets, net Total assets $ $ Debt and financing obligations $ $ Accounts payable, accrued liabilities and other Total equity Total liabilities and equity $ $ Three Months Ended March 31, 2016 2015 Revenues $ $ Operating, general and administrative expense Depreciation and amortization expense Interest expense Other income, net Gain on disposal of assets — (Loss) income from continuing operations before income tax (expense) benefit Income tax benefit (expense) (Loss) income from continuing operations Income from discontinued operations, net of taxes Net (loss) income $ $
Tenants and Operators
Schedule of concentration of credit risk	Percentage of Percentage of Total Company Gross Assets Total Company Revenues March 31, December 31, Three Months Ended March 31, Operators 2016 2015 2016 2015 HCRMC % % % % Brookdale % % % %
Senior housing | Tenants and Operators
Schedule of concentration of credit risk	Percentage of Percentage of Senior Housing Gross Assets Senior Housing Revenues March 31, December 31, Three Months Ended March 31, Operators 2016 2015 2016 2015 Brookdale % % % % HCRMC % % % %
Post-acute/skilled | Tenants and Operators
Schedule of concentration of credit risk	Percentage of Post-Acute/ Percentage of Post-Acute/ Skilled Nursing Gross Assets Skilled Nursing Revenues March 31, December 31, Three Months Ended March 31, Operators 2016 2015 2016 2015 HCRMC % % % %

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2016
Fair Value Measurements
Fair value measurements of financial assets and liabilities (in thousands)	The following table illustrates the Company’s financial assets and liabilities measured at fair value on a recurring basis at March 31, 2016 in the consolidated balance sheets (in thousands): Financial Instrument (1) Fair Value Level 1 Level 2 Level 3 Marketable equity securities $ $ $ — $ — Interest-rate swap liabilities — — Currency swap assets — — Warrants — — (1) Interest-rate and currency swaps, as well as common stock warrant fair values, are determined based on observable and unobservable market assumptions utilizing standardized derivative pricing models.
Summary of the carrying values and fair values of financial instruments (in thousands)	The table below summarizes the carrying values and fair values of the Company’s financial instruments (in thousands): March 31, 2016 December 31, 2015 Carrying Carrying Value Fair Value Value Fair Value Loans receivable, net (2) $ $ $ $ Marketable debt securities (2) Marketable equity securities (1) Warrants (3) Bank line of credit (2) Term loans (2) Senior unsecured notes (1) Mortgage debt (2) Other debt (2) Interest-rate swap assets (2) — — Interest-rate swap liabilities (2) Currency swap assets (2) (1) Level 1: Fair value calculated based on quoted prices in active markets. (2) Level 2: Fair value based on quoted prices for similar or identical instruments in active or inactive markets, respectively, or calculated utilizing standardized pricing models in which significant inputs or value drivers are observable in active markets. (3) Level 3: Fair value determined based on significant unobservable market inputs using standardized derivative pricing models.

Derivative Financial Instrume43

Derivative Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2016
Derivative Financial Instruments
Schedule of derivative instruments (dollars and GBP in thousands)	The following table summarizes the Company’s outstanding interest-rate and foreign currency swap contracts as of March 31, 2016 (dollars and GBP in thousands): Fixed Hedge Rate/Buy Floating/Exchange Notional/ Date Entered Maturity Date Designation Amount Rate Index Sell Amount Fair Value (1) Interest rate: July 2005 (2) July 2020 Cash Flow % BMA Swap Index $ $ November 2008 (3) October 2016 Cash Flow % 1 Month LIBOR+ 1.50 % $ $ July 2012 (4) June 2016 Cash Flow % 1 Month GBP LIBOR+ 1.20 % £ $ January 2015 (4) October 2017 Cash Flow % 1 Month GBP LIBOR+ 0.975 % £ $ Foreign currency: July 2012 (5) June 2016 N/A $ Buy USD/Sell GBP £ $ January 2015 (6) October 2017 Cash Flow $ Buy USD/Sell GBP £ $ (1) Derivative assets are recorded in other assets, net and derivative liabilities are recorded in accounts payable and accrued liabilities on the consolidated balance sheets. (2) Represents three interest-rate swap contracts, which hedge fluctuations in interest payments on variable-rate secured debt due to overall changes in hedged cash flows. (3) Represents an interest-rate swap contract, which hedges fluctuations in interest payments on variable-rate secured debt due to overall changes in hedged cash flows. (4) Hedges fluctuations in interest payments on variable-rate unsecured debt due to fluctuations in the underlying benchmark interest rate. (5) Currency swap contract (buy USD/sell GBP) hedges the foreign currency exchange risk related to a portion of the Company’s forecasted interest receipts on British pound sterling (“GBP”) denominated senior notes. Represents a currency swap to sell £7.2 million at a rate of 1.5695 in June 2016. (6) Currency swap contract (buy USD/sell GBP) hedges the foreign currency exchange risk related to the Company’s forecasted GBP denominated interest receipts on its HC-One Facility. Represents a currency swap to sell approximately £1.0 million monthly at a rate of 1.5149 through October 2017.
Schedule of effect of change in interest and foreign currency rate (dollars in thousands)	The following table summarizes the results of the analysis performed (dollars in thousands): Effects of Change in Interest and Foreign Currency Rates +50 Basis -50 Basis +100 Basis -100 Basis Date Entered Maturity Date Points Points Points Points Interest rate: July 2005 July 2020 $ $ $ $ November 2008 October 2016 July 2012 June 2016 January 2015 October 2017 Foreign currency: July 2012 June 2016 January 2015 October 2017

Real Estate Property Investme44

Real Estate Property Investments (Details) $ / shares in Units, $ in Thousands	Jun. 30, 2015USD ($)	Mar. 29, 2015USD ($)	May. 31, 2016USD ($)propertyitem	Jun. 30, 2015USD ($)propertyitem	Mar. 31, 2016USD ($)	Mar. 31, 2015USD ($)$ / shares
Acquisition
Net termination fee revenue						$ 1,103
Real estate acquisitions
Consideration, Cash Paid					$ 94,271	34,248
Consideration, Liabilities assumed					1,200	626
Consideration, Noncontrolling Interest						1,306
Assets Acquired, Real Estate					88,471	34,530
Assets Acquired, Net Intangibles					7,000	1,650
Funding for construction, tenant and other capital improvements					109,503	64,793
Senior housing
Real estate acquisitions
Consideration, Cash Paid					76,362	34,068
Consideration, Liabilities assumed					1,200	626
Consideration, Noncontrolling Interest						1,306
Assets Acquired, Real Estate					71,875	34,350
Assets Acquired, Net Intangibles					5,687	1,650
Funding for construction, tenant and other capital improvements					39,513	16,172
Post-acute/skilled
Real estate acquisitions
Consideration, Cash Paid					17,909
Assets Acquired, Real Estate					16,596
Assets Acquired, Net Intangibles					1,313
Funding for construction, tenant and other capital improvements						1,960
Aggregate purchase price		$ 275,000			275,000
Life science
Real estate acquisitions
Funding for construction, tenant and other capital improvements					39,070	27,391
Medical office
Real estate acquisitions
Consideration, Cash Paid						180
Assets Acquired, Real Estate						180
Funding for construction, tenant and other capital improvements					$ 30,920	19,233
Hospital
Real estate acquisitions
Funding for construction, tenant and other capital improvements						37
RIDEA III
Acquisition
Assets Acquired, Working Capital	$ 7,000			$ 7,000
Net termination fee revenue	8,000
Stabilized occupancy rate (as a percent)					80.00%
Unaudited pro forma consolidated results of operations
Revenues						654,354
Net (loss) income						(233,598)
Net (loss) income applicable to HCP, Inc.						$ (237,099)
Basic earnings per common share (in dollars per share) | $ / shares						$ (0.51)
Diluted earnings per common share (in dollars per share) | $ / shares						$ (0.51)
Real estate acquisitions
Consideration, Cash Paid	770,000
Consideration, Liabilities assumed	32,000			32,000
Consideration, Noncontrolling Interest	29,000			29,000
Assets Acquired, Real Estate	771,000			771,000
Assets Acquired, Net Intangibles	$ 53,000			$ 53,000
RIDEA III | Subsequent event
Acquisition
Number of facilities acquired | property			7
Number of Units Acquired | item			526
Real estate acquisitions
Consideration, Liabilities assumed			$ 75,000
Aggregate purchase price			$ 190,000
Stated interest rate (as a percent)			4.00%
Parent ownership percentage (as a percent)			100.00%
RIDEA III | Brookdale JV
Acquisition
Number of individual leases | property				2
Number of Units Acquired | item				5,025
Noncontrolling interest (as a percent)					10.00%
Management Agreement Term					7 years
RIDEA III | Senior housing | Brookdale JV
Acquisition
Number of facilities acquired | property				35

Dispositions of Real Estate (De

Dispositions of Real Estate (Details) $ in Thousands	1 Months Ended	3 Months Ended
	Apr. 30, 2016USD ($)	Mar. 31, 2015USD ($)property	Mar. 31, 2016USD ($)item	Dec. 31, 2015USD ($)item
Dispositions of Real Estate
Real estate assets held for sale, net			$ 311,243	$ 314,126
Senior housing
Dispositions of Real Estate
Number of properties disposed | property		8
Total consideration for disposition of real estate		$ 51,000
Life science
Dispositions of Real Estate
Number of properties classified as held for sale | item			4	4
Real estate assets held for sale, net			$ 43,000
Life science | Subsequent event
Dispositions of Real Estate
Total consideration for disposition of real estate	$ 74,000

Net Investment in Direct Fina46

Net Investment in Direct Financing Leases (Details) $ in Thousands	Apr. 01, 2016	Apr. 01, 2015	Mar. 29, 2015USD ($)property	May. 31, 2016facility	Dec. 31, 2015USD ($)property	Mar. 31, 2015USD ($)	Mar. 31, 2016USD ($)property	Dec. 31, 2015USD ($)property	Mar. 31, 2015USD ($)property	Dec. 31, 2015USD ($)property	Dec. 31, 2011USD ($)property	May. 09, 2016property	Sep. 30, 2015USD ($)	Feb. 28, 2015USD ($)	Sep. 30, 2013item
Net Investment in Direct Financing Leases
Minimum lease payments receivable					$ 26,283,392		$ 26,044,849	$ 26,283,392		$ 26,283,392
Estimated residual values					3,900,679		3,930,300	3,900,679		3,900,679
Less unearned income					(23,462,022)		(23,300,899)	(23,462,022)		(23,462,022)
Net investment in direct financing leases before allowance					6,722,049		6,674,250	6,722,049		6,722,049
Allowance for DFL losses					(817,040)		(817,040)	(817,040)		(817,040)
Net investment in direct financing leases					$ 5,905,009		$ 5,857,210	$ 5,905,009		$ 5,905,009
Properties subject to direct financing leases | property					348		340	348		348
DFL income							$ 127,968		$ 167,078
Number of facility sales closed | property							11			22		33
Sales price							$ 62,000			$ 219,000
Percentage of DFL Portfolio							100.00%
Subsequent event
Net Investment in Direct Financing Leases
Number of non-strategic assets involved in sales transaction | facility				17
HCRMC
Net Investment in Direct Financing Leases
Net investment in direct financing leases					$ 5,200,000	$ 6,100,000		$ 5,200,000	$ 6,100,000	5,200,000			$ 6,000,000	$ 6,600,000
Number of Facilities Acquired | property											334
Number of non-strategic assets involved in sales transaction | property									50
Annual rent reduction on sold properties, as a percent of the sales proceeds									7.75%
Reduction in initial net annual rent due to lease amendment			$ 68,000
Annual rent under Master Agreement							$ 473,000		$ 541,000
Minimum rent escalation during the initial term (as a percent)	3.00%
Increase in Rent, first two years (as a percent)			3.50%
Increase in Rent, afterwards (as a percent)			3.00%
Period of extension of initial term of lease		5 years
Average lease term		16 years
Deferred lease obligation							525,000
Expected Annual Rent							19,000
Impairment charges related to investments in DFLs						$ 478,000		817,000
Federal and state built-in gain tax from assets sold											$ 2,000,000
Federal and state built-in gain tax from assets sold, term											10 years
Federal built-in gain tax from assets sold, federal term					5 years
State built-in gain from assets sold							49,000
Direct Financing Lease Tranche A [Member] | HCRMC
Net Investment in Direct Financing Leases
Deferred lease obligation							$ 275,000
Direct Financing Lease Rental Factor, first period (as a percent)							6.90%
Expected Annual Rent							$ 19,000
Direct Financing Lease Tranche B [Member] | HCRMC
Net Investment in Direct Financing Leases
Deferred lease obligation							$ 250,000
Direct Financing Lease Rental Factor, first period (as a percent)							3.00%
Direct Financing Lease Rental Factor, second period (as a percent)							4.00%
Direct Financing Lease Rental Factor, third period (as a percent)							5.00%
Direct Financing Lease Rental Factor, fourth period (as a percent)							6.00%
Direct Financing Leases
Net Investment in Direct Financing Leases
DFL income							$ 3,000		4,000
Cash payments received							4,000		5,000
Performing Loans
Net Investment in Direct Financing Leases
Net investment in direct financing leases							385,656
Watch List Loans
Net Investment in Direct Financing Leases
Net investment in direct financing leases							5,471,554
Senior housing
Net Investment in Direct Financing Leases
Net investment in direct financing leases							$ 1,794,409
Percentage of DFL Portfolio							31.00%
Senior housing | Direct Financing Leases
Net Investment in Direct Financing Leases
Net investment in direct financing leases					$ 366,000		$ 364,000	366,000		366,000
Properties subject to direct financing leases | item															14
Senior housing | Performing Loans
Net Investment in Direct Financing Leases
Net investment in direct financing leases							261,765
Senior housing | Watch List Loans
Net Investment in Direct Financing Leases
Net investment in direct financing leases							1,532,644
Post-acute/skilled
Net Investment in Direct Financing Leases
Net investment in direct financing leases							3,938,910
Number of Facilities | property			9
Acquisition of facility			$ 275,000				$ 275,000
Percentage of DFL Portfolio							67.00%
Post-acute/skilled | Watch List Loans
Net Investment in Direct Financing Leases
Net investment in direct financing leases							$ 3,938,910
Hospital
Net Investment in Direct Financing Leases
Net investment in direct financing leases							$ 123,891
Percentage of DFL Portfolio							2.00%
Hospital | Performing Loans
Net Investment in Direct Financing Leases
Net investment in direct financing leases							$ 123,891
HCRMC
Net Investment in Direct Financing Leases
Net investment in direct financing leases					5,200,000		5,100,000	5,200,000		5,200,000
Carrying value, equity method investments					$ 0			$ 0		$ 0
DFL accretion									21,000
DFL income							113,000		152,000
Cash payments received							$ 113,000		$ 131,000

Loans Receivable (Details)

Loans Receivable (Details) $ in Thousands, £ in Millions	3 Months Ended
	Mar. 31, 2016GBP (£)	Mar. 31, 2016USD ($)	Mar. 31, 2016USD ($)	Dec. 31, 2015GBP (£)	Dec. 31, 2015USD ($)
Loans Receivable:
Mezzanine			$ 657,235		$ 660,138
Mezzanine	£ 278		400,000	£ 273	403,000
Loans receivable, other			116,818		114,322
Unamortized premiums (discounts), fees and costs			(5,157)		(5,717)
Unamortized premiums (discounts), fees and costs	3		5,000	£ 4	5,000
Loans receivable, net			$ 768,896		768,743
Remaining commitments to fund development projects	£ 43	$ 62,000
Percentage of Loan Portfolio	100.00%		100.00%
Performing Loans
Loans Receivable:
Loans receivable, net			$ 768,896
Real Estate Secured
Loans Receivable:
Loans receivable, other			116,818		114,322
Unamortized premiums (discounts), fees and costs			826		961
Loans receivable, net			$ 117,644		115,283
Remaining commitments to fund development projects		$ 2,000
Percentage of Loan Portfolio	15.00%		15.00%
Real Estate Secured | Performing Loans
Loans Receivable:
Loans receivable, net			$ 117,644
Other Secured
Loans Receivable:
Mezzanine			657,235		660,138
Unamortized premiums (discounts), fees and costs			(5,983)		(6,678)
Loans receivable, net			$ 651,252		$ 653,460
Percentage of Loan Portfolio	85.00%		85.00%
Other Secured | Performing Loans
Loans Receivable:
Loans receivable, net			$ 651,252

Loans Receivable - Other Secure

Loans Receivable - Other Secured Loans (Details) $ in Thousands

1 Months Ended

3 Months Ended

12 Months Ended

Dec. 31, 2015GBP (£)

Sep. 30, 2015GBP (£)property

Apr. 30, 2015GBP (£)property

Feb. 28, 2015GBP (£)

Feb. 28, 2015USD ($)

Nov. 30, 2014GBP (£)propertyitem

Nov. 30, 2014USD ($)propertyitem

Mar. 31, 2016USD ($)property

Dec. 31, 2015GBP (£)

Dec. 31, 2015USD ($)

Dec. 31, 2015USD ($)

May. 31, 2015USD ($)

Feb. 28, 2015USD ($)

Jun. 30, 2013USD ($)

Jul. 31, 2012USD ($)

Jun. 30, 2012GBP (£)

Loans Receivable:

Loans receivable, other

$ 116,818

$ 114,322

Amount draw on the revolving line of credit facility

422,897

Loan amount outstanding

$ 810,313

397,432

NHP[Member]

Loans Receivable:

Number of facilities | property

273

273

Number of beds acquired | item

12,500

12,500

HC-One Facility

Loans Receivable:

Number of facilities | property

36

Loan facility maximum

£ 502,000,000

£ 395,000,000

$ 795,000

Amount draw on the revolving line of credit facility

£ 363,000,000

$ 574,000

Term of facility

5 years

5 years

Increase in loan facility

£ 11,000,000

£ 108,000,000

$ 164,000

Amount of facility converted into sale-leaseback transaction | £

£ 174,000,000

Paydowns received | £

£ 34,000,000

Non-call period shortened

17 months

Number of properties spinoff into a separate joint venture | property

36

36

Term to retain security over the spinoff properties

2 years

Cash payments received from borrower

£ 34,000,000

$ 52,000

Loan amount outstanding

$ 395,000

Tandem Health Care Loan

Loans Receivable:

Loan facility maximum

$ 205,000

Loans receivable, other

$ 256,000

Loan receivable, interest rate payable (as a percent)

11.50%

Loan receivable subordinated to senior mortgage debt

$ 380,000

Tandem Health Care Loan - First Tranche

Loans Receivable:

Loans receivable, other

$ 100,000

Loan receivable, interest rate payable (as a percent)

12.00%

Tandem Health Care Loan - Second Tranche

Loans Receivable:

Loans receivable, other

$ 102,000

Loan receivable, interest rate payable (as a percent)

14.00%

Tandem Health Care Loan Third Tranche [Member]

Loans Receivable:

Loans receivable, other

$ 50,000

Loan receivable, interest rate payable (as a percent)

6.00%

Tandem Health Care Loan Fourth Tranche [Member]

Loans Receivable:

Loans receivable, other

$ 5,000

Loan receivable, interest rate payable (as a percent)

6.00%

Four Seasons

Loans Receivable:

Marketable debt security, par value

£ 28,000,000

28,000,000

$ 42,000

£ 138,500,000

Marketable debt security, issued and outstanding | £

£ 40,000,000

£ 40,000,000

Four Seasons | LIBOR

Loans Receivable:

Loan, basis spread on variable rate

6.00%

Investments in and Advances t49

Investments in and Advances to Unconsolidated Joint Ventures - Equity Method Investments (Details) $ in Thousands	1 Months Ended			3 Months Ended
	Dec. 31, 2015USD ($)	Sep. 30, 2015USD ($)	Dec. 31, 2014USD ($)	Mar. 31, 2016USD ($)item	Mar. 30, 2015
Company owned interests in entities, accounted under equity method:
Investments in and advances to unconsolidated joint ventures	$ 605,244			$ 608,665
Number of unconsolidated joint ventures | item				4
CCRC JV | Senior housing
Company owned interests in entities, accounted under equity method:
Number of unconsolidated joint ventures | item				2
CCRC JV | Senior housing
Company owned interests in entities, accounted under equity method:
Investments in and advances to unconsolidated joint ventures				$ 462,545
Investment ownership percentage				49.00%
HCRMC
Company owned interests in entities, accounted under equity method:
Other than temporary impairment charge	$ 19,000	$ 27,000	$ 36,000
HCRMC | Post-acute/skilled
Company owned interests in entities, accounted under equity method:
Investment ownership percentage				9.00%
MBK JV and MBK Development JV | Senior housing
Company owned interests in entities, accounted under equity method:
Number of unconsolidated joint ventures | item				2
MBK JV | Senior housing
Company owned interests in entities, accounted under equity method:
Investments in and advances to unconsolidated joint ventures				$ 43,384
Investment ownership percentage				50.00%	50.00%
MBK Development JV | Senior housing
Company owned interests in entities, accounted under equity method:
Investments in and advances to unconsolidated joint ventures				$ 2,470
Investment ownership percentage				50.00%
HCP Ventures III, LLC | Medical office
Company owned interests in entities, accounted under equity method:
Investments in and advances to unconsolidated joint ventures				$ 9,342
Investment ownership percentage				30.00%
HCP Ventures IV | Hospital and medical office segments
Company owned interests in entities, accounted under equity method:
Investments in and advances to unconsolidated joint ventures				$ 7,236
Investment ownership percentage				20.00%
HCP Life Science | Life science
Company owned interests in entities, accounted under equity method:
Investments in and advances to unconsolidated joint ventures				$ 68,688
Number of unconsolidated joint ventures | item				3
HCP Life Science | Life science | Minimum
Company owned interests in entities, accounted under equity method:
Investment ownership percentage				50.00%
HCP Life Science | Life science | Maximum
Company owned interests in entities, accounted under equity method:
Investment ownership percentage				63.00%
Torrey Pines Science Center, LP | Life science
Company owned interests in entities, accounted under equity method:
Investment ownership percentage				50.00%
Britannia Biotech Gateway, LP | Life science
Company owned interests in entities, accounted under equity method:
Investment ownership percentage				55.00%
LASDK, LP | Life science
Company owned interests in entities, accounted under equity method:
Investment ownership percentage				63.00%
Vintage Park Development JV | Senior housing
Company owned interests in entities, accounted under equity method:
Investments in and advances to unconsolidated joint ventures				$ 8,593
Investment ownership percentage				85.00%
Suburban Properties, LLC | Medical office
Company owned interests in entities, accounted under equity method:
Investments in and advances to unconsolidated joint ventures				$ 4,614
Investment ownership percentage				67.00%
K&Y | Post-acute/skilled
Company owned interests in entities, accounted under equity method:
Investments in and advances to unconsolidated joint ventures				$ 1,270
Investment ownership percentage				80.00%
Advances to unconsolidated joint ventures, net
Company owned interests in entities, accounted under equity method:
Investments in and advances to unconsolidated joint ventures				$ 523

Investments in and Advances t50

Investments in and Advances to Unconsolidated Joint Ventures - Combined Financial Information for the unconsolidated joint ventures(Details) $ in Thousands	Sep. 25, 2015USD ($)item	Mar. 30, 2015USD ($)property	Dec. 31, 2015USD ($)	Sep. 30, 2015USD ($)	Dec. 31, 2014USD ($)	Mar. 31, 2016USD ($)property	Mar. 31, 2015USD ($)property
Summarized combined financial information for equity method investments:
Real estate, net			$ 4,470,249			$ 4,471,115
Goodwill and other assets, net			4,935,343			4,921,705
Assets held for sale			94,866			70,584
Total assets			9,500,458			9,463,404
Capital lease obligations and mortgage debt			6,575,531			6,526,878
Accounts payable			1,111,350			1,147,155
Liabilities and mortgage debt held for sale			6,318			4,941
Other partners' capital			1,163,501			1,140,381
HCP's capital			643,758			644,049
Total liabilities and partners' capital			9,500,458			9,463,404
Combined basis difference						35,000
Total revenues						1,089,911	$ 1,146,468
Income (loss) from discontinued operations						1,997	(2,650)
Net (loss) income						(12,014)	9,783
HCP's share of earnings						(908)	13,601
Fees earned by HCP						91	460
Distributions received by HCP						$ 6,925	2,181
MBK Development JV
Subsequent Events
Payment to acquire land	$ 3,000
Number of units to be built | item	74
HCRMC
Subsequent Events
Other than temporary impairment charge			$ 19,000	$ 27,000	$ 36,000
HCRMC | Post-acute/skilled
Summarized combined financial information for equity method investments:
Recharacterized DFL income to equity income							$ 16,000
Subsequent Events
Investment ownership percentage						9.00%
MBK JV
Subsequent Events
Debt related to retirement communities or properties contributed		$ 78,000
MBK JV | Senior housing
Subsequent Events
Investment ownership percentage		50.00%				50.00%
Cash contributed		$ 27,000
Number of retirement communities | property							3
MBK JV | Senior housing | MBK
Subsequent Events
Number of retirement communities contributed to joint venture | property		3				3
Fair value of retirement communities or properties contributed		$ 126,000

Intangibles (Details)

Intangibles (Details) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Intangibles
Gross intangible lease assets	$ 988	$ 984
Intangible assets, accumulated depreciation and amortization	403	380
Gross intangible lease liabilities	156	156
Intangible liabilities, accumulated depreciation and amortization	$ 103	$ 100

Other Assets (Details)

Other Assets (Details) $ in Thousands	1 Months Ended				3 Months Ended	12 Months Ended
	Sep. 30, 2015USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2012GBP (£)	Jun. 30, 2012USD ($)	Mar. 31, 2016USD ($)item	Dec. 31, 2015GBP (£)	Dec. 31, 2015USD ($)	Dec. 31, 2015USD ($)
Other assets
Straight-line rent receivables, net of allowance of $33,012 and $33,648, respectively					$ 377,464			$ 370,296
Allowance on straight-line rent receivables					33,012			33,648
Marketable debt securities, net					100,915			102,958
Leasing costs and inducements, net					157,443			158,708
Goodwill					50,346			50,346
Other					131,111			119,965
Total other assets					817,279			802,273
Loans receivables					768,896			768,743
Four Seasons Health Care Ltd
Other assets
Other-than-temporary impairment on securities	$ 70,000	$ 42,000
Debt Instrument, Face Amount | £			£ 175,000,000
Four Seasons
Other assets
Marketable debt securities, net					$ 83,000	£ 58,000,000		85,000
Marketable debt security, par value			138,500,000			28,000,000		42,000
Marketable debt security, issued and outstanding | £						40,000,000
Purchase of debt securities			£ 136,800,000	$ 215,000
Portion of debt held, as a percent.			79.00%	79.00%
Interest payment received						£ 8,000,000	$ 13,000
Annual interest rate (as a percent)					12.25%
Brookdale JV
Other assets
Loans receivables					$ 5,000			$ 9,000
Number of installments | item					8

Debt (Details)

Debt (Details) £ in Millions	Feb. 01, 2016USD ($)	Dec. 01, 2015USD ($)	Jun. 08, 2015USD ($)	May. 20, 2015USD ($)	Mar. 01, 2015USD ($)	Jan. 21, 2015USD ($)	Mar. 31, 2016USD ($)	Mar. 31, 2016GBP (£)item	Mar. 31, 2016USD ($)item	Jan. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Debt Instrument
Bank line of credit									$ 810,313,000		$ 397,432,000
Senior unsecured notes									8,623,376,000		9,120,107,000
Total debt before discount, net									10,918,709,000
Discounts, net									(77,994,000)
Debt instruments, carrying amount									10,840,715,000
Other debt									95,229,000		$ 94,445,000
Debt maturing in 2016
Debt Instrument
2016 (Nine months)									838,430,000
Debt maturing in 2017
Debt Instrument
2,017									1,331,891,000
Debt maturing in 2018
Debt Instrument
2,018									1,416,896,000
Debt maturing in 2019
Debt Instrument
2,019									768,322,000
Debt maturing in 2020
Debt Instrument
2,020									802,078,000
Thereafter
Debt Instrument
Thereafter									$ 5,761,092,000
Line of Credit and Term Loan
Debt Instrument
Debt instrument, covenant debt to assets (as a percent)								60.00%	60.00%
Debt instrument, covenant secured debt to assets (as a percent)								30.00%	30.00%
Debt instrument, covenant unsecured debt to unencumbered assets (as a percent)								60.00%	60.00%
Debt instrument, covenant minimum fixed charge coverage ratio								1.5	1.5
Bank Line of Credit
Debt Instrument
Line of credit facility, maximum borrowing capacity									$ 2,000,000,000
Debt instrument, variable rate basis							LIBOR
Length of debt instrument extension period							1 year
Debt instrument, basis spread on variable rate (as a percent)							0.925%
Debt instrument, facility fee (as a percent)							0.15%
Line of credit facility additional aggregate amount, maximum							$ 500,000,000
Bank line of credit									$ 810,000,000
Weighted-average interest rate (as a percent)								1.68%	1.68%
Debt instrument, covenant net worth									$ 9,500,000,000
Line of credit, portion denominated in GBP								£ 275	395,000,000
Total debt before discount, net									810,313,000
Debt instruments, carrying amount									810,313,000
Bank Line of Credit | Debt maturing in 2018
Debt Instrument
2,018									810,313,000
Term loans
Debt Instrument
2016 (Nine months) | £								£ 357
2,019										$ 357,000,000
Total debt before discount, net									513,188,000
Discounts, net									(1,451,000)
Debt instruments, carrying amount									511,737,000
Term loans | Debt maturing in 2016
Debt Instrument
2016 (Nine months)									196,938,000
Term loans | Debt maturing in 2019
Debt Instrument
2,019									$ 316,250,000
Senior Unsecured Notes
Debt Instrument
Weighted-average interest rate (as a percent)								4.72%	4.72%
Senior unsecured notes									$ 8,700,000,000
Total debt before discount, net									8,700,000,000
Discounts, net									(76,624,000)
Debt instruments, carrying amount									$ 8,623,376,000
Weighted-average maturity							6 years
Senior Unsecured Notes | Minimum
Debt Instrument
Debt Instrument, Interest Rate, Stated Percentage (as a percent)								2.79%	2.79%
Senior Unsecured Notes | Maximum
Debt Instrument
Debt Instrument, Interest Rate, Stated Percentage (as a percent)								6.88%	6.88%
Senior Unsecured Notes | Debt maturing in 2016
Debt Instrument
2016 (Nine months)									$ 400,000,000
Senior Unsecured Notes | Debt maturing in 2017
Debt Instrument
2,017									750,000,000
Senior Unsecured Notes | Debt maturing in 2018
Debt Instrument
2,018									600,000,000
Senior Unsecured Notes | Debt maturing in 2019
Debt Instrument
2,019									450,000,000
Senior Unsecured Notes | Debt maturing in 2020
Debt Instrument
2,020									800,000,000
Senior Unsecured Notes | Thereafter
Debt Instrument
Thereafter									$ 5,700,000,000
Senior Unsecured, 3.40% notes due 2025
Debt Instrument
Debt Instrument, Face Amount						$ 600,000,000
Debt Instrument, Interest Rate, Stated Percentage (as a percent)						3.40%
Net proceeds from issuance of senior unsecured notes						$ 591,000,000
Senior Unsecured 4.0% notes due 2025
Debt Instrument
Debt Instrument, Face Amount				$ 750,000,000
Debt Instrument, Interest Rate, Stated Percentage (as a percent)				4.00%
Net proceeds from issuance of senior unsecured notes				$ 739,000,000
Senior Unsecured, 4.0% notes due 2022
Debt Instrument
Debt Instrument, Face Amount		$ 600,000,000
Debt Instrument, Interest Rate, Stated Percentage (as a percent)		4.00%
Net proceeds from issuance of senior unsecured notes		$ 594,000,000
Senior Unsecured Debt 3.75 Percent Incepted February 1 2016 [Member]
Debt Instrument
Debt Instrument, Interest Rate, Stated Percentage (as a percent)	3.75%
Repayment of senior unsecured notes	$ 500,000,000
Senior Unsecured Debt 6.0 Percent Incepted March 1, 2015
Debt Instrument
Debt Instrument, Interest Rate, Stated Percentage (as a percent)					6.00%
Repayment of senior unsecured notes					$ 200,000,000
Senior Unsecured Debt 7.07 Percent Incepted June 8, 2015 [Member]
Debt Instrument
Debt Instrument, Interest Rate, Stated Percentage (as a percent)			7.072%
Repayment of senior unsecured notes			$ 200,000,000
Mortgage Debt
Debt Instrument
Weighted-average interest rate (as a percent)								6.22%	6.22%
Number of healthcare facilities used to secure debt | item								56	56
Debt instrument, collateral, healthcare facilities carrying value									$ 1,100,000,000
Total debt before discount, net									895,208,000
Discounts, net									81,000
Debt instruments, carrying amount									$ 895,289,000
Weighted-average maturity							2 years
Mortgage Debt | Minimum
Debt Instrument
Debt Instrument, Interest Rate, Stated Percentage (as a percent)								3.11%	3.11%
Mortgage Debt | Maximum
Debt Instrument
Debt Instrument, Interest Rate, Stated Percentage (as a percent)								8.35%	8.35%
Mortgage Debt | Debt maturing in 2016
Debt Instrument
2016 (Nine months)									$ 241,492,000
Mortgage Debt | Debt maturing in 2017
Debt Instrument
2,017									581,891,000
Mortgage Debt | Debt maturing in 2018
Debt Instrument
2,018									6,583,000
Mortgage Debt | Debt maturing in 2019
Debt Instrument
2,019									2,072,000
Mortgage Debt | Debt maturing in 2020
Debt Instrument
2,020									2,078,000
Mortgage Debt | Thereafter
Debt Instrument
Thereafter									61,092,000
Non-interest Bearing Life Care Bonds
Debt Instrument
Other debt									$ 67,000,000
Number of CCRC issuing non-interest life care bonds | item								2	2
Number of facilities with non-interest bearing occupancy fee deposits | item								2	2
Demand Note
Debt Instrument
Debt Instrument, Interest Rate, Stated Percentage (as a percent)								4.50%	4.50%
Other debt									$ 28,000,000

Equity (Details)

Equity (Details) $ / shares in Units, shares in Thousands, $ in Thousands	Apr. 27, 2016$ / shares	Jan. 28, 2016$ / shares	Mar. 31, 2016USD ($)item$ / sharesshares	Mar. 31, 2015USD ($)$ / sharesshares	Dec. 31, 2015USD ($)
Equity
Dividends declared per common share (in dollars per share) | $ / shares	$ 0.575	$ 0.575	$ 0.575	$ 0.565
Company's common stock issuances
Repurchase of common stock			$ 3,628	$ 6,096
Accumulated Other Comprehensive Loss
Cumulative foreign currency translation adjustment			(20,222)		$ (19,485)
Unrealized losses on cash flow hedges, net			(8,103)		(7,582)
Supplemental Executive Retirement Plan minimum liability			(3,341)		(3,411)
Unrealized (losses) gains on available for sale securities			(7)		8
Total accumulated other comprehensive loss			(31,673)		(30,470)
Noncontrolling interests
DownREIT unit, carrying value			$ 181,468		$ 185,608
Common Stock
Company's common stock issuances
Dividend Reinvestment and Stock Purchase Plan (in shares) | shares			1,081	829
Conversion of DownREIT units (in shares) | shares			99	38
Exercise of stock options (in shares) | shares			111	811
Vesting of restricted stock units (in shares) | shares			248	288
Repurchase of common stock			$ 102	$ 128
Noncontrolling Interests
Noncontrolling interests
Non-managing members DownREIT units outstanding | item			4,000,000
Number of DownREIT LLCs | item			5
DownREIT unit, carrying value			$ 181,000
DownREIT unit, fair value			$ 191,000

Segment Disclosures - Summary I

Segment Disclosures - Summary Information for the Reportable Segments (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)item	Mar. 31, 2015USD ($)
Segment reporting information, revenues
Number of reportable segments | item	5
Rental Revenues	$ 456,899	$ 472,056
Resident fees and services	165,763	105,013
Operating expenses	(176,955)	(132,031)
NOI	445,707	445,038
Non-cash adjustments to NOI	(7,402)	(29,185)
Adjusted (cash) NOI	438,305	415,853
Adjusted (cash) NOI from unconsolidated joint ventures	17,044	15,544
Interest Income	18,029	33,262
Portfolio Income	473,378	464,659
Addback non-cash adjustments	7,402	29,185
Investment management fee income	91	460
Interest expense	(122,062)	(116,780)
Depreciation and amortization	(141,322)	(114,522)
General and administrative expenses	(25,499)	(24,773)
Acquisition and pursuit costs	(2,475)	(3,390)
Impairments		(478,464)
Gain on sales of real estate		6,264
Other income, net	1,222	1,724
Income tax (expense) benefit	(53,038)	77
Equity loss in unconsolidated joint ventures, excluding adjusted (cash) NOI	(17,952)	(1,943)
Net income (loss)	119,745	(237,503)
Senior housing
Segment reporting information, revenues
Rental Revenues	128,897	127,382
Resident fees and services	165,763	105,013
Operating expenses	(116,136)	(75,510)
NOI	178,524	156,885
Non-cash adjustments to NOI	(5,956)	(6,413)
Adjusted (cash) NOI	172,568	150,472
Adjusted (cash) NOI from unconsolidated joint ventures	14,898	14,012
Interest Income	1,851	7,394
Portfolio Income	189,317	171,878
Post-acute/skilled
Segment reporting information, revenues
Rental Revenues	107,190	140,576
Operating expenses	(564)	(533)
NOI	106,626	140,043
Non-cash adjustments to NOI	(271)	(18,083)
Adjusted (cash) NOI	106,355	121,960
Adjusted (cash) NOI from unconsolidated joint ventures	404
Interest Income	16,178	25,868
Portfolio Income	122,937	147,828
Life science
Segment reporting information, revenues
Rental Revenues	88,948	83,551
Operating expenses	(16,743)	(16,699)
NOI	72,205	66,852
Non-cash adjustments to NOI	(673)	(3,075)
Adjusted (cash) NOI	71,532	63,777
Adjusted (cash) NOI from unconsolidated joint ventures	1,420	1,228
Portfolio Income	72,952	65,005
Medical office
Segment reporting information, revenues
Rental Revenues	108,994	98,305
Operating expenses	(42,313)	(38,252)
NOI	66,681	60,053
Non-cash adjustments to NOI	(805)	(1,866)
Adjusted (cash) NOI	65,876	58,187
Adjusted (cash) NOI from unconsolidated joint ventures	322	304
Portfolio Income	66,198	58,491
Hospital
Segment reporting information, revenues
Rental Revenues	22,870	22,242
Operating expenses	(1,199)	(1,037)
NOI	21,671	21,205
Non-cash adjustments to NOI	303	252
Adjusted (cash) NOI	21,974	21,457
Portfolio Income	$ 21,974	$ 21,457

Segment Disclosures - Assets by

Segment Disclosures - Assets by Segment (Details) - USD ($) $ in Thousands		Mar. 31, 2016	Dec. 31, 2015
Segment Disclosure
Real estate assets held for sale, net		$ 311,243	$ 314,126
Total assets	[1]	21,199,927	21,449,849
Goodwill		50,346	50,346
Life science
Segment Disclosure
Real estate assets held for sale, net		43,000
Operating segment
Segment Disclosure
Gross assets		23,095,757	22,972,094
Accumulated depreciation and amortization		(3,059,436)	(2,941,568)
Total assets		20,036,321	20,030,526
Operating segment | Senior housing
Segment Disclosure
Gross assets		9,931,444	9,812,142
Goodwill		31,000	31,000
Operating segment | Post-acute/skilled
Segment Disclosure
Gross assets		5,111,794	5,162,947
Goodwill		3,000	3,000
Operating segment | Life science
Segment Disclosure
Gross assets		3,944,689	3,905,137
Operating segment | Medical office
Segment Disclosure
Gross assets		3,485,010	3,469,048
Goodwill		11,000	11,000
Operating segment | Hospital
Segment Disclosure
Gross assets		622,820	622,820
Goodwill		5,000	5,000
Other non-segment
Segment Disclosure
Total assets		$ 852,363	$ 1,105,197
[1]	HCP, Inc.’s consolidated total assets and total liabilities at March 31, 2016 and December 31, 2015 include certain assets of variable interest entities (“VIEs”) that can only be used to settle the liabilities of the related VIE. The VIE creditors do not have recourse to HCP, Inc. Total assets at March 31, 2016 include VIE assets as follows: buildings and improvements $3.4 billion; development costs $60 million; land $327 million; accumulated depreciation and amortization $567 million; investments in unconsolidated joint ventures $14 million; accounts receivable $18 million; cash $60 million; restricted cash $23 million; intangible assets, net $197 million; and other assets, net $66 million. Total assets at December 31, 2015 include VIE assets as follows: buildings and improvements $3.4 billion; development costs $54 million; land $327 million; accumulated depreciation and amortization $537 million; investments in unconsolidated joint ventures $14 million; accounts receivable $19 million; cash $61 million; restricted cash $21 million; intangible assets, net $204 million; and other assets, net $63 million. Total liabilities at March 31, 2016 include VIE liabilities as follows: mortgage debt $573 million; intangible liabilities, net $10 million; accounts payable and accrued liabilities of $107 million and deferred revenue of $23 million from VIEs. Total liabilities at December 31, 2015 include VIE liabilities as follows: mortgage debt $589 million; intangible liabilities, net $10 million; accounts payable and accrued liabilities of $107 million and deferred revenue of $19 million. See Note 16 to the Consolidated Financial Statements for additional information.

Earnings Per Common Share (Deta

Earnings Per Common Share (Details) $ / shares in Units, shares in Thousands, $ in Thousands, item in Millions	3 Months Ended
	Mar. 31, 2016USD ($)item$ / sharesshares	Mar. 31, 2015USD ($)$ / sharesshares
Numerator
Net income (loss) | $	$ 119,745	$ (237,503)
Noncontrolling interests’ share in earnings | $	(3,626)	(3,111)
Net income (loss) attributable to HCP, Inc. | $	116,119	(240,614)
Participating securities' share in earnings | $	(357)	(335)
Net income (loss) applicable to common shares | $	$ 115,762	$ (240,949)
Denominator
Basic weighted average common shares	466,074	460,880
Dilutive potential common shares	188
Diluted weighted average common shares	466,262	460,880
Earnings per common share:
Basic (in dollars per share) | $ / shares	$ 0.25	$ (0.52)
Diluted (in dollars per share) | $ / shares	$ 0.25	$ (0.52)
Common Stock Options
Earnings per common share:
Shares of anti-dilutive securities excluded from earnings per share calculation	1,400
Down REIT
Earnings per common share:
Shares of anti-dilutive securities excluded from earnings per share calculation	6,000
DownREIT LLCs, non-managing member units outstanding | item	4
Restricted Stock and Performance Restricted Stock Units
Earnings per common share:
Shares of anti-dilutive securities excluded from earnings per share calculation	700

Supplemental Cash Flow Inform58

Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Supplemental cash flow information:
Interest paid, net of capitalized interest	$ 171,422	$ 168,165
Income taxes paid	1,213	383
Capitalized interest	3,128	1,698
Supplemental schedule of non-cash investing activities:
Accrued construction costs	56,972	32,236
Settlement of HCRMC Tranche A DRO as consideration for DFL acquisition	91,605
Tenant funded tenant improvements owned by HCP	9,178	572
Supplemental schedule of non-cash financing activities:
Vesting of restricted stock units	248	288
Conversion of non-managing member units into common stock	4,136	1,608
Noncontrolling interest issued in connection with real estate acquisitions		1,306
Other liabilities assumed with real estate acquisitions	1,200	626
Unrealized (losses) on available-for-sale securities and derivatives designated as cash flow hedges, net	$ (705)	$ 2,334

Variable Interest Entities (Det

Variable Interest Entities (Details) $ in Thousands	Jan. 01, 2016USD ($)entity	Mar. 31, 2016USD ($)propertyitem	Dec. 31, 2015USD ($)property	Aug. 29, 2014
Company's involvement with VIEs:
Number of unconsolidated joint ventures | item		4
Number of VIE borrowers with debt securities and loan | item		2
Number of joint ventures deconsolidated | entity	3
Cumulative-effect adjustment to cumulative dividends in excess of earnings	$ 500
Vintage Park Development JV
Company's involvement with VIEs:
Number of equity members without substantive interest | item		1
Unconsolidated Variable Interest Entities
Company's involvement with VIEs:
Number of properties leased | property		358
Number of VIE tenants | item		7
CCRC OpCo
Company's involvement with VIEs:
Joint Venture Ownership Percentage				49.00%
Maximum Loss Exposure		$ 230,275
Assets/liability type		Investments in unconsolidated joint ventures
Carrying amount		$ 230,275
Vintage Park Development JV
Company's involvement with VIEs:
Maximum Loss Exposure		$ 8,593
Assets/liability type		Investments in unconsolidated joint ventures
Carrying amount		$ 8,593
Ownership percentage (as a percent)		85.00%
VIE tenants-operating leases
Company's involvement with VIEs:
Number of properties leased | property		48
Maximum Loss Exposure		$ 9,952
Assets/liability type		Lease intangibles, net and straight-line rent receivables
Carrying amount		$ 9,952
HCRMC
Company's involvement with VIEs:
Number of properties leased | property			310
Maximum Loss Exposure		$ 5,107,180
Assets/liability type		Net investment in DFLs and investments in unconsolidated joint ventures
Carrying amount		$ 5,107,180
VIE tenants-DFLs
Company's involvement with VIEs:
Maximum Loss Exposure		$ 598,960
Assets/liability type		Net investment in DFLs
Carrying amount		$ 598,960
Four Seasons
Company's involvement with VIEs:
Maximum Loss Exposure		$ 124,108
Assets/liability type		Loans and marketable debt securities
Carrying amount		$ 124,108
CMBS and LLC investment
Company's involvement with VIEs:
Maximum Loss Exposure		$ 32,944
Assets/liability type		Marketable debt and cost method investments
Carrying amount		$ 32,944
Consolidated Variable Interest Entities | Accounting Standards Update ("ASU") 2015-02 - Consolidation | Adjustment
Company's involvement with VIEs:
Total assets			$ 543,000
Total liabilities			$ 651,000
RIDEA I
Company's involvement with VIEs:
Ownership percentage (as a percent)		90.00%
RIDEA II
Company's involvement with VIEs:
Ownership percentage (as a percent)		80.00%
RIDEA III
Company's involvement with VIEs:
Ownership percentage (as a percent)		90.00%
HCP Ventures V
Company's involvement with VIEs:
Ownership percentage (as a percent)		51.00%
Vintage Park Development JV
Company's involvement with VIEs:
Ownership percentage (as a percent)		90.00%
DownREIT Partnerships
Company's involvement with VIEs:
Number of controlling ownership interest entities as a managing member | item		5

Concentration of Credit Risk (D

Concentration of Credit Risk (Details) $ in Thousands		3 Months Ended		12 Months Ended
		Mar. 31, 2016USD ($)item	Mar. 31, 2015USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Concentration of risk
Number of RIDEA joint ventures | item		4
Balance Sheets:
Real estate and other property, net		$ 12,065,135		$ 11,994,703
Cash and cash equivalents		94,665	$ 137,170	346,500	$ 183,810
Goodwill, intangible and other assets, net		817,279		802,273
Total assets	[1]	21,199,927		21,449,849
Accounts payable, accrued liabilities and other		433,144		436,239
Total equity		9,630,325	10,555,646	9,746,317	$ 10,997,099
Total liabilities and equity		21,199,927		21,449,849
Income Statements:
Revenues		640,782	610,791
Operating, general and administrative expense		(176,955)	(132,031)
Depreciation and amortization expense		(141,322)	(114,522)
Interest expense		(122,062)	(116,780)
Other income, net		1,222	7,988
Loss on disposal of assets			6,264
Income taxes		(53,038)	77
Net income (loss)		$ 119,745	(237,503)
Brookdale JV | Minimum
Income Statements:
Management fees as percentage of gross revenues		4.50%
Brookdale JV | Maximum
Income Statements:
Management fees as percentage of gross revenues		5.00%
HCRMC
Balance Sheets:
Real estate and other property, net		$ 2,611,800		2,628,500
Cash and cash equivalents		173,800		125,000
Goodwill, intangible and other assets, net		4,526,900		4,598,300
Total assets		7,312,500		7,351,800
Debt and financing obligations		5,783,800		5,836,400
Accounts payable, accrued liabilities and other		1,006,700		982,900
Total equity		522,000		532,500
Total liabilities and equity		7,312,500		$ 7,351,800
Income Statements:
Revenues		984,500	1,054,000
Operating, general and administrative expense		(857,200)	(897,900)
Depreciation and amortization expense		(32,500)	(35,900)
Interest expense		(115,100)	(100,300)
Other income, net		3,500	2,800
Loss on disposal of assets		3,300
(Loss) income from continuing operations before income tax expense		(13,500)	22,700
Income taxes		2,900	(10,100)
(Loss) income from continuing operations		(10,600)	12,600
Income from discontinued operations, net of taxes		100	1,100
Net income (loss)		(10,500)	13,700
Senior housing
Income Statements:
Operating, general and administrative expense		$ (116,136)	(75,510)
Senior housing | CCRC JV
Concentration of risk
Number of RIDEA joint ventures | item		2
Senior housing | Management and Accounting Services | Brookdale JV
Concentration of risk
Number of RIDEA joint ventures | item		15
Investments in Joint Ventures Senior Housing Facilities Number | item		108
Post-acute/skilled
Income Statements:
Operating, general and administrative expense		$ (564)	$ (533)
Management and Accounting Services | Brookdale JV | Minimum
Income Statements:
Management Agreement Number of Renewals | item		3
Management and Accounting Services | Brookdale JV | Maximum
Income Statements:
Management Agreement Number of Renewals | item		4
Management and Accounting Services | Senior housing | Brookdale JV
Income Statements:
Management agreement renewal term (in years)		5 years
Management and Accounting Services | Senior housing | Brookdale JV | Minimum
Income Statements:
Management agreement term (in years)		10 years
Management and Accounting Services | Senior housing | Brookdale JV | Maximum
Income Statements:
Management agreement term (in years)		15 years
Assets | Tenants and Operators | Senior housing | Brookdale JV
Concentration of risk
Concentration risk (as a percent)		27.00%		28.00%
Assets | Tenants and Operators | Senior housing | HCRMC
Concentration of risk
Concentration risk (as a percent)		12.00%		12.00%
Assets | Tenants and Operators | Post-acute/skilled | HCRMC
Concentration of risk
Concentration risk (as a percent)		77.00%		64.00%
Revenue | Tenants and Operators | Senior housing | Brookdale JV
Concentration of risk
Concentration risk (as a percent)		21.00%	25.00%
Revenue | Tenants and Operators | Senior housing | HCRMC
Concentration of risk
Concentration risk (as a percent)		6.00%	8.00%
Revenue | Tenants and Operators | Post-acute/skilled | HCRMC
Concentration of risk
Concentration risk (as a percent)		78.00%	80.00%
[1]	HCP, Inc.’s consolidated total assets and total liabilities at March 31, 2016 and December 31, 2015 include certain assets of variable interest entities (“VIEs”) that can only be used to settle the liabilities of the related VIE. The VIE creditors do not have recourse to HCP, Inc. Total assets at March 31, 2016 include VIE assets as follows: buildings and improvements $3.4 billion; development costs $60 million; land $327 million; accumulated depreciation and amortization $567 million; investments in unconsolidated joint ventures $14 million; accounts receivable $18 million; cash $60 million; restricted cash $23 million; intangible assets, net $197 million; and other assets, net $66 million. Total assets at December 31, 2015 include VIE assets as follows: buildings and improvements $3.4 billion; development costs $54 million; land $327 million; accumulated depreciation and amortization $537 million; investments in unconsolidated joint ventures $14 million; accounts receivable $19 million; cash $61 million; restricted cash $21 million; intangible assets, net $204 million; and other assets, net $63 million. Total liabilities at March 31, 2016 include VIE liabilities as follows: mortgage debt $573 million; intangible liabilities, net $10 million; accounts payable and accrued liabilities of $107 million and deferred revenue of $23 million from VIEs. Total liabilities at December 31, 2015 include VIE liabilities as follows: mortgage debt $589 million; intangible liabilities, net $10 million; accounts payable and accrued liabilities of $107 million and deferred revenue of $19 million. See Note 16 to the Consolidated Financial Statements for additional information.

Fair Value Measurements - Recur

Fair Value Measurements - Recurring basis (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Fair value on a recurring basis | Level 1
Fair value assets and liabilities measured on recurring basis:
Marketable equity securities	$ 24
Fair value on a recurring basis | Level 2 | Interest-rate swap contracts
Fair value assets and liabilities measured on recurring basis:
Derivative liabilities	7,384
Fair value on a recurring basis | Level 2 | Currency Swap
Fair value assets and liabilities measured on recurring basis:
Derivative assets	2,469
Fair value on a recurring basis | Level 3 | Warrants
Fair value assets and liabilities measured on recurring basis:
Derivative assets	16
Fair Value | Currency Swap
Fair value assets and liabilities measured on recurring basis:
Derivative assets	2,469	$ 1,551
Fair Value | Level 1
Fair value assets and liabilities measured on recurring basis:
Marketable equity securities	24	39
Fair Value | Level 2 | Interest-rate swap contracts
Fair value assets and liabilities measured on recurring basis:
Derivative assets		196
Derivative liabilities	7,384	6,251
Fair Value | Level 3 | Warrants
Fair value assets and liabilities measured on recurring basis:
Derivative assets	16	$ 55
Fair Value | Fair value on a recurring basis
Fair value assets and liabilities measured on recurring basis:
Marketable equity securities	24
Fair Value | Fair value on a recurring basis | Interest-rate swap contracts
Fair value assets and liabilities measured on recurring basis:
Derivative liabilities	7,384
Fair Value | Fair value on a recurring basis | Currency Swap
Fair value assets and liabilities measured on recurring basis:
Derivative assets	2,469
Fair Value | Fair value on a recurring basis | Warrants
Fair value assets and liabilities measured on recurring basis:
Derivative assets	$ 16

Fair Value Measurements - Summa

Fair Value Measurements - Summary of the Carrying Amounts and Fair Values of the Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Summary of financial instruments
Bank line of credit	$ 810,313	$ 397,432
Senior unsecured notes	8,623,376	9,120,107
Mortgage debt	895,289	932,212
Other debt	95,229	94,445
Carrying Value
Summary of financial instruments
Loans receivable, net	768,896	768,743
Marketable debt securities	100,915	102,958
Marketable equity securities	24	39
Bank line of credit	810,313	397,432
Term loans	511,737	524,807
Senior unsecured notes	8,623,376	9,120,107
Mortgage debt	895,289	932,212
Other debt	95,229	94,445
Carrying Value | Warrants
Summary of financial instruments
Derivative assets	16	55
Carrying Value | Interest-rate swap contracts
Summary of financial instruments
Derivative assets		196
Derivative liabilities	(7,384)	6,251
Carrying Value | Currency Swap
Summary of financial instruments
Derivative assets	2,469	1,551
Fair Value | Level 1
Summary of financial instruments
Marketable equity securities	24	39
Senior unsecured notes	8,854,121	9,390,668
Fair Value | Level 2
Summary of financial instruments
Loans receivable, net	775,109	770,052
Marketable debt securities	100,915	102,958
Bank line of credit	810,313	397,432
Term loans	511,737	524,807
Mortgage debt	936,466	963,786
Other debt	95,229	94,445
Fair Value | Warrants | Level 3
Summary of financial instruments
Derivative assets	16	55
Fair Value | Interest-rate swap contracts | Level 2
Summary of financial instruments
Derivative assets		196
Derivative liabilities	7,384	6,251
Fair Value | Currency Swap
Summary of financial instruments
Derivative assets	$ 2,469	$ 1,551

Derivative Financial Instrume63

Derivative Financial Instruments (Details) £ in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)	Mar. 31, 2016GBP (£)item	Mar. 31, 2016USD ($)item
Derivative
Gains or losses recorded to accumulated other comprehensive loss reclassified to earnings	$ 0
Reclassification out of Accumulated Other Comprehensive Income
Effects of Change in Interest Rates
Reclassification of unrealized gains into other income (expense), ineffectiveness	100
Interest rate swap, entered in July 2005, maturity in July 2020
Effects of Change in Interest Rates
+50 Basis Points	1,066
-50 Basis Points	(773)
+100 Basis Points	1,986
-100 Basis Points	(1,692)
Interest rate swap, entered in July 2005, maturity in July 2020 | BMA Swap Index
Derivative
Notional amount			$ 45,600
Fair value of hedge, liabilities			$ (5,487)
Interest rate swap, entered in July 2005, maturity in July 2020 | Cash flow hedge
Derivative
Number of interest-rate swap contracts | item		3	3
Interest rate swap, entered in July 2005, maturity in July 2020 | Cash flow hedge | BMA Swap Index
Derivative
Fixed Rate/Buy Amount (as a percent)		3.82%	3.82%
Interest rate swap, entered in November 2008, maturity in October 2016
Effects of Change in Interest Rates
+50 Basis Points	67
-50 Basis Points	(68)
+100 Basis Points	135
-100 Basis Points	(135)
Interest rate swap, entered in November 2008, maturity in October 2016 | LIBOR
Derivative
Notional amount			$ 24,900
Fair value of hedge, liabilities			$ (532)
Interest rate swap, entered in November 2008, maturity in October 2016 | Cash flow hedge | LIBOR
Derivative
Fixed Rate/Buy Amount (as a percent)		5.95%	5.95%
Floating/Exchange Rate Index, percentage		1.50%	1.50%
Interest rate swap, entered in July 2012, maturity in June 2016
Effects of Change in Interest Rates
+50 Basis Points	209
-50 Basis Points	(200)
+100 Basis Points	417
-100 Basis Points	(401)
Interest rate swap, entered in July 2012, maturity in June 2016 | GBP LIBOR
Derivative
Notional amount | £		£ 137,000
Fair value of hedge, liabilities			$ (29)
Interest rate swap, entered in July 2012, maturity in June 2016 | Cash flow hedge
Derivative
Buy (sell) amount | £		£ 7,200
Interest rate swap, entered in July 2012, maturity in June 2016 | Cash flow hedge | GBP LIBOR
Derivative
Fixed Rate/Buy Amount (as a percent)		1.81%	1.81%
Floating/Exchange Rate Index, percentage		1.20%	1.20%
Interest rate swap, entered in January 2015, maturity in October 2017
Effects of Change in Interest Rates
+50 Basis Points	2,486
-50 Basis Points	(2,494)
+100 Basis Points	4,976
-100 Basis Points	(4,984)
Interest rate swap, entered in January 2015, maturity in October 2017 | GBP LIBOR
Derivative
Notional amount | £		£ 220,000
Fair value of hedge, liabilities			$ (1,336)
Interest rate swap, entered in January 2015, maturity in October 2017 | Cash flow hedge
Derivative
Exchange rate GBP/USD		1.5149	1.5149
Interest rate swap, entered in January 2015, maturity in October 2017 | Cash flow hedge | GBP LIBOR
Derivative
Fixed Rate/Buy Amount (as a percent)		1.79%	1.79%
Floating/Exchange Rate Index, percentage		0.975%	0.975%
Currency swap, entered in July 2012, maturity in June 2016
Derivative
Notional amount | £		£ 7,200
Fair value of foreign currency derivative instruments not designated as hedging instruments, assets			$ 964
Effects of Change in Interest Rates
+50 Basis Points	(47)
-50 Basis Points	57
+100 Basis Points	(99)
-100 Basis Points	109
Currency swap, entered in July 2012, maturity in June 2016 | Cash flow hedge
Derivative
Semi annual buy (sell) amount			$ 11,400
Exchange rate GBP/USD		1.5695	1.5695
Currency swap, entered in January 2015, maturity in October 2017
Derivative
Notional amount | £		£ 20,000
Fair value of foreign currency hedge, assets			$ 1,505
Effects of Change in Interest Rates
+50 Basis Points	(72)
-50 Basis Points	216
+100 Basis Points	(215)
-100 Basis Points	$ 360
Currency swap, entered in January 2015, maturity in October 2017 | Cash flow hedge
Derivative
Buy (sell) amount | £		£ 1,000
Monthly buy (sell) amount			$ 30,300

Subsequent Events (Details)

Subsequent Events (Details) $ in Thousands	1 Months Ended	3 Months Ended
	May. 31, 2016USD ($)facilityproperty	Mar. 31, 2016USD ($)	Mar. 31, 2015USD ($)	Dec. 31, 2015USD ($)
Subsequent Events
Loans receivable, net		$ 768,896		$ 768,743
Payments to Acquire Notes Receivable		$ 117,282	$ 176,504
Subsequent event
Subsequent Events
Number of facility sales expected to close | facility	17
Subsequent event | RIDEA II
Subsequent Events
Cash proceeds	$ 109,000
Note receivable	$ 636,000
Subsequent event | HCP/CPA/Brookdale JV
Subsequent Events
Investment ownership percentage	40.00%
SpinCo | Subsequent event
Subsequent Events
Number of properties intended to spin off | property	338
HCP/CPA JV | Subsequent event
Subsequent Events
Investment ownership percentage	50.10%
An investor group led by Columbia Pacific Advisors, LLC [Member] | HCP/CPA JV | Subsequent event
Subsequent Events
Investment ownership percentage	49.90%