Healthpeak Properties (DOC) 10-Q 9 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Jul. 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	Jun. 30, 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		467,583,448
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands		Jun. 30, 2016	Dec. 31, 2015
Real estate:
Buildings and improvements		$ 12,321,266	$ 12,198,704
Development costs and construction in progress		387,560	388,576
Land		1,933,823	1,948,757
Accumulated depreciation and amortization		(2,716,880)	(2,541,334)
Net real estate		11,925,769	11,994,703
Net investment in direct financing leases		5,856,544	5,905,009
Loans receivable, net		708,096	768,743
Investments in and advances to unconsolidated joint ventures		604,941	605,244
Accounts receivable, net of allowance of $4,892 and $3,261, respectively		51,800	48,929
Cash and cash equivalents		116,450	346,500
Restricted cash		180,404	60,616
Intangible assets, net		550,569	603,706
Other assets, net		791,431	802,273
Real estate assets held for sale, net		330,453	314,126
Total assets	[1]	21,116,457	21,449,849
LIABILITIES AND EQUITY
Bank line of credit		869,078	397,432
Term loans		477,890	524,807
Senior unsecured notes		8,626,559	9,120,107
Mortgage debt		688,910	932,212
Other debt		93,012	94,445
Intangible liabilities, net		49,448	56,147
Intangible liabilities on assets held for sale, net		17,001	19,126
Accounts payable and accrued liabilities		482,133	436,239
Deferred revenue		136,038	123,017
Total liabilities	[1]	11,440,069	11,703,532
Commitments and contingencies
Common stock, $1.00 par value: 750,000,000 shares authorized; 467,324,914 and 465,488,492 shares issued and outstanding, respectively		467,325	465,488
Additional paid-in capital		11,701,707	11,647,039
Cumulative dividends in excess of earnings		(2,857,164)	(2,738,414)
Accumulated other comprehensive loss		(30,738)	(30,470)
Total stockholders' equity		9,281,130	9,343,643
Joint venture partners		214,671	217,066
Non-managing member unitholders		180,587	185,608
Total noncontrolling interests		395,258	402,674
Total equity		9,676,388	9,746,317
Total liabilities and equity		$ 21,116,457	$ 21,449,849
[1]	HCP, Inc.’s consolidated total assets and total liabilities at June 30, 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 June 30, 2016 include VIE assets as follows: buildings and improvements $3.4 billion; development costs $16 million; land $324 million; accumulated depreciation and amortization $598 million; investments in unconsolidated joint ventures $14 million; accounts receivable $25 million; cash $59 million; restricted cash $25 million; intangible assets, net $184 million; and other assets, net $62 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 June 30, 2016 include VIE liabilities as follows: mortgage debt $571 million; intangible liabilities, net $10 million; accounts payable and accrued liabilities $116 million and deferred revenue $25 million. 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 $107 million and deferred revenue $19 million. See Note 16 to the Consolidated Financial Statements for additional information.

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Company's involvement with VIEs:
Development costs	$ 387,560	$ 388,576
Land	1,933,823	1,948,757
Accumulated depreciation and amortization	2,716,880	2,541,334
Investments in unconsolidated joint ventures	604,941	605,244
Accounts Receivable	51,800	48,929
Cash	116,450	346,500
Restricted cash	180,404	60,616
Intangible assets, net	550,569	603,706
Other assets, net	791,431	802,273
Mortgage debt	688,910	932,212
Intangible liabilities, net	49,448	56,147
Accounts payable and accrued liabilities	482,133	436,239
Deferred Revenue	136,038	123,017
Balance Sheet Parenthetical Disclosures
Accounts receivable, allowance (in dollars)	$ 4,892	$ 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	467,324,914	465,488,492
Common stock, shares outstanding	467,324,914	465,488,492
VIEs
Company's involvement with VIEs:
Buildings and improvements	$ 3,400,000	$ 3,400,000
Development costs	16,000	54,000
Land	324,000	327,000
Accumulated depreciation and amortization	598,000	537,000
Investments in unconsolidated joint ventures	14,000	14,000
Accounts Receivable	25,000	19,000
Cash	59,000	61,000
Restricted cash	25,000	21,000
Intangible assets, net	184,000	204,000
Other assets, net	62,000	63,000
Mortgage debt	571,000	589,000
Intangible liabilities, net	10,000	10,000
Accounts payable and accrued liabilities	116,000	107,000
Deferred Revenue	$ 25,000	$ 19,000

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues:
Rental and related revenues	$ 299,076	$ 276,734	$ 596,270	$ 551,816
Tenant recoveries	33,930	31,376	65,667	61,272
Resident fees and services	164,202	106,838	329,965	211,851
Income from direct financing leases	132,100	156,181	260,068	323,259
Interest income	32,787	35,945	50,816	69,207
Investment management fee income	81	458	172	918
Total revenues	662,176	607,532	1,302,958	1,218,323
Costs and expenses:
Interest expense	121,333	118,632	243,395	235,412
Depreciation and amortization	141,386	120,403	282,708	234,925
Operating	180,125	136,342	357,080	268,373
General and administrative	22,793	28,845	48,292	53,618
Acquisition and pursuit costs	14,527	18,407	17,002	21,797
Impairment		44,835		523,299
Total costs and expenses	480,164	467,464	948,477	1,337,424
Other income:
Gain (loss) on sales of real estate	119,614	61	119,614	6,325
Other income, net	2,280	11,055	3,502	12,779
Total other income, net	121,894	11,116	123,116	19,104
Income (loss) before income taxes and equity (loss) income from unconsolidated joint ventures	303,906	151,184	477,597	(99,997)
Income tax benefit (expense)	2,003	4,563	(51,035)	4,640
Equity (loss) income from unconsolidated joint ventures	(1,067)	12,001	(1,975)	25,602
Net income (loss)	304,842	167,748	424,587	(69,755)
Noncontrolling interests' share in earnings	(3,125)	(2,863)	(6,751)	(5,974)
Net income (loss) attributable to HCP, Inc.	301,717	164,885	417,836	(75,729)
Participating securities' share in earnings	(342)	(370)	(651)	(704)
Net income (loss) applicable to common shares	$ 301,375	$ 164,515	$ 417,185	$ (76,433)
Earnings per common share:
Basic (in dollars per share)	$ 0.65	$ 0.36	$ 0.89	$ (0.17)
Diluted (in dollars per share)	$ 0.64	$ 0.36	$ 0.89	$ (0.17)
Weighted average shares used to calculate earnings per common share:
Basic (in shares)	467,084	461,874	466,579	461,380
Diluted (in shares)	471,425	462,106	466,777	461,380
Dividends declared per common share (in dollars per share)	$ 0.575	$ 0.565	$ 1.15	$ 1.13

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net income (loss)	$ 304,842	$ 167,748	$ 424,587	$ (69,755)
Other comprehensive loss:
Change in net unrealized gains (losses) on securities	10	8	(5)	3
Change in net unrealized gains (losses) on cash flow hedges:
Unrealized gains (losses)	1,038	(2,541)	348	(202)
Reclassification adjustment realized in net income	171	354	340	348
Change in Supplemental Executive Retirement Plan obligation	71	69	141	138
Foreign currency translation adjustment	(355)	(1,544)	(1,092)	(8,507)
Total other comprehensive income (loss)	935	(3,654)	(268)	(8,220)
Total comprehensive income (loss)	305,777	164,094	424,319	(77,975)
Total comprehensive income attributable to noncontrolling interests	(3,125)	(2,863)	(6,751)	(5,974)
Total comprehensive (loss) income attributable to HCP, Inc.	$ 302,652	$ 161,231	$ 417,568	$ (83,949)

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)	(75,729)			(75,729)		5,974	(69,755)
Other comprehensive income	(8,220)				(8,220)		(8,220)
Issuance of common stock, net	68,141	$ 2,094	66,047			(2,448)	65,693
Issuance of common stock, net (in shares)		2,094
Conversion of DownREIT units (in shares)		70
Repurchase of common stock	(7,690)	$ (171)	(7,519)				(7,690)
Repurchase of common stock (in shares)		(171)
Exercise of stock options	27,425	$ 817	26,608				27,425
Exercise of stock options (in shares)		817
Amortization of deferred compensation	15,724		15,724				15,724
Common dividends	(521,898)			(521,898)			(521,898)
Distributions to noncontrolling interests	(263)		(263)			(8,143)	(8,406)
Issuance of noncontrolling interests						37,025	37,025
Balance at Jun. 30, 2015	10,232,787	$ 462,486	11,532,584	(1,730,168)	(32,115)	294,210	10,526,997
Balance (in shares) at Jun. 30, 2015		462,486
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)	417,836			417,836		6,751	424,587
Other comprehensive income	(268)				(268)		(268)
Issuance of common stock, net	43,072	$ 1,715	41,357				43,072
Issuance of common stock, net (in shares)		1,715
Conversion of DownREIT units to common stock	5,022	$ 120	4,902			(5,022)
Conversion of DownREIT units (in shares)		120
Repurchase of common stock	(3,874)	$ (109)	(3,765)				(3,874)
Repurchase of common stock (in shares)		(109)
Exercise of stock options	2,852	$ 111	2,741				2,852
Exercise of stock options (in shares)		111
Amortization of deferred compensation	9,505		9,505				9,505
Common dividends	(537,061)			(537,061)			(537,061)
Distributions to noncontrolling interests	(36)		(36)			(12,437)	(12,473)
Issuance of noncontrolling interests						3,225	3,225
Deconsolidation of noncontrolling interests	439		(36)	475		67	506
Balance at Jun. 30, 2016	$ 9,281,130	$ 467,325	$ 11,701,707	$ (2,857,164)	$ (30,738)	$ 395,258	$ 9,676,388
Balance (in shares) at Jun. 30, 2016		467,325

CONSOLIDATED STATEMENTS OF EQU7

CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares	Jul. 28, 2016	Apr. 27, 2016	Jan. 28, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
CONSOLIDATED STATEMENTS OF EQUITY
Common dividends, per share (in dollars per share)	$ 0.575	$ 0.575	$ 0.575	$ 0.575	$ 0.565	$ 1.15	$ 1.13

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net income (loss)	$ 424,587	$ (69,755)
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract]
Depreciation and amortization	282,708	234,925
Amortization of market lease intangibles, net	(972)	(636)
Amortization of deferred compensation	9,505	15,724
Amortization of deferred financing costs, net	10,561	9,726
Straight-line rents	(11,117)	(17,748)
Loan and direct financing lease non-cash interest	278	(46,997)
Deferred rental revenues	(808)	(1,004)
Equity loss (income) from unconsolidated joint ventures	1,975	(25,602)
Distributions of earnings from unconsolidated joint ventures	3,202	2,493
Lease termination income, net		(1,103)
Gain on sales of real estate	(119,614)	(6,325)
Deferred income tax expense	49,156
Foreign exchange and other losses (gains), net	(91)	(9,866)
Impairment		523,299
Changes in:
Accounts receivable, net	(2,871)	(6,464)
Other assets, net	(2,892)	(8,473)
Accounts payable and other accrued liabilities	23,305	1,792
Net cash provided by operating activities	666,912	593,986
Cash flows from investing activities:
Acquisitions of real estate	(94,271)	(1,247,900)
Development of real estate	(204,624)	(121,510)
Leasing costs and tenant and capital improvements	(41,161)	(28,302)
Proceeds from sales of real estate, net	96,652	8,600
Contributions to unconsolidated joint ventures	(10,156)	(31,512)
Distributions in excess of earnings from unconsolidated joint ventures	6,421	1,994
Principal repayments on loans receivable, direct financing leases and other	205,576	53,081
Investments in loans receivable and other	(122,113)	(276,038)
Increase in restricted cash	10,058	(3,481)
Net cash used in investing activities	(153,618)	(1,645,068)
Cash flows from financing activities:
Net borrowings under bank line of credit	642,898	186,557
Repayments under bank line of credit	(135,000)
Borrowings under term loan		333,014
Issuance of senior unsecured notes		1,338,555
Repayments of senior unsecured notes	(500,000)	(400,000)
Repayments of mortgage and other debt	(246,387)	(20,333)
Deferred financing costs		(13,272)
Issuance of common stock and exercise of options	45,924	93,118
Repurchase of common stock	(3,874)	(7,690)
Dividends paid on common stock	(537,061)	(521,898)
Issuance of noncontrolling interests	3,225	3,397
Distributions to noncontrolling interest	(12,473)	(8,406)
Net cash (used in) provided by financing activities	(742,748)	983,042
Effect of foreign exchange on cash and cash equivalents	(596)
Net decrease in cash and cash equivalents	(230,050)	(68,040)
Cash and cash equivalents, beginning of year	346,500	183,810
Cash and cash equivalents, end of year	$ 116,450	$ 115,770

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 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 and six months ended June 30, 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 SEC. Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016 ‑13, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 is intended to improve financial reporting by requiring timelier recognition of credit losses on loans and other financial instruments held by financial institutions and other organizations. ASU 2016-13 is effective for fiscal years, and interim periods within, beginning after December 15, 2019. Early adoption is permitted for fiscal years, and interim periods within, beginning after December 15, 2018. The Company is evaluating the impact of the adoption of ASU 2016 ‑13 on January 1, 2020 to its consolidated financial position or results of operations. In May 2016, the FASB issued ASU No. 2016-12, Narrow-Scope Improvements and Practical Expedients (“ASU 2016-12”). The amendments in ASU 2016-12 do not change the core principles of the guidance in the new revenue standard described in ASU No. 2014-09 below. Rather, the amendments in ASU 2016-12 provide practical expedients and improvements on the previously narrow scope of the standard. ASU 2016-12 is effective for fiscal years, and interim periods within, beginning after December 15, 2017. Early adoption is permitted at the original effective date of the new revenue standard (January 1, 2017). The Company is evaluating the impact of the adoption of ASU 2016-12 on January 1, 2018 to its consolidated financial position or results of operations. In March 2016, the FASB issued 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 accounting for share-based payment transactions, including 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 at the original effective date of the new revenue standard described in ASU No. 2014-09 below (January 1, 2017). 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 requirements under current accounting guidance, (ii) eliminate current real estate specific lease provisions and (iii) modify the classification criteria and accounting for sales-type leases for lessors. ASU 2016-02 is effective for fiscal years, and interim periods within, 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”). ASU 2016-01 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 updates to 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 (see Note 16). 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 within, beginning after December 15, 2017. Early adoption is permitted for annual periods, and interim periods within, beginning after December 15, 2016. A reporting entity may apply the amendments in ASU 2014-09 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 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. Real estate and related assets held for sale, net and intangible liabilities related to assets held for sale, net have been reclassified on the consolidated balance sheets (see Note 4).

Real Estate Property Investment

Real Estate Property Investments	6 Months Ended
	Jun. 30, 2016
Real Estate Property Investments
Real Estate Property Investments	NOTE 3. Real Estate Property Investments 2016 Acquisitions The following table summarizes the Company’s real estate acquisitions for the six months ended June 30, 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. Revenues and earnings since the acquisition dates as well as the supplementary pro forma information, assuming these acquisitions occurred as of the beginning of the prior periods, were not material. 2015 Acquisitions 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 under a RIDEA structure which is permitted by the Housing and Economic Recovery Act of 2008 (commonly referred to as “RIDEA”), 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 $776 million, (ii) lease-up intangible assets with a fair value of $48 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% ). 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 data): Three Months Ended Six Months Ended June 30, 2015 June 30, 2015 Revenues $ $ Net income (loss) Net income (loss) applicable to HCP, Inc. Basic earnings per common share Diluted earnings per common share 2015 Other Acquisitions . The following table summarizes the Company’s real estate acquisitions for the six months ended June 30, 2015 (in thousands): Consideration Assets Acquired Liabilities Noncontrolling Net Segment Cash Paid Assumed Interest Real Estate Intangibles Senior housing $ (1) $ $ $ $ Post-acute/skilled nursing (1) — — Medical office — $ $ $ $ $ (1) Includes £174 million ($254 million) of the Company’s HC-One Facility (see Note 6) converted to fee ownership in a portfolio of 36 care homes located throughout the United Kingdom (“U.K.”). Construction, Tenant and Other Capital Improvements The following table summarizes the Company’s funding for construction, tenant and other capital improvements (in thousands): Six Months Ended June 30, Segment 2016 2015 Senior housing $ $ Post-acute/skilled nursing Life science Medical office Hospital — $ $ Pending Acquisitions In May 2016, the Company announced it entered into definitive agreements to acquire a portfolio of seven private pay senior housing communities for $186 million, including the assumption of $75 million of debt maturing in 2044 at a 4.0% interest 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. This transaction is expected to close in the second half of 2016 and remains subject to regulatory and third party approvals and other customary closing conditions. Subsequent Event . In July 2016, the Company acquired two life science buildings and a parcel of land in San Diego, California for $49 million.

Dispositions of Real Estate

Dispositions of Real Estate	6 Months Ended
	Jun. 30, 2016
Dispositions of Real Estate
Dispositions of Real Estate	NOTE 4. Dispositions of Real Estate Held for Sale At June 30, 2016 , four life science facilities and a senior housing facility were classified as held for sale, with an aggregate carrying value of $330 million. At December 31, 2015 , four life science facilities were classified as held for sale, with an aggregate carrying value of $314 million. 2016 Dispositions During the six months ended June 30, 2016, the Company sold five post-acute/skilled nursing and two senior housing facilities for $130 million, a life science facility for $74 million, two medical office buildings for $19 million and a senior housing facility for $6 million and recognized total gain on sales of $120 million. 2015 Dispositions During the six months ended June 30, 2015 , the Company sold nine senior housing facilities for $60 million, resulting from Brookdale’s exercise of its purchase option received as part of a transaction with Brookdale in 2014. Pending Dispositions In June 2016, the Company entered into a sale agreement to sell a senior housing facility in Jacksonville, Florida for $22 million (classified as held for sale as of June 30, 2016 discussed above). The transaction is expected to close in the third quarter of 2016. In May 2016, the Company entered into a master contribution agreement to contribute its ownership interest in joint venture entities that own and operate senior housing properties in a RIDEA structure (“RIDEA II”) to an unconsolidated joint venture owned by HCP and 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 (the “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 is expected to occur in the second half of 2016 and remains subject to regulatory and third party approvals and other customary closing conditions. In January 2016, the Company entered into a sale agreement for purchase options that were exercised on eight life science facilities in South San Francisco, California, to be sold in two tranches for $311 million (classified as held for sale as of June 30, 2016 discussed above) and $269 million, respectively. The transactions are expected to close in the second half of 2016 for the first tranche and in 2018 for the second tranche.

Net Investment in Direct Financ

Net Investment in Direct Financing Leases	6 Months Ended
	Jun. 30, 2016
Net Investment in Direct Financing Leases
Net Investment in Direct Financing Leases	NOTE 5. Net Investment in Direct Financing Leases Net investment in DFLs consisted of the following (dollars in thousands): June 30, 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 HCRMC and entered into a triple-net Master Lease and Security Agreement (the “Master Lease”) with a subsidiary (“Lessee”) of HCRMC. The Master Lease, as amended by the “HCRMC Lease Amendment” described below, is referred to herein as the “Amended Master Lease.” 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 Amended Master Lease, discussed below. 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 Master Lease 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 status and began utilizing a cash basis method of accounting in accordance with its policies. As a result of assigning an internal rating of “Watch List” to 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 at December 31, 2015. In December 2015, the Company reduced the carrying amount of its equity investment in HCRMC to zero , and beginning in January 2016, income is 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 three months ended March 31, 2015, the Company and HCRMC agreed to market for sale the real estate and operations associated with 50 non-strategic facilities 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 six months ended June 30, 2016 , the Company sold an additional 11 facilities for $62 million, bringing the total facilities sold through August 8, 2016 to 33 . Of the 17 remaining non-strategic facilities, seven are expected to close by the end of 2016 and 10 are expected to be sold in the first quarter of 2017. Contracts have been entered into with third-party purchasers with respect to the sale of 10 of the 17 properties. 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% annually 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 in connection with the nine facility purchases discussed below. 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 annually 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 December 31, 2015, HCRMC and HCP completed seven of the nine facility purchases for $183 million. Through March 31, 2016, HCRMC and HCP completed the remaining two facility purchases for $92 million, bringing the nine facility purchases to an aggregate $275 million, the proceeds of which were used to settle the Tranche A DRO discussed above. Following the purchase of a facility, the Lessee leases such facility from the Company pursuant to the Amended Master Lease. The nine facilities initially 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 June 30, 2016 and 2015 , the Company recognized DFL income of $116 million and $140 million, respectively, and received cash payments of $116 million and $118 million, respectively, from the HCRMC DFL investments. During the six months ended June 30, 2016 and 2015 , the Company recognized DFL income of $229 million and $292 million, respectively, and received cash payments of $229 million and $249 million, respectively, from the HCRMC DFL investments. During the three and six months ended June 30, 2015 , the Company recognized a total of $22 million and $43 million, respectively, of net accretion related to its HCRMC DFL investments. No accretion related to its HCRMC DFL investments has been recognized in 2016 due to the Company utilizing a cash basis method of accounting beginning January 1, 2016. The carrying value of the HCRMC DFL investments was $5.1 billion and $5.2 billion at June 30, 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 of up to $2 billion, if all the assets were sold within 10 years. At the time of acquisition, 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. In June 2016, the U.S. Department of the Treasury issued proposed regulations that would change the holding period back to 10 years, but effective only for conversion transactions after August 8, 2016. As currently proposed, these regulations will not impact the properties in the HCRMC DFL as the HCRMC conversion transaction occurred on April 7, 2011. However, certain states still require a 10 -year holding period and, as such, the assets are still subject to state built-in gain tax. As of March 31, 2016, the Company determined that it may sell assets during the next five years and, therefore, recorded a deferred tax liability of $49 million representing its estimated exposure to state built-in gain tax. On April 20, 2015, the U.S. Department of Justice (“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. In June 2016, the court approved the parties’ joint discovery plan, which provides for discovery to be completed by February 2017. The court has not yet issued a scheduling order setting forth dates for summary judgment motions, other pre-trial motions or a trial date. 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 1, 7, 11 and 17 for additional discussion of HCRMC. DFL Internal Ratings The following table summarizes the Company’s internal ratings for DFLs at June 30, 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 when cash is received utilizing a cash basis method of accounting in accordance with its policies. During the three months ended June 30, 2016 and 2015 , the Company recognized DFL income of $4 million and $5 million, respectively, and received cash payments of $5 million and $6 million, respectively, from the DFL Portfolio. During the six months ended June 30, 2016 and 2015 , the Company recognized DFL income of $8 million and $9 million, respectively, and received cash payments of $10 million and $11 million, respectively, from the DFL Portfolio. The carrying value of the DFL Portfolio was $363 million and $366 million at June 30, 2016 and December 31, 2015 , respectively.

Loans Receivable

Loans Receivable	6 Months Ended
	Jun. 30, 2016
Loans Receivable.
Loans Receivable	NOTE 6. Loans Receivable The following table summarizes the Company’s loans receivable (in thousands): June 30, 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 June 30, 2016 , included £280 million ( $376 million) outstanding and £3 million ( $4 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 June 30, 2016 , the Company had £40 million ( $53 million) remaining under its commitments to fund development projects and capital expenditures under its U.K. development projects. (3) At June 30, 2016 , the Company had $1 million remaining of commitments to fund development projects and capital expenditures under its senior housing development loan program. Loans Receivable Internal Ratings The following table summarizes the Company’s internal ratings for loans receivable at June 30, 2016 (dollars in thousands): Carrying Percentage of Internal Ratings Investment Type Amount Loan Portfolio Performing Loans Watch List Loans Workout Loans Real estate secured $ 11 $ $ — $ — Other secured 89 — — $ 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 spin-off of 36 properties into a separate joint venture. In return, the Company retained security over the spin-off properties for a period of two years. During the year ended December 31, 2015, the Company received paydowns of £34 million ( $52 million). At June 30, 2016 , the HC-One Facility had an outstanding balance of $372 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 June 30, 2016 , the facility had an outstanding balance of $256 million at an 11.5% blended interest rate and was subordinate to $ 379 million of senior mortgage debt.

Investments in and Advances to

Investments in and Advances to Unconsolidated Joint Ventures	6 Months Ended
	Jun. 30, 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 June 30, 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. (5) Includes the following unconsolidated 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. T he following tables summarize combined financial information for the Company’s equity method investments (in thousands): June 30, 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 $43 million, as of June 30, 2016 , is attributable to goodwill, real estate, capital lease obligations, deferred tax assets and lease-related net intangibles. Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Total revenues $ $ $ $ Income (loss) from discontinued operations Net loss 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 $15 million and $30 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 and six months ended June 30, 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 is recognized only if cash distributions are received from HCRMC (see Notes 1 and 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	6 Months Ended
	Jun. 30, 2016
Intangibles
Intangibles	NOTE 8. Intangibles At June 30, 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 $970 million and $984 million, respectively. At June 30, 2016 and December 31, 2015 , the accumulated amortization of intangible assets was $419 million and $380 million, respectively. At June 30, 2016 and December 31, 2015 , gross intangible lease liabilities, comprised of below market tenant lease intangibles and above market ground lease intangibles, were $155 million and $156 million, respectively. At June 30, 2016 and December 31, 2015 , the accumulated amortization of intangible liabilities was $106 million and $100 million, respectively.

Other Assets

Other Assets	6 Months Ended
	Jun. 30, 2016
Other Assets [Abstract]
Other Assets	NOTE 9. Other Assets The following table summarizes the Company’s other assets (in thousands): June 30, December 31, 2016 2015 Straight-line rent receivables, net of allowance of $31,121 and $33,648 , respectively $ $ Marketable debt securities, net Leasing costs and inducements, net Goodwill Other Total other assets $ $ 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, were 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, reducing the carrying value to $174 million (£111 million) and $100 million (£66 million), respectively. The fair value was based on quoted prices; however as the Four Seasons Notes are not actively traded, these prices were considered to be Level 2 measurements within the fair value hierarchy. In determining whether a credit loss existed and in calculating the fair value, the Company also evaluated Four Seasons’ ability to repay the Four Seasons Notes according to their contractual terms based on its estimate of future cash flows which inputs included forecasted revenues, capital expenditures, operating expenses, care home occupancy and continued implementation of Four Seasons’ business plan, including executing on its business line segmentation and continuing to invest in its core portfolio, which information was consistent with the results of the valuation technique used by the Company in determining whether a credit loss existed and calculating the fair value of the Four Seasons Notes. 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 continue to reduce the carrying value of the Four Seasons Notes during the related period. Accordingly, the Company applied the contractual interest payments received in both December 2015 (£8 million or $13 million) and June 2016 (£8 million or $13 million) against the principal balance. This treatment reduced the carrying value of the Four Seasons Notes to £58 million ($85 million) and £50 million ($66 million) at December 31, 2015 and June 30, 2016, respectively.

Debt

Debt	6 Months Ended
	Jun. 30, 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 on 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 June 30, 2016 , the margin on the Facility was 1.05% , and the facility fee was 0.20% . 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 June 30, 2016 , the Company had $869 million, including £275 million ( $369 million), outstanding under the Facility with a weighted average effective interest rate of 1.85% . In July 2016, the Company exercised a one -year extension option on its £137 million ($184 million at June 30, 2016 ), four -year unsecured term loan that it entered into on July 30, 2012 (the “2012 Term Loan”). Based on the Company’s credit ratings at June 30, 2016, the 2012 Term Loan accrues interest at a rate of GBP LIBOR plus 1.40% . The Company also has a £220 million ($295 million at June 30, 2016) four -year unsecured term loan that accrues interest at a rate of GBP LIBOR plus 1.15% , subject to adjustments based on the Company’s credit ratings. 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 1.5x . The Facility and term loans also require a Minimum Consolidated Tangible Net Worth of $9.5 billion at June 30, 2016 . At June 30, 2016 , the Company was in compliance with each of these restrictions and requirements. Senior Unsecured Notes At June 30, 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 June 30, 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 Six months ended June 30, 2016: February 1, 2016 $ % Year ended December 31, 2015: March 1, 2015 $ % June 8, 2015 $ % Mortgage Debt At June 30, 2016 , the Company had mortgage debt outstanding with an aggregate principal balance of $688 million, which is secured by 40 healthcare facilities (including redevelopment properties) with a carrying value of $944 million. 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 June 30, 2016 (in thousands): Senior Bank Line of Unsecured Mortgage Year Credit (1) Term Loans (2) Notes (3) Debt (4) Total (5) 2016 (six months) $ — $ — $ $ $ 2017 — 2018 — 2019 — 2020 — — Thereafter — — (Discounts), premiums and debt costs, net — $ $ $ $ $ (1) Includes £275 million ( $369 million) translated into U.S. dollars (“USD”). (2) Represents £357 million translated into USD. Reflects a one-year extension option on the 2012 Term Loan that was exercised in July 2016. (3) Effective 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) Effective interest rates on the mortgage debt ranged from 3.08% to 8.23% with a weighted average effective interest rate of 6.06% and a weighted average maturity of three years. (5) Excludes $ 93 million of other debt that represents Life Care Bonds and Demand Notes (each as defined below) that have no scheduled maturities. Other Debt At June 30, 2016 , the Company had $65 million of non-interest bearing life care bonds at two of its CCRCs and non-interest bearing occupancy fee deposits at three 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 June 30, 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	6 Months Ended
	Jun. 30, 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. Except as described below, the Company is not aware of any other legal proceedings or claims that it believes may have, individually or taken together, a material adverse effect on the Company’s financial condition, results of operations or cash flows. The Company’s policy is to expense legal costs as they are incurred. On May 9, 2016, a purported stockholder of the Company filed a putative class action complaint, Boynton Beach Firefighters’ Pension Fund v. HCP, Inc., et al. , Case No. 3:16-cv-01106-JJH, in the U.S. District Court for the Northern District of Ohio against the Company, certain of its officers, HCRMC, and certain of its officers, asserting violations of the federal securities laws. The suit asserts claims under sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and alleges that the Company made certain false or misleading statements relating to the value of and risks concerning its investment in HCRMC by allegedly failing to disclose that HCRMC had engaged in billing fraud, as alleged by the DOJ in a pending suit against HCRMC arising from the False Claims Act. The DOJ lawsuit against HCRMC is described in greater detail in Note 5. As the Boynton Beach action is in its early stages and a lead plaintiff has not yet been named, the defendants have not yet responded to the complaint. The Company believes the suit to be without merit and intends to vigorously defend against it. On June 16, 2016 and July 5, 2016, purported stockholders of the Company filed two derivative actions, respectively Subodh v. HCR ManorCare Inc., et al. , Case No. 30-2016-00858497-CU-PT-CXC and Stearns v. HCR ManorCare, Inc., et al. , Case No. 30-2016-00861646-CU-MC-CJC, in the Superior Court of California, County of Orange, against certain of the Company’s current and former directors and officers and HCRMC. The Company is named as a nominal defendant. Both derivative actions allege that the defendants engaged in various acts of wrongdoing, including, among other things, breaching fiduciary duties by publicly making false or misleading statements of fact regarding HCRMC’s finances and prospects, and failing to maintain adequate internal controls. As the Subodh and Stearns actions are in the early stages, the defendants are in the process of evaluating the suits and have not yet responded to the complaints. On June 9, 2016, the Company received a letter from a private law firm, acting on behalf of its client, a purported stockholder of the Company, asserting substantially the same allegations made in the Subodh and Stearns matters discussed above. The letter demands that the Company’s Board of Directors take action to assert the Company’s rights. The Board of Directors is in the process of evaluating the demand letter. Commitments for Capital Additions Under the terms of the Amended Master Lease with HCRMC, the Company is required through April 1, 2019, upon the Lessee’s request, to provide the Lessee an amount to fund Capital Additions Costs (as defined in the Amended Master Lease) approved by the Company, in the Company’s reasonable discretion, such amount not to exceed $100 million in the aggregate (“Capital Addition Financing”), but the Company is not obligated to advance more than $50 million in Capital Addition Financing in any single lease year. In connection with any Capital Addition Financing, the minimum rent allocated to the applicable property will be increased by an amount equal to the product of: (i) the amount disbursed on account of the Capital Addition Financing for the applicable property times (ii) at the time of any such disbursement, the greater of (a) 7.75% and (b) 500 basis points in excess of the then current 10-year Treasury Rate. Any such Capital Addition Financing shall be structured in a REIT tax-compliant fashion. Through August 8, 2016, no amounts have been funded by the Company.

Equity

Equity	6 Months Ended
	Jun. 30, 2016
Equity
Equity	NOTE 12. Equity Common Stock The following table summarizes the Company’s common stock cash dividends declared in 2016 : Amount Dividend Declaration Date Record Date Per Share Payable Date January 28 February 8 $ February 23 April 27 May 9 May 24 July 28 August 8 August 23 The following table summarizes the Company’s other common stock activities (shares in thousands): Six Months Ended June 30, 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 table summarizes the Company’s accumulated other comprehensive loss (in thousands): June 30, December 31, 2016 2015 Cumulative foreign currency translation adjustment $ $ Unrealized losses on cash flow hedges, net Supplemental Executive Retirement Plan minimum liability Unrealized gains on available for sale securities Total accumulated other comprehensive loss $ $ Noncontrolling Interests At June 30, 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 June 30, 2016 , the carrying and fair values of these DownREIT units were $181 million and $207 million, respectively. See Note 15 for the supplemental schedule of non-cash financing activities.

Segment Disclosures

Segment Disclosures	6 Months Ended
	Jun. 30, 2016
Segment Disclosures
Segment Disclosures	NOTE 13. Segment Disclosures The Company evaluates its business and makes resource allocations based on its five reportable 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 six months ended June 30, 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 and related assets 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. The following tables summarize information for the reportable segments (in thousands): For the three months ended June 30, 2016 : Senior Post-acute/ Life Medical Corporate Housing Skilled Nursing Science Office Hospital Non-segment 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 — — — — — Gain on sales of real estate, net — — Other income, net — — — — — Income tax benefit — — — — — Equity (loss) income in unconsolidated joint ventures, excluding adjusted (cash) NOI — — Net income (loss) $ $ $ $ $ $ $ For the three months ended June 30, 2015 : Senior Post-acute/ Life Medical Corporate Housing Skilled Nursing Science Office Hospital Non-segment 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 — — — — — Impairments — — — Gain on sales of real estate, net — — — — — Other income, net — — — — — Income tax benefit — — — — — Equity (loss) income in unconsolidated joint ventures, excluding adjusted (cash) NOI — Net income (loss) $ $ $ $ $ $ $ For the six months ended June 30, 2016 : Senior Post-acute/ Life Medical Corporate Housing Skilled nursing Science Office Hospital Non-segment 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 — — — — — Gain on sales of real estate, net — — Other income, net — — — — — Income tax expense — — — — — Equity (loss) income in unconsolidated joint ventures, excluding adjusted (cash) NOI — Net income (loss) $ $ $ $ $ $ $ For the six months ended June 30, 2015 : Senior Post-acute/ Life Medical Corporate Housing Skilled nursing Science Office Hospital Non-segment 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 — — — — — Impairments — — — Gain on sales of real estate, net — — — — — Other income, net — — — — — Income tax benefit — — — — — Equity (loss) income in unconsolidated joint ventures, excluding adjusted (cash) NOI — Net income (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. T he following table summarizes the Company’s assets by segment (in thousands): June 30, 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 and related assets held for sale, net Other non-segment assets Total assets $ $ At both June 30, 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	6 Months Ended
	Jun. 30, 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 June 30, Six Months Ended June 30, 2016 2015 2016 2015 Numerator - Basic 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 $ $ $ $ Numerator - Dilutive Net income (loss) applicable to common shares $ $ $ $ Add: distributions on dilutive convertible units — — — Dilutive net income (loss) available to common shares $ $ $ $ Denominator Basic weighted average common shares Dilutive potential common shares - equity awards — Dilutive potential common shares - DownREIT units — — — 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 1.2 million and 0.9 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 June 30, 2016 and 2015, respectively, were not included in the Company’s earnings per share calculations because they are anti-dilutive. Restricted stock and performance restricted stock units representing 0.4 million shares of common stock during the three months ended June 30, 2016 and 2015 were not included because they are anti-dilutive. Additionally, 1.7 million shares issuable upon conversion of 1.7 million DownREIT units during the three months ended June 30, 2016 were not included because they are anti-dilutive. During the three months ended June 30 2015, 6 million shares issuable upon conversion of 4 million DownREIT units were not included because they are anti-dilutive.

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	6 Months Ended
	Jun. 30, 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): Six Months Ended June 30, 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 Non-cash acquisitions and dispositions settled with receivables and restricted cash held in connection with Section 1031 transactions 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 and other liabilities, net assumed in connection with the RIDEA III acquisition — Noncontrolling interest issued in connection with real estate acquisitions — Noncontrolling interest disposed in connection with real estate sales — Other liabilities assumed with real estate acquisitions Unrealized gains (losses) on available-for-sale securities and derivatives designated as cash flow hedges, net

Variable Interest Entities

Variable Interest Entities	6 Months Ended
	Jun. 30, 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 June 30, 2016 , the Company had investments in: (i) four unconsolidated VIE joint ventures, (ii) 358 properties leased to VIE tenants, (iii) marketable debt securities of a VIE and (iv) a loan to a VIE borrower. The Company has determined that it is not the primary beneficiary of and therefore 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 (HCRMC, CCRC OpCo, Vintage Park Development JV and the LLC investment discussed below), it has no formal involvement in these VIEs beyond its investments. The Company leases 310 properties to, and has an approximately 9% ownership interest 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 holds a 49% ownership interest in CCRC OpCo, which operates senior housing properties in a RIDEA structure and 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, debt service payments and capital expenditures for the properties, 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 from debt service payments, capital expenditures, and rental costs and operating expenses incurred to manage such facilities). The Company holds an 85% ownership interest in Vintage Park Development JV (see Note 7), which has been identified as a VIE as power is shared with a member that does not have a substantive equity investment at risk. 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 its 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 substantive participating rights or kick-out rights over the managing member. The assets and liabilities of the entity primarily consist of those associated with its 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). In addition to the properties leased to HCRMC, the Company leases 48 properties to a total of seven tenants that have also 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 commercial mortgage-backed securities (“CMBS”) issued by Federal Home Loan Mortgage Corporation (commonly referred to as 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 Company holds Four Seasons Notes (see Note 9) and a portion of Four Seasons’ 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 classification of the related assets and liabilities and the maximum loss exposure as a result of the Company’s involvement with these VIEs at June 30, 2016 are as follows (in thousands): Maximum Loss Carrying VIE Type Exposure (1) Asset/Liability Type Amount HCRMC (2) $ Net investment in DFLs and investments in unconsolidated joint ventures $ VIE tenants—DFLs (2) Net investment in DFLs VIE tenants—operating leases (2) 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 investment Marketable debt and cost method investment (1) The Company’s maximum loss exposure represents the aggregate carrying amount of such investments (including accrued interest). (2) 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 June 30, 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, also classifies RIDEA I PropCo as a VIE due to the non-managing member lacking substantive participation 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 4 for additional discussion of pending 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. The Company has historically classified RIDEA III OpCo as a VIE and, as a result of the adoption of ASU 2015-02, also classifies RIDEA III PropCo as a VIE due to the non-managing member lacking substantive participation 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 MOBs (“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 lacking substantive participation rights in the management of 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 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 lacking substantive participation 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). DownREITs . The Company holds a controlling ownership interest in and is the managing member of five DownREITs (see Note 12). Upon adoption of ASU 2015-02, the Company classified the DownREITs as VIEs due to the non-managing members lacking substantive participation rights in the management of the DownREITs or kick-out rights over the managing member. The Company consolidates the DownREITs 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 DownREITs primarily consist of leased properties (net real estate), rents receivable, and cash and cash equivalents; their obligations primarily consist of debt service payments and capital expenditures for the properties. Assets generated by the DownREITs (primarily from resident rents) may only be used to settle their 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) lacking substantive participation 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. The assets of the Partnerships primarily consist of leased properties (net real estate), rents receivable, and cash and cash equivalents; their 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 their 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 as the primary beneficiary because 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 a 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	6 Months Ended
	Jun. 30, 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 credit 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: Percentage of Percentage of Senior Housing Gross Assets Senior Housing Revenues June 30, December 31, Three Months Ended June 30, Six Months Ended June 30, Operators 2016 2015 2016 2015 2016 2015 Brookdale % % % % % % HCRMC % % % % % % Percentage of Post-Acute/ Percentage of Post-Acute/ Skilled Nursing Gross Assets Skilled Nursing Revenues June 30, December 31, Three Months Ended June 30, Six Months Ended June 30, Operators 2016 2015 2016 2015 2016 2015 HCRMC % % % % % % Percentage of Percentage of Total Company Gross Assets Total Company Revenues June 30, December 31, Three Months Ended June 30, Six Months Ended June 30, Operators 2016 2015 2016 2015 2016 2015 HCRMC % % % % % % Brookdale % % % % % % The following tables summarize HCRMC’s consolidated financial information (in millions): June 30, 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 Redeemable preferred stock Total equity Total liabilities and equity $ $ Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Revenues $ $ $ $ Operating, general and administrative expense Depreciation and amortization expense Interest expense Other income, net Loss on disposal of assets — — Impairment — — (Loss) income from continuing operations before income tax benefit (expense) Income tax benefit (expense) (Loss) income from continuing operations Loss from discontinued operations, net of taxes — Net (loss) income $ $ $ $ As of June 30, 2016 , Brookdale provided comprehensive facility management and accounting services with respect to 107 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 renewal periods. 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 annual reports containing audited financial information and quarterly reports containing unaudited financial information with the SEC. 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 on the SEC’s website at www.sec.gov. To mitigate the credit risk of leasing properties to certain 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	6 Months Ended
	Jun. 30, 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 June 30, 2016 in the consolidated balance sheets (in thousands): Financial Instrument Fair Value Level 1 Level 2 Level 3 Marketable equity securities $ $ $ — $ — Interest-rate swap liabilities — — Currency swap assets — — Warrants — — Recognized gains and losses are recorded in other income, net on the Company’s consolidated statements of operations. During the six months ended June 30, 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 following table summarizes the carrying values and fair values of the Company’s financial instruments (in thousands): June 30, 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	6 Months Ended
	Jun. 30, 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 June 30, 2016 (dollars and British pound sterling (“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% $ $ January 2015 (4) October 2017 Cash Flow % 1 Month GBP LIBOR+0.975% £ $ Foreign currency: January 2015 (5) 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 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 June 30, 2016 , the Company does not anticipate non-performance by the counterparties to its outstanding derivative contracts. As of June 30, 2016, the Company has £268 million of its GBP-denominated borrowings under the Facility and 2012 Term Loan designated as a hedge of a portion of the Company’s net investments in GBP-functional subsidiaries to mitigate its exposure to fluctuations in the GBP to USD exchange rate. For instruments that are designated and qualify as net investment hedges, the variability in the foreign currency to USD exchange rate of the instrument is recorded as part of the cumulative translation adjustment component of accumulated other comprehensive income (loss). Accordingly, the remeasurement value of the designated £268 million GBP-denominated borrowings due to fluctuations in the GBP to USD exchange rate are reported in accumulated other comprehensive income (loss) as the hedging relationship is considered to be effective. The cumulative balance of the remeasurement value will be reclassified to earnings when the hedged investment is sold or substantially liquidated. During the three and six months ended June 30, 2016 , the Company determined a portion of a cash flow hedge was ineffective and reclassified $0.2 million and $0.3 million, respectively, of unrealized gains related to this interest-rate swap contract into other income, net. During the three and six months ended June 30, 2015, the Company determined a portion of a cash flow hedge was ineffective and reclassified $0.2 million and $0.3 million, respectively, 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 June 30, 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. To illustrate the effect of movements in interest rates 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 January 2015 October 2017 Foreign currency: January 2015 October 2017

Summary of Significant Accoun27

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 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 and six months ended June 30, 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 SEC.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016 ‑13, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 is intended to improve financial reporting by requiring timelier recognition of credit losses on loans and other financial instruments held by financial institutions and other organizations. ASU 2016-13 is effective for fiscal years, and interim periods within, beginning after December 15, 2019. Early adoption is permitted for fiscal years, and interim periods within, beginning after December 15, 2018. The Company is evaluating the impact of the adoption of ASU 2016 ‑13 on January 1, 2020 to its consolidated financial position or results of operations. In May 2016, the FASB issued ASU No. 2016-12, Narrow-Scope Improvements and Practical Expedients (“ASU 2016-12”). The amendments in ASU 2016-12 do not change the core principles of the guidance in the new revenue standard described in ASU No. 2014-09 below. Rather, the amendments in ASU 2016-12 provide practical expedients and improvements on the previously narrow scope of the standard. ASU 2016-12 is effective for fiscal years, and interim periods within, beginning after December 15, 2017. Early adoption is permitted at the original effective date of the new revenue standard (January 1, 2017). The Company is evaluating the impact of the adoption of ASU 2016-12 on January 1, 2018 to its consolidated financial position or results of operations. In March 2016, the FASB issued 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 accounting for share-based payment transactions, including 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 at the original effective date of the new revenue standard described in ASU No. 2014-09 below (January 1, 2017). 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 requirements under current accounting guidance, (ii) eliminate current real estate specific lease provisions and (iii) modify the classification criteria and accounting for sales-type leases for lessors. ASU 2016-02 is effective for fiscal years, and interim periods within, 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”). ASU 2016-01 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 updates to 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 (see Note 16). 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 within, beginning after December 15, 2017. Early adoption is permitted for annual periods, and interim periods within, beginning after December 15, 2016. A reporting entity may apply the amendments in ASU 2014-09 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 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. Real estate and related assets held for sale, net and intangible liabilities related to assets held for sale, net have been reclassified on the consolidated balance sheets (see Note 4).

Real Estate Property Investme28

Real Estate Property Investments (Tables)	6 Months Ended
	Jun. 30, 2016
Real Estate Property Investments
Schedule of real estate acquisitions (in thousands)	A summary of real estate acquisitions for the six months ended June 30, 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 six months ended June 30, 2015 follows (in thousands): Consideration Assets Acquired Liabilities Noncontrolling Net Segment Cash Paid Assumed Interest Real Estate Intangibles Senior housing $ (1) $ $ $ $ Post-acute/skilled nursing (1) — — Medical office — $ $ $ $ $ (1) Includes £174 million ($254 million) of the Company’s HC-One Facility (see Note 6) converted to fee ownership in a portfolio of 36 care homes located throughout the United Kingdom (“U.K.”).
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 data): Three Months Ended Six Months Ended June 30, 2015 June 30, 2015 Revenues $ $ Net income (loss) Net income (loss) applicable to HCP, Inc. Basic earnings per common share Diluted earnings per common share
Schedule of capital improvements (in thousands)	The following table summarizes the Company’s funding for construction, tenant and other capital improvements (in thousands): Six Months Ended June 30, Segment 2016 2015 Senior housing $ $ Post-acute/skilled nursing Life science Medical office Hospital — $ $

Net Investment in Direct Fina29

Net Investment in Direct Financing Leases (Tables)	6 Months Ended
	Jun. 30, 2016
Loans Receivable:
Schedule of components of net investment in DFLs (dollars in thousands)	Net investment in DFLs consisted of the following (dollars in thousands): June 30, 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 June 30, 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	6 Months Ended
	Jun. 30, 2016
Loans Receivable:
Schedule of loans receivable (in thousands)	The following table summarizes the Company’s loans receivable (in thousands): June 30, 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 June 30, 2016 , included £280 million ( $376 million) outstanding and £3 million ( $4 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 June 30, 2016 , the Company had £40 million ( $53 million) remaining under its commitments to fund development projects and capital expenditures under its U.K. development projects. (3) At June 30, 2016 , the Company had $1 million remaining of commitments to fund development projects and capital expenditures under its 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 June 30, 2016 (dollars in thousands): Carrying Percentage of Internal Ratings Investment Type Amount Loan Portfolio Performing Loans Watch List Loans Workout Loans Real estate secured $ 11 $ $ — $ — Other secured 89 — — $ 100 $ $ — $ —

Investments in and Advances t31

Investments in and Advances to Unconsolidated Joint Ventures (Tables)	6 Months Ended
	Jun. 30, 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 June 30, 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. (5) Includes the following unconsolidated 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% ). Includes three unconsolidated joint ventures.
Summarized combined financial information for equity method investments (in thousands)	The following tables summarize combined financial information for the Company’s equity method investments (in thousands): June 30, 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 $43 million, as of June 30, 2016 , is attributable to goodwill, real estate, capital lease obligations, deferred tax assets and lease-related net intangibles. Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Total revenues $ $ $ $ Income (loss) from discontinued operations Net loss 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 $15 million and $30 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 and six months ended June 30, 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)	6 Months Ended
	Jun. 30, 2016
Other Assets [Abstract]
Schedule of other assets (in thousands)	The following table summarizes the Company’s other assets (in thousands): June 30, December 31, 2016 2015 Straight-line rent receivables, net of allowance of $31,121 and $33,648 , respectively $ $ Marketable debt securities, net Leasing costs and inducements, net Goodwill Other Total other assets $ $

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jun. 30, 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 unsecured 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 Six months ended June 30, 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 June 30, 2016 (in thousands): Senior Bank Line of Unsecured Mortgage Year Credit (1) Term Loans (2) Notes (3) Debt (4) Total (5) 2016 (six months) $ — $ — $ $ $ 2017 — 2018 — 2019 — 2020 — — Thereafter — — (Discounts), premiums and debt costs, net — $ $ $ $ $ (1) Includes £275 million ( $369 million) translated into U.S. dollars (“USD”). (2) Represents £357 million translated into USD. Reflects a one-year extension option on the 2012 Term Loan that was exercised in July 2016. (3) Effective 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) Effective interest rates on the mortgage debt ranged from 3.08% to 8.23% with a weighted average effective interest rate of 6.06% and a weighted average maturity of three years. (5) Excludes $ 93 million of other debt that represents Life Care Bonds and Demand Notes (each as defined below) that have no scheduled maturities.

Equity (Tables)

Equity (Tables)	6 Months Ended
	Jun. 30, 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 July 28 August 8 August 23
Schedule of company's other common stock activities (shares in thousands)	The following table summarizes the Company’s other common stock activities (shares in thousands): Six Months Ended June 30, 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 table summarizes the Company’s accumulated other comprehensive loss (in thousands): June 30, December 31, 2016 2015 Cumulative foreign currency translation adjustment $ $ Unrealized losses on cash flow hedges, net Supplemental Executive Retirement Plan minimum liability Unrealized gains on available for sale securities Total accumulated other comprehensive loss $ $

Segment Disclosures (Tables)

Segment Disclosures (Tables)	6 Months Ended
	Jun. 30, 2016
Segment Disclosures
Summary financial information of reportable segment (in thousands)	The following tables summarize information for the reportable segments (in thousands): For the three months ended June 30, 2016 : Senior Post-acute/ Life Medical Corporate Housing Skilled Nursing Science Office Hospital Non-segment 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 — — — — — Gain on sales of real estate, net — — Other income, net — — — — — Income tax benefit — — — — — Equity (loss) income in unconsolidated joint ventures, excluding adjusted (cash) NOI — — Net income (loss) $ $ $ $ $ $ $ For the three months ended June 30, 2015 : Senior Post-acute/ Life Medical Corporate Housing Skilled Nursing Science Office Hospital Non-segment 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 — — — — — Impairments — — — Gain on sales of real estate, net — — — — — Other income, net — — — — — Income tax benefit — — — — — Equity (loss) income in unconsolidated joint ventures, excluding adjusted (cash) NOI — Net income (loss) $ $ $ $ $ $ $ For the six months ended June 30, 2016 : Senior Post-acute/ Life Medical Corporate Housing Skilled nursing Science Office Hospital Non-segment 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 — — — — — Gain on sales of real estate, net — — Other income, net — — — — — Income tax expense — — — — — Equity (loss) income in unconsolidated joint ventures, excluding adjusted (cash) NOI — Net income (loss) $ $ $ $ $ $ $ For the six months ended June 30, 2015 : Senior Post-acute/ Life Medical Corporate Housing Skilled nursing Science Office Hospital Non-segment 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 — — — — — Impairments — — — Gain on sales of real estate, net — — — — — Other income, net — — — — — Income tax benefit — — — — — Equity (loss) income in unconsolidated joint ventures, excluding adjusted (cash) NOI — Net income (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)	The following table summarizes the Company’s assets by segment (in thousands): June 30, 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 and related assets held for sale, net Other non-segment assets Total assets $ $ At both June 30, 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 (Tabl

Earnings Per Common Share (Tables)	6 Months Ended
	Jun. 30, 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 June 30, Six Months Ended June 30, 2016 2015 2016 2015 Numerator - Basic 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 $ $ $ $ Numerator - Dilutive Net income (loss) applicable to common shares $ $ $ $ Add: distributions on dilutive convertible units — — — Dilutive net income (loss) available to common shares $ $ $ $ Denominator Basic weighted average common shares Dilutive potential common shares - equity awards — Dilutive potential common shares - DownREIT units — — — Diluted weighted average common shares Earnings per common share Basic $ $ $ $ Diluted $ $ $

Supplemental Cash Flow Inform37

Supplemental Cash Flow Information (Tables)	6 Months Ended
	Jun. 30, 2016
Supplemental Cash Flow Information
Supplemental cash flow information (in thousands)	The following table provides supplemental cash flow information (in thousands): Six Months Ended June 30, 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 Non-cash acquisitions and dispositions settled with receivables and restricted cash held in connection with Section 1031 transactions 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 and other liabilities, net assumed in connection with the RIDEA III acquisition — Noncontrolling interest issued in connection with real estate acquisitions — Noncontrolling interest disposed in connection with real estate sales — Other liabilities assumed with real estate acquisitions Unrealized gains (losses) on available-for-sale securities and derivatives designated as cash flow hedges, net

Variable Interest Entities (Tab

Variable Interest Entities (Tables)	6 Months Ended
	Jun. 30, 2016
Variable Interest Entities
Schedule of Variable Interest Entities (in thousands)	Maximum Loss Carrying VIE Type Exposure (1) Asset/Liability Type Amount HCRMC (2) $ Net investment in DFLs and investments in unconsolidated joint ventures $ VIE tenants—DFLs (2) Net investment in DFLs VIE tenants—operating leases (2) 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 investment Marketable debt and cost method investment (1) The Company’s maximum loss exposure represents the aggregate carrying amount of such investments (including accrued interest). (2) 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)	6 Months Ended
	Jun. 30, 2016
Summary of consolidated financial information (in millions)	June 30, 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 Redeemable preferred stock Total equity Total liabilities and equity $ $ Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Revenues $ $ $ $ Operating, general and administrative expense Depreciation and amortization expense Interest expense Other income, net Loss on disposal of assets — — Impairment — — (Loss) income from continuing operations before income tax benefit (expense) Income tax benefit (expense) (Loss) income from continuing operations Loss 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 June 30, December 31, Three Months Ended June 30, Six Months Ended June 30, Operators 2016 2015 2016 2015 2016 2015 HCRMC % % % % % % Brookdale % % % % % %
Tenants and Operators | Senior housing
Schedule of concentration of credit risk	Percentage of Percentage of Senior Housing Gross Assets Senior Housing Revenues June 30, December 31, Three Months Ended June 30, Six Months Ended June 30, Operators 2016 2015 2016 2015 2016 2015 Brookdale % % % % % % HCRMC % % % % % %
Tenants and Operators | Post-acute/skilled nursing
Schedule of concentration of credit risk	Percentage of Post-Acute/ Percentage of Post-Acute/ Skilled Nursing Gross Assets Skilled Nursing Revenues June 30, December 31, Three Months Ended June 30, Six Months Ended June 30, Operators 2016 2015 2016 2015 2016 2015 HCRMC % % % % % %

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 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 June 30, 2016 in the consolidated balance sheets (in thousands): Financial Instrument Fair Value Level 1 Level 2 Level 3 Marketable equity securities $ $ $ — $ — Interest-rate swap liabilities — — Currency swap assets — — Warrants — —
Summary of the carrying values and fair values of financial instruments (in thousands)	The following table summarizes the carrying values and fair values of the Company’s financial instruments (in thousands): June 30, 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 Instrume41

Derivative Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 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 June 30, 2016 (dollars and British pound sterling (“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% $ $ January 2015 (4) October 2017 Cash Flow % 1 Month GBP LIBOR+0.975% £ $ Foreign currency: January 2015 (5) 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 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 January 2015 October 2017 Foreign currency: January 2015 October 2017

Business (Details)

Business (Details)	1 Months Ended	3 Months Ended	6 Months Ended
	May 31, 2016facilityproperty	Mar. 31, 2017property	Dec. 31, 2016property
Number of non-strategic assets involved in sales transaction | facility	17
Forecast
Number of non-strategic assets involved in sales transaction		10	7
QCP
Number Of Properties Spin Off	338

Real Estate Property Investme43

Real Estate Property Investments (Details) $ / shares in Units, $ in Thousands, £ in Millions	Jun. 30, 2015USD ($)	Mar. 29, 2015USD ($)	Jul. 31, 2016USD ($)building	May 31, 2016USD ($)propertyitem	Jun. 30, 2015USD ($)propertyitem	Apr. 30, 2015GBP (£)	Mar. 31, 2016USD ($)	Jun. 30, 2015USD ($)$ / shares	Jun. 30, 2016USD ($)	Jun. 30, 2015GBP (£)	Jun. 30, 2015USD ($)$ / shares	Dec. 31, 2015USD ($)
Acquisition
Net termination fee revenue											$ 1,103
Real estate acquisitions
Consideration, Cash Paid									$ 94,271		734,946
Consideration, Liabilities assumed	$ 13,672				$ 13,672			$ 13,672	1,200		13,672
Consideration, Noncontrolling Interest	3,885				3,885			3,885			3,885
Assets Acquired, Real Estate	668,045				668,045			668,045	88,471		668,045
Assets Acquired, Net Intangibles	84,458				84,458			84,458	7,000		84,458
Funding for construction, tenant and other capital improvements									222,547		139,437
HC-One Facility
Real estate acquisitions
Amount of facility converted into sale-leaseback transaction						£ 174				£ 174	254,000
Senior housing
Real estate acquisitions
Consideration, Cash Paid									76,362		178,888
Consideration, Liabilities assumed	821				821			821	1,200		821
Consideration, Noncontrolling Interest	3,885				3,885			3,885			3,885
Assets Acquired, Real Estate	166,732				166,732			166,732	71,875		166,732
Assets Acquired, Net Intangibles	16,862				16,862			16,862	5,687		16,862
Funding for construction, tenant and other capital improvements									65,290		36,826
Post-acute/skilled nursing
Real estate acquisitions
Consideration, Cash Paid									17,909		178,707
Assets Acquired, Real Estate	151,663				151,663			151,663	16,596		151,663
Assets Acquired, Net Intangibles	27,044				27,044			27,044	1,313		27,044
Funding for construction, tenant and other capital improvements									4,518		2,492
Aggregate purchase price		$ 275,000					$ 92,000					$ 183,000
Life science
Real estate acquisitions
Funding for construction, tenant and other capital improvements									97,348		50,548
Life science | Subsequent event
Acquisition
Number of facilities acquired | building			2
Real estate acquisitions
Aggregate purchase price			$ 49,000
Medical office
Real estate acquisitions
Consideration, Cash Paid											377,351
Consideration, Liabilities assumed	12,851				12,851			12,851			12,851
Assets Acquired, Real Estate	349,650				349,650			349,650			349,650
Assets Acquired, Net Intangibles	40,552				40,552			40,552			40,552
Funding for construction, tenant and other capital improvements									$ 55,391		49,534
Hospital
Real estate acquisitions
Funding for construction, tenant and other capital improvements											37
RIDEA III
Acquisition
Number of facilities acquired | property				7
Number of Units Acquired | item				526
Assets Acquired, Working Capital	7,000				7,000			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								651,095			1,305,449
Net (loss) income								171,653			(61,945)
Net (loss) income applicable to HCP, Inc.								$ 168,400			$ (68,700)
Basic earnings per common share (in dollars per share) | $ / shares								$ 0.36			$ (0.15)
Diluted earnings per common share (in dollars per share) | $ / shares								$ 0.36			$ (0.15)
Real estate acquisitions
Consideration, Cash Paid	770,000
Consideration, Liabilities assumed	32,000			$ 75,000	32,000			$ 32,000			$ 32,000
Consideration, Noncontrolling Interest	29,000				29,000			29,000			29,000
Assets Acquired, Real Estate	776,000				776,000			776,000			776,000
Assets Acquired, Net Intangibles	$ 48,000				$ 48,000			$ 48,000			$ 48,000
Aggregate purchase price				$ 186,000
Stated interest rate (as a percent)				4.00%
Parent ownership percentage (as a percent)				100.00%
RIDEA III | Brookdale
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
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			6 Months Ended			12 Months Ended
	May 31, 2016USD ($)	Sep. 30, 2016USD ($)	Jun. 30, 2016USD ($)item	Jun. 30, 2015USD ($)	Dec. 31, 2016USD ($)	Jun. 30, 2016USD ($)facilitybuildingitem	Jun. 30, 2015USD ($)property	Dec. 31, 2018USD ($)	Jan. 31, 2016facility	Dec. 31, 2015USD ($)
Dispositions of Real Estate
Real estate and related assets held for sale, net			$ 330,453			$ 330,453				$ 314,126
Gain (loss) on sales of real estate			119,614	$ 61		119,614	$ 6,325
Impairment				$ 44,835			$ 523,299
Carrying value of aggregate investments			$ 12,321,266			$ 12,321,266				$ 12,198,704
Number of facilities, purchased option exercised on | facility									8
RIDEA II
Dispositions of Real Estate
Cash proceeds	$ 109,000
Note receivable	$ 636,000
Forecast
Dispositions of Real Estate
Consideration from sale of a purchase option					$ 311,000			$ 269,000
Senior housing
Dispositions of Real Estate
Number of properties disposed						2	9
Total consideration for disposition of real estate						$ 6,000	$ 60,000
Senior housing | Forecast
Dispositions of Real Estate
Total consideration for disposition of real estate		$ 22,000
Post-acute/skilled nursing
Dispositions of Real Estate
Number of properties disposed | facility						5
Life science
Dispositions of Real Estate
Number of properties classified as held for sale | item			4			4
Total consideration for disposition of real estate						$ 74,000
Skilled nursing and senior housing
Dispositions of Real Estate
Total consideration for disposition of real estate						$ 130,000
Medical office
Dispositions of Real Estate
Number of properties disposed | building						2
Total consideration for disposition of real estate						$ 19,000
HCP/CPA/Brookdale JV
Dispositions of Real Estate
Investment ownership percentage	40.00%

Net Investment in Direct Fina45

Net Investment in Direct Financing Leases (Details)	Apr. 01, 2016	Apr. 01, 2015USD ($)	Mar. 29, 2015USD ($)property	Jun. 30, 2016USD ($)property	May 31, 2016facility	Dec. 31, 2015USD ($)property	Mar. 31, 2015USD ($)	Mar. 31, 2017facilityproperty	Jun. 30, 2016USD ($)property	Mar. 31, 2016USD ($)facility	Dec. 31, 2015USD ($)property	Jun. 30, 2015USD ($)	Mar. 31, 2015USD ($)property	Dec. 31, 2016facilityproperty	Jun. 30, 2016USD ($)property	Jun. 30, 2015USD ($)	Mar. 31, 2017facility	Dec. 31, 2015USD ($)facilityproperty	Dec. 31, 2011USD ($)property	Aug. 09, 2016property	Sep. 30, 2015USD ($)	Feb. 28, 2015USD ($)	Sep. 30, 2013item
Net Investment in Direct Financing Leases
Minimum lease payments receivable				$ 25,912,425,000		$ 26,283,392,000			$ 25,912,425,000		$ 26,283,392,000				$ 25,912,425,000			$ 26,283,392,000
Estimated residual values				3,930,300,000		3,900,679,000			3,930,300,000		3,900,679,000				3,930,300,000			3,900,679,000
Less unearned income				(23,169,141,000)		(23,462,022,000)			(23,169,141,000)		(23,462,022,000)				(23,169,141,000)			(23,462,022,000)
Net investment in direct financing leases before allowance				6,673,584,000		6,722,049,000			6,673,584,000		6,722,049,000				6,673,584,000			6,722,049,000
Allowance for DFL losses				(817,040,000)		(817,040,000)			(817,040,000)		(817,040,000)				(817,040,000)			(817,040,000)
Net investment in direct financing leases				$ 5,856,544,000		$ 5,905,009,000			$ 5,856,544,000		$ 5,905,009,000				$ 5,856,544,000			$ 5,905,009,000
Properties subject to direct financing leases | property				340		348			340		348				340			348
DFL income									$ 132,100,000			$ 156,181,000			$ 260,068,000	$ 323,259,000
Number of non-strategic assets involved in sales transaction | facility					17
Number of facility sales closed | property															11			22		33
Number of properties for which sales contracts entered | property				10					10						10
Sales price															$ 62,000,000			$ 219,000,000
Federal built-in gain tax from assets sold, state term															10 years
Percentage of DFL Portfolio				100.00%					100.00%						100.00%
Forecast
Net Investment in Direct Financing Leases
Number of non-strategic assets involved in sales transaction | property								10						7
Number of facility sales closed | facility								10						7			17
Maximum
Net Investment in Direct Financing Leases
Federal and state built-in gain tax from assets sold																			$ 2,000,000,000
HCRMC
Net Investment in Direct Financing Leases
Net investment in direct financing leases						$ 5,200,000,000	$ 6,100,000,000				$ 5,200,000,000		$ 6,100,000,000					5,200,000,000			$ 6,000,000,000	$ 6,600,000,000
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			$ 68,000,000
Annual rent under Master Agreement		$ 473,000,000	$ 541,000,000
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				$ 525,000,000					$ 525,000,000						$ 525,000,000
Expected Annual Rent															19,000,000
Impairment charges related to investments in DFLs							$ 478,000,000				817,000,000
Federal and state built-in gain tax from assets sold, term																			10 years
Intention to hold the assets, term																			10 years
Federal built-in gain tax from assets sold, federal term						5 years
State built-in gain from assets sold															49,000,000
Direct Financing Lease Tranche A [Member] | HCRMC
Net Investment in Direct Financing Leases
Deferred lease obligation				275,000,000					275,000,000						$ 275,000,000
Direct Financing Lease Rental Factor, first period (as a percent)															6.90%
Expected Annual Rent															$ 19,000,000
Direct Financing Lease Tranche B [Member] | HCRMC
Net Investment in Direct Financing Leases
Deferred lease obligation				250,000,000					250,000,000						$ 250,000,000
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									4,000,000			5,000,000			$ 8,000,000	9,000,000
Cash payments received									5,000,000			6,000,000			10,000,000	11,000,000
Performing Loans
Net Investment in Direct Financing Leases
Net investment in direct financing leases				386,169,000					386,169,000						386,169,000
Watch List Loans
Net Investment in Direct Financing Leases
Net investment in direct financing leases				5,470,375,000					5,470,375,000						5,470,375,000
Senior housing
Net Investment in Direct Financing Leases
Net investment in direct financing leases				$ 1,793,743,000					$ 1,793,743,000						$ 1,793,743,000
Percentage of DFL Portfolio				31.00%					31.00%						31.00%
Senior housing | Direct Financing Leases
Net Investment in Direct Financing Leases
Net investment in direct financing leases				$ 363,000,000		$ 366,000,000			$ 363,000,000		366,000,000				$ 363,000,000			$ 366,000,000
Properties subject to direct financing leases | item																							14
Senior housing | Performing Loans
Net Investment in Direct Financing Leases
Net investment in direct financing leases				262,278,000					262,278,000						262,278,000
Senior housing | Watch List Loans
Net Investment in Direct Financing Leases
Net investment in direct financing leases				1,531,465,000					1,531,465,000						1,531,465,000
Post-acute/skilled nursing
Net Investment in Direct Financing Leases
Net investment in direct financing leases				$ 3,938,910,000					$ 3,938,910,000						$ 3,938,910,000
Number of Facilities			9							2								7
Acquisition of facility			$ 275,000,000							$ 92,000,000								$ 183,000,000
Percentage of DFL Portfolio				67.00%					67.00%						67.00%
Post-acute/skilled nursing | Watch List Loans
Net Investment in Direct Financing Leases
Net investment in direct financing leases				$ 3,938,910,000					$ 3,938,910,000						$ 3,938,910,000
Hospital
Net Investment in Direct Financing Leases
Net investment in direct financing leases				$ 123,891,000					$ 123,891,000						$ 123,891,000
Percentage of DFL Portfolio				2.00%					2.00%						2.00%
Hospital | Performing Loans
Net Investment in Direct Financing Leases
Net investment in direct financing leases				$ 123,891,000					$ 123,891,000						$ 123,891,000
HCRMC
Net Investment in Direct Financing Leases
Net investment in direct financing leases				$ 5,100,000,000		5,200,000,000			5,100,000,000		5,200,000,000				5,100,000,000			5,200,000,000
Carrying value, equity method investments						$ 0					$ 0							$ 0
DFL accretion												22,000,000			0	43,000,000
DFL income									116,000,000			140,000,000			229,000,000	292,000,000
Cash payments received									$ 116,000,000			$ 118,000,000			$ 229,000,000	$ 249,000,000
Federal built-in gain tax from assets sold, federal term				10 years

Loans Receivable (Details)

Loans Receivable (Details) $ in Thousands, £ in Millions	6 Months Ended
	Jun. 30, 2016GBP (£)	Jun. 30, 2016USD ($)	Jun. 30, 2016USD ($)	Dec. 31, 2015GBP (£)	Dec. 31, 2015USD ($)
Loans Receivable:
Mezzanine			$ 633,576		$ 660,138
Mezzanine	£ 280		376,000	£ 273	403,000
Loans receivable, other			78,889		114,322
Unamortized premiums (discounts), fees and costs			(4,369)		(5,717)
Unamortized premiums (discounts), fees and costs	3		4,000	£ 4	5,000
Loans receivable, net			$ 708,096		768,743
Remaining commitments to fund development projects	£ 40	$ 53,000
Percentage of Loan Portfolio	100.00%		100.00%
Performing Loans
Loans Receivable:
Loans receivable, net			$ 708,096
Real Estate Secured
Loans Receivable:
Loans receivable, other			78,889		114,322
Unamortized premiums (discounts), fees and costs			665		961
Loans receivable, net			$ 79,554		115,283
Remaining commitments to fund development projects		$ 1,000
Percentage of Loan Portfolio	11.00%		11.00%
Real Estate Secured | Performing Loans
Loans Receivable:
Loans receivable, net			$ 79,554
Other Secured
Loans Receivable:
Mezzanine			633,576		660,138
Unamortized premiums (discounts), fees and costs			(5,034)		(6,678)
Loans receivable, net			$ 628,542		$ 653,460
Percentage of Loan Portfolio	89.00%		89.00%
Other Secured | Performing Loans
Loans Receivable:
Loans receivable, net			$ 628,542

Loans Receivable - Other Secure

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

1 Months Ended

3 Months Ended

6 Months Ended

12 Months Ended

Dec. 31, 2015GBP (£)

Dec. 31, 2015USD ($)

Sep. 30, 2015GBP (£)property

Apr. 30, 2015GBP (£)property

Feb. 28, 2015GBP (£)

Feb. 28, 2015USD ($)

Nov. 30, 2014GBP (£)propertyitem

Nov. 30, 2014USD ($)propertyitem

Mar. 31, 2016property

Jun. 30, 2016USD ($)

Jun. 30, 2015GBP (£)

Jun. 30, 2015USD ($)

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:

Senior secured term loan

$ 688,910

$ 932,212

Loans receivable, other

78,889

114,322

Amount draw on the revolving line of credit facility

642,898

$ 186,557

Loan amount outstanding

869,078

$ 397,432

NHP[Member]

Loans Receivable:

Number of facilities | property

273

273

Number of beds acquired | item

12,500

12,500

Four Seasons Health Care

Loans Receivable:

Senior secured term loan | £

£ 40,000,000

£ 40,000,000

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

£ 174,000,000

$ 254,000

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

372,000

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

$ 379,000

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:

Payment to purchase senior secured term loan

£ 28,000,000

$ 42,000

Marketable debt security, par value | £

£ 138,500,000

Four Seasons | LIBOR

Loans Receivable:

Loan, basis spread on variable rate

6.00%

6.00%

Investments in and Advances t48

Investments in and Advances to Unconsolidated Joint Ventures - Equity Method Investments (Details) $ in Thousands	1 Months Ended			6 Months Ended
	Dec. 31, 2015USD ($)	Sep. 30, 2015USD ($)	Dec. 31, 2014USD ($)	Jun. 30, 2016USD ($)item	Mar. 30, 2015
Company owned interests in entities, accounted under equity method:
Investments in and advances to unconsolidated joint ventures	$ 605,244			$ 604,941
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				$ 459,659
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 nursing
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				$ 42,756
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				$ 2,454
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				$ 9,370
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				$ 7,121
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				$ 68,438
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				$ 4,693
Investment ownership percentage				67.00%
K&Y | Post-acute/skilled nursing
Company owned interests in entities, accounted under equity method:
Investments in and advances to unconsolidated joint ventures				$ 1,294
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				$ 563

Investments in and Advances t49

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 ($)	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)property	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)property
Summarized combined financial information for equity method investments:
Real estate, net			$ 4,470,249			$ 4,466,964		$ 4,466,964
Goodwill and other assets, net			4,935,343			4,936,866		4,936,866
Assets held for sale			94,866			67,693		67,693
Total assets			9,500,458			9,471,523		9,471,523
Capital lease obligations and mortgage debt			6,575,531			6,536,106		6,536,106
Accounts payable			1,111,350			1,161,178		1,161,178
Liabilities and mortgage debt held for sale			6,318			2,373		2,373
Other partners' capital			1,163,501			1,123,514		1,123,514
HCP's capital			643,758			648,352		648,352
Total liabilities and partners' capital			9,500,458			9,471,523		9,471,523
Combined basis difference						43,000		43,000
Total revenues						1,063,744	$ 1,122,568	2,153,655	$ 2,269,062
Income (loss) from discontinued operations						575	(11,252)	2,572	(13,902)
Net (loss) income						(25,952)	(21,528)	(37,966)	(11,730)
HCP's share of earnings						(1,067)	12,001	(1,975)	25,602
Fees earned by HCP						81	458	172	918
Distributions received by HCP						$ 2,698	2,306	$ 9,623	4,487
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 nursing
Summarized combined financial information for equity method investments:
Recharacterized DFL income to equity income							$ 15,000		$ 30,000
Subsequent Events
Investment ownership percentage						9.00%		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%		50.00%
Cash contributed		$ 27,000
Number of retirement communities | property							3		3
MBK JV | Senior housing | MBK
Subsequent Events
Number of retirement communities contributed to joint venture | property		3
Fair value of retirement communities or properties contributed		$ 126,000

Intangibles (Details)

Intangibles (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Intangibles
Gross intangible lease assets	$ 970	$ 984
Intangible assets, accumulated depreciation and amortization	419	380
Gross intangible lease liabilities	155	156
Intangible liabilities, accumulated depreciation and amortization	$ 106	$ 100

Other Assets (Details)

Other Assets (Details) $ in Thousands	1 Months Ended						6 Months Ended	12 Months Ended
	Jun. 30, 2016GBP (£)	Jun. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2012GBP (£)	Jun. 30, 2012USD ($)	Jun. 30, 2016GBP (£)	Dec. 31, 2015GBP (£)	Dec. 31, 2015USD ($)	Jun. 30, 2016USD ($)	Dec. 31, 2015USD ($)	Sep. 30, 2015GBP (£)	Sep. 30, 2015USD ($)	Jun. 30, 2015GBP (£)	Jun. 30, 2015USD ($)
Other assets
Straight-line rent receivables, net of allowance of $33,121 and $33,648, respectively										$ 379,002	$ 370,296
Allowance on straight-line rent receivables										31,121	33,648
Marketable debt securities, net										84,128	102,958
Leasing costs and inducements, net										156,303	158,708
Goodwill										50,346	50,346
Other										121,652	119,965
Total other assets										791,431	802,273
Loans receivables										708,096	768,743
Four Seasons Health Care
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	£ 50,000,000						£ 50,000,000	£ 58,000,000		$ 66,000	$ 85,000	£ 66,000,000	$ 100,000	£ 111,000,000	$ 174,000
Marketable debt security, par value | £					138,500,000
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						£ 8,000,000	$ 13,000
Annual interest rate (as a percent)							12.25%

Debt (Details)

Debt (Details) $ in Thousands, £ in Millions

Feb. 01, 2016USD ($)

Dec. 01, 2015USD ($)

Jun. 08, 2015USD ($)

May 20, 2015USD ($)

Mar. 01, 2015USD ($)

Jan. 21, 2015USD ($)

Jul. 30, 2012GBP (£)

Jul. 31, 2016

Jun. 30, 2016USD ($)

Jun. 30, 2016GBP (£)item

Jun. 30, 2016USD ($)item

Dec. 31, 2015USD ($)

Jul. 30, 2012USD ($)

Debt Instrument

Bank line of credit

$ 869,078

$ 397,432

Senior unsecured notes

8,626,559

9,120,107

Total debt before discount, net

10,736,164

(Discounts), premiums and debt costs, net

(73,727)

Debt instruments, carrying amount

10,662,437

Other debt

93,012

$ 94,445

Debt maturing in 2016

Debt Instrument

2016 (six months)

434,240

Debt maturing in 2017

Debt Instrument

2,017

1,515,759

Debt maturing in 2018

Debt Instrument

2,018

1,475,661

Debt maturing in 2019

Debt Instrument

2,019

747,334

Debt maturing in 2020

Debt Instrument

2,020

802,078

Thereafter

Debt Instrument

Thereafter

$ 5,761,092

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

Debt instrument, variable rate basis

LIBOR

Length of debt instrument extension period

1 year

Debt instrument, basis spread on variable rate (as a percent)

1.05%

Debt instrument, facility fee (as a percent)

0.20%

Line of credit facility additional aggregate amount, maximum

$ 500,000

Bank line of credit

$ 869,000

Weighted-average interest rate (as a percent)

1.85%

1.85%

Debt instrument, covenant net worth

$ 9,500,000

Line of credit, portion denominated in GBP

£ 275

369,000

Total debt before discount, net

869,078

Debt instruments, carrying amount

869,078

Bank Line of Credit | Debt maturing in 2018

Debt Instrument

2,018

869,078

Term loans

Debt Instrument

Term loans, portion denominated in GBP | £

357

Total debt before discount, net

479,130

(Discounts), premiums and debt costs, net

(1,240)

Debt instruments, carrying amount

477,890

Term loans | Debt maturing in 2017

Debt Instrument

2,017

183,868

Term loans | Debt maturing in 2019

Debt Instrument

2,019

295,262

2012 Term Loan

Debt Instrument

Extension option exercised

1 year

Debt Instrument, Face Amount

£ 137

$ 184,000

Maturity period of debt instruments

4 years

2012 Term Loan | GBP LIBOR

Debt Instrument

Debt instrument, basis spread on variable rate (as a percent)

1.40%

Unsecured term loan, GBP LIBOR plus 0.975%

Debt Instrument

Debt Instrument, Face Amount

£ 220

$ 295,000

Maturity period of debt instruments

4 years

Unsecured term loan, GBP LIBOR plus 0.975% | GBP LIBOR

Debt Instrument

Debt instrument, basis spread on variable rate (as a percent)

1.15%

Senior Unsecured Notes

Debt Instrument

Weighted-average interest rate (as a percent)

4.72%

4.72%

Senior unsecured notes

$ 8,700,000

Total debt before discount, net

8,700,000

(Discounts), premiums and debt costs, net

(73,441)

Debt instruments, carrying amount

$ 8,626,559

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 (six months)

$ 400,000

Senior Unsecured Notes | Debt maturing in 2017

Debt Instrument

2,017

750,000

Senior Unsecured Notes | Debt maturing in 2018

Debt Instrument

2,018

600,000

Senior Unsecured Notes | Debt maturing in 2019

Debt Instrument

2,019

450,000

Senior Unsecured Notes | Debt maturing in 2020

Debt Instrument

2,020

800,000

Senior Unsecured Notes | Thereafter

Debt Instrument

Thereafter

$ 5,700,000

Senior Unsecured, 3.40% notes due 2025

Debt Instrument

Debt Instrument, Face Amount

$ 600,000

Debt Instrument, Interest Rate, Stated Percentage (as a percent)

3.40%

Net proceeds from issuance of senior unsecured notes

$ 591,000

Senior Unsecured 4.0% notes due 2025

Debt Instrument

Debt Instrument, Face Amount

$ 750,000

Debt Instrument, Interest Rate, Stated Percentage (as a percent)

4.00%

Net proceeds from issuance of senior unsecured notes

$ 739,000

Senior Unsecured, 4.0% notes due 2022

Debt Instrument

Debt Instrument, Face Amount

$ 600,000

Debt Instrument, Interest Rate, Stated Percentage (as a percent)

4.00%

Net proceeds from issuance of senior unsecured notes

$ 594,000

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

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

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

Mortgage Debt

Debt Instrument

Weighted-average interest rate (as a percent)

6.06%

6.06%

Number of healthcare facilities used to secure debt | item

40

40

Debt instrument, collateral, healthcare facilities carrying value

$ 944,000,000

Total debt before discount, net

687,956

(Discounts), premiums and debt costs, net

954

Debt instruments, carrying amount

$ 688,910

Weighted-average maturity

3 years

Mortgage Debt | Minimum

Debt Instrument

Debt Instrument, Interest Rate, Stated Percentage (as a percent)

3.08%

3.08%

Mortgage Debt | Maximum

Debt Instrument

Debt Instrument, Interest Rate, Stated Percentage (as a percent)

8.23%

8.23%

Mortgage Debt | Debt maturing in 2016

Debt Instrument

2016 (six months)

$ 34,240

Mortgage Debt | Debt maturing in 2017

Debt Instrument

2,017

581,891

Mortgage Debt | Debt maturing in 2018

Debt Instrument

2,018

6,583

Mortgage Debt | Debt maturing in 2019

Debt Instrument

2,019

2,072

Mortgage Debt | Debt maturing in 2020

Debt Instrument

2,020

2,078

Mortgage Debt | Thereafter

Debt Instrument

Thereafter

61,092

Non-interest Bearing Life Care Bonds

Debt Instrument

Other debt

$ 65,000

Number of CCRC issuing non-interest life care bonds | item

2

2

Number of facilities with non-interest bearing occupancy fee deposits | item

3

3

Demand Note

Debt Instrument

Debt Instrument, Interest Rate, Stated Percentage (as a percent)

4.50%

4.50%

Other debt

$ 28,000

Commitments and Contingencies (

Commitments and Contingencies (Details)	1 Months Ended	3 Months Ended	7 Months Ended
	Jul. 05, 2016claim	Jun. 30, 2016USD ($)	Aug. 08, 2016USD ($)
Number of derivative actions filed | claim	2
HCRMC
Capital additions funded			$ 0
Capital Additions | HCRMC
Commitment for capital additions, maximum aggregate amount		$ 100,000,000
Commitment for capital additions, maximum annual amount		$ 50,000,000
Maximum rate applied to the minimum rent		7.75%
Capital Additions | 10-year Treasury Rate | HCRMC
Basis spread on variable rate applied to the minimum rent		5.00%

Equity (Details)

Equity (Details) $ / shares in Units, shares in Thousands, $ in Thousands	Jul. 28, 2016$ / shares	Apr. 27, 2016$ / shares	Jan. 28, 2016$ / shares	Jun. 30, 2016USD ($)item$ / shares	Jun. 30, 2015$ / shares	Jun. 30, 2016USD ($)item$ / sharesshares	Jun. 30, 2015USD ($)$ / sharesshares	Dec. 31, 2015USD ($)
Equity
Dividends declared per common share (in dollars per share) | $ / shares	$ 0.575	$ 0.575	$ 0.575	$ 0.575	$ 0.565	$ 1.15	$ 1.13
Company's common stock issuances
Repurchase of common stock						$ 3,874	$ 7,690
Accumulated Other Comprehensive Loss
Cumulative foreign currency translation adjustment				$ (20,577)		(20,577)		$ (19,485)
Unrealized losses on cash flow hedges, net				(6,894)		(6,894)		(7,582)
Supplemental Executive Retirement Plan minimum liability				(3,270)		(3,270)		(3,411)
Unrealized gains on available for sale securities				3		3		8
Total accumulated other comprehensive loss				(30,738)		(30,738)		(30,470)
Noncontrolling interests
DownREIT unit, carrying value				$ 180,587		$ 180,587		$ 185,608
Common Stock
Company's common stock issuances
Dividend Reinvestment and Stock Purchase Plan (in shares) | shares						1,427	1,645
Conversion of DownREIT units (in shares) | shares						120	70
Exercise of stock options (in shares) | shares						111	817
Vesting of restricted stock units (in shares) | shares						288	379
Repurchase of common stock						$ 109	$ 171
Noncontrolling Interests
Noncontrolling interests
Non-managing members DownREIT units outstanding | item				4,000,000		4,000,000
Number of DownREIT LLCs | item				5		5
DownREIT unit, carrying value				$ 181,000		$ 181,000
DownREIT unit, fair value				$ 207,000		$ 207,000

Segment Disclosures - Summary I

Segment Disclosures - Summary Information for the Reportable Segments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Segment reporting information, revenues
Rental Revenues	$ 465,106	$ 464,291	$ 922,005	$ 936,347
Resident fees and services	164,202	106,838	329,965	211,851
Operating expenses	(180,125)	(136,342)	(357,080)	(268,373)
NOI	449,183	434,787	894,890	879,825
Non-cash adjustments to NOI	(3,397)	(21,528)	(10,799)	(50,713)
Adjusted (cash) NOI	445,786	413,259	884,091	829,112
Adjusted (cash) NOI from unconsolidated joint ventures	17,570	16,418	34,614	31,962
Interest Income	32,787	35,945	50,816	69,207
Portfolio Income	496,143	465,622	969,521	930,281
Addback non-cash adjustments	3,397	21,528	10,799	50,713
Investment management fee income	81	458	172	918
Interest expense	(121,333)	(118,632)	(243,395)	(235,412)
Depreciation and amortization	(141,386)	(120,403)	(282,708)	(234,925)
General and administrative expenses	(22,793)	(28,845)	(48,292)	(53,618)
Acquisition and pursuit costs	(14,527)	(18,407)	(17,002)	(21,797)
Impairments		(44,835)		(523,299)
Gain (loss) on sales of real estate	119,614	61	119,614	6,325
Other income, net	2,280	11,055	3,502	12,779
Income tax benefit (expense)	2,003	4,563	(51,035)	4,640
Equity (loss) income in unconsolidated joint ventures, excluding adjusted (cash) NOI	(18,637)	(4,417)	(36,589)	(6,360)
Net income (loss)	304,842	167,748	424,587	(69,755)
Corporate Non-segment
Segment reporting information, revenues
Interest expense	(104,715)	(100,724)	(210,125)	(199,910)
General and administrative expenses	(22,793)	(28,845)	(48,292)	(53,618)
Acquisition and pursuit costs	(14,527)	(18,407)	(17,002)	(21,797)
Other income, net	2,280	11,055	3,502	12,779
Income tax benefit (expense)	2,003	4,563	(51,035)	4,640
Net income (loss)	(137,752)	(132,358)	(322,952)	(257,906)
Senior housing | Operating segment
Segment reporting information, revenues
Rental Revenues	131,495	123,910	260,392	251,292
Resident fees and services	164,202	106,838	329,965	211,851
Operating expenses	(117,121)	(76,514)	(233,257)	(152,024)
NOI	178,576	154,234	357,100	311,119
Non-cash adjustments to NOI	(2,502)	1,238	(8,458)	(5,175)
Adjusted (cash) NOI	176,074	155,472	348,642	305,944
Adjusted (cash) NOI from unconsolidated joint ventures	15,310	14,814	30,208	28,826
Interest Income	16,474	12,237	18,359	19,631
Portfolio Income	207,858	182,523	397,209	354,401
Addback non-cash adjustments	2,502	(1,238)	8,458	5,175
Interest expense	(11,885)	(12,198)	(23,904)	(24,288)
Depreciation and amortization	(61,257)	(48,916)	(123,124)	(95,942)
Impairments				61,466
Gain (loss) on sales of real estate	23,940	61	23,940	6,325
Equity (loss) income in unconsolidated joint ventures, excluding adjusted (cash) NOI	(17,790)	(16,774)	(35,180)	(31,452)
Net income (loss)	143,368	103,458	247,399	275,685
Post-acute/skilled nursing | Operating segment
Segment reporting information, revenues
Rental Revenues	110,125	130,895	217,315	271,471
Operating expenses	(589)	(538)	(1,153)	(1,071)
NOI	109,536	130,357	216,162	270,400
Non-cash adjustments to NOI	(173)	(19,077)	(444)	(37,160)
Adjusted (cash) NOI	109,363	111,280	215,718	233,240
Adjusted (cash) NOI from unconsolidated joint ventures	400		804
Interest Income	16,313	23,708	32,457	49,576
Portfolio Income	126,076	134,988	248,979	282,816
Addback non-cash adjustments	173	19,077	444	37,160
Interest expense	(2,475)	(2,492)	(4,805)	(4,768)
Depreciation and amortization	(3,255)	(3,210)	(6,205)	(4,469)
Impairments		(41,887)		(581,817)
Gain (loss) on sales of real estate	57,909		57,909
Equity (loss) income in unconsolidated joint ventures, excluding adjusted (cash) NOI	(182)	13,831	(368)	27,986
Net income (loss)	178,246	120,307	295,954	(243,092)
Life science | Operating segment
Segment reporting information, revenues
Rental Revenues	90,201	85,409	179,149	168,960
Operating expenses	(17,961)	(17,234)	(34,704)	(33,933)
NOI	72,240	68,175	144,445	135,027
Non-cash adjustments to NOI	(545)	(2,745)	(1,218)	(5,820)
Adjusted (cash) NOI	71,695	65,430	143,227	129,207
Adjusted (cash) NOI from unconsolidated joint ventures	1,499	1,298	2,919	2,526
Portfolio Income	73,194	66,728	146,146	131,733
Addback non-cash adjustments	545	2,745	1,218	5,820
Investment management fee income	1	1	2	2
Interest expense	(632)	(764)	(1,270)	(1,528)
Depreciation and amortization	(32,077)	(30,294)	(65,674)	(60,490)
Gain (loss) on sales of real estate	29,455		29,455
Equity (loss) income in unconsolidated joint ventures, excluding adjusted (cash) NOI	(724)	(555)	(1,435)	(1,109)
Net income (loss)	69,762	37,861	108,442	74,428
Medical office | Operating segment
Segment reporting information, revenues
Rental Revenues	111,218	102,585	220,212	200,890
Operating expenses	(43,439)	(40,785)	(85,752)	(79,037)
NOI	67,779	61,800	134,460	121,853
Non-cash adjustments to NOI	(759)	(1,170)	(1,564)	(3,036)
Adjusted (cash) NOI	67,020	60,630	132,896	118,817
Adjusted (cash) NOI from unconsolidated joint ventures	361	306	683	610
Portfolio Income	67,381	60,936	133,579	119,427
Addback non-cash adjustments	759	1,170	1,564	3,036
Investment management fee income	80	457	170	916
Interest expense	(1,626)	(2,454)	(3,291)	(4,918)
Depreciation and amortization	(40,986)	(34,174)	(80,083)	(66,356)
Impairments		(2,948)		(2,948)
Gain (loss) on sales of real estate	8,310		8,310
Equity (loss) income in unconsolidated joint ventures, excluding adjusted (cash) NOI	59	(961)	95	(1,867)
Net income (loss)	33,977	22,026	60,344	47,290
Hospital | Operating segment
Segment reporting information, revenues
Rental Revenues	22,067	21,492	44,937	43,734
Operating expenses	(1,015)	(1,271)	(2,214)	(2,308)
NOI	21,052	20,221	42,723	41,426
Non-cash adjustments to NOI	582	226	885	478
Adjusted (cash) NOI	21,634	20,447	43,608	41,904
Portfolio Income	21,634	20,447	43,608	41,904
Addback non-cash adjustments	(582)	(226)	(885)	(478)
Depreciation and amortization	(3,811)	(3,809)	(7,622)	(7,668)
Equity (loss) income in unconsolidated joint ventures, excluding adjusted (cash) NOI		42	299	82
Net income (loss)	$ 17,241	$ 16,454	$ 35,400	$ 33,840

Segment Disclosures - Assets by

Segment Disclosures - Assets by Segment (Details) - USD ($) $ in Thousands		Jun. 30, 2016	Dec. 31, 2015
Segment Disclosure
Real estate and related assets held for sale, net		$ 330,453	$ 314,126
Total assets	[1]	21,116,457	21,449,849
Goodwill		50,346	50,346
Operating segment
Segment Disclosure
Gross assets		22,937,483	22,972,094
Accumulated depreciation and amortization		(3,157,266)	(2,941,568)
Total assets		19,780,217	20,030,526
Operating segment | Senior housing
Segment Disclosure
Gross assets		9,854,208	9,812,142
Goodwill		31,000
Operating segment | Post-acute/skilled nursing
Segment Disclosure
Gross assets		5,018,072	5,162,947
Goodwill		3,000
Operating segment | Life science
Segment Disclosure
Gross assets		3,952,550	3,905,137
Operating segment | Medical office
Segment Disclosure
Gross assets		3,489,833	3,469,048
Goodwill		11,000
Operating segment | Hospital
Segment Disclosure
Gross assets		622,820	622,820
Goodwill		5,000
Other non-segment
Segment Disclosure
Total assets		$ 1,005,787	$ 1,105,197
[1]	HCP, Inc.’s consolidated total assets and total liabilities at June 30, 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 June 30, 2016 include VIE assets as follows: buildings and improvements $3.4 billion; development costs $16 million; land $324 million; accumulated depreciation and amortization $598 million; investments in unconsolidated joint ventures $14 million; accounts receivable $25 million; cash $59 million; restricted cash $25 million; intangible assets, net $184 million; and other assets, net $62 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 June 30, 2016 include VIE liabilities as follows: mortgage debt $571 million; intangible liabilities, net $10 million; accounts payable and accrued liabilities $116 million and deferred revenue $25 million. 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 $107 million and deferred revenue $19 million. See Note 16 to the Consolidated Financial Statements for additional information.

Earnings Per Common Share (Deta

Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Numerator - Basic
Net income (loss)	$ 304,842	$ 167,748	$ 424,587	$ (69,755)
Noncontrolling interests’ share in earnings	(3,125)	(2,863)	(6,751)	(5,974)
Net income (loss) attributable to HCP, Inc.	301,717	164,885	417,836	(75,729)
Participating securities' share in earnings	(342)	(370)	(651)	(704)
Net income (loss) applicable to common shares	301,375	164,515	417,185	(76,433)
Numerator - Dilutive
Net income (loss) applicable to common shares	301,375	164,515	417,185	(76,433)
Add: distributions on dilutive convertible units	2,388
Dilutive net income (loss) available to common shares	$ 303,763	$ 164,515	$ 417,185	$ (76,433)
Denominator
Basic weighted average common shares	467,084	461,874	466,579	461,380
Diluted weighted average common shares	471,425	462,106	466,777	461,380
Earnings per common share:
Basic (in dollars per share)	$ 0.65	$ 0.36	$ 0.89	$ (0.17)
Diluted (in dollars per share)	$ 0.64	$ 0.36	$ 0.89	$ (0.17)
Common Stock Options
Earnings per common share:
Shares of anti-dilutive securities excluded from earnings per share calculation	1,200	900
Restricted Stock and Performance Restricted Stock Units
Earnings per common share:
Shares of anti-dilutive securities excluded from earnings per share calculation	400	400
Equity awards
Denominator
Dilutive potential common shares	208	232	198
Down REIT
Denominator
Dilutive potential common shares	4,133
Earnings per common share:
Shares of anti-dilutive securities excluded from earnings per share calculation	1,700	6,000
DownREIT LLCs, non-managing member units outstanding	1,700	4,000

Supplemental Cash Flow Inform58

Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Supplemental cash flow information:
Interest paid, net of capitalized interest	$ 241,585	$ 217,716
Income taxes paid	4,433	2,920
Capitalized interest	5,734	3,704
Supplemental schedule of non-cash investing activities:
Accrued construction costs	57,143	33,162
Non-cash acquisitions and dispositions settled with receivables and restricted cash held in connection with Section 1031 transactions	129,846	254,301
Tenant funded tenant improvements owned by HCP	16,451	3,512
Supplemental schedule of non-cash financing activities:
Vesting of restricted stock units	288	379
Conversion of non-managing member units into common stock	5,022	2,244
Noncontrolling interest and other liabilities, net assumed in connection with the RIDEA III acquisition		61,219
Noncontrolling interest issued in connection with real estate acquisitions		3,885
Noncontrolling interest disposed in connection with real estate sales		204
Other liabilities assumed with real estate acquisitions	1,200	13,672
Unrealized (losses) on available-for-sale securities and derivatives designated as cash flow hedges, net	$ 343	$ (198)

Variable Interest Entities (Det

Variable Interest Entities (Details) $ in Thousands	Jan. 01, 2016USD ($)entity	Jun. 30, 2016USD ($)propertyitem	Dec. 31, 2015USD ($)property	Aug. 29, 2014
Company's involvement with VIEs:
Number of joint ventures deconsolidated | entity	3
Cumulative-effect adjustment to cumulative dividends in excess of earnings	$ 500
Unconsolidated Variable Interest Entities
Company's involvement with VIEs:
Number of unconsolidated joint ventures | item		4
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		$ 227,589
Assets/liability type		Investments in unconsolidated joint ventures
Carrying amount		$ 227,589
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		$ 9,178
Assets/liability type		Lease intangibles, net and straight-line rent receivables
Carrying amount		$ 9,178
HCRMC
Company's involvement with VIEs:
Number of properties leased | property			310
Investment ownership percentage			9.00%
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		$ 598,267
Assets/liability type		Net investment in DFLs
Carrying amount		$ 598,267
Four Seasons
Company's involvement with VIEs:
Maximum Loss Exposure		$ 104,381
Assets/liability type		Loans and marketable debt securities
Carrying amount		$ 104,381
CMBS and LLC investment
Company's involvement with VIEs:
Maximum Loss Exposure		$ 33,055
Assets/liability type		Marketable debt and cost method investment
Carrying amount		$ 33,055
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		6 Months Ended		12 Months Ended
		Jun. 30, 2016USD ($)item	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)item	Jun. 30, 2015USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Balance Sheets:
Real estate and other property, net		$ 11,925,769		$ 11,925,769		$ 11,994,703
Cash and cash equivalents		116,450	$ 115,770	116,450	$ 115,770	346,500	$ 183,810
Goodwill, intangible and other assets, net		791,431		791,431		802,273
Total assets	[1]	21,116,457		21,116,457		21,449,849
Accounts payable, accrued liabilities and other		482,133		482,133		436,239
Total equity		9,676,388	10,526,997	9,676,388	10,526,997	9,746,317	$ 10,997,099
Total liabilities and equity		21,116,457		21,116,457		21,449,849
Income Statements:
Revenues		662,176	607,532	1,302,958	1,218,323
Operating, general and administrative expense		(180,125)	(136,342)	(357,080)	(268,373)
Depreciation and amortization expense		(141,386)	(120,403)	(282,708)	(234,925)
Interest expense		(121,333)	(118,632)	(243,395)	(235,412)
Other income, net		121,894	11,116	123,116	19,104
Loss on disposal of assets		119,614	61	119,614	6,325
Impairment			(44,835)		(523,299)
Income tax benefit (expense)		2,003	4,563	(51,035)	4,640
Net income (loss)		$ 304,842	$ 167,748	$ 424,587	(69,755)
Brookdale
Concentration of risk
Concentration risk (as a percent)		20.00%	25.00%
Brookdale | Minimum
Income Statements:
Management fees as percentage of gross revenues				4.50%
Brookdale | Maximum
Income Statements:
Management fees as percentage of gross revenues				5.00%
HCRMC
Concentration of risk
Concentration risk (as a percent)		6.00%	8.00%
Balance Sheets:
Real estate and other property, net		$ 2,582,600		$ 2,582,600		2,628,500
Cash and cash equivalents		174,400		174,400		125,000
Goodwill, intangible and other assets, net		4,518,500		4,518,500		4,598,300
Total assets		7,275,500		7,275,500		7,351,800
Debt and financing obligations		5,775,000		5,775,000		5,836,400
Accounts payable, accrued liabilities and other		1,001,900		1,001,900		982,900
Redeemable preferred stock		2,100		2,100		2,100
Total equity		496,500		496,500		530,400
Total liabilities and equity		7,275,500		7,275,500		$ 7,351,800
Income Statements:
Revenues		957,700	$ 1,027,500	1,942,200	2,081,500
Operating, general and administrative expense		(831,400)	(884,200)	(1,688,600)	(1,782,100)
Depreciation and amortization expense		(32,600)	(35,400)	(65,100)	(71,300)
Interest expense		(115,100)	(119,900)	(230,200)	(220,200)
Other income, net		4,800	2,100	8,300	4,900
Loss on disposal of assets		(5,900)		(2,600)
Impairment		(6,000)		(6,000)
(Loss) income from continuing operations before income tax (expense) benefit		(28,500)	(9,900)	(42,000)	12,800
Income tax benefit (expense)		5,300	4,500	8,200	(5,600)
(Loss) income from continuing operations		(23,200)	(5,400)	(33,800)	7,200
Income from discontinued operations, net of taxes		(100)	(7,100)		(6,000)
Net income (loss)		$ (23,300)	$ (12,500)	$ (33,800)	$ 1,200
Senior housing | CCRC JV
Concentration of risk
Number of RIDEA joint ventures | item				2
Senior housing | Management and Accounting Services | Brookdale
Concentration of risk
Number of RIDEA joint ventures | item				15
Investments in Joint Ventures Senior Housing Facilities Number | item		107		107
Tenants and Operators | Post-acute/skilled nursing | HCRMC
Concentration of risk
Concentration risk (as a percent)		78.00%	78.00%
Management and Accounting Services | Brookdale | Minimum
Income Statements:
Management Agreement Number of Renewals | item				3
Management and Accounting Services | Brookdale | Maximum
Income Statements:
Management Agreement Number of Renewals | item				4
Management and Accounting Services | Senior housing | Brookdale
Income Statements:
Management agreement renewal term (in years)				5 years
Management and Accounting Services | Senior housing | Brookdale | Minimum
Income Statements:
Management agreement term (in years)				10 years
Management and Accounting Services | Senior housing | Brookdale | Maximum
Income Statements:
Management agreement term (in years)				15 years
Assets | Tenants and Operators | Brookdale
Concentration of risk
Concentration risk (as a percent)				13.00%		12.00%
Assets | Tenants and Operators | HCRMC
Concentration of risk
Concentration risk (as a percent)				24.00%		23.00%
Assets | Tenants and Operators | Senior housing | Brookdale
Concentration of risk
Concentration risk (as a percent)				28.00%		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 nursing | HCRMC
Concentration of risk
Concentration risk (as a percent)				79.00%		64.00%
Revenue | Brookdale
Concentration of risk
Concentration risk (as a percent)		9.00%	10.00%
Revenue | HCRMC
Concentration of risk
Concentration risk (as a percent)		18.00%	23.00%
Revenue | Tenants and Operators | Brookdale
Concentration of risk
Concentration risk (as a percent)				10.00%	10.00%
Revenue | Tenants and Operators | HCRMC
Concentration of risk
Concentration risk (as a percent)				18.00%	24.00%
Revenue | Tenants and Operators | Senior housing | Brookdale
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 nursing | HCRMC
Concentration of risk
Concentration risk (as a percent)				78.00%	79.00%
[1]	HCP, Inc.’s consolidated total assets and total liabilities at June 30, 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 June 30, 2016 include VIE assets as follows: buildings and improvements $3.4 billion; development costs $16 million; land $324 million; accumulated depreciation and amortization $598 million; investments in unconsolidated joint ventures $14 million; accounts receivable $25 million; cash $59 million; restricted cash $25 million; intangible assets, net $184 million; and other assets, net $62 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 June 30, 2016 include VIE liabilities as follows: mortgage debt $571 million; intangible liabilities, net $10 million; accounts payable and accrued liabilities $116 million and deferred revenue $25 million. 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 $107 million and deferred revenue $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	Jun. 30, 2016	Dec. 31, 2015
Level 1 | Fair Value
Fair value assets and liabilities measured on recurring basis:
Marketable equity securities	$ 34	$ 39
Level 2 | Fair Value | Interest-rate swap contracts
Fair value assets and liabilities measured on recurring basis:
Derivative assets		196
Derivative liabilities	7,858	6,251
Level 2 | Fair Value | Currency Swap
Fair value assets and liabilities measured on recurring basis:
Derivative assets	3,017	1,551
Level 3 | Fair Value | Warrants
Fair value assets and liabilities measured on recurring basis:
Derivative assets	20	$ 55
Fair value on a recurring basis | Fair Value
Fair value assets and liabilities measured on recurring basis:
Marketable equity securities	34
Fair value on a recurring basis | Fair Value | Interest-rate swap contracts
Fair value assets and liabilities measured on recurring basis:
Derivative liabilities	7,858
Fair value on a recurring basis | Fair Value | Currency Swap
Fair value assets and liabilities measured on recurring basis:
Derivative assets	3,017
Fair value on a recurring basis | Fair Value | Warrants
Fair value assets and liabilities measured on recurring basis:
Derivative assets	20
Fair value on a recurring basis | Level 1
Fair value assets and liabilities measured on recurring basis:
Marketable equity securities	34
Fair value on a recurring basis | Level 2 | Interest-rate swap contracts
Fair value assets and liabilities measured on recurring basis:
Derivative liabilities	7,858
Fair value on a recurring basis | Level 2 | Currency Swap
Fair value assets and liabilities measured on recurring basis:
Derivative assets	3,017
Fair value on a recurring basis | Level 3 | Warrants
Fair value assets and liabilities measured on recurring basis:
Derivative assets	$ 20

Fair Value Measurements - Summa

Fair Value Measurements - Summary of the Carrying Amounts and Fair Values of the Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Summary of financial instruments
Bank line of credit	$ 869,078	$ 397,432
Senior unsecured notes	8,626,559	9,120,107
Mortgage debt	688,910	932,212
Other debt	93,012	94,445
Carrying Value
Summary of financial instruments
Loans receivable, net	708,096	768,743
Marketable debt securities	84,128	102,958
Marketable equity securities	34	39
Bank line of credit	869,078	397,432
Term loans	477,890	524,807
Senior unsecured notes	8,626,559	9,120,107
Mortgage debt	688,910	932,212
Other debt	93,012	94,445
Level 1 | Fair Value
Summary of financial instruments
Marketable equity securities	34	39
Senior unsecured notes	9,098,192	9,390,668
Level 2 | Fair Value
Summary of financial instruments
Loans receivable, net	715,450	770,052
Marketable debt securities	84,128	102,958
Bank line of credit	869,078	397,432
Term loans	477,890	524,807
Mortgage debt	722,153	963,786
Other debt	93,012	94,445
Warrants | Carrying Value
Summary of financial instruments
Derivative assets	20	55
Warrants | Level 3 | Fair Value
Summary of financial instruments
Derivative assets	20	55
Interest-rate swap contracts | Carrying Value
Summary of financial instruments
Derivative assets		196
Derivative liabilities	7,858	6,251
Interest-rate swap contracts | Level 2 | Fair Value
Summary of financial instruments
Derivative assets		196
Derivative liabilities	7,858	6,251
Currency Swap | Level 2 | Carrying Value
Summary of financial instruments
Derivative assets	3,017	1,551
Currency Swap | Level 2 | Fair Value
Summary of financial instruments
Derivative assets	$ 3,017	$ 1,551

Derivative Financial Instrume63

Derivative Financial Instruments (Details) £ in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2016GBP (£)item	Jun. 30, 2016USD ($)item
Derivative
Gains or losses recorded to accumulated other comprehensive loss reclassified to earnings			$ 0
Cash flow hedge | Reclassification out of Accumulated Other Comprehensive Income | Other income, net
Effects of Change in Interest Rates
Reclassification of unrealized gains into other income (expense), ineffectiveness	$ 200	$ 200	300	$ 300
Net Investment Hedging | Facility and 2012 Term Loan
Derivative
Borrowings designated as hedge of net investment | £					£ 268,000
Interest rate swap, entered in July 2005, maturity in July 2020
Effects of Change in Interest Rates
+50 Basis Points			994
-50 Basis Points			(735)
+100 Basis Points			1,858
-100 Basis Points			(1,600)
Interest rate swap, entered in July 2005, maturity in July 2020 | BMA Swap Index
Derivative
Notional amount						$ 45,600
Fair value of hedge, liabilities						$ (5,410)
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			33
-50 Basis Points			(40)
+100 Basis Points			69
-100 Basis Points			(76)
Interest rate swap, entered in November 2008, maturity in October 2016 | LIBOR
Derivative
Notional amount						$ 24,700
Fair value of hedge, liabilities						$ (286)
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 January 2015, maturity in October 2017
Effects of Change in Interest Rates
+50 Basis Points			1,893
-50 Basis Points			(2,037)
+100 Basis Points			3,858
-100 Basis Points			(4,003)
Interest rate swap, entered in January 2015, maturity in October 2017 | GBP LIBOR
Derivative
Notional amount | £					£ 220,000
Fair value of hedge, liabilities						$ (2,162)
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 January 2015, maturity in October 2017
Derivative
Notional amount | £					£ 16,800
Fair value of foreign currency hedge, assets						$ 3,017
Effects of Change in Interest Rates
+50 Basis Points			(225)
-50 Basis Points			1
+100 Basis Points			(338)
-100 Basis Points			$ 114
Currency swap, entered in January 2015, maturity in October 2017 | Cash flow hedge
Derivative
Buy (sell) amount | £					£ 1,000
Monthly buy (sell) amount						$ 25,500