Earnings Release & Supplemental Report

10-K Filing

Discussion + Reconciliation of Non-GAAP Financial Measures

• Net loss, FFO and FFO as adjusted applicable to common shares were $(0.13), $0.11 and $0.48 per share, respectively
• Commenced Phase I of Sierra Point, our next major life science development in South San Francisco
• Entered into a $115 million participating development financing agreement for a high-rise senior living development in downtown Seattle
• Acquired an 11-asset portfolio of medical office buildings for $151 million  
• Closed on the previously announced $228 million acquisition of the Hayden Research Campus in the Boston life science market
• As previously announced, closed on a new $2.0 billion unsecured revolving credit facility
• Recognized an $84 million impairment on our Tandem debt investment
• Announced Mike McKee to step down from his role as Executive Chairman and retire from HCP's Board of Directors at the upcoming Annual Meeting
• Named as a 2017 ENERGY STAR Partner of the Year for outstanding efforts to improve our properties' energy efficiency

Full Year 2017 Highlights 
 

• Net income, FFO and FFO as adjusted applicable to common shares were $0.88, $1.41 and $1.95 per share, respectively
• Achieved year-over-year Total SPP Cash NOI growth of 3.4%
• Significantly lowered our Brookdale Senior Living, Inc. ("Brookdale") tenant concentration with $1.6 billion of closed dispositions and entered into additional strategic transactions which, when combined, result in a more diversified senior housing operator portfolio, improved triple-net lease coverage, and a stronger balance sheet
• Closed $562 million of acquisitions, including our entry into the Boston life science market
• Enhanced our financial position with $1.4 billion of debt repayments
• Substantially exited our high-risk mezzanine debt investments, generating proceeds of $500 million
• Launched sales process for our remaining U.K. investments
• Executed 4.1 million square feet of leasing across our medical office and life science portfolios
• Recognized for our continued leadership and performance by several prominent Environmental, Social and Governance ("ESG") benchmarking institutions
• Enhanced corporate governance by opting out of provisions of the Maryland Unsolicited Takeover Act ("MUTA") and adopting majority-vote standard for stockholder bylaw amendments