Investments in and Advances to Unconsolidated Joint Ventures (Tables)

3 Months Ended

Mar. 31, 2014

Investments in and Advances to Unconsolidated Joint Ventures

Company owned interests in entities, accounted under equity method

The Company owns interests in the following entities that are accounted for under the equity method at March 31, 2014 (dollars in thousands):

Entity(1)	Segment	Investment(2)			Ownership%
HCR ManorCare	post-acute/skilled nursing	$	82,311		9.5
HCP Ventures III, LLC	medical office	7,065			30
HCP Ventures IV, LLC	medical office and hospital	29,074			20
HCP Life Science(3)	life science	68,798			50-63
Suburban Properties, LLC	medical office	6,180			67
Advances to unconsolidated joint ventures, net		502
		$	193,930
Edgewood Assisted Living Center, LLC	senior housing	$	(431	)
Seminole Shores Living Center, LLC	senior housing	(656		)
		$	(1,087	)

(1) These entities are not consolidated because the Company does not control, through voting rights or other means, the joint ventures.

(2) Represents the carrying value of the Company’s investment in the unconsolidated joint venture. Negative balances are recorded in accounts payable and accrued liabilities on the Company’s Condensed Consolidated Balance Sheets. Includes a 72% interest in a senior housing partnership which has an investment balance of zero.

(3) Includes three unconsolidated joint ventures between the Company and an institutional capital partner for which the Company is the managing member. HCP Life Science includes the following partnerships (and the Company’s ownership percentage): (i) Torrey Pines Science Center, LP (50%); (ii) Britannia Biotech Gateway, LP (55%); and (iii) LASDK, LP (63%).

Summarized combined financial information for unconsolidated joint ventures

Summarized combined financial information for the Company’s unconsolidated joint ventures follows (in thousands):

	March 31,		December 31,
	2014		2013
Real estate, net	$	3,644,045	$	3,662,450
Goodwill and other assets, net	5,414,544		5,384,553
Total assets	$	9,058,589	$	9,047,003
Capital lease obligations and mortgage debt	$	6,736,980	$	6,768,815
Accounts payable	1,083,690		1,045,260
Other partners’ capital	1,102,974		1,098,228
HCP’s capital(1)	134,945		134,700
Total liabilities and partners’ capital	$	9,058,589	$	9,047,003

(1) The combined basis difference of the Company’s investments in these joint ventures of $57 million, as of March 31, 2014, is primarily attributable to goodwill, real estate, capital lease obligations, deferred tax assets and lease-related net intangibles.

	Three Months Ended March 31,
	2014		2013
Total revenues	$	1,079,891	$	1,093,374
Net income	7,996		10,584
HCP’s share of earnings(1)	14,528		14,801
Fees earned by HCP	449		443
Distributions received by HCP	3,202		1,371

(1) The Company’s joint venture interest in HCR ManorCare is accounted for using the equity method and results in an ongoing elimination of DFL income proportional to HCP’s ownership in HCR ManorCare. The elimination of the respective proportional lease expense at the HCR ManorCare level in substance results in $15.6 million and $15.9 million of DFL income that is recharacterized to the Company’s share of earnings from HCR ManorCare (equity income from unconsolidated joint ventures) for the three months ended March 31, 2014 and 2013, respectively.