Investments in and Advances to Unconsolidated Joint Ventures (Tables)

9 Months Ended

Sep. 30, 2015

Investments in and Advances to Unconsolidated Joint Ventures

Company owned interests in entities, accounted under equity method (dollars in thousands)

Entity(1)	Segment	Carrying Amount		Ownership%
CCRC JV(2)	senior housing	$	447,658		49
HCRMC	senior housing and post-acute/skilled nursing		21,238		9
MBK JV(3)	senior housing		26,400		50
HCP Ventures III, LLC	medical office		6,329		30
HCP Ventures IV, LLC	medical office and hospital		24,705		20
HCP Life Science(4)	life science		68,834	50	–	63
Vintage Park	senior housing		5,745		85
MBK Development JV(3)	senior housing		1,824		50
Suburban Properties, LLC	medical office		4,861		67
Advances to unconsolidated joint ventures, net			196
		$	607,790

(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 CCRC OpCo).

(3) Includes two unconsolidated joint ventures in a RIDEA structure (PropCo and OpCo).

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

Summarized combined financial information for equity method investments (in thousands)

	September 30,		December 31,
	2015		2014
Real estate, net	$	4,987,309	$	5,134,587
Goodwill and other assets, net		5,238,342		4,986,310
Total assets	$	10,225,651	$	10,120,897
Capital lease obligations and debt	$	7,205,096	$	7,197,940
Accounts payable		1,139,955		1,015,912
Other partners’ capital		1,241,809		1,281,413
HCP’s capital(1)		638,791		625,632
Total liabilities and partners’ capital	$	10,225,651	$	10,120,897

(1) The combined basis difference of the Company’s investments in these joint ventures of $31 million, as of September 30, 2015, is attributable to goodwill, real estate, capital lease obligations, deferred tax assets and lease-related net intangibles.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Total revenues	$	1,126,797	$	1,082,110	$	3,435,943	$	3,209,039
Income (loss) from discontinued operations		2,100		2,000		(3,900)		(6,800)
Net loss		(65,819)		(702)		(77,529)		(4,826)
HCP’s share of earnings(1)		8,314		10,168		33,916		39,388
Fees earned by HCP		454		447		1,372		1,340
Distributions received by HCP		16,186		2,113		20,673		5,881

(1) The Company’s joint venture interest in HCRMC is accounted for using the equity method and results in an ongoing 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 results in $14 million and $16 million of DFL income that is recharacterized to the Company’s share of earnings from HCRMC (equity income from unconsolidated joint ventures) for the three months ended September 30, 2015 and 2014, respectively. For the nine months ended September 30, 2015 and 2014,  $44 million and $47 million, respectively, of DFL income was recharacterized to the Company’s share of earnings from HCRMC.