HCP Reports Results for the Quarter Ended March 31, 2008

HIGHLIGHTS

-- 12% year-over-year growth in FFO per diluted share

-- Received $336 million year-to-date from asset dispositions

-- Raised $560 million year-to-date from public equity offerings

-- Pro forma financial leverage of 52%

-- HCP added to the S&P 500 Index
LONG BEACH, Calif.--(Business Wire)--
HCP (the "Company" or "we") (NYSE:HCP) announced results for the
quarter ended March 31, 2008. Funds from operations ("FFO") applicable
to common shares was $122.0 million, or $0.56 per diluted share of
common stock, for the quarter ended March 31, 2008, compared to FFO
applicable to common shares of $102.4 million, or $0.50 per diluted
share of common stock, in the year ago period.

FFO applicable to common shares for the quarter ended March 31,
2008 includes the impact of merger-related charges of $1.2 million, or
less than $0.01 per diluted share of common stock, compared to
merger-related charges of $10.2 million, or $0.04 per diluted share of
common stock, in the year ago period. Merger-related charges in the
quarter ended March 31, 2008 include the amortization of fees
associated with our acquisition financing for Slough Estates USA Inc.
("SEUSA"), as well as other SEUSA integration costs. Merger-related
charges in the quarter ended March 31, 2007 include the amortization
and write-off of fees associated with our acquisition financing for
CNL Retirement Properties, Inc. ("CRP"), severance and
retention-related compensation, as well as other CRP integration
costs. FFO is a supplemental non-GAAP financial measure that the
Company believes is helpful in evaluating the operating performance of
real estate investment trusts.

Net income applicable to common shares for the quarter ended March
31, 2008 was $45.1 million, or $0.21 per diluted share of common
stock, compared to net income applicable to common shares of $140.0
million, or $0.68 per diluted share of common stock, in the year ago
period. Net income applicable to common shares for the quarter ended
March 31, 2008 includes the impact of gains on sales of real estate of
$10.1 million, compared to $104.0 million in the year ago period.

INVESTMENT TRANSACTIONS

During the quarter ended March 31, 2008, we sold four properties
for approximately $30 million. These sales were made from the
following segments: (i) 90% skilled nursing, and (ii) 10% senior
housing.

In April 2008, we sold 17 properties for approximately $306
million. These sales were made from the following segments: (i) 95%
hospital, and (ii) 5% senior housing.

During the quarter ended March 31, 2008, we acquired a senior
housing facility for $11 million and funded construction and other
capital projects aggregating $49 million, primarily in our life
science segment.

FINANCING TRANSACTIONS

In connection with HCP's addition to the S&P 500 Index on March
28, 2008, to partially satisfy the anticipated demand for shares of
our common stock by index funds, we issued 12.5 million shares of our
common stock on April 2, 2008. In a separate transaction, we issued
4.5 million shares to an active REIT-dedicated institutional investor
on April 2, 2008. The net proceeds we received from these two
offerings in the aggregate were approximately $560 million, which were
used to repay a portion of our outstanding indebtedness under our
revolving line of credit facility.

DIVIDENDS

On April 24, 2008, we announced that our Board of Directors
declared a quarterly common stock cash dividend of $0.455 per share.
The common stock dividend will be paid on May 19, 2008 to stockholders
of record as of the close of business on May 5, 2008.

OTHER EVENT

On April 24, 2008, at the Company's annual stockholders' meeting,
Lauralee E. Martin was elected as a new director.

FUTURE OPERATIONS

For the full year 2008, we presently expect net income applicable
to common shares to range between $1.91 and $2.41 per diluted common
share, FFO applicable to common shares to range between $2.21 and
$2.29 per diluted common share, and FFO applicable to common shares,
before giving effect to merger-related charges, to range between $2.23
and $2.31 per diluted common share.

COMPANY INFORMATION

HCP has scheduled a conference call and webcast for Tuesday, April
29, 2008 at 9:00 a.m. Pacific Time (12:00 p.m. Eastern Time) in order
to present the Company's performance and operating results for the
quarter ended March 31, 2008. The conference call is accessible by
dialing (800) 510-0178 (U.S.) or (617) 614-3450 (International). The
participant pass code is 71024549. The webcast is accessible via the
Company's website at www.hcpi.com. The link can be found on the "Event
Calendar" page, which is under the "Investor Relations" tab. A webcast
replay of the conference call will be available after 11:00 a.m.
Pacific Time (2:00 p.m. Eastern Time) on Tuesday, April 29, 2008
through May 13, 2008 on the Company's website. The Company's
supplemental information package for the current period will also be
available on the Company's website in the "Presentations" section of
the "Investor Relations" tab.

ABOUT HCP

HCP, Inc., an S&P 500 company, is a self-administered REIT that,
together with its consolidated subsidiaries, invests primarily in real
estate serving the healthcare industry in the United States. As of
March 31, 2008, the Company's portfolio of properties, excluding
assets held for sale but including mortgage loans and properties owned
by unconsolidated joint ventures, totaled 721 properties among the
following segments: 269 senior housing, 105 life science, 269 medical
office, 27 hospital and 51 skilled nursing. For more information,
visit the Company's website at www.hcpi.com.

FORWARD-LOOKING STATEMENTS

"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: The statements contained in this release which are
not historical facts are forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. These statements include among other
things the Company's estimates of: net income applicable to common
shares on a diluted basis, FFO applicable to common shares on a
diluted basis, FFO applicable to common shares on a diluted basis
before giving effect to merger-related charges, gain on sales of real
estate, real estate depreciation and amortization, joint venture
adjustments and merger-related charges for the full year of 2008.
These statements are made as of the date hereof and are subject to
known and unknown risks, uncertainties, assumptions and other
factors--many of which are out of the Company's control and difficult
to forecast--that could cause actual results to differ materially from
those set forth in or implied by forward-looking statements. These
risks and uncertainties include but are not limited to: the Company's
ability to access external sources of capital when desired and on
reasonable terms; the Company's ability to manage its indebtedness
levels; the Company's ability to maintain its credit ratings; the
Company's ability to achieve its expected benefits from acquisitions,
including integrating and preserving the goodwill of those companies;
competition for lessees and mortgagors (including new leases and
mortgages and the renewal or rollover of existing leases); continuing
reimbursement uncertainty in the skilled nursing segment; competition
in the senior housing segment specifically and in the healthcare
industry in general; the Company's ability to acquire, sell or lease
facilities and the timing of acquisitions, sales and leasings; the
Company's ability to realize the benefits of its mezzanine
investments; changes in the financial condition of the Company's
lessees and obligors; changes in healthcare laws and regulations and
other changes in the healthcare industry which affect the operations
of the Company's lessees or obligors; changes in the Company's
management; litigation claims and developments; costs of compliance
with building regulations; changes in tax laws and regulations;
changes in rules governing financial reporting, including new
accounting pronouncements; changes in economic conditions, including
changes in interest rates and the availability and cost of capital,
which affect opportunities for profitable investments; and other risks
described from time to time in the Company's Securities and Exchange
Commission filings. The Company assumes no, and hereby disclaims any,
obligation to update any of the foregoing or any other forward-looking
statements as a result of new information or new or future
developments, except as otherwise required by law.

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HCP, Inc.
Summary of Information
In thousands, except per share data
(Unaudited)

Three Months Ended March 31,
----------------------------
2008 2007
------------- -------------

Revenues $ 252,177 $ 213,644

Net income applicable to common shares $ 45,129 $ 140,005

Basic earnings per common share $ 0.21 $ 0.69
------------- -------------

Diluted earnings per common share $ 0.21 $ 0.68
------------- -------------

Weighted average shares used to calculate
diluted earnings per common share 217,663 205,909
------------- -------------

Funds from operations applicable to
common shares (1) $ 122,033 $ 102,438
------------- -------------

Diluted funds from operations applicable
to common shares (1) $ 126,800 $ 105,067
------------- -------------

Basic funds from operations per common
share (1) $ 0.56 $ 0.50
------------- -------------

Diluted funds from operations per common
share (1) $ 0.56 $ 0.50
------------- -------------

Weighted average shares used to calculate
diluted funds from operations per common
share (1) 227,183 211,777
------------- -------------

Impact of merger-related charges $ 1,189 $ 10,189
------------- -------------

Per common share impact of merger-related
charges on diluted funds from operations $ -- $ 0.04
------------- -------------
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___________________________________________________

(1) The Company believes that funds from operations applicable to
common shares, diluted funds from operations applicable to common
shares and basic and diluted funds from operations per common
share are important supplemental measures of operating
performance for a real estate investment trust. Because the
historical cost accounting convention used for real estate assets
requires straight-line depreciation (except on land), such
accounting presentation implies that the value of real estate
assets diminishes predictably over time. Since real estate values
instead have historically risen and fallen with market
conditions, presentations of operating results for a real estate
investment trust that uses historical cost accounting for
depreciation could be less informative. The term funds from
operations ("FFO") was designed by the real estate investment
trust industry to address this issue.

FFO is defined as net income applicable to common shares (computed
in accordance with U.S. generally accepted accounting
principles), excluding gains or losses from real estate
dispositions, plus real estate depreciation and amortization,
with adjustments for joint ventures. Adjustments for joint
ventures are calculated to reflect FFO on the same basis. FFO
does not represent cash generated from operating activities in
accordance with U.S. generally accepted accounting principles, is
not necessarily indicative of cash available to fund cash needs
and should not be considered an alternative to net income. The
Company's computation of FFO may not be comparable to FFO
reported by other real estate investment trusts that do not
define the term in accordance with the current National
Association of Real Estate Investment Trusts ("NAREIT")
definition or that have a different interpretation of the current
NAREIT definition from the Company. A reconciliation of net
income applicable to common shares to FFO applicable to common
shares is provided herein.
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HCP, Inc.
Consolidated Statements of Income
In thousands, except per share data
(Unaudited)

Three Months Ended March 31,
----------------------------
2008 2007
------------- -------------
Revenues:
Rental and related revenues $ 213,287 $ 177,933
Tenant recoveries 22,449 14,483
Income from direct financing leases 14,974 14,990
Investment management fee income 1,467 6,238
------------- -------------
252,177 213,644
------------- -------------

Costs and expenses:
Interest 96,370 78,744
Depreciation and amortization 79,276 58,323
Operating 51,428 42,218
General and administrative 20,538 20,107
------------- -------------
247,612 199,392
------------- -------------

Income before equity income from
unconsolidated joint ventures, interest
and other income, net, minority
interests' share of earnings, income
taxes and discontinued operations 4,565 14,252
Equity income from unconsolidated joint
ventures 1,288 1,214
Interest and other income, net 35,326 14,466
Minority interests' share of earnings (5,716) (5,235)
Income taxes (2,245) (467)
------------- -------------
Income from continuing operations 33,218 24,230
------------- -------------

Discontinued operations:
Income before gain on sales of real
estate, net of income taxes 7,056 17,013
Gain on sales of real estate 10,138 104,045
------------- -------------
17,194 121,058
------------- -------------

Net income 50,412 145,288
Preferred stock dividends (5,283) (5,283)
------------- -------------

Net income applicable to common shares $ 45,129 $ 140,005
------------- -------------

Basic earnings per common share:
Continuing operations $ 0.13 $ 0.09
Discontinued operations 0.08 0.60
------------- -------------
Net income applicable to common shares $ 0.21 $ 0.69
------------- -------------

Diluted earnings per common share:
Continuing operations $ 0.13 $ 0.09
Discontinued operations 0.08 0.59
------------- -------------
Net income applicable to common shares $ 0.21 $ 0.68
------------- -------------

Weighted average shares used to calculate
earnings per common share:
Basic 216,773 204,000
------------- -------------

Diluted 217,663 205,909
------------- -------------
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HCP, Inc.
Funds From Operations Information
In thousands, except per share data
(Unaudited)

Three Months Ended March 31,
----------------------------
2008 2007
------------- -------------

Net income applicable to common shares $ 45,129 $ 140,005
Depreciation and amortization of real
estate, in-place lease and other
intangibles:
Continuing operations 79,276 58,323
Discontinued operations 3,082 6,050
Gain on sales of real estate (10,138) (104,045)
Equity income from unconsolidated joint
ventures (1,288) (1,214)
FFO from unconsolidated joint ventures 6,620 4,114
Minority interests' share of earnings 5,716 5,235
Minority interests' share of FFO (6,364) (6,030)
------------- -------------
Funds from operations applicable to
common shares (1) $ 122,033 $ 102,438
------------- -------------

Distributions on convertible units $ 4,767 $ 2,629
------------- -------------

Diluted funds from operations applicable
to common shares (1) $ 126,800 $ 105,067
------------- -------------

Basic funds from operations per common
share (1) $ 0.56 $ 0.50
------------- -------------

Diluted funds from operations per common
share (1) $ 0.56 $ 0.50
------------- -------------

Weighted average shares used to
calculate diluted funds from operations
per common share (1) 227,183 211,777
------------- -------------

Impact of merger-related charges $ 1,189 $ 10,189
------------- -------------

Per common share impact of merger-
related charges on diluted funds from
operations $ -- $ 0.04
------------- -------------
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________________________________________

(1) The Company believes that funds from operations applicable to
common shares, diluted funds from operations applicable to common
shares and basic and diluted funds from operations per common
share are important supplemental measures of operating
performance for a real estate investment trust. Because the
historical cost accounting convention used for real estate assets
requires straight-line depreciation (except on land), such
accounting presentation implies that the value of real estate
assets diminishes predictably over time. Since real estate values
instead have historically risen and fallen with market
conditions, presentations of operating results for a real estate
investment trust that uses historical cost accounting for
depreciation could be less informative. The term funds from
operations was designed by the real estate investment trust
industry to address this issue.

FFO is defined as net income applicable to common shares (computed
in accordance with U.S. generally accepted accounting
principles), excluding gains or losses from real estate
dispositions, plus real estate depreciation and amortization,
with adjustments for joint ventures. Adjustments for joint
ventures are calculated to reflect FFO on the same basis. FFO
does not represent cash generated from operating activities in
accordance with U.S. generally accepted accounting principles, is
not necessarily indicative of cash available to fund cash needs
and should not be considered an alternative to net income. The
Company's computation of FFO may not be comparable to FFO
reported by other real estate investment trusts that do not
define the term in accordance with the current NAREIT definition
or that have a different interpretation of the current NAREIT
definition from the Company.
*T

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HCP, Inc.
Consolidated Balance Sheets
In thousands, except share and per share data

March 31, December 31,
2008 2007
----------- ------------
Assets (unaudited)
Real estate:
Buildings and improvements $ 7,738,776 $ 7,670,272
Development costs and construction in
progress 330,730 372,947
Land 1,593,350 1,598,244
Less accumulated depreciation and
amortization 722,224 661,795
----------- ------------
Net real estate 8,940,632 8,979,668
----------- ------------

Net investment in direct financing leases 642,572 640,052
Loans receivable, net 1,068,093 1,065,485
Investments in and advances to
unconsolidated joint ventures 281,102 248,894
Accounts receivable, net of allowance of
$17,489 and $23,109, respectively 32,849 44,892
Cash and cash equivalents 154,000 96,269
Restricted cash 29,664 36,427
Intangible assets, net 598,167 623,271
Real estate held for sale, net 248,093 270,681
Other assets, net 504,892 516,133
----------- ------------

Total assets $12,500,064 $12,521,772
----------- ------------

Liabilities and Stockholders' Equity
Bank line of credit $ 1,018,600 $ 951,700
Bridge loan 1,350,000 1,350,000
Senior unsecured notes 3,820,868 3,819,950
Mortgage debt 1,274,795 1,280,761
Other debt 106,677 108,496
Intangible liabilities, net 269,638 278,553
Accounts payable and accrued liabilities 249,714 233,342
Deferred revenue 68,387 55,990
----------- ------------
Total liabilities 8,158,679 8,078,792
----------- ------------
Minority interests:
Joint venture partners 32,009 33,436
Non-managing member unitholders 281,729 305,835
----------- ------------
Total minority interests 313,738 339,271
----------- ------------

Commitments and contingencies

Stockholders' equity:
Preferred stock, $1.00 par value:
50,000,000 shares authorized; 11,820,000
shares issued and outstanding, liquidation
preference of $25.00 per share 285,173 285,173
Common stock, $1.00 par value: 750,000,000
shares authorized; 217,816,021 and
216,818,780 shares issued and outstanding,
respectively 217,816 216,819
Additional paid-in capital 3,755,433 3,724,739
Cumulative dividends in excess of earnings (174,878) (120,920)
Accumulated other comprehensive loss (55,897) (2,102)
----------- ------------

Total stockholders' equity 4,027,647 4,103,709
----------- ------------

Total liabilities and stockholders' equity $12,500,064 $12,521,772
----------- ------------
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HCP, Inc.
Projected Funds From Operations (1)
(Unaudited)

PROJECTED FUTURE OPERATIONS (Full Year 2008): 2008
------------------
Low High
------- -------

Diluted earnings per common share $ 1.91 $ 2.41
Gain on sales of real estate (1.03) (1.45)
Real estate depreciation and amortization 1.26 1.26
Joint venture adjustments 0.07 0.07
------- -------
Diluted funds from operations per common share (2) 2.21 2.29
Merger-related charges (3) 0.02 0.02
------- -------
Diluted funds from operations per common share
before merger-related charges $ 2.23 $ 2.31
------- -------
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________________________________________

(1) Except as otherwise noted above, the foregoing projections reflect
management's view of current and future market conditions,
including assumptions with respect to rental rates, occupancy
levels, development activities, property dispositions and the
earnings impact of the events referenced in this release. These
estimates do not reflect the potential impact of future property
acquisitions, impairments, realized losses on marketable
securities, ineffectiveness related to our cash flow hedges, or
existing and future litigation matters, including related
developments, if any. By definition, FFO does not include real
estate-related depreciation and amortization or gains and losses
associated with real estate disposition activities, but does
include impairments. There can be no assurance that the Company's
actual results will not differ materially from the estimates set
forth above. The aforementioned ranges represent management's
best estimate of results based upon the underlying assumptions as
of the date of this press release.

(2) The Company believes that diluted funds from operations per common
share is an important supplemental measure of operating
performance for a real estate investment trust. Because the
historical cost accounting convention used for real estate assets
requires straight-line depreciation (except on land), such
accounting presentation implies that the value of real estate
assets diminishes predictably over time. Since real estate values
instead have historically risen and fallen with market
conditions, presentations of operating results for a real estate
investment trust that uses historical cost accounting for
depreciation could be less informative. The term FFO was designed
by the real estate investment trust industry to address this
issue.

FFO is defined as net income (computed in accordance with U.S.
generally accepted accounting principles), excluding gains or
losses from real estate dispositions, plus real estate
depreciation and amortization, with adjustments for joint
ventures. Adjustments for joint ventures are calculated to
reflect FFO on the same basis. FFO does not represent cash
generated from operating activities in accordance with U.S.
generally accepted accounting principles, is not necessarily
indicative of cash available to fund cash needs and should not be
considered an alternative to net income. The Company's
computation of FFO may not be comparable to FFO reported by other
real estate investment trusts that do not define the term in
accordance with the current NAREIT definition or that have a
different interpretation of the current NAREIT definition from
the Company.

(3) Merger-related charges primarily include amortization of fees
associated with the Company's bridge loan and integration costs.
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HCP, Inc.
Pro forma Financial Leverage
(Unaudited)

March 31,
2008
-----------
Pro forma Total Gross Assets:

Consolidated total assets $12,500,064
Investments in and advances to unconsolidated joint
ventures (281,102)
Accumulated depreciation and amortization 848,522
Accumulated depreciation and amortization from assets
held for sale 65,397
-----------
Consolidated gross assets $13,132,881
HCP's share of unconsolidated total assets 573,874
HCP's share of unconsolidated accumulated depreciation
and amortization 34,322
-----------
Total Gross Assets $13,741,077
Less: decrease in consolidated gross assets from April
2008 dispositions 237,000
-----------
Pro forma total gross assets $13,504,077
-----------

Pro forma Total Debt:

Bank line of credit $ 1,018,600
Bridge loan 1,350,000
Senior unsecured notes 3,820,868
Mortgage debt 1,274,795
Other debt 106,677
-----------
Consolidated debt $ 7,570,940
HCP's share of unconsolidated mortgage debt 350,212
-----------
Total Debt $ 7,921,152
Less: Proceeds from April 2008 asset dispositions and
issuance of equity 864,000
-----------
Pro forma total debt $ 7,057,152
-----------

Consolidated debt / consolidated gross assets 58%
-----------

Pro forma consolidated debt / pro forma consolidated
gross assets (2) 52%
-----------

Financial leverage (1) 58%
-----------

Pro forma financial leverage (2) 52%
-----------
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________________________________________

(1) Financial Leverage represents Total Debt divided by Total Gross
Assets. Total Debt represents the Company's consolidated debt
plus its pro rata share of debt from unconsolidated joint
ventures. Total Gross Assets represents the carrying amount of
total assets, excluding investments in and advances to
unconsolidated joint ventures, after adding back accumulated
depreciation and amortization, plus the Company's pro rata share
of total assets from unconsolidated joint ventures, after adding
back accumulated depreciation and amortization. The Company
believes that its Financial Leverage is a meaningful supplemental
measure of its financial position, which enables both management
and investors to analyze its leverage and to compare its leverage
to that of other companies. The Company believes that the ratio
of consolidated debt to consolidated gross assets is the most
directly comparable GAAP measure to Financial Leverage. The
Company's computation of its financial leverage may not be
identical to the computations of financial leverage reported by
other companies. The Company's share of total debt is not
intended to reflect its actual liability or ability to access
assets should there be a default under any or all of such loans
or a liquidation of the joint ventures.

(2) Pro forma calculations at March 31, 2008 reflect the impact of the
disposition of assets and equity issuances in April 2008,
assuming the proceeds from these transactions were used to repay
a portion of amounts outstanding under the Company's revolving
credit facility at March 31, 2008.
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HCP
Mark A. Wallace
Executive Vice President -
Chief Financial Officer and Treasurer
(562) 733-5100

Copyright Business Wire 2008