LONG BEACH, Calif.--(BUSINESS WIRE)--Jun. 18, 2009-- HCP (NYSE:HCP) announced that the management agreements on 15 communities operated by Sunrise Senior Living, Inc. or its subsidiaries ("Sunrise") have been terminated effective October 1, 2009, for Sunrise's failure to achieve certain performance thresholds. The termination of the agreements does not require the payment of a termination fee by HCP or its tenant. HCP expects to transition these facilities to new operators during the second half of 2009, reducing the Sunrise-managed properties in its portfolio to 75 communities from the original 101 communities HCP acquired in the 2006 CNL Retirement Properties, Inc. transaction.

HCP intends to enter into new arrangements for the 15 communities that are expected to improve the operating margins of the communities in a manner similar to HCP's successful transition of 11 former Sunrise communities to a new operator in December 2008. The management agreements for those 11 communities were also terminated for Sunrise's failure to achieve certain performance thresholds and did not require the payment of a termination fee by HCP or its tenant.

"This transaction highlights the most recent example of HCP's active approach to asset management as we continue to find ways in this challenging environment to unlock value in our portfolio. Discussions with new senior housing operators for the 15 communities are at an advanced stage and we look forward to closing these transactions in the near future," said HCP Chairman and Chief Executive Officer, Jay Flaherty.

ABOUT HCP

HCP, Inc., an S&P 500 company, is a real estate investment trust (REIT) that, together with its consolidated subsidiaries, invests primarily in real estate serving the healthcare industry in the United States. As of March 31, 2009, HCP's portfolio of properties, excluding assets held for sale but including properties owned by unconsolidated joint ventures, totaled 692 properties among the following segments: 264 senior housing, 100 life science, 254 medical office, 23 hospital and 51 skilled nursing. For more information, visit the Company's website at www.hcpi.com.

FORWARD-LOOKING STATEMENTS

The statements contained in this release that 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 are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements. These risks and uncertainties include general economic conditions, our ability to reach agreement with suitable replacement operators for the applicable properties on economically acceptable terms, the disruption to our operations being more severe than currently expected, and other risks and uncertainties detailed from time to time in the Company's filings with the Securities and Exchange Commission. While the Company anticipates that subsequent events and developments may cause its views to change, it specifically disclaims any obligation to update these statements. These statements should not be relied upon as representing the Company's views as of any date subsequent to the date of this press release.

Source: HCP, Inc.

HCP
James F. Flaherty III
Chairman and Chief Executive Officer
562-733-5100