October 5, 2006

Dear Fellow Stockholder,

On behalf of the management, employees and the Board of Directors of HCP, Inc. (“HCP”), I would like to welcome you as a new stockholder.

We have completed our merger with CNL Retirement Properties, Inc. (“CRP”), and now begin an exciting new phase in the development of our Company. This transaction takes HCP to the next level and alters the healthcare real estate industry landscape. With a collection of nearly 800 properties in 44 states, HCP owns the largest portfolio of independent and assisted living communities, healthcare facilities and medical office buildings in the nation. Equally important, the merger brings increased diversity to our portfolio, geographically, by operator and by type of property.

As a new stockholder, you are probably also interested in knowing where we have come from. Here are some of our historical highlights:

• Even prior to the CRP merger, HCP had assembled a diverse portfolio of healthcare facilities that made it the nation’s largest healthcare real estate investment trust.
• In 2006, we celebrated our 21^st year as a public company listed on the New York Stock Exchange under the symbol “HCP”. In that time, we have generated a compounded annual total return of 18%.
• We have grown our dividend every year and our annualized dividend for 2006 is $1.70. We have consistently paid quarterly dividends each February, May, August and November, including February, May and August 2006.
• We are led by a strong management team committed to a conservative, investment grade balance sheet.

It is our firm expectation that this track record of growth and strong financial performance will continue. In fact, with the addition of CRP, we believe our enhanced scale, financial resources and operating flexibility will allow us to capitalize on additional investment opportunities in one of the nation’s most attractive industries.

You will be receiving two mailings from The Bank of New York. One mailing will include a Direct Registration Transaction Advice, reporting the number of whole shares of HCP common stock credited to your account. The other mailing will include a check(s) for the cash portion of the merger consideration and for cash in lieu of any fractional share of HCP common stock that would otherwise have been issued in the merger. You can find a sample Direct Registration Transaction Advice (or DRTA), as well as other materials concerning the Direct Registration System, on this website.

Please note that these mailings may not be completed for up to two weeks following the closing of the merger (October 5, 2006). After that time, if you have not received the mailings, please contact The Bank of New York as provided below.

We are delighted to welcome you as a stockholder and appreciate your interest in HCP.

Sincerely,
James F. Flaherty III
Chairman and Chief Executive Officer