Manulife US REIT - Annual Report 2020

Dear Unitholders On behalf of the Board of Directors and the Manager, we are pleased to present MUST’s annual report for its financial year ended 31 December 2020 (FY2020). FY2020was a year like no other due to the COVID-19 pandemic. In the U.S., lives, businesses and the economy suffered massive disruption and deep uncertainty over the future and leading to stock market volatility. MUST had entered 2020 on a high note, having been included in the FTSE EPRA Nareit Global Developed Index in December 2019, and we expected to be able to make further progress along our growth path through the year, but the pandemic curbed our plans. At the onset of the pandemic, we immediately acted to address the operational challenges making MUST’s nine office properties as safe as possible for tenants, staff, and vendors. We implemented strategies to secure MUST’s financial position and distributed 100.0% of our FY2020 distributable income. 2020 became a year of constant adaption to new norms such as the phenomena of Working From Home (WFH) as the pandemic impacted all facets of life and business. We believe our prompt actions enabled MUST to weather the worst of the U.S. pandemic and MUST’s Trophy and Class A portfolio proved resilient through such difficult times. With 2020 behind us, the fast roll-out of vaccines in the U.S., evidence of U.S. businesses reopening and a return to work, our REIT can pivot to take advantage of emerging trends in office real estate and move along a renewed path towards sustainable growth. Resilience in Adversity Against the backdrop of the sharp U.S. economic and business slump, MUST reported NPI of US$115.8 million and distributable income of US$89.0 million, a Year-on-Year (YoY) growth of 4.6% and 6.8% respectively. MUST declared its FY2020 DPU of 5.64 US cents. This was 5.4% lower YoY mainly due to lower property income from sluggish leasing and lower carpark income plus a provision for expected credit losses in 2H2020. Half of the credit provision was attributed to one tenant and subsequently settled and paid up in February 2021 bringing our 2020 rent collections to an average of 99.0% of rentals. As at end December 2020, only 0.6% rental deferment and 0.5% rental abatement by Gross Rental Income (GRI) were provided to our tenants mainly from the F&B sectors. Despite the challenging U.S. economic environment, 279,000 sq ft of leases, or 5.9% by portfolio NLA were executed in 2020 with a WALE of 6.4 years. Overall, MUST’s WALE stood at 5.3 years as at 31 December 2020. Whilst increases in rental reversion for FY2020 as a whole were muted, we signed long leases with high quality tenants from the Legal, Real Estate, Jill Smith Chief Executive Officer Hsieh Tsun-Yan Chairman 8 MANULIFE US REIT MESSAGE TO UNITHOLDERS