Manulife US REIT - Annual Report 2020

Following the appointment of a new Independent Non- Executive Director and member of the Audit and Risk Committee on 10 November 2020, 50.0% of the Manager's Independent Directors are female. Whilst more details can be found in MUST’s 2020 Sustainability Report from page 88, strides were made in corporate governance and Board diversity. Outlook and Opportunities Following the outbreak of the COVID-19 pandemic, U.S. GDP suffered a severe contraction declining by an annualised rate of 32.9% in 2Q2020 whilst the unemployment rate soared to 14.5%. To mitigate the economic damage, the U.S. Congress approved a relief and stimulus package and the Federal Reserve lowered interest rates. As a result, GDP rebounded, growing at an annualised rate of 33.4% and 4.0% respectively in 3Q and 4Q 2020 and unemployment dropped to 6.7% with even better numbers for the office-using sectors such as professional services. At the end of 2020, news of a further US$900 billion stimulus package, and the U.S. Federal Reserve’s commitment to maintaining a low interest rate environment until at least 2023 added to the belief that U.S. economic recovery will accelerate through 2021. President Biden’s administration has been quick to roll out an effective COVID-19 vaccine programme and it plans to have enough vaccine for the U.S. adult population by the end of May 2021, accelerating the reopening of schools, businesses and a return to work. While operating conditions for the first half of 2021 may remain challenging, U.S. office-using tenants are stirring and we believe it is a matter of time before the leasing market regains momentum. Meanwhile, we will continue to build on MUST’s financial position to ensure that we are well-poised to take advantage of growth opportunities as they arise. From MUST’s strong base of nine properties, a portfolio painstakingly built over the past five years, we are setting a course for transformational growth capitalising on post COVID-19 themes. From our current position of some 10.0% in high growth sectors, we are aiming to enhance the portfolio, targeting at least 20.0% in technology, healthcare and other areas of the new economy. We intend to further increase our existing exposure (over 50.0%) to areas of population migration which exhibit lower density, affordable live-work- play environments, diversifying our geographic locations to include those such as the vast sunbelt of America. To further this course, at US$2.0 billion AUM, we are not averse to joint ventures and other corporate actions in order to propel and secure the future for MUST’s Unitholders. Note of Appreciation As MUST approaches five years since its IPO on 20 May 2016, we reflect on its progress, tripling in AUM, the accretive acquisition of six properties, stable results and weathering the COVID-19 pandemic. With its ever-growing institutional investor base, MUST remains a highly regarded choice for investors looking for a REIT that offers an attractive yield and the benefits of geographical diversification encased in an efficient tax structure. Following such a challenging year, we wish to express our appreciation to our Board of Directors for their sound counsel, and management team and staff for their unwavering dedication to the REIT. To our many existing and the considerable number of new Unitholders, we are deeply appreciative of your steadfast support in this most difficult of years. We thank our Sponsor too for its support and extend thanks to our business partners, advisors, tenants, and wider members of the investment community, for standing alongside MUST. Mr Lau Chun Wah, Lead Independent Non-Executive Director and Nominations and Remuneration Chairman resigned on 29 September 2020 and, as an inaugural member of the Board, we note his contribution. We would like to extend our warmest welcome to Mrs Karen Tay Koh as an Independent Non-Executive Director and look forward to her counsel and guidance as we plan for renewed growth and new frontiers in the years ahead. Hsieh Tsun-Yan Chairman Jill Smith Chief Executive Officer 10 MANULIFE US REIT MESSAGE TO UNITHOLDERS