Manulife US REIT - Annual Report 2020

DISTRIBUTION STATEMENT For the year ended 31 December 2020 Group 2020 2019 US$’000 US$’000 Amount available for distribution to Unitholders at the beginning of the year 22,788 38,816 Net (loss)/income for the year (43,284) 47,565 Distribution adjustments (Note A) 132,251 35,776 Income available for distribution to Unitholders for the year 88,967 83,341 Amount available for distribution to Unitholders 111,755 122,157 Distributions to Unitholders: – Distribution of US 3.04 cents per Unit for the period from 1 July 2018 to 31 December 2018 – (38,800) – Distribution of US 2.14 cents per Unit for the period from 1 January 2019 to 8 May 2019 – (27,395) – Distribution of US 0.90 cents per Unit for the period from 9 May 2019 to 30 June 2019 – (12,578) – Distribution of US 1.47 cents per Unit for the period from 1 July 2019 to 29 September 2019 – (20,596) – Distribution of US 1.45 cents per Unit for the period from 30 September 2019 to 31 December 2019 (22,746) – – Distribution of US 3.05 cents per Unit for the period from 1 January 2020 to 30 June 2020 (47,991) – Total distribution to Unitholders (70,737) (99,369) Amount available for distribution to Unitholders at the end of the year 41,018 22,788 Distribution per Unit (“DPU”) (US cents): – DPU 1 5.64 5.96 Note A – Distribution adjustments comprise: – Property related non-cash items 2 (684) (3,707) – Amortisation of upfront debt-related transaction costs 3 1,689 1,412 – Manager’s base fee paid/payable in Units 8,897 8,334 – Manager’s performance fee paid in Units – 1,360 – Property Manager’s management fee paid/payable in Units 4,834 4,276 – Trustee’s fee 288 269 – Net fair value change in derivatives 11,897 1,088 – Net fair value change in investment properties 128,519 13,512 – Deferred tax (income)/expense (23,430) 8,809 – Other items 4 241 423 Distribution adjustments 132,251 35,776 1 The DPU relates to the distributions in respect of the relevant financial year. The distribution for the period from 1 July 2020 to 31 December 2020 will be paid subsequent to the financial year end. The distribution for the period from 30 September 2019 to 31 December 2019 was paid in 2020. 2 This includes straight-line rent adjustments and amortisation of tenant improvement allowance, leasing commissions and free rent incentives. 3 Upfront debt-related transaction costs are amortised over the life of the loans and borrowings. 4 This includes non-tax deductible items and other adjustments including rent free reimbursements. The rent free reimbursements were in relation to the vendors of certain properties that had granted rent free periods to certain tenants under the existing lease arrangements. As part of the terms of the acquisitions, these vendors reimbursed Manulife US REIT the free rent under existing lease arrangements and the rent free reimbursements are applied towards the distributable income. The accompanying notes form an integral part of the financial statements. 122 MANULIFE US REIT