Manulife US REIT - Annual Report 2020

CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended 31 December 2020 Group Note 2020 2019 US$’000 US$’000 Cash ows from operating activities Net (loss)/income for the year before tax (65,983) 58,046 Adjustments for: Amortisation 7 (684) (3,707) Provision for expected credit losses 5 3,598 − Interest income (166) (473) Finance expenses 19 29,739 26,180 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 Net fair value change in derivatives 11,897 1,088 Net fair value change in investment properties 7 128,519 13,512 Net unrealised foreign exchange gains (70) (1) Operating income before working capital changes 120,581 108,615 Changes in working capital: Trade and other receivables (2,911) 1,460 Prepayments (451) (209) Other asset 1,405 (1,405) Trade and other payables (9,208) (971) Security deposits 592 561 Rent received in advance 1,820 3,167 Cash from operating activities 111,828 111,218 Tax paid (1,923) (1,151) Interest paid (27,861) (23,902) Net cash from operating activities 82,044 86,165 Cash ows from investing activities Acquisition of investment properties and related assets and liabilities − (310,954) Payment for capital expenditure, acquisition fee and other costs related to investment properties (24,174) (45,027) Interest received 166 473 Net cash used in investing activities (24,008) (355,508) Cash ows from nancing activities Proceeds from issuance of Units 14 − 236,656 Payment of transaction costs relating to issuance of Units 14 − (4,707) Proceeds from loans and borrowings 141,929 268,406 Repayment of loans and borrowings (102,319) (122,300) Payment of transaction costs relating to loans and borrowings (1,036) (2,694) Distributions paid to Unitholders (70,737) (99,369) Net cash (used in)/from nancing activities (32,163) 275,992 Net increase in cash and cash equivalents 25,873 6,649 Cash and cash equivalents at beginning of the year 60,748 54,093 Effect of exchange rate fluctuations on cash held in foreign currency 53 6 Cash and cash equivalents at end of the year 4 86,674 60,748 The accompanying notes form an integral part of the financial statements. 125 ANNUAL REPORT 2020