Manulife US REIT - Annual Report 2020

STATEMENT OF PORTFOLIO As at 31 December 2020 Description of Property Tenure of Land Occupancy Rates 1 as at 31 December 2020 Occupancy Rates 1 as at 31 December 2019 Fair Value as at 31 December 2020 Fair Value as at 31 December 2019 Percentage of Total Net Assets as at 31 December 2020 Percentage of Total Net Assets as at 31 December 2019 % % US$’000 US$’000 % % Group Commercial Of ce Properties Figueroa Freehold 93.0 93.8 320,000 337,600 27.6 26.8 Michelson Freehold 84.4 90.1 319,000 345,000 27.6 27.4 Peachtree Freehold 90.4 95.0 203,100 210,700 17.5 16.8 Plaza Freehold 96.7 98.9 114,600 119,900 9.9 9.5 Exchange Freehold 94.8 95.8 333,000 348,600 28.8 27.7 Penn Freehold 99.2 100.0 176,500 189,000 15.3 15.0 Phipps Leasehold 2 100.0 100.0 212,100 220,100 18.3 17.5 Centerpointe Freehold 91.7 98.7 118,500 122,800 10.2 9.8 Capitol Freehold 93.3 94.2 196,000 201,300 16.9 16.0 Investment properties 1,992,800 2,095,000 172.1 166.5 Other assets and liabilities (net) (834,912) (836,822) (72.1) (66.5) Net assets 1,157,888 1,258,178 100.0 100.0 1 Based on committed leases. 2 Phipps is subject to a so-called “bonds for title” arrangement under which fee simple title to Phipps is owned by the Development Authority of Fulton County (“Development Authority”), which will lease Phipps to Hancock S-REIT ATL Phipps LLC (“ATL Phipps”) as a way to reduce the real estate taxes payable on Phipps for a specified period. Under this arrangement, no money changes hands for the lease. The lease between the Development Authority and ATL Phipps expired pursuant to its terms on 31 December 2020, and ATL Phipps is in the process of acquiring fee simple title to Phipps from the Development Authority. After the transfer of such fee interest, ATL Phipps will hold a fee interest in the property and commence paying the full amount of real estate taxes on Phipps, which means that Phipps will be assessed in a manner and amount consistent with similar commercial office buildings in the taxing area. Given the expense reimbursement structure of the leases at Phipps, the difference in real estate taxes payable following the expiration of this arrangement will largely be borne by the tenants. Please refer to Note 27. The accompanying notes form an integral part of the financial statements. 126 MANULIFE US REIT