Manulife US REIT - Annual Report 2020

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2020 25 SIGNIFICANT RELATED PARTY TRANSACTIONS In addition to the related party information disclosed elsewhere in the financial statements, the following significant related party transactions were carried out at terms agreed between the parties during the financial years: Group 2020 2019 US$’000 US$’000 Rental received/receivable from a related party 708 675 Manager’s acquisition fee paid − 3,208 Manager’s base fee paid/payable 8,897 8,334 Manager’s performance fee paid − 1,360 Trustee’s fee paid/payable 288 269 Property manager’s management fee paid/payable 4,834 4,276 Leasing fees to a related party 167 338 Construction supervision fee to a related party 253 669 Reimbursements to a related party 7,148 6,391 Settlement of liabilities including withholding taxes 202 94 26 FINANCIAL RATIOS Group 2020 2019 % % Ratio of expenses to weighted average net assets 1 – including performance component of the Manager’s management fees 0.97 1.09 – excluding performance component of the Manager’s management fees 0.97 0.97 Portfolio turnover rate 2 − − 1 The annualised ratios are computed in accordance with the guidelines of the Investment Management Association of Singapore. The expenses used in the computation relate to expenses of the Group, excluding property expenses, finance expenses, net foreign exchange differences and income tax expense. The Group did not incur any performance fee for the financial year ended 31 December 2020. 2 The annualised ratio is computed based on the lesser of purchases or sales of underlying investment properties of the Group expressed as a percentage of daily average net asset value in accordance with the formulae stated in the CIS Code. 27 SUBSEQUENT EVENTS Distribution On 8 February 2021, the Manager announced a distribution of US 2.59 cents per Unit for the period from 1 July 2020 to 31 December 2020. Investment properties In connection with “bonds for title” arrangement, the lease between the Development Authority and ATL Phipps expired pursuant to its terms on 31 December 2020. 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 instead of a leasehold interest. 165 ANNUAL REPORT 2020