Manulife US REIT - Annual Report 2021

MANULIFE US REIT Dear Unitholders On behalf of the Board of Directors and Manager, we are pleased to present MUST’s annual report for its financial year ended 31 December 2021 (FY2021). In Conversation with the Chairman and CEO Chairman Hsieh Tsun-Yan and CEO Jill Smith share their views on a year of stabilisation, recovery and preparations for rejuvenation and transformation of the REIT in the post- pandemic environment to create resilience and sustain growth. Chairman: As 2021 commenced and the pandemic entered its second year, MUST was prepared to face further difficult times with a strategy to future- proof its portfolio through a two-pronged approach of increasing its exposure to growth markets and enhancing the sustainability performance of its assets. In the first half of 2021, the rollout of the U.S. vaccination programme quelled the pandemic, enabling the reopening of the U.S. economy and a strong rebound in annualised GDP growth of 5.7%. As the economy took off, unemployment fell to 3.9% by December, consumer demand surged, and supply chains became disrupted. As a result, by end 2021, inflation had accelerated to an annual rate of 7.0%. To curb the overheating economy, the U.S. Federal Reserve has signalled that interest rates will increase in 2022. The U.S. office-using sector was not left behind in the recovery and, as business confidence grew, tenants across all trade sectors started planning for a return to the office and for longer term commitment to their space requirements. The year ended on a strong note for U.S. office with greater transaction volumes, increased leasing activity and strong projections for 12-month rent growth inmany office markets including those for MUST. Message to Unitholders (L) Jill Smith Chief Executive Officer (CEO) (R) Hsieh Tsun-Yan Chairman 10