Manulife US REIT - Annual Report 2021

MANULIFE US REIT 144 Group 2021 2020 US$’000 US$’000 Amount available for distribution to Unitholders at the beginning of the year 41,018 22,788 Net income/(loss) for the year 39,413 (43,284) Distribution adjustments (Note A) 46,186 132,251 Income available for distribution to Unitholders for the year 85,599 88,967 Amount available for distribution to Unitholders 126,617 111,755 Distributions to Unitholders: – 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) – Distribution of US 2.59 cents per Unit for the period from 1 July 2020 to 31 December 2020 (40,998) − – Distribution of US 2.70 cents per Unit for the period from 1 January 2021 to 30 June 2021 (42,975) − – Distribution of US 2.31 cents per Unit for the period from 1 July 2021 to 8 December 2021 (36,962) Total distribution to Unitholders (120,935) (70,737) Amount available for distribution to Unitholders at the end of the year 5,682 41,018 Distribution per Unit (“DPU”) (US cents): – DPU 1 5.33 5.64 Note A – Distribution adjustments comprise: – Property related non-cash items 2 1,932 (684) – Amortisation of upfront debt-related transaction costs 3 1,711 1,689 – Manager’s base fee paid/payable in Units 8,560 8,897 – Property Manager’s management fee paid/payable in Units 4,595 4,834 – Trustee’s fee 284 288 – Net fair value change in derivatives (13,896) 11,897 – Net fair value change in investment properties 42,423 128,519 – Deferred tax expense/(income) 978 (23,430) – Other items 4 (401) 241 Distribution adjustments 46,186 132,251 1 The DPU relates to the distributions in respect of the relevant financial year. The distribution for the period from 1 July 2021 to 8 December 2021 and the distribution for the period from 9 December 2021 to 31 December 2021 will be paid subsequent to the financial year end. The distribution for the period from 1 July 2020 to 31 December 2020 was paid in 2021. 2 This includes straight-line rent adjustments, amortisation of tenant improvement allowance, and 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. Distribution Statement For the year ended 31 December 2021 The accompanying notes form an integral part of the financial statements.