Manulife US REIT - Annual Report 2021

ANNUAL REPORT 2021 147 Group Note 2021 2020 US$’000 US$’000 Cash flows from operating activities Net income/(loss) for the year before tax 40,558 (65,983) Adjustments for: Amortisation 6 1,932 (684) Net change in provision for expected credit losses 5 (1,743) 3,598 Interest income (21) (166) Finance expenses 18 29,145 29,739 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 Net fair value change in derivatives (13,896) 11,897 Net fair value change in investment properties 6 42,423 128,519 Net unrealised foreign exchange losses/(gains) 51 (70) Operating income before working capital changes 111,604 120,581 Changes in working capital: Trade and other receivables 3,120 (2,911) Prepayments 214 (451) Other asset − 1,405 Trade and other payables 1,450 (9,208) Security deposits (65) 592 Rent received in advance 1,370 1,820 Cash from operating activities 117,693 111,828 Tax paid (134) (1,923) Interest paid (26,933) (27,861) Net cash from operating activities 90,626 82,044 Cash flows from investing activities Acquisition of investment properties and related assets and liabilities (200,966) − Payment for capital expenditure and other costs related to investment properties (29,981) (24,174) Interest received 21 166 Net cash used in investing activities (230,926) (24,008) Cash flows from financing activities Proceeds from issuance of Units 13 100,001 − Payment of transaction costs relating to issuance of Units 13 (1,806) − Proceeds from issuance of preferred units 1,150 − Redemption of preferred units (125) − Payment of transaction costs relating to preferred units (325) − Proceeds from loans and borrowings 367,300 141,929 Repayment of loans and borrowings (248,800) (102,319) Payment of transaction costs relating to loans and borrowings (1,205) (1,036) Distributions paid to Unitholders (83,973) (70,737) Net cash from/(used in) financing activities 132,217 (32,163) Net (decrease)/increase in cash and cash equivalents (8,083) 25,873 Cash and cash equivalents at beginning of the year 86,674 60,748 Effect of exchange rate fluctuations on cash held in foreign currency (10) 53 Cash and cash equivalents at end of the year 4 78,581 86,674 Consolidated Statement of Cash Flows For the year ended 31 December 2021 The accompanying notes form an integral part of the financial statements.