Manulife US REIT - Annual Report 2021

MANULIFE US REIT 190 For the year ended 31 December 2021 Notes to the Financial Statements 26 SUBSEQUENT EVENTS Distribution On 9 February 2022, the Manager announced a distribution of US 0.32 cents per Unit for the period from 9 December 2021 to 31 December 2021. Loans and borrowings On 10 January 2022, Manulife US REIT refinanced US$90.0 million of unsecured revolving credit facilities with a Trust-level term loan. On 26 January 2022, Manulife US REIT and certain of its subsidiaries entered into deeds of release and discharge (“Deeds of Release and Discharge”) with the security agent to release the security granted in respect of the Trust- level term loans, the First US$50.0 Million Committed RCF and the Second US$50.0 Million Committed RCF. Following the execution of the Deeds of Release and Discharge, these facilities are unsecured. Preferred units On 26 January 2022, Hancock S-REIT Portland LLC, Hancock S-REIT Chandler LLC and Hancock S-REIT Tempe LLC (the “U.S. Sub-REITs” or “subsidiaries”) each issued 115 preferred units at US$1,000 per preferred unit to persons who are unrelated to The Manufacturers Life Insurance Company and the Group (the “Preferred Units Issuance”). The indirect wholly-owned subsidiaries of Manulife US REIT were established to each hold the newly acquired properties, namely Tanasbourne, Park Place and Diablo. The Preferred Units Issuance is required in order to meet one of the requirements for the U.S. Sub-REITs to qualify for taxation as a real estate investment trust for U.S. federal income tax purposes under the United States Internal Revenue Code of 1986, as amended. Each of the preferred units carries a fixed dividend of 12.0% per annum, are generally non-voting and are redeemable at the option of each of the U.S. Sub-REITs. The proceeds from the Preferred Units Issuance will be used towards payment of the expenses incurred in connection with the Preferred Units Issuance as well as towards the operating expenses of the U.S. Sub-REITs and the properties of the Group. 27 AUTHORISATION OF FINANCIAL STATEMENTS FOR ISSUE The financial statements were authorised for issue by the Manager and the Trustee on 14 March 2022.