Manulife US REIT - Annual Report 2021

MANULIFE US REIT 26 The following table summarises the facilities that MUST had as at 31 December 2021: Sources of Funding Capacity (US$ million) Amount utilised (US$ million) Utilised (%) Property level: - Property loan facilities 270.1 270.1 100.0 - Good news facilities 39.0 17.1 43.8 309.1 287.2 92.9 Trust level: - Loan facilities 663.0 573.0 86.4 - Uncommitted RCFs 200.0 107.5 53.8 - Committed RCFs 100.0 7.3 7.3 - Multicurrency debt issuance programme 1,000.0 – – 1,963.0 687.8 35.0 Total 2,272.1 975.0 42.9 The good news facilities and committed RCFs are used to fund capital expenditures, leasing costs and general working capital requirements. In addition, MUST has an uncommitted and unsecured RCF of US$200.0 million used as bridge financing for acquisitions. This uncommitted and unsecured RCF was obtained during the year to replace the previous secured acquisition bridge facility of US$200.0 million. Financial Review Capital Management The Manager continues to maintain a proactive and prudent approach towards capital management to fund the growth of the portfolio while managing both interest rate and refinancing risks. MUST maintains strong and diversified banking relationships with reputable banks and has established various bank facilities and capital market programmes to enhance its financial flexibility and diversification in funding sources. InApril 2021,MUSTutilised its unsecured sustainability-linked loan of US$250.0millionwhich further lowered the interest costs. Proceeds from the loan were used to refinance the Michelson and Penn mortgage facilities, as well as to fund capital expenditures and leasing costs. Post-refinancing, 70.4% of MUST’s properties were unencumbered as at 31 December 2021. In November 2021, MUST raised approximately US$100.0 million through a private placement of 154.1 million new Units, in combination with the utilisation of uncommitted revolving credit facility (RCF), to fund the acquisition of Diablo, Park Place and Tanasbourne. The private placement was more than two times covered and saw strong participation from new and existing institutional investors and private wealth clients. In December 2021, MUST obtained a US$90.0 million unsecured sustainability-linked facility, which was subsequently utilised in January 2022 to refinance the bridge loan drawn to partially fund the acquisitions of Diablo, Park Place and Tanasbourne. Subsequent to the drawdown, MUST has increased its proportion of green and sustainability-linked loans to 45.1% in January 2022, from 11.7% at the end of 2020. On 26 January 2022, MUST entered into deeds of release and dischargewith the security agent to release the security granted in respect of all its Trust-level loan facilities and committed RCFs. Following the execution of the deeds of release and discharge, all Trust-level facilities are unsecured.