Manulife US REIT - Annual Report 2021

ANNUAL REPORT 2021 31 Proactive Management to Minimise Risk In 2021, the Manager focused on minimising near-term risks in the portfolio and preserving occupancy, while securing new leases to drive income growth. As a result of its proactive efforts combined with its creditworthy tenants and the robust demand for office space in its assets, MUST recorded several positive outcomes in its portfolio. GRI NLA Lease Expiry Profile (%) Well-diversified Tenant Mix with Enhanced Exposure to High-growth Sectors The portfolio continues to enjoy a well-diversified tenant roster withmore than 16 trade sectors represented. During 2021, the portfolio exposure to high-growth tenants in the technology and healthcare sectors increased significantly after the acquisition. The top three largest trades – Finance & Insurance, Legal and Retail – made up approximately 52.3% of the portfolio’s GRI as at end December 2021. • Committed occupancy of 92.3% outperformed the U.S. Class A occupancy levels of 83.2% 1 • 99.8% of gross rents collected in FY2021 • Executed ~654,000 sq ft of leases, a 2.3x increase relative to 2020, making up 12.0% of NLA, and mainly from the Finance & Insurance, Public Administration, Arts, Entertainment and Recreation, and Real Estate sectors • Materially reducing 2022 lease expiries from 18.1% (by NLA) at the start of 2021 to 8.0% as at 31 December 2021 1 JLL 4Q2021 U.S. Office Outlook. 2 For the leases executed and commenced in FY2021, totaling ~118,000 sq ft, the WALE is 5.7 years. Trade Sectors of Leases Signed in 2021 The leases signed in 2021 came from 13 different trade sectors, including the portfolio’s two largest sectors, Finance & Insurance and Public Administration. The new leases, renewals, and tenant expansions executed in 2021 had a WALE by NLA of 4.1 years and accounted for 14.5% of GRI 2 . 8.1 8.0 2022 13.1 12.9 2023 13.5 13.2 2025 47.6 48.0 2027 and beyond 6.8 6.3 2026 10.8 11.6 2024 21.0 Finance & Insurance 7.0 Real Estate 3.1 Grant Giving 1.9 Transportation &Warehousing 12.3 Retail 4.2 Consulting 2.2 Arts, Entertainment & Recreation 1.6 Architectural & Engineering 19.0 Legal 5.0 Public Administration 2.8 Accounting 1.9 Manufacturing 9.2 Information 3.4 Health Care 2.0 Advertising 3.4 Others Trade Sector by GRI (%) 46.7 Finance & Insurance 3.9 Administrative & Support Services 3.3 Architectural & Engineering 9.3 Arts, Entertainment & Recreation 19.7 Public Administration 3.4 Advertising 5.4 Real Estate 1.7 Manufacturing 0.4 Consulting 1.5 Transportation &Warehousing 2.7 Legal 0.7 Health Care 1.2 Information 2021 Leasing Trade Sector by GRI (%) Note: Amounts may not sum up to 100.0% due to rounding. Note: Amounts may not sum up to 100.0% due to rounding. Note: Others comprise of Administrative & Support Services, Accommodation & Food Services, Education and Wholesale Trade.