Manulife US REIT - Annual Report 2021

MANULIFE US REIT 32 Tenant Retention and Rental Reversion Notwithstanding COVID-related challenges, MUST was able to successfully retain 55.7% of its tenants in 2021, with a rental reversion of -0.8%. The rental reversion is +3.3% excluding Michelson. There is no income support arrangement within the portfolio. Passing Rent and Portfolio Rental Escalations by GRI The portfolio’s average passing rent as at 31 December 2021 and average rent set to expire in 2022 are US$39.23 psf and US$39.96, respectively. The expiring rents in 2022 are currently ~2.1%belowmarket rents of US$40.82. There are no lease expiries in Michelson in 2022. Top 10 Tenants by GRI (%) The portfolio’s top 10 tenants contributed 32.8% of the portfolio’s GRI as at 31 December 2021. Most of these anchor tenants include headquarters, listed companies as well as government agencies. This reflects the high quality and stability as well as low tenant concentration risk in MUST’s portfolio. The total number of tenants was 186 as at 31 December 2021. Tenants % by GRI The William Carter Company 5.4 TCW Group 3.8 Kilpatrick Townsend 3.5 The Children’s Place 3.1 United Nations Foundation 3.1 US Treasury 3.0 Quinn Emanuel Trial Lawyers 2.9 Hyundai Capital America 2.9 Amazon Corp 2.8 ACE American 2.3 Total 32.8 Strong Portfolio Occupancy Rate As at 31 December 2021, the portfolio had a high occupancy rate of 92.3%, which is above the U.S. National Class A occupancy rate of ~83.2%. Annual escalations of 2.6% p.a. Mid-term/periodic escalations No escalations (83% government leases) 66.5 29.4 4.1 In-place Rental Escalations as at 31 December 2021 (%) Operational Review Sunset Corridor, Hillsboro 90.0 100.0 Tempe, Phoenix Chandler, Phoenix 100.0 85.7 Portfolio’s Occupancy above U.S. Market Average in Respective Submarkets (%) 1 Downtown LA Irvine, Orange County Buckhead, Atlanta Fairfax Center Midtown, Atlanta Downtown Sacramento Meadowland, Secaucus Hudson Waterfront, Jersey City Washington D.C. 81.0 76.5 84.6 78.8 82.8 81.0 78.5 93.0 88.6 87.2 94.5 90.8 96.7 97.7 93.8 91.6 88.3 92.3 83.2 1 Average Market Occupancy MUST’s Occupancy MUST Weighted Average U.S. Class A Average 80.3 81.4 79.4 1 JLL 4Q2021 U.S. Office Outlook.