Dear Unitholders, 2024 has been a pivotal year for MUST as we kickstarted the Recapitalisation Plan to stabilise the REIT and positioned ourselves for recovery and growth. As we observe gradual signs of recovery in the U.S. office sector, we are also proud to share the significant progress we have made with our disposition plan to repay debt and improve the REIT’s stability. FROM STABILISATION TO RECOVERY From the onset, the Sponsor has been firmly behind the REIT in its Recapitalisation Plan, being directly involved in negotiations with lenders and putting together a Sponsor’s package, including the purchase of Park Place for US$98.7 million and a six-year US$137.0 million loan extended to the REIT. The Board swiftly appointed a new management team with the departure of the previous management. John, our CEO and CIO, has more than 25 years of in-depth and hands-on experience managing U.S. real estate portfolios. In his last role at DWS, he was responsible for a portfolio with a net asset value of US$15 billion across industrial and office. Mushtaque, our CFO, was appointed through an internal transfer from Manulife Investment Management, and has extensive financial management and accounting experience in investment management of real estate and other private assets. Together, they have helped MUST to strengthen relationships with stakeholders, enhance commercial, operational and financial efficiencies, and swiftly execute the REIT’s disposition plan. In October 2024, we divested Capitol in Sacramento, California for a net consideration of approximately US$110 million. The proceeds, along with existing cash from our balance sheet, were used to pay off 2025 debts. In February 2025, we completed the sale of Plaza in Secaucus, New Jersey for a net consideration of approximately US$40 million, with proceeds used to pay down 20% of 2026 debts. RETURNING TO GROWTH The Sponsor will continue to support MUST’s growth ambitions through its global real estate platform which has in-house capabilities such as on-the-ground transaction and capital markets expertise, market research and strategy, and asset managers. These investment capabilities can empower the Manager to navigate the market and negotiate leases effectively, while tapping on value opportunities in the dislocated U.S. real estate market. While our focus remains on optimising leasing and business operations to enhance cash flows, balance sheet liquidity and returns, we are also looking to return to a growth trajectory. We plan to diversify into other real estate sectors and alternative investments that offer attractive and accretive cash yields and are less capital intensive. Together, we will explore creative deal structuring to acquire higher-yielding assets that we also expect to be long-term accretive to the balance sheet. By maintaining a disciplined and forward-looking approach, we are confident of adapting and thriving amidst a gradual recovery in U.S. office market conditions. Our goal is to resume distributions and bring the REIT back to a growth path, distinguished by resilience, strategic vision and sustainable growth. Looking forward, although macro headwinds persist in the U.S. office sector, we are optimistic that tailwinds such as the U.S. President's return-to-office mandate will help to bolster recovery for the sector. APPRECIATION I would like to extend my heartfelt gratitude to our Unitholders for their patience and unwavering support as we navigate this journey together. Thank you to our Board of directors, management team and dedicated employees for their steadfast commitment and tireless efforts to push the Recapitalisation Plan forward. My appreciation also extends to our lenders for their close partnership in working with us to achieve our recapitalisation goals. Last but not least, I would like to thank our Sponsor for the strong support they have shown for MUST. With the REIT's stabilisation phase in progress, we are looking forward to advancing towards recovery and growth by leveraging on the Sponsor’s resources to capitalise on investment opportunities in the U.S. We hope to resume our distributions and create long-term value for our Unitholders. Sincerely, Marc Feliciano Chairman Marc Feliciano Chairman CHAIRMAN’S MESSAGE 10 | MANULIFE US REIT
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