DISTRIBUTION STATEMENT For the year ended 31 December 2024 Group 2024 2023 US$’000 US$’000 Amount available for distribution to Unitholders at the beginning of the year 74,348 38,075 Net loss for the year (178,003) (379,963) Distribution adjustments (Note A) 216,263 454,255 Income available for distribution to Unitholders for the year 38,260 74,292 Amount available for distribution to Unitholders 112,608 112,367 Distribution to Unitholders: - Distribution of US 2.14 cents per Unit for the period from 1 July 2022 to 31 December 2022 − (38,019) Total distribution to Unitholders − (38,019) Amount available for distribution to Unitholders at the end of the year 112,608 74,348 Distribution amount to Unitholders at the end of the year1 − − Number of Units in issue at the end of the year (’000) 1,776,565 1,776,565 Distribution per Unit (“DPU”) (US cents): – DPU1 − − Note A – Distribution adjustments comprise: – Property related non-cash items2 8,985 8,346 – Amortisation of upfront debt-related transaction costs3 1,977 2,121 – Manager’s base fee paid/payable in Units4 − 3,795 – Property Manager’s management fee paid/payable in Units4 − 2,506 – Trustee’s fee 226 267 – Net fair value change in derivatives 16,577 15,653 – Net fair value change in investment properties 187,936 438,561 – Loss on disposal of investment properties 1,618 908 – Deferred tax income (777) (18,298) – Other items5 (279) 396 Distribution adjustments 216,263 454,255 1 Manulife US REIT’s distribution policy is to distribute at least 90% of its annual distributable income. The actual level of distribution will be determined at the discretion of the Board of Directors of the Manager. However, pursuant to the Recapitalisation Plan and the entry into the Master Restructuring Agreement, Manulife US REIT halted distributions to Unitholders till 31 December 2025, unless the early reinstatement conditions (the “Early Reinstatement Conditions”), as set out in the circular to Unitholders dated 29 November 2023, are achieved earlier. 2 This includes straight-line rent adjustments, amortisation of tenant improvement allowance, leasing commissions and free rent incentives. 3 Upfront debt-related transaction costs and costs incurred in relation to the Master Restructuring Agreement are amortised over the remaining term of the loans and borrowings. 4 The Manager has elected to receive 100% payment of the Manager’s base fee in the form of cash commencing from 1 July 2023. The Property Manager has also elected to receive 100% payment of the property management fee in the form of cash commencing 1 July 2023 as directed by each of the property holding U.S. entities of the Group. 5 This includes non-tax deductible items and other adjustments including rent-free reimbursements. The rent-free reimbursements were in relation to the vendors of certain properties that had granted rent-free periods to certain tenants under the existing lease arrangements. As part of the terms of the acquisitions, these vendors reimbursed Manulife US REIT the free rent under existing lease arrangements and the rent-free reimbursements are applied towards the distributable income. The accompanying notes form an integral part of the financial statements. 146 | MANULIFE US REIT
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