8 TRADE AND OTHER PAYABLES (CONT'D) As at 31 December 2024, accrued expenses include accrual for the Manager’s base fee of US$4.3 million (2023: US$4.0 million) for the period from 1 January 2024 to 31 December 2024 (2023: 1 July 2023 to 31 December 2023), and property management fee of US$6.8 million (2023: US$2.5 million) for the period from 1 July 2023 to 31 December 2024 (2023: 1 July 2023 to 31 December 2023), and the fee payable to lenders in relation to the 2024 Net Proceeds Target of US$2.3 million (2023: Nil). Other payables include tenant improvement payables of US$0.2 million (2023: US$0.4 million). Deferred revenue relates to fees received in relation to lease termination and amendments for certain tenants to be amortised over the remaining lease term. 9 LOANS AND BORROWINGS Group and Trust 2024 2023 US$’000 US$’000 Current Unsecured bank loans − 48,078 Unsecured revolving credit facility (“RCF”) − 1,922 Less: Unamortised transaction costs − (120) − 49,880 Non-current Unsecured bank loans 608,014 710,302 Unsecured RCF − 28,398 Unsecured Sponsor-Lender Loan 137,000 137,000 Accrual for Sponsor-Lender Loan exit premium 3,821 99 Less: Unamortised transaction costs (2,883) (5,356) 745,952 870,443 745,952 920,323 The Property Funds Appendix states that the aggregate leverage limit is not considered to be breached if exceeding the limit is due to circumstances beyond the control of the Manager. As a decline in the valuation of investment properties has resulted in the aggregate leverage of Manulife US REIT exceeding 50%, there is no breach of the aggregate leverage limit as defined by the Property Funds Appendix. As at 31 December 2024, the Group had gross borrowings of US$745.0 million (2023: US$925.7 million), an aggregate leverage ratio of 60.8% (2023: 58.3%) and interest coverage ratio (“ICR”) of 1.7 times (2023: 2.4 times). 69.4% of the gross borrowings have fixed interest rates or have been hedged (2023: 91.3%), which reduces short-term cash flow volatility from floating interest rate movements. Pursuant to the Recapitalisation Plan, the approval of the resolutions during the Extraordinary General Meeting held on 14 December 2023, and the Master Restructuring Agreement, the Sponsor granted an unsecured loan of US$137.0 million for a period of six-years at an interest rate of 7.25% paid quarterly (the “Sponsor-Lender Loan”) with an exit premium of up to 21.16%. The weighted average interest rate on borrowings as at 31 December 2024 was 4.53% (2023: 4.15%) per annum, and the weighted average debt maturity was 2.9 years (31 December 2023: 3.3 years). Including the exit premium on the Sponsor-Lender Loan, the weighted average interest rate on borrowings as at 31 December 2024 was 5.03% (2023: 4.55%). All of the Group’s properties are unencumbered as at 31 December 2024 and 31 December 2023. ANNUAL REPORT 2024 | 171 NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024
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