FINANCIAL REVIEW DEBT MATURITY PROFILE As at 31 December 2024, the total gross outstanding debt of MUST was US$745.0 million with an aggregate leverage of 60.8%, an increase from 58.3% as at 31 December 2023, mainly due to a decline in portfolio valuation. The Manager recognises that the higher aggregate leverage will increase the risk profile of MUST. The Property Funds Appendix states that the aggregate leverage limit is not considered to be breached if exceeding the limit is due to circumstances beyond the control of the Manager. As a decline in the valuation of investment properties has resulted in the aggregate leverage of MUST exceeding 50.0%, there is no breach of the aggregate leverage limit as defined by the Property Funds Appendix. However, the Manager will not be able to incur additional indebtedness. Accordingly, MUST would have to fund Capex, tenant improvement allowances and leasing costs with available cash, cash from operations and through proceeds from further dispositions pursuant to the Disposition Mandate. MUST’s debt maturity profile remains well-staggered with a weighted average debt maturity of approximately 2.9 years as at 31 December 2024 and there is no debt maturing in 2025. As at 31 December 2024, 69.4% of the gross borrowings have fixed rates or have been hedged with derivative financial instruments, which reduces short-term interest rate risk. MUST targets to maintain an optimal hedge ratio of 50% to 80% as it repays debt with proceeds from the expected sale of assets in line with the Recapitalisation Plan. The debt maturity profile is also well-staggered over four years with no more than 30.2% of debt maturing in any year. The fair value of the derivative assets represents 3.4% of the net assets of MUST as at 31 December 2024. DEBT MATURITY PROFILE AS AT 31 DECEMBER 2024 (US$ m) 2029 2027 2028 2026 137.0 225.3 178.8 203.9 Trust-level term loan Sponsor-lender loan % of total debt 27.4% 24.0% 30.2% 18.4% 24 | MANULIFE US REIT
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