GOING FORWARD – STABILISATION, RECOVERY, GROWTH The Manager will continue to focus on asset dispositions and use sales proceeds for its debt repayment. It targets to pay off all the US$203.9 million of loans that will come due in 2026, so as to improve its financial metrics and liquidity. To grow the REIT, it will also diversify its portfolio to pursue PORTFOLIO VALUATION SIGNALS STABILISATION IN SOME SUBMARKETS MUST’s portfolio experienced a 9.3% decline in market valuation in 2024 to US$1,137.2 million, narrowing from more than 20% YoY in 2023. The latest valuations reflect signs of stabilisation in select submarkets, while other submarkets continued to experience valuation declines. This shows the diverse economic conditions and leasing challenges in different geographic regions in the U.S. MUST’s valuation decline was due to higher discount and terminal capitalisation rates, reflecting market and property-level risks. These include a decrease in leasing demand due to macroeconomic headwinds and downsizing on the back of lower utilisation of office space, as well as higher vacancy or weak submarket fundamentals at the asset level. The valuations of Tranche 1 properties declined by 15.3% while Tranche 2 and 3 properties recorded smaller declines of 7.1% and 3.9%, respectively. Although properties in softer submarkets such as Washington, D.C. and Los Angeles CBD saw larger declines in values, two properties, Centerpointe (+0.1%) and Phipps (+2.4%), recorded flat to higher valuations as a result of stable discount and terminal capitalisation rates and more favourable market leasing assumptions applied by the valuers. other real estate sectors, alternative real estate investments and creative deal structures, while staying focused on low capital deals and attractive risk-adjusted returns. It will leverage the Sponsor’s global real estate platform and in-house capabilities, such as the latter’s on-the-ground transaction expertise, market research and weekly pipeline updates, to capitalise on value opportunities in the U.S. real estate market. TOP 10 TENANTS BY GRI (%) The portfolio’s top 10 tenants have a long WALE of 5.1 years by GRI. Most of these anchor tenants include headquarters, listed companies as well as government agencies. This reflects the portfolio’s high quality and stability as well as low tenant concentration risk within MUST’s portfolio. As at 31 December 2024, the total number of tenants was 129, and no tenant contributed more than 6.0% of MUST's GRI. Tenant % of Portfolio GRI 1 The William Carter Company 6.0 2 Hyundai Capital America 4.6 3 United Nations Foundation 4.4 4 US Treasury 4.1 5 ACE American 4.1 6 Amazon Corp 3.9 7 Kilpatrick Townsend 3.9 8 Quest Diagnostics 3.7 9 Gibson, Dunn, & Crutcher 3.4 10 CoStar Group, Inc. 2.7 Total % of Portfolio GRI 40.9 Note: Amounts may not sum to 40.9% for top 10 tenants table due to rounding. Property, Location Valuation Direct Cap Rates 31 December 20241 (US$ m) 31 December 20232 (US$ m) Change (%) Change by Tranche3 31 December 2024 (%) Michelson, Irvine 219.5 240.0 -8.5 Tranche 3 (-3.9%) 7.25 Phipps, Atlanta 180.2 176.0 2.4 7.00 Plaza, New Jersey4 43.7 58.0 -24.7 Tranche 2 (-7.1%) 8.00 Exchange, New Jersey 211.6 234.0 -9.6 6.50 Peachtree, Atlanta 164.6 171.0 -3.7 7.50 Penn, Washington, D.C. 79.1 108.0 -26.8 Tranche 1 (-15.3%) 8.00 Figueroa, Los Angeles 117.0 139.0 -15.8 8.25 Diablo, Tempe 45.6 52.0 -12.3 7.75 Centerpointe, Washington, D.C. 75.9 75.8 0.1 7.50 Total/Weighted Average 1,137.2 1,253.8 -9.3 7.33 1 Valuations by Cushman & Wakefield of Texas, Inc. 2 Valuations by JLL Valuation & Advisory, LLC, except Diablo by Colliers International Valuation & Advisory Services, LLC. 3 Refer to slide 8 of the 14 December 2023 Extraordinary General Meeting Presentation for details on the asset tranches. 4 Plaza has been divested on 25 February 2025 (U.S. time). ANNUAL REPORT 2024 | 27
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