DRIVING SUSTAINABLE GROWTH ECONOMIC SUSTAINABILITY MUST continues to deliver long-term returns for our Unitholders through sound and sustainable capital management. The Manager has put together a threepronged strategic roadmap under its Recapitalisation Plan, namely Stabilisation, Recovery and Growth, referring to the three phases it has to undergo to eventually return to a growth path. The Stabilisation phase focuses on asset dispositions and debt repayment, along with strategic capital expenditure and liquidity management, while the Recovery phase looks at implementing strategies to improve cash flows and returns via optimising leasing and business operations as well as resuming distributions to Unitholders. Finally, the Growth phase explores potential diversification into other asset types that offer attractive and accretive cash yield to generate long-term sustainable risk-adjusted cash flows, returns and distributions for Unitholders. For detailed information on MUST’s economic performance in 2024, please refer to the Financial and Portfolio Highlights on pages 8 to 9 of the Annual Report 2024. Green Financing During the year, the Manager focused on executing MUST’s Recapitalisation Plan. As a result, there was no new financing or refinancing obtained. As at 31 December 2024, MUST’s total green and sustainability-linked loans amounted to US$550.8 million, accounting for 73.9% of the total loans. The increase in proportion to 73.9% from 63.5% is due to the debt repayment of non-green and non-sustainability loans. The green and sustainability-linked loans are pegged to pre-determined ESG targets that are mutually agreed by MUST and the issuing banks. The achievement of targets such as MUST’s GRESB score, reduction of GHG energy and emissions intensity, and reduction in water intensity allows MUST to reduce borrowing costs from lower interest rates. GOVERNANCE FRAMEWORK Corporate Governance MUST is dedicated to creating long-term value for our stakeholders by maintaining high corporate governance standards throughout our organisation, supported by strong leadership and robust risk management. We believe that good governance is crucial for allocating resources effectively to enhance business resilience and ensure sustainable growth. We recognise that sound corporate governance practices are essential for a company's success. Our commitment to upholding the highest standards of corporate governance and risk management in our operations aims to protect stakeholder interests and increase long-term value. MUST has a strict zero-tolerance policy towards fraud, corruption, or unethical behaviour. As part of our corporate governance system, we have put in place robust internal controls to reduce the risk of corruption. We ensure that MUST's corporate governance framework aligns with our Sponsor, which is registered with the Securities and Exchange Commission (SEC). The Manager's compliance team works closely with the Sponsor's legal and compliance teams and external Singapore and U.S. legal counsel to ensure MUST and the Manager operate within their respective regulatory boundaries. As an SGX-ST listed REIT, we comply with relevant industry rules and regulations, including the Code of Corporate Governance 2018 issued by the MAS. Our risk management is supported by various policies and programmes, including the Board Diversity Policy, Investor Relations Policy, Whistle-Blowing Policy, and Manulife Code of Business Conduct and Ethics. All key business actions are discussed with the compliance team to reduce and manage potential compliance issues. The internal audit team, alongside the compliance team, evaluates corporate practices and procedures. The Manager keeps the Board informed on corporate governance issues on a regular basis and adheres to a thorough enterprise risk management strategy. Board Effectiveness The Board and management recognise that good corporate governance fundamentally relies on an effective Board, where members openly engage in constructive discussions and challenge management's assumptions and proposals. Annually, Directors are required to complete a Board Performance Evaluation Questionnaire. Additionally, members of the ARC and NRC must complete their respective committee performance evaluation questionnaires. To ensure effective management of sustainability objectives, the performance evaluation questionnaire includes an assessment of the Board's performance in overseeing the REIT's impact on economic, social, and environmental factors. ANNUAL REPORT 2024 | 95
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