NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2025 6 INVESTMENT PROPERTIES (CONT’D) Asset held for sale Description of property Tenure Location Existing use Fair value 2025 2024 US$’000 US$’000 Group Los Angeles Figueroa Freehold 865 South Figueroa Street, Los Angeles, California 90017 Commercial 85,703 − New Jersey Plaza Freehold 500 and 600 Plaza Drive, Secaucus, Hudson County, New Jersey 07094 Commercial − 43,700 85,703 43,700 As set out in Note 2.3, the Group is required to procure, the sale of the Group’s properties prioritised by specified tranches, and to achieve minimum cumulative net sale proceeds targets by specified dates (i.e., the 2024 Net Proceeds Target and the Net Proceeds Target) under the terms and conditions of the Recapitalisation Plan and Master Restructuring Agreement. At the point of implementation of the Recapitalisation Plan, the minimum cumulative net sale proceeds was to be made up from the sale of up to four of the following assets, being Centerpointe, Diablo, Figueroa and Penn (collectively, the “Tranche 1 Assets”) and Capitol, Exchange, Peachtree and Plaza (collectively, the “Tranche 2 Assets”), of which not more than two may be Tranche 2 Assets. Under the Master Restructuring Agreement, the sale of Michelson and/or Phipps is subject to the necessary consents under each of the respective facility agreements. In relation to the sale of Peachtree, the third Tranche 2 Asset which was sold, the requisite consent of lenders was obtained for the disposal of up to three Tranche 2 Assets. As the 2024 Net Proceeds Target had not been achieved, the Group was required to pay a fee of US$2.3 million, based on the higher of (A) a flat fee of 1% on the shortfall amount between the 2024 Net Proceeds Target and the cumulative net sale proceeds actually received, and (B) an additional interest margin payment, at a rate of 0.75% per annum on the outstanding amounts under the existing facilities as at 31 December 2024 for a period of 180 days. For details, please refer to the key terms of the Recapitalisation Plan in paragraph 3.1 of the circular dated 29 November 2023, the announcement on “Update on Restructuring of the Existing Facilities” dated 13 December 2023, the announcement on “Amendments to the Terms of Master Restructuring Agreement” dated 23 May 2025, as well as the announcement on “Updates in Relation to the MRA Concessions” dated 24 December 2025. Details on the Group’s plans, progress and expectations in meeting the Net Proceeds Target, and the implications of not meeting the Net Proceeds Target are disclosed in Note 2.3. / 123 / MANULIFE US REIT
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