Key Financial Indicators As at 31 December 2025 As at 31 December 2024 Gross borrowings (US$ m) 559.0 745.0 Aggregate leverage1(%) 58.4 60.8 Weighted average cost of debt2 (%) 4.58 4.53 Weighted average debt maturity (years) 2.3 2.9 Interest coverage ratio3 (times) 1.7 1.7 Unencumbered properties as % of total portfolio (%) 100.0 100.0 Finance expenses were lower by 28.0% mainly due to loan repayments using divestment proceeds and existing cash across FY2024 and FY2025, with total debt repayment at approximately US$316.7 million since October 2024. The absence of the one-off fee of US$2.3 million incurred in December 2024 in relation to the MRA further contributed to the year-on-year improvement. Manager's base fee decreased by 33.2% in line with the decrease in income available for distribution, while other trust expenses for FY2025 decreased 21.1% mainly from tax and legal-related expenses in addition to miscellaneous expenses. The Group recorded a net fair value loss on derivatives of US$11.7 million as a result of the movement in fair values of the interest rate swaps entered into to hedge against interest rate exposures. Net fair value loss of US$83.5 million was mainly due to a net decrease in appraised fair value of same-store properties after taking into consideration the Capex and leasing costs during the financial year, fair value loss recognised to reflect Figueroa's carrying amount at the estimated net consideration as well as the divestments of Plaza and Peachtree in 1H 2025. The loss on disposal of investment property arose from the divestments of Plaza and Peachtree as a result of the transaction costs incurred. Tax expense for FY2025 was US$4.1 million, mainly comprising deferred tax expense arising from the fair value gain and tax depreciation for Phipps, as well as withholding tax expense incurred in relation to the halting of distributions. Due to the effects of the above, MUST recorded a net loss of US$87.7 million, compared to the net loss of US$178.0 million in FY2024. Income Available For Distribution After adjusting for net fair value changes and other distribution adjustments, income available for distribution to Unitholders for FY2025 was US$25.5 million, 33.2% lower than FY2024. Pursuant to the Recapitalisation Plan and the entry into the Master Restructuring Agreement, Manulife US REIT has halted distributions to Unitholders since 2023. Further to the granting of the MRA Concessions, the Lenders have required Manulife US REIT to keep half-yearly distributions to Unitholders suspended until the later of the achievement of the Reinstatement Conditions and the period during which the Bank ICR relaxation remains in effect. Portfolio And Net Asset Value (NAV) The Manager announced the proposed divestment of Figueroa on 30 March 2026, and the property was reclassified to held for sale at the estimated net sale consideration as at 31 December 2025. Excluding Plaza and Peachtree which were divested in 2025, as well as Figueroa which was reclassified to held for sale, the valuation of the same-store properties held steady at US$815.7 million from US$811.9 million as at 31 December 2024. This was mainly due to a decrease for Exchange as a result of the lack of new leasing activity and limited comparable transactions, offset by an increase for Michelson and Phipps, where strong leasing activity, favourable economics of executed leases and proposals led to lower discount and termination capitalisation rates, higher market growth and lower static vacancy rate assumptions. The NAV and NAV per Unit decreased by 20.4% from US$430.6 million and US$0.23 as at 1 January 2025 to US$343.0 million and US$0.19 as at 31 December 2025, mainly as a result of the net fair value loss on investment properties after factoring in Capex incurred during the year. 1 Based on gross borrowings as a percentage of total assets. 2 Excluding the Sponsor-Lender loan exit premium. Including the Sponsor-Lender loan exit premium, the weighted average cost of debt would be 5.25% for FY2025 (FY2024: 5.03%). 3 Computed by dividing the trailing 12-month earnings before interest, tax, depreciation and amortisation (excluding effects of any fair value changes of derivatives and investment properties, and foreign exchange translation), by the trailing 12 months' interest expense, borrowingrelated fees and distributions on hybrid securities as set out in the Code on Collective Investment Schemes (CIS Code) issued by MAS. / 21 / MANULIFE US REIT
RkJQdWJsaXNoZXIy NTM2MDQ5