Material Uncertainty Related to Going Concern (cont’d) In the event the Group is unable to continue as a going concern, it may be unable to discharge its liabilities in the normal course of business and adjustments may have to be made to reflect the situation that assets may need to be realised other than in the normal course of business and at amounts which could differ significantly from the amounts at which they are currently recorded in the statement of financial position. In addition, the Group may have to reclassify non-current assets and liabilities as current assets and liabilities. No such adjustments have been made to these financial statements. Our opinion is not modified in respect of this matter. Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context. We have fulfilled our responsibilities described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying financial statements. Valuation of investment properties and asset held for sale As at 31 December 2025, the aggregate carrying amount of investment properties, including the property classified as an asset held for sale was US$901.4 million which accounted for 94.2% of total assets. The valuation of the investment properties is significant to our audit due to the magnitude and the complexity of the valuation which is highly dependent on a range of estimates made by the external appraisers engaged by the Manager. As disclosed in Note 6 to the financial statements, valuations of investment properties are sensitive to changes in the significant unobservable inputs, particularly those relating to market rents, discount rates and capitalisation rates. This is aggravated by an increase in the level of estimation uncertainty and judgement required arising from the rapid changes in market and economic conditions. Accordingly, we have identified this as a key audit matter. The Manager uses external appraisers to support its determination of the individual fair value of the investment properties. For the property classified as an asset held for sale, the fair value is determined based on management’s estimate of the net consideration expected to be realised from the divestment. Our audit procedures included, amongst others, an assessment of the Group’s process relating to the selection of the external appraisers, the determination of the scope of work of the appraisers, and a review of the valuation reports issued by the external appraisers. We evaluated the objectivity, independence and expertise of the external appraisers and read their terms of engagement to ascertain whether there are matters that might have affected the scope of their work and their objectivity. We involved our internal real estate and valuation specialists to assist us in assessing the appropriateness of the valuation model and the reasonableness of the significant assumptions by reference to historical rates and market data. Our procedures also included checking the reliability of property related data used by the external appraisers, assessing the appropriateness of the valuation techniques and basis for the significant assumptions used, including key valuation adjustments made by the external valuers in response to the changes in market and economic conditions. For the property classified as an asset held for sale, our procedures also included reviewing the purchase and sale agreement signed by the Group and assessing management’s determination of fair value by reference to the agreed sale price, seller credits, and management’s estimate of closing adjustments. We assessed the overall reasonableness of the movements in fair value of the investment properties, asset held for sale, and the associated deferred tax consequences. We also assessed the adequacy of disclosures in Note 6 to the financial statements, which includes disclosures on the management’s plan to dispose certain assets as part of the Recapitalisation Plan and the estimation uncertainty in respect to the valuations and carrying amount of the investment properties and asset held for sale as at 31 December 2025. INDEPENDENT AUDITOR’S REPORT To the unitholders of Manulife US Real Estate Investment Trust / 97 / MANULIFE US REIT
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