BUILDING RESILIENCE Climate Action International Financial Reporting Standards S2 Climaterelated Disclosure (IFRS S2) & Task Force on ClimateRelated Financial Disclosure (TCFD) Climate-related risks have emerged as critical business considerations, given their far-reaching and potentially substantial impacts on operational performance, financial results, and long-term sustainability. These encompass physical risks from extreme weather events and transition risks arising from policy developments and the shift towards a low-carbon economy, which can materially affect the REIT's assets, supply and value chains, and fundamental business models. Through strategic integration of climate risk management within its sustainability framework, the Manager enhances organisational resilience, capitalises on low-carbon transition opportunities, and supports global climate mitigation initiatives. The Manager’s approach aligns closely with the Sponsor's Climate Action Implementation Plan and the Asset Manager's suite of climate-focused commitments, including the Climate Change Statement, Nature Statement, Water Statement, and Real Estate Climate Disclosure report. This strategic alignment directs the Manager’s climate mitigation and adaptation initiatives, reducing operational impact and vulnerability across the REIT’s asset portfolio. The Sponsor has supported global climate disclosure standards since 2017, beginning with TCFD principles and its first TCFD-aligned report in 2019, while progressively implementing IFRS S2 requirements to strengthen alignment with international best practices. For more information on the Group’s commitment to climate change, please refer to Manulife Climate Action Implementation Plan. Transparency in climate disclosures and climate risk resilience development form central pillars of the Manager’s business strategy, consistent with guidance from IFRS S2 and TCFD. Building on enhancements made since 2024, the Manager will continue improving its sustainability disclosures to reinforce alignment with ISSB standards and global best practices presented. Climate Strategy In 2021, the Manager updated its materiality assessment, identifying 'Climate change mitigation and adaptation' as a new material ESG topic affecting the business. In 2025, the Manager reviewed and confirmed that this issue remains significant for the REIT. ESG considerations are systematically embedded across the Manager’s acquisition processes and portfolio management activities, operating within the framework established by the Asset Manager's suite of climate-focused statements. The due diligence methodology encompasses evaluation of climate-related exposures, energy performance metrics, and tenant engagement programme effectiveness, with comprehensive documentation of ESG risks and strengths completed during final acquisition phases to ensure consistency in sustainability performance throughout MUST's portfolio. A comprehensive real estate decarbonisation roadmap developed by the Asset Manager establishes ambitious emissions reduction targets through 2035. The primary decarbonisation levers include efficiency, electrification and fuel switching, renewables, and procuring responsible offsets once all available actions to reduce on-site emissions have been taken. Complementary initiatives spanning retrofit commissioning, energy management platform deployment, and real-time interval metering implementation help to optimise asset performance while delivering quantifiable progress towards decarbonisation goals across both newly acquired and existing portfolio assets. For more information on the Asset Manager’s climate strategy and how ESG considerations are factored into investment decisions, please refer to Manulife Investment Management’s Sustainability Report and Real Estate Sustainability Report. The Manager’s commitment extends to integrating sustainability principles within financing structures and diversifying green funding mechanisms. As at 31 December 2025, MUST’s green and sustainability-linked loan portfolio totalled to US$422.0 million, representing 75.5% of the total loan facilities. The increase in loan proportion from 73.9% a year ago was due to the debt repayment of non-green and non-sustainability-linked loans. / 13 / MANULIFE US REIT
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