DRIVING SUSTAINABLE GROWTH Economic Sustainability MUST remains committed to delivering long-term Unitholder returns through sound and sustainable capital management practices. The Manager has developed a strategic roadmap comprising the Recapitalisation Plan and Growth and Value Up Plan to restore the REIT’s growth. The Recapitalisation Plan's stabilisation phase strengthens MUST's financial foundation, while the Growth and Value Up Plan targets diversification into higher yield sectors, asset optimisation and long-term Unitholder value creation. In December 2025, the Manager successfully secured votes from its Unitholders to support the Growth and Value Up Plan. For more details on MUST’s economic performance, please refer to page 6 in the Annual Report 2025. Green Financing During the year, the Manager focused on achieving financial stabilisation. Consequently, no new financing or refinancing was obtained. As at 31 December 2025, MUST's total green and sustainability-linked loans reached US$422.0 million, representing 75.5% of total loans. 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. Green and sustainability-linked loans are aligned with specific ESG targets, which are mutually agreed upon by the Manager and the issuing banks. Meeting these targets, which include metrics like reductions in greenhouse gas emissions, and improvements in energy and water efficiency, enable MUST to benefit from reduced borrowing costs through lower interest rates. Governance Framework Corporate Governance Operating under the Group’s robust governance framework, the Manager is committed to creating long-term value for stakeholders by upholding high standards of corporate governance. Strong leadership and robust risk management practices enhance business resilience, ensure effective resource allocation and drive sustainable growth. MUST's corporate governance framework is aligned with its Sponsor, which is registered with the Securities and Exchange Commission (SEC). The compliance team collaborates closely with the Sponsor's legal and compliance teams, as well as external legal counsel in Singapore and the U.S., to ensure that both the Manager and MUST operate within their regulatory boundaries. The Manager has a zero-tolerance policy towards fraud, corruption, or unethical behaviour. To address these risks, it has implemented robust internal controls within its corporate governance system. As a REIT listed on the Singapore Exchange Securities Trading Limited (SGX-ST), the Manager adheres to relevant industry rules and regulations, including the Code of Corporate Governance 2018 issued by MAS. MUST's risk management is supported by various policies and programmes, including the Manulife Code of Business Conduct and Ethics, the Investor Relations Policy, and the Whistle-Blowing Policy, all of which are publicly available on its website. Key business decisions are reviewed with the compliance team to manage and mitigate potential compliance issues. The internal audit team, together with the compliance team, evaluates corporate practices and procedures. Regular updates on corporate governance matters are provided to Board members as part of a comprehensive enterprise risk management strategy. Board Effectiveness The Board and management recognise that good corporate governance is underpinned by effective Board operations, supported by active engagement in robust, constructive discussions that appropriately challenge management’s assumptions and proposals. All directors are required to complete annual Board Performance Evaluation Questionnaires. Additionally, the ARC and NRC members are required to complete respective committee performance evaluation questionnaires. Assessment of the Board's oversight of the REIT's economic, social, and environmental factors is included in the Board performance questionnaire to ensure effective management of sustainability objectives. Board Diversity The Board recognises that diversity in Board composition is essential to effective Board performance. MUST’s Board Diversity Policy emphasises that diversity within the Board is essential to delivering strategic objectives and fostering sustainable organisational growth. Board member appointments consider various diversity elements including, but not limited to, gender, age, nationality, educational background, experience, skills, knowledge, and independence. While these diversity factors are considered, all Board appointments are merit-based, ensuring the policy’s intent is upheld and the Board remains well-rounded and effective. According to the policy provisions, the Board has set objectives of appointing at least 33.0% female directors, and targeting 40.0% of female representation amongst Independent Directors by end-2030. As at 31 December 2025, the Manager had 40.0% female representation on the Board and 33.3% female Independent Directors. For information regarding MUST's corporate governance guidelines and practices, please refer to pages 64 - 89 in the Annual Report 2025. / 32 / EXPANDING HORIZONS
RkJQdWJsaXNoZXIy NTM2MDQ5