Expanding Horizons SUSTAINABILITY REPORT 2 0 2 5
SUSTAINABILITY REPORT 2025 03 About this Report 04 Board Statement 05 2025 Highlights 06 CEO Message to Stakeholders 07 Sustainability Approach 07 Sustainability Framework and Materiality Review 08 Sustainability Governance 10 Stakeholder Engagement Contents 12 Building Resilience 13 Climate Action 18 Environmental Stewardship 23 People First 24 Nurturing Talent 27 Safeguarding Health and Well-Being 29 Serving Communities 30 Responsible Supply Chain 31 Driving Sustainable Growth 32 Economic Sustainability 32 Governance Framework 33 Engaging Investors 35 Corporate Policies, Procedures and Frameworks 37 2025 ESG Data Summary 45 SASB Real Estate Sector Disclosure 47 TCFD Recommendations / 02 / EXPANDING HORIZONS
About Manulife US REIT Manulife US Real Estate Investment Trust (MUST or the REIT) is a Singapore listed REIT managed by Manulife US Real Estate Management Pte. Ltd. (the Manager). Its investment strategy is to principally invest, directly or indirectly, in income-producing real estate in the United States (U.S.) and Canada, as well as real estate-related assets. The Manager is a wholly-owned subsidiary of The Manufacturers Life Insurance Company (the Sponsor), which is part of the Manulife Group (the Group). John Hancock Life Insurance Company (U.S.) (JHUSA) is the appointed property manager1 (the Property Manager) for the properties, while Manulife Investment Management Private Market (US) LLC is the appointed asset manager (the Asset Manager) for the properties. Employee-related information provided in this report refers solely to the employees of the Manager located in Singapore and the U.S. In line with broader sustainability efforts to reduce printing, the Sustainability Report will be published as a standalone report and will be available on MUST's corporate website instead of in print (https://www. manulifeusreit.sg/sustainability-overview). Reporting Scope and Period This is the ninth annual Sustainability Report for MUST. It showcases the REIT's sustainability approach, initiatives and performance for the financial period from 1 January to 31 December 2025 (Reporting Period), providing comparative data for the same period in 2023 and 2024. As at 31 December 2025, the REIT's portfolio comprises seven2 freehold office properties that are strategically situated in prime locations in key U.S. cities. MUST adopts the Operational Control Approach, as defined by the Greenhouse Gas (GHG) Protocol Corporate Standard, to determine organisational boundaries. Reporting Standards and Guidelines This report is prepared in accordance with the revised Global Reporting Initiative (GRI) Universal Standards 2021. The GRI Standards have been selected as it is an ABOUT THIS REPORT 1 Since 2021, JHUSA has outsourced its property management services to third-party property managers. Reference to Property Managers in this report refers to the third-party property managers. 2 The divestment of Plaza and Peachtree were completed on 25 February 2025 (U.S. time) and 27 May 2025 (U.S. time) respectively, properties over which the Manager maintained operational control until the point of divestment. In alignment with MUST’s internal management procedures, ESG performance data for these two properties has been excluded for 2025. internationally recognised standard for sustainability reporting and is relevant to the REIT's operations. This report takes into account GRI G4 Construction & Real Estate Sector Supplement (CRESS) guidelines and has incorporated elements from the United Nations Sustainable Development Goals (SDGs). The Manager understands that the GRI Sector Standard for the real estate industry is under phase development and will continue to monitor until it is released for companies’ disclosure. For details on the relevant references, please refer to the GRI Content Index on the Sustainability website (https://www.manulifeusreit.sg/sustainability-overview). This report complies with the Singapore Exchange Securities Trading Limited (SGX-ST) Listing Manual Rules 711A and 711B and adheres to the Task Force for ClimateRelated Financial Disclosures (TCFD) framework. This report is recommended to be read together with the MUST Annual Report 2025 for a more comprehensive view of the Manager's sustainability efforts. In line with the Climate Reporting Timelines announced by Singapore Exchange Regulation (SGX RegCo) and Accounting and Corporate Regulatory Authority (ACRA) in August 2025, the Manager will continue to enhance its climate-related disclosures to incorporate the climate-related requirements set out in the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards issued by the International Sustainability Standards Board (ISSB). Building on the commitment to enhance its disclosures, the Manager has expanded its disclosures and made meaningful progress towards alignment with the ISSB Standards. This year, the Sustainability Report features enhanced disclosures, while remaining gaps are being addressed progressively as part of the ongoing journey towards full compliance with the ISSB Standards. The report is written with reference to the Sustainability Accounting Standards Board (SASB) Standards and includes disclosures recommended in the Real Estate sector standard. The SASB Real Estate Disclosure Index can be found on pages 45 - 46 in this report. Internal Review and External Assurance The Manager maintains robust internal checks over sustainability disclosures, supported by its existing governance structure and internal controls. The Board of / 03 / MANULIFE US REIT
Directors (the Board) and internal auditors conduct riskbased internal reviews of the Sustainability Report as part of the comprehensive audit plan, in accordance with the International Standards for the Professional Practice of Internal Auditing issued by The Institute of Internal Auditors. The Manager has not solicited external independent assurance for this report but will review the need for external assurance in the future. Contact The Manager continues to enhance its sustainability disclosures for the investment community. Stakeholders with questions or feedback may contact the sustainability team at usreitinquiry@manulifeusreit.sg. Further details on recent sustainability initiatives and updates are available on the Manager’s website (https://www.manulifeusreit. sg/sustainability-overview). ABOUT THIS REPORT Board Statement on Sustainability MUST remains steadfast in embedding Environmental, Social, and Governance (ESG) considerations into its strategy to create long-term value for stakeholders. This commitment underpins our mission to create sustainable economic returns while fostering environmental and social well-being in the communities we serve. The Board of Directors plays a pivotal role in steering MUST's sustainability initiatives and outcomes, ensuring ESG matters are systematically incorporated into strategic deliberations, decision-making processes, and management performance evaluation. With a Board representative on the Sustainability Steering Committee (SSC), the Board and senior management, supported by the SSC, regularly review material ESG topics and monitor sustainability progress to ensure MUST meets its established sustainability objectives and targets, while adapting to evolving market expectations and regulatory requirements. 14 April 2026 / 04 / EXPANDING HORIZONS
2025 HIGHLIGHTS Building Resilience 6.9% Reduction in water usage intensity on a like-for-like basis compared to 2024 90.0% Green-certified portfolio by Net Lettable Area (NLA) 40.2% Reduction in Scope 1 and 2 GHG emissions intensity since 2018 base year 29.0% Reduction in energy intensity since 2018 base year 5.0 ESG SCORE; Negligible risk GRESB 5 Star ‘A’ for public disclosure 3.7 ESG RATING vs subsector average of 2.9 13TH out of 42 REITs & Business Trusts Singapore Governance and Transparency Index (SGTI) 2025 (11th in 2024) ESG Accolades People First ZERO CASES Work-related fatality or injury S$20,000 Donation in support of local community 4.4/5.0 Tenant Satisfaction Score 136.5 Corporate social responsibility hours 54.5 Average training hours per employee 4.5/5.0 Employee Engagement Score Driving Sustainable Growth 100.0% Board and employees received anti-corruption training ZERO CASES Non-compliance and corruption ~970 Investors, analysts, media engaged / 05 / MANULIFE US REIT
Dear Stakeholders, 2025 has been a year of resilience and adaptability for Manulife US REIT, as we focused on financial stabilisation. We have prioritised sustainable growth strategies while embedding our ESG principles into every facet of our operations. This commitment ensures long-term value creation not only for our investors but also for the communities we serve. By integrating these ESG principles, we remain agile and responsive to shifting market expectations and regulatory requirements, positioning ourselves to meet both current challenges and future opportunities efficiently. Driving Sustainable Environmental Impact This year, we enhanced the transparency and accountability in our sustainability reporting by aligning our disclosures with the ISSB framework and SGX RegCo’s Roadmap for Mandatory Climate Reporting. These efforts ensure our operational practices meet global best standards and regulatory requirements. We achieved meaningful progress in environmental stewardship, reducing energy intensity and GHG emissions intensity by 29.0% and 40.2% respectively compared to our 2018 baseline. Our portfolio continues to meet the target of 90.0% green-certified portfolio by NLA. We are also proud to have earned a 5 Star rating for the eighth consecutive year in the GRESB Real Estate Assessment, underscoring our commitment to the highest sustainability standards. Additionally, we have taken a significant step by embarking on the inaugural disclosure of our Scope 3 greenhouse gas emissions, recognising that majority of total corporate emissions stems from Scope 3 sources. In the initial phase, we focused on waste generated in operations. This is a stepping stone in our journey towards comprehensive environmental stewardship, as we seek to better assess our indirect impacts and work collaboratively with our business partners and stakeholders to drive decarbonisation, even as we diversify our portfolio. Looking ahead, we seek to assess and mitigate our broader environmental impact. Strengthening Engagement Strategies Our employees are the cornerstone of our organisation, and their growth and well-being remain a top priority. Throughout 2025, we continued to implement initiatives aimed at strengthening employee engagement, supporting professional development, and promoting overall wellness. These included regular engagement sessions, employee surveys, training programmes, wellness activities, and flexible hybrid work arrangements. Reflecting our continued commitment to fostering a supportive and inclusive workplace, our employee engagement score improved to 4.5, up from 4.4 out of 5.0. Championing Community Stewardship Building strong relationships with our local communities and partners is integral to our sustainability journey. In 2025, we reinforced our commitment to fostering community well-being through meaningful activities. These included volunteering with the Waterways Watch Society for a kayak-based waterway cleanup and self-organising a beach cleanup at East Coast Park using litter-picking tools provided by the National Environment Agency (NEA). In total, we recorded 136.5 volunteer hours and contributed S$20,000 to several local beneficiaries, underscoring our dedication to social responsibility and community development. Reinforcing Robust Corporate Governance Strong corporate governance is the foundation of our sustainability efforts. ESG-related performance metrics are integrated into management compensation structures and account for up to 20.0% of the overall performance evaluation. These measures ensure sustainability considerations are embedded in decision‑making at the highest levels. We are proud to have ranked 13th out of 42 REITs and Business Trusts in the SGTI 2025, reflecting our commitment to accountability and transparency. Achieving Clarity and Transparency Looking ahead to 2026 and beyond, the sustainability landscape will continue to evolve rapidly. We remain committed to addressing emerging sustainability challenges whilst maintaining our focus on delivering value to our stakeholders. Through continued collaboration with our investors, tenants, employees, regulators, and business partners, we are confident that our sustained commitment to responsible business practices will create long-term value for all stakeholders and contribute to a more resilient and sustainable future. John Casasante Chief Executive Officer and Chief Investment Officer (CEO & CIO) CEO MESSAGE TO STAKEHOLDERS / 06 / EXPANDING HORIZONS
SUSTAINABILITY APPROACH DRIVING SUSTAINABLE GROWTH Conducting business responsibly to deliver long-term value for stakeholders. This includes the sustainable allocation of capital, robust governance framework and proactive risk management practices. PEOPLE FIRST Ensuring the needs of stakeholders are well-served is key to sustaining the REIT’s business. This includes creating a safe and healthy environment, and safeguarding the well-being and interests of employees, tenants, and local communities. BUILDING RESILIENCE Reducing the environmental impact of the REIT’s properties and supporting the transition to a net zero economy. 8 Employee well-being, health and safety 9 Human rights and non-discrimination 10 Employment practices 11 Customer health and safety 12 Training and development 13 Diversity and inclusion 14 Community development 15 Marketing and labelling 16 Corporate governance 17 Economic performance 18 Economic contribution to society 19 Supply chain management 1 Sustainable building 2 Energy 3 Water management 4 GHG emissions 5 Climate change mitigation and adaptation 6 Waste management 7 Biodiversity Material ESG topics and prioritisation levels Legend: Highly Critical Critical Moderate Approach and Material ESG topics Mission Future-proofing the business to create long-term value for the stakeholders Sustainability remains fundamental to the Manager’s business strategy, with ESG considerations integrated throughout strategic planning processes and operational activities. This comprehensive approach positions the REIT for sustained long-term performance while delivering enduring value to stakeholders. The Manager’s approach to sustainability is anchored by a comprehensive framework that embeds key ESG factors and aligns with the Asset Manager's Real Estate Sustainable Investing Framework. This framework serves as the foundation for the Manager’s investment decisionmaking processes and shapes its asset and property management methodologies. To ensure consistent implementation of sustainability practices, the Manager has established sustainabilityrelated policies addressing its identified material ESG topics, which are being rolled out across MUST and its subsidiaries. This systematic approach reinforces the Manager’s commitment to embedding sustainability considerations at every level of operation. Sustainability Framework and Materiality Review MUST’s Sustainability Framework MUST’s Sustainability Framework outlines its strategy through three key pillars: Building Resilience, People First, and Driving Sustainable Growth. These pillars are underpinned by eight ESG focus areas, creating a comprehensive approach to identifying material ESG topics that align with MUST's sustainability objectives and Enterprise Risk Management (ERM) framework. Each material ESG topic is mapped to its corresponding sustainability pillar to ensure clear accountability and strategic alignment. MUST’s Sustainability Framework has been revised and aligned with the Asset Manager’s Sustainable Investing Framework, which was updated in 2025. Sustainability Pillars Economic Sustainability Governance Framework Engaging Investors Nurturing Talent Safeguarding Health and Well-Being Serving Communities Climate Action Environmental Stewardship / 07 / MANULIFE US REIT
1 2 Approach to Materiality Following the GRI Standards 2021, the Manager has identified material ESG topics that reflect MUST's most significant economic, environmental, social, and governance impacts, including those on human rights. Since its inaugural Sustainability Report in 2017, the Manager has aligned its sustainability efforts with stakeholder expectations by prioritising material ESG topics. SUSTAINABILITY APPROACH In 2021, the Manager refined its sustainability framework and conducted a thorough review of material ESG topics, while taking into account external factors that could impact operations. This process was supported by an independent consultant who applied a four-step materiality determination assessment, enabling the identification of ESG topics most relevant and material to both internal and external stakeholders. The Manager identified 19 material ESG topics relevant to its operations, with 14 of these designated as highly critical. In 2025, these material ESG topics and their priority levels were reviewed and confirmed that they remained pertinent for the Reporting Period. As the Manager prepares to incorporate ISSB Standards into its reporting framework, the financial materiality of ESG topics will also be considered. This qualitative double materiality approach will provide a more comprehensive perspective on both sustainability-related and climate-related risks and opportunities. To support this, the Manager plans to conduct a new materiality assessment to re-evaluate the REIT’s material ESG topics, ranking them based on both impact and financial materiality. Sustainability Governance Effective sustainability performance requires robust governance structures and committed leadership. The Board provides strategic oversight of MUST’s sustainability strategy and performance, ensuring ESG matters are systematically integrated into Board discussions to align with long-term strategic priorities and stakeholder expectations. The Board exercises due diligence in fulfilling its governance responsibilities, continuously building relevant expertise to effectively oversee processes that identify and manage organisational impacts. Research on the core ESG topics that currently concern the industry Define clearly all potential material ESG topics, scope, and types of stakeholders to be covered in the stakeholder engagement survey Conduct materiality determination assessment every three years In view of the announcement of MUST's Recapitalisation Plan on 29 November 2023, the materiality determination assessment will be postponed until MUST's portfolio and operations stabilise. Conduct a peer benchmarking to evaluate the common material ESG topics in the industry Once material ESG topics have been prioritised, it will be internally reviewed, validated, and approved by the SSC and the Board Design the stakeholder engagement survey in accordance with GRI standards and the double materiality principles Distribute the stakeholder engagement surveys to relevant stakeholders to collect their opinions Upon identifying potential material ESG topics, and their positive and negative impacts on business activities, cluster similar topics together. A rating process can be done to assess which topics are most common across MUST and its subsidiaries Analyse the survey data and calculate the weighted materiality scores for each material ESG topic Construct a scatter graph to determine which ESG topics should be considered as material and prioritised based on likelihood and impact Step 1: Identify Step 4: Validate Step 2: Rate Step 3: Prioritise Four-step Materiality Determination 4 3 / 08 / EXPANDING HORIZONS
Strong sustainability foundations are maintained through comprehensive director training programmes, including mandatory SGX training that equips all Board members with essential sustainability knowledge. For further details on director training, please refer to the Corporate Governance section on pages 68 - 69 in the Annual Report 2025. Material ESG topics, performance metrics, and sustainability targets are regularly reviewed through quarterly Audit and Risk Committee (ARC) and Board meetings. Established in 2017, the SSC serves as the operational engine for executing the REIT’s sustainability agenda. Comprising senior leaders from key business units, the Committee drives ESG strategy implementation, oversees goal setting, monitors performance, and ensures that sustainability considerations are embedded across business operations. Key business units, including the Manager’s dedicated sustainability team, support the SSC in staying abreast of sustainability developments and ensuring strategic alignment. In 2025, the sustainability governance was strengthened through Board representation on the SSC. This Board representative provides strategic guidance, champions sustainability initiatives, and ensures effective communication of critical sustainability- and climaterelated risks and opportunities at the executive level. Operating within the Manager’s established corporate policies, procedures and frameworks, the SSC collaborates with the Sponsor, Board, Asset Manager, and key business units to embed sustainability within the Manager's processes, including evaluation of environmental investment implications and regulatory compliance management. Semi-annual reporting by the SSC ensures the CEO, Sponsor, and Board remain informed about MUST's sustainability performance, climate-related metrics, stakeholder expectations, and regulatory requirements. The Manager’s finance department maintains oversight of sustainability and green finance issuances to support the REIT’s sustainable finance objectives. For more information on the Manager’s corporate policies, procedures and frameworks, please refer to pages 35 - 36 in this report. Continuous capability development is supported by training programmes on key and emerging topics, complemented by regular sharing of sustainability-related materials with SSC members and leadership to strengthen their ability to navigate sustainability- and climate-related challenges. For a detailed overview of the Manager’s governance approach employed to address its climate-related risks and opportunities, please refer to pages 13 - 18 in this report. The Manager works closely with the Sponsor and Asset Manager to ensure its sustainability approach aligns with the Sponsor’s broader real estate sustainability commitments. Ongoing communication with the Asset Managers, Property Managers, and Asset Manager’s sustainability team reinforces alignment between MUST’s sustainability initiatives and the Sponsor’s sustainability priorities. Accountability for sustainability outcomes is embedded across the Board, management, and employees, with ESG targets integrated into performance metrics and compensation. ESG performance is directly linked to KPIs and incentive plans, and the Manager’s compensation programme balances competitiveness with short-, medium-, and long-term performance alignment. Annual performance assessments utilise a comprehensive scorecard of quantitative and qualitative KPIs set by the Manager, including ESG metrics such as Investor Engagement, Sustainable Initiatives, and Governance. ESG-related metrics account for up to 20.0% of the overall performance evaluation, reinforcing accountability and alignment with the REIT’s sustainability objectives. This approach underscores the Manager’s commitment to integrating sustainability into compensation frameworks and fostering a culture of responsible business practices. For more information on remuneration matters, please refer to pages 77 – 80 in the Annual Report 2025. Sustainability Governance Structure Sustainability Steering Committee Supported by key management personnel and respective Asset and Property Managers Board of Directors Sponsor Management Team Compliance Finance Investment Investor Relations Sustainability / 09 / MANULIFE US REIT
Addressing Sustainability at Properties Driving sustainability leadership and maintaining consistent industry-standard performance across the REIT’s properties remain core operational priorities. The Manager aims to meet and, where possible, exceed sustainability performance targets. This is supported by the Asset Manager's comprehensive Sustainable Building Standards (SBS), which undergo annual reviews to ensure continuous improvement and alignment with evolving best practices. The SBS establish comprehensive requirements and best practices that guide property teams towards enhanced performance across environmental and climate risk management, water and waste stewardship, nature and biodiversity conservation, and social impact optimisation. Beyond supporting certification processes, the SBS enable performance benchmarking, advance leadership in sustainable property commitments, and provide essential resources for Asset Managers and Property Managers. This comprehensive approach helps the Manager meet stakeholder expectations and industry standards while establishing robust foundations for each property to contribute to MUST's broader sustainability objectives. Ensuring ESG standard compliance across both Asset Manager and Property Manager teams is a fundamental component of the Manager’s approach. Structured meetings foster alignment of understanding and expectations among MUST, the Asset Managers, and Property Managers. The Asset Manager delivers targeted sustainability training programmes and awareness initiatives to Property Managers, strengthening the implementation of the Asset Manager’s Real Estate Sustainable Investing Framework. A comprehensive property management playbook serves as an ongoing reference for performance expectations and operational guidance. Strategic implementation of sustainability initiatives is embedded within the property management agreement framework. The Asset Manager oversees Property Managers to ensure compliance with sustainability policies, timely updates aligned with the SBS, and submission of monthly utility bills where feasible. Annual ESG performance reporting is mandated to support informed decisionmaking. Additionally, the Asset Manager maintains annual scorecards to evaluate adherence to property management agreements, incorporating qualitative assessments of performance against established expectations. Stakeholder Engagement Long-term business success is underpinned by regular stakeholder engagement and clear communication channels. The Manager prioritises identifying stakeholders based on their influence on operations and sustainability performance, as well as their exposure to business outcomes. Through Annual General Meetings (AGMs), the Board maintains direct engagement with stakeholders, incorporating stakeholder feedback into materiality assessments to guide MUST’s long-term sustainability objectives. SUSTAINABILITY APPROACH Stakeholder Groups Investment Community (Investors, analysts, media) Objectives of Engagement Ensuring timely and accurate disclosure of information Key Concerns/ Interests • Transparent and timely updates about MUST’s financial and operational performance • Strategy for sustainable growth • Access to senior management • Investor education on U.S. economy and office sector • ESG performance including global sustainability rankings and indices MUST’s Response • Ensuring timely and transparent disclosures • Hosting regular investor webinars and engagements • Ensuring proactive portfolio and capital management • Formalising sustainability framework to guide MUST’s sustainability strategies across all investments, and asset and property management operations Engagement Methods and Frequency SGX announcements Briefings, investor roadshows, conferences and meetings Website with email alerts, hotline, dedicated investor relations contact Regular LinkedIn updates Live and archived webcasts, briefing transcripts, as well as newsletters Annual and Sustainability Reports AGM/Extraordinary General Meeting (EGM) with minutes published on website / 10 / EXPANDING HORIZONS
Legend for engagement frequency: As required Throughout the year Semi-annual Annual Tenants Employees Regulators and Industry Associations Business Partners (Suppliers, service providers) Local Community Understanding workspace needs and concerns Upskilling, retaining skilled talent and building teamwork Working together to achieve mutual interests Building strong partnerships Supporting community needs • Clean and safe environment • On-site and modernised amenities • Tenant engagement activities • Energy-efficient space • Career development and training opportunities • Diversity and equal opportunities • Remuneration and benefits • Employee welfare • Health and safety • Labour and human rights • Compliance with policies, rules, regulations including environmental, labour standards and SGX-ST listing requirements • Good corporate governance and transparency • Sharing of industry/ sector trends • Health and safety of workers • Human rights • Ethical business practices including anti-money laundering, and anti-corruption • Engaging in meaningful relationships with vulnerable community groups • Financial support • Business impact on the environment, economy, and people • Retrofitting and renovating of properties • Hosting networking events and engagement activities for tenants • Organising activities to educate tenants about environmental sustainability and encouraging them to give back to the community e.g. blood donation, eyeglasses and food drives • Providing regular training and skills upgrading programmes • Ensuring proactive communication with employees to gather feedback and ideas to improve the workplace e.g. employee town halls • Providing fair and equal opportunities for all • Maintaining a safe and healthy working environment • Offering flexible work arrangements • Participating in industry associations such as the REIT Association of Singapore (REITAS) • Participating in consultations with regulators such as SGX and Monetary Authority of Singapore (MAS) • Reviewing disclosures against best practices • Ensuring Manulife Code of Business Conduct and Ethics are in place to affirm MUST’s commitment to ethical conduct and compliance with all applicable laws • Encouraging business partners to adhere to SBS and Manulife Vendor Code of Conduct • Encouraging employee participation in community engagement events by granting two days of volunteer leave annually • Helping vulnerable and elderly communities through corporate donations and employee volunteering • Sourcing corporate gifts from social enterprises • Advocating best practices in sustainability Tenant feedback meetings Tenant appreciation events Tenant satisfaction survey Training programmes Dialogues with senior management Employee grievance handling procedures Performance review Employee engagement surveys SGX announcements, circulars and other regulatory filings Website Panels and associations Annual and Sustainability Reports AGM/EGM Dialogues/feedback SBS Manulife Code of Business Conduct and Ethics Manulife Vendor Code of Conduct Manulife Responsible Contracting Policy Donation drives, Corporate Social Responsibility (CSR) events Social enterprise procurement Collaborations with charities and Non-Governmental Organisation (NGOs) for community development Cash donations / 11 / MANULIFE US REIT
Objectives: Reducing the environmental impact of the REIT’s properties and supporting the transition to a net zero economy Material ESG Topics: 2026 and Long-Term Targets 2025 Performance By 2035: Achieve 33.0% reduction in energy intensity from 2018 base year By 2050: Achieve 49.0% reduction in energy intensity from 2018 base year 29.0% reduction in energy intensity from 2018 base year By 2035: Achieve 38.0% reduction in Scope 1 and 2 GHG emissions intensity from 2018 base year By 2050: Achieve 80.0% reduction in Scope 1 and 2 GHG emissions intensity from 2018 base year 40.2% reduction in Scope 1 and 2 GHG emissions intensity from 2018 base year Maintain ~90.0% green-certified portfolio by NLA By 2030: Achieve 100.0% green-certified portfolio by NLA 90.0% green-certified portfolio by NLA Maintain ‘A’ rating for GRESB public disclosure and 5 Star for Real Estate Assessment ’A’ for GRESB Public Disclosure Assessment 5 Star for GRESB Real Estate Assessment Improve water conservation and waste reduction efforts Water usage intensity decreased by 6.9% (on a likefor-like basis); Waste intensity increased by 2.4% (vs 2024) Climate Action Building the resilience of the assets to climate change by reducing carbon footprint and managing climate-related risks Environmental Stewardship Reducing the environmental impact of the properties through energy efficiency and resource conservation BUILDING RESILIENCE Objectives and Material ESG Topics Approach Targets and Performance Supporting United Nations SDG Sustainable building GHG emissions Waste management Energy Climate change mitigation and adaptation Biodiversity Water management / 12 / EXPANDING HORIZONS
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
Strategy for Decarbonisation of Operations Overview Description Sustainability Issue The built environment contributes approximately 42.0%1 of global GHG emissions, including 27.0% from building operations, making its decarbonisation essential for combating climate change. The Approach Approximately 0.4% of the 2025 revenue (vs 0.1% of 2024 revenue) was allocated towards green building initiatives. This includes Heating, Ventilation, and Air-Conditioning (HVAC) upgrades and window glazing for Exchange and Phipps, and Penn respectively. This supports the Manager’s broader strategy to enhance building operational efficiency. The Manager continues to explore assessing potential energy retrofits and Renewable Energy Credits (RECs). For acquisitions, MUST prioritises energy‑efficient assets with sustainable infrastructure designs and recognised green certifications. The Progress • Reduced energy intensity and Scope 1 and 2 GHG emissions intensity by 29.0% and 40.2% respectively from 2018 base year • Achieved green certifications such as LEED™, ENERGY STAR, WiredScore, SmartScore, Fitwel®, BOMA 360, and UL Solutions for 90.0% of the portfolio by NLA Moving Forward The Manager is committed to reduce Scope 1 and 2 emissions by 38.0% by 2035 and 80.0% by 2050. These targets follow Carbon Risk Real Estate Monitor (CRREM) science-based pathways, consistent with the Paris Climate Goals of capping global warming at 2.0°C, while striving for 1.5°C. BUILDING RESILIENCE 1 GRESB, What is embodied carbon in the real estate and why does it matter?, 29 January 2026. Climate-related Risk Management The Manager’s ERM framework systematically identifies, prioritises, and addresses environmental and climaterelated risks and opportunities affecting its operations. This comprehensive framework targets climate-related risks, with potential for material operational impact, supported by the climate scenario analysis conducted across the portfolio in 2023 to enhance understanding of physical climate-related risks and opportunities. Risk governance operates at the Board level, ensuring robust risk management and internal control systems throughout the REIT. The Manager’s comprehensive risk strategy encompasses risk appetite determination, identification processes, measurement protocols, assessment methodologies, monitoring systems, reporting mechanisms, control procedures, and mitigation strategies. The ARC supports the Board in risk management oversight, including climate risk supervision, through a governance framework centred on the three lines of defence model. Additional details regarding the defence model can be found on pages 54 - 59 in the Annual Report 2025. Environmental and climate-related risks are managed through coordinated involvement of Asset Managers and Property Managers. Asset Managers are responsible for asset-level risk identification and assessment, while Property Managers implement mitigation measures and maintain operational compliance. Annual sustainability surveys facilitate risk reviews, enabling performance tracking, emerging issue identification, and strategic decisionmaking. The SSC provides oversight of environmental and climate-related risks, ensuring that governance structures, accountability frameworks, and risk management practices operate effectively across the portfolio. Environmental and social risk evaluation forms an integral component of the Manager’s acquisition due diligence process, with findings presented to the Manager’s management team for investment approval consideration. Following property onboarding, mitigation strategies are embedded within asset planning processes. Close collaboration between Asset Managers and Property Managers enables environmental performance monitoring and climate risk management, maintaining alignment with portfolio ESG objectives. This integrated methodology establishes clear roles and responsibilities across relevant personnel and functions. Recognising carbon pricing as an emerging climate risk tool, the Manager plans to explore the potential future incorporation of carbon pricing into risk and financial planning processes, ensuring alignment with regulatory developments and industry benchmarks. For more information on the climate-related risk management approach, please refer to Manulife Investment Management’s Real Estate Sustainability Report. / 14 / EXPANDING HORIZONS
1 Represents a non-exhaustive list of the main risks and opportunities currently identified across MUST's real estate portfolio. Risks and opportunities are subject to change over time and are ultimately addressed on a case-by-case basis depending on the individual characteristics of each property. 2 According to International Energy Agency (IEA), the Net Zero Emissions (NZE) by 2050 Scenario is a normative scenario that shows a pathway to the global energy sector to achieve net zero CO2 emissions by 2050, with advanced economies reaching net zero emissions in advance of others. According to IPCC, RCP 2.6 represents low greenhouse gas emissions and stringent mitigations to limit global warming to below 2.0°C by 2100. 3 According to Intergovernmental Panel on Climate Change (IPCC), Representative Concentration Pathway (RCP) 8.5 represents a high greenhouse gas emissions scenario in the absence of policies to combat climate change, leading to continued and sustained growth in atmospheric greenhouse gas concentrations. RCP 6.0 represents the intermediate levels of greenhouse gas emissions, resulting in intermediate levels of warming. Climate-related Risk, Mitigation and Opportunity1 In 2020, a portfolio-wide climate risk study was conducted using a third-party tool that applied both current and forward-looking risk scenarios to assess asset-level climaterelated risk exposure. This comprehensive assessment incorporated resilience measures such as flood risk management protocols, property characteristics, property team resilience management practices, and emergency and business continuity planning, forming key components of the Manager’s climate-related physical risk mitigation strategy. In 2023, the Asset Manager completed a comprehensive climate scenario analysis for its global portfolio, which included MUST’s properties. This forward-looking assessment, performed by third-party climate risk providers, aimed to deepen understanding of potential operational impacts arising from identified physical risks. Consistent with the Asset Manager's Real Estate Climate-related Financial Disclosure report, the analysis applied sciencebased methodologies and historical data whilst considering IEA NZE2, RCP 2.62, RCP 6.03, and RCP 8.53 climate scenarios projected across 2030 to 2100 timeframes. The Manager adopts the Asset Manager’s temporal horizon definitions for climate-related issues: • Short-term: 1 – 5 years • Medium-term: 5 – 10 years • Long-term: 10+ years The Manager further streamlined the physical risks that are relevant to MUST under two scenarios: • Scenario 1: Failure to act (>4.0°C) (RCP 6.0 and RCP 8.5) Participants believe that physical climate risks will increase costs and reduce value; supply chain disruptions and market variability from changing climate conditions will also affect the business. • Scenario 2: Paris-aligned (<2.0°C) (IEA NZE and RCP 2.6) Participants expect sizeable investments to overcome transition risks; despite these costs, participants identified significant opportunities in being an early mover in transitioning to net zero. For each climate impact, a climate hazard score was determined. The study found that none of the assets in MUST's portfolio are located in 100-year flood zones currently, and in both scenarios between 2030 and 2100. Physical Risk Type Primary Risk Driver Potential Impacts Timeline Potential Mitigation Measures Acute Risks Tropical Cyclone More frequent and severe tropical cyclones • Increase in asset structural damage • Increase in insurance premiums and deductibles • Increase in operation (e.g. business interruptions) and repair costs (e.g. structural repairs) Short- to long- term • Regular site assessments for building condition River Flood Property damage in areas with a high risk of flooding • Increase in asset structural damage • Increase in insurance premiums and deductibles • Potential for reduced availability of insurance for assets in river flood-prone areas • Increase in operation (e.g. business interruptions) and repair costs (e.g. structural repairs) Short- to long- term • Properties are expected to have regular site assessments completed by an insurer, and/or building condition assessments, and where applicable, to adopt recommended protection measures Storm Surge More frequent and extreme storms • Increase in asset structural damage • Increase in insurance premiums and deductibles • Increase in operation (e.g. business interruptions) and repair costs (e.g. structural repairs) Short- to long- term • Regular site assessments for building condition • Emergency management planning • Minimise downtime by using on-site backup power generators / 15 / MANULIFE US REIT
BUILDING RESILIENCE Physical Risk Type Primary Risk Driver Potential Impacts Timeline Potential Mitigation Measures Chronic Risks Heat Stress Extreme heat conditions • Reduce employee and tenant productivity (e.g. heat illness, worsened health risks from chronic conditions) • Increase in operation costs (e.g. increase in cooling demand leading to higher electricity costs) Short- to long- term • Identify opportunities to improve cooling efficiency and/ or capital upgrades, building commissioning, and operating procedures Precipitation Stress More evaporation and transpiration due to warmer temperatures result in more moisture in the air • Increase in asset structural damage (e.g. mould growth) • Increase in insurance premiums • Increase in operation and repair costs Short- to long- term • Regular checks to ensure that roof structures are able to withstand heavy rain and snow loads • Emergency management planning Subsidence Prolonged water exposure due to flooding and/or sea level rise • Increase in asset structural damage • Increase in insurance premiums and deductibles • Increase in operation (e.g. business interruptions) and repair costs (e.g. structural repairs) Short- to long- term • Regular site assessments for signs of subsidence • Ensure proper grading around buildings’ foundation Water scarcity Changes in precipitation patterns such as longer dry spells, more intense but less frequent rainfalls • Increase in operation costs (e.g. higher water utility bills, increased costs for waterefficient retrofits) Short- to long- term • Maximise operational efficiencies while minimising consumption through practices such as water audits and installing low-flow appliances and faucets, and minimising landscaping water requirements, where applicable Fire Weather Stress Atmospheric conditions (e.g. temperature, wind, precipitation, and relative humidity) may worsen the effects of wildfires • Increase in asset structural damage • Reduced air quality, affecting occupants’ health • Increase in operation costs (e.g. business interruptions) Short- to long- term • Fire-resistant building materials • On-site emergency water supply • High-efficiency air filters to protect indoor air quality Drought Stress Long periods of no to low rainfall • Increase in operation costs (e.g. increased costs due to reduced water supply) Short- to long- term • Maximise operational efficiencies while minimising consumption through practices such as water audits and installing low-flow appliances and faucets, and minimising landscaping water requirements, where applicable / 16 / EXPANDING HORIZONS
Physical Risk Type Primary Risk Driver Potential Impacts Timeline Potential Mitigation Measures Chronic Risks Cold Stress Extreme cold weather • Reduce employee and tenant productivity (e.g. cold-related health illnesses) • Increase in operation costs (e.g. business interruptions) Short- to long- term • Regular risk assessments focused on cold weather vulnerabilities • On-site backup power generators • Emergency management planning Sea Level Rise Melting ice and the expansion of seawater as it warms • Increase in asset structural damage • Increase in insurance premiums and deductibles • Increase in operations (e.g. business interruption) and repair costs (e.g. saltwater intrusion) • Increase in the risk of failed development approvals and “stranded” assets in vulnerable areas Longterm • Invest in preventative infrastructure and consider underwriting, where applicable • Regular site inspections completed by the insurer, and/or building condition assessment • Where applicable, to implement recommendations for protection measures The same portfolio-wide climate risk study conducted in 2020 evaluated the Manager’s exposure to climate-related transition risks using a third-party tool. This assessment identified potential risks and associated business implications arising from future climate impacts while evaluating current and potential preparedness strategies for climate risk management. Study findings were presented to senior leadership and subsequently integrated into internal process development. Regular assessments of the portfolio’s climate-related risk exposure enable the identification of future risks through projections based on IPCC and IEA NZE scenarios. Beyond risk identification, these studies also highlight climaterelated opportunities, supporting strategic planning to enhance property resilience. Looking ahead, the Manager is exploring scenario-based financial approaches to assess both climate-related risks and opportunities, ensuring robust integration into longterm planning and decision-making. Transition Risk Description Timeline Mitigation and Opportunity Regulation Increasing climate-related regulations, including jurisdictional carbon pricing, regional efficiency, or emissions standards, and increasing disclosure requirements. Regulation changes could lead to increasing operation and compliance costs. Short- to long-term Continuous monitoring of emerging regulations and integration of building performance and efficiency assessments into due diligence help maintain readiness for carbon pricing and minimum efficiency requirements. Market Shift in capital away from high-emitting products and services, potentially affecting tenant demand, asset value, and fundraising. Short- to long-term Improving portfolio efficiency could create new avenues for financing and increase investor and tenant demand. Properties continue to be certified under leading standards such as LEED™, ENERGY STAR, WiredScore, SmartScore, Fitwel®, BOMA 360, and UL Solutions, alongside implementation of energy and emissions reduction programmes and collaboration with tenants and clients on shared climate objectives. / 17 / MANULIFE US REIT
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