Annual General Meeting 18 May 2020 1
Important Notice This presentation shall be read in conjunction with Manulife US REIT’s announcements dated 5 February 2020 and 8 May 2020 published on SGXNet. This presentation is for information purposes only and does not constitute or form part of an offer, invitation or solicitation of any offer to purchase or subscribe for any securities of Manulife US REIT in Singapore or any other jurisdiction nor should it or any part of it form the basis of, or be relied upon in connection with, any contract or commitment whatsoever. The value of units in Manulife US REIT (“ Units ”) and the income derived from them may fall as well as rise. The Units are not obligations of, deposits in, or guaranteed by the Manager, DBS Trustee Limited (as trustee of Manulife US REIT) or any of their respective affiliates. The past performance of Manulife US REIT is not necessarily indicative of the future performance of Manulife US REIT. This presentation may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. These forward- looking statements speak only as at the date of this presentation. No assurance can be given that future events will occur, that projections will be achieved, or that assumptions are correct. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from similar developments, shifts in expected levels of office rental revenue, changes in operating expenses, property expenses, governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business. Investors are cautioned not to place undue reliance on these forward-looking statements, which are based on current view of management on future events. Holders of Units (“ Unitholders ”) have no right to request that the Manager redeem or purchase their Units while the Units are listed. It is intended that Unitholders may only deal in their Units through trading on Singapore Exchange Securities Trading Limited (the “ SGX-ST ”) . Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units. 2
Contents 01 About MUST in 2019 02 1Q 2020 Key Highlights 03 COVID-19 Updates & Looking Ahead 3
About MUST in 2019 01 4
FY 2019 Key Milestones JAN MAY JUL AUG MAY MAY MAY Refinanced and AUM: US$1.7 b Governance Index for Trusts Completed acquisition (GIFT) 2019 – 6 th out of 46 unencumbered Market Cap: US$982.8 m of Centerpointe for Figueroa at 3.25% Unit Price: US$0.77 REITs and Business Trusts US$122.0 m OCT DEC SEP DEC DEC SIAS Investors’ Choice Completed IR Magazine Awards Included in FTSE AUM: US$2.1 b Awards 2019 – Runner- Southeast Asia 2019 – acquisition of EPRA Nareit Global Market Cap: US$1.6 b Up for ‘Corporate ‘Best in Country: Capitol for Developed Index Unit Price: US$1.00 Governance’ and Singapore’ and ‘Best US$198.8 m TSR FY 2019: 42.1% ‘Sustainability’ Investor Relations Officer’ 5
Fortified Portfolio of Trophy/Class A Assets – Strength from Diversity 9.6 16.1 5.9 AUM by 10.5 Property (%) 1 16.5 US$2.1 b 9.0 10.1 16.6 5.7 11.9 12.5 8.6 14.9 NPI by Property (%) 2,3 10.4 US$110.8 m 10.2 8.0 AUM: US$2.1 b 7.0 16.5 NLA: 4.7 m sq ft Scan for videos Exchange Capitol Figueroa Michelson Peachtree Plaza Penn Phipps Centerpointe (1) Based on fair values as at 31 Dec 2019 (2) NPI for Centerpointe was extrapolated based on actual results (for the period 10 May 2019 to 31 Dec 2019) to full year FY 2019 (3) NPI for Capitol was extrapolated based on actual results (for the period 29 Oct 2019 to 31 Dec 2019) to full year FY 2019 6
Growing Responsibly From Strength to Strength DPU (US Cents) Occupancy Rate (%) AUM (US$ b) +7.0% YoY +20.5% YoY 96.7 95.9 95.8 2.1 5.96 5.77 5.57 1.7 1.3 FY 2017 FY 2018 FY 2019 FY 2017 FY 2018 FY 2019 FY 2017 FY 2018 FY 2019 ESG – GRESB (Score) NPI (US$ m) WALE (Years) +22.2% YoY 5.9 93 5.8 5.7 85 110.8 76 3 rd 90.7 out of 12 58.4 listed U.S. office REITs FY 2017 FY 2018 FY 2019 FY 2017 FY 2018 FY 2019 FY 2017 FY 2018 FY 2019 7
Delivering Stellar Total Shareholder Return in FY 2019 FY2019 Total Shareholder Return (%) 66.0 52.6 51.5 46.2 43.9 42.1 41.0 36.1 35.0 32.0 31.9 31.5 30.8 29.5 28.9 27.7 27.7 25.9 24.3 20.5 19.2 17.4 17.0 15.6 14.1 13.8 13.4 13.2 12.3 11.1 10.2 9.9 8.9 8.0 7.8 5.7 EAGLEHT ARAUS SBREIT 2.1 MUST KDCREIT MCT SASSR MLT MINT MUST KORE FCT LMRT CERT PREIT OUE C REIT Ascott FEHT FCOT FLT CRCT Sabana AREIT IREIT CCT CDLHT ECWREIT AAREIT SPH REIT KREIT CMT SGREIT ESR Cache PRIME FIRST Suntec MGCCT FHT LREIT BHG -1.1 -2.7 -28.8 Source: Bloomberg 8
02 1Q 2020 Key Highlights 9
1Q 2020 Financial Highlights Debt Maturity Profile (%) • Gearing of 37.7% Received commitment to refinance • Interest coverage of 3.8 times Peachtree loan due Jul • Undrawn committed facilities of 2020 223.7 US$95.5 m 186.2 7.5 1 • 95.1% of fixed-rate loans 143.0 105.0 80.0 71.5 • Reverted to tax structure without Barbados entities 1 , similar to that adopted during IPO 2020 2021 2022 2023 2024 2025 Expiry 9.6% 27.4% 22.8% 12.9% 17.5% 9.8% Profile (1) Please refer to announcement dated 24 Apr 2020 - Restructuring Pursuant to U.S. Tax Regulations Property-level mortgages (US$ m) Trust-level loans without mortgages (US$ m) 10
1Q 2020 Portfolio Highlights Lease Expiry Profile as at 31 Mar 2020 (%) • Increased occupancy to 96.5% from 54.5 54.5 New leases executed 1Q 2020, to be 95.8% QoQ reflected when current tenant vacates • Long WALE of 5.7 years • Portfolio rental escalations of 2.0% p.a. • Executed ~147k sq ft of leases at +8.0% rental reversion with 7.8 years 17.5 17.1 WALE 8.7 8.8 • Minimal 4.0% of portfolio by NLA to 7.9 7.9 6.4 6.1 1.0 1.2 expire in 2020 4.4 4.0 2020 2021 2022 2023 2024 2025 and beyond Gross Rental Income Net Lettable Area 11
6.7 Years WALE by Top 10 Tenants; Majority Govt/Listed/HQ Trade Sector by Gross Rental Income (GRI) Top 10 Tenants by Gross Rental Income (GRI) NLA Legal 22.1% Tenant Sector % of GRI (sq ft) Finance and Insurance 20.1% The William Carter Co. Retail Trade 304,013 6.1 Retail Trade 13.5% Information 6.7% Finance and TCW Group 188,835 4.0 Real Estate 5.7% Insurance Public Administration 5.2% Kilpatrick Townsend Legal 184,653 3.7 Consulting 4.4% The Children’s Place Retail Trade 197,949 3.6 Grant Giving 3.2% Healthcare 2.9% United Nations Foundation Grant Giving 94,988 3.2 Accounting 2.8% 2.7% Public Arts, Entertainment, and Recreation 120,324 3.1 US Treasury Administration Advertising 2.2% Transportation and Warehousing 1.7% Amazon Retail Trade 129,259 3.0 1.7% Architectural and Engineering Finance and Manufacturing 1.5% Hyundai Motor Finance 97,587 3.0 Insurance Administrative and Support Services 1.2% 2.3% Quinn Emanuel Trial Others Legal 126,505 2.9 Lawyers 131,612 2.3 Quest Diagnostics Health Care Total Top 10 Tenants 1,575,725 34.9 Note: Amounts may not sum to 100.0% due to rounding 12
Capitol, Sacramento COVID-19 Updates & 03 Looking Ahead 13
COVID-19 Updates • Businesses disrupted from late March amid U.S. lockdown across all states • U.S. authorised ~US$3.5 trillion of new spending to mitigate impact of global pandemic • All nine MUST offices remain open; buildings are 10% - 20% occupied • U.S. lockdown set to ease; multiple states/counties/cities reopening o Georgia: Allowed to reopen fitness centres, salons, restaurants and selected entertainment venues • Cleaning, hygiene and safety distancing remain top priority across properties • Focus on expense reduction 14
Leading the Way in 2020 and Beyond Resilient portfolio with ~60% 1 of Collected vast majority of April’s rent, Refinancing of Peachtree loan tenants from finance, legal, tech, including all co-working tenants; rental with 5-year tenor at government and healthcare deferment provided to ~2% 1 of tenants advantageous rate Strong commitment and track U.S. economy survival mode; MAS lifted gearing limit to record from Sponsor to ride Fed support packages, ultra-low 50%, increasing debt through crises interest rates, strong dollar headroom for acquisitions (1) By GRI 15
Scan for MUST’s website 16 Manulife US Real Estate Management Pte. Ltd. For enquiries, please contact: Ms Caroline Fong, Head of Investor Relations (Company registration no. 201503253R) Direct: (65) 6801 1066 Email: carol_fong@manulifeusreit.sg 8 Cross Street, #16-03 Manulife Tower, Singapore 048424
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