Manulife US REIT - Sustainability Report 2018

Asset Management To maintain and enhance the quality of our assets, we continually monitor their performance and review the need for ongoing capital and operational improvements. This is overseen by the Property Manager’s Engineering and Technical Services team, which reviews our performance and makes recommendations on capital plans. This proactive approach helps to avoid negative surprises, which results in cost savings and maintains a high level of tenant satisfaction. The Property Manager incorporates the evaluation of ESG risks and opportunities into its investment analysis and the ongoing management of its portfolio. It is aided by the Sustainability Checklist. The Property Manager utilises its property management, asset management and portfolio management expertise to maintain high quality services. MUST’s CIO updates the Board quarterly on the performance of the portfolio as well as any acquisition activity. As part of our responsible property investment practices, MUST participates in the GRESB Real Estate Assessment. GRESB is an investor-led initiative that assesses the ESG performance of real estate companies and funds. We are delighted to have increased our score from 76 in 2017 to 85 in 2018, meeting our 2018 target. This score of 85 is higher than our peer average of 80 and puts us 4 th out of 14 in our peer group: ‘Office – United States – Listed’. Our strengths from the 2018 GRESB Assessment included achieving above average energy, water and GHG reductions, reporting energy, water and waste data for 100.0% of our properties, having strong stakeholder engagement, including 80.0% of employees trained on sustainability, and having a strong suite of policies, procedures and reporting in place. Energy, Emissions and Water The United Nations Environment Global Status Report 2018 states that buildings emit 36.0% of global GHG, and account for 36.0% of energy consumption. Increasing eco-efficiency of buildings can have significant environmental benefits. Energy and water use can be costly for properties and therefore reducing their usage can lead to substantial savings. We support our Property Manager in its endeavours to implement numerous initiatives that manage the energy and water use in our assets. The introduction of the Sustainable Building Standards to complement their Sustainable Real Estate policy has been a welcome initiative. All properties under MUST have been assessed against these standards and will continue to be assessed on a half-yearly basis. In 2018, Exchange in Jersey City implemented a number of initiatives that led to the achievement of LEED TM GOLD certification and ENERGY STAR® certification with a score of 83, putting the building in the top 20.0% of buildings for energy conservation in U.S. These initiatives include: • Over 60.0% of the building occupants take an alternative form of transportation to driving alone, including walking, public transit, and carpooling • Reduced indoor water consumption by over 30.0% compared to an average baseline building • Diverted over 50.0% of ongoing waste and 100.0% of durable goods waste away from landfills through recycling and reuse • Diverted over 80.0% of construction waste away from landfills through recycling and reuse • Utilised certified green cleaning products over 75.0% of the time • Completed a Light Emitting Diode (LED) retrofit of common area stairwells, saving an estimated 33,358 kWh annually Achieving LEED TM for Exchange MANULIFE US REIT 65 Exchange, New Jersey