Manulife US REIT - Sustainability Report 2018

D e a r S t a k e h o l d e r s We are delighted to present Manulife US REIT’s 2 nd Sustainability Report charting key achievements towards its goal of purposeful sustainability and reaffirming its Environmental, Social and Governance (ESG) programme for 2019 and beyond. Whilst our duty remains, first and foremost, to serve the interests of MUST’s investors we are conscious of making a positive and purposeful contribution from all aspects of our work. MUST not only aims to provide Unitholders with sustainable distributions but also to imbue a spirit of purposeful prosperity. Fundamental to this approach in the words of the great statesman and leader, Sir Winston Churchill, “We make a living by what we get, but we make a life by what we give” . Our sustainability mission is to create value for stakeholders through continuous sustainability efforts based on the principle that ‘A life is worth living through giving’. To achieve our mission, we aim to make a difference in four main areas by investing in: (1) sustainable properties and respect for the environment, (2) stakeholder engagement, (3) human capital and (4) ethical corporate behaviour. Over the past year we have collaborated closely with Manulife’s property and Corporate Social Responsibility (CSR) teams to develop and enhance our sustainability approach. Sustainable Properties It is generally known that top-quality properties and services attract and retain high-calibre tenants. As a result, REITs that own such assets are able to deliver more sustainable returns to unitholders. MUST’s Trophy and Class A office properties, which enjoyed a 96.7% occupancy rate as at 31 December 2018 give us confidence that over the medium to long-term such assets will produce and enhance returns for our Unitholders. In today’s competitive business environment, office properties that make the most of eco-efficiency, and that offer innovative and cost-effective space are much sought after. We aim to meet this demand through our sustainability programmes which in turn improves the financial returns of MUST. We work with our Property Manager to operate and invest in our properties in a sustainable way. As a result, all MUST’s properties demonstrate strong sustainability performance as evidenced by the fact that all have Energy Star, LEED TM Gold certifications or both. We are pleased to announce that we have achieved LEED™ Gold for Exchange in 2018 and that, including the two new properties acquired in 2018, four out of our seven properties are LEED TM Gold certified. We are targeting to obtain LEED™ Gold for the remaining properties over the next few years. Our Property Manager recently rolled out a new Sustainable Buildings Standards programme to improve sustainability for all properties. This aligns with JHUSA’s Sustainability Real Estate Policy as well as the industry best practices such as Global Real Estate Sustainability Benchmark (GRESB), Leadership in Energy and Environmental Design (LEED) and Building Owners and Managers Association (BOMA) BEST ® . In 2018, our properties achieved Greenhouse Gas (GHG) emission reductions and MUST received 5 Star in the 2018 GRESB annual benchmark assessment. GRESB 5 Star is the highest rating and is recognised for being an industry leader. Each year, only 20.0% of participating entities are awarded 5 Star rating. Stakeholder Engagement We are very aware that REIT investors have numerous investment options and key criteria will be to ensure the stability and longevity of their distributions. Proactive stakeholder engagement is important to obtain valuable feedback. To that end, in 2018 we commenced our specially tailored 3-Day U.S. Thought Leadership Programme at which the Manulife’s Global Chief Economist from the U.S. presented on key issues such as the U.S.-China trade wars and the direction of interest rates to our stakeholders. We also engaged the investment community through platforms such as live and archived audio webcasts for our financial and acquisition briefings. More details can be found on page 49 of MUST’s Annual Report 2018. Sustainability Report 2018 58 LETTER TO STAKEHOLDERS