Manulife US REIT-Sustainability Report 2019

Asset Management With the increased focus on environmental protection due to the threat of climate change, MUST is committed to operating sustainably. We have implemented various initiatives and policies to drive a greener future. Increasing the eco-efficiency of buildings also has significant potential environmental benefits and cost-savings that will translate into sustainable income performance for our Unitholders. Energy and water are vital resources for our buildings’ operations. To manage energy and water consumption and the associated costs, we have implemented a comprehensive set of initiatives: • Electrical vehicle charging points at eight of MUST’s properties • Water saving taps at all properties • Use 3 rd party systems to report on energy, water consumption, GHG emissions, and waste production and diversion • Conduct an energy audit every five years • Conduct periodic indoor air quality audits • Implement an environmental management system • Adopt an automatic meter reading system • Obtain green building certification, where appropriate • Follow our Sponsor’s Sustainable Real Estate Policy • Prepare an Environmental Inspection Report • Prepare a Building Status Report To maintain the quality of our sustainable portfolio, the Property Manager’s Engineering and Technical Services team regularly monitors the assets’ performance. This proactive approach helps us assess the need for on-going capital and operational improvements, provides timely recommendations on capital plans, reduces costs and increases tenant satisfaction. Equipped with tools such as the Asset Management Sustainability Checklist, the Property Manager incorporates ESG risks and opportunities evaluation into its investment analysis and the ongoing management of the portfolio. The Property Manager also uses its property management, asset management, and portfolio management expertise to maintain high-quality services. Apart from proactive asset management, we also seek to enhance the value of our properties through Asset Enhancement Initiatives (AEI). In 2018, we launched a US$8.0 million AEI at Figueroa for lobby renovation, café and exterior landscaping, and a US$12.0 million AEI at Exchange for lobby renovation and a new glass wall feature. Both projects are scheduled for completion in 2020 and are expected to help attract and retain tenants. Such asset management aligns with MUST’s goal to continuously improve tenant satisfaction while ensuring our properties meet or exceed the sustainable standards set by the industry. In addition, consistent with U.S. industry practice, MUST’s properties are insured against fire accident, property damage, terrorism, quake, business interruption and public liability, including personal injury. Energy, Water and Emissions Throughout the year, we worked closely with our Property Manager to reduce the environmental impact of our properties and manage expenses from energy and water consumption. Due to numerous property-level resource management initiatives in 2019, MUST recorded the following reductions in its energy and water intensity. Consumption/Emissions 2019 1 2018 2 Energy (‘000kWh) 66,861.3 52,659.8 Water (m 3 ) 212,555.3 128,967.4 GHG (tonnes CO 2 e) 22,055.3 16,952.7 Intensity 2019 1 2018 2 Change (%) Energy 3 (ekWh/sf) 17.1 17.5 -2.0 Water 4 (L/sf) 55.5 56.9 -2.4 GHG 5 (kg CO 2 e/sf) 5.8 5.6 +2.4 Energy In the U.S., there are two widely-recognised green building rating bodies – LEED™ and ENERGY STAR ® . As the most extensively used green building rating system in the world, LEED™ is a globally recognised symbol of sustainability achievement. LEED™ provides a framework to create healthy, highly efficient and cost-effective green buildings. As at 31 December 2019, five of the nine properties in MUST’s portfolio are LEED™ certified. This includes four LEED™Gold certifications and one LEED™ Platinum certification. ENERGY STAR ® is a U.S. Environmental Protection Agency programme that helps businesses save money and protect the environment through energy efficiency. ENERGY STAR ® has become the industry standard to rate a facility’s energy performance, and according to studies by the programme, certified buildings are likely to have lower operating costs, more marketable, contribute fewer GHG emissions, command higher rental rates, and have increased asset 1 2019 data is based on seven properties (Figueroa, Michelson, Peachtree, Plaza, Exchange, Penn and Phipps). 2 2018 data is based on five properties (Figueroa, Michelson, Peachtree, Plaza, Exchange). 3 Energy intensity was calculated by total energy consumption (normalised for weather, occupancy and extraordinary usage in 2019)/total gross floor area. 4 Water intensity was calculated by total water consumption/total gross floor area. Water consumption in Exchange was not included in 2018 data due to inaccurate meter readings. 5 GHG intensity was calculated by total GHG emissions/total gross floor area. SUSTAINABLE PROPERTIES 74 MUST