Manulife US REIT-Sustainability Report 2019

As a recognised sustainability leader in the REIT industry, we have analysed our business operations and identified key ESG risks, and opportunities. We aim to create long-term value for our stakeholders by minimising negative impacts of our operations while leveraging on opportunities to maximise environmental and societal benefits. In 2019, most of our properties received or maintained one LEED™ or ENERGY STAR ® certification, a strong testament of our commitment to reduce the use of energy, water and other resources across the operation of our properties. Sustainability Structure Collaborating with our Sponsor We remain aligned to the goals of our Sponsor, Manulife Group, which has contributed to a number of sustainability commitments: • Signatory to the United Nations-supported Principles for Responsible Investment 1 • Signatory to the Equator Principles and a member of the United Nations Environmental Programme Finance Initiative • Published sustainability reports for several years (e.g. Manulife Financial Corporation Sustainability Report and Public Accountability Statement) • Participated in the Carbon Disclosure Project • Listed in the Dow Jones Sustainability Index • 1 st life insurance company in the world to issue a Green Bond 2 in 2017 Working with our Property Manager Our Property Manager seeks to drive leadership in sustainable real estatepractices across its global organisation and to provide healthy and efficient workplaces for tenants while enhancing long-term returns. To achieve its vision, our Property Manager has monitored the energy and water consumption and GHG emissions for the properties since 2005. Furthermore, it has participated in the annual GRESB Real Estate Assessment for all its funds since 2016 and achieved GRESB 5 Stars ranking which is awarded to the top 20.0% of selected entities, including MUST. To build a consistent sustainability experience for tenants, employees and visitors, our Property Manager launched its internal Sustainable Building Standards programme in 2017. The programme outlines operational standards in 13 sustainability focus areas. The programme enables target setting and benchmarking across a global portfolio for these 13 standards: 1. Energy management and assessments 2. Energy measurement and analysis 3. Water management and assessments 4. Waste management programme 5. Alternative transportation 6. Indoor environmental quality 7. Health and wellness programming 8. Procurement programme and tracking 9. Tenant engagement 10. Community engagement 11. Employee engagement 12. Certifications and sustainability brand 13. Sustainability management Properties implement actions to achieve one of five levels for each of the standards in order to adjust for differing applications at buildings of varying use. For example, tenant engagement level one involves communicating with tenants on sustainability and providing tips to reduce their environmental footprint. Higher levels of tenant engagement (levels two through four) involve holding events and campaigns, such as e-waste drives at the property. Achieving level five requires forming a tenant- landlord green team to work collaboratively to implement initiatives at the property. These 13 standards are aligned to the commitments in the Sustainable Real Estate Policy, as well as with industry best practices, including GRESB, LEED TM and BOMA BEST ® . The programme is implemented at all Manulife’s properties including those in MUST’s portfolio. In 2019, the Property Manager set a target for all office properties to achieve an average of level three across all 13 standards. Sustainability Steering Committee (SSC) MUST’s SSC was established in 2017 to drive sustainability strategies and action plans, set targets, oversee monitoring processes and review sustainability performance at the REIT’s level. It is led by CSO, Caroline Fong, and includes representatives from Finance, Compliance, Property Manager, Human Resource and IR departments. The organisation chart below describes the sustainability governance structure within the organisation: 1 Manulife Investment Management which is part of Manulife Group, is a PRI signatory. 2 Green Bond is a way for issuers to raise money specifically for environmentally friendly projects. Board of Directors Chief Executive Officer Chief Sustainability Officer Sponsor Finance Compliance Property Manager Human Resource Investor Relations SUSTAINABILTY APPROACH 68 MUST