Manulife US REIT-Sustainability Report 2020

The Property Manager’s Engineering and Technical Services team regularly monitors consumption performance for reporting and quality assurance. This helps us assess opportunities for capital and operational improvements, provides timely recommendations on capital plans, reduces costs and increases tenant satisfaction. Green Champions are nominated at all MUST’s properties to coordinate sustainability efforts and report each property’s performance on the Sustainable Building Standards. In 2020, our Sponsor held its annual Real Estate Sustainability Awards for all properties under Manulife Real Estate including MUST’s assets. We are delighted that the Green Champion in Figueroa was awarded Green Champion Leader 2020. The key initiatives organised at Figueroa included installing LED lighting in common areas; increasing waste diversion through the introduction of a new recycling programme that includes paper, aluminium cans, glass and food waste; and replacing transportation shuttles with 100.0% electric shuttles - one of the first in Downtown Los Angeles. These initiatives resulted in approximately 30.0% reduction in electrical use as well as a reduction in the building's carbon footprint. Aside from proactive management initiatives, we also seek to enhance the value of our properties and improve tenant satisfaction 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 were completed in 2020 and are expected to help attract and retain tenants by keeping our buildings relevant. Compliant with U.S. industry practice, MUST’s properties are insured against fire accidents, property damages, terrorisms, quakes, business interruptions and public liabilities, including personal injuries. Working with Our Tenants Tenants play an active role in our efforts to maximise portfolio efficiency as they have direct control of energy and water usage in our buildings. As at 31 December 2020, three out of nine properties in MUST’s portfolio (Figueroa, Peachtree and Phipps) are currently operating on triple net leases. This provides tenants with incentives to identify and improve on inefficient practices, aligning their interests to MUST’s overall environmental goals. Conducted events for tenants and staff on sustainability awareness in buildings Implemented native landscaping to provide habitat for wildlife and reduce the environmental impacts associated with lawn care Made capital upgrades, piloted technologies, adjusted operating practices to reduce energy usage, the main driver of GHG emission at our properties Others Commitment to Green Buildings Certifications Properties LEED TM Platinum Capitol LEED TM Gold Michelson, Exchange, Penn, Phipps Energy Star ® Figueroa, Michelson, Peachtree, Plaza, Exchange, Penn, Phipps, Capitol Our efforts to reduce energy, water and other resources across our properties are widely-recognised by green building rating bodies. Currently, 86.5% of MUST's portfolio by GFA is green-certified by either LEED™ and/or 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. 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 has become the industry standard to rate a facility’s energy performance. According to studies by the programme, certified buildings are likely to have lower operating costs, are more marketable, contribute fewer GHG emissions, command higher rental rates, and have increased asset value. To be eligible for certification, properties are required to be among the top 25 th percentile of similar properties for energy efficiency. Eight of nine properties in MUST’s portfolio are ENERGY STAR ® certified. With air quality included in the scoring of these rating systems, we believe that our certified buildings will gain a competitive advantage against similar buildings as tenants prioritise air quality and ventilation to reduce COVID-19 transmission risks. To emphasise our commitment to green buildings, we have set a new long-term target to increase green building certifications with the aim towards achieving 100.0% by 2030. 77 ANNUAL REPORT 2020