Manulife US REIT · SGX:BTOU

Manulife US REIT — Investor Presentation (September 2018)

23 slides from Manulife US REIT's investor presentation, Sep 24, 2018

  1. Slide 1: Manulife US REIT Day 2018

    Manulife US REIT Day 2018 24 September 2018

  2. Slide 2: Important Notice

    Important Notice This presentation is for information purposes only and does not constitute or form part of an offer, invitation or solicitation of any offer to purchase or subscribe for any securities of Manulife US REIT in Singapore or any other jurisdiction nor should it or any part of it form th

  3. Slide 3: Contents

    Contents 1 Introduction and Overview 2 Financial and Portfolio Highlights 3 Looking Forward 3

  4. Slide 4: Introduction and Overview

    Peachtree,Jersey Exchange, Atlanta,City, Georgia New Jersey Introduction and Overview

  5. Slide 5: Reputable Sponsor with Proven Track Record in Property Management

    Reputable Sponsor with Proven Track Record in Property Management Vertically-Integrated Real Estate Platform: Global Real Estate AUM of US$17.7b Vancouver Sponsor Calgary Kitchener/Waterloo Edmonton Toronto Canada Ottawa US$7.0B Montreal AUM AUM Halifax 73% of Real Estate in Office US$849B U.S. Asia

  6. Slide 6: MUST's Key Milestones since IPO

    MUST’s Key Milestones since IPO 20 May 2016 FY 2016 1H 2017 FY 2017 1H 2018 DPU exceeded DPU exceeded Restated DPU exceeded Adjusted DPU increased Listed on SGX forecast by 4.8% projection by 8.0% projection by 1.8% by 2.4% YoY AUM US$777.5m AUM US$1.7b NLA 1.7m sq ft NLA 3.7m sq ft 2016 Feb Jun 201

  7. Slide 7: Unit Price Performance Since 2018

    Unit Price Performance Since 2018 Total Shareholder Return of 21.8% since IPO till 21 Sep 2018 % 2 Feb: Rate hike fears 6 Mar: US-China 21 Mar: Fed rate hike 22 May: US 30 May: 18 Jun: Fresh fear of 10 Sep: Threats of further (Dow Jones fell 2.5%, Trade War fears imposes anti- Renewed US-China trade

  8. Slide 8: Distribution Yield of MUST vs. Other Investments

    Distribution Yield of MUST vs. Other Investments 8% 7.0% 7% 6.0% MUST Distribution Yield is 6% 390 bps above 10-year US Government Bond Yield 5% 4.1% 4% 3.1% 3% 2.6% 2% 1.9% 1% 0.2% 0% MUST FTSE REIT 2 STI Index 2 10-year US 10-year SG 12 Months Savings Distribution 1 Dividend Yield Dividend Yield G

  9. Slide 9: Financial and Portfolio Highlights

    Peachtree, Atlanta, Georgia Financial and Portfolio Highlights

  10. Slide 10: 2Q 2018 Highlights

    2Q 2018 Highlights Adjusted DPU1 Net Property Income Valuation2 1.53 US cents US$20.4 million +1.4% Increased 5.5% YoY Increased 59.3% YoY Since 31 Dec 2017 Rental Rental WALE Occupancy3 Reversion4 Escalation5 6.3 years 96.0% +7.2% 2.1% 1H 2018 Entire Portfolio (1) Adjusted DPU was calculated based

  11. Slide 11: Proactive Capital Management

    Proactive Capital Management As at 30 Jun 2018 Well-spread Debt Maturity Profile5 US$ m Gross Borrowings US$662.4 million 250 216.5 Gearing Ratio 37.3%1 200 95.5 Penn 165.1 150 125.1 108.5 105.0 Percentage of Fixed Debt 100%2 Exchange Figueroa Phipps 100 67.3 121.0 Peachtree Michelson Weighted Avera

  12. Slide 12: Trophy and Class A Assets Across the U.S.

    Trophy and Class A Assets Across the U.S. Exchange, Figueroa, Jersey City Los Angeles Plaza, Secaucus Peachtree, Atlanta Penn, Michelson, Washington, D.C. Irvine Phipps, Atlanta Click to watch videos! Figueroa Michelson Peachtree Plaza Exchange Penn Phipps Portfolio NLA (sq ft) 701,977 532,663 557,5

  13. Slide 13: Located in Cities with Strong Growth Factors and Live, Work, Play Environment

    Located in Cities with Strong Growth Factors and Peachtree, Atlanta, Georgia Live, Work, Play Environment Downtown Los Angeles Irvine Atlanta • Surrounded by entertainment • Considered the “CBD” of Orange • International Gateway - venues such as Staples Center, County Headquarters for 15 Fortune 500

  14. Slide 14: Located in Cities with Strong Growth Factors and Live, Work, Play Environment

    Located in Cities with Strong Growth Factors and Peachtree, Atlanta, Georgia Live, Work, Play Environment Secaucus Jersey City Washington, D.C. • Nation’s capital, government hub, • Affordable office and residential • Outstanding location across the heart of CBD alternative to Manhattan attracts Hud

  15. Slide 15: Quality, Diversified Tenant Base and Long WALE

    Quality, Diversified Tenant Base and Long WALE Gross Rental Income Breakdown by Trade Sector Long WALE of 6.3 Years1 Manufacturing, 1.7% Accommodation and Food Services, 0.9% Architectural and Other, 2.1% Engineering, 1.8% 60.4 Transportation and 58.0 Warehousing, 2.1% Legal, 21.7% Accounting, 2.2%

  16. Slide 16: Limited Supply in Our Cities

    Limited Supply in Our Cities Properties Under Class A Inventory Manulife US REIT1 Construction Market to be delivered Gross Asking Gross Asking Vacancy Vacancy from 2018 – 2020 Rent per sq ft Properties Rent (%) (%) (‘000 sq ft) (US$) (US$) Downtown Los 0 13.5 42.80 Figueroa 7.0 39.60 Angeles Irvine

  17. Slide 17: Looking Forward

    Department of Commerce : i = sia aed — Monument =< National Mall pe ae Ae White House DAR - Constitution Hall 1750 ase ai se oa : E : E 4 3 7. Departiment of Treasury pe Federal Deposit Insurance Corporation

  18. Slide 18: Looking Forward

    Looking Forward GDP Growth Rate at 4.1%, with 616,000 New Jobs Created in 2Q 20181 • Moderate growth given rising rate environment • Opportunistic acquisitions in markets with high occupancies, long WALE and Live, Work, Play environment Inorganic Growth • Rate hikes mitigated by 100%2 fixed loans •

  19. Slide 19: Hudson River

    Hudson River For enquiries, please contact: Ms Caroline Fong, Head of Investor Relations Direct: (65) 6801 1066 / Email: carol_fong@manulifeusreit.sg http://www.manulifeusreit.sg

  20. Slide 20: Portfolio Overview

    Portfolio Overview Figueroa Michelson Peachtree Plaza Exchange Penn Phipps Washington, Location Los Angeles Irvine Atlanta Secaucus Jersey City Atlanta D.C. Property Type Class A Trophy Class A Class A Class A Class A Trophy Completion Date 1991 2007 1991 1985 1988 1964 2010 Last Refurbishment 2015

  21. Slide 21: Adjusted 2Q 2018 DPU Increased 5.5%

    Adjusted 2Q 2018 DPU Increased 5.5% 2Q 2018 2Q 2017 Change 1H 2018 1H 2017 Change (US$’000) (US$’000) (%) (US$’000) (US$’000) (%) Gross Revenue 32,521 19,906 63.4 63,674 39,739 60.2 Net Property Income 20,377 12,789 59.3 40,027 25,552 56.6 Distributable Income 16,505 9,987 65.3 32,138 20,400 57.5 DP

  22. Slide 22: Tax Structure

    Tax Structure1 Sponsor Unitholders Manulife (9.8% limit) No 30%2 withholding tax on interest and principal on shareholder’s loan - US Portfolio Interest 0% Tax Exemption Rule Zero tax in Singapore - Foreign sourced income not subject to tax Distribution from US to Singapore through 100% 100% combina

  23. Slide 23: USD/SGD Exchange Rate since 1997

    USD/SGD Exchange Rate since 1997 2.0 1.8 1.6 Long-term Average: 1.506 1.4 1.364 1.2 1.0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: Bloomberg as at 21 Sep 2018 23

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