Manulife US REIT · SGX:BTOU
Manulife US REIT — SGX-NH S-REITs Corporate Day 2020
20 slides from Manulife US REIT's conference presentation, May 12, 2020
Slide 1: SGX-NH S-REITs Corporate Day
SGX-NH S-REITs Corporate Day 12 May 2020 1
Slide 2: Important Notice
Important Notice This presentation shall be read in conjunction with Manulife US REIT’s announcement dated 8 May 2020 published on SGXNet. 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 subsc
Slide 3: Contents
Contents 01 About MUST 02 1Q 2020 Key Highlights 03 Looking Ahead 3
Slide 4: About MUST
Capitol, Sacramento About MUST 01 4
Slide 5: Supported by Reputable Sponsor with Proven Track Record
Supported by Reputable Sponsor with Proven Track Record Vertically-Integrated Real Estate Platform: Global Real Estate AUM of US$18.8b Vancouver Calgary Kitchener/Waterloo Toronto Canada Edmonton Ottawa US$7.2 B Montreal AUM AUM US$832b Halifax 70% of Real Estate in Office U.S. Others Retail Asia 2%
Slide 6: Fortified Portfolio of Trophy/Class A Assets – Strength from Diversity
Fortified Portfolio of Trophy/Class A Assets – Strength from Diversity 9.6 16.1 5.9 10.5 AUM by Property (%)1 16.5 9.0 US$2.1 b 10.1 16.6 5.7 11.9 12.5 8.6 NPI by 14.9 2,3 10.4 Property (%) US$110.8 m 10.2 8.0 AUM: US$2.1 b Scan for videos NLA: 4.7 m sq ft 7.0 16.5 Figueroa Michelson Peachtree Plaza
Slide 7: Key Investment Criteria
Peachtree, Atlanta, Georgia Key Investment Criteria Trophy/Class A Assets Provide Strong Income in Upcycles and Remain Resilient during Market Turmoil as compared to Class B & Lower Class Business Park Assets 1 Key Locations and Strong Fundamentals 22 Trophy and Class A Assets Trophy Class A Class B
Slide 8: Growing Responsibly From Strength to Strength
Growing Responsibly From Strength to Strength AUM (US$ b) Occupancy Rate (%) WALE (Years) +20.5% YoY 5.7 5.8 5.9 2.1 95.9 96.7 95.8 1.7 1.3 FY 2017 FY 2018 FY 2019 FY 2017 FY 2018 FY 2019 FY 2017 FY 2018 FY 2019 NPI (US$ m) DPU (US Cents) ESG – GRESB (Score) +22.2% YoY +7.0% YoY 93 110.8 5.96 85 5.7
Slide 9: 1Q 2020 Key Highlights
Figueroa, Los Angeles 02 1Q 2020 Key Highlights 9
Slide 10: 1Q 2020 Financial Highlights
1Q 2020 Financial Highlights • Reverted to tax structure without Barbados entities1, similar to that adopted during IPO o Net savings of approximately 0.7% of FY 2019 distributable income in FY 2021 from Barbados tax savings, net of compliance costs • Received commitment to refinance Peachtree loan
Slide 11: Strong Balance Sheet and Proactive Capital Management
Strong Balance Sheet and Proactive Capital Management 95.1% Fixed-Rate Loans Gearing Ratio Received commitment to 37.7% refinance Peachtree loan due in Jul 2020 223.7 Weighted Average Interest Rate 7.5 186.2 143.0 1 3.37%1 105.0 71.5 80.0 Interest Coverage 2020 2021 2022 2023 2024 2025 Expiry 3.8 ti
Slide 12: 1Q 2020 Portfolio Highlights
1Q 2020 Portfolio Highlights • Increased occupancy to 96.5% from 95.8% QoQ; Long WALE of 5.7 years • Portfolio rental escalations of 2.0% p.a. • Executed ~147k sq ft of leases at +8.0% rental reversion with 7.8 years WALE • Minimal 4.0% of portfolio by NLA to expire in 2020 • Well-diversified strong
Slide 13: Long WALE of 5.7 Years by NLA
Long WALE of 5.7 Years by NLA Lease Expiry Profile as at 31 Mar 2020 (%) 54.5 54.5 New leases executed in 1Q 2020, to be reflected when current tenant vacates 17.1 17.5 7.9 7.9 8.7 8.8 6.4 6.1 1.0 1.2 4.4 4.0 2020 2021 2022 2023 2024 2025 and beyond Gross Rental Income Net Lettable Area 13
Slide 14: 6.7 Years WALE by Top Tenants; Majority Listed/HQ Location
6.7 Years WALE by Top 10 Tenants; Majority Listed/HQ Location Trade Sector by Gross Rental Income (GRI) Top 10 Tenants by Gross Rental Income (GRI) Legal 22.1% NLA Tenant Sector % of GRI Finance and Insurance 20.1% (sq ft) Retail Trade 13.5% The William Carter Co. Retail Trade 304,013 6.1 Informatio
Slide 15: Looking Ahead
Capitol, Sacramento Looking Ahead 03 15
Slide 16: COVID-19 Updates
COVID-19 Updates • U.S. lockdown set to ease; multiple states/counties/cities reopening o Georgia: Allowed to reopen fitness centres, salons, restaurants and selected entertainment venues • U.S. authorised ~US$3.5 trillion of new spending to mitigate impact of global pandemic • All nine MUST offices
Slide 17: Leading the Way in 2020 and Beyond
Leading the Way in 2020 and Beyond Resilient portfolio with ~60%1 of Rental deferment provided to Collected vast majority of tenants from finance, legal, tech, ~2%1 of tenants April’s rent government and healthcare Refinancing of Peachtree MAS lifted gearing limit to 50%, Strong commitment and track
Slide 18: Scan for MUST's website
Scan for MUST’s website Manulife US Real Estate Management Pte. Ltd. For enquiries, please contact: Ms Caroline Fong, Head of Investor Relations (Company registration no. 201503253R) Direct: (65) 6801 1066 Email: carol_fong@manulifeusreit.sg 8 Cross Street, #16-03 Manulife Tower, Singapore 048424 18
Slide 19: Appendix – Tax Advantaged Tax Structure
Appendix – Tax Advantaged Tax Structure MUST’s tax advantage For illustrative purposes only US REIT S-REIT1 Manulife US REIT • No U.S. corporate taxes (21%) DPU Yield 3.6%2 8.4% 8.4%3 U.S. Withholding Taxes (1.1%) - - • No U.S. withholding taxes (30%) Net Yield – 2.5% 8.4% 8.4% Singapore Retail Inve
Slide 20: Appendix – Tax Structure
Appendix – Tax Structure Tax Efficient Structure1 Sponsor i Parent U.S. REIT Structure Manulife Unitholders (9.8% limit)2 • Tax transparency – Dividends distributed are deductible 0% Tax • Income shielded by interest expense and depreciation ii U.S. Portfolio Interest Exemption Rule • No 30%1 withho